<HTML><HEAD>
<TITLE>S-1</TITLE>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:right;text-decoration:none;text-transform:none;">1933 Act File No. 333-</DIV>
<HR noshade="noshade" style="background-color:#000000;border-bottom:0pt;border-left:0pt;border-right:0pt;border-top:0.5pt solid #000000;height:0.5pt;width:100%;" align="Left">
<HR noshade="noshade" style="background-color:#000000;border-bottom:0pt;border-left:0pt;border-right:0pt;border-top:0.5pt solid #000000;height:0.5pt;width:100%;" align="Left">
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:15pt;text-align:center;text-decoration:none;text-transform:none;">United States Securities and Exchange Commission</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:11pt;font-style:Normal;font-weight:Normal;line-height:14pt;margin-top:1pt;text-align:center;text-decoration:none;text-transform:none;">Washington, D.C. 20549</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:8pt;text-align:center;text-decoration:none;text-transform:none;">Form S-1</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:8pt;text-align:center;text-decoration:none;text-transform:none;">Registration Statement</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:center;text-decoration:none;text-transform:none;">Under</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:8pt;text-align:center;text-decoration:none;text-transform:none;">The Securities Act of 1933</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:8pt;text-align:center;text-decoration:none;text-transform:none;">Nationwide Life Insurance Company</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;text-align:center;text-decoration:none;text-transform:none;">(Exact name of registrant as specified in its charter)</DIV>
<DIV style="text-align:center;">
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<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:3pt;padding-left:0pt;padding-right:7.5pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:34.13%;">OHIO
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:3pt;padding-left:7.5pt;padding-right:7.5pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.57%;">6311
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:3pt;padding-left:7.5pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:35.57%;">31-4156830
 </TD></TR>
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<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:7.5pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:34.13%;">(State
 or other jurisdiction of<BR> incorporation or organization) </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:7.5pt;padding-right:7.5pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:35.57%;">(Primary
 Standard Industrial<BR> Classification Code Number) </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:7.5pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:35.57%;">(I.R.S.
 Employer<BR> Identification Number) </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:center;text-decoration:none;text-transform:none;">One Nationwide Plaza, Columbus, Ohio 43215</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;text-align:center;text-decoration:none;text-transform:none;">(Address, including zip code, and telephone number, including area code,<BR>
of registrant's principal executive offices)</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:center;text-decoration:none;text-transform:none;">Robert W.
Horner, III</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;text-align:center;text-decoration:none;text-transform:none;">Vice President &#8211; Corporate Governance and
Secretary<BR> One Nationwide Plaza</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;text-align:center;text-decoration:none;text-transform:none;">Columbus, Ohio 43215</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;text-align:center;text-decoration:none;text-transform:none;">Telephone: (614) 249-7111</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;text-align:center;text-decoration:none;text-transform:none;">(Name, address, including zip code, and telephone number, including area
code, of agent for service)</DIV> <HR noshade="noshade" style="background-color:#000000;border-bottom:0pt;border-left:0pt;border-right:0pt;border-top:0.5pt solid #000000;height:0.5pt;width:45%;" align="Center">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Approximate date of commencement of proposed sale to the public:
<FONT style="font-weight:Normal;">As soon as practicable after the effective date of this registration statement.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If any of the securities being registered on this Form are to
be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:right;text-decoration:none;text-transform:none;">&#9745;</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If the registrant elects to deliver its latest annual report
to security holders, or a complete and legible facsimile thereof, pursuant to Item 11(a)(1) of this Form, check the following box.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:right;text-decoration:none;text-transform:none;">&#9633;</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:right;text-decoration:none;text-transform:none;">&#9633;</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:right;text-decoration:none;text-transform:none;">&#9633;</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:right;text-decoration:none;text-transform:none;">&#9633;</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:right;text-decoration:none;text-transform:none;">&#9633;</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:4pt;text-align:justify;text-decoration:none;text-transform:none; vertical-align:top;width:88.38%;">Large
accelerated filer </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;text-align:right;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:11.62%;">&#9633;
</TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="6" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:4pt;text-align:justify;text-decoration:none;text-transform:none; vertical-align:top;width:91.18%;">Accelerated
 filer </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;text-align:right;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:8.82%;">&#9633;
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:4pt;text-align:justify;text-decoration:none; text-transform:none;vertical-align:top;width:67.76%;">Non-accelerated
 filer (Do not check if a smaller reporting company) </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;text-align:right;text-decoration:none;text-transform:none; vertical-align:top;width:32.24%;">&#9745;
</TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:4pt;text-align:justify;text-decoration:none;text-transform:none; vertical-align:top;width:84.83%;">Smaller
reporting Company </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;text-align:right;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:15.17%;">&#9633;
</TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">CALCULATION OF REGISTRATION FEE</DIV>
<DIV style="text-align:left;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:6pt;padding-left:3pt; padding-right:6pt;padding-top:6pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.19%;">Title
 of Each Class of<BR> Securities to be Registered </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:6pt;padding-left:6pt; padding-right:6pt;padding-top:6pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:17.79%;">Amount
 to be<BR> Registered </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:6pt;padding-left:6pt; padding-right:6pt;padding-top:6pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:17.79%;">Proposed
<BR> Maximum Offering<BR> Price Per Unit </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:6pt;padding-left:6pt; padding-right:6pt;padding-top:6pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:17.79%;">Proposed
<BR> Maximum Aggregate<BR> Offering Price </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:6pt;padding-left:6pt;padding-right:3pt;padding-top:6pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:18.25%;">Amount
 of<BR> Registration Fee </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:6pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:28.19%;">Flexible
 Purchase Payment<BR> Modified Guaranteed Annuity Contracts </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:6pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:17.79%;">N/A
<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:6pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:17.79%;">N/A
<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:6pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:17.79%;">$5,000,000
 </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:18.25%;">$581
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">The amount to be registered
and the proposed maximum offering price per unit are not applicable in that these contracts are not issued in predetermined amounts or units. The proposed maximum aggregate offering price is estimated solely for the purpose of determining the
registration fee. The Registrant filed a registration statement on Form S-1 (333-155368) on November 14, 2008 ("Prior Registration Statement"). Pursuant to Rule 415(a)(6) under the Securities Act of 1933, the Prior Registration Statement will be
deemed terminated as of the date of effectiveness of this Registration Statement. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Registrant hereby amends this Registration Statement on such
date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.</DIV> </DIV> <DIV style="width:100%;"> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:center;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;text-align:center;text-decoration:none;text-transform:none;">Select Retirement</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:8pt;text-align:center;text-decoration:none;text-transform:none;">INDIVIDUAL SUPPLEMENTAL IMMEDIATE FIXED INCOME<BR> ANNUITY
CONTRACT</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:center;text-decoration:none;text-transform:none;">Issued by</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:8pt;text-align:center;text-decoration:none;text-transform:none;">NATIONWIDE LIFE INSURANCE COMPANY</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:center;text-decoration:none;text-transform:none;">The date of this prospectus is May 1,
2015.</DIV> <HR noshade="noshade" style="background-color:#000000;border-bottom:0pt;border-left:0pt;border-right:0pt;border-top:0.5pt solid #000000;height:0.5pt;width:45%;" align="Center">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">This prospectus describes Select Retirement, individual
supplemental immediate fixed income annuity contracts (referred to as "Contracts") issued by Nationwide Life Insurance Company ("Nationwide"), which are offered to investors with Morgan Stanley Smith Barney LLC, its affiliates, or any successors
(collectively, "MSSB"). The Contract provides for guaranteed income for the life of a designated person based on the Contract Owner's account at MSSB, provided all conditions specified in this prospectus are met, regardless of the actual performance
or value of the investments in Your Account.</DIV> <DIV style="text-align:left;">
<TABLE style="border-bottom:0.75pt solid #000000;border-collapse:collapse;border-left:0.75pt solid #000000;border-right:0.75pt solid #000000;border-top:0.75pt solid #000000;empty-cells:show;margin-top:6pt;width:99.86%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:3pt;padding-right:3pt;padding-top:6pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:center;width:99.31%;">The
 Contract has no cash surrender value and does not provide a death benefit. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Prospective purchasers may apply to purchase a Contract
through MSSB broker dealers who have entered into a selling agreement with Nationwide Investment Services Corporation ("NISC"), a subsidiary of Nationwide that acts as the general distributor of the Contracts sold through this prospectus.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">This prospectus provides important information that a
prospective purchaser of a Contract should know before investing. Please read this prospectus carefully and keep it for future reference.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contracts described in this prospectus may not be
available in all state jurisdictions and, accordingly, representations made in this prospectus do not constitute an offering in such jurisdictions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Is not a bank deposit
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Is not FDIC insured
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Is not insured or endorsed
by a bank or any government agency </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">Is not
available in every state </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">A purchase of
this Contract is subject to certain risks (see <FONT style="font-style:italic;">Risk Factors</FONT>)<FONT style="font-weight:Normal;">. The Contract is novel and innovative. To date, the tax consequences of the Contract have not been addressed in
binding published legal authorities; however, we understand that the Internal Revenue Service ("IRS") may be considering tax issues associated with products similar to the Contracts, and there is no certainty as to what the IRS will conclude is the
proper tax treatment for the Contracts. Consequently, you should consult a tax advisor before purchasing a Contract.</FONT></DIV> <DIV style="text-align:left;">
<TABLE style="border-bottom:0.75pt solid #000000;border-collapse:collapse;border-left:0.75pt solid #000000;border-right:0.75pt solid #000000;border-top:0.75pt solid #000000;empty-cells:show;margin-top:6pt;width:99.86%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:6pt;padding-left:3pt;padding-right:3pt;padding-top:6pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:center;width:99.31%;">For
 information on how to contact Nationwide, see <FONT style="font-style:italic;">Contacting the Service Center</FONT>. </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">i</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <DIV style="width:100%;"><A name="toc"></A> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;text-align:center;text-decoration:none;text-transform:none;">Table of Contents</DIV> </DIV> <DIV style="margin-top:5pt;width:100%;">
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:95.36%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">Page
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:2pt;padding-right:6pt;padding-top:2pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_1">Summary of the
Contracts</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2pt;padding-left:11.56pt;padding-top:2pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">1
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_1">Preliminary note regarding terms used in this
prospectus:</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:11.56pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">1
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_1">What is the
Contract?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:11.56pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">1
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_2">How does the Contract generally
work?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:11.56pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">2
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_3">How much will the Contract
cost?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:11.56pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">3
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_4">What are the requirements to purchase the
Contract?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:11.56pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">4
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_4">Is this Contract right for
you?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:11.56pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">4
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_5">Who is Morgan Stanley Smith Barney
LLC?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:11.56pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">5
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_5">What are the Eligible Portfolios and how are they
managed?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:11.56pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">5
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_14">Can a Contract be purchased by an Individual Retirement
Account?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">14
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_15">Can the Contract Owner cancel the
Contract?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">15
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_15">Does the Contract contain any type of spousal
benefit?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">15
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_15">Does the Contract contain any kind of Guaranteed Lifetime Withdrawal Base
increases?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">15
 </TD></TR>
<TR style="height:11.5pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_15">Risk
Factors</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">15
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.25pt;padding-left:10pt;padding-right:6pt;padding-top:2.25pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_15">Your Account may perform well enough that you may not receive any Guaranteed Lifetime Income Payments from Nationwide under the
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2.25pt;padding-left:6pt;padding-top:2.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">15
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_15">Your investment choices are limited by the
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">15
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_16">You must remain invested in Your Account at MSSB to maintain your
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">16
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<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_16">You may die before receiving payments from
us.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">16
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_16">Early Withdrawals or Excess Withdrawals will reduce or eliminate the Guarantee provided by your
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">16
 </TD></TR>
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<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_16">The Contract Fee will reduce the growth of Your
Account.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">16
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_16">Actions of your creditors may reduce or eliminate the Guarantee provided by your
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">16
 </TD></TR>
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<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_16">Your Guarantee may terminate if MSSB no longer manages the Eligible
Portfolios.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">16
 </TD></TR>
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<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_16">Nationwide determines that an Eligible Portfolio is no longer eligible as an investment option under the
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">16
 </TD></TR>
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<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_17">Additional deposits that exceed $2,000,000 in Total Gross Deposits could suspend or terminate your
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">17
 </TD></TR>
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<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_17">Nationwide's claims paying
ability.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">17
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_17">Tax
Consequences.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">17
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:0.5pt;padding-left:2pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_17">Your Relationship with MSSB and
Nationwide</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">17
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_17">The
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">17
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_18">Management of Your
Account.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">18
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_18">The Accumulation
Phase</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">18
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_18">What is the Guaranteed Lifetime Withdrawal Base and how is it
calculated?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">18
 </TD></TR>
<TR style="height:11.5pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_18">Can the Guaranteed Lifetime Withdrawal Base change during the Accumulation
Phase?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">18
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.25pt;padding-left:10pt;padding-right:6pt;padding-top:2.25pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_20">What if the Account Value falls to the Minimum Account Value before the Withdrawal Start Date but your Guaranteed Lifetime Withdrawal Base is above
zero?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2.25pt;padding-left:6pt;padding-top:2.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">20
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_20">The Withdrawal
Phase</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">20
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_20">What events trigger the Withdrawal
Phase?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">20
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_20">What is the Withdrawal Start Date and what does it
mean?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">20
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_21">What is the Guaranteed Lifetime Withdrawal Amount and how is it
calculated?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">21
 </TD></TR>
<TR style="height:11.5pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_21">Can the Guaranteed Lifetime Withdrawal Base change during the Withdrawal
Phase?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">21
 </TD></TR>
<TR style="height:22.5pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.25pt;padding-left:10pt;padding-right:6pt;padding-top:2.25pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_23">Do Early Withdrawals and Excess Withdrawals affect the Guaranteed Lifetime Withdrawal Amount and the Guaranteed Lifetime Withdrawal Base
differently?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2.25pt;padding-left:6pt;padding-top:2.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">23
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.25pt;padding-left:10pt;padding-right:6pt;padding-top:2.25pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_23">What if the Account Value and the Guaranteed Lifetime Withdrawal Base decline to zero due to Excess Withdrawals during the Withdrawal
Phase?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2.25pt;padding-left:6pt;padding-top:2.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">23
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:0.5pt;padding-left:2pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_23">Triggering the Income
Phase</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">23
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_23">What events will trigger the Income
Phase?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">23
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_24">How is the Contract transitioned into the Income
Phase?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">24
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_24">The Income
Phase</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">24
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_24">How much will each Guaranteed Lifetime Income Payment
be?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">24
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_24">Will the Guaranteed Lifetime Income Payment ever increase or
decrease?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">24
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_24">How often are the Guaranteed Lifetime Income Payments
paid?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">24
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_24">How long will the Guaranteed Lifetime Income Payments be
paid?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">24
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:0.5pt;padding-left:2pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_24">Terms and Conditions of the
Contract</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">24
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_24">What does it mean to have a change in "terms and conditions" of the
Contract?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">24
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_25">How will a change to the terms and conditions of the Contract affect an existing
Contract?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">25
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_25">Spousal Continuation
Option</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">25
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_25">What is the Spousal Continuation
Option?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:3pt;padding-left:6pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">25
 </TD></TR></TABLE> </DIV> </DIV> <DIV style="margin-top:11pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">ii</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="toc_2"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table of
Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-decoration:none;text-transform:none;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_25">
</A></FONT></DIV> <DIV style="text-align:center;"></DIV> </DIV> <DIV style="margin-top:12pt;width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_25">Table of Contents (continued)</A></FONT> </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">
<FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_25">Page</A></FONT> </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:10pt;padding-right:6pt;padding-top:2pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_25">Election of the Spousal Continuation
Option.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2pt;padding-left:10.44pt;padding-top:2pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">25
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_26">How much does the Spousal Continuation Option
cost?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">26
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_26">Is it possible to pay for the Spousal Continuation Option but not receive a benefit from
it?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">26
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_26">The Contract
Fee</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">26
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_26">How much is the Contract
Fee?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">26
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_27">When and how is the Contract Fee
assessed?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">27
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_27">Will the Contract Fee be the same amount from quarter to
quarter?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">27
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_27">Will advisory and other fees impact the Account Value and the Guarantee under the
Contract?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">27
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:0.5pt;padding-left:2pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_28">Managing Withdrawals from Your
Account</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">28
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_29">Death
Provisions</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">29
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:0.5pt;padding-left:2pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_30">Marriage Termination
Provisions</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">30
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_30">Marriage termination in the Accumulation or Withdrawal
Phases.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">30
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_31">Marriage termination in the Income
Phase.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">31
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_31">Suspension and Termination
Provisions</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">31
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_31">What does it mean to have a suspended
Contract?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">31
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_31">What will cause a Contract to be
suspended?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">31
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_31">What can be done to take the Contract out of
suspension?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">31
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_32">Specific suspension events and their
cures.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">32
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_34">What will cause a Contract to be
terminated?</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">34
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_34">Federal Income Tax
Considerations</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">34
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_35">Taxation of Distributions from the
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">35
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_36">Taxation of Eligible Portfolios or Former Eligible Portfolios that are not held by an Individual Retirement
Account.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">36
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_36">Additional Medicare
Tax.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">36
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_36">Same-Sex Marriages, Domestic Partnership and Other Similar
Relationships.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">36
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_37">Section 1035
Exchanges.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">37
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_37">Income Tax
Withholding.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">37
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0.5pt;padding-left:10pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_37">State and Local Tax
Considerations.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;"
noshade="noshade">
</TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">37
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_38">Payment of Advisory or Service
Fees.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
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<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">38
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<TR>
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_38">Seek Tax
Advice.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">38
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<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_38">Miscellaneous
Provisions</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
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<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">38
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_38">Ownership of the
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
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<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">38
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_38">Periodic communications to Contract
Owners.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_39">Amendments to the
Contract.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
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<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">39
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1pt;padding-left:10pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_39">Assignment.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;"
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_39">Misstatements.</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;"
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 </TD></TR>
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_39">Legal
Opinion</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
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<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">39
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_39">About
Nationwide</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">39
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_40">Contacting the Service
Center</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">40
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_40">Experts</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;"
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<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">40
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_40">Disclosure of Commission Position on
Indemnification</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;"
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<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">40
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<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:0.5pt;padding-left:2pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_40">Legal
Proceedings</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">40
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<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_40">Nationwide Life Insurance
Company</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:1pt;padding-left:10.44pt;padding-top:1pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">40
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:0.5pt;padding-left:2pt;padding-right:6pt;padding-top:0.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#db8a006d-ea56-409e-8ca0-ae5b2483df38_43">Definitions</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;"
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<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0.5pt;padding-left:10.44pt;padding-top:0.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">43
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:2pt;padding-right:6pt;padding-top:1pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:95.36%;">
<DIV style="float:left;"><FONT ><A href="#50179f4b-97cc-47b9-930c-435f8406354e_1">Appendix
A</A></FONT></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-5pt;margin-top:5pt;padding-top:3pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:3pt;padding-left:6pt;padding-top:1pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:5.75%;">A-1
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">&nbsp;&nbsp;&nbsp;&nbsp;</DIV>
<DIV style="border:0.5pt solid black;margin-top:7pt;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">Available Information</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:0.55%;text-align:left;text-decoration:none;text-transform:none;">Information about Nationwide and the
product may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C., or may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC at 100 F Street NE, Washington, D.C. 20549.
Additional information on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090. The SEC also maintains a website (www.sec.gov) that contains the prospectus and other information.</DIV> </DIV> </DIV>
<DIV style="margin-top:51pt;width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">iii</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_1"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Summary of the Contracts</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Preliminary note regarding terms used in this prospectus:</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Certain terms used in this prospectus have specific and
important meanings. Some are explained below. Others are explained as they appear in the prospectus. Additionally, in the back of this prospectus, there is a <FONT style="font-style:italic;">Definitions</FONT> provision containing definitions of all
of the terms used in the prospectus.</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">"We," "us," "our,"
"Nationwide" or the "Company" means Nationwide Life Insurance Company. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">"You" or
"yours," "Owner" or "Contract Owner" means the owner of the Contract. If more than one Owner is named, each Owner may also be referred to as a "joint owner." Joint owners are permitted only when they are spouses as recognized by applicable Federal
law. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:20pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">"Your Account" means the
unified managed account you own. As described further below, "Select UMA" is a unified managed account investment advisory program offered by MSSB. MSSB offers Your Account through registered representatives and investment advisor representatives
("Financial Advisors") of MSSB. You must purchase a Contract with the assistance of these Financial Advisors. Financial Advisors assist clients in analyzing whether the investment options are appropriate for the client. If your Financial Advisor
recommends a MSSB account to you, upon your request, MSSB will open Your Account. MSSB acts as introducing broker to Citigroup Global Markets Inc. ("CGMI"), an indirect wholly-owned subsidiary of Citigroup Inc., which acts as clearing broker for
Your Account. The assets in Your Account are custodied at CGMI. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following is a summary of the Contract. Unless otherwise
noted, this prospectus assumes that you are the sole Contract Owner. You should read the entire prospectus in addition to this summary.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What is the Contract?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract is an Individual Supplemental Immediate Fixed
Income Annuity Contract that is available for you to purchase if you open and own Your Account. If you own Your Account, then you and your Financial Advisor have determined that one or more MSSB investment options available in the Select UMA
investment advisory program is appropriate for you. The Contract is an optional feature available on Your Account for those investors who intend to use the assets in their account to provide income payments for retirement or other long-term
purposes.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Specifically, the Contract provides for
annuity payments ("Guaranteed Lifetime Income Payments") to be paid to you under circumstances outlined below as long as you meet the conditions of the Contract as described in this prospectus. If, or when, you are eligible and elect to take
withdrawals ("Guaranteed Lifetime Withdrawals") from Your Account, and if, or when, the value of the assets in Your Account ("Your Account Value") falls below a certain amount or you live to a certain age, you will receive Guaranteed Lifetime Income
Payments from us for the rest of your life (the "Guarantee"). The amount of your Guaranteed Lifetime Withdrawals will be based on a percentage of the value of Your Account when you first purchase the Contract (with adjustments for additions and
withdrawals, the "Guaranteed Lifetime Withdrawal Base") and will vary based on Your Account Value and other actions you take with regard to Your Account, as described in this prospectus.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract also offers a Spousal Continuation Option
available at the time of application and a potential 5% increase (the 5% roll-up) in the Guaranteed Lifetime Withdrawal Base during the Accumulation Phase:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">The Spousal Continuation
Option allows, upon your death, your surviving spouse to continue the Contract and receive all the rights and benefits associated with the Contract (see <FONT style="font-style:italic;">Spousal Continuation Option</FONT>). </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">The
Contract's potential 5% roll-up is calculated based on your original Guaranteed Lifetime Withdrawal Base and may increase the Guaranteed Lifetime Withdrawal Base. This feature is only available during the Accumulation Phase (see <FONT
 style="font-style:italic;">Can the Guaranteed Lifetime Withdrawal Base change during the Accumulation Phase?</FONT>). </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Guaranteed Lifetime Income Payments under your Contract are
triggered if the withdrawals (within the permitted limits of the Contract) and/or poor market performance reduce Your Account Value to $10,000 or less. <FONT style="font-weight:bold;">Note: If a triggering event does not occur, you will not receive
any payments under this Contract and your Guarantee will have no value.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract Guarantee is based on the age and life of the
Annuitant. For Non-Qualified Contracts, the Annuitant is you, the Contract Owner and the Owner of Your Account. If this Contract is issued to a trustee of a trust or a custodian of an Individual Retirement Account ("IRA"), you must be the Annuitant,
and if you elect the Spousal Continuation Option (discussed later in this prospectus), you and your spouse must be Co-Annuitants and your spouse must be listed as the beneficiary of Your Account.</DIV> </DIV> <DIV style="width:100%;"> </DIV>
<DIV style="margin-top:16pt;width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">1</DIV> </DIV>
<DIV style="width:100%;"> </DIV> <DIV style="width:100%;"> </DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_2"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">It is important to note that the Contract itself has no cash
surrender value because there are no assets attributable directly to it. All obligations under the Contract to make Guaranteed Lifetime Income Payments to you are tied to Your Account.<FONT style="font-weight:bold;"> If you surrender your interest
in or otherwise terminate Your Account, this Contract also terminates and you will not receive any Guaranteed Lifetime Income Payments under this Contract</FONT>.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract may terminate and you may not receive any
Guaranteed Lifetime Income Payments under this Contract if you terminate your Select UMA Account or if for any reason MSSB no longer manages any Eligible Portfolios or Former Eligible Portfolios (as defined below) in the Select UMA program.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Payments under the Contract are backed only by the claims
paying ability of Nationwide and are not guaranteed by MSSB or any of its affiliates.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">How does the Contract generally work?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The life of the Contract can generally be described as having
three phases: an "Accumulation Phase," a "Withdrawal Phase," and an "Income Phase." Your Contract will begin in the Accumulation Phase, and you must affirmatively elect to enter the Withdrawal Phase. After a triggering event (described below)
occurs, you can elect to enter the Income Phase.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Accumulation Phase</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">During the Accumulation Phase, Your Account is just like any
other advisory account at MSSB, except that Your Account must be 100% invested in an "Eligible Portfolio" or "Former Eligible Portfolio." Eligible Portfolios are those Select UMA program investment models that contain certain permissible investments
under the Contract. A Former Eligible Portfolio is a previously permissible investment model that is no longer available to new Contract Owners. Please see <FONT style="font-style:italic;">"What are the Eligible Portfolios and how are they
managed?</FONT>," later in this prospectus for more information on the Select UMA program and the Eligible Portfolios currently available for the Guarantee.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract provides an increase in your Guaranteed Lifetime
Withdrawal Base each Contract Anniversary (the anniversary of the date we issue your Contract) equal to the greatest of:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:9pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">(a)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">The current Guaranteed
Lifetime Withdrawal Base, adjusted for transactions in the previous Contract Year that affected the Guaranteed Lifetime Withdrawal Base; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">(b)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">Your Account Value as of
that Contract Anniversary; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.44%;">(c)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.56%;">The
original Guaranteed Lifetime Withdrawal Base with a 5% roll-up. This is equal to the original Guaranteed Lifetime Withdrawal Base plus 5% of the original Guaranteed Lifetime Withdrawal Base for each Contract Anniversary that has been reached. An
adjustment will be made to the calculations for transactions that increase or decrease the Guaranteed Lifetime Withdrawal Base. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The greatest of these three amounts will become your new
Guaranteed Lifetime Withdrawal Base at your next Contract Anniversary. The review of these three amounts is referred to as the "Annual Benefit Base Review" (see <FONT style="font-style:italic;">Can the Guaranteed Lifetime Withdrawal Base change
during the Accumulation Phase?</FONT>).</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">You may make
Additional Deposits (payments applied to Your Account after the Contract is issued), which will increase your Guaranteed Lifetime Withdrawal Base. Any withdrawals taken during the Accumulation Phase will reduce your Guaranteed Lifetime Withdrawal
Base.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Withdrawal Phase</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Anytime after you (and your spouse, if you elected the Spousal
Continuation Option), reach the age of 55, you may elect to begin the Withdrawal Phase. You must submit a Withdrawal Phase election form to us to enter the Withdrawal Phase. The day Nationwide receives your Withdrawal Phase election form indicating
that you are eligible and affirmatively elect to begin taking annual withdrawals of the Guaranteed Lifetime Withdrawal Amount is considered the "Withdrawal Start Date." Once the Contract is in the Withdrawal Phase, you can take annual withdrawals up
to a certain amount, the "Guaranteed Lifetime Withdrawal Amount," from Your Account without reducing your Guaranteed Lifetime Withdrawal Base and any potential Guaranteed Lifetime Income Payments.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Once you elect to begin taking Guaranteed Lifetime
Withdrawals, you may withdraw up to 4%, the "Guaranteed Lifetime Withdrawal Percentage," of your Guaranteed Lifetime Withdrawal Base from Your Account without reducing your Guaranteed Lifetime Withdrawal Base and any potential Guaranteed Lifetime
Income Payments. When you (and your</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:30pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">2</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_3"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">spouse, if you elected the Spousal Continuation Option) reach age 65, your
Guaranteed Lifetime Withdrawal Percentage increases to 5%. At that time, you may withdraw up to 5% of your Guaranteed Lifetime Withdrawal Base from Your Account without reducing your Guaranteed Lifetime Withdrawal Base and any potential Guaranteed
Lifetime Income Payments.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Income Phase</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If and when any of the following triggering events occur, the
Contract will be eligible to begin the Income Phase:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Your Account Value, after
the Withdrawal Start Date, falls below the greater of $10,000 or the Guaranteed Lifetime Withdrawal Amount (the "Minimum Account Value"); or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Your Account Value is
invested in the Minimum Account Value Eligible Portfolio, as discussed in the "Suspension and Termination Provisions" section later in this prospectus, and you reach the age of 55; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">You,
after the Withdrawal Start Date, affirmatively elect to begin the Income Phase by submitting the appropriate administrative forms. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">At that time, you will instruct MSSB to transfer the remaining
value in Your Account to us, and we will begin making annual guaranteed fixed annuity payments to you for as long as you (or your spouse, if the Spousal Continuation Option, described herein, is elected) live. After this transition into the Income
Phase, Your Account is closed and you no longer own interests in the Eligible Portfolio or Former Eligible Portfolio. Rather, your ownership interest lies in the guaranteed stream of annuity payments - the Guaranteed Lifetime Income Payments - which
Nationwide is obligated to provide. Note: It is possible that you may never receive Guaranteed Lifetime Income Payments if none of the triggering events occur. If you (and your spouse, if the Spousal Continuation Option is elected) die before any of
the triggering events occur, no benefit is payable under this Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">How much will the Contract cost?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Accumulation Phase and Withdrawal Phase</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">During both the Accumulation Phase and Withdrawal Phase, you
will pay a fee for the Contract (the "Contract Fee" or "Fee"), which will be deducted from Your Account Value on a quarterly basis. The Fee is calculated as a percentage (the "Contract Fee Percentage") of your Guaranteed Lifetime Withdrawal Base
(not Your Account Value) as of the end of the calendar quarter (see <FONT style="font-style:italic;">The Contract Fee</FONT>).</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Fee compensates us for the risk we assume in providing you
Guaranteed Lifetime Income Payments. We intend to invest the fees as we invest our General Account assets. We take into account the amount of Guaranteed Lifetime Income Payments and anticipated cash-flow requirements when making investments.
Nationwide is not obligated to invest in accordance with any particular investment objective, but will generally adhere to our overall investing philosophy.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Fee is calculated as follows:</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Contract Fee Percentage x (# of days in the quarter/365) x
Guaranteed Lifetime Withdrawal Base as of quarter end</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We
reserve the right to increase the Contract Fee Percentage (up to a maximum of 1.45% of your Guaranteed Lifetime Withdrawal Base or 1.75% of your Guaranteed Lifetime Withdrawal Base with the Spousal Continuation Option elected) and will provide
written notice to you. We provide a two-year Contract Fee Percentage guarantee, during which time we will not increase the Contract Fee Percentage (if at all) before your second Contract Anniversary (see <FONT style="font-style:italic;">Terms and
Conditions of the Contract</FONT>).</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT
 style="font-weight:Normal;"> The Contract Fee is in addition to any charges that are imposed in connection with Your Account including advisory and other charges imposed by your Financial Advisor, MSSB, or any of the investments that comprise Your
Account. Any fees you pay that are deducted from Your Account Value, including the Contract Fee, will negatively affect the growth of Your Account Value.</FONT></DIV> <DIV style="text-align:left;">
<TABLE style="border-bottom:2pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:2pt solid #000000;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:2pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:3pt;padding-right:3pt;padding-top:6pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:99.82%;" bgcolor="#CCCCCC" colspan="2">Maximum
 Recurring Contract Fees </TD></TR>
<TR>
<TD style="border-bottom:2pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:4pt;padding-left:3pt;padding-right:3pt;padding-top:5.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:99.82%;" colspan="2">(assessed
 on the first day of each calendar quarter against the Guaranteed Lifetime Withdrawal Base<BR> as of the last day of the previous calendar quarter) </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:center;width:77.17%;">
<DIV style="float:left;">Contract
Fee</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:3pt;padding-top:4pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:center;white-space:nowrap;width:22.64%;">1.45%
<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:center;width:77.17%;">
<DIV style="float:left;">Spousal Continuation Option
Fee</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:3pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:center;white-space:nowrap;width:22.64%;">0.30%
<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:4pt;padding-left:3pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:center;width:77.17%;">
<DIV style="float:left;">Total Contract Fee (including the Spousal Continuation
Option)</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:center;white-space:nowrap;width:22.64%;">1.75%
<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:8pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">The current Contract Fee is
1.00%. </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:17pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">3</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_4"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">The current Spousal
Continuation Option Fee is 0.20%. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">The
current Total Contract Fee is 1.20%. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Income Phase</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">During the Income Phase, no Contract Fee is assessed.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Neither MSSB nor your Financial Advisor receives any
compensation from Nationwide directly associated with the sale of the Contracts or for administrative services associated with the Contract. In order to maintain your Contract, you must keep Your Account invested in an Eligible Portfolio or Former
Eligible Portfolio. MSSB and their Financial Advisors will receive annual advisory fees and other compensation relevant to services provided in connection with the Select UMA program as outlined in your client agreement (the "Client Agreement") and
as disclosed in the MSSB ADV (as defined below) during the Accumulation and Withdrawal Phases of the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What are the requirements to purchase the Contract?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract is only available for purchase by investors who
elect and continue to invest, with the help of their Financial Advisor, in the Eligible Portfolios approved by Nationwide and offered by MSSB in the Select UMA program. Upon such election, MSSB will open Your Account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">You, as the Owner of Your Account at MSSB, may purchase a
Contract from MSSB, which is also a broker-dealer, when you open Your Account. To purchase the Contract without the Spousal Continuation Option, the Annuitant must be between 45 and 75 at the time of application. To purchase the Contract with the
Spousal Continuation Option, the younger Annuitant must be between 45 and 80 and the older Annuitant must be 84 or younger at the time of application.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">To purchase a Contract, the value of Your Account on the date
of application must equal $50,000 or more. We reserve the right to refuse to accept Additional Deposits made into Your Account for your Guaranteed Lifetime Withdrawal Base, including your initial deposit ("Total Gross Deposits") that exceed
$2,000,000. Withdrawals do not impact the limit of $2,000,000 in Total Gross Deposits.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See <FONT style="font-style:italic;">Risk Factors</FONT> and <FONT
 style="font-style:italic;">Suspension and Termination Provisions</FONT> later in this prospectus.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Additionally, on the date of application (and continuously
thereafter), Your Account must be allocated to one of the Eligible Portfolios as discussed herein. Once you select an Eligible Portfolio, you may switch to another Eligible Portfolio, but Your Account Value must always remain invested in an Eligible
Portfolio in order to maintain the benefits and the Guarantee associated with the Contract. If Nationwide determines that an Eligible Portfolio is no longer eligible as an investment option, you may remain in the Former Eligible Portfolio as
indicated in the <FONT style="font-style:italic;">Terms and Conditions of the Contract</FONT> section.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> IF AT ANY TIME 100% OF
YOUR ACCOUNT IS NOT INVESTED IN AN ELIGIBLE PORTFOLIO OR FORMER ELIGIBLE PORTFOLIO, YOUR CONTRACT WILL BE SUSPENDED AND MAY TERMINATE (see </FONT><FONT style="font-style:italic;font-weight:Normal;">Suspension and Termination Provisions</FONT><FONT
 style="font-weight:Normal;">). Ensuring that you continue to maintain Your Account and that it remains invested according to the terms of the Contract is your responsibility.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Is this Contract right for you?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">This Contract is meant to protect your assets in the event
market fluctuations bring Your Account Value below the Minimum Account Value or in the event you outlive your assets. This Contract does not protect the actual investments in Your Account. For example, if you initially invest $600,000 in Your
Account and the value of Your Account within that year falls to $400,000, we are not required to add $200,000 to Your Account. Instead, we guarantee that you will be able to withdraw, after reaching the age of 55, Guaranteed Lifetime Withdrawal
Amounts equal to 4% of $600,000 (instead of 4% of $400,000). We guarantee this even if such withdrawals bring Your Account Value to $0.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">It is also important to understand, that even after you have
reached age 55 and start taking Guaranteed Lifetime Withdrawals from Your Account, those withdrawals are made from Your Account. We are required to start using our own money to make Guaranteed Lifetime Income Payments only when, and if, Your Account
Value reaches the Minimum Account Value because of withdrawals within the limits of this Contract and/or poor investment performance. We limit our risk of having to make Guaranteed Lifetime Income Payments by limiting the amount you may withdraw
each year from Your Account without reducing your Guaranteed Lifetime Withdrawal Base. If the investment return on Your Account over time is sufficient to generate gains that can sustain systematic or periodic withdrawals equal to the Guaranteed
Lifetime Withdrawal Amount, then Your Account Value will never be reduced to the Minimum Account Value and we will never have to make Guaranteed Lifetime Income Payments to you.</DIV> </DIV> <DIV style="width:100%;"> </DIV>
<DIV style="margin-top:16pt;width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">4</DIV> </DIV>
<DIV style="width:100%;"> </DIV> <DIV style="width:100%;"> </DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_5"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">There are many variables, however, other than average annual
return on Your Account, that will determine whether the investments in Your Account, without the Contract, would have generated enough gain over time to sustain systematic or periodic withdrawals equal to the Guaranteed Lifetime Withdrawals you
would have received if you had purchased the Contract. Your Account Value may have declined over time before beginning the Income Phase, which means that your investments would have to produce an even greater return after the Income Phase to make up
for the investment losses before that date. Moreover, studies have shown that individual years of negative annual average investment returns can have a disproportionate impact on the ability of your retirement investments to sustain systematic
withdrawals over an extended period, depending on the timing of the poor investment returns.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Who is Morgan Stanley Smith Barney LLC?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Morgan Stanley Smith Barney LLC ("MSSB LLC") is a financial
services firm. MSSB LLC's principal activities include retail and institutional private client services, including but not limited to providing advice with respect to financial markets, securities and commodities, and executing securities and
commodities transactions as broker or dealer; securities underwriting and investment banking; investment management (including fiduciary and administrative services); and trading and holding securities and commodities for its own account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">MSSB LLC is registered as a securities broker-dealer,
investment advisor, and futures commission merchant. Affiliates of MSSB LLC are registered as commodity pool operators and/or commodity trading advisors.</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">For purposes of this prospectus, "MSSB" refers to MSSB LLC and its
affiliates, or any successors. Nationwide is not affiliated with MSSB and does not manage Your Account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What are the Eligible Portfolios and how are they
managed?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Eligible Portfolios are those Select UMA asset
allocation investment models ("Models") established by MSSB and approved by Nationwide, which contain certain permissible investments under the Contract. Each of the Models available as an Eligible Portfolio corresponds to a specific investment risk
profile. The Models are comprised of asset classes and asset class percentages established by MSSB. You and your Financial Advisor select the actual investments within each asset class from a list of investment products ("Investment Products")
created by MSSB and approved by Nationwide. These Investment Products can take the form of Mutual Funds, Exchange Traded Funds and/or Separately Managed Accounts. You and your Financial Advisor may elect any combination of the permitted Investment
Products to fulfill each asset class percentage:</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">Mutual Funds - A mutual fund is a
professionally managed type of collective investment that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled
money on a regular basis, and is an open end investment company registered under the Investment Company Act of 1940.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">Exchange Traded Funds or ETFs - An ETF is
an investment vehicle traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day. Many ETFs
track an index, such as the Dow Jones Industrial Average or the S&amp;P 500.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">Separately Managed Accounts or SMAs - A SMA
is comprised of individual securities which an Overlay Manager will invest in for the client, based on an investment model provided by one or more separately registered investment managers ("sub-managers"), which invests for the client based on
their own investment decision. This differs from a mutual fund because the investor directly owns the securities instead of owning a share in a pool of securities. Please see <FONT style="font-style:italic;">Your Relationship with MSSB and
Nationwide,</FONT> for more information about the Overlay Manager.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">MSSB selects the list of Investment Products available to you
and your Financial Advisor from among those that MSSB can recommend based on MSSB's due diligence research. MSSB bases its research on factors such as consistency with investment strategy and historical performance. The list of Investment Products
that MSSB recommends will change when MSSB identifies additional Investment Products that satisfy MSSB's research, or when MSSB determines that existing Investment Products no longer satisfy MSSB's research. Nationwide also reviews the list of
available Investment Products to ensure that it is comfortable with the risk that each Investment Product could generate. MSSB provides the list of available Investment Products to your Financial Advisor.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As the provider of the Guarantee under the Contracts, we
maintain sole discretion as to which investment options will be permitted under the Contracts as Eligible Portfolios. We only make available those Eligible Portfolios that we determine carry an acceptable amount of risk for Nationwide to manage the
Guarantee. We monitor the risk that investments in Your</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">5</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_6"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">Account will not generate sufficient income for you to sustain your
Guaranteed Lifetime Withdrawals during your lifetime. If, after making an Eligible Portfolio available, we subsequently determine that such Eligible Portfolio carries too much risk (the risk that we will have to make Guaranteed Lifetime Income
Payments), we will adjust the list of Eligible Portfolios, re-characterizing those portfolios that we determine to be too risky to continue offering as "Former Eligible Portfolios." We will notify Contract Owners that originally selected a now
Former Eligible Portfolio of their contractual options, which are described in the <FONT style="font-style:italic;">Terms and Conditions of the Contract</FONT> section later in this prospectus.</DIV>
<DIV style="border:0.5pt solid black;margin-top:7pt;"> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">Four
Step Investment Process</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:0.55%;text-align:left;text-decoration:none;text-transform:none;">At or before
the time of this Contract application, you and your Financial Advisor will follow the process below to select your Eligible Portfolio:</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:0.55%;text-align:left;text-decoration:none;text-transform:none;">Step 1: Set Investment Objectives</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:2.40%;text-align:left;text-decoration:none;text-transform:none;">Your Financial Advisor helps you establish
your investment objectives for Your Account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:0.55%;text-align:left;text-decoration:none;text-transform:none;">Step 2: Select Investment Model/Eligible
Portfolio</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:2.40%;text-align:left;text-decoration:none;text-transform:none;">Based on your investment
objectives, your Financial Advisor recommends one Model for Your Account from the Models permitted as Eligible Portfolios. The Select UMA program offers Models that are Eligible Portfolios and those that are not Eligible Portfolios. If you wish to
receive the benefit of this Contract, you must select an Eligible Portfolio.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:0.55%;text-align:left;text-decoration:none;text-transform:none;">Step 3: Select Investment Products</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:2.40%;text-align:left;text-decoration:none;text-transform:none;">Your Financial Advisor then works with you
to select the specific Investment Products that will meet the requirement for each asset class and asset class percentage within the Eligible Portfolio you selected.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:2.40%;text-align:left;text-decoration:none;text-transform:none;">Once you have (with the assistance of your
Financial Advisor) selected the Investment Products for each asset class in the Model you have chosen, the Overlay Manager will purchase the investments in a manner consistent with the Model and the Investment Products selected.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:0.55%;text-align:left;text-decoration:none;text-transform:none;">Step 4: Ongoing Review Process</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:2.40%;text-align:left;text-decoration:none;text-transform:none;">Your Financial Advisor will contact you to
determine whether short-term or long-term changes are needed in the Eligible Portfolio you selected. You may change to a different Model from among the Models permitted as Eligible Portfolios, and you and your Financial Advisor may also change to
other Investment Products from the Investment Products that are permitted for Eligible Portfolios.</DIV> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Additionally, you may remain in a Former Eligible Portfolio as
indicated in the <FONT style="font-style:italic;">Terms and Conditions of the Contract</FONT> section. If you move Your Account assets to a non-Eligible Portfolio (any Select UMA Model that is not an Eligible Portfolio) at any time, your Contract
will be suspended (see <FONT style="font-style:italic;">Suspension and Termination Provisions</FONT>). <FONT style="font-weight:bold;">Note:</FONT> Reallocating Your Account out of the Eligible Portfolio elected at the time of application may have
negative tax consequences. Please consult a qualified tax advisor for more information.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:10pt;text-align:left;text-decoration:none;text-transform:none;">Eligible Portfolios Summary</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following tables reflect a summary of each Eligible
Portfolio that is currently available for election under the Contract. The Eligible Portfolios are listed from most conservative to least conservative. The target allocations may be changed by MSSB from time to time as provided in the Client
Agreement and the MSSB ADV. MSSB monitors each Eligible Portfolio's holdings and will periodically rebalance Your Account as provided in the Client Agreement to realign it with the current asset allocations for your Eligible Portfolio.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The value of your Eligible Portfolio will fluctuate over time.
This means it will rise and fall in response to market events. Although past performance is not a guarantee of future results, historically, investments that have had higher fluctuations have provided higher long term returns, along with higher
risks of loss. The Return chart below shows that as you move up the risk ladder from conservative investments to aggressive investments, you have the potential to receive higher long term returns but may also experience higher fluctuations in
value.</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:71pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">6</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_7"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:Center;width:100%;">
<IMG src="g896218img29cb88461.jpg"> </DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:32.96%;">Capital
 Preservation oriented. Total return oriented, but may have higher current income. Suitable for short time horizon (3 to 5 years).<BR> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:34.07%;">Capital
 appreciation oriented. Minimal income needs. Increasing equity exposure. Longer time horizon &#8211; at least a market cycle (5 years or more).<BR> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:34.07%;">Aggressive
 growth oriented. No current income consideration. Greater volatility than broad stock market. Longest time horizon (10+ years).<BR> </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The target allocation categories listed below reflect
investment asset categories only, and not specific Investment Products. You and your Financial Advisor select the Investment Products to satisfy each Target Allocation. More explanation of each category follows the tables. The percentage ranges
shown are target ranges only, and may change if deemed appropriate by MSSB. Additionally, the index percentages used to establish the benchmark as determined by MSSB are provided for each Eligible Portfolio. The indices and percentages provided by
MSSB are established by MSSB based on the asset allocation of the selected Model. MSSB has determined that the benchmarks are appropriate for use as a gauge of performance of the associated Eligible Portfolios. The indices work together to provide a
blended performance percentage of how your Eligible Portfolio should perform. Your Financial Advisor will discuss how your Eligible Portfolio performed as compared to the benchmark. Not every asset class is represented by a corresponding index. A
summary of the referenced asset classes and indices follows the Eligible Portfolio tables.</DIV> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:99.45%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Eligible
<BR> Portfolio </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">Target
 Allocations </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">U.S.
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Select
 UMA<BR> Model 1 w/o<BR> Municipal Bonds </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">U.S.
 Small Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Small Cap<BR> Growth Equity </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:12.41%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.30%;" rowspan="2">Composition
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">International
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">U.S.
 Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">Cash
 </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Developed
<BR> International<BR> Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Emerging
<BR> Markets Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Core<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 High Yield<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Cash/U.S.
<BR> Short Duration<BR> Bond </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;">100%
 Fixed </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">40
 - 60% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">5
 - 25% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">20
 - 40% </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Strategy:<FONT style="font-style:Normal;"> Fixed Income- An all fixed income model for a most conservative investor that seeks conservative risk investments with minimal market volatility. This investment strategy is most appropriate for investors
with an investment time horizon of 1 to 3 years.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Objective:<FONT style="font-style:Normal;"> The investment objective for this Model has a primary emphasis on capital preservation. This Model is classified to have low volatility. It is most suitable for an investor that is comfortable with
minimal fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Risk<FONT style="font-style:Normal;">: Fixed income is historically considered less risky than equities. Model 1 has 100% of the assets in fixed income or cash. Therefore, of all of the Eligible Portfolios, this portfolio provides the most
conservative investment risk.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Benchmark:
<FONT style="font-style:Normal;"> 70% BC Aggregate Bond (Fixed Income)/30% 90-Day T-Bills (Cash)</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:61pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">7</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_8"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:12pt;width:99.45%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Eligible
<BR> Portfolio </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">Target
 Allocations </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">U.S.
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Select
 UMA<BR> Model 2 w/o<BR> Municipal Bonds </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">U.S.
 Small Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Small Cap<BR> Growth Equity </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.30%;" rowspan="2">Composition
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">International
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">U.S.
 Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">Cash
 </TD></TR>
<TR style="height:34pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Developed
<BR> International<BR> Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Emerging
<BR> Markets Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Core<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 High Yield<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Cash/U.S.
<BR> Short Duration<BR> Bond </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;">25%
 Equity<BR> 75% Fixed </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">30
 - 50% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">5
 - 25% </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Strategy:<FONT style="font-style:Normal;"> Global Balanced- A global balanced model with a higher emphasis on income for a conservative investor that seeks long term growth through achieving a balance between income and capital growth globally.
This investment strategy is most appropriate for investors with an investment time horizon of 3 to 5 years.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Objective:<FONT style="font-style:Normal;"> The investment objective for this Model has a primary emphasis on income with some capital growth. This Model is classified to have low volatility. It is most suitable for an investor that is comfortable
with minimal fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Risk:<FONT style="font-style:Normal;"> Fixed income is historically considered less risky than equities. Model 2 has 75% of the assets in fixed income or cash and 25% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides a more aggressive investment risk than Model 1 and less aggressive than Models 3 and 4.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Benchmark:
<FONT style="font-style:Normal;"> 18% Russell 1000 (U.S Equity)/7% MSCI EAFE (International Equity)/60% BC Aggregate Bond (U.S. Fixed Income)/15% 90-Day T-Bills (Cash)</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:390pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">8</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_9"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:12pt;width:99.45%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Eligible
<BR> Portfolio </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">Target
 Allocations </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">U.S.
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Select
 UMA<BR> Model 3 w/o<BR> Municipal Bonds </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">U.S.
 Small Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Small Cap<BR> Growth Equity </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.30%;" rowspan="2">Composition
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">International
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">U.S.
 Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">Cash
 </TD></TR>
<TR style="height:34pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Developed
<BR> International<BR> Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Emerging
<BR> Markets Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Core<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 High Yield<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Cash/U.S.
<BR> Short Duration Bond </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;">40%
 Equity<BR> 60% Fixed </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">25
 - 45% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Strategy<FONT style="font-style:Normal;">: Global Balanced- A global balanced model utilizing equities, fixed income, and cash seeking some growth and moderate level of income for a moderate investor that seeks long term growth through achieving a
balance between income and capital growth globally. This investment strategy is most appropriate for investors with an investment time horizon of 3 to 5 years.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Objective:<FONT style="font-style:Normal;"> The investment objective for this Model has a primary emphasis on capital growth and income. This Model is classified to have medium volatility. It is most suitable for an investor that is comfortable
with fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Risk:<FONT style="font-style:Normal;"> Fixed income is historically considered less risky than equities. Model 3 has 60% of the assets in fixed income or cash and 40% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides a more aggressive investment risk than Models 1 and 2 and less aggressive than Model 4.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Benchmark:
<FONT style="font-style:Normal;"> 28% Russell 3000 (U.S Equity)/12% MSCI EAFE (International Equity)/50% BC Aggregate Bond (Fixed Income)/10% 90-Day T-Bills (Cash)</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:390pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">9</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_10"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:12pt;width:99.45%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Eligible
<BR> Portfolio </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">Target
 Allocations </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">U.S.
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Select
 UMA<BR> Model 4 w/o<BR> Municipal Bonds </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">U.S.
 Small Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Small Cap<BR> Growth Equity </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.30%;" rowspan="2">Composition
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">International
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">U.S.
 Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">Cash
 </TD></TR>
<TR style="height:34pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Developed
<BR> International<BR> Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Emerging
<BR> Markets Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Core<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 High Yield<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Cash/U.S.
<BR> Short Duration<BR> Bond </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;">50%
 Equity<BR> 50% Fixed </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">25
 - 45% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Strategy:<FONT style="font-style:Normal;"> Global Balanced- A global balanced model utilizing equities, fixed income, and cash seeking a moderate level of growth and income for a moderate investor that seeks long term growth through achieving a
balance between income and capital growth globally. This investment strategy is most appropriate for investors with an investment time horizon of 5 to 7 years.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Objective:<FONT style="font-style:Normal;"> The investment objective for this Model has a primary emphasis on capital growth with some focus on income. This Model is classified to have medium volatility. It is most suitable for an investor that is
comfortable with fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Risk:<FONT style="font-style:Normal;"> Fixed income is historically considered less risky than equities. Model 4 has 50% of the assets in fixed income or cash and 50% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides the most aggressive investment risk.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Benchmark:
<FONT style="font-style:Normal;"> 35% Russell 3000 (U.S. Equity)/15% MSCI AC World x U.S. (International Equity)/50% BC Aggregate Bond (U.S. Fixed Income)</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:left;text-decoration:none;text-transform:none;">&nbsp;&nbsp;&nbsp;&nbsp;</DIV> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:12pt;width:99.45%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Eligible
<BR> Portfolio </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">Target
 Allocations </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">U.S.
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Select
 UMA<BR> Model 1 w/<BR> Municipal Bonds </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">U.S.
 Small Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Small Cap<BR> Growth Equity </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:12.41%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.30%;" rowspan="2">Composition
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">International
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">U.S.
 Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">Cash
 </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Developed
<BR> International<BR> Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Emerging
<BR> Markets Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Municipal<BR> Bond Fixed<BR> Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 High Yield<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Cash/U.S.
<BR> Short Duration<BR> Bond </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;">100%
 Fixed </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">40
 - 60% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">5
 - 25% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">20
 - 40% </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Strategy:<FONT style="font-style:Normal;"> Fixed Income- An all fixed income model for a most conservative investor that seeks conservative risk investments, with minimal market volatility. This investment strategy is most appropriate for investors
with an investment time horizon of 1 to 3 years.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Objective:<FONT style="font-style:Normal;"> The investment objective for this Model has a primary emphasis on capital preservation. This Model is classified to have low volatility. It is most suitable for an investor that is comfortable with
minimal fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time. One of the primary reasons municipal bonds are considered separately from other types of bonds is their special
ability to provide tax-exempt income. Interest paid by the issuer (i.e., the municipality, state or local government) to bond holders is often exempt from all federal taxes, as well as state or local taxes depending on the state in which the issuer
is located, subject to certain restrictions. Therefore, for taxable accounts, it can be a tax advantage to invest in municipal bonds in lieu of core fixed income investments.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Risk:<FONT style="font-style:Normal;"> Fixed income is historically considered less risky than equities. Model 1 has 100% of the assets in fixed income or cash. Therefore, of all of the Eligible Portfolios, this portfolio provides the most
conservative investment risk.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Benchmark:
<FONT style="font-style:Normal;"> 70% BC Municipal Bond (U.S. Fixed Income)/30% 90-Day T-Bills (Cash)</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:86pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">10</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_11"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:12pt;width:99.45%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Eligible
<BR> Portfolio </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">Target
 Allocations </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">U.S.
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Select
 UMA<BR> Model 2 w/<BR> MunicipalBonds </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">U.S.
 Small Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Small Cap<BR> Growth Equity </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.30%;" rowspan="2">Composition
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">International
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">U.S.
 Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">Cash
 </TD></TR>
<TR style="height:34pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Developed
<BR> International<BR> Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Emerging
<BR> Markets Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Municipal<BR> Bond Fixed<BR> Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 High<BR> Yield Fixed<BR> Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Cash/U.S.
<BR> Short Duration<BR> Bond </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;">25%
 Equity<BR> 75% Fixed </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">30
 - 50% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">5
 - 25% </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Strategy<FONT style="font-style:Normal;">: Global Balanced- A global balanced model with a higher emphasis on income for a conservative investor that seeks long term growth through achieving a balance between income and capital growth globally.
This investment strategy is most appropriate for investors with an investment time horizon of 3 to 5 years.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Objective:<FONT style="font-style:Normal;"> The investment objective for this Model has a primary emphasis on income with some capital growth. This Model is classified to have low volatility. It is most suitable for an investor that is comfortable
with minimal fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time. One of the primary reasons municipal bonds are considered separately from other types of bonds is their
special ability to provide tax-exempt income. Interest paid by the issuer (i.e., the municipality, state or local government) to bond holders is often exempt from all federal taxes, as well as state or local taxes depending on the state in which the
issuer is located, subject to certain restrictions. Therefore, for taxable accounts, it can be a tax advantage to invest in municipal bonds in lieu of core fixed income investments.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Risk:<FONT style="font-style:Normal;"> Fixed income is historically considered less risky than equities. Model 2 has 75% of the assets in fixed income or cash and 25% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides a slightly more aggressive investment risk than Model 1.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Benchmark:
<FONT style="font-style:Normal;"> 18% Russell 1000 (U.S. Equity)/7% MSCI EAFE (International Equity)/ 60% BC Municipal Bond (U.S. Fixed Income)/15% 90-Day T-Bills (Cash)</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:left;text-decoration:none;text-transform:none;">&nbsp;&nbsp;&nbsp;&nbsp;</DIV> </DIV> <DIV style="width:100%;"> </DIV>
<DIV style="margin-top:369pt;width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">11</DIV> </DIV>
<DIV style="width:100%;"> </DIV> <DIV style="width:100%;"> </DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_12"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:12pt;width:99.45%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Eligible
<BR> Portfolio </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">Target
 Allocations </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">U.S.
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Select
 UMA<BR> Model 3 w/<BR> Municipal Bonds </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">U.S.
 Small Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Small Cap<BR> Growth Equity </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.30%;" rowspan="2">Composition
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">International
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">U.S.
 Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">Cash
 </TD></TR>
<TR style="height:34pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Developed
<BR> International<BR> Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Emerging
<BR> Markets Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Municipal<BR> Bond Fixed<BR> Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 High Yield<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Cash/U.S.
 Short<BR> Term Bond </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;">40%
 Equity<BR> 60% Fixed </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 10% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">25
 - 45% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Strategy:<FONT style="font-style:Normal;"> Global Balanced- A global balanced model utilizing equities, fixed income, and cash seeking some growth and moderate level of income for a moderate investor that seeks long term growth through achieving a
balance between income and capital growth globally. This investment strategy is most appropriate for investors with an investment time horizon of 3 to 5 years.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Objective:<FONT style="font-style:Normal;"> The investment objective for this Model has a primary emphasis on capital growth and income. This Model is classified to have medium volatility. It is most suitable for an investor that is comfortable
with fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time. One of the primary reasons municipal bonds are considered separately from other types of bonds is their special
ability to provide tax-exempt income. Interest paid by the issuer (i.e., the municipality, state or local government) to bond holders is often exempt from all federal taxes, as well as state or local taxes depending on the state in which the issuer
is located, subject to certain restrictions. Therefore, for taxable accounts, it can be a tax advantage to invest in municipal bonds in lieu of core fixed income investments.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Risk:<FONT style="font-style:Normal;"> Fixed income is historically considered less risky than equities. Model 3 has 60% of the assets in fixed income or cash and 40% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides a more aggressive investment risk than Models 1 and 2 and less aggressive than Model 4.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Benchmark:
<FONT style="font-style:Normal;"> 28% Russell 3000 (U.S. Equity)/12% MSCI EAFE (International Equity)/50% BC Municipal Bond (U.S. Fixed Income)/10% 90-Day T-Bills (Cash)</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:left;text-decoration:none;text-transform:none;">&nbsp;&nbsp;&nbsp;&nbsp;</DIV> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:12pt;width:99.45%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Eligible
<BR> Portfolio </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">Target
 Allocations </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">U.S.
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Select
 UMA<BR> Model 4 w/<BR> Municipal Bonds </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">U.S.
 Small Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Small Cap<BR> Growth Equity </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.30%;" rowspan="2">Composition
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">International
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">U.S.
 Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">Cash
 </TD></TR>
<TR style="height:34pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Developed
<BR> International<BR> Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Emerging
<BR> Markets Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Municipal<BR> Bond Fixed<BR> Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 High Yield<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Cash/U.S.
<BR> Short Term<BR> Bond </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;">50%
 Equity<BR> 50% Fixed </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">25
 - 45% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 15% </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Strategy:<FONT style="font-style:Normal;"> Global Balanced- A global balanced model utilizing equities, fixed income, and cash seeking a moderate level of growth and income for a moderate investor that seeks long term growth through achieving a
balance between income and capital growth globally. This investment strategy is most appropriate for investors with an investment time horizon of 5 to 7 years.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Objective:<FONT style="font-style:Normal;"> The investment objective for this Model has a primary emphasis on capital growth with some focus on income. This Model is classified to have medium volatility. It is most suitable for an investor that is
comfortable with fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time. One of the primary reasons municipal bonds are considered separately from other types of bonds is their
special ability to provide tax-exempt income. Interest paid by the issuer (i.e., the municipality, state or local government) to bond holders is often exempt from all federal taxes, as well as state or local taxes depending on the state in which the
issuer is located, subject to certain restrictions. Therefore, for taxable accounts, it can be a tax advantage to invest in municipal bonds in lieu of core fixed income investments.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Risk:<FONT style="font-style:Normal;"> Fixed income is historically considered less risky than equities. Model 4 has 50% of the assets in fixed income or cash and 50% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides the most aggressive investment risk.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Benchmark:
<FONT style="font-style:Normal;"> 35% Russell 3000 (U.S. Equity)/15% MSCI AC World x U.S. (International Equity)/ 50% BC Municipal Bond (U.S. Fixed Income).</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:32pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">12</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_13"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Eligible Portfolios are made up of the following asset
classes. Investment Products are then chosen to represent the appropriate asset classes within each Eligible Portfolio. The available Investment Products are mutual funds, exchange traded funds and separately managed accounts.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Asset Classes (listed in order of lowest historical risk to
highest historical risk):</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">U.S. Short
Duration Bond<FONT style="font-weight:Normal;"> &#8211; This asset class is generally comprised of securities made up of United States dollar-denominated Treasuries, government-related securities, and investment grade United States corporate
securities. The duration of these bonds is typically between less than one year and five years.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">U.S. Municipal Bond Fixed Income<FONT
 style="font-weight:Normal;"> &#8211; This asset class is generally comprised of investment grade municipal bonds.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">U.S. Core Fixed Income<FONT
 style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of securities made up of United States dollar-denominated Treasuries, government-related securities, and investment grade United States corporate
securities.</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">U.S. High Yield
Fixed Income<FONT style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of fixed income securities that have below investment grade credit ratings and carry higher risks (e.g., "junk bonds"), but generally offer higher
yields than investment-grade bonds.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">International Fixed Income<FONT
 style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of securities made up of non-U.S. dollar denominated Treasuries, international government-related securities, and investment grade international corporate
securities.</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">U.S. Large Cap Value
Equity<FONT style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of securities issued by U.S. companies with large market capitalizations (typically $10 billion or more). These securities have the potential for long-term
capital appreciation and are generally considered to be undervalued relative to a major unmanaged stock index based on price-to-current earnings, book value, asset value, or other factors. In aggregate, the securities within this asset class will
generally have below-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of the U.S. diversified large-cap asset class.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">U.S. Large Cap Growth Equity<FONT
 style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of securities issued by U.S. companies with large market capitalizations (typically $10 billion or more). These securities have the potential for long-term capital
appreciation and are generally defined as companies with expected long-term earnings growth rates significantly higher than the earnings growth rates of the stocks represented in a major unmanaged stock index. In aggregate, the securities within
this asset class will generally have above-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of the U.S. diversified large-cap asset class.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">U.S. Mid Cap Value Equity<FONT
 style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of securities issued by U.S. companies with market capitalizations typically in the $2 - $10 billion range. These securities have the potential for long-term capital
appreciation and are generally considered to be undervalued relative to a major unmanaged stock index based on price-to-current earnings, book value, asset value, or other factors. In aggregate, the securities within this asset class will generally
have below-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of the U.S. diversified mid-cap asset class.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">U.S. Mid Cap Growth Equity<FONT
 style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of securities issued by U.S. companies with market capitalizations typically in the $2 - $10 billion range. These securities have the potential for long-term capital
appreciation and are generally defined as companies with expected long-term earnings growth rates significantly higher than the earnings growth rates of the stocks represented in a major unmanaged stock index. In aggregate, the securities within
this asset class will generally have above-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of the U.S. diversified mid-cap asset class.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">U.S. Small Cap Value Equity<FONT
 style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of securities issued by U.S. companies with market capitalizations typically below $2 - $3 billion. These securities have the potential for long-term capital
appreciation and are generally considered to be undervalued relative to a major unmanaged stock index based on price-to-current earnings, book value, asset value, or other factors. In aggregate, the securities within this asset class will generally
have below-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of the U.S. diversified small-cap asset class.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">U.S. Small Cap Growth Equity<FONT
 style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of securities issued by U.S. companies with market capitalizations typically below $2 - $3 billion. These securities have the potential for long-term capital
appreciation and are generally defined as companies with expected long-term earnings growth rates significantly</FONT></DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">13</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_14"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">higher than the earnings growth rates of the stocks
represented in a major unmanaged stock index. In aggregate, the securities within this asset class will generally have above-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of
the U.S. diversified small-cap asset class.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">Developed International Equity<FONT
 style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of securities with primary trading markets outside of the United States in developed international markets.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">Emerging Markets Equity<FONT
 style="font-weight:Normal;"> &#8211; An asset class that is generally comprised of securities with primary trading markets in developing countries outside of the U. S. that have low standards of democratic governments, free market economies,
industrialization, social programs, and human rights guarantees for its citizens.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following indices are listed from the lowest historical
risk to the highest historical risk. Risk is defined as the long term historical standard deviation of each asset class, which measures the degree of volatility.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Benchmark Indices (listed in order of lowest risk to highest
risk), which represent various asset classes:</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">90-Day T- Bills<FONT
 style="font-weight:Normal;"> &#8211; Index that measures returns of three-month Treasury Bills. (Applicable to: Cash)</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">BC Municipal Bond<FONT
 style="font-weight:Normal;"> &#8211; This index is representative of the tax-exempt bond market and is made up of investment grade municipal bonds issued after December 31, 1990, having a remaining maturity of at least one year. (Applicable to:
U.S. Fixed Income)</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">BC Aggregate
Bond<FONT style="font-weight:Normal;"> &#8211; This market value-weighted index measures fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues. (Applicable to: U.S. Fixed Income)</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">Russell
1000<FONT style="font-weight:Normal;"> &#8211; Index that measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000&#174; Index and includes approximately 1000 of the largest securities based
on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the U.S. market. The Russell 1000 Index is constructed to provide a comprehensive and unbiased barometer for the large-cap segment
and is completely reconstituted annually to ensure new and growing equities are reflected. (Applicable to: U.S. Equity)</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">Russell
3000<FONT style="font-weight:Normal;"> &#8211; This index measures the performance of the largest 3000 U.S. companies representing 98% of the investable U.S. equity market. (Applicable to: U.S. Equity)</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">MSCI All Country World<FONT
 style="font-weight:Normal;"> &#8211; A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of June 2007 it consisted of the following 23 developed market
country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United
States. (Applicable to: International Equity)</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">MSCI EAFE<FONT style="font-weight:Normal;">
&#8211; The Morgan Stanley Capital International Europe, Australasia and Far East Index is a market-weighted index composed of companies representative of the market structure of 20 developed market countries in Europe, Australasia and the Far East.
(Applicable to: International Equity)</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The
Eligible Portfolios offered by MSSB are subject to the same risks faced by similar investment options available in the market, including, without limitation, market risk (the risk of an overall down market), interest rate risk (the risk that rising
or declining interest rates will hurt your investment returns), idiosyncratic risk (the risk that an individual asset will hurt your returns), and concentration risk (the risk that due to concentrations in a certain segment of the market which
performs poorly, your returns are lower than the overall market). The Eligible Portfolios may not achieve their respective investment objectives regardless of whether or not you purchase the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Can a Contract be purchased by an Individual Retirement
Account?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">You may purchase a Contract for your IRA, Roth
IRA, SEP IRA or Simple IRA (collectively, an "IRA"). You must designate yourself as the Annuitant of the IRA if your custodian will be listed as the owner. The Contract is held within the IRA for your benefit. If you elect the Spousal Continuation
Option (discussed herein), you and your spouse must be Co-Annuitants, and your spouse must be listed as the sole beneficiary of Your Account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For Contracts within an IRA, Nationwide makes Guaranteed
Lifetime Income Payments to the IRA unless otherwise directed by the trustee. Any IRA payments made to you are considered an IRA distribution and will be taxed as such. Distributions that you receive from your IRA with respect to the Contract will
generally be treated as ordinary taxable income. You should refer to your IRA disclosure documents and/or Internal Revenue Service Publication 590 for the rules applicable to IRAs and their distributions.</DIV> </DIV> <DIV style="width:100%;">
</DIV> <DIV style="margin-top:16pt;width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">14</DIV> </DIV>
<DIV style="width:100%;"> </DIV> <DIV style="width:100%;"> </DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_15"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Can the Contract Owner cancel the Contract?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">After you purchase and receive the Contract, you have up to 30
days to cancel your Contract. We call this the "Examination Period." In order to cancel your Contract, you must provide us with the approved cancellation form (which can be obtained from the Service Center) at the Service Center within 30 days after
receiving the Contract (or such longer period that your state may require). We will then terminate your Contract and refund to Your Account the full amount of any Fee we have already assessed.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">After the Examination Period has expired, you can cancel your
Contract by:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">advising us and MSSB that
you want to terminate the Contract; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">liquidating all of the
investments in Your Account; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">terminating
 Your Account. </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you cancel your
Contract, before or after the examination period, a 30-day waiting period may be imposed before you can purchase another Contract for Your Account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">There are other actions or inactions that can cause the
Contract to terminate as well (see <FONT style="font-style:italic;">Suspension and Termination Provisions</FONT>).</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Does the Contract contain any type of spousal benefit?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Yes. At the time of application, you may elect to add the
Spousal Continuation Option to your Contract. The Spousal Continuation Option allows a surviving spouse to continue to take withdrawals during the Withdrawal Phase and receive payments during the Income Phase, for the duration of his or her
lifetime, provided that the conditions outlined in this prospectus are satisfied. In order to elect the Spousal Continuation Option for Non-Qualified Contracts, you must be the owner of Your Account and list your spouse as Co-Annuitant of the
Contract. If Your Account is held by an IRA, the sole beneficiary to the IRA must be your spouse. There is a maximum Spousal Continuation Option Fee Percentage equal to a rate of 0.30% of the Guaranteed Lifetime Withdrawal Base associated with the
Spousal Continuation Option. Currently, the Spousal Continuation Option Fee Percentage is equal to a rate of 0.20% of the Guaranteed Lifetime Withdrawal Base.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Does the Contract contain any kind of Guaranteed Lifetime
Withdrawal Base increases?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Yes. During both the
Accumulation Phase and the Withdrawal Phase, the Contract contains an anniversary step-up feature, the <FONT style="font-style:italic;">"Annual Benefit Base Review"</FONT> where if, on any Contract Anniversary, Your Account Value exceeds the
Guaranteed Lifetime Withdrawal Base, we will automatically increase your Guaranteed Lifetime Withdrawal Base to equal that Your Account Value (see <FONT style="font-style:italic;">What is the Guaranteed Lifetime Withdrawal Base and how is it
calculated?</FONT>).</DIV> <DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Risk Factors</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Your Account may perform well enough that you may not receive
any Guaranteed Lifetime Income Payments from Nationwide under the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The assets in Your Account must be invested in accordance with
one of the designated Eligible Portfolios. The Eligible Portfolios, together with the limits on the amount you may withdraw annually without reducing your Guaranteed Lifetime Withdrawal Base, are intended to minimize the risk to us that we will be
required to make Guaranteed Lifetime Income Payments to you. <FONT style="font-style:italic;">Accordingly, the risk against which the Contract protects, i.e., that Your Account Value will be reduced below the Minimum Account Value by withdrawals
and/or poor investment performance, or that you will live beyond the age when Your Account Value is reduced below the Minimum Account Value, is likely to be small. In this case, you will have paid us fees for the life of your Contract and received
no payments in return.</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Your investment choices are
limited by the Contract.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Guarantee associated with
the Contract is contingent on your investments being allocated to one of the Eligible Portfolios or a Former Eligible Portfolio. The Eligible Portfolios may be managed in a more conservative fashion than other investments available to you. If you do
not purchase the Contract, it is possible that you may invest in other types of investments that experience higher growth or lower losses, depending on the market, than the Eligible Portfolios experience.</DIV> </DIV> <DIV style="width:100%;">
</DIV> <DIV style="margin-top:16pt;width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">15</DIV> </DIV>
<DIV style="width:100%;"> </DIV> <DIV style="width:100%;"> </DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_16"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">You must remain invested in Your Account at MSSB to maintain
your Contract.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In order to receive any benefits under
the Contract, you must maintain Your Account at MSSB and pay the annual advisory fees and other compensation associated with the Select UMA program. If you terminate Your Account with MSSB or transfer Your Account to another firm, the Contract will
automatically terminate and you will not receive any payments or other benefits under the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">You may die before receiving payments from us.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Despite general societal increases in longevity, you may still
die prematurely, and thus never receive any payments under the Contract. This Contract is designed to provide protection, in many cases, to clients who live beyond life expectancy. However, you do not have to live beyond life expectancy to receive
payments under the Contract, and conversely, living beyond your life expectancy does not guarantee payments from us under the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Early Withdrawals or Excess Withdrawals will reduce or
eliminate the Guarantee provided by your Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Withdrawals can cause you to lose the right to any Guaranteed
Lifetime Income Payments under the Contract. If you take withdrawals before the Withdrawal Start Date (an "Early Withdrawal") or if you withdraw more than the Guaranteed Lifetime Withdrawal Amount in a given year after the Withdrawal Start Date (an
"Excess Withdrawal"), you will reduce the Guaranteed Lifetime Withdrawal Base and consequently, the amount of any Guaranteed Lifetime Withdrawals. Multiple Early Withdrawals and/or multiple Excess Withdrawals can reduce your Guaranteed Lifetime
Withdrawal Base and Your Account Value to zero. If this occurs, any Guaranteed Lifetime Withdrawals could be substantially reduced or eliminated.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> The Contract does not
require us or MSSB to warn you or provide you with notice regarding potentially adverse consequences that may be associated with any withdrawals or other types of transactions involving Your Account.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">The Contract Fee will reduce the growth of Your Account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The deduction of the Contract Fee each quarter will negatively
affect the growth of Your Account. Depending on how long you live and how your investments perform, you may be financially better off without purchasing the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Actions of your creditors may reduce or eliminate the Guarantee
provided by your Contract.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">You own Your Account and the
assets held in it. We have no ownership or control over Your Account or the assets held in it. The assets in Your Account are not subject to our creditors. However, assets in Your Account may be subject to attachment by your creditors. Moreover,
because you may liquidate Your Account at any time, you are also entitled to pledge the assets in Your Account as collateral for a loan. There is a risk that if you pledge the assets in Your Account as collateral for a loan and the value of the
assets in Your Account decreases, your creditors may liquidate assets in Your Account to pay the loan. This liquidation will be treated as a withdrawal from Your Account. If it is an Early Withdrawal or an Excess Withdrawal, it could cause you to
lose the right to receive Guaranteed Lifetime Income Payments under the Contract. Therefore, using the assets in Your Account as collateral for a loan may cause you to lose the Guarantee available under the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Your Guarantee may terminate if MSSB no longer manages the
Eligible Portfolios.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We will only pay the Guarantee
under this Contract if MSSB manages the Eligible Portfolios or Former Eligible Portfolios. If, for any reason, MSSB no longer manages the Eligible Portfolios or Former Eligible Portfolios, we reserve the right to suspend the Contract. If you choose
to continue your Contract and the Guarantee, you must transfer Your Account Value to a third party account approved by us or to an annuity contract that we, or one of our affiliates, offer. If you choose not to transfer Your Account Value, this
Contract and the Guarantee will terminate.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide
determines that an Eligible Portfolio is no longer eligible as an investment option under the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As the provider of the Guarantee, we maintain sole discretion
as to which investment options will be offered under the Contracts as Eligible Portfolios. We only make available those Eligible Portfolios that we determine carry an acceptable amount of risk for Nationwide to manage the Guarantee. If, after making
an Eligible Portfolio available, we subsequently</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">16</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">determine that such Eligible Portfolio carries too much risk for Nationwide
to manage the Guarantee, we will re-characterize the Eligible Portfolio as a Former Eligible Portfolio. Re-characterizing an Eligible Portfolio as a Former Eligible Portfolio triggers a term and condition change for those Contract Owners invested in
the affected Former Eligible Portfolio. Upon any such re-characterization, we will notify affected Contract Owners and explain their contractual options. Please see the <FONT style="font-style:italic;">"Terms and Conditions of the Contract,"</FONT>
for more information about terms and conditions changes.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Additional deposits that exceed $2,000,000 in Total Gross
Deposits could suspend or terminate your Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide does not control the assets in Your Account so it
cannot set limits on the amount of Additional Deposits you can add to Your Account. Nationwide does, however, control how the Guaranteed Lifetime Withdrawal Base is calculated which directly impacts Nationwide's obligation to make Guaranteed
Payments under the Contract. In order to manage Nationwide's risk of making Guaranteed Payments, Nationwide reserves the right to refuse to accept for your Guaranteed Lifetime Withdrawal Base any Additional Deposit in excess of $2,000,000 in Total
Gross Deposits if certain requirements are not met. If such an Additional Deposit is made and the requirements are not met, your Contract may be suspended which could lead to Contract termination. Please see
<FONT style="font-style:italic;">"Suspension and Termination Provisions,"</FONT> for more information.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide's claims paying ability.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract is not a separate account product. This means
that the assets supporting the Contract are not held in a separate account of Nationwide for the exclusive benefit of Contract Owners and are not insulated from the claims of our creditors. Your Guaranteed Lifetime Income Payments will be paid from
our General Account and, therefore, are subject to our claims paying ability. Payments under the Contract are not guaranteed by MSSB.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Tax Consequences.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract is novel and innovative. To date, the tax
consequences of the Contract have not been addressed in binding published legal authorities. We intend to treat your Contract as an annuity contract in reporting taxable income attributable to the Contract to you and to the Internal Revenue Service.
Assuming the Contract is correctly treated as an annuity contract for tax purposes, Guaranteed Lifetime Income Payments you receive in the Income Phase will be ordinary income to you that is taxable to the extent provided under the tax rules for
annuities. We believe that, in general, the tax treatment of transactions involving investments in Your Account more likely than not will be the same as it would be in the absence of the Contract. We can provide no assurances, however, that a court
would agree with the foregoing interpretations of the law if the Internal Revenue Service were to challenge the foregoing treatment. You should consult a tax advisor before purchasing a Contract (see <FONT style="font-style:italic;">Federal Income
Tax Considerations</FONT>).</DIV> <DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Your Relationship with MSSB
and Nationwide</DIV> <DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">The Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract is an individual supplemental immediate fixed
income annuity contract. That means that the Contract you are purchasing entitles you to an immediate fixed income annuity contract if, and only if, one of the triggering events discussed earlier in this prospectus occurs. The Contract is designed
for investors in Select UMA Models approved as Eligible Portfolios who intend to use the assets in their Account as the basis for periodic withdrawals to provide income for retirement or for other purposes.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide is not your investment advisor. Rather, MSSB
provides Overlay Manager services for the Eligible Portfolios that your Financial Advisor may recommend. Additionally, MSSB provides the Select UMA services even if you do not purchase a Nationwide Contract or decide to terminate your Nationwide
Contract. You and your Financial Advisor determine whether to invest in an Eligible Portfolio. If you decide to invest in an Eligible Portfolio, as a requirement to open Your Account, you will sign the Client Agreement.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Select UMA program is governed by the Client Agreement
that you sign with MSSB. You sign the Client Agreement with MSSB at or before the time MSSB opens Your Account (a requirement for issuance of the Contract). In the Client Agreement, you authorize MSSB to provide investment advisory services to you,
including the selection of your Eligible Portfolio. MSSB will act through your Financial Advisor, an employee of MSSB, who serves as an advisor to you. The Overlay Manager is a division of MSSB. The Overlay Manager constructs and maintains your
Eligible Portfolio by implementing your choice of Model and Investment Product by arranging for the execution of trades in Your Account,</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">17</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">placing orders for the purchase, sale, or redemption of shares of mutual
funds and exchange-traded funds in accordance with the Model you have selected, and rebalancing Your Account. Please read the Client Agreement carefully. More information regarding the Select UMA program is provided in the relevant MSSB Form ADV,
Schedule H (the "MSSB ADV"), which you may obtain from your MSSB Financial Advisor.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">You may apply to purchase a Contract by completing an
application. When your application is approved, we provide the Contract's Guarantee to you on the assumption and condition that Your Account remains invested in one of the Eligible Portfolios or a Former Eligible Portfolio. We require MSSB to
provide data to us to monitor the Eligible Portfolios or Former Eligible Portfolio and to alert us of any changes to the allocations within them.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Your Financial Advisor is a representative of and is
affiliated with MSSB, the broker-dealer that is authorized to offer Your Account with these Contracts. Nationwide has an agreement with MSSB to offer the Contracts. MSSB works with your Financial Advisor to assist you in purchasing a Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">While the Contract is in the Accumulation and Withdrawal
Phases, MSSB is responsible for administering Your Account, including processing additional payments and withdrawals, deducting and remitting to us the Contract Fee, assessing advisory and any other fees associated with Your Account, and providing
you with statements, confirmations and other correspondence. During the Accumulation and Withdrawal Phases, Nationwide is responsible for maintaining your Guaranteed Lifetime Withdrawal information, including your Guaranteed Lifetime Withdrawal
Amount and your overall Guaranteed Lifetime Withdrawal Base.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If and when one of the triggering events occurs, you will be
contacted to elect to enter the Income Phase. You will close Your Account and transfer any remaining assets to us. We will then issue you an immediate fixed income annuity contract that will result in Guaranteed Lifetime Income Payments from us for
the remainder of your (and your spouse's, if the Spousal Continuation Option is elected) lifetime. Once the Income Phase begins, your relationship with MSSB, with respect to Your Account, terminates. All administrative responsibilities undertaken by
MSSB during the Accumulation and Withdrawal Phases will be performed by Nationwide, the issuer of the Contract and the entity obligated to pay you Guaranteed Lifetime Income Payments for the rest of your (or your spouse's, if the Spousal
Continuation Option is elected) lifetime.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Management of
Your Account.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Management of Your Account is governed by
the Client Agreement. The Contract requires that you remain invested in one of the Eligible Portfolios or a Former Eligible Portfolio in order to maintain the Guarantee associated with the Contract. Neither Nationwide nor MSSB is responsible for
ensuring that the assets in Your Account remain invested according to the terms of the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">The Accumulation Phase</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Once Your Account is opened and you purchase the Contract, you
will begin the first phase of the Contract &#8211; the Accumulation Phase. During this phase, you will establish your original Guaranteed Lifetime Withdrawal Base, which is equal to Your Account Value when the Contract is issued.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What is the Guaranteed Lifetime Withdrawal Base and how is it
calculated?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Guaranteed Lifetime Withdrawal Base is
the amount we use to calculate the Guaranteed Lifetime Withdrawals. On the date we issue the Contract, your original Guaranteed Lifetime Withdrawal Base equals Your Account Value. The anniversary of the date we issue your Contract is known as the
"Contract Anniversary" and each one-year period between subsequent Contract Anniversaries is referred to as a "Contract Year."</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Can the Guaranteed Lifetime Withdrawal Base change during the
Accumulation Phase?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Yes. There are several ways that
your Guaranteed Lifetime Withdrawal Base can increase or decrease during the Accumulation Phase:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:9pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">1.
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%;">The Annual Benefit Base Review<FONT
 style="font-style:Normal;">.</FONT><FONT style="font-style:Normal;font-weight:Normal;"> On each Contract Anniversary during the Accumulation Phase, we do an Annual Benefit Base Review to see if you are eligible for an increase to your Guaranteed
Lifetime Withdrawal Base. We will examine the following three items and Your Guaranteed Lifetime Withdrawal Base will be set equal to the greatest of:</FONT> </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV>
<DIV style="margin-top:16pt;width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">18</DIV> </DIV>
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:6.65%;margin-top:0pt;width:93.35%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.56%;">(a)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.44%; ">the current Guaranteed
Lifetime Withdrawal Base, adjusted for transactions in the previous Contract Year that affected the Guaranteed Lifetime Withdrawal Base; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.56%;">(b)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.44%; ">Your Account Value as of the
Contract Anniversary; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.56%;">(c)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.44%;">the
original Guaranteed Lifetime Withdrawal Base with a 5% roll-up. This is equal to the original Guaranteed Lifetime Withdrawal Base plus 5% of the original Guaranteed Lifetime Withdrawal Base for each Contract Anniversary that has been reached. An
adjustment will be made to the calculations for transactions that increase or decrease the Guaranteed Lifetime Withdrawal Base. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Any increase to the Guaranteed Lifetime Withdrawal Base will
be automatic if there are no terms and conditions changes. Otherwise, we require an election to increase the Guaranteed Lifetime Withdrawal Base (see <FONT style="font-style:italic;">Terms and Conditions of the Contract</FONT> for an explanation of
the impact upon the Guaranteed Lifetime Withdrawal Base if there is a terms and conditions change).</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> Since the Contract Fee
is calculated based on the Guaranteed Lifetime Withdrawal Base, increases to the Guaranteed Lifetime Withdrawal Base will result in higher Contract Fees. Under the automatic Annual Benefit Base Review feature, you agree to pay the larger
Fee.</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">You can cancel the automatic Annual Benefit
Base Review by notifying us.</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:9pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">2.
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">Additional Deposits to Your
Account in the Accumulation Phase.<FONT style="font-style:Normal;font-weight:Normal;"> The Contract permits you to make Additional Deposits to Your Account during the Accumulation Phase. Additional Deposits will result in an immediate increase to
your Guaranteed Lifetime Withdrawal Base equal to the dollar amount of the Additional Deposit.</FONT> </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> We reserve the right to
refuse to accept an Additional Deposit made into Your Account for your Guaranteed Lifetime Withdrawal Base that brings your Total Gross Deposits above $2,000,000 (see </FONT><FONT style="font-style:italic;font-weight:Normal;">Suspension and
Termination Provisions</FONT><FONT style="font-weight:Normal;">). Your Account Value may increase above $2,000,000 due to market performance without suspension.</FONT></DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:9pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">3.
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">Early Withdrawals from Your
Account.<FONT style="font-style:Normal;font-weight:Normal;"> An Early Withdrawal is any withdrawal you take from Your Account prior to your elected Withdrawal Start Date (discussed later in this provision). Early Withdrawals will result in a
decrease to your Guaranteed Lifetime Withdrawal Base. The amount of that decrease will be the greater of (a) or (b), where:</FONT> </TD></TR>
<TR>
<TD style="padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.44%;">&#160; </TD>
<TD style="text-align:left;vertical-align:top;white-space:nowrap;width:96.56%;">&#160; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:93.90%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:36pt;padding-right:1.5pt;padding-top:6pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:2.46%;">(a)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:6pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:1.63%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:1.5pt;padding-top:6pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:95.62%;" colspan="3">the
 dollar amount of the Early Withdrawal; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:36pt;padding-right:1.5pt;padding-top:4pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:2.46%;">(b)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:4pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:1.63%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:1.5pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:95.62%;" colspan="3">a
 "proportional amount" derived from the following calculation: (A &#247; B) &#215; C, where: </TD></TR>
<TR>
<TD style="padding-bottom:2.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.46%;">&#160; </TD>
<TD style="padding-bottom:2.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:1.63%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:2.36%;">A
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:1.63%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:91.63%;">the
 dollar amount of the Early Withdrawal; </TD></TR>
<TR>
<TD style="padding-bottom:2.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.46%;">&#160; </TD>
<TD style="padding-bottom:2.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:1.63%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:2.36%;">B
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:1.63%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:91.63%;">Your
 Account Value on the date of the Early Withdrawal; and </TD></TR>
<TR>
<TD style="padding-bottom:6pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.46%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:1.63%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:2.36%;">C
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:1.63%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:1.5pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:91.63%;">your
 Guaranteed Lifetime Withdrawal Base on the date of the Early Withdrawal. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> When an Early Withdrawal
occurs at a time when the market is doing well enough that Your Account Value exceeds the Guaranteed Lifetime Withdrawal Base, an Early Withdrawal will result in a dollar for dollar reduction in the Guaranteed Lifetime Withdrawal Base. When an Early
Withdrawal occurs at a time when the market has declined so that Your Account Value is less than the Guaranteed Lifetime Withdrawal Base, an Early Withdrawal will result in a proportional reduction to the Guaranteed Lifetime Withdrawal Base.
Furthermore, the more the market has declined (i.e., the greater the difference between Your Account Value and the Guaranteed Lifetime Withdrawal Base), the greater impact the proportional reduction will have on the remaining Guaranteed Lifetime
Withdrawal Base resulting in a larger decrease to the overall Guaranteed Lifetime Withdrawals.</FONT></DIV> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:99.26%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:99.44%;" colspan="7">Example
 Early Withdrawal Calculations </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:48.32%;" colspan="3">In
 this example, the Account Value is greater than the Guaranteed Lifetime Withdrawal Base. </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:2pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:52.23%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:98.88%;" colspan="3">In
 this example, the Account Value is less than the Guaranteed Lifetime Withdrawal Base: </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.32%;" colspan="3">At
 the time of the Early Withdrawal: </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:4.25pt;text-align:left;vertical-align:bottom;width:52.23%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:98.88%;" colspan="3">At
 the time of the Early Withdrawal: </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:12pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.41%;">Account
 Value </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$500,000
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:3pt;padding-top:1.5pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:53.63%;">Account
 Value </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$400,000
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:12pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.41%;">Guaranteed
 Lifetime Withdrawal Base </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$450,000
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:3pt;padding-top:1.5pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:53.63%;">Guaranteed
 Lifetime Withdrawal Base </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$450,000
 </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:12pt;padding-right:3pt;padding-top:1.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:36.41%;">Withdrawal
 Amount </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.00pt; padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$15,000
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:2pt;padding-right:3pt;padding-top:1.5pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:53.63%;">Withdrawal
 Amount </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.00pt;padding-right:3pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$15,000
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.32%;" colspan="3">Guaranteed
 Lifetime Withdrawal Base reduction calculations: </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:52.23%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:98.88%;" colspan="3">Guaranteed
 Lifetime Withdrawal Base reduction calculations: </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:12pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.41%;">Dollar
 amount </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8.00pt;padding-right:3pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$15,000
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:53.63%;">Dollar
 amount </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8.00pt;padding-right:3pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$15,000
 </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:20pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">19</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_20"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:0pt;width:99.26%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:99.44%;" colspan="7">Example
 Early Withdrawal Calculations </TD></TR>
<TR style="height:24.5pt;">
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:2.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:48.32%;" colspan="3">In
 this example, the Account Value is greater than the Guaranteed Lifetime Withdrawal Base. </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:2pt;padding-right:3pt;padding-top:2.5pt;text-align:left;vertical-align:bottom;width:52.23%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:2.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:98.88%;" colspan="3">In
 this example, the Account Value is less than the Guaranteed Lifetime Withdrawal Base: </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21pt;padding-right:3pt;padding-top:4.25pt; text-align:left;text-decoration:none;text-indent:-9pt;text-transform:none;vertical-align:bottom;width:36.41%;">Proportional
 amount<BR> <FONT style="font-style:italic;">($15,000 &#247; $500,000) x $450,000</FONT> </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:4.25pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.00pt; padding-right:3pt;padding-top:4.25pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$13,500
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:2pt;padding-right:3pt;padding-top:4.25pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:12pt;padding-right:3pt;padding-top:4.25pt; text-align:left;text-decoration:none;text-indent:-9pt;text-transform:none;vertical-align:bottom;width:53.63%;">Proportional
 amount<BR> <FONT style="font-style:italic;">($15,000 &#247; $400,000) x $450,000</FONT> </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:4.25pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.00pt;padding-right:3pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$16,875
 </TD></TR>
<TR style="height:13.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:3pt;padding-right:3pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.32%;" colspan="3">After
 the Early Withdrawal: </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:2.5pt;padding-right:3pt;padding-top:2.5pt;text-align:left;vertical-align:bottom;width:52.23%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:3pt;padding-right:3pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:98.88%;" colspan="3">After
 the Early Withdrawal: </TD></TR>
<TR style="height:23pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:21pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:bottom;width:36.41%;">Account
 Value<BR> ($500,000 - $15,000) </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$485,000
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:12pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:bottom;width:53.63%;">Account
 Value<BR> ($400,000 - $15,000) </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$385,000
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:21pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:bottom;width:36.41%;">Guaranteed
 Lifetime Withdrawal Base<BR> ($450,000 - $15,000) </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$435,000
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:12pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:bottom;width:53.63%;">Guaranteed
 Lifetime Withdrawal Base<BR> ($450,000 - $16,875) </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$433,125
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In the case of an Early Withdrawal
that causes any reduction to your Guaranteed Lifetime Withdrawal Base, we will provide you with the opportunity to restore your Guaranteed Lifetime Withdrawal Base to the amount that was in effect prior to the Early Withdrawal. To do so, within 45
days of the withdrawal, you must make Additional Deposits to Your Account equal to or greater than the Early Withdrawal amount, and submit a request to us in writing to restore your Guaranteed Lifetime Withdrawal Base as of the date of the Early
Withdrawal. In the event you restore your Guaranteed Lifetime Withdrawal Base after an Early Withdrawal, we reserve the right to limit this restoration of your Guaranteed Lifetime Withdrawal Base to one time per Contract Year, not to exceed three
times during the life of the Contract. We will confirm with you that your Guaranteed Lifetime Withdrawal Base is restored, and will notify you if you reach the limit of withdrawal restorations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What if the Account Value falls to the Minimum Account Value
before the Withdrawal Start Date but your Guaranteed Lifetime Withdrawal Base is above zero?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If Your Account Value falls below the Minimum Account Value
before your Withdrawal Start Date, your Contract will be suspended (see <FONT style="font-style:italic;">Suspension and Termination Provisions</FONT>).</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">The Withdrawal Phase</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What events trigger the Withdrawal Phase?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Your Account and the Contract will continue in the
Accumulation Phase until you (or in the case of Co-Annuitants, the younger Co-Annuitant) reach the age of 55 and affirmatively elect to enter the second phase of the Contract &#8211; the Withdrawal Phase. To elect to enter the Withdrawal Phase, you
and your Financial Advisor must complete a Withdrawal Phase election form and send the form to the Service Center.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What is the Withdrawal Start Date and what does it mean?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Your Withdrawal Start Date is the date that we receive a
completed Withdrawal Phase election form indicating your choice, once you are eligible under the Contract to enter the Withdrawal Phase. The Withdrawal Phase entitles you to begin taking annual withdrawals up to the Guaranteed Lifetime Withdrawal
Amount (discussed later in this provision) without reducing your Guaranteed Lifetime Withdrawal Base. To be eligible to enter the Withdrawal Phase, you must reach age 55 or older. In the case of Co-Annuitants, your eligibility to elect to enter the
Withdrawal Phase is based on the date the younger Co-Annuitant reaches the age of 55. However, for Contracts owned by an IRA, distributions in an amount necessary to satisfy your minimum required distributions as provided in the Internal Revenue
Code will not reduce your Guaranteed Lifetime Withdrawal Base, regardless of the age of your spouse. This means that if you must meet required minimum distributions, you may enter the Withdrawal Phase.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you are eligible, and you wish to enter the Withdrawal
Phase, you must complete a Withdrawal Phase election form. You may request the form through your Financial Advisor or from the Service Center. Your Withdrawal Start Date will be the date we receive your completed Withdrawal Phase election form at
the Service Center, even if you do not take an actual withdrawal at that time. We will notify you that we received your completed Withdrawal Phase election form. If you take a withdrawal after the age of 55 and have not completed the Withdrawal
Phase election form, you and your Financial Advisor will be notified. Upon notification, if you do not complete a Withdrawal Phase election form within 30 days, your withdrawal will be considered an Early Withdrawal and your Guaranteed Lifetime
Withdrawal Base will be reduced as stated in the <FONT style="font-style:italic;">Early Withdrawals from Your Account</FONT> section. <FONT style="font-weight:bold;">Note</FONT>: If your Withdrawal Start Date is in the initial Contract Year or in
the year you turn 55, the amount of your initial withdrawals may be prorated based upon the number of days remaining in that calendar year.</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">20</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_21"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you do not affirmatively elect to enter the Withdrawal
Phase, every withdrawal you take will be considered an Early Withdrawal. As described in the <FONT style="font-style:italic;">Early Withdrawals from Your Account</FONT> section, Early Withdrawals will reduce your Guaranteed Lifetime Withdrawal Base.
If you do not enter the Withdrawal Phase, you will continue to pay for the Guarantee but will not receive the benefit of the Guaranteed Lifetime Withdrawals.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Once you enter the Withdrawal Phase, the Early Withdrawal
provisions of this prospectus are inapplicable to your Contract and your potential 5% roll-up to the Guaranteed Lifetime Withdrawal Base that was available in the Accumulation Phase will no longer be available.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What is the Guaranteed Lifetime Withdrawal Amount and how is it
calculated?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Guaranteed Lifetime Withdrawal Amount is
the maximum amount you may withdraw each calendar year after your Withdrawal Start Date without reducing your Guaranteed Lifetime Withdrawal Base. The Guaranteed Lifetime Withdrawal Amount is calculated by multiplying your Guaranteed Lifetime
Withdrawal Base by your Guaranteed Lifetime Withdrawal Percentage.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Your Guaranteed Lifetime Withdrawal Percentage depends on your
age (or in the case of Co-Annuitants, the younger Co-Annuitant's age) at the time of the withdrawal. Your Guaranteed Lifetime Withdrawal Percentage will automatically increase on the calendar year after you (or in the case of Co-Annuitants, the
younger Co-Annuitant) turns 65.</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:80.62%;">Your
 Age (or in the case of a Co-Annuitant, the age of<BR> the younger Co-Annuitant) at the time of the withdrawal </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:18.48%;">Guaranteed
 Lifetime<BR> Withdrawal Percentage </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:80.62%;">
<DIV style="float:left;">55 &#8211;
64</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:18.48%;">4%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:80.62%;">
<DIV style="float:left;">65 or
older</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:18.48%;">5%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In other words:</DIV>
<DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:82.92%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:center;width:20.73%;" bgcolor="#CCCCCC">Guaranteed
 Lifetime<BR> Withdrawal Amount </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:center;white-space:nowrap;width:3.85%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:center;width:22.07%;" bgcolor="#CCCCCC">Guaranteed
 Lifetime<BR> Withdrawal Base </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:center;white-space:nowrap;width:4.01%;">X
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:center;width:24.74%;" bgcolor="#CCCCCC">Guaranteed
 Lifetime<BR> Withdrawal Percentage </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> Although withdrawals
taken that do not exceed the Guaranteed Lifetime Withdrawal Amount do not reduce the Guaranteed Lifetime Withdrawal Base, they do reduce Your Account Value.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> Your Guaranteed Lifetime
Withdrawal Amount should be considered when you determine your periodic withdrawal strategy for retirement income or other purposes. Amounts withdrawn in excess of the Guaranteed Lifetime Withdrawal Amount will negatively impact your Guaranteed
Lifetime Withdrawal Base and any Guaranteed Lifetime Income Payments that may be payable to you under this Contract in the future.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Guaranteed Lifetime Withdrawal Amount is not cumulative.
In other words, taking less than the Guaranteed Lifetime Withdrawal Amount in one calendar year does not entitle you to withdraw more than the Guaranteed Lifetime Withdrawal Amount in a subsequent calendar year.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Can the Guaranteed Lifetime Withdrawal Base change during the
Withdrawal Phase?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Yes. There are several ways that your
Guaranteed Lifetime Withdrawal Base can increase or decrease during the Withdrawal Phase:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:9pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">1.
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%;">The Annual Benefit Base Review.<FONT
 style="font-style:Normal;font-weight:Normal;"> On each Contract Anniversary during the Withdrawal Phase, we do an Annual Benefit Base Review to see if you are eligible for an increase to your Guaranteed Lifetime Withdrawal Base. We will examine the
following two items and your Guaranteed Lifetime Withdrawal Base will be set equal to the greater of:</FONT> </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:36pt;margin-top:0pt;width:93.35%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.56%;">(a)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.44%; ">the current Guaranteed
Lifetime Withdrawal Base, adjusted for transactions in the previous Contract Year that affected the Guaranteed Lifetime Withdrawal Base; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.56%;">(b)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.44%;">Your
Account Value as of the Contract Anniversary. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Any increase to the Guaranteed Lifetime Withdrawal Base will
be automatic if there are no terms and conditions changes. Otherwise, we require an election to increase the Guaranteed Lifetime Withdrawal Base. See <FONT style="font-style:italic;">Terms and Conditions of the Contract</FONT> for an explanation of
the impact upon the Guaranteed Lifetime Withdrawal Base if there is a terms and conditions change.</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:29pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">21</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_22"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note: <FONT style="font-weight:Normal;">Since the Contract Fee
is calculated based on the Guaranteed Lifetime Withdrawal Base, increases to the Guaranteed Lifetime Withdrawal Base will result in higher Contract Fees. Under the automatic Annual Benefit Base Review feature, you agree to pay the larger
Fee.</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">You can cancel the automatic Annual Benefit
Base Review by notifying us.</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:9pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">2.
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">Additional Deposits to Your
Account in the Withdrawal Phase<FONT style="font-style:Normal;font-weight:Normal;">. Just as in the Accumulation Phase, the Contract permits you to make Additional Deposits to Your Account during the Withdrawal Phase, which will result in an
immediate increase to your Guaranteed Lifetime Withdrawal Base equal to the dollar amount of the Additional Deposit.</FONT> </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> We reserve the right to
refuse to accept an Additional Deposit made into Your Account for your Guaranteed Lifetime Withdrawal Base that brings your Total Gross Deposits above $2,000,000 (see </FONT><FONT style="font-style:italic;font-weight:Normal;">Suspension and
Termination Provisions</FONT><FONT style="font-weight:Normal;">). Your Account Value may increase above $2,000,000 due to market performance without suspension.</FONT></DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:9pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">3.
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">Excess Withdrawals from Your
Account.<FONT style="font-style:Normal;font-weight:Normal;"> Excess Withdrawals are any withdrawals taken after your Withdrawal Start Date that, during any calendar year, exceed the Guaranteed Lifetime Withdrawal Amount. Excess Withdrawals will
result in a decrease to your Guaranteed Lifetime Withdrawal Base. The amount of that decrease will be the greater of (a) or (b), where:</FONT> </TD></TR>
<TR>
<TD style="padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.44%;">&#160; </TD>
<TD style="text-align:left;vertical-align:top;white-space:nowrap;width:96.56%;">&#160; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:94.07%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:36pt;padding-right:1.5pt;padding-top:6pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:2.45%;">(a)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:6pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:1.62%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:1.5pt;padding-top:6pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:95.63%;" colspan="3">the
 dollar amount of the Excess Withdrawal (the amount withdrawn during any calendar year in excess of the Guaranteed Lifetime Withdrawal Amount); and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:36pt;padding-right:1.5pt;padding-top:4pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:2.45%;">(b)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:4pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:1.62%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:1.5pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:95.63%;" colspan="3">a
 "proportional amount" derived from the following calculation: (A &#247; B) &#215; C, where: </TD></TR>
<TR>
<TD style="padding-bottom:2.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.45%;">&#160; </TD>
<TD style="padding-bottom:2.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:1.62%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:2.36%;">A
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:1.80%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:91.47%;">the
 dollar amount of the Excess Withdrawal; </TD></TR>
<TR>
<TD style="padding-bottom:2.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.45%;">&#160; </TD>
<TD style="padding-bottom:2.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:1.62%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:2.36%;">B
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:2.5pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:1.80%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:1.5pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:91.47%;">Your
 Account Value (which will be reduced by any Guaranteed Lifetime Withdrawal Amount taken) on the date of the Excess Withdrawal; and </TD></TR>
<TR>
<TD style="padding-bottom:6pt;padding-right:1.5pt;padding-top:4pt;text-align:left;vertical-align:top;width:2.45%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:1.5pt;padding-top:4pt;text-align:left;vertical-align:top;width:1.62%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:4pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:2.36%;">C
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:1.5pt;padding-right:1.5pt;padding-top:4pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:1.80%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:1.5pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:91.47%;">your
 Guaranteed Lifetime Withdrawal Base on the date of the Excess Withdrawal </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> When an Excess
Withdrawal occurs at a time when the market is doing well enough that Your Account Value exceeds the Guaranteed Lifetime Withdrawal Base, an Excess Withdrawal will result in a dollar for dollar reduction in the Guaranteed Lifetime Withdrawal Base.
When an Excess Withdrawal occurs at a time when the market has declined so that Your Account Value is less than the Guaranteed Lifetime Withdrawal Base, an Excess Withdrawal will result in a proportional reduction to the Guaranteed Lifetime
Withdrawal Base. Furthermore, the more the market has declined (i.e., the greater the difference between Your Account Value and the Guaranteed Lifetime Withdrawal Base), the greater impact the proportional reduction will have on the remaining
Guaranteed Lifetime Withdrawal Base, resulting in a larger decrease to overall Guaranteed Lifetime Withdrawals.</FONT></DIV> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:99.26%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:99.44%;" colspan="7">Example
 Excess Withdrawal Calculations </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:2.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:48.32%;" colspan="3">In
 this example, the Account Value is greater than<BR> the Guaranteed Lifetime Withdrawal Base: </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:2pt;padding-right:3pt;padding-top:2.5pt;text-align:left;vertical-align:bottom;width:52.23%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:2.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:98.88%;" colspan="3">In
 this example, the Account Value is less than the<BR> Guaranteed Lifetime Withdrawal Base: </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.32%;" colspan="3">At
 the time of the Excess Withdrawal: </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:4.25pt;text-align:left;vertical-align:bottom;width:52.23%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:98.88%;" colspan="3">At
 the time of the Excess Withdrawal: </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:12pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.41%;">Account
 Value </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$500,000
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:3pt;padding-top:1.5pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:53.63%;">Account
 Value </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$400,000
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:12pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.41%;">Guaranteed
 Lifetime Withdrawal Base </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$450,000
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:3pt;padding-top:1.5pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:53.63%;">Guaranteed
 Lifetime Withdrawal Base </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$450,000
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:12pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.41%;">Guaranteed
 Lifetime Withdrawal Amount </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.00pt;padding-right:3pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$22,500
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:3pt;padding-top:1.5pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:53.63%;">Guaranteed
 Lifetime Withdrawal Amount </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.00pt;padding-right:3pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$22,500
 </TD></TR>
<TR style="height:12pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:12pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.41%;">Withdrawal
 Amount </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.00pt;padding-right:3pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$30,000
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:3pt;padding-top:1.5pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:53.63%;">Withdrawal
 Amount </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.00pt;padding-right:3pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$30,000
 </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21pt;padding-right:3pt;padding-top:3pt; text-align:left;text-decoration:none;text-indent:-9pt;text-transform:none;vertical-align:bottom;width:36.41%;">Excess
 Withdrawal Amount<BR> ($30,000 - $22,500) </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:13.01pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$7,500
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:2pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:12pt;padding-right:3pt;padding-top:3pt; text-align:left;text-decoration:none;text-indent:-9pt;text-transform:none;vertical-align:bottom;width:53.63%;">Excess
 Withdrawal Amount<BR> ($30,000 - $22,500) </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:13.01pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$7,500
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:3pt;padding-right:3pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.32%;" colspan="3">Guaranteed
 Lifetime Withdrawal Base reduction calculations: </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:2.5pt;padding-right:3pt;padding-top:2.5pt;text-align:left;vertical-align:bottom;width:52.23%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:3pt;padding-right:3pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:98.88%;" colspan="3">Guaranteed
 Lifetime Withdrawal Base reduction calculations: </TD></TR>
<TR style="height:12pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:12pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.41%;">Dollar
 amount </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:13.01pt;padding-right:3pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$7,500
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:3pt;padding-top:1.5pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:53.63%;">Dollar
 amount </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:3pt;padding-right:3pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:13.01pt;padding-right:3pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$7,500
 </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21pt;padding-right:3pt;padding-top:3pt; text-align:left;text-decoration:none;text-indent:-9pt;text-transform:none;vertical-align:bottom;width:36.41%;">Proportional
 amount<BR> ($7,500 &#247; $477,500) x $450,000 </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:13.01pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$7,068
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:2pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:12pt;padding-right:3pt;padding-top:3pt; text-align:left;text-decoration:none;text-indent:-9pt;text-transform:none;vertical-align:bottom;width:53.63%;">Proportional
 amount<BR> ($7,500 &#247; $377,500) x $450,000 </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:13.01pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$8,940
 </TD></TR>
<TR style="height:13.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.32%;" colspan="3">After
 the Excess Withdrawal: </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:52.23%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:98.88%;" colspan="3">After
 the Excess Withdrawal: </TD></TR>
<TR style="height:23pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:21pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:bottom;width:36.41%;">Account
 Value<BR> ($500,000 - $30,000) </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$470,000
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:12pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:bottom;width:53.63%;">Account
 Value<BR> ($400,000 - $30,000) </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$370,000
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:21pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:bottom;width:36.41%;">Guaranteed
 Lifetime Withdrawal Base<BR> ($450,000 - $7,500) </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$442,500
 </TD>
<TD style="border-right:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:18.90%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:12pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:bottom;width:53.63%;">Guaranteed
 Lifetime Withdrawal Base<BR> ($450,000 - $8,940) </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.65%;">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.61%;">$441,060
 </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:37pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">22</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_23"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If your Contract is issued as an asset in an IRA, and the only
withdrawals you take from the assets in Your Account are those taken to meet required minimum distributions for that account under the Internal Revenue Code, those withdrawals will not be considered Excess Withdrawals, even if the withdrawal exceeds
the Guaranteed Lifetime Withdrawal Amount.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In the case
of an Excess Withdrawal that causes any reduction to your Guaranteed Lifetime Withdrawal Base, we will provide you with the opportunity to restore your Guaranteed Lifetime Withdrawal Base to the amount that was in effect prior to the Excess
Withdrawal. To do so, within 45 days of the withdrawal, you must make Additional Deposits to Your Account equal to or greater than the Excess Withdrawal amount, and submit a request to us in writing to restore your Guaranteed Lifetime Withdrawal
Base as of the date of the Excess Withdrawal. In the event you restore your Guaranteed Lifetime Withdrawal Base after an Excess Withdrawal, we reserve the right to limit this restoration of your Guaranteed Lifetime Withdrawal Base to one time per
Contract Year, not to exceed three times during the life of the Contract. We will confirm with you that your Guaranteed Lifetime Withdrawal Base is restored, and will notify you if you reach the limit of withdrawal restorations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> The Guaranteed Lifetime
Withdrawal Base will never decrease due to market performance, even if Your Account Value goes down.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Do Early Withdrawals and Excess Withdrawals affect the
Guaranteed Lifetime Withdrawal Amount and the Guaranteed Lifetime Withdrawal Base differently?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Yes. Early Withdrawals are considered "early" because they are
taken before your Withdrawal Start Date, when your Guaranteed Lifetime Withdrawal Amount has not yet been established. If you take Early Withdrawals, your Guaranteed Lifetime Withdrawal Base will be reduced by the greater of the dollar amount of the
Early Withdrawal or the proportional amount calculation. The proportional amount calculation for Early Withdrawals (as described above) uses Your Account Value at the time of the Early Withdrawal.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Excess Withdrawals are in "excess" of your Guaranteed Lifetime
Withdrawal Amount, an amount established after your Withdrawal Start Date. If you take withdrawals in excess of your Guaranteed Lifetime Withdrawal Amount, your Guaranteed Lifetime Withdrawal Base will be reduced by the greater of the dollar amount
of the Excess Withdrawal or the proportional amount calculation. The proportional amount calculation for Excess Withdrawals (as described above) will apply to Your Account Value on the date of the Excess Withdrawal (minus any Guaranteed Lifetime
Withdrawal Amount taken on that day). Thus, Your Account Value is reduced by the Guaranteed Lifetime Withdrawal Amount and any Excess Withdrawal Amount.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What if the Account Value and the Guaranteed Lifetime
Withdrawal Base decline to zero due to Excess Withdrawals during the Withdrawal Phase?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If both Your Account Value and the Guaranteed Lifetime
Withdrawal Base decline to zero, the Contract will automatically terminate without value.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Triggering the Income Phase</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What events will trigger the Income Phase?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Your Account will continue in the Withdrawal Phase until any
of the following events, referred to as "triggering events," occurs:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Your Account Value, after
your Withdrawal Start Date, falls below the greater of $10,000 or the Guaranteed Lifetime Withdrawal Amount (the "Minimum Account Value"); </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Your Account Value is
invested in the Minimum Account Value Eligible Portfolio, as discussed in the <FONT style="font-style:italic;">Suspension and Termination Provisions</FONT> section, and you reach your Withdrawal Start Date; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">You,
after your Withdrawal Start Date, affirmatively elect to begin the Income Phase by submitting the appropriate administrative forms. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For Contracts owned by an IRA, the Co-Annuitant for whom the
IRA was established shall not be precluded from entering the Income Phase if a triggering event occurs, regardless of the age of their spouse.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> It is possible that you
may never begin the Income Phase. If you (and your spouse, if the Spousal Continuation Option is elected) die before any of the triggering events occurs, no benefit is payable under this Contract.</FONT></DIV> </DIV> <DIV style="width:100%;"> </DIV>
<DIV style="margin-top:16pt;width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">23</DIV> </DIV>
<DIV style="width:100%;"> </DIV> <DIV style="width:100%;"> </DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_24"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">How is the Contract transitioned into the Income Phase?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If, and when, a triggering event occurs, we will send you a
written notice informing you that you have met all of the conditions in order for your Contract to transition from the Withdrawal Phase to the Income Phase. The notice will contain an Income Phase election form.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you decide to transition your Contract into the Income
Phase, you must return the executed Income Phase election form to the Service Center and instruct MSSB to liquidate Your Account and transfer any remaining balance to us. Any unpaid Contract Fee will be charged against Your Account on a pro-rated
basis, but will not affect your Guaranteed Lifetime Withdrawal Base. We will accept those assets as a premium payment for your immediate fixed income annuity contract ("Annuity"). Shortly thereafter, we will issue your Annuity, and we will begin
making Guaranteed Lifetime Income Payments to you. The date the Annuity is issued is referred to as the "Annuity Commencement Date." The Guaranteed Lifetime Income Payments will continue for as long as you (or your spouse, if the Spousal
Continuation Option is elected) live.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you decide not
to transition your Contract into the Income Phase by indicating your choice on the Income Phase election form and returning the form to the Service Center, your Contract will terminate and we will make no payments to you.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If we do not receive an Income Phase election form within 90
days of sending it from the Service Center, we will assume you do not intend to transition your Contract into the Income Phase and you wish to terminate your Contract. The Contract Fees that you have paid us, including the fees that you paid during
this 90 day period, will not be refunded. You will not receive any benefits of the Guarantee and will not receive any Guaranteed Lifetime Income Payments from us.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">The Income Phase</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">How much will each Guaranteed Lifetime Income Payment be?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Each Guaranteed Lifetime Income Payment will be the same
amount as your most recent Guaranteed Lifetime Withdrawal Amount. However, your first Guaranteed Lifetime Income Payment will be prorated based on the amount previously withdrawn during the calendar year prior to beginning the Income Phase. No
Additional Deposits and no Guaranteed Lifetime Withdrawals are permitted.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Will the Guaranteed Lifetime Income Payment ever increase or
decrease?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">No. The Guaranteed Lifetime Income Payments
will always be the same amount.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">How often are the
Guaranteed Lifetime Income Payments paid?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Guaranteed
Lifetime Income Payments will be paid to you at the frequency you request on your Income Phase election form.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note:<FONT style="font-weight:Normal;"> Although you elect the
frequency of payment, we reserve the right to decrease the frequency so that each scheduled payment is at least $100.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">How long will the Guaranteed Lifetime Income Payments be
paid?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Once the Guaranteed Lifetime Income Payments
begin, they will continue until the death of the Annuitant (or the Co-Annuitant if the Spousal Continuation Option was elected).</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Terms and Conditions of the Contract</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What does it mean to have a change in "terms and conditions" of
the Contract?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide can change certain terms and
conditions of the Contract after you have purchased the Contract. These terms and conditions are: determination of which Select UMA Models are Eligible Portfolios and changes to the Contract Fee Percentages associated with the Eligible
Portfolios.</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:59pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">24</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_25"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">How will a change to the terms and conditions of the Contract
affect an existing Contract?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If Nationwide changes one
or more terms and conditions of the Contract after it is issued, the change will not apply to your Contract unless you agree to such change. Your acceptance or rejection of any such change will impact the Annual Benefit Base Review which, as of the
effective date of the change of terms and conditions, will no longer be automatic. Rather, in order to take advantage of any Annual Benefit Base Review, you will have to consent to have the Annual Benefit Base Review applied to your Contract. In
other words, in order to receive the benefit associated with the Annual Benefit Base Review, you must also accept the new terms and conditions associated with the Contract. At the time of the terms and conditions change, we will provide you with the
information necessary to make this determination. Specifically, we will provide: Your Account Value; the current Guaranteed Lifetime Withdrawal Base; the current terms and conditions associated with the Contract; and instructions on how to
communicate your election to Nationwide.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you accept
the new terms and conditions associated with the Contract, we will continue with the Annual Benefit Base Review at the time of your next Contract Anniversary.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you refuse to accept the terms and conditions, or we do not
receive your election to accept the terms and conditions change within 60 days after the day we send notification to you (in which case we will assume you do not intend to invoke the Annual Benefit Base Review), the new terms and conditions of the
Contract will not apply to your Contract. Your Guaranteed Lifetime Withdrawal Base will stay at the same value as of the most recent Contract Anniversary and you will no longer have an Annual Benefit Base Review. However, if you submit Additional
Deposits to Your Account, you will receive a dollar for dollar increase to your Guaranteed Lifetime Withdrawal Base. Once you decline a terms and conditions change, you will no longer be permitted to accept any other terms and conditions change or
reinstate your Annual Benefit Base Review.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If we
re-characterize an Eligible Portfolio to a Former Eligible Portfolio, you will be notified of this term and condition change as stated in this section. If you choose to switch to another Eligible Portfolio, you may continue your Annual Benefit Base
Review. If you choose to remain in the Former Eligible Portfolio, you will no longer be permitted to accept any other terms and conditions change or reinstate your Annual Benefit Base Review, and the cost of the Former Eligible Portfolio will remain
the same. If MSSB no longer offers a Former Eligible Portfolio, the terms of the <FONT style="font-style:italic;">Suspension and Termination Provisions</FONT> section will apply.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">During the first two years of the Contract, we guarantee that
the Contract Fee Percentage will not increase from the price that was in effect at the time you purchased the Contract. Other terms and conditions may change upon notice to you as stated above. After your second Contract Anniversary, Contract Fee
Percentage changes are considered a term and condition change. Any Contract Fee Percentage increase will not rise above the maximum Contract Fee Percentage provided in the <FONT style="font-style:italic;">How much will the Contract cost?</FONT> and <FONT
 style="font-style:italic;">The Contract Fee</FONT> sections of this prospectus, and you will be notified of any terms and conditions change according to this <FONT style="font-style:italic;">Terms and Conditions of the Contract</FONT>
section.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Spousal Continuation Option</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What is the Spousal Continuation Option?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Spousal Continuation Option allows, upon your death, your
surviving spouse to continue the Contract and receive all the rights and benefits associated with the Contract, including Guaranteed Lifetime Withdrawals and, possibly, Guaranteed Lifetime Income Payments.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Election of the Spousal Continuation Option.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following conditions apply to Contracts electing the
Spousal Continuation Option:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:9pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">(1)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">The Spousal Continuation
Option must be elected at the time of application, and the younger spouse must be between 45 and 80 and the older spouse must be 84 or younger. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">(2)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">Both spouses (or a revocable
trust of which either or both of the spouses is/are grantor(s)) must be named as owners of Your Account and the Annuitant(s) of Your Contract. For Contracts issued to IRAs and Roth IRAs, you and your spouse must be Co-Annuitants, and the person for
whom the IRA or Roth IRA was established must name their spouse the sole beneficiary of Your Account. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.44%;">(3)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.56%;">If, prior
to the Withdrawal Start Date, your marriage terminates due to divorce, dissolution, or annulment, or a Co-Annuitant dies, we will remove the Spousal Continuation Option from your Contract after you submit to the Service </TD></TR></TABLE> </DIV>
</DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">25</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_26"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.44%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">Center a written request and
evidence of the marriage termination or death that is satisfactory to Nationwide. After removal of the Spousal Continuation Option, we will not charge you the Spousal Continuation Option Fee Percentage. Once the Spousal Continuation Option is
removed from the Contract, the option may not be re-elected or added to cover a subsequent spouse. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">(4)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">If, on or after the
Withdrawal Start Date, your marriage terminates due to divorce, dissolution, or annulment, or a Co-Annuitant dies, you may not remove the Spousal Continuation Option from the Contract. The remaining Owner of the Contract will continue to be charged
the Spousal Continuation Option Fee Percentage, and after the remaining Owner of the contract submits to the Service Center a written request in a form acceptable to Nationwide, the remaining Owner of the Contract's former spouse will no longer be
eligible to receive withdrawals. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">(5)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">For Contracts with
non-natural owners (other than IRAs), one spouse must be the Annuitant and the other spouse must be the Co-Annuitant. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">(6)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">Upon either Co-Annuitant's
death, the surviving spouse must keep Your Account open and comply with all of the requirements of this Contract. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.44%;">(7)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.56%;">If you
enter the Income Phase of the Contract, both you and your spouse must be named primary beneficiaries of the Contract at that time to ensure the Guaranteed Lifetime Income Payments will continue for both lives. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">How much does the Spousal Continuation Option cost?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The maximum Spousal Continuation Option Fee Percentage is
0.30% of your Guaranteed Lifetime Withdrawal Base. Currently, the Spousal Continuation Option Fee Percentage is 0.20% of your Guaranteed Lifetime Withdrawal Base and is assessed in the same manner and at the same time as the Contract Fee. The
Spousal Continuation Fee is in addition to the Contract Fee, resulting in a maximum total of 1.75% and a current total of 1.20%.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Is it possible to pay for the Spousal Continuation Option but
not receive a benefit from it?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">There are situations
where you would not receive the benefit of the Spousal Continuation Option. For example, if on or after the Withdrawal Start Date your spouse dies before you, the benefits associated with the option will not be realized. Also, if withdrawals are
taken after the Withdrawal Start Date and your marriage terminates due to death, divorce, dissolution, or annulment, you may not remove the Spousal Continuation Option from the Contract and you must continue to pay the Spousal Continuation Option
Fee.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">The Contract Fee</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">How much is the Contract Fee?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The maximum Contract Fee Percentage for the Contract is a rate
of 1.45% of the Guaranteed Lifetime Withdrawal Base. The current Contract Fee Percentage is 1.00% of the Guaranteed Lifetime Withdrawal Base. If you choose to elect the Spousal Continuation Option, there is an additional fee (see <FONT
 style="font-style:italic;">How much does the Spousal Continuation Option cost?</FONT>). Once your Contract is issued, the Contract Fee associated with your Contract will not increase, except possibly, if you affirmatively elect the change of any
terms and conditions, or if you have to go to the Minimum Account Value Eligible Portfolio and the Contract Fee Percentage is higher (see <FONT style="font-style:italic;">Terms and Conditions of the Contract</FONT>).</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract Fee is in addition to charges that are imposed in
connection with advisory, custodial, platform and other services, or charges imposed by Investment Products comprising Your Account at MSSB.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We provide a price guarantee during the first two years that
you own the Contract. During this time, your Contract Fee Percentage will not increase above the Contract Fee Percentage that was in place at the date of issuance of the Contract. After your second Contract Anniversary, a change in the Contract Fee
Percentage will be considered a terms and conditions change (see <FONT style="font-style:italic;">Terms and Conditions of the Contract</FONT>).</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Some states and other governmental entities (e.g.,
municipalities) charge premium taxes or similar taxes to Nationwide. Nationwide will not pass these taxes through to the Contract owner.</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:52pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">26</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_27"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">When and how is the Contract Fee assessed?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract Fee is only assessed during the Accumulation and
Withdrawal Phases of the Contract. It is deducted from Your Account on a calendar quarter basis at the beginning of each quarter in the same manner as MSSB's advisory fees for Your Account. The Fee is paid in advance based on the value of the
Guaranteed Lifetime Withdrawal Base as of the last day of the previous calendar quarter. If you make an Additional Deposit or take an Early or Excess Withdrawal during the pre-paid quarter, your Fee will not be impacted for that quarter since the
Fee was paid in advance. The Fee for the following quarter will be impacted because the Guaranteed Lifetime Withdrawal Base will reflect any increase from an Additional Deposit or a decrease from an Early or Excess Withdrawal.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract Fee Percentage is assessed at the beginning of
the quarter because it corresponds with MSSB's billing, and the quarterly billing will have no other impact other than to reduce Your Account Value. The Contract Fee will be deducted by MSSB and remitted to us. To facilitate this, you must sign the
Client Agreement allowing MSSB to deduct the Fee from Your Account. The sale or transfer of investments in Your Account to pay the Contract Fee will not reduce your Guaranteed Lifetime Withdrawal Base, but will reduce Your Account Value.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For example:</DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:82.16%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:62.54%;">
<DIV style="float:left;">Contract Fee
Percentage:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.70%;">1.00%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:62.54%;">
<DIV style="float:left;">Number of days in calendar
quarter:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:36.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.70%;">90
 </TD></TR>
<TR style="height:12pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:62.54%;">
<DIV style="float:left;">Number of days in the calendar
year:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:31.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.70%;">365
 </TD></TR>
<TR bgcolor="#DEE9F6" style="height:22pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:62.54%;">
<DIV style="float:left;">Guaranteed Lifetime Withdrawal Base</DIV><BR> <DIV style="float:left;">(as of the end of the previous
quarter):</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:11.70%;">$
<FONT style="padding-left:2.5pt;"></FONT>500,000 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:62.54%;">
<DIV style="float:left;">Contract Fee Calculation:</DIV><BR> <DIV style="float:left;">$500,000 x [1.00% x (90 &#247; 365)]
=</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:11.70%;">$1,232.87
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If your Contract is issued in the
middle of a quarter, we will prorate your Contract Fee for that quarter. Thereafter, the Fee for the next calendar quarter will be calculated based on the Guaranteed Lifetime Withdrawal Base as of the end of the prior calendar quarter. If you
terminate your Contract in the middle of a quarter, we will prorate that quarter's Fee and will return the remainder to you.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We will allow you the flexibility to pay the Fees in ways
other than through a deduction from Your Account consistent with your Client Agreement.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Will the Contract Fee be the same amount from quarter to
quarter?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Since the Fee is based on your Guaranteed
Lifetime Withdrawal Base at the end of the previous quarter, any time the Guaranteed Lifetime Withdrawal Base increases (via Additional Deposits or the Annual Benefit Base Review) so does the amount of the Fee for the next quarter. Likewise, any
time the Guaranteed Lifetime Withdrawal Base decreases (via Early Withdrawals or Excess Withdrawals), so does the amount of the Fee for the next quarter. Additionally, if you elect an Annual Benefit Base Review when a higher or lower Contract Fee
Percentage is in effect, the dollar amount of your Contract Fee will increase or decrease accordingly. Thus, the only way the dollar amount of your Contract Fee will remain the same is if your Guaranteed Lifetime Withdrawal Base and the Contract Fee
Percentage associated with your Contract stays the same.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Will advisory and other fees impact the Account Value and the
Guarantee under the Contract?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">They might. The provisions
of your Contract currently allow for a "Withdrawal Exception" whereby withdrawals up to a certain amount can be deducted from Your Account each calendar quarter to pay for MSSB's advisory and other service fees associated with Your Account without
being considered Early Withdrawals/Excess Withdrawals, as applicable. Currently, the maximum amount of the Withdrawal Exception is a total of 3.00% of Your Account Value each calendar year.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If MSSB's actual fees for advice and other services exceed
3.00% of Your Account Value, and you withdraw the entire fee amount from Your Account, the amount withdrawn above the 3.00% limit will be considered an Early Withdrawal/Excess Withdrawal, as applicable, and will reduce your Guaranteed Lifetime
Withdrawal Base. This means that if you have not yet reached your Withdrawal Start Date and you exceed the Withdrawal Exception, you will have an Early Withdrawal. If you have reached your Withdrawal Start Date and you exceed the Withdrawal
Exception, you will have an Excess Withdrawal if you also take the full Guaranteed Lifetime Withdrawal Amount for that year. Both Early Withdrawals and Excess Withdrawals reduce your Guaranteed Lifetime Withdrawal Base.</DIV> </DIV>
<DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">27</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_28"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Managing Withdrawals from Your Account</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">There are many factors that will influence your decision of
when to take withdrawals from Your Account and in what amount. No two investors' situations will be exactly the same. You should carefully weigh your decision to take withdrawals from Your Account, the timing of the withdrawals, and the amounts. You
should consult with your Financial Advisor and a tax advisor. In addition to the advice you may receive from your advisor, here are a few things to consider:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:4.44%;margin-top:6pt;width:93.35%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-bottom:5pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:9.00%;">First:
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:5pt;padding-left:6pt;padding-right:24pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:89.81%;">Early
 Withdrawals and Excess Withdrawals will reduce your Guaranteed Lifetime Withdrawal Base. The reduction may be substantial, especially if Your Account Value is significantly lower than it was when the Guaranteed Lifetime Withdrawal Base was last
computed or adjusted. </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.00%;">Second:
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:3pt;padding-left:6pt;padding-right:24pt;padding-top:5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:89.81%;">Once
 you are ready to begin taking withdrawals of the Guaranteed Lifetime Withdrawal Amount from Your Account, consider setting up a quarterly, monthly or other systematic withdrawal program. Doing so may help limit the risk that you will make an Excess
Withdrawal. </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:548pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">28</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_29"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:4.44%;margin-top:0pt;width:93.35%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-bottom:5pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:9.00%;">Third:
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:5pt;padding-left:6pt;padding-right:24pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:89.81%;">Consider
 the timing of your withdrawals. Because your Guaranteed Lifetime Withdrawal Base can increase on your Contract Anniversary via the automatic Annual Benefit Base Review, the higher Your Account Value is on your Contract Anniversary, the more likely
you will be to receive an increase in your Guaranteed Lifetime Withdrawal Base. You might have a higher Guaranteed Lifetime Withdrawal Base if you defer withdrawals until after your Contract Anniversary. </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:9.00%;">Fourth:
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:3pt;padding-left:6pt;padding-right:24pt;padding-top:5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:89.81%;">Consider
 that the longer you wait to begin taking withdrawals of the Guaranteed Lifetime Withdrawal Amount, the less likely it is that you will receive any Guaranteed Lifetime Income Payments. Taking withdrawals reduces Your Account Value. If you wait to
begin taking withdrawals, you are likely to reach the Minimum Account Value later in your life, and at the same time, your remaining life expectancy will be shorter. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Death Provisions</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The treatment of the Contract upon the death of an Annuitant
depends on a number of factors. Those include whether the Contract Owner is a natural or non-natural person, whether there is a Co-Annuitant, and whether the Contract is in the Accumulation or Withdrawal Phase or the Income Phase.</DIV>
<DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:4pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:12.20%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:4pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:15.53%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:4pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">Annuitant's
 Death in Accumulation or Withdrawal Phase </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">Annuitant's
 Death in Income Phase </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:4pt;padding-left:3pt;padding-right:6pt;padding-top:4pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:12.20%;" rowspan="2">Sole
<BR> Contract<BR> Owner </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt; padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:15.53%;">Sole
 Annuitant<BR> (no Spousal Continuation Option) </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt; padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">The
 Contract terminates and we will make no payments under the Contract. We will return that portion of the current quarter's Contract Fee attributable to the time period between your death and the end of the current calendar quarter. </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:3pt;padding-top:4pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">We
 will calculate the remaining amount of transferred Account Value that has not yet been paid to you in the form of Guaranteed Lifetime Income Payments. We will make payments to your beneficiary in the same frequency as the Withdrawal Phase in the
amount equal to your Guaranteed Lifetime Withdrawals until that amount has been paid. If all remaining transferred Account Value has already been paid to you at the time of your death in the form of Guaranteed Lifetime Income Payments, we will make
no further payments. </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:15.53%;">Co-Annuitants
 (spouses with the Spousal Continuation Option) </TD>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">If
 the Contract Owner/Co-Annuitant of the Contract dies, the Contract will continue with the surviving Co-Annuitant as the sole Contract Owner and sole Annuitant. </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:15pt;padding-right:3pt;padding-top:4pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:top;width:36.04%;">&#8226;&#8194;If
 the Contract Owner/Co-Annuitant of the Contract dies, we will continue to make Guaranteed Lifetime Income Payments to the surviving Contract Owner/Co-Annuitant for the duration of his or her lifetime.<BR> &#8226;&#8194;Upon the surviving Contract
Owner/Co-Annuitant's death, we will calculate the remaining amount of transferred Account Value that has not yet been paid in the form of Guaranteed Lifetime Income Payments. We will make payments to your beneficiary in the same frequency as the
Withdrawal Phase in the amount equal to the Guaranteed Lifetime Withdrawals until that amount has been paid. </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:160pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">29</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_30"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:0pt;width:100%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:4pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:12.20%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;padding-bottom:4pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:15.53%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:4pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">Annuitant's
 Death in Accumulation or Withdrawal Phase </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:3pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">Annuitant's
 Death in Income Phase </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:4pt;padding-left:3pt; padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:12.20%;" rowspan="3">Joint
 Contract Owners (spouses) </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt; padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:15.53%;" rowspan="2">Sole
 Annuitant (no Spousal Continuation Option) </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt; padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">If
 a Joint Owner <FONT style="font-style:italic;">who is the Annuitant</FONT> dies, the Contract terminates and we will make no payments under the Contract. We will return that portion of the current quarter's Contract Fee attributable to the time
period between your death and the end of the current calendar quarter. </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:3pt;padding-top:4pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">If
 a Joint Owner who is the Annuitant dies, we will calculate the remaining amount of transferred Account Value that has not yet been paid to you in the form of Guaranteed Lifetime Income Payments. We will make payments to your beneficiary in the same
frequency as the Withdrawal Phase in the amount equal to your Guaranteed Lifetime Withdrawals until that amount has been paid. If all remaining transferred Account Value has already been paid to you at the time of your death in the form of
Guaranteed Lifetime Income Payments, we will make no further payments. </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt; padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">If
 a Joint Owner <FONT style="font-style:italic;">who is not the Annuitant</FONT> dies, the Contract will continue with the surviving Joint Owner/Annuitant as the sole Contract Owner. </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:3pt;padding-top:4pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">If
 a Joint Owner who is not the Annuitant dies, the Contract will continue with the surviving Joint Owner/Annuitant as the sole Contract Owner receiving Guaranteed Lifetime Income Payments. </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:15.53%;">Co-Annuitants
 (spouses with the Spousal Continuation Option) </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:36.04%;">If
 a Joint Owner/Co-Annuitant dies, the Contract will continue with the surviving Joint Owner/Co-Annuitant as the sole Contract Owner and sole Annuitant. </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:15pt;padding-right:3pt;padding-top:4pt; text-align:left;text-decoration:none;text-indent:-9pt;text-transform:none;vertical-align:top;width:36.04%;">&#8226;&#8194;If
 a Joint Owner/Co-Annuitant dies, we will continue to make Guaranteed Lifetime Income Payments to the surviving Joint Owner/Co-Annuitant for the duration of his or her lifetime.<BR> &#8226;&#8194;Upon the surviving Joint Owner/Co-Annuitant's death,
we will calculate the remaining amount of transferred Account Value that has not yet been paid in the form of Guaranteed Lifetime Income Payments. We will make payments to your beneficiary in the same frequency as the Withdrawal Phase in the amount
equal to the Guaranteed Lifetime Withdrawals until that amount has been paid. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Marriage Termination Provisions</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In the event of a divorce, dissolution or annulment whose
decree or other agreement affects a Contract, we will require written notice in a manner acceptable to us.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Marriage termination in the Accumulation or Withdrawal
Phases.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If the marriage terminates during the
Accumulation or Withdrawal Phase and you did not elect the Spousal Continuation Option:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">If you remain the sole owner
of Your Account, there will be no change to the Contract. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">If your former spouse
becomes the sole owner of Your Account, the Contract will be issued as a new Contract, with a new Guaranteed Lifetime Withdrawal Base (calculated as of the date the new Contract is issued) with your former spouse as Contract Owner and Annuitant, and
the Contract will terminate upon the death of the Annuitant. Alternately, the former spouse may elect to terminate the Contract. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">If Your
Account is divided between you and your former spouse, the Contract will be reissued as two Contracts (one to each of the former spouses). The Guarantee will not carry over and a new Guaranteed Lifetime Withdrawal Base will be established based on
the value of each new account as of the date the new Contracts are issued. Each former spouse will be the named Contract Owner and Annuitant of their respective reissued Contract, and each Contract will terminate upon the death of the respective
Annuitant. Alternately, each former spouse may elect to terminate their respective Contract. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If the marriage terminates during the Accumulation or
Withdrawal Phases and you elected the Spousal Continuation Option:</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">30</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_31"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">If Your Account is taken
over solely by one of the Joint Owners (the "Receiving Joint Owner"), the Receiving Joint Owner may elect whether to have the Contract reissued with him/her as the sole Contract Owner and Annuitant, or continue the Contract with both former spouses
remaining as Joint Owners and the Receiving Joint Owner as the annuitant. In either situation, the Contract will terminate upon the death of the Annuitant. Alternately, the Receiving Joint Owner may elect to terminate the Contract. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">If Your
Account is divided between the Joint Owners (the former spouses), the Contract will be reissued as two Contracts (one to each of the former spouses), with the contractual Guarantee divided in proportion to the division of the assets in Your Account
and a new Guaranteed Lifetime Withdrawal Base will be established for each Contract based on the value of each account as of the date the new Contracts are issued. The Joint Owners may remain as Joint Owners on each reissued Contract, with one
former spouse named as Annuitant on each of the Contracts, or each may become the sole Contract Owner and Annuitant on their respective reissued Contract. In either situation, the Contract will terminate upon the death of the Annuitant. Alternately,
each former spouse may elect to terminate their respective Contract. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Marriage termination in the Income Phase.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If, during the Income Phase, the marriage terminates, the
Contract will not be reissued. We will make Guaranteed Lifetime Income Payments to one or more payees as set forth in the relevant decree, order, or judgment.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Contract Owners should consult with their own advisors to
assess the tax consequences associated with these marriage termination provisions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Suspension and Termination Provisions</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Suspension and termination provisions only apply during the
Accumulation and Withdrawal Phases of the Contract.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What
does it mean to have a suspended Contract?</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Contract
suspension will not otherwise change or suspend the calculation of the benefits or charges under your Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you do not cure the suspension of your Contract, we will
terminate your Contract, which will eliminate the Guarantee. You will not receive any benefits of the Guarantee and will not receive any Guaranteed Lifetime Income Payments from us.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What will cause a Contract to be suspended?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">There are several events that can cause a Contract to be
suspended. Some of them are within your control; some are not. We reserve the right to suspend the Contract if any of the following events occur:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">You do not comply with any
provision of this prospectus, including, but not limited to, the requirement that you maintain Your Account at MSSB and invest the assets as required by an Eligible Portfolio or a Former Eligible Portfolio, and the requirement that you execute an
agreement that provides for the deduction and remittance of the Contract Fee; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Your Account Value falls
below the Minimum Account Value; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">MSSB no longer manages any
Eligible Portfolios or Former Eligible Portfolios; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">You make
an Additional Deposit to Your Account when Your Account already exceeds $2,000,000 in Total Gross Deposits, or you make an Additional Deposit to Your Account that causes Your Account to exceed $2,000,000 in Total Gross Deposits. </TD></TR></TABLE>
</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If one of the suspension events occurs, we will provide
you with a suspension notice indicating what exactly is triggering the suspension and when the termination will occur. The purpose of this notice is to give you the opportunity to cure the issue that has triggered the suspension. You will have 45
days to correct the suspension event. If you correct the issue within 45 days in a manner acceptable to us, the termination will not take effect.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What can be done to take the Contract out of suspension?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The notice will indicate that there is a specific suspension
period, during which you will have the ability to preserve the Guarantee associated with your Contract. The notice will contain a description of one or more actions you can take to take the Contract out of suspension and avoid termination.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you do not or cannot cure the issue causing the suspension
by the end of the suspension period, your Contract will terminate on the date indicated in the notice.</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">31</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_32"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Specific suspension events and their cures.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Your Account Value falls to the Minimum Account Value before the
Withdrawal Start Date.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If Your Account Value falls below
the Minimum Account Value before your Withdrawal Start Date, your Contract will be suspended. The suspension notification will indicate that you must elect one of three options for the Contract:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:9pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">1.
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">Make Additional Deposits to
Your Account to bring Your Account Value above the Minimum Account Value; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.44%;">2.
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.56%; ">Transfer Your Account Value
to the Minimum Account Value Eligible Portfolio. The Minimum Account Value Eligible Portfolio is only available to Contract Owners whose Account Value falls below the Minimum Account Value before the Withdrawal Start Date; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.44%;">3.
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.56%;">Terminate
the Contract. </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you choose to
invest in the Minimum Account Value Eligible Portfolio under these circumstances, Your Account Value must remain allocated to the Minimum Account Value Eligible Portfolio until your Withdrawal Start Date, at which time Your Account will transition
to the Income Phase, as discussed in the <FONT style="font-style:italic;">Triggering the Income Phase</FONT> section.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Minimum Account Value Eligible Portfolio currently
available with a Contract Fee Percentage of 1.00% is:</DIV> <DIV style="text-align:center;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-left:0.5pt solid #000000;border-right:0.5pt solid #000000;border-top:0.5pt solid #000000;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:99.45%;" cellpadding="0" cellspacing="0">

<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Eligible
 Portfolio </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">Target
 Allocations </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:84.50%;" colspan="6">U.S.
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;" rowspan="2">Minimum
<BR> Account Value<BR> Eligible Portfolio </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Large Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Mid Cap<BR> Growth Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">U.S.
 Small Cap<BR> Value Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Small Cap<BR> Growth Equity </TD></TR>
<TR style="height:12pt;">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:12.41%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.30%;" rowspan="2">Composition
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">International
 Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.84%;" colspan="2">U.S.
 Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">Cash
 </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Developed
<BR> International<BR> Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Emerging
<BR> Markets Equity </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 Core Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">U.S.
 High Yield<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">International
<BR> Fixed Income </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt; padding-right:3pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">Cash/U.S.
 Short<BR> Duration Bond </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.30%;">100%
 Fixed </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.42%;">0%
 </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">40
 - 60% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">0
 - 20% </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.41%;">5
 - 25% </TD>
<TD style="border-bottom:0.5pt solid #000000;padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.01%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt; padding-right:3pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.42%;">20
 - 40% </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Strategy:<FONT style="font-style:Normal;"> Fixed Income- An all fixed income model for a most conservative investor that seeks conservative risk investments with minimal market volatility. In order to accommodate a lower account value, the
portfolio is only comprised of exchange traded funds (ETFs) which have lower minimum investment requirements.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Objective:<FONT style="font-style:Normal;"> The investment objective for this Model has a primary emphasis on capital preservation. This Model is classified to have low volatility. It is most suitable for an investor that is comfortable with
minimal fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Investment
 Risk:<FONT style="font-style:Normal;"> Fixed income is historically considered less risky than equities. The Minimum Account Value Eligible Portfolio has 100% of the assets in fixed income or cash. Therefore, of all of the Eligible Portfolios, this
portfolio provides the most conservative investment risk.</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:italic;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">Benchmark:
<FONT style="font-style:Normal;"> 70% BC Aggregate Bond (U.S. Fixed Income)/30% 90-Day T-Bills (Cash)</FONT> </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR>
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">For
 a summary of the asset categories and benchmark indices, please refer to the Eligible Portfolios summary earlier in the prospectus. </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="border-right:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:3pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:97.80%;" colspan="7">If
 you do not notify us of your election by the end of the suspension period, we will assume that you intend to terminate the Contract. </TD>
<TD style="padding-bottom:3pt;padding-right:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.01%;">&#160; </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">MSSB no longer manages any Eligible Portfolios or Former
Eligible Portfolios.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If MSSB no longer manages any
Eligible Portfolios or Former Eligible Portfolios, and Nationwide no longer partners with MSSB, we reserve the right to suspend the Contract. The only way to cure this suspension (to preserve your Guarantee under the Contract) is to transfer Your
Account Value to a third party account approved by us or to an annuity contract that we, or one of our affiliates, offer.</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">If you decide to transfer to
a third party account approved by us, please keep in mind the following: </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:36pt;margin-top:9pt;width:93.35%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">The charges for those
products may be higher than the Contract Fee Percentage assessed in connection with your Contract; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">You will not be charged any
transfer fees by us other than the termination fees imposed by your custodian consistent with your custodial agreement; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.01%;">The value
transferred for the Guarantee will be equal to the Guaranteed Lifetime Withdrawal Base on the Valuation Day of the transfer (a Valuation Day is any day the New York Stock Exchange is open for trading). </TD></TR></TABLE> </DIV> </DIV>
<DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">32</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_33"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">If you decide to transfer
Your Account Value to an annuity contract that we, or one of our affiliates, offer, the amount transferred to the new annuity contract will be equal to the value of Your Account on the Valuation Day of the transfer, and the basis for your Guarantee
will be equal to the Guaranteed Lifetime Withdrawal Base on the Valuation Day of the transfer. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">If you
choose not to transfer Your Account Value, or fail to transfer Your Account Value before the end of the suspension period, the Contract and the Guarantee will terminate. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Additional Deposits that exceed $2,000,000 in Total Gross
Deposits</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We must manage the risk that your Guaranteed
Lifetime Payments may become too large for us to guarantee. While we do not manage Your Account, we maintain sole discretion as to how high your Guaranteed Lifetime Withdrawal Base may increase. Therefore, we reserve the right to refuse to accept an
Additional Deposit made into Your Account for your Guaranteed Lifetime Withdrawal Base that brings your Total Gross Deposits above $2,000,000. Our decision to accept your Additional Deposit for your Guaranteed Lifetime Withdrawal Base will be based
on one or more factors, including but not limited to: age, spouse age (if applicable), Annuitant age, state of issue, total Account Value, election of the Spousal Continuation Option, current market conditions, and current hedging costs. All such
decisions will be based on internally established actuarial guidelines and will be applied in a nondiscriminatory manner. Note: If you have more than one MSSB account with this Guarantee, the $2,000,000 limit in Total Gross Deposits applies to the
aggregate account value of Your Accounts.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Since you will
not independently be able to make the determination as to whether an Additional Deposit will be accepted for your Guaranteed Lifetime Withdrawal Base, you and your Financial Advisor should contact the Service Center prior to making any Additional
Deposit that you suspect may exceed $2,000,000 in Total Gross Deposits. We will assist you in determining whether your Additional Deposit will be accepted for your Guaranteed Lifetime Withdrawal Base calculation. This pre-deposit inquiry prevents an
inadvertent suspension of your Contract, because submitting Additional Deposits that exceed the $2,000,000 in Total Gross Deposits limit without Nationwide's prior approval will suspend your Contact, which could lead to Contract termination.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">More specifically, the following scenarios apply to the
Contract:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Pre-Deposit Inquiry.<FONT
 style="font-weight:Normal;"> If you contact us before you submit an Additional Deposit that you know or suspect will exceed the $2,000,000 in Total Gross Deposits limit, we will perform an analysis and make a determination as to whether we will
accept the Additional Deposit for your Guaranteed Lifetime Withdrawal Base. We will notify you of our determination within a reasonable time.</FONT> </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:4.29%;margin-top:0pt;width:93.35%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">If we permit the application
of all or a portion of an Additional Deposit to the Guaranteed Lifetime Withdrawal Base calculation, that amount will be reflected in your Guaranteed Lifetime Withdrawal Base at the time you deposit the Additional Deposit to Your Account, provided
such deposit is made within 5 days of our notification of approval and provided that such deposit does not exceed the amount evaluated in the pre-deposit inquiry. If you make such Additional Deposit after the expiration of the permitted time period,
or it is for an amount greater than that submitted in the pre-deposit inquiry, we will treat the Additional Deposit as if no pre-deposit inquiry was made (see "No Pre-Deposit Inquiry" below) and will immediately suspend your Contract. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.01%;">If we
exercise our right to refuse to accept all or a portion of an Additional Deposit for the Guaranteed Lifetime Withdrawal Base (and you have not made the Additional Deposit), we will not suspend your Contract. If however, you proceed to make the
Additional Deposit after our notification of our refusal to accept the Additional Deposit for your Guaranteed Lifetime Withdrawal Base, we will treat the Additional Deposit as if no pre-deposit inquiry was made (see "No Pre-Deposit Inquiry" below)
and will immediately suspend your Contract. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:20pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">No Pre-Deposit Inquiry.<FONT
 style="font-weight:Normal;"> If you do not contact us before you submit an Additional Deposit that causes Your Account to exceed the $2,000,000 in Total Gross Deposits limit, we will immediately suspend your Contract. We will notify you of the
suspension and the reason for the suspension. Then, we will perform an analysis and make a determination as to whether we will accept the Additional Deposit for your Guaranteed Lifetime Withdrawal Base. We will notify you of our determination within
a reasonable time during the suspension period. Note: In the event of multiple Additional Deposits that cause Total Gross Deposits to exceed $2,000,000, each deposit will have its own suspension period and review determination. Multiple Additional
Deposits will be evaluated in the order they are deposited.</FONT> </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:36pt;margin-top:0pt;width:93.35%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">If we permit the application
of all or a portion of an Additional Deposit to the Guaranteed Lifetime Withdrawal Base calculation, that amount will be reflected in your Guaranteed Lifetime Withdrawal Base as of the date you deposited the Additional Deposit to Your Account and we
will immediately remove the Contract's suspension. We will notify you that the suspension has been removed. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.01%;">If we
exercise our right to refuse to accept all or a portion of an Additional Deposit for the Guaranteed Lifetime Withdrawal Base, your Contract will continue to be suspended (as of the date of the Additional Deposit). We </TD></TR></TABLE> </DIV> </DIV>
<DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">33</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_34"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:6.65%;margin-top:0pt;width:93.35%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.17%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.83%; ">will notify you and your
Financial Advisor immediately of the Contract's suspended status and will request that you remove the Additional Deposit(s) from Your Account. The notification will indicate that the Contract will remain suspended until you remove the Additional
Deposit(s) that caused your Total Gross Deposits to exceed $2,000,000 from Your Account, and that <FONT style="font-weight:bold;">if you do not withdraw the necessary amount from Your Account before the end of the suspension period, the Contract
will terminate and you will not be eligible for any of the benefits associated with the Contract.</FONT> During the suspension period, any withdrawal will not constitute an Early Withdrawal or an Excess Withdrawal. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">What will cause a Contract to be terminated?</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you fail to cure the cause of a Contract suspension within
45 days, your Contract will terminate. We will provide you with a pre-termination notice indicating what exactly has triggered the termination and when the termination will be effective. The purpose of this pre-termination notice is to give you the
opportunity to either cure the issue that has triggered the termination, or to preserve your Guarantee under the Contract by transferring Your Account Value to a third party account approved by us or to an annuity contract we, or one of our
affiliates, offer. If you cure the issue before the termination date in a manner acceptable to us, the termination will not take effect.</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">If you decide to transfer to
a third party account approved by us, please keep in mind the following: </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:4.29%;margin-top:0pt;width:93.35%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">The charges for those
products may be higher than the Contract Fee Percentage assessed in connection with your Contract; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">You will not be charged any
transfer fees by us other than the termination fees imposed by your custodian consistent with your custodial agreement; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.01%;">The value
transferred for the Guarantee will be equal to the Guaranteed Lifetime Withdrawal Base on the Valuation Day of the transfer. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:20pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">If you decide to transfer
Your Account Value to an annuity contract that we, or one of our affiliates, offer, the amount transferred to the new annuity contract will be equal to the value of Your Account on the Valuation Day of the transfer, and the basis for your Guarantee
will be equal to the Guaranteed Lifetime Withdrawal Base on the Valuation Day of the transfer. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you do not cure the issue within the termination cure
period, or if you fail to transfer Your Account Value before the end of the termination cure period, the Contract and the Guarantee will terminate. If the Contract does terminate, we will provide you with written notification of the Contract's
termination.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Federal Income Tax Considerations</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following discussion is based on our understanding of
current United States federal income tax laws. It is a general discussion and does not address all possible circumstances that may be relevant to the tax treatment of a particular Contract Owner. This discussion does not address the tax treatment of
transactions involving the investment assets held in Your Account, except to the extent that they may be affected by ownership of the Contract. This discussion does not address matters relating to federal estate and gift tax consequences, or state
and local income, estate, inheritance, or other tax consequences of ownership of a Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">This Contract is a new and innovative product. The IRS has not
yet addressed the tax consequences of ownership of, or distributions from, the Contract (or products similar to the Contract) in any formal ruling or other type of guidance that may be used or cited as precedent. It is possible that the IRS could
attempt to apply rules different than the ones described below to the taxation of the distributions from the Contract and/or for transactions taking place within Your Account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract is in form an annuity contract, and we intend to
treat the Contract as an annuity for federal income tax purposes. The Contract will be paid for by periodic payments to Nationwide in exchange for a promise to make periodic payments upon the occurrence of certain events, which payments will cease
upon death, with the express purpose of providing long-term income security. Consequently, we intend to report taxable income under the Contract to you consistent with the rules applicable to annuity contracts, and the payments will be treated as
being annuity payments made after the annuity starting date. We can give no assurances that the IRS will agree with our interpretation regarding the proper tax treatment of the Contract, or the tax implications to the investments in Your Account
that may arise by reason of the Contract, or that a Court would agree with our interpretation if the IRS were to challenge such tax treatments.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Except as provided in the
<FONT style="font-style:italic;">Death Provisions</FONT> section, we will make no Guaranteed Lifetime Income Payments to your beneficiary. We will not return any fees except for the portion of the current quarter's Fees paid in advance.</DIV> </DIV>
<DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">34</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_35"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Because this is a new and innovative product, there are no
binding authorities directly addressing the taxation of distributions from the Contract, or how ownership of the Contract may affect the taxation of transactions within Your Account. Any relevant authorities are susceptible to numerous
interpretations, some of which may cause the IRS to disagree with our interpretations. If the IRS were to successfully challenge the tax treatment described herein, it could have a material and adverse effect on the tax consequences of the
acquisition, owning, and disposition of investments in Your Account. In addition, it is possible that, due to changes in your circumstances in future years, the tax consequences under the qualified dividend and straddle rule could change. For
example, losses may be realized when it has become likely that the value of Your Account has been reduced to the greater of $10,000 or your Guaranteed Lifetime Withdrawal Amount. You should consult with your own tax advisors regarding the potential
tax implications of purchasing and/or owning a Contract, based on your individual circumstances.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Tax consequences with respect to Your Account and/or your
Contract may also be adversely affected by future changes in the tax law.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The IRS addressed arrangements that are similar to the
Contract in Private Letter Rulings 200939018, 200949007, 200949036, 201001016, and 201105004. Pursuant to &#167;6110(k)(3) of the Internal Revenue Code, private letter rulings may not be used or cited as precedent, and therefore cannot be relied
upon as authoritative rulings by the IRS. With respect to the arrangements described in those private letter rulings, the IRS concluded that: (a) the annuity contract would be treated as an annuity within the meaning of &#167;72 of the Internal
Revenue Code; (b) the annuity would not create a right of reimbursement for losses realized on account assets for purposes of &#167;165 and therefore would not prevent a current deduction for such losses; (c) the annuity would not be treated as
diminishing the account owner's risk of loss on account assets for purposes of applying the holding period requirements of &#167;1(h)(11); and (d) the annuity contract and the account assets would not, either at the time of the issuance of the
contract or subsequently, be viewed as components of a straddle within the meaning of &#167;1092.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">THE FOLLOWING GENERAL DISCUSSION IS BASED ON THE ASSUMPTION
THAT THE CONTRACT WILL BE TREATED AS AN ANNUITY FOR INCOME TAX PURPOSES.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Taxation of Distributions from the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If and when you begin the Income Phase, any Guaranteed
Lifetime Income Payments made from the Contract are expected to be substantially equal periodic payments, paid no less frequently than annually, and are to be paid while the Annuitant is living (or, if the Spousal Continuation Option is elected,
while either Co-Annuitant is living), and will terminate upon the death of the Annuitant (or, if the Spousal Continuation Option is elected, upon the death of the surviving Co-Annuitant). For federal income tax purposes, Guaranteed Lifetime Income
Payments should be treated as amounts received as an annuity, and should be taxed in accordance with the rules applicable to annuity payments. As amounts received as an annuity, the portion of these payments that is allocable to income should be
taxable to you as ordinary income, and the portion of the payments that is allocable to your after tax payments of premiums for the Contract, or basis, should be treated as the nontaxable return of basis. The amount excludable from each Guaranteed
Lifetime Withdrawal in the Income Phase will be determined by the following calculation:</DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:88.91%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:10.40%;" rowspan="2">Excludable
<BR> Amount </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.59%;" rowspan="2">=
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:12.36%;" rowspan="2">Guaranteed
<BR> Lifetime<BR> Withdrawal </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.74%;" rowspan="2">X
 </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:68.67%;">Contract
 Owner's investment in the Contract </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:9pt;padding-left:6pt;padding-top:4.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:68.67%;">the
 expected total amount of Guaranteed Lifetime Income<BR> Payments over the life of the Contract* </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:2.77%;">*
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">The "expected total amount of
the Guaranteed Lifetime Income Payments over the life of the Contract" is equal to the amount of one Guaranteed Lifetime Withdrawal payment multiplied by a factor that is determined by your life expectancy. The life expectancy factor tables appear
in Treasury Regulation 1.72-9. </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The
maximum amount excludable from income is the investment in the Contract; once the entire after-tax investment in the Contract is recovered, all Guaranteed Lifetime Income Payments would be fully includable in income. If payments cease by reason of
the death of an Annuitant before the after-tax basis has been fully recovered through Guaranteed Lifetime Income Payments, such unrecovered amounts should be allowable as an income tax deduction in the Contract Owner's last taxable year.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We anticipate that the investment in the Contract will be
equal to all amounts paid to us from Your Account. However, it is possible that the IRS could take the position that a portion or all of such payments are nondeductible expenses that are not includible in your investment in the Contract.</DIV>
</DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:28pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">35</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_36"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Taxation of Eligible Portfolios or Former Eligible Portfolios
that are not held by an Individual Retirement Account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We believe that in both form and substance the Contract is an
annuity for income tax purposes and should be taxed in accordance with the rules applicable to annuities. Similarly, we believe that transactions (such as sales, redemptions, exchanges, distributions, etc.) involving the investments in the Eligible
Portfolios or Former Eligible Portfolios should receive the same income tax treatment as would be accorded them in the absence of the Contract. The taxation of such transactions is outside the scope of this prospectus, and you should consult with
your advisors regarding any matters relating to transactions within Your Account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The sale of any assets in Your Account in order to pay the
Contract Fee for your Contract will be a taxable event, in the same manner as if the assets were sold for any other purpose. Payments of the Contract Fee for your Contract are not on a tax-free basis and are not deductible.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Although the question is not completely free of doubt, we
believe that the Eligible Portfolios or Former Eligible Portfolios will not be subject to the "straddle" rules by reason of owning the Contract. The IRS defines straddle as offsetting positions in actively traded personal property. Positions are
considered "offsetting" if holding one position substantially diminishes the risk of loss on another position held by a taxpayer. If the straddle rules were to apply to the Eligible Portfolios or Former Eligible Portfolios, the holding period for
determining whether the sale of an asset qualifies for long-term capital gain treatment would be suspended, and recognition of losses from the sale of investments could be deferred. To date, there have been no binding published authorities on this
matter, and the IRS may seek to impose the straddle tax rules to your Eligible Portfolio or Former Eligible Portfolio, which could result in adverse tax consequences (such as the deferral of the income tax deduction for losses incurred in Your
Account) to you.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Additional Medicare Tax.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Effective January 1, 2013, Section 1411 of
the Internal Revenue Code imposes a surtax of 3.8% on certain net investment income received by individuals and certain trusts and estates. The surtax is imposed on the lesser of (a) net investment income or (b) the excess of the modified adjusted
gross income over a threshold amount. For individuals, the threshold amount is $250,000 (married filing jointly, or qualifying widow(er) with dependent child); $125,000 (married filing separately); or $200,000 (single, or head of household (with
qualifying person)). The threshold for an estate or trust that is subject to the surtax is generally equal to the dollar amount at which the highest tax bracket under Internal Revenue Code Section 1(e) begins for the taxable year. For 2014, that
amount is $12,300.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Modified adjusted gross income is
equal to gross income with several modifications. Consult with a qualified tax advisor regarding how to determine modified adjusted gross income for purposes of determining the applicability of the surtax.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Net investment income includes, but is not limited to,
interest, dividends, capital gains, rent and royalty income, and income from nonqualified annuities. It may include taxable distributions from, and gain from the sale or surrenders of, life insurance contracts. Net investment income does not
include, among other things, distributions from certain qualified plans (such as IRAs, Roth IRAs, and plans described in Internal Revenue Code Sections 401(a), 401(k), 403(a), 403(b) or 457(b)); however, such distributions, to the extent that they
are includible in income for federal income tax purposes, are includible in modified adjusted gross income.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The foregoing discussion concerns the surtax's potential
impact to the Contract which we believe is an annuity for income tax purposes and should be taxed in accordance with rules applicable to annuities. This discussion is not intended to address the surtax's impact on the investments in the Eligible
Portfolios or Former Eligible Portfolios. You should consult with your advisors regarding the impact of the tax on the assets in Your Account.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Same-Sex Marriages, Domestic Partnership and Other Similar
Relationships.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In US v. Windsor, the United States
Supreme Court declared Section 3 of the Defense of Marriage Act to be unconstitutional and concluded that same sex marriages, in the states that recognize them, are to be accorded the same federal benefits, rights and obligations as other marriages
recognized by that state.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Revenue Ruling 2013-17
declared that the terms "spouse". "husband and wife", "husband" and "wife" do not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal
relationship recognized under state law that is not denominated as a marriage under the</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:30pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">36</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_37"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">laws of that state. Therefore, the favorable income-deferral options afforded
by federal tax law to married spouse under Code Sections 72 and 401(a)(9) are not available to individuals who have entered into a domestic partnership, civil union or other similar formal relationship recognized under state law that is not
denominated as a marriage under the laws of that state.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Section 1035 Exchanges.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Although Section 1035 of the Internal Revenue Code provides
rules that permit the tax-free exchange of annuity contracts under certain conditions, the Contract does not permit any such exchanges, either from or into another annuity, except as stated in the <FONT style="font-style:italic;">"Suspension and
Termination Provisions"</FONT> and <FONT style="font-style:italic;">"Marriage Termination Provisions"</FONT> of this prospectus.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:10pt;text-align:left;text-decoration:none;text-transform:none;">Qualified Retirement Plans: Individual Retirement
Accounts.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Contract is not offered as an Individual
Retirement Annuity described in Section 408(b) of the Internal Revenue Code; however, it may be issued to the trustee or custodian of an IRA described in Section 408(a) of the Internal Revenue Code. The Contract is not issued to employer sponsored
qualified retirement plans described in section 401 of the Internal Revenue Code, or as a tax sheltered annuity described in Section 403(b) of the Internal Revenue Code.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If the Contract is purchased inside an IRA, then the
beneficial owner of the IRA must be an Annuitant under the Contract. Payments from the Contract will be made to the IRA. Income received by an IRA is generally received by it tax free, whereas distributions from the IRA are generally treated as
ordinary income (or, in the case of certain distributions from Roth IRAs, as nontaxable income). For questions regarding tax matters related to your IRA, including matters relating to the taxation of distributions and required minimum distributions,
please refer to the information provided to you by the custodian or trustee of the IRA.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We have made no determination as to whether this Contract
complies with the terms, conditions and requirements of, or applicable law governing, an IRA. It is your responsibility to determine such compliance matters.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We are not responsible for administering any legal or tax
requirements applicable to your IRA, including but not limited to determining the timing and amount of any distributions that may be required, designation of beneficiaries, etc. You or your service provider are responsible for all such
matters.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The value of your Contract may be required to
be considered in determining the amount of the required distributions from your IRA. We will provide a value of the Contract to your custodian or trustee upon request, but will not determine the total required minimum distribution amount that your
IRA will be required to make.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">You should consult your
plan description and with your custodian or trustee to determine the income tax consequences with respect to contributions to, ownership of, and distributions from, your IRA.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Income Tax Withholding.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Distributions of income from the Contract are subject to
federal income tax. We will withhold the tax from the distributions unless you request otherwise. However, under some circumstances, the Internal Revenue Code will not permit you to waive withholding. Such circumstances include:</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">if you do not provide us
with a taxpayer identification number; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">if we
receive notice from the Internal Revenue Service that the taxpayer identification number furnished by you is incorrect. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you are prohibited from waiving withholding, as described
above, the distribution will be subject to withholding rates established by Section 3405 of the Internal Revenue Code and is applied against the amount of income that is distributed.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">State and Local Tax Considerations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The tax rules across all states and localities are not uniform
and therefore will not be discussed in this prospectus. Tax rules that may apply to contracts issued in U.S. territories such as Puerto Rico and Guam are also not discussed. Prospective purchasers of the Contract should consult a financial
consultant, tax advisor or legal counsel to discuss any state or local taxation questions.</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:43pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">37</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_38"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:10pt;text-align:left;text-decoration:none;text-transform:none;">Non-Resident Aliens.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Generally, income that is payable to a non-resident alien is
subject to federal income tax at a rate of 30%. We are required to withhold this amount and send it to the Internal Revenue Service. Some distributions to non-resident aliens may be subject to a lower (or no) tax if a treaty applies. In order to
obtain the benefits of such a treaty, the non-resident alien must:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Provide us with a properly
completed withholding contract claiming the treaty benefit of a lower tax rate or exemption from tax; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">Provide
us with an individual taxpayer identification number. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If the non-resident alien does not meet the above conditions,
we will withhold 30% of income from the distribution.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Exemption from the 30% withholding is also potentially
available for a non-resident alien if the following is provided:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">sufficient evidence that the
distribution is connected to the non-resident alien's conduct of business in the United States; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">sufficient evidence that the
distribution is includable in the non-resident alien's gross income for United States federal income tax purposes; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">a
properly completed withholding contract claiming the exemption. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note that for the preceding exemption, the distributions would
be subject to the same withholding rules that are applicable to payments to United States persons.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Payment of Advisory or Service Fees.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Payment of Advisory or Service Fees in excess of 3.00% of Your
Account Value will reduce the Guaranteed Lifetime Withdrawal Base and Guaranteed Lifetime Withdrawals under the Contract.<FONT style="font-weight:Normal;"> The Withdrawal Exception differs from your Maximum Contract Fee Percentage because the 3%
Withdrawal Exception is based on Account Value, while your Maximum Contract Fee Percentage is based on your Guaranteed Lifetime Withdrawal Base. If you pay advisory or service fees for a Contract issued to your IRA from other assets in your IRA,
that payment will not be a "distribution" from your IRA under the Internal Revenue Code. If you pay advisory or service fees for a Contract issued to your IRA from other assets held outside your IRA, these fees would generally be treated as an
additional contribution to your IRA, would be subject to all of the restrictions and limitations that any other contribution to an IRA would be subject to and, depending on your individual circumstances, may not be a permissible contribution. Such
payment may also have other tax consequences to you, and you should consult a tax advisor for further information.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Seek Tax Advice.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The above description of federal income tax consequences of
the different types of IRAs which may hold a Contract offered by this prospectus is only a brief summary meant to alert you to the issues and is not intended as tax advice. Anything less than full compliance with the applicable rules, all of which
are subject to change, may have adverse tax consequences. Any person considering the purchase of a Contract in connection with an IRA should first consult a qualified tax advisor with regard to the suitability of a Contract for the IRA.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We can provide no assurances, in the event the Internal
Revenue Service was to challenge the foregoing treatment that a court would agree with the foregoing interpretations of the law. You should consult with your independent tax and legal advisors before purchasing the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Miscellaneous Provisions</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Ownership of the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If you and any joint Contract Owner are individuals, each
Owner is required to be named as a Contract Owner. If the Owner is a trust or other non-natural person, an individual must be named as Annuitant.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Periodic communications to Contract Owners.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Statements regarding Your Account will be provided to you
periodically by your Financial Advisor, or a designated third party.</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">38</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_39"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">During the Accumulation and Withdrawal Phases, we will send
you and your Financial Advisor an annual statement. You and your Financial Advisor will receive automatic confirmation statements containing information about any change in your Guaranteed Lifetime Withdrawal Base, and you may receive these
confirmation statements more frequently than annually at no additional charge. For more information, please contact the Service Center.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Amendments to the Contract.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Changes in the Contract may need to be approved by the state
insurance departments. The consent of the Contract Owner to an amendment will be obtained to the extent required by law.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Assignment.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">You may not assign your interest in the Contract during the
Accumulation or Withdrawal Phase. You may not assign your interest in the Contract during the Income Phase without Nationwide's prior approval.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Misstatements.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If the age of the Annuitant or any Co-Annuitant is misstated,
any Contract benefits will be re-determined using the correct age(s). If any overpayments have been made, future payments will be adjusted. Any underpayments will be paid in full.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Distribution (Marketing) of the Contract</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Investment Services Corporation ("NISC") acts as
the national distributor of the Contracts sold through this prospectus. NISC is registered as a broker-dealer under the Securities Exchange Act of 1934 ("1934 Act") and is a member of the Financial Industry Regulatory Authority ("FINRA"). NISC's
address is One Nationwide Plaza, Columbus, Ohio 43215. In Michigan only, NISC refers to Nationwide Investment Svcs. Corporation. NISC is a wholly owned subsidiary of Nationwide. We do not pay commissions to NISC or to unaffiliated broker-dealers for
the promotion and sale of the Contracts.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">NISC does not
sell Contracts directly to purchasers. Contracts sold through this prospectus can be purchased through registered representatives, appointed by Nationwide, of FINRA broker-dealer member firms. NISC has entered into a selling agreement with MSSB to
sell the Contracts through their registered representatives. Their registered representatives are licensed as insurance agents by applicable state insurance authorities and appointed as agents of Nationwide in order to sell the Contracts. Nationwide
offers these Contracts on a continuous basis; however no broker- dealer is obligated to sell any particular amount of Contracts. For limited periods of time, Nationwide may pay additional compensation to broker-dealers as part of special sales
promotions. Regardless of any amount paid or received by Nationwide, the amount of expenses you pay under the Contract will not vary because of such payments to or from such selling firms. Nationwide will not pass sales expenses through to the
Contract Owner.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Legal Opinion</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Legal matters in connection with federal laws and regulations
affecting the issue and sale of the Contracts described in this prospectus and the organization of Nationwide, its authority to issue the Contracts under Ohio law, and the validity of the Contracts under Ohio law have been passed on by Nationwide's
Office of General Counsel.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">About Nationwide</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide is a stock life insurance company organized under
Ohio law in March 1929, with its Home Office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide is a provider of life insurance, annuities and retirement products. It is admitted to do business in all states, the District of Columbia and
Puerto Rico.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide is a member of the Nationwide
group of companies. Nationwide Mutual Insurance Company and Nationwide Mutual Fire Insurance Company (the "Companies") are the ultimate controlling persons of the Nationwide group of companies. The Companies were organized under Ohio law in December
1925 and 1933 respectively. The Companies engage in a general insurance and reinsurance business, except life insurance.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide is relying on the exemption provided by Rule 12h-7
under the 1934 Act. In reliance on that exemption, Nationwide does not file periodic reports that would be otherwise required under the 1934 Act.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">You can request additional information about Nationwide by
contacting the Service Center.</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">39</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_40"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Contacting the Service Center</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">All inquiries, paperwork, information requests, service
requests, and transaction requests should be made to the Service Center:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">by telephone at
1-800-848-6331 (TDD 1-800-238-3035) </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">by mail
to P.O. Box 182021, Columbus, Ohio 43218-2021. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide may be required to provide information about your
contract to government regulators. If mandated under applicable law, Nationwide may be required to reject a purchase payment and to refuse to process transaction requests for transfers, withdrawals, loans, and/or death benefits until instructed
otherwise by the appropriate regulator.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide will
use reasonable procedures to confirm that instructions are genuine and will not be liable for following instructions that it reasonably determined to be genuine. Nationwide may record telephone requests. Telephone and computer systems may not always
be available. Any telephone system or computer, whether yours or Nationwide's, can experience outages or slowdowns for a variety of reasons. The outages or slowdowns could prevent or delay processing. Although Nationwide has taken precautions to
support heavy use, it is still possible to incur an outage or delay. To avoid technical difficulties, submit transaction requests by mail.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Experts</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The consolidated financial statements and
schedules of Nationwide Life Insurance Company and subsidiaries as of December 31, 2014 and 2013, and for each of the years in the three-year period ended December 31, 2014, have been included herein in reliance upon the report of KPMG LLP,
independent registered public accounting firm, and upon the authority of said firm as experts in accounting and auditing. KPMG LLP is located at 191 West Nationwide Blvd., Columbus, Ohio 43215.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Disclosure of Commission Position on Indemnification</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Insofar as indemnification for liabilities arising under the
Securities Act of 1933 (the "1933 Act") may be permitted to directors, officers and controlling persons of Nationwide pursuant to the foregoing provisions, or otherwise, Nationwide has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the 1933 Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being
registered, Nationwide will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as
expressed in the 1933 Act and will be governed by the final adjudication of such issue.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Legal Proceedings</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:12pt;font-style:Normal;font-weight:bold;line-height:15pt;margin-top:13pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Life Insurance Company</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Financial Services, Inc. (NFS, or collectively with
its subsidiaries, "the Company") was formed in November 1996. NFS is the holding company for Nationwide Life Insurance Company (NLIC), Nationwide Life and Annuity Insurance Company (NLAIC) and other companies that comprise the life insurance and
retirement savings operations of the Nationwide group of companies (Nationwide). This group includes Nationwide Financial Network (NFN), an affiliated distribution network that markets directly to its customer base. NFS is incorporated in Delaware
and maintains its principal executive offices in Columbus, Ohio.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company is subject to legal and regulatory proceedings in
the ordinary course of its business. The Company's legal and regulatory matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates. These
matters are subject to many uncertainties, and given their complexity and scope, their outcomes cannot be predicted. Regulatory proceedings could also affect the outcome of one or more of the Company's litigation matters. Furthermore, it is often
not possible to determine the ultimate outcomes of the pending regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to
below, are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the plaintiffs' claims for liability</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:16pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">40</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_41"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">or
damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of the cases, the plaintiffs
are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. The Company believes, however, that
based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse effect on the Company's condensed consolidated financial position. Nonetheless, given the large or
indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could materially affect the Company's condensed consolidated financial position or results of operations in a
particular quarter or annual period.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The various businesses conducted by the
Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the Internal Revenue
Service, the Federal Reserve Bank and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates. The financial
services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The
Company will cooperate with Nationwide Mutual Insurance Company (NMIC) insofar as any inquiry, examination or investigation encompasses NMIC's operations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">On August 15, 2001, NFS and NLIC were named in a lawsuit filed
in the United States District Court for the District of Connecticut entitled <FONT style="font-style:italic;">Lou Haddock, as trustee of the Flyte Tool &amp; Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc.
and Nationwide Life Insurance Company</FONT>. On November 18, 2009, the plaintiffs filed a sixth amended complaint amending the list of named plaintiffs and claiming to represent a class of qualified retirement plan trustees under the Employee
Retirement Income Security Act of 1974 (ERISA) that purchased variable annuities from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by
allegedly accepting service payments from certain mutual funds. The complaint seeks damages in an amount equivalent to some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and
injunctive relief, and attorney's fees. On November 6, 2009, the Court granted the plaintiff's motion for class certification. On October 21, 2010, the District Court dismissed NFS from the lawsuit. On February 6, 2012, the Second Circuit Court of
Appeals vacated the November 6, 2009 order granting class certification and remanded the case back to the District Court for further consideration. On September 6, 2013, the District Court granted the plaintiffs' motion for class certification. On
December 11, 2014, the plaintiffs filed a seventh amended complaint adding another sub class of defendants that held trust platform products. On December 11, 2014, plaintiff filed a motion for preliminary approval of settlement. On January 5, 2015,
the Court signed the Order Preliminarily Approving Settlement and Approving Form and Manner of Notice. A Fairness Hearing has been set for March 31, 2015. NFS has made adequate provision for all probable and reasonably estimable losses associated
with this settlement.</DIV>  </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:25pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">41</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_43"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Definitions</DIV> <DIV style="text-align:left;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-top:0.5pt solid #000000;empty-cells:show;margin-top:6pt;width:99.30%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">Accumulation
 Phase<FONT style="font-weight:Normal;"> &#8211; The phase of the Contract from the time the Contract is issued until the Withdrawal Phase.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Account
 Value<FONT style="font-weight:Normal;"> &#8211; The value of the assets in Your Account, as determined as of the close of business on a Valuation Day.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">Additional
 Deposit(s)<FONT style="font-weight:Normal;"> &#8211; Payments applied to Your Account after the Contract is issued.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Annuitant
<FONT style="font-weight:Normal;"> &#8211; The person whose life span is used to measure the Guarantee during the Accumulation, Withdrawal and Income Phases under the Contract.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Annuity
<FONT style="font-weight:Normal;"> &#8211; The supplemental immediate fixed income annuity contract issued to you when you begin the Income Phase of the Contract.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">Annuity
 Commencement Date<FONT style="font-weight:Normal;"> &#8211; The date the Annuity is issued.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Client
 Agreement<FONT style="font-weight:Normal;"> &#8211; The agreement you sign that authorizes MSSB and the Overlay Manager to provide the specified services to you regarding Your Account.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Co-Annuitant
<FONT style="font-weight:Normal;"> &#8211; If the Contract is jointly owned and you elect the Spousal Continuation Option, you must name a spouse as Co-Annuitant, which is the second person whose life span is used to measure the Guarantee during the
Accumulation, Withdrawal and Income Phases under the Contract.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Contract
<FONT style="font-weight:Normal;"> &#8211; The Guarantee and supplemental immediate fixed income annuity issued by Nationwide, including any endorsements or riders.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">Contract
 Anniversary<FONT style="font-weight:Normal;"> &#8211; The anniversary of the date we issue your Contract.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Contract
 Fee or Fee<FONT style="font-weight:Normal;"> &#8211; The fee that is assessed quarterly from Your Account during the Accumulation Phase and Withdrawal Phase and remitted to us by MSSB.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Contract
 Fee Percentage<FONT style="font-weight:Normal;"> &#8211; The percentage that is multiplied by your Guaranteed Lifetime Withdrawal Base to determine your Contract Fee.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Contract
 Owner or you<FONT style="font-weight:Normal;"> &#8211; The person, entity and/or Joint Owner that maintains all rights under the Contract, including the right to direct who receives Guaranteed Lifetime Income Payments.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Contract
 Year<FONT style="font-weight:Normal;"> &#8211; The one-year period starting on the date we issue the Contract and each Contract Anniversary thereafter.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">Early
 Withdrawal<FONT style="font-weight:Normal;"> &#8211; Any withdrawal you take from Your Account prior to the Withdrawal Start Date.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Excess
 Withdrawal<FONT style="font-weight:Normal;"> &#8211; The portion of a withdrawal taken after the Withdrawal Start Date that is in excess of the Guaranteed Lifetime Withdrawal Amount.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">General
 Account<FONT style="font-weight:Normal;"> &#8211; An account that includes Nationwide's assets, which are available to our creditors.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Guarantee
<FONT style="font-weight:Normal;"> &#8211; Our obligation to pay you Guaranteed Lifetime Income Payments for the rest of your life, provided that you comply with the terms of the Contract.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">Guaranteed
 Lifetime Income Payments<FONT style="font-weight:Normal;"> &#8211; Payments you receive during the Income Phase from Nationwide.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Guaranteed
 Lifetime Withdrawals<FONT style="font-weight:Normal;"> &#8211; Withdrawals you make after the Withdrawal Start Date during the Withdrawal Phase. The amount of each Guaranteed Lifetime Withdrawal will be equal to your most recent Guaranteed Lifetime
Withdrawal Amount.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Guaranteed
 Lifetime Withdrawal Amount<FONT style="font-weight:Normal;"> &#8211; The amount that you can withdraw from Your Account each calendar year during the Withdrawal Phase without reducing your Guaranteed Lifetime Withdrawal Base. This amount is
non-cumulative, meaning that withdrawals not taken cannot be carried over from one year to the next.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Guaranteed
 Lifetime Withdrawal Base<FONT style="font-weight:Normal;"> &#8211; The amount multiplied by the Guaranteed Lifetime Withdrawal Percentage to determine the Guaranteed Lifetime Withdrawal Amount. The Guaranteed Lifetime Withdrawal Base may increase
or decrease, as described in this prospectus.</FONT> </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:36pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">42</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="db8a006d-ea56-409e-8ca0-ae5b2483df38_44"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-bottom:0.5pt solid #000000;border-collapse:collapse;border-top:0.5pt solid #000000;empty-cells:show;margin-top:0pt;width:99.30%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Guaranteed
 Lifetime Withdrawal Percentage<FONT style="font-weight:Normal;"> &#8211; The percentage multiplied by the Guaranteed Lifetime Withdrawal Base to determine the Guaranteed Lifetime Withdrawal Amount, and varies based on age and the time of the
withdrawal.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Income
 Phase<FONT style="font-weight:Normal;"> &#8211; The phase of the Contract during which we are obligated to make Guaranteed Lifetime Income Payments to the Annuitant.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Individual
 Retirement Account or IRA<FONT style="font-weight:Normal;"> &#8211; An account that qualifies for favorable tax treatment under Section 408(a) of the Internal Revenue Code, but does not include Roth IRAs.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Joint
 Owner<FONT style="font-weight:Normal;"> &#8211; One of two Contract Owners, each of which owns an undivided interest in the Contract. Joint Owners must be spouses as recognized under applicable federal law.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">MSSB
<FONT style="font-weight:Normal;"> &#8211; Morgan Stanley Smith Barney, LLC, its affiliates, or any successors.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">Nationwide,
 we or us<FONT style="font-weight:Normal;"> &#8211; Nationwide Life Insurance Company.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Non-Qualified
 Contract<FONT style="font-weight:Normal;"> &#8211; A Contract that does not qualify for favorable tax treatment under the Internal Revenue Code as an IRA, Roth IRA, SEP IRA, or Simple IRA.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">Roth
 IRA<FONT style="font-weight:Normal;"> &#8211; An account that qualifies for favorable tax treatment under Section 408A of the Internal Revenue Code.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">SEC
 or Commission<FONT style="font-weight:Normal;"> &#8211; Securities and Exchange Commission.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">SEP
 IRA<FONT style="font-weight:Normal;"> &#8211; An account that qualifies for favorable tax treatment under Section 408(k) of the Internal Revenue Code.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Service
 Center<FONT style="font-weight:Normal;"> &#8211; The department of Nationwide responsible for receiving all service and transaction requests relating to the contract. For service and transaction requests submitted other than by telephone (including
fax requests), the Service Center is Nationwide's mail and document processing facility. For service and transaction requests communicated by telephone, the Service Center is Nationwide's operations processing facility. Information on how to contact
the Service Center is in the "Contacting the Service Center" provision.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Simple
 IRA<FONT style="font-weight:Normal;"> &#8211; An account that qualifies for favorable tax treatment under Section 408(p) of the Internal Revenue Code.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Total
 Gross Deposits<FONT style="font-weight:Normal;"> &#8211; The total of all deposits, including your initial deposit and excluding any withdrawals, made into Your Account.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Valuation
 Date or Day<FONT style="font-weight:Normal;"> &#8211; Each day the New York Stock Exchange is open for business. The value of Your Account is determined at the end of each Valuation Date, which is generally at 4:00 pm EST, but may be earlier on
certain days when the New York Stock Exchange is closed early.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Withdrawal
 Phase<FONT style="font-weight:Normal;"> &#8211; The phase of the Contract during which you take Guaranteed Lifetime Withdrawals from Your Account.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:22pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-indent:-10pt;text-transform:none;vertical-align:center;width:97.77%;">Withdrawal
 Start Date<FONT style="font-weight:Normal;"> &#8211; The date we receive at the Service Center your completed Withdrawal Phase election form indicating your eligibility (and the Co-Annuitant's eligibility, if applicable) and desire to enter the
Withdrawal Phase and begin taking annual withdrawals of the Guaranteed Lifetime Withdrawal Amount from Your Account.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">You
<FONT style="font-weight:Normal;"> &#8211; In this prospectus, "you" means the Contract Owner and/or Joint Owners.</FONT> </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-bottom:6pt;padding-left:12pt;padding-right:3pt;padding-top:6pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:center;width:97.77%;">Your
 Account<FONT style="font-weight:Normal;"> &#8211; The Select UMA account you own.</FONT> </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="margin-top:146pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">43</DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_1"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:none;">Appendix A</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:256pt;text-align:center;text-decoration:none;text-transform:none;">NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:11pt;font-style:Normal;font-weight:Normal;line-height:14pt;margin-bottom:2pt;margin-top:2pt;text-align:center;text-decoration:none;text-transform:none;">2014 Form S-1 MD&amp;A</DIV> </DIV>
<DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-1</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_2"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">BUSINESS</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Overview</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Life Insurance Company ("NLIC,"
or collectively with its subsidiaries, "the Company") was incorporated in 1929 and is an Ohio domiciled stock life insurance company. The Company is a member of the Nationwide group of companies ("Nationwide"), which is comprised of Nationwide
Mutual Insurance Company ("NMIC") and all of its affiliates and subsidiaries.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">All of the outstanding shares of NLIC's common stock are owned
by Nationwide Financial Services, Inc. ("NFS"), a holding company formed by Nationwide Corporation ("Nationwide Corp."), a majority-owned subsidiary of NMIC.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company is a leading provider of
long-term savings and retirement products in the United States of America ("U.S."). The Company develops and sells a diverse range of products and services, including individual and group annuities, individual and group life insurance products,
private and public sector group retirement plans, investment products sold to institutions and advisory services.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Wholly-owned subsidiaries of NLIC as of December 31, 2014
include Nationwide Life and Annuity Insurance Company ("NLAIC") and Nationwide Investment Services Corporation ("NISC"). NLAIC primarily offers individual annuity contracts, universal life insurance, variable universal life insurance, term life
insurance and corporate-owned life insurance ("COLI") on a non-participating basis. NISC is a registered broker-dealer.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Business Segments</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Management views the Company's business
primarily based on its underlying products and uses this basis to define its four reportable segments: Individual Products &amp; Solutions &#8211; Annuity, Retirement Plans, Individual Products &amp; Solutions &#8211; Life and Nationwide Business
Solutions Group ("NBSG") and Corporate and Other.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The
primary segment profitability measure that management uses is a non-GAAP financial measure called pre-tax operating earnings (loss), which is calculated by adjusting income before federal income taxes to exclude: (1) net realized investment gains
and losses, except for operating items, such as trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on guaranteed minimum death benefit ("GMDB") contracts; (2) the
adjustment to amortization of deferred policy acquisition costs ("DAC") and other related to net realized investment gains and losses; and (3) net losses attributable to noncontrolling interest. The Company believes this financial measure enhances
the understanding and comparability of its performance by highlighting its results from continuing operations and their underlying project drivers.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Individual Products &amp; Solutions - Annuity</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Individual Products &amp; Solutions -
Annuity segment consists of individual annuity products marketed under the Nationwide DestinationSM and other Nationwide-specific or private label brands. Deferred annuity contracts provide the customer with tax-deferred accumulation of savings and
flexible payout options including lump sum, systematic withdrawal or a stream of payments for life. In addition, deferred variable annuity contracts provide the customer with access to a wide range of investment options and asset protection
features, while deferred fixed annuity contracts generate a return for the customer at a specified interest rate fixed for prescribed periods. Immediate annuities differ from deferred annuities in that the initial premium is exchanged for a stream
of income for a certain period and/or for the owner's lifetime without future access to the original investment. The majority of assets and recent sales for the Individual Products &amp; Solutions - Annuity segment consist of deferred variable
annuities.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected
consolidated financial data for the Company's Individual Products &amp; Solutions - Annuity segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:52.52%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.53%;">December
 31, 2012 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>2,201 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>1,874 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:15.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>1,660 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Pre-tax operating
earnings</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>583 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>321 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>220 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Account values as of year
end</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$69,357
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$64,375
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$56,786
 </TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">Retirement Plans</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Retirement Plans segment is comprised of
the private and public sector retirement plans businesses. The private sector business primarily includes Internal Revenue Code ("IRC") Section 401 qualified plans funded through fixed and variable group annuity contracts issued through NLIC. The
public sector business primarily includes IRC Section 457 (b)</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-2</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_3"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">and Section 401(a) governmental plans, both
in the form of full-service arrangements that provide plan administration along with fixed and variable group annuities, as well as administration-only business. Across the public and private sector business Nationwide Investment Advisors managed
account services are also available. The Retirement Plans segment also includes stable value wrap products and solutions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected consolidated financial
data for the Company's Retirement Plans segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:52.52%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.53%;">December
 31, 2012 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>857 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>844 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:15.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>830 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Pre-tax operating
earnings</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>250 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>222 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>195 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Account values as of year
end</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$34,216
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$30,086
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$26,644
 </TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">Individual Products &amp; Solutions &#8211; Life and NBSG</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Individual Products &amp; Solutions -
Life and NBSG segment consists of life insurance products, including individual variable universal life, COLI and bank-owned life insurance ("BOLI") products, traditional life insurance products, fixed universal life insurance products and indexed
universal life insurance products. Life insurance products provide a death benefit and, for certain products, allow the customer to build cash value on a tax-advantaged basis.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected consolidated financial
data for the Company's Individual Products &amp; Solutions - Life and NBSG segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:52.52%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.53%;">December
 31, 2012 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:10.01pt;"></FONT>1,644 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:10.01pt;"></FONT>1,559 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:15.53%;">$
<FONT style="padding-left:10.01pt;"></FONT>1,485 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Pre-tax operating
earnings</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:17.51pt;"></FONT>299 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:17.51pt;"></FONT>238 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$
<FONT style="padding-left:17.51pt;"></FONT>241 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Life insurance policy reserves as of year
end</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>26,202 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>24,863 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>22,395 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Life insurance in force as of year
end</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$167,173
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$154,701
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$143,633
 </TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">Corporate and Other</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Corporate and Other segment includes
non-operating realized gains and losses and related amortization, including mark-to-market adjustments on embedded derivatives, net of economic hedges, related to products with living benefits included in the Individual Products &amp; Solutions -
Annuity segment, other-than-temporary impairment losses, and other revenues and expenses not allocated to other segments. Additionally, this segment includes the funding agreements with the Federal Home Loan Bank of Cincinnati ("FHLB"), as well as
the medium-term note ("MTN") program that concluded in the fourth quarter of 2012.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected consolidated financial
data for the Company's Corporate and Other segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:52.52%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.53%;">December
 31, 2012 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:0pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Operating
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>78 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>55 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$
<FONT style="padding-left:2.99pt;"></FONT>54 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Pre-tax operating
loss</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:4.51pt;"></FONT>(129) </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:2.01pt;"></FONT>(73) </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$(81)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">FHLB funding
agreements</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$1,762
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$913
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$
<FONT style="padding-left:2.99pt;"></FONT>25 </TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">Additional information related to the Company's business segments is included
in Note 18 to the audited consolidated financial statements included in the F pages of this report.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Marketing and Distribution</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company sells its products through a
diverse distribution network. Unaffiliated entities that sell the Company's products to their own customer bases include independent broker-dealers, financial institutions, wirehouse and regional firms, pension plan administrators, producer groups
and life insurance agencies and specialists. Representatives of affiliates who market products directly to a customer base include Nationwide Retirement Solutions, Inc. ("NRS") and Nationwide Financial Network ("NFN") producers, which includes the
independent agent distribution force and the exclusive agent distribution force of the Company's ultimate parent company, NMIC. The Company believes its broad range of competitive products, strong distributor relationships and diverse distribution
network position it to compete effectively in the rapidly growing retirement savings market.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-3</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_4"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Unaffiliated Distribution</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Independent Broker-Dealers, Regional Firms,
Insurance Agencies and Producer Groups.<FONT style="font-style:Normal;"> The Company sells individual annuities, mutual funds, group retirement plans and life insurance products through independent broker-dealers and agencies (including brokerage
general agencies and producer groups in the Individual Products &amp; Solutions - Life and NBSG segment) and regional firms in each state and the District of Columbia. The Company believes that it has developed strong relationships based on its
diverse product mix, large selection of fund options and administrative technology. In addition to such relationships, the Company believes its financial strength and the Nationwide brand name are competitive advantages in these distribution
channels. The Company regularly seeks to expand this distribution network.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Financial Institutions and Wirehouses.<FONT
 style="font-style:Normal;"> The Company markets individual annuities (under its brand names and on a private label basis), mutual funds, private sector retirement plans and life insurance products through financial institutions and wirehouses,
consisting primarily of banks and their subsidiaries. The Company believes that it has competitive advantages in this distribution channel, including its expertise in training financial institution personnel to sell annuities, life insurance and
pension products, its breadth of product offerings, its financial strength, the Nationwide brand name, and the ability to offer private label products.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Pension Plan Administrators.<FONT style="font-style:Normal;">
The Company markets group retirement plans organized pursuant to IRC Section 401 and sponsored by employers as part of employee retirement programs through regional pension plan administrators. The Company also has linked pension plan administrators
to the financial planning community to sell group pension products. The Company targets employers with 25 to 2,000 employees because it believes that these plan sponsors tend to require extensive record-keeping services from pension plan
administrators and therefore are more likely to become long-term customers.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Life Insurance Specialists.<FONT style="font-style:Normal;">
The Company markets COLI and BOLI through life insurance specialists, which are firms that specialize in the design, implementation and administration of executive benefit plans.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Affiliated Distribution</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">NRS<FONT style="font-style:Normal;">. NRS
markets various products and services to the public sector, primarily on a retail basis, through several sales organizations. NRS markets group variable annuities and fixed annuities as well as administration and record-keeping services to state and
local governments for use in their IRC Section 457 and Section 401(a) retirement programs. NRS maintains endorsement arrangements with state and local government entities, including the National Association of Counties and The International
Association of Fire Fighters.</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">NFN Producers.<FONT
 style="font-style:Normal;"> NFN producers include Nationwide exclusive agents and independent agents. All agents appointed with Nationwide may be authorized to distribute Nationwide life insurance, annuity, mutual fund and group annuity products.
Nationwide exclusive agents sell traditional, universal and variable universal life insurance products and individual annuities through the licensed agency distribution force of NMIC and primarily target the holders of personal automobile and
homeowners' insurance policies issued by NMIC and affiliated companies.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Reinsurance</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company follows the industry practice of
reinsuring with other companies a portion of its life insurance, annuity and health risks in order to reduce net liability on individual risks, to provide protection against large losses, achieve greater diversification of risks and obtain statutory
capital relief. The maximum amount of individual ordinary life insurance retained by the Company on any one life is $10 million. The Company cedes insurance on both an automatic basis, whereby risks are ceded to a reinsurer on specific blocks of
business where the underlying risks meet certain predetermined criteria, and on a facultative basis, whereby the reinsurer's prior approval is required for each risk reinsured.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company has entered into reinsurance contracts with
certain unaffiliated reinsurers to cede a portion of its general account life, annuity and health business. Total amounts recoverable under these reinsurance contracts including ceded reserves, paid and unpaid claims and certain other amounts
totaled $704 million and $675 million as of December 31, 2014 and 2013, respectively. Under the terms of the contracts, specified assets are generally placed in trusts as collateral for the recoveries. The trust assets are invested in investment
grade securities, the fair value of which must at all times be greater than or equal to 100% or 102% of the reinsured reserves, as outlined in each of the underlying contracts. Certain portions of the Company's variable annuity guaranteed benefit
risks are also reinsured. These treaties reduce the Company's exposure to death benefit and income benefit guarantee risk in the Individual Products &amp; Solutions - Annuity segment. The Company has no other material reinsurance arrangements with
unaffiliated reinsurers.</DIV> </DIV> <DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-4</DIV>
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's only material reinsurance agreements with
affiliates are the modified coinsurance agreements pursuant to which NLIC ceded to other members of Nationwide all of its accident and health insurance business not ceded to unaffiliated reinsurers, as described in Note 15 and 17 to the audited
consolidated financial statements included in the F pages of this report.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Ratings</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Ratings with respect to claims-paying
ability and financial strength are one factor in establishing the competitive position of insurance companies. These ratings represent each agency's opinion of an insurance company's financial strength, operating performance, strategic position and
ability to meet its obligations to policyholders. Such factors are important to policyholders, agents and intermediaries. They are not evaluations directed toward the protection of investors and are not recommendations to buy, sell or hold
securities. Rating agencies utilize quantitative and qualitative analysis, including the use of key performance indicators, financial and operating ratios and proprietary capital models to establish ratings for the Company and certain subsidiaries.
Ratings are continuously evaluated relative to performance as measured using these metrics and the impact that changes in the underlying business in which it is engaged can have on such measures. In an effort to minimize the adverse impact of this
risk, the Company maintains regular communications with the rating agencies, performs evaluations utilizing its own calculations of these key metrics and considers such evaluation in the way it conducts its business.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Ratings are important to maintaining public confidence in the
Company and the ability to market annuity and life insurance products. Rating agencies continually review the financial performance and condition of insurers, including the Company. Any lowering of the Company's ratings could have an adverse effect
on the Company's ability to market its products and could increase the rate of surrender of the Company's products. Both of these consequences could have an adverse effect on the Company's liquidity and, under certain circumstances, net income. As
of December 31, 2014, NLIC and NLAIC each have financial strength ratings of "A+" (Superior) from A.M. Best Company, Inc. ("A.M. Best"). Their claims-paying ability/financial strength are rated "A1" (Good) by Moody's Investors Service, Inc.
("Moody's") and "A+" (Strong) by Standard &amp; Poor's Rating Services ("S&amp;P"). The Company's financial strength is also reflected in the ratings of its commercial paper, which is rated "AMB-1" by A.M. Best, "P-1" by Moody's and "A-1" by
S&amp;P.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Competition</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company competes with many other
insurers as well as non-insurance financial services companies, some of whom offer alternative products and, with respect to other insurers, have higher ratings than the Company. While no single company dominates the marketplace, many of the
Company's competitors have greater financial resources and larger market share than the Company. Competition in the Company's lines of business is primarily based on price, product features, commission structure, perceived financial strength,
claims-paying ability, customer and producer service and name recognition.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See also <FONT style="font-style:italic;">"Risk Factors
&#8211; The Company operates in a highly competitive industry, which can significantly impact operating results."</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Regulation</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Regulation at State Level</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">NLIC and NLAIC are each organized and
domiciled in the State of Ohio and each is also licensed in Ohio as a life insurer. The Ohio Department of Insurance ("ODI") regulates NLIC and NLAIC, and each is also regulated by each of the insurance regulators in the other states where each is
authorized to transact insurance business. State insurance authorities have broad administrative powers with respect to various aspects of the insurance business.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">From time to time, increased scrutiny has been placed upon the
U.S. insurance regulatory framework, and a number of state legislatures have considered or enacted legislative measures that alter, and in many cases increase, state authority to regulate insurance and reinsurance companies. In addition to
legislative initiatives of this type, the National Association of Insurance Commissioners ("NAIC") and insurance regulators are regularly involved in a process of re-examining existing laws and regulations and their application to insurance and
reinsurance companies. It is not possible to predict the future impact of changing regulation on the operations of the Company. See <FONT style="font-style:italic;">"Risk Factors&#8212;Risks Related to the Legal and Regulatory Environment of the
Insurance Industry&#8212;The Company's insurance entities are subject to extensive regulation."</FONT></DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-5</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">National Association of Insurance Commissioners</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NAIC is an organization, the mandate of which is to
benefit state insurance regulatory authorities and consumers by promulgating model insurance laws and regulations for adoption by the States. The NAIC also provides standardized insurance industry accounting and reporting guidance through the
Accounting Manual. However, model insurance laws and regulations are only effective when adopted by the States, and statutory accounting and reporting principles continue to be established by individual state laws, regulations and permitted
practices. Changes to the Accounting Manual or modifications by the various state insurance departments may affect the statutory capital and surplus of NLIC and NLAIC.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Pursuant to its "Solvency Modernization Initiative," the NAIC
reviewed the U.S. financial regulatory system and all aspects of financial regulation affecting insurance companies. Though broad in scope, the Solvency Modernization Initiative focused on: (1) capital requirements; (2) corporate governance and risk
management; (3) group supervision; (4) statutory accounting and financial reporting; and (5) reinsurance. This initiative has resulted in the recent adoption by the NAIC of the ORSA Model Act, which has been enacted by several states and requires
insurance companies to assess the adequacy of their and their group's risk management and current and future solvency position. Under the ORSA Model Act, an insurer must undertake an internal risk management review no less often than annually (but
also at any time when there are significant changes to the risk profile of the insurer or its insurance group), in accordance with the NAIC's ORSA Guidance Manual, and prepare an ORSA Report assessing the adequacy of the insurer's risk management
and capital in light of its current and future business plans. The ORSA Report will be filed with a company's lead regulator and will be available to other domiciliary regulators within the holding company system. Ohio has adopted legislation
substantially similar to the ORSA Model Act, so these changes will apply to NLIC and NLAIC, effective January 1, 2015. The Company believes that NLIC and NLAIC are well prepared to comply with the law.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Insurance Holding Company Regulation</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company is a wholly-owned subsidiary of NFS, which in turn
is a wholly-owned subsidiary of Nationwide Corporation, a majority-owned subsidiary of NMIC. NMIC is the lead entity of the Nationwide group of companies. As such, NMIC is subject to the insurance holding company acts of each of the states of
domicile of its insurance subsidiaries and affiliates, including NLIC and NLAIC. All states have enacted legislation that requires each insurance holding company and each insurance company in an insurance holding company system to register with the
insurance regulatory authority of the insurance company's state of domicile and to furnish annually financial and other information concerning the operations of companies within the holding company system that materially affect the operations,
management or financial condition of the insurers within such system. Generally, under such laws, transactions within the insurance holding company system to which NLIC and NLAIC are a party must be fair and reasonable and, if material or of a
specified category, require prior notice and approval or non-disapproval by the state of domicile of each insurance entity that is party to the transaction. In addition, under such laws, a state insurance authority usually must approve in advance
the direct or indirect acquisition of 10% or more of the voting securities of an insurance company domiciled in its state.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NAIC has adopted the Amended Holding Company Model Act,
which introduces the concept of "enterprise risk" within an insurance holding company system and imposes more extensive informational requirements on parents and other affiliates of licensed insurers or reinsurers, with the purpose of protecting the
licensed companies from enterprise risk, including requiring an annual enterprise risk report by the ultimate controlling person identifying the material risks within the insurance holding company system that could pose enterprise risk to the
licensed companies. The Amended Holding Company Model Act must be adopted by the individual states for the new requirements to apply, including, with respect to NMIC and NLIC and NLAIC, by Ohio. Ohio adopted legislation substantially similar to the
Amended Holding Company Model Act on June 5, 2014 and these changes will apply to NLIC and NLAIC beginning in 2015.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Regulation of Dividends and Other Distributions</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See Note 14 to the audited consolidated financial statements
in the F pages of this report for a discussion of dividend restrictions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Annual and Quarterly Reports and Statutory Examinations</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Insurance companies are required to file detailed annual and
quarterly statutory financial statements with state insurance regulators in each of the states in which they do business, and their business and accounts are subject to examination by such regulators at any time. In addition, insurance regulators
periodically examine an insurer's financial condition, adherence to statutory accounting practices, and compliance with insurance department rules and regulations. NLIC and NLAIC each file reports with state insurance departments regarding
management's assessment of internal controls over financial reporting in compliance with the Annual Financial Reporting Model Regulation.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-6</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">As part of their routine regulatory
oversight process, state insurance departments periodically conduct detailed examinations, generally once every three to five years, of the books, records and accounts of insurance companies domiciled in their states. Such examinations generally are
conducted in coordination with the insurance departments of other domestic states under guidelines promulgated by the NAIC. The ODI's most recently completed financial examination of NLIC and NLAIC concluded in 2013 and was for the five-year period
ended December 31, 2011. The examination was completed during the second quarter of 2013 and did not result in any significant issues or adjustments. The examination reports are available to the public.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Additionally, as a captive reinsurer, Olentangy Reinsurance,
LLC ("Olentangy"), a special purpose financial insurance company domiciled in the State of Vermont, which is a wholly-owned subsidiary of NLAIC, is subject to the requirements and restrictions of its Licensing Order, as issued by the State of
Vermont.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Market Conduct</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">State insurance regulatory authorities regularly make
inquiries, hold investigations and administer market conduct examinations with respect to insurers' compliance with applicable insurance laws and regulations, including among other things, the form and content of disclosure to consumers,
advertising, sales practices and complaint handling. State regulators have imposed significant fines on various insurers for improper market conduct. NLIC and NLAIC continuously monitor sales, marketing and advertising practices and related
activities of agents and personnel and provide continuing education and training in an effort to ensure compliance with applicable insurance laws and regulations. There can be no guarantee that any non-compliance with such applicable laws and
regulations would not have a material adverse effect on the Company.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Guaranty Associations and Similar Arrangements</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Each of the 50 states of the U.S. and the District of Columbia
have laws requiring insurance companies doing business within its jurisdiction to participate in various types of guaranty associations or other similar arrangements. These arrangements provide certain levels of protection to policy owners from
losses arising from insurance policies or annuity contracts issued by insurance companies that become impaired or insolvent. Typically, assessments are levied (up to prescribed limits) on member insurers on a basis which is related to the member
insurer's proportionate share of the business written by all member insurers in the lines of business in which the impaired or insolvent member insurer was writing. Some jurisdictions permit member insurers to recover assessments paid through full
or partial premium tax offsets, usually over a period of years.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Assessments levied against NLIC and NLAIC during the past
three years have not been material. The amount and timing of any future assessment on or refund to NLIC and NLAIC under these laws cannot be reasonably estimated and are beyond the control of NLIC and NLAIC. A portion of the assessments paid by NLIC
and NLAIC pursuant to these laws may be used as credits for a portion of NLIC and NLAIC's premium taxes. For the years ended December 31, 2014, 2013 and 2012, any credits received by the Company were immaterial.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Statutory Surplus</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As licensed insurers, NLIC and NLAIC are subject to the
supervision of the regulators of each state which has the discretionary authority, in connection with the ongoing licensing of such entity, to limit or prohibit writing new business within its jurisdiction when, in the state's judgment, such entity
is not maintaining adequate statutory surplus or capital or is operating in a hazardous financial condition. The Company does not currently anticipate that any regulator would limit the amount of new business that NLIC and NLAIC may write due to an
inability to meet the levels of statutory surplus required by the regulators.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Risk-Based Capital</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">NLIC, NLAIC and Olentangy are subject to the NAIC's risk-based
capital ("RBC") requirements for life insurance companies. The requirements monitor capital adequacy and result in insurers maintaining, for the protection of policyholders, capital in excess of statutory surplus requirements. Insurers having less
statutory surplus than required by the RBC model formula will be subject to varying degrees of regulatory action depending on the level of capital inadequacy. See Note 14 to the audited consolidated financial statements included in the F pages of
this report for additional discussion of RBC requirements.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-7</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Annuity Sales Practices</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company's annuity sales practices are
subject to strict regulation. State insurance regulators are becoming more active in adopting and enforcing suitability standards that create additional responsibilities and liabilities with respect to sales of annuities, both fixed and variable.
Such regulations and responsibilities could increase the Company's operational costs or compliance costs or burdens, or expose the Company to increased liability for any violation of such regulations and responsibilities.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Regulation of Investments</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company is subject to state laws and regulations that
require diversification of their investment portfolios and limit the amount of investments in certain investment categories such as below-investment grade fixed income securities, real estate-related equity and common stocks. Failure to comply with
these laws and regulations would cause investments exceeding regulatory limitations to be treated as non-admitted assets for purposes of measuring statutory surplus, and, in some instances, could require divestiture of such non-qualifying
investments. The Company believes that its investments and the investments made by each of its U.S. insurance subsidiaries and affiliates, in each case, are in compliance, in all material respects, with such laws and regulations as of December 31,
2014.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Federal Initiatives</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Although the U.S. federal government generally has not
directly regulated the insurance business, federal legislation and administrative policies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ("the Dodd-Frank Act") expands the federal presence in insurance oversight.
For further discussion, see <FONT style="font-style:italic;">"Risk Factors&#8212;Risks Related to the Legal and Regulatory Environment of the Insurance Industry&#8212;The Company's insurance entities are subject to extensive regulation"</FONT> and <FONT
 style="font-style:italic;">"Risk Factors&#8212;Risks Related to the Legal and Regulatory Environment of the Insurance Industry&#8212;The Dodd-Frank Act and certain other potential changes in federal laws and regulations may adversely affect the
Company's business, results of operations and financial condition."</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Securities Laws</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Certain of NLIC and NLAIC's products,
policies and contracts are subject to regulation under the federal securities laws administered by the Securities Exchange Commission ("SEC") and under certain state securities laws. Certain separate accounts of NLIC and NLAIC are registered as
investment companies under the Investment Company Act of 1940, as amended. Separate account interests under certain variable annuity contracts and variable insurance policies issued by NLIC and NLAIC are also registered under the Securities Act.
NISC, a subsidiary of the Company, is registered as a broker-dealer under the Exchange Act, and is a member of, and subject to regulation by, the Financial Industry Regulatory Authority and is also subject to the SEC's net capital rules.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Investment Advisors, a subsidiary of the Company,
is an investment advisor registered under the Investment Advisors Act of 1940, as amended, and the Securities Act.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">All aspects of investment advisory activities of NLIC are
subject to applicable federal and state laws and regulations in the jurisdictions in which they conduct business. These laws and regulations primarily are intended to benefit investment advisory clients and investment company shareholders and
generally grant supervisory agencies broad administrative powers, including the power to limit or restrict the transaction of business for failure to comply with such laws and regulations. In such event, the possible sanctions which may be imposed
include the suspension of individual employees, limitations on the activities in which the investment advisor may engage, suspension or revocation of the investment advisor's registration as an advisor, censure and fines.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Privacy Regulation</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company is subject to federal and state laws and
regulations that require financial institutions and other businesses to ensure the security and confidentiality of nonpublic personal information, including laws that regulate use and disclosure of, among others, social security numbers and health
information. Federal and state laws require notice to affected individuals, law enforcement, regulators and others if there is a breach of the security of certain personal information, including social security numbers and health information.
Federal regulations require financial institutions and creditors to implement effective programs to detect, prevent, and mitigate identity theft. Federal and state laws and regulations regulate the ability of financial institutions to make
telemarketing calls and to send unsolicited commercial e-mail, text or fax messages to consumers and customers. Federal laws and regulations regulate the permissible uses of certain personal information, including consumer report information.
Federal and state legislatures and regulatory bodies may expand regulation regarding these subjects and the privacy and security of personal information.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-8</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 <A name="50179f4b-97cc-47b9-930c-435f8406354e_9"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">ERISA</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">On December 13, 1993, the U.S. Supreme Court
issued its opinion in John Hancock Mutual Life Insurance Company v. Harris Trust and Savings Bank, holding that certain assets in excess of amounts necessary to satisfy guaranteed obligations held by Hancock in its general account under a
participating group annuity contract are "plan assets" and therefore subject to certain fiduciary obligations under the Employee Retirement Income Security Act of 1974 ("ERISA"). ERISA requires that fiduciaries perform their duties solely in the
interest of ERISA plan participants and beneficiaries, and with the care, skill, prudence and diligence that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and
with like aims. The Court imposed ERISA fiduciary obligations to the extent that the insurer's general account is not reserved to pay benefits under guaranteed benefit policies (i.e., benefits whose value would not fluctuate in accordance with the
insurer's investment experience).</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Tax Matters</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">NLIC files a consolidated federal income tax return with its
subsidiaries and is eligible to join the NMIC consolidated tax return group in 2015.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Life insurance products may be used to provide income tax
deferral and income tax free death benefits. Annuity contracts may be used to provide income tax deferral. The value of these benefits is related to the level of income tax rates and capital gains tax rates. Changes to the income tax rates and the
capital gains tax rates can affect the value of these benefits, and therefore the desirability of those products.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The U.S. Congress periodically has considered possible
legislation that, if enacted, could materially reduce or eliminate many of the tax advantages of purchasing and owning annuity and life insurance products. Recent legislative proposals have included provisions that, if enacted, would (a) disallow a
portion of the income tax interest deduction for many businesses that own life insurance; (b) alter the calculation of a life insurance company's separate account dividends received deductions; (c) impose a "financial crisis responsibility fee" on
certain insurance companies (described below); (d) impose additional information reporting requirements with respect to variable insurance products and resales of certain life insurance contracts; and (e) alter the calculation of the amount of an
insurance's company's policy acquisition expenses that must be capitalized and amortized rather than deducted currently. In addition, Congress is considering proposals to further limit contributions to retirement plans and accelerate the
distributions from such plans after the death of the participant. If these proposals or other changes affecting the taxation of life insurance and/or annuity contracts, or the qualification requirements for retirement plans were to be enacted, the
Company's sale of COLI, BOLI, variable annuities, variable life products and other retirement plan products could be adversely affected.</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">Additional changes to the Code to address the fiscal challenges currently
faced by the federal government may also be made. These changes could include changes to the taxation of life insurance, annuities, mutual funds, retirement savings plans, and other investment alternatives offered by the Company. Such changes could
have an adverse impact on the desirability of the products offered by the Company.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Legal Proceedings</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See Note 16 to the audited consolidated financial statements
included in the F pages of this report for a description of litigation and regulatory actions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Employees</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">As of December 31, 2014, the Company had
approximately 3,242 employees, none of which were covered by a collective bargaining agreement.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Risk Factors</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Risks Related to Economic and Financial Market
Conditions</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Adverse capital and credit market conditions
may significantly affect the Company's ability to meet liquidity needs and access the capital required to operate its business, most significantly its insurance operations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's insurance, annuity and investment products, as
well as its investment returns and access to and cost of financing, are sensitive to disruptions, uncertainty or volatility in the capital and credit markets, thereby ultimately impacting the Company's profitability and ability to support or grow
its businesses. In the insurance industry, liquidity refers to the ability of an enterprise to generate adequate amounts of cash from its normal operations in order to meet its</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-9</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">financial commitments. The principal sources of the Company's liquidity are
insurance premiums, annuity considerations, deposit funds and cash, including from its investment portfolio and assets. Sources of liquidity also include a variety of short- and long-term debt instruments, including repurchase agreements,
intercompany borrowings, FHLB programs, commercial paper, lines of credit and long-term debt.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In the event current resources do not satisfy the Company's
needs, the Company may have to seek additional financing. The availability of additional financing will depend on a variety of factors, including capital and credit market conditions, the availability of credit generally and specifically to the
financial services industry, market liquidity, the Company's credit ratings, as well as the possibility that customers or lenders could develop a negative perception of the Company's long- or short-term financial prospects if it incurs large
investment losses or if the level of business activity decreases. Similarly, the Company's access to funds may be impaired if regulatory authorities or rating agencies take negative actions against it. The Company's internal sources of liquidity may
prove to be insufficient, and in such case, it may not be able to successfully obtain additional financing on favorable terms, or at all.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As such, the Company may be forced to issue securities with
terms and conditions that may be unfavorable to it, bear an unattractive cost of capital or sell certain assets, any of which could decrease the Company's profitability and significantly reduce its financial flexibility. The Company's results of
operations, financial condition and cash flows could be materially adversely affected by disruptions in the capital and credit markets.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company is exposed to significant financial market risk,
which may adversely affect its results of operations and financial condition, and may cause the Company's net investment income to vary from period to period.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company is exposed to significant financial market risk,
including changes in interest rates, credit spreads, equity prices, real estate values, foreign currency exchange rates, domestic and foreign market volatility, the performance of the economy in general, the performance of specific obligors,
included in its portfolio and other factors outside the Company's control.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's exposure to interest rate risk relates primarily
to the market price and cash flow variability associated with changes in interest rates. The Company's investment portfolio contains interest rate sensitive instruments, such as bonds and derivatives, which may be adversely affected by changes in
interest rates from governmental monetary policies, domestic and international economic and political conditions, and other factors beyond its control. U.S. long-term interest rates remain at relatively low levels by historical standards. During
periods of low or declining interest rates, as cash becomes available from premiums on insurance and annuity policies and from the maturity, redemption or sale of existing securities or from other sources, the yield on the new investments purchased
will be lower than that on existing investments, thus lowering the average yield that the Company earns on its investment portfolio. Additionally, during periods of declining interest rates, the economic hedges designed to protect statutory capital
will experience losses. Conversely, inflation may increase and interest rates may suddenly spike, which could have a material affect on the Company's results of operations, insofar as inflation may affect interest rates. Although the Company seeks
to carefully measure and manage its interest rate risk positions, the Company's estimate of the liability cash flow profile may be inaccurate, and it might need to sell assets in order to cover the liability, which could adversely affect the
Company's financial position and results of operations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's insurance and investment products are also
sensitive to interest rate fluctuations and expose the Company to the risk that falling interest rates or credit spreads will reduce the Company's margin, or the difference between the returns earned on the investments that support the obligations
under these products and the amounts that must be paid to policyholders and contractholders. Because the Company may reduce the interest rates credited on most of these products only at limited, pre-established intervals, and because some contracts
have guaranteed minimum interest crediting rates, declines in interest rates may adversely affect the profitability of these products. There may be economic scenarios, including periods of rising interest rates, which could increase life insurance
policy loan, surrender, and withdrawal activity in a given period. Such situations could result in cash outflows requiring that the Company sell investments at a time when the prices of those investments are adversely affected, which may result in
realized investment losses. Unanticipated withdrawals and terminations may also cause the Company to accelerate the amortization of DAC and other expenses, which reduces net income in the period of the acceleration.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's exposure to credit spreads primarily relates to
market price and cash flow variability associated with changes in credit spreads. A widening of credit spreads would increase unrealized losses in the investment portfolio and, if issuer credit spreads increase as a result of fundamental credit
deterioration, would likely result in higher other-than-temporary impairments. Credit spread tightening will reduce net investment income associated with new purchases of</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-10</DIV> </DIV>
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">fixed securities. In addition, market volatility can make it difficult to
value certain of the Company's securities if trading becomes less frequent. As such, valuations may include assumptions or estimates that may have significant period-to-period changes due to market volatility, which could have a material adverse
effect on the Company's results of operations or financial condition.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company invests or may invest a portion of its portfolio
in alternative investments, such as private equity funds, real estate funds, and hedge funds. Quarterly fluctuations in the net investment income of the Company can be affected by changes in the underlying value of the investments. In addition, the
timing and quality of distributions from such funds, which depend on particular events relating to the underlying investments, as well as the funds' schedules for making distributions, can be inherently difficult to predict.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's exposure to equity risk relates primarily to the
potential for lower earnings associated with certain of the Company's insurance businesses, such as variable annuities, and investment advisory business, in each case where fee income is generally earned based upon the fair value of the assets under
management. In addition, certain of the Company's annuity products offer guaranteed benefits, which increase its potential benefit exposure. Statutory reserve and capital requirements for these products are sensitive to market movements, which could
deplete capital. Increased reserve and capital requirements could lead to rating agency downgrades.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company is exposed to many different industries, issuers,
and counterparties, and routinely executes transactions with counterparties in the financial services industry, including brokers and dealers, commercial banks, investment banks, hedge funds and other investment funds and institutions. Many of these
transactions expose the Company to credit risk in the event of default of the counterparty. While counterparty risk is generally secured, the Company's credit risk may be exacerbated when the collateral held by the Company cannot be realized upon or
is liquidated at prices not sufficient to recover the full amount of the loan or derivative exposure due to it. The Company may have further exposure to these issuers in the form of holdings in unsecured debt instruments, derivative transactions and
stock investments of these issuers. There can be no guarantee that any such realized losses or impairments to the carrying value of these assets would not materially and adversely affect the Company's business, results of operations, and financial
condition.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For additional information on market risk,
see <FONT style="font-style:italic;">Qualitative and Quantitative Disclosures about Market Risk</FONT>.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Guarantees within certain of the Company and its insurance
entities' products may adversely affect the Company's financial condition or results of operations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Certain of the Company's variable annuity
products include guaranteed benefits, including five primary guarantee types: (1) GMDB; (2) guaranteed living withdrawal benefits ("GLWB"); (3) guaranteed minimum accumulation benefits ("GMAB"); (4) guaranteed minimum income benefits ("GMIB") and;
(5) a hybrid guarantee with GMAB and GLWB.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Periods of
significant and sustained downturns in equity markets, increased equity volatility, and/or reduced interest rates could result in an increase in the valuation of the future policy benefit or policyholder account balance liabilities associated with
such products, resulting in a reduction to net income. In addition, significant increases in interest rates can have an adverse impact on the statutory capital of NLIC and NLAIC. NLIC and NLAIC enter into interest rate swap transactions which are
structured to provide an offset against the negative impact of higher interest rates on the Company's capital position. NLIC uses derivative instruments to mitigate the liability exposure and the volatility of net income associated with these
liabilities.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company may also choose not to hedge,
in whole or in part, these or other risks that it has identified, due to, for example, the availability and/or cost of a suitable derivative financial instrument or in reaction to extreme credit, equity market, and/or interest rate levels or
volatility.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See Note 2 and Note 7 to the audited
consolidated financial statements in the F pages of this report for additional information regarding the Company's use of derivatives instruments.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">NLIC remains ultimately liable for the guaranteed benefits and
are subject to the risk that reinsurers or derivative counterparties are unable or unwilling to pay. In addition, NLIC is subject to the risk that hedging and other risk management procedures prove ineffective, or the estimates and assumptions made
in connection with their use fail to reflect or correspond to the actual liability exposure or that unanticipated policyholder behavior or mortality, combined with adverse market events, produces economic losses beyond the scope of the risk
management techniques employed. NLIC is also subject to the risk that the cost of hedging these guaranteed minimum benefits materially increases as implied volatilities increase and/or interest rates decrease, and as central clearing of derivatives
becomes more prevalent. These risks, individually or collectively, may have a material adverse effect on the Company's financial condition or results of operations.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-11</DIV> </DIV>
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<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For additional information on guaranteed benefits in the
Company's products, see Note 4 to the audited consolidated financial statements included in the F pages of this report.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The impact on distributors, vendors and customers of sustained
or significant deterioration in economic conditions could adversely affect the Company's business.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company is exposed to risks associated with the potential
financial instability its customers and distributors, many of whom may be adversely affected by volatile conditions in the financial markets or an economic slowdown. As a result of uncertainties with respect to financial institutions and the global
credit markets, increases in energy costs, and other macroeconomic challenges currently or potentially affecting the economy of the U.S. and other parts of the world, customers and distributors may experience serious cash flow problems and other
financial difficulties. As a result, they may modify, delay, or cancel plans to buy or sell the Company's products, or make changes in the mix of products bought or sold, that are unfavorable to the Company.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In addition, the Company is susceptible to risks associated
with the potential financial instability of the vendors on which the Company relies to provide services or to whom the Company delegates certain functions. The same conditions that may affect the Company's distributors also could adversely affect
the Company's vendors, causing them to significantly and quickly increase their prices or reduce their output. The Company's business depends on its ability to perform, in an efficient and uninterrupted fashion, its necessary business functions, and
any interruption in the services provided by third parties also could adversely affect the Company's cash flow, profitability and financial condition.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Risks Related to Investments</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Some of the Company's investments are relatively illiquid.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company holds certain investments that may lack liquidity,
such as certain fixed maturity securities (including privately placed bonds and structured securities based upon residential or commercial mortgage loans or trust preferred securities), mortgage loans, policy loans, equity real estate, including
real estate joint ventures, and other limited partnership interests.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If the Company requires significant amounts of cash on short
notice in excess of normal cash requirements or is required to post or return collateral in connection with the investment portfolio, derivatives transactions or securities lending activities, the Company may have difficulty selling these
investments in a timely manner, be forced to sell them for less than the Company otherwise would have been able to realize, or both.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company does not have the intent to
sell, nor is it more likely than not that it will be required to sell, debt securities in an unrealized loss position. Investment losses, however, may be realized to the extent liquidity needs require the disposition of debt securities in
unfavorable interest rate, liquidity or credit spread environments.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company has exposure to mortgage-backed securities, which
could cause declines in the value of its investment portfolio.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Securities and other capital markets
products connected to residential mortgage lending, particularly those backed by non-agency loans, may become less liquid. The value of the Company's investments in mortgage-backed securities may be negatively impacted by an unfavorable change in or
increased uncertainty regarding delinquency rates, foreclosures, home prices, and refinancing opportunities. In addition, securities backed by commercial mortgages are sensitive to the strength of the related underlying mortgage loans, the U.S.
economy, and the supply and demand for commercial real estate. Deterioration in the performance of the residential and commercial mortgage sector could cause declines in the value of that portion of the Company's investment portfolios.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Defaults on commercial mortgage loans and volatility in
performance may adversely affect the Company's results of operations and financial condition.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Commercial mortgage loans could face
heightened delinquency, refinancing, and default risk under adverse economic conditions. As such, these risks could lead to declining values on certain of such instruments. The performance of the Company's commercial mortgage loan investments may
fluctuate in the future. An increase in the default rate of the Company's commercial mortgage loan investments or a borrower's inability to refinance or pay off its loan at maturity could have an adverse effect on its results of operations and
financial condition. If these loans are not refinanced or paid in full at maturity, the Company's mortgage loan investments could be adversely affected. Any geographic or sector concentration of the Company's commercial mortgage loans may have
adverse effects on its investment portfolio and, consequently, on its results of operations or financial condition. While the Company seeks to mitigate this risk by having a broadly diversified portfolio, events or developments that have a negative
effect on any particular geographic region or sector may have a greater adverse effect on its investment portfolio to the extent that the portfolio is concentrated.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-12</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_13"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The determination of the amount of allowances and impairments
taken on the Company's investments are judgmental and could materially impact its results of operations or financial position.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's determination of the amount of allowances and
impairments varies by investment type and is based on its periodic evaluation and assessment of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new
information becomes available. The Company updates its evaluations regularly and reflects changes in allowances and impairments in operations as such evaluations are revised. Market volatility can make it more difficult to value the Company's
securities if trading in such securities becomes less frequent. In addition, a forced sale by holders of large amounts of a security, whether due to insolvency, liquidity, or other issues with respect to such holders, could result in declines in the
price of a security. There can be no guarantee that the Company has accurately assessed the level of impairments taken and allowances reflected in the financial statements. Furthermore, additional impairments may need to be taken or allowances
provided for in the future. Historical trends may not be indicative of future impairments or allowances.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For additional information on the Company's allowance and
impairment review process, see Note 2 to the audited consolidated financial statements included in the F pages of this report.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company values investments at both cost and fair value,
which may be significantly different than the values used for purposes of the Company's financial statements.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's investments primarily consist of fixed maturity
securities, short-term investments, mortgage loans, policy loans and alternative investments. On the basis of U.S. generally accepted accounting principles ("GAAP"), the carrying value of such investments is as follows:</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Fixed maturity securities,
except those considered trading securities, are primarily classified as available-for-sale and are reported at their fair value. Unrealized gains and losses on these securities are recorded as a separate component of other comprehensive income or
loss, net of policyholder related amounts and deferred income taxes. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">Short-term investments
 include investments with remaining maturities of one year or less at the time of acquisition and are reported at fair value. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:20pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Mortgage loans are recorded
at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses and allowances. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Policy loans are carried at
unpaid principal balances. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">Alternative
 investments are generally reported based on the equity method of accounting. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Investments not carried at fair value in the
Company's financial statements (principally mortgage loans and alternative investments) may have fair values which are substantially higher or lower than the carrying value reflected in the Company's financial statements. Each such asset class is
regularly evaluated for impairment under the accounting guidance appropriate to the respective asset class.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company's valuation of fixed maturity securities may include
methodologies, estimates and assumptions which are subject to differing interpretations and could result in changes to investment valuations that may materially adversely affect the Company's results of operations or financial condition.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Fixed maturity securities and certain other investments are
reported at fair value on the balance sheet. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company
categorizes these securities into a three-level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities
(Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the
fair value measurement of the instrument in its entirety.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The determination of fair values in the
absence of quoted market prices is based on valuation methodologies, values of securities the Company deems to be comparable and assumptions deemed appropriate given the circumstances. The use of different methodologies and assumptions may have a
material effect on the estimated fair value amounts. Further, rapidly changing and unprecedented credit and equity market conditions could materially impact the valuation of securities as reported within the Company's consolidated financial
statements and the period-to-period changes in value could vary significantly. Decreases in value may have a material adverse effect on the Company's results of operations or financial condition.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-13</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_14"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For additional information on the Company's fair value
categories and valuation methodologies, see Note 2 to the audited consolidated financial statements included in the F pages of this report.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Risks Related to the Legal and Regulatory
Environment of the Insurance Industry</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Certain changes in
accounting and/or financial reporting standards issued by the Financial Accounting Standards Board, the Securities and Exchange Commission, the National Association of Insurance Commissioners, state insurance departments or other standard-setting
bodies could have a material adverse impact on the Company's financial condition or results of operations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company is subject to the application of GAAP, which is
periodically revised and/or expanded. As such, the Company is required to adopt new or revised accounting and/or financial reporting standards issued by recognized accounting standard setters or regulators, including the Financial Accounting
Standards Board ("FASB") and the SEC. It is possible that future requirements could change the Company's current application of GAAP, resulting in a material adverse impact on the Company's financial condition or results of operations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In addition, the Company's insurance entities are required to
comply with the Statutory Accounting Principles ("SAP") established by the NAIC and adopted and administered by state departments of insurance. The various components of SAP (such as actuarial reserve methodologies) are currently subject to review
by the NAIC and its task forces and committees, as well as state insurance departments, in an effort to address emerging issues and otherwise improve or alter financial reporting. The NAIC is working to reform state regulation in various areas,
including comprehensive reforms relating to life insurance reserves and the accounting for such reserves. The Company cannot predict whether or in what form reforms will be enacted and, if so, whether the enacted reforms will positively or
negatively affect the Company's insurance entities. Calculations made in accordance with SAP govern the ability of the Company's insurance entities to pay dividends to their respective parent companies.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NAIC Accounting Practices and Procedures Manual (the
"Accounting Manual") provides that state insurance departments may permit insurance companies domiciled therein to depart from SAP through prescribed practices or by granting them permitted practices. Olentangy was granted a permitted practice from
the State of Vermont that increased NLAIC's valuation of this subsidiary by $66 million as of December 31, 2014 and 2013, which also allowed NLIC to admit additional deferred tax assets of $10 million as of December 31, 2014 and 2013. However, the
Company cannot predict what permitted and prescribed practices any applicable state insurance department may allow or mandate in the future, nor can the Company predict whether or when the insurance departments of states of domicile of the Company's
competitors may permit them to utilize advantageous accounting practices that depart from SAP. Moreover, although states generally defer to interpretations of the insurance department of the state of domicile with respect to the application of
regulations and guidelines, neither the action of the domiciliary state nor the action of the NAIC is binding on a non-domiciliary state. Accordingly, a state could choose to follow a different interpretation. The Company can give no guarantees that
future changes to SAP or components of SAP or the granting of permitted practices to the Company's competitors will not have a materially negative impact on the Company's financial condition or results of operations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company's insurance entities are subject to extensive
regulation.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's insurance entities are subject
to extensive state regulatory oversight in the jurisdictions in which each does business as well as to federal oversight in some aspects of their business. Insurance companies are regulated by the insurance departments of the states in which they
are domiciled or licensed. State insurance authorities have broad administrative powers with respect to various aspects of the insurance business. The Company could be adversely affected by, among other things, changes in state law relating to
marketing, privacy, acquisitions, payment of dividends, reinsurance, the form and content of insurance policies (including pricing), licensing, regulation of premium rates, premium tax increases, rating and underwriting restrictions and limitations,
asset and reserve valuation requirements, enterprise risk management, surplus requirements, limitations on investments, accounting standards, and RBC requirements. Also, applicable state insurance laws, rather than federal bankruptcy laws, apply to
the liquidation or restructuring of insurance companies. The primary purpose of such regulatory supervision is to protect policyholders, rather than the Company. Changes in regulations, or in the interpretation or application of existing laws or
regulations, may adversely impact pricing, capital requirements, reserve adequacy, or exposure to litigation and could increase the costs of regulatory compliance. The Company cannot predict the effect that any proposed or future legislation or
change in the interpretation or application of existing laws or regulations may have on its financial condition or results of operations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">From time to time, increased scrutiny has been placed upon the
U.S. insurance regulatory framework, and a number of state legislatures have considered or enacted legislative measures that alter, and in many cases increase, state authority to regulate insurance and reinsurance companies. In addition to
legislative initiatives of this type, the NAIC and insurance</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-14</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 <A name="50179f4b-97cc-47b9-930c-435f8406354e_15"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">regulators are regularly involved in a process of re-examining existing laws
and regulations and their application to insurance and reinsurance companies and may impose changes in the future that put further regulatory burdens on insurers and, thus, could have an adverse effect on NLIC and NLAIC's results of operations and
financial condition. Changes are often implemented in order to benefit policyholders to the detriment of insurers.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">At the federal level, the Company could be affected by laws
and regulations that may affect certain aspects of the insurance industry. While the federal government in most contexts currently does not directly regulate the insurance business, federal legislation and administrative policies in a number of
areas, including limitations on antitrust immunity, minimum solvency requirements, systemic risk regulation, grant of resolution authority to a federal agency, uniform market conduct standards, credit for reinsurance initiatives, other proposals at
the federal level to replace or streamline state regulatory processes, employee benefits regulation, age, sex and disability-based discrimination, financial services regulation, and federal taxation, can significantly affect the insurance
business.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">This state regulatory oversight and various
proposals at the federal level could in the future adversely affect the Company's ability to sustain adequate returns in certain lines of business. It is not possible to predict the future impact of changing regulation on the Company's financial
condition or results of operations.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Dodd-Frank Act and
certain other potential changes in federal laws and regulations may adversely affect the Company's business, results of operations and financial condition.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In July 2010, Congress passed, and the President signed, the
Dodd-Frank Act. Policy and rulemaking conducted after the enactment of the Dodd-Frank Act has and will continue to significantly change financial regulation. The Company cannot predict the full impact this financial reform legislation will have on
its business, results of operations or financial condition. The full impact of the Dodd-Frank Act on the Company will not be determined until the numerous regulations required by the act are finalized. However, the Company has been or anticipates
that its business and operations will be affected in at least the following ways:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Title I of the Dodd-Frank
Act. Title I of the Dodd-Frank Act established the Financial Stability Oversight Council ("FSOC") which has authority to designate non-bank financial companies as systemically important financial institutions ("non-bank SIFIs") thereby subjecting
them to enhanced prudential standards and supervision by the Board of Governors of the Federal Reserve System ("Federal Reserve"). The prudential standards for non-bank SIFIs include enhanced RBC requirements, leverage limits, liquidity
requirements, single counterparty exposure limits, governance requirements for risk management, stress test requirements, special debt-to-equity limits for certain companies, early remediation procedures and recovery and resolution planning. If FSOC
were to determine that NMIC is a non-bank SIFI, NMIC would become subject to certain of these enhanced prudential standards, which could adversely affect the Company. The Federal Reserve also indicated that it may apply certain of these enhanced
prudential standards to savings and loan holding companies ("SLHCs"), like NMIC and NFS, as the safety and soundness regulator for these institutions. It remains unclear the extent to which any of these enhanced prudential standards will be extended
to SLHCs. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:4.29%;margin-top:9pt;width:93.35%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">As a financial company with
total consolidated assets greater than $10 billion, NMIC is subject to stress testing requirements developed by the Federal Reserve to determine whether, on a consolidated basis, NMIC has the capital necessary to absorb losses as a result of adverse
economic conditions. NMIC will be required to conduct company-run annual stress tests to be provided to the Federal Reserve. The Company cannot predict the manner in which the stress tests will ultimately be designed, conducted and disclosed with
respect to NMIC or whether the results of such stress tests will cause an alteration to the Company's business practices or affect the perceptions of regulators, rating agencies, customers, counterparties or investors. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.01%;">FSOC may
recommend that state insurance regulators or other regulators apply new or heightened safeguards for activities or practices in which the Company or other financial services companies engage in that FSOC determines could create or increase the risk
that significant liquidity, credit or other problems might spread among financial companies. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:20pt;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Title II of the Dodd-Frank
Act. Title II of the Dodd-Frank Act provides that a financial company may be subject to a special orderly liquidation process outside the federal bankruptcy code, administered by the Federal Deposit Insurance Corporation ("FDIC") as receiver, upon a
determination that the company is in default or danger of default and presents a threat to the financial stability of the U.S. The Company cannot predict how its creditors will evaluate this potential or whether it will impact financing or hedging
costs. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">Title III
of the Dodd-Frank Act. Title III of the Dodd-Frank Act transferred to the Federal Reserve the supervisory and regulatory authority of the Office of Thrift Supervision over SLHCs. As a registered SLHC, NMIC and NFS are now subject to the rulemaking
authority of the Federal Reserve and the supervision and examination authority of the Federal Reserve under HOLA. The Federal Reserve uses a consolidated supervisory framework to supervise SLHCs with over $50 billion in total consolidated assets.
This framework consists of on-site inspections and </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-15</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_16"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.25%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">continuous monitoring
activities related to capital and liquidity planning and positions, corporate governance, recovery planning, management of core business lines, and support of banking offices. The Federal Reserve has also extended to SLHCs certain of its Regulation
Y reporting obligations, which were previously only required of bank holding companies. Under Section 171 of the Dodd-Frank Act, the Federal Reserve is also required to establish consolidated RBC and leverage capital requirements for SLHCs. The
Federal Reserve issued final regulations in July 2013, but temporarily exempted from these final regulations SLHCs that are substantially engaged in insurance underwriting activities until the Federal Reserve can develop an appropriate framework for
such companies. The Company cannot predict the manner in which these consolidated capital requirements will be extended to SLHCs that are substantially engaged in insurance underwriting activities, and whether such requirements will cause an
alteration to its business practices or affect the perceptions of regulators, rating agencies, customers, counterparties or investors. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Title V of the Dodd-Frank
Act. Title V of the Dodd-Frank Act established the Federal Insurance Office ("FIO") within the U.S. Department of the Treasury ("Treasury"), which has the authority, on behalf of the U.S., to participate in the negotiations of international
insurance agreements with foreign regulators, as well as to collect information about the insurance industry and recommend prudential standards. While not having a general supervisory or regulatory authority over the business of insurance, the
director of the FIO will perform various functions with respect to insurance (other than health insurance), including serving as a non-voting member of FSOC and making recommendations to FSOC regarding insurers to be designated for more stringent
regulation. On December 12, 2013, the FIO issued a report to Congress setting forth recommendations on modernization of the system of insurance regulation in the U.S. The report raised the possibility of a greater role for the federal government if
states do not achieve greater uniformity in their laws and regulations. On September 24, 2014, the FIO released its second Annual Report on the Insurance Industry in which it updated several of the issues discussed in the 2013 modernization report.
The Company cannot predict whether any such legislation or regulatory changes will be adopted, or what impact they will have on the Company's business, financial condition or results of operations. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Title VI of the Dodd-Frank
Act. Title VI of the Dodd-Frank Act introduced Section 619, which amended the Bank Holding Company Act of 1956 ("BHCA") (together, with applicable regulations, the "Volcker Rule"). The Volcker Rule, among other things, generally prohibits
proprietary trading and sponsorship of, and investment in, covered funds, including, but not limited to, hedge funds and private equity funds, for institutions affiliated with depository institutions, subject to certain exceptions. As a result of
their status as regulated insurance companies engaging in otherwise permitted activities, NLIC and NLAIC's investment activities from its general and separate accounts are permissible under the Volcker Rule, but the future value and liquidity of
such investments may be impacted by market conditions. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">Title VII
of the Dodd-Frank Act. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:38pt;margin-top:0pt;width:93.35%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">Title VII of the Dodd-Frank
Act creates a new framework for regulation of the over-the-counter ("OTC") derivatives markets which could impact NLIC and NLAIC's derivative activities. Under this new regulatory regime, the Commodity Futures Trading Commission ("CFTC") regulates
"swaps," the SEC regulates "security-based swaps" and both commissions jointly regulate "mixed swaps" (collectively referred to herein as "swaps"). </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">The Dodd-Frank Act generally
requires swaps, subject to a determination by the CFTC or the SEC as to which swaps are covered, entered into by all counterparties except certain non-financial end users to be cleared through a regulated clearinghouse. In addition, certain swaps
subject to the mandatory clearing requirement may be required to be executed through regulated exchanges or execution facilities. The CFTC has made a determination that certain categories of swaps, including certain types of interest rate swaps and
credit default swaps, are required to be cleared and it is anticipated that other categories of swaps will become subject to this requirement in the future. The CFTC has also made a determination that a subset of these swaps must be executed on a
registered swap execution facility or derivatives contract market; additional categories of swaps will become subject to this requirement in the future. In April 2013, the CFTC adopted a rule to exempt swaps between certain affiliated entities
within a corporate group from the mandatory clearing requirement. This exemption may be available for swaps entered into among the Company and its affiliates, subject to certain conditions, including compliance with documentation and reporting
requirements. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">Swap dealers and major swap
participants ("MSPs") are required to be registered and are subject to significant regulatory requirements, including requirements relating to capital and margin (i.e., collateral), business conduct and reporting. NLIC and NLAIC should not be
considered swap dealers or MSPs and therefore will not be directly subject to the requirements applicable to these categories of registered entities; however, many of NLIC and NLAIC's counterparties will be swap dealers and as such will be subject
to these requirements. These requirements have increased and will continue to increase OTC derivatives dealers' costs, and these increased costs may be passed on to NLIC and NLAIC. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.01%;">The SEC
and CFTC have issued regulations defining "swaps" and are required by the Dodd-Frank Act to determine whether "stable value contracts" ("SVCs") fall within the definition of a "swap," and, if so, whether it would be appropriate to exempt SVCs from
such definition. In addition, various other products offered by NLIC </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-16</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_17"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:6.65%;margin-top:0pt;width:93.35%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.17%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.83%; ">and NLAIC insurance
subsidiaries might be treated as swaps, although the Company believes such treatment is unlikely. If these products are regulated as swaps, NLIC and NLAIC cannot predict how the rules would be applied to such products or the effect on their
profitability or attractiveness to its clients. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.01%;">Finally,
the new regulatory scheme imposed on all market participants may increase the costs of hedging generally and, because banking institutions will be required to conduct at least a portion of their OTC derivatives businesses outside their depository
institutions, may affect the credit risk these counterparties pose to NLIC and NLAIC and the degree to which it is able to enter into transactions with such counterparties. NLIC and NLAIC cannot predict the effect of the foregoing on its hedging
costs, its hedging strategy or implementation thereof or whether it will need or choose to increase and/or change the composition of the risks it does not hedge. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:20pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Title X of the Dodd-Frank
Act. The Dodd-Frank Act established the Consumer Financial Protection Bureau ("CFPB") as an independent agency within the Federal Reserve to supervise and regulate institutions that provide certain financial products and services to consumers.
Although consumer financial products and services generally exclude the business of insurance, the CFPB does have authority to regulate non-insurance consumer products and services. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Dodd-Frank Act potentially affects such a wide range of
the activities and markets in which the Company engages and participates that it is not possible to anticipate all of the ways in which it could affect the Company. For example, many of the Company's methods for managing risk and exposures are based
upon the use of observed historical market behavior or statistics based on historical models. Historical market behavior may be altered by the enactment of the Dodd-Frank Act. As a result of this enactment and otherwise, these methods may not
accurately predict future exposures, which could be significantly greater than the Company's measures indicate. Potential future federal legislation, regulation, administrative policies and court decisions can also significantly and adversely affect
certain areas of the Company's life insurance and annuity business. In addition to the laws and regulations discussed above, these areas include pension and employee welfare benefit plan regulation, additional financial services regulation and
taxation.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Increased scrutiny of the insurance regulatory
framework in the U.S. may alter, and in many cases increase, state authority to regulate insurance holding companies and insurance companies.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Recently, there has been increased scrutiny of the insurance
regulatory framework in the U.S. and some state legislatures have considered or enacted laws that alter, and in many cases increase, state authority to regulate insurance companies and their holding company systems. In December 2010, the NAIC
adopted a revised version of the Model Insurance Holding Company System Regulatory Act (the "Amended Holding Company Model Act"). The Amended Holding Company Model Act introduces the concept of "enterprise risk" within an insurance holding company
system and imposes more extensive informational requirements on parents and other affiliates of licensed insurers, with the purpose of protecting the licensed companies from enterprise risk, including requiring an annual enterprise risk report by
the ultimate controlling person identifying the material risks within the insurance holding company system that could pose enterprise risk to the licensed companies. In September 2012, the NAIC adopted the Risk Management and Own Risk and Solvency
Assessment Model Act (the "ORSA Model Act"), which requires insurers to maintain a framework for identifying, assessing, monitoring, managing and reporting on the "material and relevant risks" associated with the insurer's (or insurance group's)
current business plans. Under the ORSA Model Act, an insurer must undertake an internal risk management review no less often than annually (but also at any time when there are significant changes to the risk profile of the insurer or its insurance
group) in accordance with the NAIC's ORSA Guidance Manual and prepare a summary report ("ORSA Report") assessing the adequacy of the insurer's risk management and capital in light of its current and future business plans. The ORSA Report will be
filed with a company's lead regulator and will be available to other domiciliary regulators within the holding company system.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Both the Amended Holding Company Model Act and the ORSA Model
Act must be adopted by the individual states for the new requirements to apply to U.S. domestic insurers. Ohio has adopted legislation substantially similar to the ORSA Model Act and the Amended Holding Company Model Act, effective January 1, 2015
and September 4, 2014, respectively. While the Company believes that NLIC and NLAIC, are well prepared to comply with the ORSA Model Act and the Amended Holding Company Model Act as adopted by Ohio, the Company cannot guarantee that the impact of
any NAIC recommendations or proposed or future legislation or rulemaking in the U.S. or elsewhere would not have an adverse effect on the Company's results of operations or financial condition.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-17</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_18"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company could be adversely affected if its controls designed
to ensure compliance with guidelines, policies and legal and regulatory standards are not effective.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's business is highly dependent on the ability to
engage on a daily basis in a large number of insurance underwriting, claims processing and investment activities, many of which are highly complex. These activities often are subject to internal guidelines and policies, as well as legal and
regulatory standards. A control system, no matter how well designed and operated, can provide only reasonable guarantee that the control system's objectives will be met. Ineffective controls could lead to financial loss, unanticipated risk exposure
(including underwriting, credit and investment risk) or damage to the Company's reputation.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Litigation or regulatory actions could have a material adverse
impact on the Company.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Current and future litigation or
regulatory matters may negatively affect the Company by resulting in the payment of substantial awards or settlements, increasing legal and compliance costs, requiring the Company to change certain aspects of its business operations, diverting
management attention from other business issues, harming the Company's reputation with customers or making it more difficult to retain current customers and to recruit and retain employees or agents. See <FONT style="font-style:italic;">"Description
of Business&#8212;Legal Proceedings"</FONT> and Note 16 to the audited consolidated financial statements included in the F pages of this report for a description of litigation and regulatory actions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The amount of statutory capital that the Company and its
insurance subsidiaries have and the amount of statutory capital they must hold can vary significantly from time to time and is sensitive to a number of factors outside of the Company's control, including equity market and credit market conditions
and the regulatory environment and rules.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company
conducts the vast majority of its business through its licensed insurance entities. Insurance regulators and the NAIC prescribe accounting standards and statutory capital and reserve requirements for the Company and its U.S. insurance entities. The
NAIC has established regulations that provide minimum capitalization requirements based on RBC formulas for life companies. The RBC formula for life companies establishes capital requirements relating to insurance, business, asset and interest rate
risk, including equity, interest rate, operational and management and expense recovery risks associated with life and annuity products that contain death benefits or certain living benefits.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In any particular year, statutory surplus amounts and RBC
ratios may increase or decrease depending on a variety of factors, including the amount of statutory income or losses generated by the Company's insurance entities (which itself is sensitive to equity market and credit market conditions), the amount
of additional capital they must hold to support their business growth, changes in equity market levels, changes in reserve requirements, credit market volatility, changes in consumer behavior, the value of certain fixed maturity securities in their
investment portfolios, the value of certain derivative instruments that do not get hedge accounting treatment, changes in interest rates and foreign currency exchange rates, as well as changes to the NAIC RBC formulas. Nationally Recognized
Statistical Rating Organizations ("NRSROs") may also implement changes to their internal models, which differ from the NAIC RBC model, that have the effect of increasing or decreasing the amount of statutory capital that NLIC and NLAIC must hold in
order to maintain their current ratings. Increases in the amount of required statutory reserves reduce the statutory surplus used in calculating the Company's insurance entities' RBC ratios.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's insurance entities' statutory surplus and RBC
ratios have a significant influence on their financial strength ratings, which, in turn, are important to their ability to compete effectively. To the extent that any of the Company's insurance entities' statutory capital resources are deemed to be
insufficient to maintain a particular rating by one or more rating agencies, capital may need to be raised. If we are unable to raise additional capital in such a scenario, any ratings downgrade that followed could have a material adverse effect on
the business, financial condition, results of operations and liquidity. See Note 14 to the audited consolidated financial statements included in the F pages of this report for a further discussion of RBC.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Changes in tax laws could adversely affect the Company.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Changes in tax laws that could adversely affect the Company
include those that reduce or eliminate the tax-deferred accumulation of earnings on the premiums paid by the holders of annuities and life insurance products, that otherwise affect how the benefits provided by life insurance and annuity contracts
are taxed, or that modify the federal estate tax. A federal income surtax of 3.8% effective January 1, 2013, is imposed on certain net investment income (including income from distributions from nonqualified annuity contracts) for individuals with a
modified adjusted gross income in excess of a threshold amount (e.g., $250,000 for married persons who file jointly).</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See <FONT style="font-style:italic;">"Description of
Business&#8212;Regulation&#8212;Tax Matters"</FONT> for a general description of the changes in tax laws and how they could adversely impact the Company.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-18</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Changes to regulations under ERISA could adversely affect the
Company, including its distribution model, by expanding the circumstances under which the Company and its affiliated broker-dealers could be considered ERISA fiduciaries.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The prohibited transaction rules of ERISA and the Code
generally restrict the provision of investment advice to ERISA plans and participants and Individual Retirement Account ("IRAs") owners if the investment recommendation results in additional fees being paid to the individual advisor, his or her firm
or their affiliates that vary according to the investment decision made. In October 2011, the Department of Labor ("DOL") issued final regulations which provide limited relief from these investment advice fiduciary restrictions. As a result of these
regulations, the ability of the Company's affiliated broker-dealers and their registered representatives to provide information to ERISA plans and participants, and with respect to IRAs, is restricted. Also, the fee and revenue arrangements of
certain advisory programs may be required to be revenue neutral, resulting in potential lost revenues for these broker-dealers and their affiliates.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Changes in regulations under ERISA that could adversely affect
the Company include those that impact the sales of group annuities, the availability of, or rules concerning the establishment and operation of, Code Section 401, 403(b) and 457 plans or IRAs and/or individual retirement annuities, and the manner in
which ERISA plans and IRAs may be marketed.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Other
proposed investment advice regulatory initiatives under ERISA may negatively impact the current business model of the Company's broker-dealers. In particular, the DOL issued a proposed regulation in October 2010 that would, if adopted as proposed,
significantly broaden the circumstances under which a person or entity providing investment information with respect to ERISA plans or IRAs would be deemed a fiduciary under ERISA or the Code. If adopted, the proposed regulations may make it easier
for the DOL in enforcement actions, and for plaintiffs' attorneys in ERISA litigation, to attempt to extend fiduciary status to advisors who would not be deemed fiduciaries under current regulations. In May 2014, the DOL announced it will re-propose
these fiduciary definition regulations; however, the re-proposal has been delayed and is expected in early 2015.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In addition, the DOL has issued a number of regulations
recently that increase the level of disclosure that must be provided to plan sponsors and participants. The participant disclosure requirements were issued in final form in October 2010 and became effective in 2012, and the regulations which require
service providers to disclose fee and other information to plan sponsors took effect in 2012. These ERISA disclosure requirements will likely increase the Company's regulatory and compliance burden, resulting in increased costs.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company's risk management policies, practices and procedures
could leave it exposed to unidentified or unanticipated risks, which could negatively affect its business or result in losses.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company has developed risk management policies and
procedures, including hedge programs at NLIC and NLAIC that utilize derivative financial instruments, and expect to do so in the future. Nonetheless, the Company's policies and procedures to identify, monitor, and manage both internal and external
risks may not effectively mitigate these risks or predict future exposures, which could be different or significantly greater than expected. These identified risks may not be the only risks facing the Company. Additional risks and uncertainties not
currently known to the Company, or that it currently deems to be immaterial, may adversely affect its business, financial condition or results.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Changes in state insurance regulations regarding suitability of
annuity product sales may affect the Company's operations and profitability.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's annuity sales practices are subject to strict
regulation. State insurance regulators are becoming more active in adopting and enforcing suitability standards with respect to sales of annuities, both fixed and variable. Any material change to the standards governing the Company's sales
practices, including applicable state laws and regulations, could affect the Company's business and profitability. See <FONT style="font-style:italic;">"Description of Business&#8212;Regulation&#8212;Annuity Sales Practices."</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company may be unable to mitigate the impact of Regulation
XXX and Actuarial Guideline 38, potentially resulting in a negative impact to its capital position and/or a reduction in sales of term and universal life insurance products.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NAIC Model Regulation entitled "Valuation of Life
Insurance Policies," commonly known as "Regulation XXX," establishes statutory reserve requirements for term life insurance policies and universal life insurance policies with secondary guarantees. Actuarial Guideline 38 ("AG38") clarifies the
application of Regulation XXX with respect to certain universal life insurance products with secondary guarantees. The NAIC, through its various committees, task forces, and working groups has been studying the use of captives and special purpose
vehicles to transfer insurance risk-related products subject to Regulation XXX and AG38 and has been evaluating the adequacy of existing NAIC model laws and</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-19</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">regulations applicable to captives. Recently, the NAIC directed its various
committees, task forces, and working groups to develop draft regulatory changes based upon recommendations of its retained consultant for further consideration by the NAIC. There remains uncertainty as to what extent the NAIC and the state
regulators will require changes to future captive reinsurance structures, and what impact these changes will have, if any, on existing captive transactions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company has implemented, and plans to continue to
implement, reinsurance and capital management transactions to mitigate the capital impact of XXX and AG38 on a statutory basis. These arrangements are subject to review by state insurance regulators and rating agencies. If the Company is unable to
mitigate the impact of Regulation XXX and AG38, this may have a negative impact on its financial condition and results of operations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Risks Related to the Business and Operations of the
Company</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company is rated by S&amp;P, Moody's, and A.M.
Best and a decline in ratings could adversely affect the Company's operations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Financial strength and claims-paying ability ratings, which
various NRSROs publish as indicators of an insurance company's ability to meet contractholder and policyholder obligations, are important to maintaining public confidence, an ability to market products and competitive position. Such factors are
important to policyholders, agents and intermediaries; however they are not evaluations directed towards the protection of investors and are not recommendations to buy, sell or hold securities. Downgrades in NLIC and NLAIC's financial strength
ratings could have an adverse effect on their financial condition and certain of their results of operations in many ways, including reducing new sales and renewals of insurance products, annuities, and other investment products, adversely affecting
their relationships with their sales force and independent sales intermediaries, materially increasing the number or amount of policy surrenders and withdrawals by contractholders and policyholders, requiring a reduction in prices to remain
competitive, and adversely affecting their ability to obtain reinsurance at reasonable prices or at all.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Additionally, various NRSROs also publish credit ratings for
NFS and several of its subsidiaries. Credit ratings are indicators of a debt issuer's ability to meet the terms of debt obligations in a timely manner and are important factors in the Company's overall funding profile and ability to access certain
types of liquidity. Downgrades in the credit ratings for the Company could have an adverse effect on their financial condition and results of operations in many ways, including adversely limiting access to capital markets, potentially increasing the
cost of debt, and requiring the posting of collateral.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Ratings are subject to ongoing review by A.M. Best, Moody's,
and S&amp;P, and the maintenance of such ratings cannot be assured. If any rating is reduced from its current level, the Company's financial position and results of operations could be adversely affected. The Company cannot predict what actions
rating agencies may take, or what actions it may take in response to the actions of rating agencies, which could adversely affect its business. As with other companies in the financial services industry, the Company's ratings could be downgraded at
any time and without any notices by any NRSRO.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See <FONT
 style="font-style:italic;">"Description</FONT><FONT style="font-style:italic;"> of Business&#8212;Ratings"</FONT> for further information on current financial strength, claims-paying ability and credit ratings.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">If the Company's business does not perform well or if actual
experience versus estimates used in valuing and amortizing DAC varies significantly, the Company may be required to accelerate the amortization of DAC, which could adversely affect the Company's results of operations or financial condition.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">NLIC and NLAIC incur significant costs in
connection with acquiring new and renewal business. The costs that are directly related to the successful acquisition of new and renewal business are deferred and referred to as DAC. The recovery of DAC is dependent upon the future profitability of
the related business. The amount of future profit or margin primarily is dependent on investment returns in excess of the amounts credited to policyholders, mortality, morbidity, persistency, interest crediting rates, dividends paid to
policyholders, expenses to administer the business, creditworthiness of reinsurance counterparties, and certain economic variables. Of these factors, the Company anticipates that investment returns are most likely to impact the rate of amortization
of such costs. The aforementioned factors enter into management's estimates of gross profits, which generally are used to amortize such costs. If the estimates of gross profits were overstated, then the amortization of such costs would be
accelerated in the period the actual experience is known or when estimates are reevaluated and would result in a charge to income. Significant or sustained equity market declines could result in an acceleration of amortization of DAC related to
variable annuity and variable universal life contracts, resulting in a charge to operations. Additionally, the amortization of DAC can be affected by the change in the valuation of the Company's variable annuity guarantees. Such adjustments could
have a material adverse effect on the Company's results of operations or financial condition.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-20</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
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 <A name="50179f4b-97cc-47b9-930c-435f8406354e_21"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Additional information related to the Company's review of DAC
and variable annuity guarantee assumptions is included in Note 2 to the audited consolidated financial statements included in the F pages of this report.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Deviations from assumptions regarding future persistency,
mortality, morbidity, and interest rates used in calculating reserve amounts could have a material adverse impact on the Company's results of operations or financial condition.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The process of calculating reserve amounts for a life
insurance organization involves the use of a number of assumptions, including those related to persistency (how long a contract stays with a company), mortality, morbidity and interest rates (the rates expected to be paid or received on financial
instruments, including insurance or investment contracts). Actual results could differ significantly from those assumed. As such, significant deviations from one or more of these assumptions could result in a material adverse impact on the Company's
results of operations or financial condition.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Medical
advances, such as genetic research and diagnostic imaging, and related legislation could adversely affect the financial performance of life insurance, long-term care insurance and annuity businesses.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Genetic research includes procedures focused on identifying
key genes that render an individual predisposed to specific diseases, such as particular types of cancer and other diseases. Other medical advances, such as diagnostic imaging technologies, may also be used to detect the early onset of diseases such
as cancer, Alzheimer's and cardiovascular disease. If individuals learn through medical advances that they are predisposed to particular conditions that may reduce life longevity or require long-term care, they will be more likely to purchase life
and long-term care insurance policies or not to permit existing policies to lapse. In contrast, if individuals learn that they lack the genetic predisposition to develop the conditions that reduce longevity or require long-term care, they will be
less likely to purchase life and long-term care insurance products but more likely to purchase certain annuity products. In addition, such individuals that are existing policyholders will be more likely to permit their policies to lapse.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If the Company were to gain access to the same genetic or
medical information as the Company's prospective policyholders and contractholders, then the Company would be able to take this information into account in pricing life and long-term care insurance policies and annuity contracts. However, there have
been a number of legislative and regulatory actions and proposals that make, or could make, genetic and other medical information confidential and unavailable to insurance companies, or prohibit use of genetic and other medical information for
underwriting purposes. Pursuant to these legislative and regulatory actions and proposals, prospective policyholders and contractholders would only disclose this information if they chose to do so voluntarily. These factors could lead the Company to
reduce sales of products affected by these legislative and regulatory actions and proposals and could result in a deterioration of the risk profile of the Company's portfolio, which could lead to payments to policyholders and contractholders that
are higher than anticipated.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Medical advances could also
lead to new forms of preventive care. Preventive care could extend the life and improve the overall health of individuals. If this were to occur, the duration of payments made under certain annuity products likely would increase, thereby reducing
profitability on those products.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">A large scale pandemic or
epidemic, natural and man-made catastrophes, climate change, the continued threat, or acts of, terrorism or ongoing military and other actions may result in decreases in the Company's net income, revenue, and assets under management and may
adversely impact its investment portfolio.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">A large scale
pandemic or epidemic, natural and man-made catastrophes, climate change, the continued threat, or acts of, terrorism within the U.S. and abroad, ongoing military and other actions, and heightened security measures in response to these types of
threats may cause significant volatility and declines in the U.S., European, and other securities markets, loss of life, property damage, additional disruptions to commerce and reduced economic activity. As a result, the Company's net income and/or
revenue, and some of the assets in the Company's investment portfolio, may be adversely affected by declines in the securities markets and economic activity caused by a large scale pandemic or epidemic, natural and man-made catastrophes, climate
change, the continued threat, or acts of, terrorism, ongoing military, and other actions, and heightened security measures.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company cannot predict whether or the extent to which
industry sectors in which it maintains investments may suffer losses as a result of potential decreased commercial and economic activity, how any such decrease might impact the ability of companies within the affected industry sectors to pay
interest or principal on their securities, or how the value of any underlying collateral might be affected.</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-21</DIV> </DIV>
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 <A name="50179f4b-97cc-47b9-930c-435f8406354e_22"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company operates in a highly competitive industry, which can
significantly impact operating results.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company's ability to compete is based on
a number of factors including scale, service, product features, price, investment performance, commission structure, distribution capacity, financial strength ratings and name recognition. The Company competes with a large number of financial
services companies such as banks, mutual funds, broker-dealers, insurers and asset managers, many of which have advantages over the Company in one or more of the above competitive factors. The Company's revenues and profitability could be impacted
negatively due to such competition.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See <FONT
 style="font-style:italic;">"Description of Business&#8212;Competition"</FONT> for a further description of competitive factors affecting the Company.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company's products and services are complex and are
frequently sold through intermediaries, and a failure of such intermediaries to properly perform services or their misrepresentation of the Company's products or services could have an adverse effect on the Company's business, results of operations
and financial condition.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Many of the Company's products
and services are complex and are frequently sold through intermediaries. In particular, the Company is reliant on intermediaries in its unaffiliated distribution channels to describe and explain its products to potential customers. The intentional
or unintentional misrepresentation of the Company's products and services in advertising materials or other external communications, or inappropriate activities by the Company's personnel or an intermediary, could adversely affect the Company's
reputation and business prospects, as well as lead to potential regulatory actions or litigation.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company's business success depends, in part, on effective
information technology systems and on continuing to develop and implement improvements in technology.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company depends in large part on technology systems for
conducting business and processing claims, as well as for providing the data and analytics it utilizes to manage its business, and thus the Company's business success is dependent on maintaining the effectiveness of existing technology systems and
on continuing to develop and enhance technology systems that support its business processes and strategic initiatives in a cost and resource efficient manner. Some system development projects are long-term in nature, may negatively impact the
Company's expense ratios as it invests in the projects and may cost more than the Company expects to complete. In addition, system development projects may not deliver the benefits the Company expects once they are complete, or may be replaced or
become obsolete more quickly than expected, which could result in accelerated recognition of expenses. If the Company does not effectively and efficiently manage and upgrade its technology portfolio, including with respect to the technology
portfolio of its recently acquired businesses, or if the costs of doing so are higher than it expects, the Company's ability to provide competitive services to new and existing customers in a cost effective manner and its ability to implement its
strategic initiatives could be adversely impacted.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The
Company faces a risk of non-availability and increased cost of reinsurance.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Market conditions beyond the Company's control determine the
availability and cost of the reinsurance protection it purchases. The Company can offer no guarantees that reinsurance will remain continuously available to it to the same extent and on the same terms and rates as are currently available. If the
Company is unable to maintain its current level of reinsurance or purchase new reinsurance protection in amounts that it considers sufficient and at prices that it considers acceptable, the Company would either have to be willing to accept an
increase in its net exposures or reduce its insurance writings. A significant reinsurer's insolvency or inability to make payments under the terms of a reinsurance treaty could subject the Company to credit risk with respect to its ability to
recover amounts due from reinsurers. Because of the risks set forth above, the Company may not be able to collect all amounts due to it from reinsurers, and reinsurance coverage may not be available to it in the future at commercially reasonable
rates or at all.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">A breach of information security or other
unauthorized data access could have an adverse impact on the Company's business and reputation.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In the ordinary course of business, the Company collects,
processes, transmits, and stores large quantities of personally identifiable information, customer financial and health information, and proprietary business information (collectively referred to herein as "Sensitive Information"). The secure
processing, storage, maintenance, and transmission of this Sensitive Information are vital to the Company's operations and business strategy. Although the Company undertakes substantial efforts to reasonably protect Sensitive Information, including
internal processes and technological defenses that are preventative or detective, and other commercially reasonable controls designed to provide multiple layers of security, Sensitive Information maintained by the Company may be vulnerable to
attacks by computer hackers, to physical theft by other third party criminals, or to other compromise due to employee error or malfeasance. Attacks may include both sophisticated cyber attacks perpetrated by organized crime groups, "hactivists," or
state-sponsored groups, as well</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-22</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_23"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">as
non-technical attacks ranging from sophisticated social engineering to simple extortion or threats, which can lead to access, disclosure, disruption or further attacks. Such events may expose the Company to civil and criminal liability, regulatory
action, harm its reputation among customers, deter people from purchasing the Company's products, cause system interruptions, require significant technical, legal and other remediation expenses, and otherwise have an adverse impact on its business.
Third parties to whom the Company outsources certain functions are also subject to the risks outlined above, and if such a third party suffers a breach of information security involving the Company's Sensitive Information, such breach may result in
the Company incurring substantial costs and other negative consequences, including a material adverse effect on its business, financial condition, results of operations and liquidity. The Company offers no guarantees that it will be able to
implement information security measures to prevent all breaches of information security.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Losses due to system failures or physical locations being
unavailable to conduct business could have an adverse impact on the Company's business and reputation.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Network, utility, telecommunications,
business systems, hardware, and/or software failures due to a computer virus or cyber-attack, such as a distributed denial of service attack, could prevent the Company from conducting its business for a sustained period of time. The Company's
facilities could be inaccessible due to a disaster, natural or man-made catastrophe, blackout, terrorist attack, or war. Even if the Company's employees are able to report to work, they may be unable to perform their duties for an extended period of
time if the Company's data or systems are disabled or destroyed. The Company could be adversely impacted by any disruption of its ability to conduct business.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Employee error and misconduct may be difficult to detect and
prevent and could adversely affect the Company.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Losses
may result from, among other things, fraud, errors, failure to document transactions properly, failure to obtain proper internal authorization or failure to comply with regulatory requirements. It is not always possible to deter or prevent employee
misconduct and the precautions the Company takes to prevent and detect this activity may not be effective in all cases.</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company's businesses may be adversely affected if it is
unable to hire and retain qualified employees.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">There is
significant competition from within the financial services and life insurance industries and from businesses outside those industries for qualified employees, especially those in key positions and those possessing highly specialized underwriting
knowledge. The Company's performance is largely dependent on the talents, efforts and proper conduct of highly-skilled individuals, including the Company's senior executives. For many of the Company's senior positions, it competes for talent not
just with insurance or financial service companies, but with other large companies and other businesses. The Company's continued ability to compete effectively in its businesses and to expand into new business areas depends on its ability to attract
new employees and to retain and motivate its existing employees. If the Company is not able to successfully attract, retain, and motivate its employees, its business, financial results, and reputation could be materially and adversely
affected.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">The Company may be subject to intellectual
property risk.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company relies on copyright,
trademark, patent, and trade secret laws, as well as various contractual rights and obligations, to protect its intellectual property. Although the Company uses a broad range of measures to protect its intellectual property rights, third parties may
infringe or misappropriate its intellectual property. The Company may resort to litigation in order to enforce its intellectual property rights. Such litigation would represent a diversion of resources that may be significant in amount, and the
final outcome of any litigation cannot be predicted with certainty. The Company's inability to successfully secure or enforce the protection of the Company's intellectual property assets, despite the Company's best efforts, could have a material
adverse effect on its business and ability to compete.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company also may be subject to costly
litigation in the event that another party alleges that its operations or activities infringe upon that party's intellectual property rights. The Company may be subject to claims by third parties for alleged infringement of third party patents,
copyrights, trademarks, trade secrets, or breach of any license. If the Company were found to have infringed any third party intellectual property rights, it could incur substantial liability, and in limited circumstances could be enjoined from
providing certain products or services to its customers. Alternatively, the Company could be required to enter into costly licensing arrangements with third parties to resolve any alleged intellectual property infringement claims brought by third
parties.</DIV> </DIV> <DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-23</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_24"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Acquisitions and integration of acquired businesses may result
in operating difficulties and other unintended consequences.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">From time to time the Company may investigate and pursue
acquisition opportunities if it believes that such opportunities are consistent with its long-term objectives and that the potential rewards of an acquisition justify the risks.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The process of integrating an acquired company or business can
be complex and costly, however, and may create unforeseen operating difficulties and expenditures. Acquired businesses may not perform as projected, any cost savings and other synergies anticipated from the acquisition may not materialize and costs
associated with the integration may be greater than anticipated. Acquired businesses may not be successfully integrated, resulting in substantial costs or delays and adversely affecting the Company's ability to compete. Accordingly, the Company's
results of operations might be materially and adversely affected.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Consolidation of distributors of insurance products may
adversely affect the insurance industry and the profitability of the Company's business.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company distributes many of its individual products
through other financial institutions such as banks and broker&#8722;dealers. An increase in bank and broker&#8722;dealer consolidation activity could increase competition for access to distributors, result in greater distribution expenses and impair
the Company's ability to expand its customer base. Consolidation of distributors and/or other industry changes may also increase the likelihood that distributors will try to renegotiate the terms of any existing selling agreements to terms less
favorable to the Company.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">PROPERTIES</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Pursuant to an arrangement between NMIC and
certain of its subsidiaries, during 2014 the Company occupied on average approximately 541,114 square feet of office space in the four building home office complex and in other offices in central Ohio. The Company believes that its present and
planned facilities are adequate for the anticipated needs of the Company.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">LEGAL PROCEEDINGS</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See Note 16 to the audited consolidated financial statements
included in the F pages of this report for a discussion of legal proceedings.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">There is no established public trading
market for NLIC's shares of common stock. All 3,814,779 issued and outstanding shares of NLIC's common stock are owned by NFS. NLIC did not repurchase any shares of its common stock or sell any unregistered shares of its common stock during
2014.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">NLIC did not pay any dividends or return capital
to NFS during 2014 or 2013. NLIC paid a cash dividend of $40 million to NFS during 2012.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">NLIC currently does not have a formal dividend policy.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">See
<FONT style="font-style:italic;">Business &#8211; Regulation &#8211; Regulation of Dividends and Other Payments and Risk-Based Capital Requirements</FONT> for information regarding dividend restrictions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">SELECTED CONSOLIDATED FINANCIAL DATA</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Five-Year Summary</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:48.00%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:51.11%;" colspan="9">Year
 ended or as of December&#160;31, </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:48.00%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.15%;">2014
<BR> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.15%;">2013
<BR> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.15%;">2012
<BR> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:9.83%;">2011
<BR> (As Adjusted) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:11.83%;">2010
<BR> (As Adjusted) </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.00%;">Statements
 of Operations Data:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.15%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.15%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.15%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:9.83%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:11.83%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.00%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:10.01pt;"></FONT>3,729 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:10.01pt;"></FONT>5,117 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:10.01pt;"></FONT>4,456 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:9.83%;">$
<FONT style="padding-left:10.01pt;"></FONT>2,208 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:11.83%;">$
<FONT style="padding-left:10.01pt;"></FONT>3,254 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.00%;">
<DIV style="float:left;">Net income
(loss)</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:22.51pt;"></FONT>16 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:10.01pt;"></FONT>1,028 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:17.51pt;"></FONT>600 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:9.83%;">$
<FONT style="padding-left:14.51pt;"></FONT>(422) </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:11.83%;">$
<FONT style="padding-left:17.51pt;"></FONT>159 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.00%;">
<DIV style="float:left;">Net income (loss) attributable to
NLIC</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:17.51pt;"></FONT>110 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:10.01pt;"></FONT>1,110 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:17.51pt;"></FONT>661 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:9.83%;">$
<FONT style="padding-left:14.51pt;"></FONT>(366) </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:11.83%;">$
<FONT style="padding-left:17.51pt;"></FONT>219 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.00%;">Balance
 Sheets Data:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.15%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.15%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.15%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.83%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.83%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.00%;">
<DIV style="float:left;">Total
assets</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.15%;">$143,524
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.15%;">$133,445
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.15%;">$120,170
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.83%;">$111,986
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:11.83%;">$106,550
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.00%;">
<DIV style="float:left;">Long-term
debt</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:17.51pt;"></FONT>709 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:17.51pt;"></FONT>707 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:10.01pt;"></FONT>1,038 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:9.83%;">$
<FONT style="padding-left:17.51pt;"></FONT>991 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:11.83%;">$
<FONT style="padding-left:17.51pt;"></FONT>978 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:48.00%;">
<DIV style="float:left;">Shareholder's
equity</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:10.01pt;"></FONT>7,396 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:10.01pt;"></FONT>6,824 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.15%;">$
<FONT style="padding-left:10.01pt;"></FONT>6,384 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:9.83%;">$
<FONT style="padding-left:10.01pt;"></FONT>5,197 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:11.83%;">$
<FONT style="padding-left:10.01pt;"></FONT>5,234 </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-24</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_25"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">In October 2010, the FASB issued ASU
2010-26, which amends FASB ASC 944, Financial Services &#8211; Insurance. The amended guidance modifies the definition of the types of costs incurred by insurance entities that can be capitalized in the acquisition of new and renewal insurance and
investments contracts. The Company adopted this guidance retrospectively, effective January 1, 2012.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
FINANCIAL DISCLOSURE</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Forward-Looking
Information</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The information included herein contains
certain forward-looking statements with respect to the results of operations, businesses and financial condition of the Company made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Whenever used in
this report, words such as "anticipate," "estimate," "expect," "intend," "plan," "believe," "project," "target," "will," "shall," "could," "may" and other words of similar meaning are intended to identify such forward-looking statements. These
forward-looking statements are based on current expectations and involve a number of risks and uncertainties that are difficult to predict. Factors that may cause actual results to differ materially from those expressed or implied in such
forward-looking statements include, among others, the following possibilities:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:9pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.88%;">(i)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">Fluctuations in the results
of operations or financial condition; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:6.88%;">(ii) </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">difficult economic and
business conditions, including financial, capital and credit market conditions as a result of changes in interest rates, equity prices, volatility, yields and liquidity in the equity and credit markets as well as geopolitical conditions and the
impact of political, regulatory, judicial, economic or financial events, including terrorism, epidemics or pandemics, impacting financial markets generally and companies in the Company's investment portfolio specifically; </TD></TR></TABLE> </DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:6.88%;">(iii) </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">changes in certain
accounting and/or financial reporting standards issued by the FASB, SEC or other standard-setting bodies; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.88%;">(iv)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">the ability to maintain the
availability of systems and facilities in the event of a disaster, natural or man-made catastrophe, blackout, terrorist attack or war; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.88%;">(v)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">heightened competition that
affects the cost of, and demand for, the Company's products, including specifically the intensification of price competition, the entry of new competitors, consolidation and the development of new products by competitors; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:6.88%;">(vi) </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">adverse state and federal
legislation and regulation, including, among other things, tax law changes impacting the federal estate tax and tax treatment of life insurance and investment products; limitations on premium levels; increases in minimum capital and reserves and
other financial viability requirements; restrictions on mutual fund administrative service payment arrangements or mutual fund distribution payment arrangements, such as revenue sharing and 12b-1 payments; changes affecting sales practices,
including investigations and/or claims handling and escheat investigations regulatory actions of the DOL under ERISA, rule-making adopted by regulatory authorities under the "Dodd-Frank Act and the FDIA; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.88%;">(vii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">failure to maintain or
expand distribution channels; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.88%;">(viii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">changes in interest rates
and the equity markets causing a reduction in the market value of the Company's investment portfolio, investment income and/or asset fees; an acceleration of the amortization of DAC and other expenses; a reduction in separate account assets or a
reduction in the demand for the Company's products; increased liabilities related to living benefits and death benefit guarantees; or an impact on ultimate realizability of deferred tax assets; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.88%;">(ix)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">outlook changes and
downgrades in the financial strength and claims-paying ability ratings of the Company assigned by NRSROs; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:6.88%;">(x)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:93.12%;">deviations from
 assumptions regarding future persistency, mortality and morbidity rates (including as a result of natural and man-made catastrophes, pandemics, epidemics, malicious acts, terrorist acts and climate change), and interest rates used in calculating
reserve amounts and in pricing products; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:6.88%;">(xi) </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">adverse results and/or
resolution of litigation, arbitration, regulatory investigation and/or inquiry; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:6.88%;">(xii) </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">the availability, pricing
and effectiveness of reinsurance; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:6.88%;">(xiii)
</TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">the effectiveness of
policies and procedures for managing risk; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:6.88%;">(xiv)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:93.12%;">adverse
consequences, including financial and reputational costs, regulatory problems and potential loss of customers resulting from data or other security breaches, a failure to meet privacy regulations, or the inability to protect the Company's or
customers' confidential information; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-25</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_26"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:6.88%;">(xv) </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">the inability to protect
intellectual property and defend against claims of infringement; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.88%;">(xvi)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">realized losses with respect
to impairments of assets in the investment portfolio of the Company; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.88%;">(xvii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.12%; ">exposure to losses related
to variable annuity guarantee benefits, including from downturns and volatility in equity markets; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:6.88%;">(xviii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:93.12%;">defaults
on commercial mortgages and volatility in their performance. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company undertakes no commitment to revise or update any
forward-looking statements as a result of new information, future events or development, except as required by law. For a more complete description of the various risks, uncertainties, and other factors that could affect future results, see <FONT
 style="font-style:italic;">Risk Factors</FONT>.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Overview</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The following discussion provides an
assessment of the financial position and results of operations of the Company for the three years ended December 31, 2014. This discussion and analysis is based on and should be read in conjunction with the audited consolidated financial statements
and related notes beginning on page F-1 of this report.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See<FONT style="font-style:italic;"> Business &#8211;
Overview</FONT> for a description of the Company and its ownership structure.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See <FONT style="font-style:italic;">Business &#8211; Business
Segments</FONT> for a description of the components of each segment and a description of management's primary profitability measure.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Revenues and Expenses</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company earns revenues and generates
cash primarily from policy charges, life insurance premiums and net investment income. Policy charges include asset fees, which are earned primarily from separate account values generated from the sale of individual and group variable annuities and
life insurance products, cost of insurance charges earned on all life insurance products except traditional, which are assessed on the amount of insurance in force in excess of the related policyholder account value, administrative fees, which
include fees charged per contract on a variety of the Company's products and premium loads on universal life insurance products, and surrender fees, which are charged as a percentage of premiums/deposits withdrawn during a specified period for
annuity and certain life insurance contracts. Net investment income includes earnings on investments supporting fixed annuities, the MTN program, FHLB funding agreements and certain life insurance products, and earnings on invested assets not
allocated to product segments, all net of related investment expenses. Other income primarily includes asset fees, administrative fees, commissions and other income earned for providing administrative, marketing and distribution services.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Management makes decisions concerning the sale of invested
assets based on a variety of market, business, tax and other factors. All realized gains and losses generated by these sales, and changes in the valuation allowance not related to specific mortgage loans are reported in net realized investment gains
and losses. Also included in net realized investment gains and losses are changes in the fair values of derivatives qualifying as fair value hedges and the related changes in the fair values of hedged items, the ineffective, or excluded, portion of
cash flow hedges, changes in the fair values of derivatives that do not qualify for hedge accounting treatment, change in fair value of living benefit embedded derivatives, and periodic net amounts paid or received on interest rate swaps that do not
qualify for hedge accounting treatment. All charges related to other-than-temporary impairments of available-for-sale securities, specific mortgage loans and other investments are reported in net realized investment gains and losses.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's primary expenses include interest credited to
policyholder accounts, life insurance and annuity benefits, amortization of DAC and general business operating expenses. Interest credited principally relates to individual and group fixed annuities, funding agreements backing the MTN program, FHLB
funding agreement and certain life insurance products. Life insurance and annuity benefits include policyholder benefits in excess of policyholder accounts for universal life and individual deferred annuities and net claims and provisions for future
policy benefits for traditional life insurance products and immediate annuities.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Profitability</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's profitability largely depends on its ability to
effectively price and manage risk on its various products, administer customer funds and control operating expenses. Lapse rates on existing contracts also impact profitability. The lapse rate and distribution of lapses affect surrender charges and
impact DAC amortization assumptions when lapse experience changes significantly.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">In particular, the Company's profitability
is driven by fee income on separate account products, general and separate account asset levels, and management's ability to manage interest spread income. While asset fees are largely at guaranteed annual rates, amounts earned vary directly with
the underlying performance of the separate accounts. Interest</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-26</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_27"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">spread income is comprised of net investment
income, excluding any applicable allocated charges for invested capital, less interest credited to policyholder accounts. Interest spread income can vary depending on crediting rates offered by the Company, performance of the investment portfolio,
including the rate of prepayments, changes in market interest rates and the level of invested assets, the competitive environment and other factors.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In addition, life insurance profits are significantly impacted
by mortality, morbidity and persistency experience. Asset impairments and the tax position of the Company also impact profitability.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Fair Value Measurements</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">See Note 2 to the audited consolidated
financial statements included in the F pages of this report for details regarding the Company's policies for fair value measurements of its assets and liabilities.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Investments</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes the sources
used in determining the fair values of fixed maturity securities, as of the dates indicated:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:77.45%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:9.83%;">December&#160;31,
<BR> 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:11.83%;">December&#160;31,
<BR> 2013 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:77.45%;">
<DIV style="float:left;">Independent pricing
services</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.83%;">87%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.83%;">86%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:77.45%;">
<DIV style="float:left;">Pricing
matrices</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.83%;">9%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.83%;">10%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:77.45%;">
<DIV style="float:left;">Broker
quotes</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.83%;">3%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.83%;">3%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:77.45%;">
<DIV style="float:left;">Internal pricing
models</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.83%;">1%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.83%;">0%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:77.45%;">
<DIV style="float:left;">Other
sources</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.83%;">0%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.83%;">1%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:77.45%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.83%;">100%
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.83%;">100%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As of December 31, 2014, Level 3
investments comprised 4% of total investments measured at fair value compared to 3% as of December 31, 2013.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For additional information on the inputs the Company uses in
the determination of the fair value of assets and liabilities, see Note 2 to the audited consolidated financial statements included in the F pages of this report.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Credit Risk Associated with Derivatives</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">See Note 7 to the audited consolidated
financial statements included in the F pages of this report for details regarding the Company's evaluation of credit risk associated with derivatives.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Future Policy Benefits and Claims</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The fair value measurements for future
policy benefits and claims relate to embedded derivatives associated with contracts with certain living benefits (GMABs and GLWBs) ("living benefits") and indexed products. Related derivatives are internally valued. The fair value of the embedded
derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivative incorporate numerous assumptions including, but not limited to, mortality,
lapse, equity index volatility, wait period (the number of years the policyholder is assumed to wait prior to beginning withdrawals once eligible), efficiency of benefit utilization (the percent of the maximum permitted withdrawal that a
policyholder takes) and discounting, including liquidity and non-performance risk (the risk that the liability will not be fulfilled and affects the value at which the liability is transferred).</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See Note 7 to the audited consolidated financial statements
included in the F pages of this report for a discussion of the net realized gains and losses recognized on living benefit embedded derivatives.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Critical Accounting Policies and Recently Issued Accounting
Standards</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The preparation of the
consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Significant estimates include the balance and amortization of
DAC, legal and regulatory reserves, certain investment and derivative valuations, future policy benefits and claims including the valuation of embedded derivatives resulting from living benefit guarantees on variable annuity contracts, goodwill,
provision for income taxes and valuation of deferred tax assets. Actual results could differ significantly from those estimates.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-27</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_28"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Note 2 and Note 3 to the audited consolidated financial
statements included in the F pages of this report provide a summary of significant accounting policies and a discussion of recently issued accounting standards, respectively.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Deferred Policy Acquisition Costs</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">See Note 2 to the audited consolidated
financial statements included in the F pages of this report for details regarding the Company's policies for DAC.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company regularly evaluates and adjusts the DAC balance
when actual gross profits in a given reporting period vary from management's initial estimates, with a corresponding charge or credit to current period earnings. Additionally, the Company regularly evaluates its assumptions regarding the future
estimated gross profits used as a basis for amortization of DAC and adjusts the total amortization recorded to date by a charge or credit to earnings if evidence suggests that these future assumptions and estimates should be revised. The Company
refers to this process as "unlocking," which generally is performed on an annual basis. In addition, the Company regularly monitors its actual experience and evaluates relevant internal and external information impacting its assumptions and may
unlock more frequently than annually if such information and analysis warrants.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">For variable annuity products, the DAC
balance is sensitive to the effects of changes in the Company's estimates of gross profits, primarily due to the significant portion of the Company's gross profits that are dependent upon the rate of return on assets held in separate accounts. This
rate of return influences fees earned by the Company from these products and costs incurred by the Company associated with minimum contractual guarantees, as well as other sources of future expected gross profits. The Company's long-term assumption
for net separate account investment performance is approximately 6.25% growth per year as of December 31, 2014. In its ongoing evaluation of this assumption, the Company monitors its historical experience, market information and other relevant
trends. To demonstrate the sensitivity of both the Company's variable annuity product DAC balance, which was approximately $2.4 billion in aggregate at December 31, 2014, and related amortization, a 1% increase (to 7.25%) or decrease (to 5.25%) in
the long-term assumption for net separate account investment performance would result in an approximately $7 million net increase or net decrease, respectively, in DAC amortization over the following year. The information provided above considers
only changes in the assumption for long-term net separate account investment performance and excludes changes in other assumptions used in the Company's evaluation of DAC.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The pre-tax positive impact on the Company's assets and
liabilities as a result of the unlocking of assumptions during the year ended December 31, 2014 was as follows:</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:78.32%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">DAC
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.96%;">Other
<BR> expenses </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.92%;">Total
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:78.32%;">Segment:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.96%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.92%;">&#160;
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:78.32%;">
<DIV style="float:left;">Individual Products &amp; Solutions -
Annuity</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">$147
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.96%;">$10
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.92%;">$157
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:78.32%;">
<DIV style="float:left;">Retirement
Plans</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">35
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.96%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.92%;">35
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:78.32%;">
<DIV style="float:left;">Individual Products &amp; Solutions - Life and
NBSG</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:21.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">8
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.96%;">4
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.92%;">12
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:9pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:78.32%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">$190
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.96%;">$14
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.92%;">$204
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">During 2014, the Company recognized
a decrease in DAC amortization of $190 million as a result of the annual comprehensive review of model assumptions and enhancements. The updated assumptions were primarily related to the actual performance of the block of business since the prior
year review and the expectations for lapses, partially offset by an update to the Company's long-term assumptions for separate account investment performance, which were updated to reflect assumed gross returns of 10.5% for equity funds and 5.0% for
fixed funds.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The pre-tax positive (negative) impact on
the Company's assets and liabilities as a result of the unlocking of assumptions during the year ended December 31, 2013 was as follows:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:78.86%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.55%;">DAC
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.96%;">Other
<BR> expenses </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">Total
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:78.86%;">Segment:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.55%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.96%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">&#160;
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:78.86%;">
<DIV style="float:left;">Individual Products &amp; Solutions -
Annuity</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.55%;">$
<FONT style="padding-left:2.99pt;"></FONT>16 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.96%;">$(4)
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:5.75%;">$
<FONT style="padding-left:2.99pt;"></FONT>12 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:78.86%;">
<DIV style="float:left;">Retirement
Plans</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:19pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.55%;">9
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.96%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:19pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:5.75%;">9
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:78.86%;">
<DIV style="float:left;">Individual Products &amp; Solutions - Life and
NBSG</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.55%;">(26)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.96%;">8
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.75%;">(18)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:78.86%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.55%;">$
<FONT style="padding-left:5.00pt;"></FONT>(1) </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.96%;">$
<FONT style="padding-left:2.99pt;"></FONT>4 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.75%;">$
<FONT style="padding-left:8.00pt;"></FONT>3 </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">During 2013, the net change in DAC amortization as a result of
the annual comprehensive review of model assumptions was immaterial.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-28</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_29"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The pre-tax positive (negative) impact on the Company's assets
and liabilities as a result of the unlocking of assumptions during the year ended December 31, 2012 was as follows:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:81.65%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.55%;">DAC
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">Other
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">Total
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:81.65%;">Segment:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.55%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:5.75%;">&#160;
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:81.65%;">
<DIV style="float:left;">Individual Products &amp; Solutions -
Annuity</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.55%;">$(12)
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.16%;">$
<FONT style="padding-left:2.01pt;"></FONT>(2) </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">$(14)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:81.65%;">
<DIV style="float:left;">Individual Products &amp; Solutions - Life and
NBSG</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.55%;">(38)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.16%;">25
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.75%;">(13)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:9pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:81.65%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.55%;">$(50)
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">$23
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.75%;">$(27)
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">During 2012, the Company incurred
additional DAC amortization of $50 million as a result of the annual comprehensive review of model assumptions, as well as a deviation from equity market performance as compared to assumed net separate account returns. The updated assumptions were
primarily related to actual gross profits and the in force block of business deviating from expectations, renewal premiums, general account margins and lapses.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Results of Operations</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">2014 Compared to 2013</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes the Company's consolidated
results of operations for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:60.41%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">Change
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Revenues:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Policy
 charges:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Asset
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:10.50pt;"></FONT>955 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>854 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">12%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Cost of insurance
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:21.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">520
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">490
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:19pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">6%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Administrative
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:21.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">554
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">468
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">18%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Surrender
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:26.50pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">36
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">37
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(3%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:27pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total policy
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:2.99pt;"></FONT>2,065 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$1,849
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:14.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">12%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">
<DIV style="float:left;">Premiums</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:21.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">831
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">724
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">15%
 </TD></TR>
<TR style="height:12pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net investment
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1,900
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1,849
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:19pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">3%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net realized investment(losses) gains, including other-than-temporary impairment
losses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(1,078)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">678
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:7.64%;">(259%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:26.50pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">11
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">17
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(35%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:2.99pt;"></FONT>3,729 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$5,117
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">(27%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<BR> Benefits and expenses:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Interest credited to policyholder account
values</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:2.99pt;"></FONT>1,096 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$1,067
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:19pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">3%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Benefits and
claims</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1,502
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1,354
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">11%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Amortization of deferred policy acquisition
costs</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:21.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">207
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">374
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(45%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other expenses, net of deferrals
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1,055
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">981
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:19pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">8%
 </TD></TR>
<TR bgcolor="#DEE9F6" style="height:14.5pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:27pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total benefits and
expenses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:2.99pt;"></FONT>3,860 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$3,776
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:19pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">2%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:36pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">(Loss) income before federal income taxes and noncontrolling
interests</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>(131) </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$1,341
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(110%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Federal income tax (benefit) expense
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(147)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">313
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(147%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:45pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:15.5pt;"></FONT>16 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,028
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:11.00pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">(98%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:45pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Less: Loss attributable to noncontrolling interest, net of
tax</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(94)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:20.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(82)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">15%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:54pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net income attributable to
NLIC</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:10.50pt;"></FONT>110 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$1,110
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:11.00pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(90%)
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company recorded a net loss
before federal income taxes and noncontrolling interests for the year ended December 31, 2014 compared to a net gain in 2013 primarily due to net realized investment losses in the current year and an increase in benefits and claims, partially offset
by higher policy charges and lower amortization of DAC.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">During the year ended December 31, 2014, the Company
recognized net realized investment losses of $1.0 billion, pre-tax, compared to net realized investment gains of $645 million in 2013, on interest rate swaps utilized as economic hedges designed to protect statutory capital attributable to decreases
in key interest rates during 2014 as opposed to increases in key interest rates during 2013.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Benefits and claims increased primarily due to higher
life-contingent immediate annuity reserves due to new premium growth and benefit cost increases related to living benefit products' growth.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-29</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_30"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Higher asset fees and administrative fees drove the increase
in policy charges. Asset fees increased due to higher average separate account values (up 14%) in the Individual Products &amp; Solutions &#8211; Annuity segment. Administrative fees improved due to growth of the living benefit products and due to
increased sales and a growing inforce block of universal life products.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Lower amortization of DAC was primarily due to a favorable DAC
unlock of $190 million, pre-tax, during 2014 compared to an unfavorable DAC unlock of $1 million, pre-tax, during 2013. Refer to <FONT style="font-style:italic;">Critical Accounting Policies and Recently Issued Accounting Standards</FONT> for a
description of the DAC unlocks.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">2013 Compared to
2012</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes the Company's
consolidated results of operations for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:60.41%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2012 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">Change
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">Revenues:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Policy
 charges:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Asset
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>854 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>771 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">11%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Cost of insurance
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">490
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">478
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">3%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Administrative
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">468
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">374
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">25%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Surrender
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">37
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">47
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">(21%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:27pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total policy
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$1,849
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$1,670
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">11%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">
<DIV style="float:left;">Premiums</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">724
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">635
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">14%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net investment
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1,849
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1,825
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">1%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net realized investment gains, including other-than-temporary impairment
losses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">678
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">319
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">113%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">17
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:28.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">7
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">143%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$5,117
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$4,456
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">15%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Benefits
 and expenses:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Interest credited to policyholder
accounts</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$1,067
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$1,038
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">3%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Benefits and
claims</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1,354
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1,227
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">10%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Amortization of deferred policy acquisition
costs</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">374
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">575
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(35%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other expenses, net of deferrals
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">981
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">917
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">7%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:27pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total benefits and
expenses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$3,776
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$3,757
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">1%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:36pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Income before federal income taxes and noncontrolling
interests</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$1,341
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>699 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">92%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Federal income tax expense
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">313
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">99
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">216%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:45pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$1,028
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>600 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:11.00pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">71%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:45pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Less: Loss attributable to noncontrolling interest, net of
tax</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:20.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(82)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:20.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(61)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">34%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:54pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net income attributable to
NLIC</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$1,110
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>661 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:11.00pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">68%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The increase in net income before
federal income taxes and noncontrolling interests for the year ended December 31, 2013 compared to the prior year was primarily due to higher net realized investment gains, lower amortization of DAC and higher policy charges, partially offset by an
increase in benefits and claims.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">During 2013, the
Company recognized an increase in net realized investment gains of $774 million, pre-tax, on interest rate swaps utilized as economic hedges designed to protect statutory capital attributable to increases in key interest rates during 2013. This
increase was partially offset by a decline in net realized investment gains related to living benefit embedded derivatives, net of economic hedging, of $396 million, pre-tax, attributable to modest current year favorability as changes in hedges and
liabilities are tightly matched as well as less effect from living benefit reserve assumptions updates in 2013.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Lower amortization of DAC was primarily due to lower net
realized investment gains on the living benefit embedded derivatives, net of economic hedging in 2013. Additionally, an unfavorable DAC unlock of $1 million, pre-tax, during 2013 compared to an unfavorable DAC unlock of $50 million, pre-tax, during
2012 resulted in lower amortization. Refer to <FONT style="font-style:italic;">Critical Accounting Policies and Recently Issued Accounting Standards</FONT> for a description of the DAC unlocks.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Higher administrative and asset fees drove
the increase in policy charges. Administrative fees improved due to the growth of living benefit products and due to premium loads as a result of increased sales of the universal life products. Asset fees increased due to higher average separate
account values (up 12%) in the Individual Products &amp; Solutions &#8211; Annuity segment.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-30</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_31"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Benefits and claims increased primarily due
to higher life-contingent immediate annuity reserves related to new premium growth and benefit cost increases related to deferral of living benefit product administrative fees. Growth in universal life insurance products and updates to the benefit
ratio assumptions also drove the increase.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Business
Segments</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Individual Products &amp; Solutions -
Annuity</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">2014 Compared to 2013</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected consolidated financial
data for the Company's Individual Products &amp; Solutions - Annuity segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:60.41%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">Change
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Results
 of Operations<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">Revenues:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Policy
 charges:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Asset
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>807 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>716 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">13%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Administrative
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">342
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">283
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">21%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Surrender
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">26
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">22
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">18%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:27pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total policy
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$1,175
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,021
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:8.99pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">15%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">
<DIV style="float:left;">Premiums</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">518
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">416
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">25%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net investment
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">546
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">546
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">0%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:20.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">(38)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:15.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">(109)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">(65%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$2,201
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,874
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.99pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">17%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Benefits
 and expenses:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Interest credited to policyholder
accounts</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>370 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>377 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(2%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Benefits and
claims</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">828
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">694
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">19%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Amortization of deferred policy acquisition
costs</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">120
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">185
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">(35%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other expenses, net of deferrals
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">300
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">295
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">2%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total benefits and
expenses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,618
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,551
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">4%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:45pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Pre-tax operating
earnings</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>583 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>323 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:8.99pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">80%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Pre-tax operating earnings
increased for the year ended December 31, 2014 compared to the year ended December 31, 2013 primarily due to higher policy charges and premiums. An increase in benefits and claims was partially offset by a decrease in DAC amortization during the
year.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Higher asset and administrative fees drove the
increase in policy charges. Asset fees increased $91 million due to higher average separate account values (up 14%). Administrative fees increased $59 million primarily due to growth in sales of living benefit products.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Increased sales of life-contingent immediate annuities
generated premiums of $518 million during 2014 as compared to $416 million during 2013, a $102 million increase.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Benefits and claims increased primarily due to higher
life-contingent immediate annuity reserves due to new premium growth and benefit cost increases related to living benefit products' growth.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Lower amortization of DAC was partially due to a favorable
unlock of $147 million, pre-tax, during 2014 compared to a favorable unlock of $16 million, pre-tax, during 2013. Refer to <FONT style="font-style:italic;">Critical Accounting Policies and Recently Issued Accounting Standards</FONT> for a
description of the DAC unlocks.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-31</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_32"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">2013 Compared to 2012</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected
consolidated financial data for the Company's Individual Products &amp; Solutions - Annuity segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:60.41%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2012 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">Change
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Results
 of Operations<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">Revenues:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Policy
 charges:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Asset
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>716 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>642 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">12%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Administrative
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">283
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">229
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">24%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Surrender
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">22
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">28
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(21%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:27pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total policy
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$1,021
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>899 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8.99pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">14%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">
<DIV style="float:left;">Premiums</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">416
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">334
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">25%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net investment
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">546
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">551
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(1%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:15.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(109)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:15.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(124)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(12%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$1,874
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$1,660
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.99pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">13%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<BR> Benefits and expenses:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Interest credited to policyholder
accounts</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>377 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>375 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">1%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Benefits and
claims</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">694
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">613
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">13%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Amortization of deferred policy acquisition
costs</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">185
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">185
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">0%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other expenses, net of deferrals
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">295
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">266
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">11%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total benefits and
expenses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,551
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,439
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">8%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:45pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Pre-tax operating
earnings</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>323 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>221 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:8.99pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">46%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Pre-tax operating earnings
increased for the year ended December 31, 2013 compared to the year ended December 31, 2012 due to higher policy charges and premiums, partially offset by higher benefits and claims.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Higher asset and administrative fees drove the increase in
policy charges. Asset fees increased $74 million due to higher average separate account values (up 12%). Administrative fees increased $54 million due to growth in sales of the living benefit products.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Increased sales of life-contingent immediate annuities
generated premiums of $416 million during 2013 compared to $334 million during 2012, an $82 million increase.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The increase in benefits and claims was attributable to higher
life-contingent immediate annuity reserves of $62 million related to new premium growth and higher benefit cost increases of $42 million related to living benefit products' growth.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-32</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_33"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Retirement Plans</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">2014 Compared to 2013</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected consolidated financial
data for the Company's Retirement Plans segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:60.41%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">Change
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Results
 of Operations<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">Revenues:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Policy
 charges:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Asset
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>96 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>90 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:21.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">7%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Administrative
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">11
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">11
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">0%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:27pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total policy
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$107
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$101
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:21.01pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">6%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net investment
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">750
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">743
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">1%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$857
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$844
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">2%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Benefits
 and expenses:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Interest credited to policyholder
accounts</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$482
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$473
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:21.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">2%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Amortization of deferred policy acquisition
costs</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:13.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">(28)
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">(2)
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">1300%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other expenses, net of deferrals
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">153
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">151
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">1%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total benefits and
expenses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$607
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$622
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">(2%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:45pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Pre-tax operating
earnings</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$250
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$222
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:16.01pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">13%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Pre-tax operating earnings
increased for the year ended December 31, 2014 compared to the year ended December 31, 2013 due to lower amortization of DAC.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Lower amortization of DAC was attributable to a favorable DAC
unlock of $35 million, pre-tax, during 2014 compared to a favorable unlock of $9 million, pre-tax, during 2013. Refer to <FONT style="font-style:italic;">Critical Accounting Policies and Recently Issued Accounting Standards</FONT> for a description
of the DAC unlocks.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">2013 Compared to 2012</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected
consolidated financial data for the Company's Retirement Plans segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:60.41%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2012 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">Change
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Results
 of Operations<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">Revenues:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Policy
 charges:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Asset
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>90 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>85 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:19pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">6%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Administrative
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">11
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:21.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">8
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">38%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Surrender
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(100%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:27pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total policy
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$101
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>94 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:19pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">7%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net investment
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">743
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">736
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:19pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">1%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$844
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$830
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:19pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">2%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Benefits
 and expenses:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Interest credited to policyholder
accounts</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$473
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$457
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:19pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">4%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Amortization of deferred policy acquisition
costs</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(2)
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">14
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(114%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other expenses, net of deferrals
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">151
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">164
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">(8%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total benefits and
expenses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$622
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$635
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(2%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:45pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Pre-tax operating
earnings</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$222
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$195
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:14.00pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">14%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Pre-tax operating earnings
increased for the year ended December 31, 2013 compared to the year ended December 31, 2012 due to lower amortization of DAC and lower other expenses, net of deferrals.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Lower amortization of DAC was primarily due to a favorable DAC
unlock of $9 million, pre-tax, during 2013. Refer to <FONT style="font-style:italic;">Critical Accounting Policies and Recently Issued Accounting Standards</FONT> for a description of the DAC unlocks.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-33</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_34"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Other expenses, net of deferrals, decreased
$13 million during 2013 due to the loss of the State of California plan and related write-off of capitalized software costs during 2012.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Individual Products &amp; Solutions - Life and NBSG</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">2014 Compared to 2013</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected consolidated financial
data for the Company's Individual Products &amp; Solutions - Life and NBSG segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:60.41%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">Change
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Results
 of Operations<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">Revenues:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Policy
 charges:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Asset
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>52 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>48 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">8%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Cost of insurance
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">520
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">490
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">6%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Administrative
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">201
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">174
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">16%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Surrender
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">10
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">15
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(33%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:27pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total policy
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>783 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>727 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:16.01pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">8%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">
<DIV style="float:left;">Premiums</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">284
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">282
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">1%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net investment
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">565
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">544
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">4%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">12
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:28.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">6
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">100%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,644
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,559
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">5%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Benefits
 and expenses:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Interest credited to policyholder
accounts</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>231 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>213 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">8%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Benefits and
claims</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">644
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">636
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">1%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Amortization of deferred policy acquisition
costs</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">122
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">125
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:13.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">(2%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other expenses, net of deferrals
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">348
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">347
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">0%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total benefits and
expenses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,345
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,321
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">2%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:45pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Pre-tax operating
earnings</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>299 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>238 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:11.00pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">26%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The increase in pre-tax operating
earnings for the year ended December 31, 2014 compared to the year ended December 31, 2013 was primarily due to higher policy charges.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The increase in policy charges during 2014 compared to 2013
was primarily attributable to higher cost of insurance charges and higher administrative fees due to increased sales of universal life and a growing inforce block.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-34</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_35"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">2013 Compared to 2012</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected
consolidated financial data for the Company's Individual Products &amp; Solutions - Life and NBSG segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:59.90%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:8pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">December
 31, 2012<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">Change
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">Results
 of Operations<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:14.04%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:59.90%;">Revenues:
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:14.04%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">Policy
 charges:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:14.04%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Asset
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:12.51pt;"></FONT>48 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:12.51pt;"></FONT>44 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">9%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Cost of insurance
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">490
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">478
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">3%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Administrative
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">174
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">137
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">27%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Surrender
fees</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">15
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">18
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:8.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(17%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:27pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Total policy
charges</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>727 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:7.50pt;"></FONT>677 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">7%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:59.90%;">
<DIV style="float:left;">Premiums</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">282
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">274
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">3%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Net investment
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">544
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">534
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">2%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Other
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:28.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">6
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:30.52pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">100%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Total
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,559
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">$1,485
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">5%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">Benefits
 and expenses:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:14.04%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Interest credited to policyholder
accounts</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>213 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:7.50pt;"></FONT>199 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">7%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Benefits and
claims</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">636
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">588
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">8%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Amortization of deferred policy acquisition
costs</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">125
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">150
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(17%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Other expenses, net of deferrals
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">347
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">307
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">13%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:36pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Total benefits and
expenses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$1,321
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">$1,244
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">6%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:45pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Pre-tax operating
earnings</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>238 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:7.50pt;"></FONT>241 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:13.01pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">(1%)
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Due to a change in the manner
in which we view our reportable segments, certain prior period amounts have been restated. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The decrease in pre-tax operating earnings
for the year ended December 31, 2013 compared to the year ended December 31, 2012 was due to higher benefits and claims, partially offset by higher policy charges and lower amortization of DAC.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Growth in universal life insurance products and updates to the
benefit ratio assumptions drove the increase in benefits and claims.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The increase in policy charges was attributable to higher
administrative fees of $37 million due to premium loads as a result of increased sales.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Lower amortization of DAC was primarily attributable to an
unfavorable DAC unlock of $26 million, pre-tax, in 2013 compared to an unfavorable DAC unlock of $38 million, pre-tax, in 2012. Refer to <FONT style="font-style:italic;">Critical Accounting Policies and Recently Issued Accounting Standards</FONT>
for a description of the DAC unlocks.</DIV> </DIV> <DIV style="width:100%;"> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV> </DIV> <DIV style="width:100%;"> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-35</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_36"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Corporate and Other</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">2014 Compared to 2013</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected consolidated financial
data for the Company's Corporate and Other segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:60.41%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">Change
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Results
 of Operations<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Operating
 revenues:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:60.41%;">
<DIV style="float:left;">Premiums</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:15.5pt;"></FONT>29 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>26 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">12%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Net investment
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:26.50pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">39
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">16
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">144%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:26.50pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">10
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">13
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">(23%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total operating
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:15.5pt;"></FONT>78 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>55 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">42%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">Benefits
 and operating expenses:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Interest credited to policyholder
accounts</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:15.5pt;"></FONT>13 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:10.01pt;"></FONT>4 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:8.99pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">225%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Other expenses, net of deferrals
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:21.5pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">194
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">124
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">56%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Total benefits and operating
expenses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:10.50pt;"></FONT>207 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$128
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">62%
 </TD></TR>
<TR style="height:13.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:27pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Pre-tax operating
loss</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>(129) </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:2.01pt;"></FONT>(73) </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:14.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">77%
 </TD></TR>
<TR bgcolor="#DEE9F6" style="height:22pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Add: non-operating net realized investment (losses) gains, including other-than-temporary impairment
losses<SUP style="font-size:85%;vertical-align:text-top;">1</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$(1,051)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$783
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:7.64%;">(234%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Add: adjustment to amortization of DAC and other related expenses related to net realized investment gains and
losses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:26.50pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">11
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(70)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:7.64%;">(116%)
 </TD></TR>
<TR bgcolor="#DEE9F6" style="height:13.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">Add: net loss attributable to noncontrolling
interests</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(94)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:13.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(82)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">15%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:36pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:60.41%;">
<DIV style="float:left;">(Loss) income from continuing operations before federal income tax benefit
(expense)</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$(1,263)
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$558
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(326%)
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Excluding operating items
(trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts). </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">This segment recorded a higher pre-tax operating loss during
the year ended December 31, 2014 compared to the year ended December 31, 2013, which was partially offset by higher interest spread income.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Increase in interest spread income was primarily due to an
increase in net investment income. Increase is primarily due to lower losses on alternative tax credits during 2014 compared to 2013.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">During the year ended December 31, 2014, the Company
recognized non-operating net realized investment losses of $1.0 billion, pre-tax, compared to non-operating net investment gains of $645 million during the year ended December 31, 2013 on interest rate swaps utilized as economic hedges designed to
protect statutory capital attributable to decreases in key interest rates during 2014 as opposed to increases in key interest rates during 2013.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Lower amortization of DAC was primarily due to the differing
effect of the net realized investment gains (losses) from the living benefit embedded derivatives, net of economic hedging in the respective years.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See Note 6 of the audited consolidated financial statements
included in the F pages of this report, for additional information on net realized investment gains (losses).</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-36</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_37"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">2013 Compared to 2012</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes selected
consolidated financial data for the Company's Corporate and Other segment for the years ended:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:59.90%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:8pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">December
 31, 2012<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">Change
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">Results
 of Operations<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:14.04%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">Operating
 revenues:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.53%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:14.04%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.64%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:59.90%;">
<DIV style="float:left;">Premiums</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>26 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:8.00pt;"></FONT>27 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(4%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Net investment
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">16
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:24.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">4
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">300%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Other
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">13
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:19pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">23
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:13.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">(43%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Total operating
revenues</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:5.00pt;"></FONT>55 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:8.00pt;"></FONT>54 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">2%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:0pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">Benefits
 and operating expenses:<BR> </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">&#160;
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">&#160;
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">&#160;
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Interest credited to policyholder
accounts</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:10.01pt;"></FONT>4 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:13pt;"></FONT>7 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:13.01pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(43%)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Other expenses, net of deferrals
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">124
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:14.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">128
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">(3%)
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Total benefits and operating
expenses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$128
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:2.99pt;"></FONT>135 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.64%;">(5%)
 </TD></TR>
<TR style="height:13.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:27pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Pre-tax operating
loss</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:2.01pt;"></FONT>(73) </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:5.00pt;"></FONT>(81) </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:13.01pt;padding-top:2.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.64%;">(10%)
 </TD></TR>
<TR bgcolor="#DEE9F6" style="height:22pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Add: non-operating net realized investment gains, including other-than-temporary impairment
losses<SUP style="font-size:85%;vertical-align:text-top;">2</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$783
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:2.99pt;"></FONT>427 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">83%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Add: adjustment to amortization of DAC and other related expenses related to net realized investment gains and
losses</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">(70)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.04%;">(243)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">(71%)
 </TD></TR>
<TR bgcolor="#DEE9F6" style="height:13.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Add: net loss attributable to noncontrolling
interest</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:13.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">(82)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">(61)
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">34%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:36pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:59.90%;">
<DIV style="float:left;">Income from continuing operations before federal income tax
expense</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$558
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:14.04%;">$
<FONT style="padding-left:8.00pt;"></FONT>42 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.64%;">1229%
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Due to a change in the manner
in which we view our reportable segments, certain prior period amounts have been restated. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Excluding
operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts). </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company recorded a lower pre-tax
operating loss during the year ended December 31, 2013 compared to the year ended December 31, 2012 due to higher interest spread income, partially offset by lower other revenues.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Increase in interest spread income was primarily due to an
increase in net investment income. This was primarily due to higher prepayment income on fixed maturity securities, partially offset by higher losses on low-income-housing tax credits.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Lower other revenues were driven by valuation losses on
synthetic collateralized debt obligations of $4 million in 2013 compared to gains of $15 million in 2012, partially offset by higher service fee revenue.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company recognized an increase in
non-operating realized investment gains of $774 million, pre-tax, on interest rate swaps utilized as economic hedges designed to protect statutory capital attributable to increases in key interest rates during 2013. This increase was partially
offset by a decline in net realized investment gains related to living benefit embedded derivatives, net of economic hedging, of $396 million, pre-tax, attributable to modest current year favorability as changes in hedges and liabilities were
tightly matched, as well as a less favorable effect from living benefit reserve assumptions updates in 2013.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Lower amortization of DAC was primarily due to lower net
realized investment gains on living benefit embedded derivatives, net of economic hedging during 2013.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See Note 6 of the audited consolidated financial statements
included in the F pages of this report, for additional information on net realized investment gains.</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Liquidity and Capital Resources</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Liquidity and capital resources demonstrate the overall
financial strength of the Company and its ability to generate cash flows from its operations and borrow funds at competitive rates to meet operating and growth needs.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-37</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_38"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company's capital structure consists of
long-term debt and shareholder's equity. The following table summarizes the Company's capital structure as of the dates indicated:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:52.52%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">December
 31, 2013 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.53%;">December
 31, 2012 </TD></TR>
<TR style="height:14.62pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Long-term debt
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>709 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$
<FONT style="padding-left:7.50pt;"></FONT>707 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.53%;">$1,038
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Shareholder's equity, excluding accumulated other comprehensive
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">$6,352
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.53%;">$6,242
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.25pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.53%;">$5,132
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Accumulated other comprehensive
income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">1,044
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.53%;">582
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.53%;">1,252
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Total shareholder's
equity</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$7,396
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$6,824
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.53%;">$6,384
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:18pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.52%;">
<DIV style="float:left;">Total
capital</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$8,105
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;">$7,531
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.53%;">$7,422
 </TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">A primary liquidity concern with respect to annuity and life insurance
products is the risk of early policyholder withdrawal. The Company attempts to mitigate this risk by offering variable products where the investment risk is transferred to the policyholder, charging surrender fees at the time of withdrawal for
certain products, applying a market value adjustment to withdrawals for certain products in the Company's general account and monitoring and matching anticipated cash inflows and outflows.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For individual annuity products, surrender charges generally
are calculated as a percentage of deposits and are assessed at declining rates during the first seven years after a deposit is made.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For group annuity products, surrender charge amounts and
periods can vary significantly depending on the terms of each contract and the compensation structure for the producer. Generally, surrender charge percentages for group products are less than individual products because the Company incurs lower
expenses at contract origination for group products. In addition, the majority of general account group annuity reserves are subject to a market value adjustment at withdrawal.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Life insurance policies are less susceptible to withdrawal
than annuity products because policyholders generally must undergo a new underwriting process and may incur a surrender fee in order to obtain a new insurance policy.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The short-term and long-term liquidity requirements of the
Company are monitored regularly to match cash inflows with cash requirements. The Company reviews its short-term and long-term projected sources and uses of funds and the asset/liability, investment and cash flow assumptions underlying these
projections. The Company periodically makes adjustments to its investment policies to reflect changes in short-term and long-term cash needs and changing business and economic conditions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Given the Company's historical cash flows
from operating and investing activities and current financial results, the Company believes that cash flows from operating activities over the next year will provide sufficient liquidity for the operations of the Company and sufficient funds for
interest payments.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Debt</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">See Notes 11 and 12 to the audited
consolidated financial statements included in the F pages of this report for details regarding the Company's usage of short-term and long-term debt, respectively.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Guarantees</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">See Note 6 to the audited consolidated
financial statements included in the F pages of this report for a description of the potential impact on liquidity of the Company's Low-Income-Housing Tax Credit Funds.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-38</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_39"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Contractual Obligations and Commitments</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes the Company's
contractual obligations and commitments as of December 31, 2014 expected to be paid in the periods presented. Payment amounts reflect the Company's estimate of undiscounted cash flows related to these obligations and commitments. Balance sheet
amounts were determined in accordance with GAAP and may differ from the summation of undiscounted cash flows. The most significant difference relates to future policy benefits for life and health insurance, which include discounting.</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:52.51%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:36.37%;" colspan="9">Payments
 due by period </TD>
<TD style="border-bottom:0.75pt solid #000000;padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:8.23%;" rowspan="2">Amount
<BR> per<BR> balance<BR> sheet </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:52.51%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">Less
<BR> than 1<BR> year </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">1-3
<BR> years </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">3-5
<BR> years </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">More
<BR> than 5<BR> years </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">Total
 </TD>
<TD style="padding-bottom:2pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">Debt
<SUP style="font-size:85%;vertical-align:text-top;">1</SUP>:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:8.23%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Short-term
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:7.50pt;"></FONT>661 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:19.52pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:19.52pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:24.52pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>661 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:8.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>660 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:52.51%;">
<DIV style="float:left;">Long-term</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">54
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">107
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">107
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">1,379
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">1,647
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">709
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:52.51%;">
<DIV style="float:left;">Subtotal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:7.50pt;"></FONT>715 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:7.50pt;"></FONT>107 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:7.50pt;"></FONT>107 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:5.00pt;"></FONT>1,379 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:5.00pt;"></FONT>2,308 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:8.23%;">$
<FONT style="padding-left:5.00pt;"></FONT>1,369 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">Purchase
 and lending commitments:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:8.23%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Fixed maturity
securities</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">178
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:35.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">178
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:35.52pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">-
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Mortgage
loans</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">289
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:35.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">289
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:35.52pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">-
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Limited
partnerships<SUP style="font-size:85%;vertical-align:text-top;">2</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">123
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:35.52pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">123
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:35.52pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">-
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:52.51%;">
<DIV style="float:left;">Subtotal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:7.50pt;"></FONT>590 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:19.52pt;"></FONT>- </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:19.52pt;"></FONT>- </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:24.52pt;"></FONT>- </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>590 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:8.23%;">$
<FONT style="padding-left:24.52pt;"></FONT>- </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">Future
 policy benefits and claims<SUP style="font-size:85%;vertical-align:text-top;">3,4,5,6</SUP>:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:8.23%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Fixed annuities and fixed option of variable
annuities</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">1,346
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">2,631
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">2,214
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">4,418
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">10,609
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">9,090
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Life
insurance</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">910
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">1,663
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">1,692
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">23,187
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">27,452
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">10,793
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Single premium immediate
annuities</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">444
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">824
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">706
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">3,715
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">5,689
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">3,530
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Group pension deferred fixed
annuities</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">1,556
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">2,812
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">2,562
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">8,742
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">15,672
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">14,905
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Funding agreements and accident &amp; health
insurance<SUP style="font-size:85%;vertical-align:text-top;">7</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">679
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">100
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">1,422
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">1,286
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">3,487
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">2,412
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:52.51%;">
<DIV style="float:left;">Subtotal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$4,935
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$8,030
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$8,596
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$41,348
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$62,909
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:8.23%;">$40,730
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">Cash
 collateral<SUP style="font-size:85%;vertical-align:text-top;">8, 9</SUP><BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:8.23%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Cash collateral on securities
lending</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">261
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:35.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">261
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">261
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:52.51%;">
<DIV style="float:left;">Cash collateral on derivative
transactions</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">535
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:35.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">535
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.23%;">535
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:52.51%;">
<DIV style="float:left;">Subtotal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:7.50pt;"></FONT>796 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:19.52pt;"></FONT>- </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:19.52pt;"></FONT>- </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:24.52pt;"></FONT>- </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>796 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:8.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>796 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:27pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:52.51%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$7,036
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$8,137
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$8,703
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$42,727
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$66,603
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:8.23%;">$42,895
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%;">No contractual provisions
exist that could create, increase or accelerate those obligations presented. The amount presented includes contractual principal payments and interest based on rates in effect at December 31, 2014. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Limited partnerships are
primarily related to investments in low-income-housing tax credit partnerships. Call dates for the obligations presented are either date or event specific. For date specific obligations, the Company is required to fund a specified amount on a stated
date provided there are no defaults under the agreement. For event specific obligations, the Company is required to fund a specified amount of its capital commitment when properties in a fund become fully stabilized. For event specific obligations,
the call date of these commitments may extend beyond one year but has been reflected in payments due in less than one year due to the call features. The Company's capital typically is called within one to four years, depending on the timing of
events. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">A
significant portion of policy contract benefits and claims to be paid do not have stated contractual maturity dates and may not result in any ultimate payment obligation. Amounts reported represent estimated undiscounted cash flows out of the
Company's general account related to death, surrender, annuity and other benefit payments under policy contracts in force at December 31, 2014. Separate account payments are not reflected due to the matched nature of these obligations and because
the contract owners bear the investment risk of such deposits. Estimated payment amounts were developed based on the Company's historical experience and related contractual provisions. Significant assumptions incorporated in the reported amounts
include future policy lapse rates (including the impact of customer decisions to make future premium payments to keep the related policies in force); coverage levels remaining unchanged from those provided under contracts in force at December 31,
2014; future interest crediting rates; and estimated timing of payments. Actual amounts will vary, potentially by a significant amount, from the amounts indicated due to deviations between assumptions and actual results and the addition of new
business in future periods. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Contractual provisions exist
which could adjust the amount and/or timing of those obligations reported. Key assumptions related to payments due by period include customer lapse and withdrawal rates (including timing of death), exchanges to and from the fixed and separate
accounts of the variable annuities, claim experience with respect to guarantees, and future interest crediting levels. Assumptions for future interest crediting levels were made based on processes consistent with the Company's past practices, which
are at the discretion of the Company, subject to guaranteed minimum crediting rates in many cases and/or subject to contractually obligated increases for specified time periods. Many of the contracts with potentially accelerated payments are subject
to surrender charges, which are generally calculated as a percentage of deposits made and are assessed at declining rates during the first </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-39</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_40"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:2.77%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">seven years after a deposit
is made. Amounts disclosed include an estimate of those accelerated payments, net of applicable surrender charges. See Note 2 to the audited consolidated financial statements included in the F pages of this report for a description of the Company's
method for establishing life and annuity reserves in accordance with GAAP. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">5</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Certain assumptions have been
made about mortality experience and retirement patterns in the amounts reported. Actual deaths and retirements may differ significantly from those projected, which could cause the timing of the obligations reported to vary significantly. In
addition, contractual surrender provisions exist on an immaterial portion of these contracts that could accelerate those obligations presented. Amounts disclosed do not include an estimate of those accelerated payments. Most of the contracts with
potentially accelerated payments are subject to surrender charges, which are generally calculated as a percentage of the commuted value of the remaining term certain benefit payments and are assessed at declining rates during the first seven policy
years. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">6</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Contractual provisions
 exist that could increase those obligations presented. The process for determining future interest crediting rates as described in Note 5 above was used to develop the estimates of payments due by period. </TD></TR></TABLE> </DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">7</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Health reserves are
immaterial and are reflected in the less than one year column. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">8</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Since the timing of the
return is uncertain, these obligations have been reflected in payments due in less than one year. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">9</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">The table
above excludes certain derivative liabilities. For more information on these instruments see Characteristics of Interest Rate Sensitive Financial Instruments. Embedded derivatives on guaranteed benefit annuity programs are included in future policy
benefits and claims in the table above. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Investments</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">General</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company's assets are divided between
separate account and general account assets. As of December 31, 2014, $88.1 billion (61%) of the Company's total assets were held in separate accounts compared to $84.1 billion (63%) as of December 31, 2013 and $55.4 billion (39%) were held in the
Company's general account compared to $49.4 billion (37%) as of December 31, 2013, including $45.4 billion of general account investments compared to $40.8 billion as of December 31, 2013.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Separate account assets primarily consist of investments made
with deposits from the Company's variable annuity and variable life insurance business. Most separate account assets are invested in various mutual funds. After deducting fees or expense charges, the investment performance in the Company's separate
account assets is passed through to the Company's customers.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes the Company's consolidated
general account investments by asset category, as of the dates indicated:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:68.05%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.53%;" colspan="3">December
 31, 2014 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.53%;" colspan="3">December
 31, 2013 </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:68.05%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.24%;">Carrying
<BR> value<BR> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.29%;">%
 of<BR> total </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.24%;">Carrying
<BR> value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:6.29%;">%
 of<BR> total </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:68.05%;">
<DIV style="float:left;">Fixed maturity securities,
available-for-sale</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.24%;">$35,418
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.29%;">78%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.24%;">$32,249
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.29%;">79%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:68.05%;">
<DIV style="float:left;">Mortgage loans, net of
allowance</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.24%;">7,270
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.29%;">16%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.24%;">6,341
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.29%;">16%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:68.05%;">
<DIV style="float:left;">Policy
loans</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.24%;">992
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.29%;">2%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.24%;">987
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.29%;">2%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:68.05%;">
<DIV style="float:left;">Short-term
investments</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.24%;">935
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.29%;">2%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.24%;">411
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.29%;">1%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:68.05%;">
<DIV style="float:left;">Other
investments</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.24%;">822
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.29%;">2%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.24%;">767
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.29%;">2%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:18pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:68.05%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.24%;">$45,437
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.29%;">100%
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.24%;">$40,755
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.29%;">100%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See Note 6 to the audited
consolidated financial statements included in the F pages of this report for further information regarding the Company's investments.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Available-for-Sale Securities</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Refer to Note 6 to the audited consolidated financial
statements included in the F pages of this report for information regarding the nature of the Company's portfolio of available-for-sale securities and the methodology and inputs used in evaluating whether the securities are other-than-temporarily
impaired.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Collateral Exposure</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's portfolio of residential mortgage-backed
securities is comprised of investments securitized by the cash flows of mortgage loans with four primary collateral characteristics: government agency, prime, Alt-A and sub-prime. In general, recent market activity has negatively impacted the
valuation of securities containing Alt-A and sub-prime collateral.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-40</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_41"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company considers Alt-A collateral to be mortgages whose
underwriting standards do not qualify the mortgage for prime financing terms. Typical underwriting characteristics that cause a mortgage to fall into the Alt-A classification may include, but are not limited to, inadequate loan documentation of a
borrower's financial information, debt-to-income ratios above normal lending limits, loan-to-value ("LTV") ratios above normal lending limits that do not have primary mortgage insurance, a borrower who is a temporary resident, and loans securing
non-conforming types of real estate. Alt-A mortgages are generally issued to borrowers having higher Fair Isaac Credit Organization ("FICO") scores, and the lender typically charges a slightly higher interest rate for such mortgages.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company considers sub-prime collateral to be mortgages
that are first or second-lien mortgage loans issued to borrowers that cannot qualify for prime or Alt-A financing terms, as demonstrated by recent delinquent rent or housing payments or substandard FICO scores. The Company considers prime collateral
to be mortgages whose underwriting standards qualify the mortgage for regular conforming or jumbo loan programs. In addition, government agency collateral is considered to be mortgages securitized by government agencies both implicitly and
explicitly backed by the full faith and credit of the U.S. Government.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes the
distribution by collateral classification of the Company's general account residential mortgage-backed securities as of December 31, 2014:</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:71.83%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.45%;">Amortized
<BR> cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.12%;">Fair
 value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:8.71%;">%
 of<BR> fair value<BR> total </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:71.83%;">
<DIV style="float:left;">Government
agency</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$2,167
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$2,295
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">60%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:71.83%;">
<DIV style="float:left;">Prime</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">397
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">409
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">11%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:71.83%;">
<DIV style="float:left;">Alt-A</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">714
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">716
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">19%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:71.83%;">
<DIV style="float:left;">Sub-prime</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">410
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">413
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">10%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:71.83%;">
<DIV style="float:left;">Other residential mortgage
collateral</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:28.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">6
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:28.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">6
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.01pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">-
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:71.83%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$3,694
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$3,839
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">100%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes the
distribution by rating (based on the Company's standard rating) and origination year, respectively, of the Company's general account residential mortgage-backed securities as of December 31, 2014:</DIV>
<DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:44.56%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.28%;" colspan="5">Alt-A
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:27.28%;" colspan="5">Sub-prime
 </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:44.56%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.45%;">Amortized
<BR> cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.12%;">Fair
 value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.71%;">%
 of<BR> fair value<BR> total </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.45%;">Amortized
<BR> cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.12%;">Fair
 value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:8.71%;">%
 of<BR> fair value<BR> total </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">AAA</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.45%;">$
<FONT style="padding-left:12.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.12%;">$
<FONT style="padding-left:12.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.45%;">$
<FONT style="padding-left:10.01pt;"></FONT>7 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.12%;">$
<FONT style="padding-left:10.01pt;"></FONT>7 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">2%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">AA</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">8
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">8
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">1%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">20
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">22
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">5%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">A</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">5
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">5
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">1%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">33
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">33
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">8%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">BBB</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">13
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">14
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">2%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">42
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">42
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">10%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:44.56%;">
<DIV style="float:left;">BB and
below</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">688
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">689
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">96%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">308
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">309
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">75%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:9pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$714
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$716
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">100%
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$410
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$413
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">100%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:5.10pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">Pre-2005</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$119
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$122
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:5.10pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">17%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$228
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$222
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">54%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">2005</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">342
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">343
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">48%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">98
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">101
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">24%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">2006</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">153
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">155
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">22%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">70
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">76
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">18%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">2007</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">100
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">96
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">13%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">5
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">3
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">1%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">2008-2014</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">9
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">11
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">3%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:9pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$714
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$716
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">100%
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$410
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$413
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">100%
 </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-41</DIV>
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_42"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes the
distribution by collateral classification of the Company's general account residential mortgage-backed securities as of December 31, 2013:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:71.83%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.45%;">Amortized
<BR> cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.12%;">Fair
 value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:8.71%;">%
 of<BR> fair value<BR> total </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:71.83%;">
<DIV style="float:left;">Government
agency</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$2,104
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$2,199
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">55%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:71.83%;">
<DIV style="float:left;">Prime</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">520
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">529
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">13%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:71.83%;">
<DIV style="float:left;">Alt-A</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">858
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">844
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">21%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:71.83%;">
<DIV style="float:left;">Sub-prime</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">437
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">431
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">11%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:9pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:71.83%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$3,919
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$4,003
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">100%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes the
distribution by rating (based on the Company's standard rating) and origination year, respectively, of the Company's general account residential mortgage-backed securities as of December 31, 2013:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:44.56%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.28%;" colspan="5">Alt-A
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:27.28%;" colspan="5">Sub-prime
 </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:44.56%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.45%;">Amortized
<BR> cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.12%;">Fair
 value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.71%;">%
 of<BR> fair value<BR> total </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.45%;">Amortized
<BR> cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.12%;">Fair
 value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:8.71%;">%
 of<BR> fair value<BR> total </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">AAA</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.45%;">$
<FONT style="padding-left:12.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.12%;">$
<FONT style="padding-left:12.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.45%;">$
<FONT style="padding-left:5.00pt;"></FONT>18 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.12%;">$
<FONT style="padding-left:5.00pt;"></FONT>18 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">4%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">AA</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">11
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">11
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">1%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">28
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">29
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">7%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">A</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">8
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">9
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">1%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">45
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">45
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">10%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">BBB</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">35
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">35
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">4%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">36
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">35
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">8%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:44.56%;">
<DIV style="float:left;">BB and
below</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">804
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">789
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">94%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">310
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">304
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">71%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:9pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$858
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$844
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">100%
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$437
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$431
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">100%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:5.10pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">Pre-2005</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$169
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$174
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:5.10pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">21%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$241
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$229
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">53%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">2005</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">403
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">395
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">47%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">95
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">96
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">22%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">2006</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">168
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">165
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">19%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">74
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">78
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">18%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">2007</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">118
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">110
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">13%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">7
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">7
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">2%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">2008-2013</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">20
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">21
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">5%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:9pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:44.56%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$858
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$844
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.71%;">100%
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.45%;">$437
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.12%;">$431
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.71%;">100%
 </TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">The following table summarizes the Company's general account commercial
mortgage-backed securities and other asset-backed securities collateral by rating (based on the Company's standard rating), as of the dates indicated:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR style="height:12.38pt;">
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:49.40%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:22.71%;" colspan="7">Amortized
 cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:24.71%;" colspan="7">Fair
 value </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:49.40%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">&#160;AAA
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.36%;">AA
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.85%;">A
 and<BR> below </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">Total
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">AAA
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.36%;">AA
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.85%;">A
 and<BR> below </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.75%;">Total
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:49.40%;">December&#160;31,
 2014:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.36%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.85%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.36%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.85%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.75%;">&#160;
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:49.40%;">
<DIV style="float:left;">Commercial mortgage-backed
securities</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.75%;">$
<FONT style="padding-left:7.50pt;"></FONT>811 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.36%;">$235
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.85%;">$385
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.75%;">$1,431
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.75%;">$
<FONT style="padding-left:7.50pt;"></FONT>847 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.36%;">$244
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.85%;">$411
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:6.75%;">$1,502
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:49.40%;">
<DIV style="float:left;">Other asset-backed
securities</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">839
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.36%;">268
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.85%;">303
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">1,410
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">835
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.36%;">261
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.85%;">269
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.75%;">1,365
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:9pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:49.40%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.75%;">$1,650
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.36%;">$503
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.85%;">$688
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.75%;">$2,841
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.75%;">$1,682
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.36%;">$505
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.85%;">$680
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:6.75%;">$2,867
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:5.10pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:49.40%;">December&#160;31,
 2013:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.36%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.85%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.36%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.85%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.75%;">&#160;
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:49.40%;">
<DIV style="float:left;">Commercial mortgage-backed
securities</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.75%;">$
<FONT style="padding-left:7.50pt;"></FONT>789 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.36%;">$206
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.85%;">$444
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.75%;">$1,439
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.75%;">$
<FONT style="padding-left:7.50pt;"></FONT>807 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.36%;">$217
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.85%;">$480
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:6.75%;">$1,504
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:49.40%;">
<DIV style="float:left;">Other asset-backed
securities</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">324
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.36%;">199
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.85%;">367
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">890
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.75%;">323
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.36%;">198
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.85%;">318
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.75%;">839
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:9pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:49.40%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.75%;">$1,113
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.36%;">$405
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.85%;">$811
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.75%;">$2,329
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.75%;">$1,130
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.36%;">$415
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.85%;">$798
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:6.75%;">$2,343
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Mortgage Loans, Net of
Allowance</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">As of December 31, 2014,
general account mortgage loans were $7.3 billion (16%) of the carrying value of consolidated general account investments compared to $6.3 billion (16%) as of December 31, 2013. Commercial mortgage loans represent 100% of the total mortgage loan
portfolio as of December 31, 2014 and 2013. Commitments to fund mortgage loans of $289 million were outstanding as of December 31, 2014 compared to $68 million as of December 31, 2013.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-42</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_43"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The table below summarizes the carrying values of mortgage
loans by regional exposure and property type, as of the dates indicated:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:46.64%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">Office
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">Industrial
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">Retail
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">Apartment
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">Hotel
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">Other
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">Total
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">December
 31, 2014<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:7.30%;">&#160;
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">Mortgage
 loans:<BR> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:6.87%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:7.61%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:3.92%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:4.16%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">&#160;
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">New
England</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:12.51pt;"></FONT>42 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:6.87%;">$
<FONT style="padding-left:12.51pt;"></FONT>10 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:12.51pt;"></FONT>39 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.61%;">$
<FONT style="padding-left:12.51pt;"></FONT>13 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:3.92%;">$
<FONT style="padding-left:12.01pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.16%;">$
<FONT style="padding-left:5.00pt;"></FONT>28 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.30%;">$
<FONT style="padding-left:7.50pt;"></FONT>132 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">Middle
Atlantic</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">170
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">151
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">363
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">168
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:21.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">3
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">855
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">East North
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">178
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">105
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">440
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">347
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">23
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">17
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">1,110
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">West North
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:28.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">8
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">66
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">74
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">134
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">282
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">South
Atlantic</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">129
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">266
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">687
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">579
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">30
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">48
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">1,739
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">East South
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">27
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">19
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">139
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">127
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">312
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">West South
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">51
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">143
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">266
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">300
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">760
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:46.64%;">
<DIV style="float:left;">Mountain</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">112
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">111
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">110
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">271
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">604
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:46.64%;">
<DIV style="float:left;">Pacific</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">323
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">329
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">463
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">345
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">34
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">8
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">1,502
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:18pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">Total amortized
cost</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$1,040
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.87%;">$1,200
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$2,581
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.61%;">$2,284
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.92%;">$
<FONT style="padding-left:5.00pt;"></FONT>87 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.16%;">$104
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.30%;">$7,296
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3.5pt;padding-left:18pt;padding-right:6pt;padding-top:3.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">Total valuation
allowance</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3.5pt;padding-right:6pt;padding-top:3.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3.5pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:14.51pt;"></FONT>(3) </TD>
<TD style="padding-bottom:3.5pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3.5pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.87%;">$
<FONT style="padding-left:14.51pt;"></FONT>(7) </TD>
<TD style="padding-bottom:3.5pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3.5pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:14.51pt;"></FONT>(6) </TD>
<TD style="padding-bottom:3.5pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3.5pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.61%;">$
<FONT style="padding-left:14.51pt;"></FONT>(9) </TD>
<TD style="padding-bottom:3.5pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3.5pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.92%;">$
<FONT style="padding-left:12.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3.5pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3.5pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.16%;">$
<FONT style="padding-left:7.01pt;"></FONT>(1) </TD>
<TD style="padding-bottom:3.5pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3.5pt;padding-left:6pt;padding-top:3.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.30%;">$
<FONT style="padding-left:9.51pt;"></FONT>(26) </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:4pt;padding-left:27pt;padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">Total mortgage loans, net of
allowance</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:bottom;width:6.87%;">&#160; </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:6pt;padding-top:4pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">&#160;
 </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:6pt;padding-top:4pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">&#160;
 </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:6pt;padding-top:4pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">&#160;
 </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:6pt;padding-top:4pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">&#160;
 </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-top:4pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.30%;">$7,270
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">December
 31, 2013<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">&#160;
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">Mortgage
 loans:<BR> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:6.87%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:7.61%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:3.92%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:bottom;width:4.16%;">&#160; </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">&#160;
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">New England
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:12.51pt;"></FONT>56 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:6.87%;">$
<FONT style="padding-left:12.51pt;"></FONT>10 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:12.51pt;"></FONT>26 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.61%;">$
<FONT style="padding-left:12.51pt;"></FONT>14 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:3.92%;">$
<FONT style="padding-left:5.00pt;"></FONT>16 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.16%;">$
<FONT style="padding-left:5.00pt;"></FONT>28 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.30%;">$
<FONT style="padding-left:7.50pt;"></FONT>150 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">Middle Atlantic
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">140
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">162
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">345
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">154
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:21.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">5
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">806
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">East North Central
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">165
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">127
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">441
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">271
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">35
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">15
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">1,054
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">West North Central
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:28.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">9
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">73
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">43
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">120
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">245
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">South Atlantic
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">148
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">236
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">635
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">353
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:21.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">5
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">49
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">1,426
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">East South Central
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">22
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">20
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">134
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">149
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:21.01pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">9
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">334
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">West South Central
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">13
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">91
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">200
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">330
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">634
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">Mountain
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">36
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">99
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">114
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">220
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.02pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">-
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:18.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">469
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:9pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">Pacific
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">316
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">271
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">360
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">259
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">43
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:21.01pt;padding-right:6pt;padding-top:1.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">9
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.30%;">1,258
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:18pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">Total amortized
cost</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:7.50pt;"></FONT>905 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.87%;">$1,089
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$2,298
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.61%;">$1,870
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.92%;">$108
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.16%;">$106
 </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.30%;">$6,376
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:18pt;padding-right:6pt;padding-top:4pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">Total valuation allowance
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:6pt;padding-top:4pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:14.51pt;"></FONT>(6) </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:6pt;padding-top:4pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.87%;">$
<FONT style="padding-left:9.51pt;"></FONT>(10) </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:6pt;padding-top:4pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.30%;">$
<FONT style="padding-left:14.51pt;"></FONT>(9) </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:6pt;padding-top:4pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.61%;">$
<FONT style="padding-left:14.51pt;"></FONT>(7) </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:6pt;padding-top:4pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.92%;">$
<FONT style="padding-left:7.01pt;"></FONT>(1) </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-right:6pt;padding-top:4pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.16%;">$
<FONT style="padding-left:7.01pt;"></FONT>(2) </TD>
<TD style="padding-bottom:4pt;padding-right:6pt;padding-top:4pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:4pt;padding-left:6pt;padding-top:4pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.30%;">$
<FONT style="padding-left:9.51pt;"></FONT>(35) </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:27pt;padding-right:6pt;padding-top:3.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:46.64%;">
<DIV style="float:left;">Total mortgage loans, net of allowance
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:bottom;width:5.30%;">&#160; </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:bottom;width:6.87%;">&#160; </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.30%;">&#160;
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.61%;">&#160;
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.92%;">&#160;
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.16%;">&#160;
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:3.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.30%;">$6,341
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As of December 31, 2014, the
Company's largest exposure to any single borrower, region and property type was 1%, 24% and 35%, respectively, of the Company's general account mortgage loan portfolio compared to 2%, 22% and 36%, respectively, as of December 31, 2013.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As of December 31, 2014 and 2013, the Company's mortgage loans
classified as delinquent, foreclosed and restructured were immaterial as a percentage of the total mortgage loan portfolio.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See Note 6 to the audited consolidated financial statements
included in the F pages of this report for further details regarding the Company's investments in mortgage loans.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Credit Quality Information</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Given the current market environment, the
Company considers mortgage loans that are backed by office, industrial, and hotel collateral to be higher-risk property types. Hotels have room rates that are short-term in length and can be adjusted quickly, which has generally led to higher levels
of defaults and loss-severity. For the industrial and office property types (particularly flex office), downsizing and consolidation of space has resulted in lower occupancies; which, along with high tenant improvement and leasing commission costs
for re-tenanting space, have put pressure on cash-flows resulting in lower debt service coverage ("DSC") and higher LTV ratios.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">With regard to the other remaining property types (apartment,
retail and other), the Company also considers mortgage loans to be high-risk if their collateral characteristics include, but are not limited to: LTV ratios greater than 90%, low DSC ratios, increases in vacancies or concessions, falling rental
rates, and other loan specific characteristics that could indicate additional risk.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-43</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_44"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table provides relevant asset quality
information on these high-risk categories of mortgage loans, as of the dates indicated:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:54.01%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.41%;">Office
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.87%;">Industrial
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.91%;">Hotel
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.46%;">Other
<BR> high-risk </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.30%;">Total
<BR> Portfolio </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.14%;">%
<BR> of total </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:54.01%;">December
 31, 2014<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.41%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.87%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:3.91%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.46%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.14%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:54.01%;">
<DIV style="float:left;">Total valuation
allowance</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.41%;">$
<FONT style="padding-left:10.01pt;"></FONT>3 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.87%;">$
<FONT style="padding-left:10.01pt;"></FONT>6 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.91%;">$
<FONT style="padding-left:7.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.46%;">$
<FONT style="padding-left:5.00pt;"></FONT>3 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.30%;">$
<FONT style="padding-left:5.00pt;"></FONT>26 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:7.14%;">46%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:54.01%;">
<DIV style="float:left;">Refinanced
loans<SUP style="font-size:85%;vertical-align:text-top;">1</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.41%;">$105
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.87%;">$286
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.91%;">$
<FONT style="padding-left:5.00pt;"></FONT>8 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.46%;">$
<FONT style="padding-left:7.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.30%;">$938
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:7.14%;">43%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:54.01%;">
<DIV style="float:left;">Modified
loans<SUP style="font-size:85%;vertical-align:text-top;">2</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.41%;">$
<FONT style="padding-left:12.01pt;"></FONT>- </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.87%;">$
<FONT style="padding-left:5.00pt;"></FONT>18 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.91%;">$
<FONT style="padding-left:5.00pt;"></FONT>5 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.46%;">$12
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.30%;">$
<FONT style="padding-left:5.00pt;"></FONT>50 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.14%;">70%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:54.01%;">December
 31, 2013<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:4.41%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.87%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:3.91%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.46%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.30%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:7.14%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:54.01%;">
<DIV style="float:left;">Total valuation
allowance</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.41%;">$
<FONT style="padding-left:10.01pt;"></FONT>6 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.87%;">$
<FONT style="padding-left:5.00pt;"></FONT>10 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.91%;">$
<FONT style="padding-left:5.00pt;"></FONT>1 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.46%;">$
<FONT style="padding-left:5.00pt;"></FONT>4 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.30%;">$
<FONT style="padding-left:5.00pt;"></FONT>35 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:7.14%;">60%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:54.01%;">
<DIV style="float:left;">Refinanced
loans<SUP style="font-size:85%;vertical-align:text-top;">1</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.41%;">$130
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.87%;">$301
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:3.91%;">$
<FONT style="padding-left:5.00pt;"></FONT>8 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.46%;">$
<FONT style="padding-left:7.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.30%;">$949
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:7.14%;">46%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:54.01%;">
<DIV style="float:left;">Modified
loans<SUP style="font-size:85%;vertical-align:text-top;">2</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.41%;">$
<FONT style="padding-left:5.00pt;"></FONT>14 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.87%;">$
<FONT style="padding-left:5.00pt;"></FONT>22 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.91%;">$43
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.46%;">$13
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.30%;">$107
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.14%;">86%
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Includes all loans refinanced
at any time during the term of the loan. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Includes
all loans modified at any time during the term of the loan. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As noted above, an individual mortgage loan's LTV ratio is an
additional indicator of risk and the calculation of this ratio utilizes certain assumptions and estimates made by the Company. The LTV ratio is calculated as a ratio of the amortized cost of the subject loans to the fair value of the underlying real
estate collateral. The collateral value component is determined based on the Company's view of normalized property operating income for the real estate divided by the prevailing market capitalization rates. In determining the normalized property
operating income, the Company relies upon the most recent property operating statement information, and makes certain assumptions of future property rental income, property expenses, and expectations for vacancies, among other items.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's practice is to obtain updated property operating
statements at least on an annual basis. The Company performs an annual internal valuation of each property, based on these property operating statements. The Company's practice is to obtain external appraisals during the initial underwriting of the
loan.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table represents the amortized cost
(excluding valuation allowances) and average LTV ratio of mortgage loans considered high-risk by property region, as of the dates indicated:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:33.28%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.39%;" colspan="3">Office
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.39%;" colspan="3">Industrial
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:14.39%;" colspan="3">Hotel
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:16.39%;" colspan="3">Other
 high&#8211;risk </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:33.28%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.89%;">Amortized
<BR> cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.50%;">Average
<BR> LTV </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.89%;">Amortized
<BR> cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.50%;">Average
<BR> LTV </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.89%;">Amortized
<BR> cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.50%;">Average
<BR> LTV </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.89%;">Amortized
<BR> cost </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.50%;">Average
<BR> LTV </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">December
 31, 2014<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.89%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.89%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.89%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.89%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.50%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">New
England</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.89%;">$
<FONT style="padding-left:12.51pt;"></FONT>42 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">61%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.89%;">$
<FONT style="padding-left:12.51pt;"></FONT>10 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">50%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.89%;">$
<FONT style="padding-left:12.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.89%;">$
<FONT style="padding-left:7.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">Middle
Atlantic</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">170
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">63%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">151
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">52%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">East North
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">178
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">59%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">105
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">54%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">23
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">54%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">West North
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">8
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">66%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">66
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">62%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">17
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">92%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">South
Atlantic</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">129
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">49%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">266
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">61%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">30
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">58%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">12
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:7.50%;">110%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">East South
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">27
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">66%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">19
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">70%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">West South
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">51
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">69%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">143
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">54%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:33.28%;">
<DIV style="float:left;">Mountain</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">112
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">64%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">111
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">65%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:33.28%;">
<DIV style="float:left;">Pacific</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">323
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">55%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">329
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">55%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">34
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">64%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:18.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:9pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:33.28%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">$1,040
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">61%
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">$1,200
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">58%
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.89%;">$
<FONT style="padding-left:5.00pt;"></FONT>87 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">59%
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">$29
 </TD>
<TD style="padding-bottom:5.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:5.10pt;padding-left:6pt;padding-top:4.25pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">101%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:5.10pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">December
 31, 2013<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:bottom;width:6.89%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:bottom;width:5.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">&#160;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:5.10pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:5.10pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">&#160;
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">New
England</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.89%;">$
<FONT style="padding-left:12.51pt;"></FONT>56 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">57%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.89%;">$
<FONT style="padding-left:12.51pt;"></FONT>10 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">51%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.89%;">$
<FONT style="padding-left:5.00pt;"></FONT>16 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">75%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.89%;">$
<FONT style="padding-left:7.01pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">Middle
Atlantic</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">140
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">65%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">162
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">61%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">East North
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">165
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">61%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">127
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">56%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">35
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">69%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">West North
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">9
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">63%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">73
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">69%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">South
Atlantic</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">148
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">48%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">236
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">59%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">5
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">72%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">22
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:7.50%;">102%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">East South
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">22
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">66%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">20
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">69%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:21.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">9
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">50%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">25
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">92%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:33.28%;">
<DIV style="float:left;">West South
Central</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">13
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">60%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">91
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">58%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:18.01pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:33.28%;">
<DIV style="float:left;">Mountain</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">36
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">70%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">99
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">67%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.02pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:13.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">6
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">91%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:33.28%;">
<DIV style="float:left;">Pacific</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">316
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">59%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.51pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">271
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">56%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">43
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">66%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.01pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">-
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:18.01pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:7.50%;">-
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2.10pt;padding-left:9pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:33.28%;">
<DIV style="float:left;">Total</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.89%;">$
<FONT style="padding-left:7.50pt;"></FONT>905 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">59%
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">$1,089
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">60%
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">$108
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.50%;">67%
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.89%;">$53
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:11.00pt;padding-top:4.25pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.50%;">96%
 </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-44</DIV>
</DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_45"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For additional information on the Company's valuation
allowance on mortgage loans, as well as non-accrual and delinquent status loans, see Note 2 and Note 6 to the audited consolidated financial statements included in the F pages of this report.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Market Risk Sensitive Financial Instruments</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Company is subject to potential
fluctuations in earnings and the fair value of certain of its assets and liabilities, as well as variations in expected cash flows due to changes in interest rates and equity markets. The following discussion focuses on specific interest rate,
foreign currency and equity market risks to which the Company is exposed and describes strategies used to manage these risks. This discussion is limited to financial instruments subject to market risks and is not intended to be a complete discussion
of all of the risks to which the Company is exposed.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Interest Rate Risk</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Fluctuations in interest rates can impact the Company's
earnings, cash flows and the fair value of its assets and liabilities. In a declining interest rate environment, the Company may be required to reinvest the proceeds from maturing and prepaying investments at rates lower than the overall portfolio
yield, which could reduce future interest spread income. In addition, minimum guaranteed crediting rates on certain life and annuity contracts could prevent the Company from lowering its interest crediting rates to levels commensurate with
prevailing market interest rates, resulting in a reduction to the Company's interest spread income.</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table presents account values by range of
minimum guaranteed crediting rates and the current weighted average crediting rates for certain of the Company's products, as of the dates indicated:</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:39.28%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:17.71%;" colspan="3">Individual
 Products and<BR> Solutions-Annuity<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:18.31%;" colspan="3">Individual
 Products and<BR> Solutions-Life and NBSG<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:19.81%;" colspan="3">Retirement
 Plans<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:2.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:39.28%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.13%;">Account
<BR> value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:9.58%;">Weighted
<BR> average<BR> crediting rate </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.43%;">Account
<BR> value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:9.88%;">Weighted
<BR> average<BR> crediting rate </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">Account
<BR> value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:11.58%;">Weighted
<BR> average<BR> crediting rate </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">December
 31, 2014<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.13%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:9.58%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.43%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:11.58%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">Minimum
 guaranteed crediting rate of<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.13%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.58%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.43%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.58%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">
<DIV style="float:left;">3.51% or
greater</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.13%;">$
<FONT style="padding-left:7.50pt;"></FONT>130 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.58%;">4.28%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.43%;">$
<FONT style="padding-left:7.50pt;"></FONT>731 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.88%;">4.00%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>320 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:11.58%;">4.12%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">Minimum
 guaranteed crediting rate of<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.13%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.58%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.43%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.58%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">
<DIV style="float:left;">3.01% to
3.50%</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.13%;">$
<FONT style="padding-left:7.50pt;"></FONT>498 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.58%;">3.51%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.43%;">$
<FONT style="padding-left:19.52pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:15.51pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.88%;">n/a
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">$11,605
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:11.58%;">3.48%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">Minimum
 guaranteed crediting rate of<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.13%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.58%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.43%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.58%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">
<DIV style="float:left;">2.01% to
3.00%</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.13%;">$2,971
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.58%;">2.99%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.43%;">$4,212
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.88%;">3.38%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:5.00pt;"></FONT>1,670 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:11.58%;">3.11%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">Minimum
 guaranteed crediting rate of<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.13%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.58%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.43%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.58%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">
<DIV style="float:left;">0.01% to
2.00%</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.13%;">$3,492
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.58%;">1.64%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.43%;">$
<FONT style="padding-left:7.50pt;"></FONT>176 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.88%;">3.66%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>744 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:11.58%;">1.79%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">
<DIV style="float:left;">No minimum guaranteed crediting
rate<SUP style="font-size:85%;vertical-align:text-top;">4</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.13%;">$1,457
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.58%;">2.16%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.43%;">$
<FONT style="padding-left:7.50pt;"></FONT>292 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.88%;">7.21%
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>478 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.58%;">2.01%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">December
 31, 2013<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.13%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:9.58%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.43%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.25pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:center;vertical-align:bottom;width:11.58%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">Minimum
 guaranteed crediting rate of<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.13%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.58%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.43%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.58%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">
<DIV style="float:left;">3.51% or
greater</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.13%;">$
<FONT style="padding-left:7.50pt;"></FONT>138 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.58%;">4.28%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.43%;">$
<FONT style="padding-left:7.50pt;"></FONT>747 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.88%;">4.00%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:5.00pt;"></FONT>2,076 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:11.58%;">4.04%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">Minimum
 guaranteed crediting rate of<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.13%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.58%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.43%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.58%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">
<DIV style="float:left;">3.01% to
3.50%</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.13%;">$
<FONT style="padding-left:7.50pt;"></FONT>515 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.58%;">3.51%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.43%;">$
<FONT style="padding-left:19.52pt;"></FONT>- </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:16.01pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.88%;">n/a
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.23%;">$10,460
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:11.58%;">3.55%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">Minimum
 guaranteed crediting rate of<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.13%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.58%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.43%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.58%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">
<DIV style="float:left;">2.01% to
3.00%</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.13%;">$3,086
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.58%;">3.01%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.43%;">$3,823
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.88%;">3.45%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>770 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:11.58%;">2.63%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">Minimum
 guaranteed crediting rate of<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.13%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.58%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.43%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.58%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">
<DIV style="float:left;">0.01% to
2.00%</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.13%;">$3,799
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.58%;">1.82%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.43%;">$
<FONT style="padding-left:12.51pt;"></FONT>83 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.88%;">3.83%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>519 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:11.58%;">1.54%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:39.28%;">
<DIV style="float:left;">No minimum guaranteed crediting
rate<SUP style="font-size:85%;vertical-align:text-top;">4</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.13%;">$1,071
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.58%;">2.96%
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.43%;">$
<FONT style="padding-left:7.50pt;"></FONT>129 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:9.88%;">10.49%
 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.23%;">$
<FONT style="padding-left:12.51pt;"></FONT>472 </TD>
<TD style="padding-bottom:2.10pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:medium double #000000;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.10pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.58%;">2.08%
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Includes individual fixed
annuity products and the fixed investment options selected within the variable annuity products. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Includes universal life
products and the fixed investment options selected within the variable life products. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Includes group fixed annuity
products. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Includes
products with a stated minimum guaranteed crediting rate of 0%. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company attempts to mitigate this risk by managing the
maturity and interest-rate sensitivities of assets to be consistent with those of liabilities. In recent years, management has taken actions to address low interest rate environments and the resulting impact on interest spread margins, including
reducing commissions on fixed annuity sales,</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-45</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_46"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">launching new products with new guaranteed
rates, discontinuing the sale of its annual reset fixed annuities and invoking contractual provisions that limit the amount of variable annuity deposits allocated to the guaranteed fixed option. In addition, the Company adheres to a strict
discipline of setting interest crediting rates on new business at levels believed to be adequate to provide returns consistent with management expectations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">A rising interest rate environment could also result in a
reduction of interest spread income or an increase in policyholder surrenders. Existing general account investments supporting annuity liabilities had a weighted average maturity of approximately nine years as of December 31, 2014. Therefore, a
change in portfolio yield will lag changes in market interest rates. This lag increases if the rate of prepayments of securities slows. To the extent the Company sets renewal rates based on current market rates, this will result in reduced interest
spreads. Alternatively, if the Company sets renewal crediting rates while attempting to maintain a desired spread from the portfolio yield, the rates offered by the Company may be less than new money rates offered by competitors. This difference
could result in an increase in surrender activity by policyholders. If unable to fund surrenders with cash flow from operations, the Company might need to sell assets, which likely would have declined in value due to the increase in interest rates.
The Company mitigates this risk by offering products that assess surrender charges and/or market value adjustments at the time of surrender, and by managing the maturity and interest-rate sensitivities of assets to approximate those of
liabilities.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company offers a variety of variable
annuity programs with guaranteed minimum balance or guaranteed withdrawal benefits, and options are utilized to economically hedge a portion of these products. See Equity Market Risk for further explanation.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Asset/Liability Management Strategies to Manage Interest Rate
Risk</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company employs an asset/liability management
approach tailored to the specific requirements of each of its products. Each line of business has an investment policy based on its specific characteristics. The policy establishes asset maturity and duration, quality and other relevant
guidelines.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">An underlying pool or pools of investments
support each general account line of business. These pools consist of whole assets purchased specifically for the underlying line of business. In general, assets placed in any given portfolio remain there until they mature (or are called), but
active management of specific securities and sectors may result in portfolio turnover or transfers among the various portfolios.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Investment strategies are executed by dedicated investment
professionals based on the investment policies established for the various pools. To assist them in this regard, they receive periodic projections of investment needs from each line's management team. Line of business management teams, investment
portfolio managers and finance professionals periodically evaluate how well assets purchased and the underlying portfolio match the underlying liabilities for each line. In addition, sophisticated Asset/Liability Management models are employed to
project the assets and liabilities over a wide range of interest rate scenarios to evaluate the efficacy of the strategy for a line of business.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Using this information, in conjunction with each line's
investment strategy, actual asset purchases or commitments are made. In addition, plans for future asset purchases are formulated when appropriate. This process is repeated frequently so that invested assets for each line match its investment needs
as closely as possible. The primary objectives are to ensure that each line's liabilities are invested in accordance with its investment strategy and that over or under investment is minimized.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As part of this process, the investment portfolio managers
provide each line's management team with forecasts of anticipated rates that the line's future investments are expected to produce. This information, in combination with yields attributable to the line's current investments and its investment
"rollovers," gives the line management team data to use in computing and declaring interest crediting rates for their lines of business.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">There are two approaches to developing investment
policies:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">For liabilities where cash
flows are not interest sensitive and the credited rate is fixed (e.g., immediate annuities), the Company attempts to manage risk with a combination cash matching/duration matching strategy. Duration is a measure of the sensitivity of price to
changes in interest rates. For a rate movement of 100 basis points, the fair value of liabilities with a duration of 5 years would change by approximately 5%. For this type of liability, the Company generally targets an asset/liability duration
mismatch of -0.25 to +0.50 years. In addition, the Company attempts to minimize asset and liability cash flow mismatches, especially over the first five years. However, the desired degree of cash matching is balanced against the cost of cash
matching. </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-46</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_47"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">For liabilities where the
Company has the right to modify the credited rate and policyholders also have options, the Company's risk management process includes modeling both the assets and liabilities over multiple stochastic scenarios. The Company considers a range of
potential policyholder behavior as well as the specific liability crediting strategy. This analysis, combined with appropriate risk tolerances, drives the Company's investment policy. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Use of Derivatives to Manage Interest Rate Risk</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">See Note 7 to the audited consolidated
financial statements included in the F pages of this report for a discussion of the Company's use of derivatives to manage interest rate risk.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Characteristics of Interest Rate Sensitive Financial
Instruments</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The tables below provide
information about the Company's financial instruments as of December 31, 2014 that are sensitive to changes in interest rates. Insurance contracts that subject the Company to significant mortality risk, including life insurance contracts and
life-contingent immediate annuities are not included in the table.</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:35.18%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:46.81%;" colspan="13">Estimated
 year of maturities/repayments </TD>
<TD style="border-bottom:0.75pt solid #000000;padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:35.18%;">(in
 millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2015
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2016
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2017
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2018
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2019
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">There-
<BR> after </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">Total
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">2014
<BR> Fair<BR> Value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:7.56%;">2013
<BR> Fair<BR> Value </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">Assets
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Fixed
 maturity securities:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
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<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Corporate
 bonds:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">
<DIV style="float:left;">Principal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>891 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,050
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,389
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$2,001
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$2,700
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$16,218
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$24,249
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$25,900
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.56%;">$23,379
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:16pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">
<DIV style="float:left;">Weighted average interest
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">4.37%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">4.68%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">4.28%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">4.96%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.25%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">4.71%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">4.75%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Mortgage
 and other asset-backed securities:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">
<DIV style="float:left;">Principal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:15.56pt;"></FONT>4 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>21 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>32 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>27 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>6,451 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>6,535 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>6,706 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>6,346 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:16pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">
<DIV style="float:left;">Weighted average interest
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">9.45%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.28%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">6.05%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.28%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">4.08%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">4.10%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Other
 fixed maturity securities:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">
<DIV style="float:left;">Principal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>127 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>78 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>15 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>82 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>114 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>1,998 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>2,414 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>2,812 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>2,524 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:16pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">
<DIV style="float:left;">Weighted average interest
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.55%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">6.15%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">7.62%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.43%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">6.58%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">5.58%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">5.65%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Mortgage
 loans:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">
<DIV style="float:left;">Principal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>456 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>504 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>440 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>265 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>357 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>5,274 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>7,296 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>7,616 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>6,481 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:16pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">
<DIV style="float:left;">Weighted average interest
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.44%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.84%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.36%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">4.71%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">4.13%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">4.55%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">4.73%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Liabilities
<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Individual
 deferred fixed annuities:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:8pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">
<DIV style="float:left;">Principal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>870 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>767 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,243
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>756 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>476 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>1,838 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>5,950 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>5,804 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>5,964 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">
<DIV style="float:left;">Weighted average crediting
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.51%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.54%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.61%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.65%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.59%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">2.66%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Group
 pension deferred fixed annuities:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:8pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">
<DIV style="float:left;">Principal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,514
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,329
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,408
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,267
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>910 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>8,263 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$14,691
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$13,372
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.56%;">$12,849
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">
<DIV style="float:left;">Weighted average crediting
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">3.20%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">3.16%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.96%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.71%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.54%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">2.36%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Funding
 agreements:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:8pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">
<DIV style="float:left;">Principal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>12 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>31 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>67 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>98 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>800 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>760 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>1,768 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>1,765 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>890 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">
<DIV style="float:left;">Weighted average crediting
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.42%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.46%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.46%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.61%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.70%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">2.40%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Immediate
 annuities:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:8pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">
<DIV style="float:left;">Principal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>182 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>140 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>104 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>76 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>55 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>147 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>704 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>801 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>733 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">
<DIV style="float:left;">Weighted average crediting
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.20%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.22%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.26%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.30%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">5.35%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">5.39%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Short-term
 debt:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:8pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">
<DIV style="float:left;">Principal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>660 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:21.79pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>660 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>660 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>278 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">
<DIV style="float:left;">Weighted average interest
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.02%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:32.24pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">1.02%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">Long-term
 debt:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:8pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:35.18%;">
<DIV style="float:left;">Principal</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>700 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>700 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>1,069 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:7.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>1,004 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:35.18%;">
<DIV style="float:left;">Weighted average interest
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">7.67%
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">7.67%
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:7.56%;">&#160; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-47</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_48"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:36.33%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:46.81%;" colspan="13">Estimated
 year of maturities/repayments </TD>
<TD style="border-bottom:0.75pt solid #000000;padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:36.33%;">(in
 millions, except settlement prices) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2015
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2016
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2017
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2018
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2019
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">There-
<BR> after </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">Total
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.23%;">2014
<BR> Fair<BR> Value </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:6.74%;">2013
<BR> Fair<BR> Value </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">Deriviative
 Financial Instruments<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">Interest
 rate swaps:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">Pay
 fixed/receive variable:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Notional
value</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,263
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,706
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>878 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,201
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,234
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$25,220
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$31,502
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.23%;">$(2,457)
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>878 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:16pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Weighted average pay
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.32%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">1.69%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.02%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.91%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.13%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">3.15%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">2.85%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:16pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Weighted average receive
rate<SUP style="font-size:85%;vertical-align:text-top;">1</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">0.32%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">0.28%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">0.47%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">0.29%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">0.25%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">0.30%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">0.30%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">Pay
 variable/receive fixed:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Notional
value</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,985
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$2,046
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>120 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,291
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>485 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$28,282
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$34,209
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.23%;">$
<FONT style="padding-left:2.66pt;"></FONT>2,457 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.74%;">($1,198)
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:16pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Weighted average pay
rate<SUP style="font-size:85%;vertical-align:text-top;">1</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">0.31%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">0.26%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">0.31%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">0.27%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">0.27%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">0.30%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">0.29%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:16pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Weighted average receive rate
</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade"> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.39%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">1.22%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">3.59%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.16%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">2.58%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">3.09%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">2.84%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">Pay
 fixed/receive fixed:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Notional
value</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>48 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>382 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>430 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.23%;">$
<FONT style="padding-left:13.78pt;"></FONT>11 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.74%;">$
<FONT style="padding-left:8.45pt;"></FONT>(18) </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:16pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Weighted average pay
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">4.73%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">4.07%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">4.14%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:16pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Weighted average receive
rate</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:14.89pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">6.16%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:27.79pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:4.74%;">-
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">4.72%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:19.34pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.56%;">4.88%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">Credit
 default swaps purchased:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Notional
value</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:15.56pt;"></FONT>2 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:21.79pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:20.01pt;"></FONT>2 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.23%;">$
<FONT style="padding-left:20.01pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">Total
 return swaps<SUP style="font-size:85%;vertical-align:text-top;">2</SUP>:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Notional
value</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$2,732
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>76 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:21.79pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>2,808 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.23%;">$
<FONT style="padding-left:11.12pt;"></FONT>(41) </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.74%;">$
<FONT style="padding-left:8.45pt;"></FONT>(46) </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">Embedded
 derivatives:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:8pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Notional
value</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:17.35pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:21.79pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:21.79pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.23%;">$
<FONT style="padding-left:6.67pt;"></FONT>(264) </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.74%;">$1,005
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">Option
 contracts:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">Long
 positions:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:4.74%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.56%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:5.23%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.74%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Contract amount/notional
value</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$4,091
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$1,176
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>546 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:11.12pt;"></FONT>14 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>163 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:21.79pt;"></FONT>- </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:4.45pt;"></FONT>5,990 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:5.23%;">$
<FONT style="padding-left:9.33pt;"></FONT>411 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:6.74%;">$
<FONT style="padding-left:6.67pt;"></FONT>343 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:16pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:36.33%;">
<DIV style="float:left;">Weighted average settlement
price</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.74%;">$
<FONT style="padding-left:15.56pt;"></FONT>1 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.74%;">$1,577
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.74%;">$1,631
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.74%;">$1,588
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:4.74%;">$1,351
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:21.79pt;"></FONT>- </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:5.56%;">$
<FONT style="padding-left:11.12pt;"></FONT>500 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.23%;">&#160;
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:Normal;line-height:11pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:6.74%;">&#160;
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Variable rates are generally
based on 1, 3 or 6-month U.S. LIBOR and reflect the effective rate as of December 31, 2014. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Total return swaps are based
on the Europe, Australasia and Far East Index from Morgan Stanley Capital International (EAFE Index). </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Additional information about the characteristics of the
financial instruments and assumptions underlying the data presented in the table on the preceding page are as follows:</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Mortgage-backed securities and other asset-backed securities:<FONT
 style="font-style:Normal;"> The year of maturity is determined based on the terms of the securities and the current estimated rate of prepayment of the underlying pools of mortgages or assets. The Company limits its exposure to prepayments by
purchasing less volatile types of mortgage-backed securities and asset-backed securities investments.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Corporate bonds and other fixed maturity securities and
mortgage loans:<FONT style="font-style:Normal;"> The maturity year is that of the security or loan.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Individual deferred fixed annuities:<FONT
 style="font-style:Normal;"> The maturity year is based on the expected date of policyholder withdrawal, taking into account actual experience, current interest rates and contract terms. Individual deferred fixed annuities are certain individual
annuity contracts, which are also subject to surrender charges calculated as a percentage of the deposits made and assessed at declining rates during the first seven years after a deposit is made. Individual deferred fixed annuities of $0.8 billion
of participating group annuity contracts in 2014</FONT><FONT style="font-style:Normal;"> and 2013 were in contracts where the crediting rate is guaranteed for a set term. Individual deferred fixed annuity general account liabilities totaling $4.9
billion and $4.7 billion as of December 31, 2014 and 2013, respectively, were in contracts where the crediting rate is reset periodically with portions resetting in each calendar quarter, and $610 million that reset annually in 2014 compared to $627
million in 2013. Individual fixed annuity policy reserves of $1.9 billion in 2014 and $2.1 billion in 2013 were in contracts that adjust the crediting rate every five years. Individual deferred fixed annuity policy reserves of $358 million in 2014
were in contracts that adjust the crediting rate every three years compared to $406 million in 2013. The average crediting rate is calculated as the difference between the projected yield of the assets backing the liabilities and a targeted interest
spread. However, for certain individual deferred annuities the crediting rate is also adjusted to partially reflect current new money rates.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Group pension deferred fixed annuities:<FONT
 style="font-style:Normal;"> The maturity year is based on the expected date of policyholder withdrawal, taking into account actual experience, current interest rates and contract terms. Included were group annuity contracts representing $14.9
billion and $14.3 billion of general account liabilities as of December 31, 2014 and 2013, respectively, which are generally subject to market value adjustment upon surrender and which also may be subject to surrender</FONT></DIV> </DIV>
<DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-48</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_49"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">charges. Of the total group deferred fixed
annuity liabilities, $13.4 billion ($12.8 billion in 2013) were in contracts where the crediting rate is reset quarterly, $864 million ($761 million in 2013) were in contracts that adjust the crediting rate on an annual basis with portions resetting
in each calendar quarter, and $664 million ($710 million in 2013) were in contracts where the crediting rate is reset annually on January 1.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Funding agreements:<FONT style="font-style:Normal;"> Funding
agreements were issued in conjunction with the MTN program where the crediting rate either was fixed for the term of the contract or were variable based on an underlying index. The MTN program concluded in the fourth quarter of 2012 and as of
December 31, 2014, the Company had no outstanding MTNs. Beginning in 2012, funding agreements have been issued to the FHLB. Such funding agreements (commonly referred to as advances) have interest and principal repayment terms which cannot be
altered by the FHLB for the term of such advances. The maturity year is based upon the principal repayment schedule of these advances.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Immediate annuities:<FONT style="font-style:Normal;"> Non-life
contingent contracts in payout status where the Company has guaranteed periodic payments, typically monthly, are included. The maturity year is based on the term of the contract.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Short-term debt and long-term debt:<FONT
 style="font-style:Normal;"> The maturity year is the stated maturity date of the obligation.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Derivative financial instruments:<FONT
 style="font-style:Normal;"> The maturity year is based on the terms of the related contract. Interest rate swaps include cross-currency interest rate swaps, which are used to reduce the Company's existing asset and liability foreign currency
exposure. Cross-currency interest rate swaps in place against each foreign currency obligation hedge the Company against adverse currency movements with respect to both period interest payments and principal repayment. Underlying details by currency
therefore have been omitted. Variable swap rates and settlement prices reflect rates and prices in effect as of December 31, 2014.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Foreign Currency Risk</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As part of its regular investing activities, the Company may
purchase foreign currency denominated investments. These investments and the associated income expose the Company to volatility associated with movements in foreign exchange rates. In an effort to mitigate this risk, the Company uses cross-currency
swaps. As foreign exchange rates change, the increase or decrease in the cash flows of the derivative instrument generally offsets the changes in the functional-currency equivalent cash flows of the hedged item.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Credit Risk</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company enters into credit derivative contracts, primarily
credit default swaps, under which the Company buys and sells credit default protection on specific corporate creditors. These derivatives allow the Company to manage or modify its credit risk profile in general or its credit exposure to specific
creditors.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Equity Market Risk</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Asset fees calculated as a percentage of
separate account assets are a significant source of revenue to the Company. As of December 31, 2014 and 2013, approximately 84% and 81%, respectively, of separate account assets were invested in equity mutual funds. Gains and losses in the equity
markets result in corresponding increases and decreases in the Company's separate account assets and asset fee revenue. In addition, a decrease in separate account assets may decrease the Company's expectations of future profit margins due to a
decrease in asset fee revenue and/or an increase in guaranteed contract claims, which also may require the Company to accelerate amortization of DAC.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company's long-term assumptions for net separate account
investment performance consist of assumed gross returns of 10.5% for equity funds and 5.0% for fixed funds. This analysis assumes no other factors change and that an unlocking of DAC assumptions would not be required. However, as it does each
quarter, the Company would evaluate its DAC balance and underlying assumptions to determine the need for unlocking. The Company can provide no assurance that the experience of flat equity market returns would not result in changes to other factors
affecting profitability, including the possibility of unlocking of DAC assumptions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Many of the Company's individual variable annuity contracts
offer GMDB features. A GMDB generally provides a benefit if the annuitant dies and the contract value is less than a specified amount, which may be based on premiums paid less amounts withdrawn or contract value on a specified anniversary date. A
decline in the stock market causing the contract value to fall below this specified amount, which varies from contract to contract based on the date the contract was entered into as well as the GMDB feature elected, will increase the net amount at
risk, which is the GMDB in excess of the contract value. This could result in additional GMDB claims.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-49</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_50"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">To mitigate this risk, the Company
implemented a GMDB economic hedging program for certain new and existing business. Prior to implementation of the GMDB hedging program in 2000, the Company managed this risk primarily by entering into reinsurance arrangements. The GMDB economic
hedging program is designed to offset changes in the economic value of the designated GMDB. Currently the program shorts equity index futures, which provides an offset to changes in the value of the designated obligation. The futures are not
designated as hedges and, therefore, hedge accounting is not applied. The Company's economic hedges and the GMDB policyholder liability are not perfectly offset. Therefore, the hedging activity is likely to lead to earnings volatility that would not
exist if the GMDB policyholder liability was also on an economic basis. As of December 31, 2014 and 2013, the Company's net amount at risk was $313 million and $250 million, respectively. As of December 31, 2014 and 2013, the Company's reserve for
GMDB claims was $76 million and $55 million, respectively.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Company issues variable annuity contracts through its
separate accounts, for which investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder. The Company also provides various forms of guarantees to benefit the related contractholders.
The Company provides five primary guarantee types of variable annuity contracts: (1) GMDB; (2) GMAB; (3) GLWB; (4) a hybrid guarantee with GMAB and GLWB; and (5) GMIB. See Note 4 to the audited consolidated financial statements included in the F
pages of this report for further information regarding these guarantees.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Equity market and interest rate risk management:<FONT
 style="font-style:Normal;"> These variable annuity products and related obligations expose the Company to various market risks, predominately interest rate and equity risk. Adverse changes in the equity markets or interest rate movements expose the
Company to significant volatility. To mitigate these risks and hedge the guaranteed benefit obligations, the Company enters into a variety of derivatives including interest rate swaps, equity index futures, options and total return
swaps.</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Inflation</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The rate of inflation did not have a
material effect on the revenues or operating results of the Company during 2014, 2013 or 2012.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:12pt;text-align:left;text-decoration:none;text-transform:uppercase;"><FONT style="text-decoration:underline;">Directors of the
Registrant</FONT></DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.73%;">Name
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">Age
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;width:68.37%;">Date
 Service Began </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">John
 L. Carter </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">52
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">February
 2013 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Timothy
 G. Frommeyer </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">50
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">January
 2009 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Eric
 S. Henderson </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">52
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">March
 2012 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Stephen
 S. Rasmussen </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">62
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">January
 2009 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Mark
 R. Thresher </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">58
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">January
 2009 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Kirt
 A. Walker </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">51
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">December
 2009 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For biographical information
on Messrs. Carter, Frommeyer, Henderson, Rasmussen, Thresher, and Walker, please see the information provided below in "Executive Officers of the Registrant."</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:12pt;text-align:left;text-decoration:none;text-transform:uppercase;"><FONT style="text-decoration:underline;">Executive
Officers of the Registrant</FONT></DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.73%;">Name
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">Age
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;width:68.37%;">Position
 with NLIC </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Stephen
 S. Rasmussen </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">62
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">NMIC
 Chief Executive Officer<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Kirt
 A. Walker </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">51
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">President
 and Chief Operating Officer </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Patricia
 R. Hatler </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">60
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Executive
 Vice President&#8211;Chief Legal and Governance Officer </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Matthew
 Jauchius </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">45
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Executive
 Vice President &#8211; Chief Marketing Officer </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Michael
 C. Keller </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">55
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Executive
 Vice President&#8211;Chief Information Officer </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Gale
 V. King </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">58
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Executive
 Vice President&#8211;Chief Human Resources Officer </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Mark
 R. Thresher </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">58
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Executive
 Vice President </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">John
 L. Carter </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">52
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Senior
 Vice President&#8211;Nationwide Retirement Plans </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Timothy
 G. Frommeyer </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">50
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Senior
 Vice President&#8211;Chief Financial Officer </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">David
 L. Giertz </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">51
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Senior
 Vice President-Nationwide Financial Distribution and Sales </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Peter
 A. Golato </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">61
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Senior
 Vice President&#8211;Nationwide Financial Network </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Harry
 H. Hallowell </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">54
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Senior
 Vice President&#8211;Chief Investment Officer </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Eric
 S. Henderson </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">52
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Senior
 Vice President&#8211;Individual Products &amp; Solutions </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-50</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_51"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:0pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.73%;">Name
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">Age
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;width:68.37%;">Position
 with NLIC </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Steven
 C. Power </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">57
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Senior
 Vice President&#8211;Nationwide Financial </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Michael
 S. Spangler </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:3.01%;">48
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:68.37%;">Senior
 Vice President&#8211;Investment Management Group </TD></TR></TABLE> </DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">NMIC is our ultimate parent
company; however, Mr. Rasmussen does not serve as NLIC's chief executive officer. </TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Business experience for each of the individuals listed in the
previous table is set forth below:</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Stephen S. Rasmussen<FONT
 style="font-weight:Normal;"> has been the Nationwide enterprise chief executive officer since February 2009. He previously served as the President and Chief Operating Officer of NMIC and Executive Vice President of NLIC from September 2003 to
February 2009. He has served as a director of NLIC since January 2009.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Kirt A. Walker<FONT style="font-weight:Normal;"> has been
President and Chief Operating Officer and a director of NLIC since December 2009. Previously, Mr. Walker was President and Chief Operating Officer&#8211;Nationwide Insurance of NMIC since March 2009. Prior to that time, he served as President,
Nationwide Insurance Exclusive Operations of NMIC from November 2008 to March 2009; President, Nationwide Insurance Eastern Operations of NMIC from March 2006 to October 2008; and President, Allied Insurance of NMIC from September 2003 to February
2006. Mr. Walker has been with Nationwide since 1986.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Patricia R. Hatler<FONT style="font-weight:Normal;"> has been
Executive Vice President&#8211;Chief Legal and Governance Officer of NLIC since December 2004. Previously, Ms. Hatler served as Executive Vice President and General Counsel from October 2004 to December 2004.</FONT></DIV>
<DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Matthew Jauchius<FONT style="font-weight:Normal;"> has been
Executive Vice President&#8211;Chief Marketing Officer since August 2012. Prior to that time, he was Senior Vice President&#8211;Chief Marketing and Strategy Officer from December 2010 to August 2012 and Senior Vice President-Chief Strategy Officer,
OCEO Administration from April 2009 to December 2010 and served as Vice President&#8211;</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">PCIO Strategy for NMIC from April 2007 to April 2009, and Vice
President&#8211;Strategic Planning for NMIC from June 2006 to April 2007. Prior to that time, Mr. Jauchius was Associate Principal with McKinsey &amp; Company from September 1998 to June 2006.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Michael C. Keller<FONT style="font-weight:Normal;"> has been
Executive Vice President&#8211;Chief Information Officer of NLIC since August 2001. Mr. Keller has been Executive Vice President&#8211;Chief Information Officer of several other Nationwide companies since June 2001.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Gale V. King<FONT style="font-weight:Normal;">
has been Executive Vice President&#8211;Chief Human Resources Officer of NLIC since May 2009. Previously, she was Senior Vice President&#8211;Property and Casualty Human Resources of NMIC from October 2003 to February 2009. Ms. King has been with
Nationwide since 1983.</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Mark R. Thresher<FONT
 style="font-weight:Normal;"> has been Executive Vice President&#8211;Finance of NLIC since December 2009 and has served as a director of NLIC since January 2009. Prior to that time, he was President and Chief Operating Officer of NLIC from May 2004
to December 2009.</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">John L. Carter <FONT
 style="font-weight:Normal;">has been Senior Vice President&#8211;Nationwide Retirement Plans of NLIC since April 2013 and President and Chief Operating Officer of Nationwide Retirement Solutions, Inc. since July 2013. He has served as a director of
NLIC since February 2013. Prior to that time, Mr. Carter served as Senior Vice President of other Nationwide companies from November 2005 to April 2013.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Timothy G. Frommeyer<FONT style="font-weight:Normal;"> has been
Senior Vice President&#8211;Chief Financial Officer of NLIC and several other Nationwide companies since November 2005, and has served as a director of NLIC since January of 2009.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">David L. Giertz <FONT
 style="font-weight:Normal;">has been Senior Vice President-NF Distribution and Sales of NLIC since 4/3/2013. Previously, Mr. Giertz served as Vice President-Sales, FI/WH from 2009 to 2013, and Vice President-NF Sales (Bank Channel) from 2004 to
2009. Mr. Giertz also serves as Director, President and Senior Vice President for several other Nationwide companies.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Peter A. Golato<FONT style="font-weight:Normal;"> has been
Senior Vice President&#8211;Nationwide Financial Network of NLIC and several other Nationwide companies since September 2011. He served as a director of NLIC from January 2009 to March 2012. Prior to that time, he served as Senior Vice
President&#8211;Individual Protection Business Head of NLIC and several other Nationwide companies from May 2004 to September 2011.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Harry H. Hallowell<FONT style="font-weight:Normal;"> has been
Senior Vice President&#8211;Chief Investment Officer of NLIC since January 2010. Previously, Mr. Hallowell served as Senior Vice President and Treasurer of NLIC and several other Nationwide companies from January 2006 through December
2009.</FONT></DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Eric S. Henderson<FONT
 style="font-weight:Normal;"> has been Senior Vice President&#8211;Individual Products &amp; Solutions of NLIC and several other companies within Nationwide since September 2011. He has served as a director of NLIC since March 2012. Previously, Mr.
Henderson served as Senior Vice President&#8211;Individual Investments Business Head from August 2007 to September 2011 and as Vice President and Chief Financial Officer&#8211;Individual Investments from August 2004 to August 2007.</FONT></DIV>
</DIV> <DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-51</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_52"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Steven C. Power<FONT style="font-weight:Normal;"> has been
Senior Vice President&#8211;Nationwide Financial since January 2010. Previously, Mr. Power was President and CEO of NatCity Investments, Inc., a wholly owned subsidiary of National City Corporation, from July 2004 to April 2009.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Michael S. Spangler<FONT style="font-weight:Normal;"> has been
Senior Vice President&#8211;Investment Management Group since May 2008. Previously, Mr. Spangler was Managing Director at Morgan Stanley from May 2004 to June 2008.</FONT></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">EXECUTIVE COMPENSATION</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">Compensation Discussion and Analysis</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Introduction</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Our mission is to create value for customers and businesses
(our "stakeholders") by protecting what is important to them, helping them build a secure financial future, and providing the best personalized customer experience through competitively priced, high quality products. We motivate our executives to
achieve these goals, in part, by delivering direct rewards, including base salary, short-term and long-term incentives and other benefits and perquisites. Consistent with our pay for performance philosophy, we focus our compensation programs
substantially upon sustained financial performance as well as overall customer satisfaction. Compensation levels will increase or decrease to the extent we meet our pre-established performance expectations. The discussion below is intended to show
how:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">our financial planning
process leads to financial objectives; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">we translate financial and
individual objectives into incentive opportunities; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">we consider individual
performance and use other non-financial factors to create flexibility in our compensation programs; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">we think
about both the level and form of these rewards, which we believe helps us to attract and retain the executive talent that is necessary to create stakeholder value. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Compensation Process and Roles</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">NMIC Human Resources Committee</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Our board relies on the human resources committee of the NMIC
board of directors for compensation decisions. The NMIC human resources committee's primary purpose is to discharge the responsibilities of the NMIC board of directors as to the compensation of our executive officers and the executive officers of
our parent company, subsidiaries and affiliates. Other duties of the NMIC human resources committee include carrying out the board of directors' oversight responsibilities by reviewing our human resources, compensation and benefit practices.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The operation of the NMIC human resources committee is
outlined in a charter that has been adopted by the NMIC board of directors. The charter provides that the committee's duties include, among other things:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">establishment of an overall
compensation philosophy; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">oversight and review of
human resources programs for directors, executive officers and associates; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">responsibility for approval
of salaries, incentive compensation plans and awards under such plans for certain executive officers, including those named in the "Summary Compensation Table for 2014," whom we refer to as the "named executive officers;" and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">oversight
of people and culture risk position and risk management practices, including risk policy, strategy, tolerance and control. Key areas of risk oversight focus include key person risk and succession planning, employment practices, workplace safety,
organizational culture and compensation design. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources committee met seven times during
2014.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Compensation Consultants</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources committee has the
sole authority to retain and terminate any consultant assisting in the evaluation of compensation, and has the power to retain independent counsel, auditors or others to assist in the conduct of any investigation into matters within the NMIC human
resources committee's scope of responsibilities. The NMIC human resources committee has retained Pearl Meyer &amp; Partners, or "PM&amp;P," to be its compensation consultant. PM&amp;P consultants attend NMIC human resources committee meetings to
provide information and perspective on competitive compensation practices and to raise issues management and/or the NMIC human resources committee should address. With committee concurrence, management, at times, directed PM&amp;P to perform
additional services in support of committee agendas, which included data, analysis and any supporting background material needed for the discussions.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-52</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_53"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">PM&amp;P also recommended pay program and compensation changes. Upon request
of the NMIC human resources committee, members of management also attended these meetings in order to provide information and answer questions regarding our strategic objectives, financial performance and legal and regulatory issues that impact the
committee's functions. When the NMIC human resources committee met in executive session, certain members of management and PM&amp;P attended as needed.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Role of Executives in Establishing the Compensation of our Named
Executive Officers</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human
resources committee has the primary authority to establish the compensation, including compensation targets, payments and individual performance contributions, for our named executive officers and administers all of our executive compensation
arrangements and policies. Messrs. Rasmussen and Walker assist the NMIC human resources committee by providing recommendations regarding the compensation of our named executive officers other than themselves and Mr. Frommeyer. In addition, Mr.
Rasmussen assists the NMIC human resources committee by providing recommendations regarding the compensation of Mr. Walker and Mark R. Thresher, the NMIC Chief Financial Officer, assists the committee by providing recommendations regarding the
compensation of Mr. Frommeyer.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources
committee and the entire NMIC board of directors exercise their discretion to modify or accept these recommendations.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Mr. Rasmussen routinely attends a portion of the meetings of
the NMIC human resources committee. However, the NMIC human resources committee often meets in executive session without him or other members of management when discussing compensation matters and on other occasions as determined by the NMIC human
resources committee.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Compensation Objectives and
Philosophy</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources committee believes
the compensation programs for executive officers should support our business strategies and operate within a market competitive framework. In addition, the NMIC human resources committee determines compensation based on our overall financial
results, as well as individual and group contributions that help build value for stakeholders. Our compensation programs are designed to drive desired behaviors in our executive officers using a mix of compensation elements to satisfy the personal
and financial needs of our current and future workforce given existing and forecasted business conditions and cost constraints. Our board of directors is committed to this compensation philosophy. The objectives of our compensation programs are
to:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">align the interests of
executives with those of stakeholders; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">maintain a strong link
between pay and performance; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">ensure an
appropriate percentage of executive compensation is contingent upon both our performance and each executive officer's individual performance; and </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:20pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">attract, retain and motivate
top-caliber executive officers with compensation that is competitive in level and form. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table illustrates our primary compensation
components and the intended purpose, including links to our objectives:</DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:30.96%;">Compensation
 element </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:32.07%;">Description
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:34.07%;">Purpose
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:30.96%;">Base
 Salary<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:32.07%;">Cash
 compensation that is a fixed component of total compensation. </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:15pt;padding-top:4.38pt;text-align:left;text-decoration:none;text-indent:-9pt; text-transform:none;vertical-align:top;width:34.07%;">&#8226;&#8194;attract
 and retain top-caliber executive talent<BR> &#8226;&#8194;recognize executive officers' skills, competencies, experience and job responsibilities<BR> &#8226;&#8194;reward individual performance against pre-established objectives </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:30.96%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:32.07%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:34.07%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:30.96%;">Short-term
 Incentive<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:32.07%;">Cash
 payments awarded after the completion of a one-year performance period. </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:15pt;padding-top:3pt;text-align:left;text-decoration:none;text-indent:-9pt; text-transform:none;vertical-align:top;width:34.07%;">&#8226;&#8194;reward
 executives for achieving objective annual performance goals<BR> &#8226;&#8194;recognize performance on individual objectives relative to the performance of other executive officers </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:30.96%;">&#160; </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:32.07%;">&#160; </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:8pt;padding-top:3pt;text-align:left;vertical-align:top;width:34.07%;">&#160; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-53</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_54"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:0pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:30.96%;">Compensation
 element </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:32.07%;">Description
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:34.07%;">Purpose
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:30.96%;">Long-term
 Incentive<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:32.07%;">Cash
 awards based on performance over multiple years and subject to forfeiture. </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:15pt;padding-top:4.38pt;text-align:left;text-decoration:none;text-indent:-9pt; text-transform:none;vertical-align:top;width:34.07%;">&#8226;&#8194;reward
 executives for sustained long-term performance<BR> &#8226;&#8194;retain and motivate executives to ensure business stability and success<BR> &#8226;&#8194;recognize the achievement of performance objectives that drive long-term success and
financial stability and create value for our customers<BR> &#8226;&#8194;create a link between Nationwide Financial Services, Inc., or "NFS," our direct parent company, and NMIC to better facilitate a shared business model </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:30.96%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:32.07%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:34.07%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:30.96%;">Executive
 Benefits and Perquisites<BR> </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:32.07%;">Includes
 pension plans, deferred compensation plans and personal perquisites. </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:15pt;padding-top:3pt;text-align:left;text-decoration:none;text-indent:-9pt; text-transform:none;vertical-align:top;width:34.07%;">&#8226;&#8194;attract
 and retain top-caliber executive talent<BR> &#8226;&#8194;provide income after retirement and enable saving of income for retirement </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Organizational Structure with Respect to Compensation
Decisions</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Our named executive officers
provide services to other Nationwide companies in addition to NLIC. Decisions regarding the total compensation levels of our named executive officers are made by the NMIC human resources committee based on their roles within NFS and NMIC, as
applicable. The NMIC human resources committee does not consider the roles of named executive officers with respect to NLIC in determining total compensation. Instead, we paid an allocable portion of total compensation for our named executive
officers, which was determined pursuant to a cost-sharing agreement among several Nationwide companies. The remainder of their compensation was allocated to and paid by other Nationwide companies according to the terms of the cost-sharing
agreement.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Amounts we disclose in this prospectus
reflect only compensation allocated to and paid by NLIC; however, performance is measured at the NFS and/or NMIC level, which includes NLIC performance, when determining compensation for our named executive officers. As a result, metrics and results
discussed herein will refer to NFS or NMIC metrics and results as applicable. The methods we use for the allocation of compensation paid to our named executive officers varies by officer and the type of compensation and is discussed in more detail
in "2014 Compensation Programs Design and Implementation."</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Benchmarking and Compensation Target-Setting Process</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources committee uses competitive market
data as an important tool to aid in making decisions on compensation. The NMIC human resources committee compared our compensation practices to those of companies that compete with NMIC for customers, capital and/or executive officers, and are
similar to NMIC or NFS in size, scope, and/or business focus. Our market data sources included:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">companies in three
comparator groups that the NMIC human resources committee identified in order to provide a holistic view of the competitive market, consisting of: </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:4.29%;margin-top:0pt;width:93.35%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%; ">twenty-three companies in
the insurance and broader financial services industry ("Industry Comparator Group"); </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.01%;">a general
industry comparator group consisting of forty-three public companies above and below NMIC's Fortune 500 ranking (#100) based on NMIC's statutory revenue; and </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:38pt;margin-top:4pt;width:93.35%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:5pt;font-style:Normal;font-weight:Normal;line-height:8pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.99%;">&#10061;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.01%;">a general industry comparator
group consisting of forty-nine public companies above and below NMIC's Fortune 500 ranking (#130) based on NMIC's GAAP revenue; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">companies that participate
in commercially available financial services industry and general industry compensation surveys. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The insurance companies in the Industry Comparator Group
are:</DIV> </DIV> <DIV style="clear:both;font-size:12pt;height:0pt;margin-top:9pt;width:100%;"> </DIV> <DIV style="float:left;overflow:hidden;position:relative;width:33%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:10.47%;margin-top:0pt;width:89.53%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Met Life, Inc. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Prudential Financial, Inc.
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Hartford Financial Services
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.75%;">Lincoln
National Corp. </TD></TR></TABLE> </DIV> </DIV> <DIV style="float:left;margin-left:0.5%;overflow:hidden;position:relative;width:33%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:10.47%;margin-top:0pt;width:89.53%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Allstate Corp </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Principal Financial Group,
Inc. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Travelers Cos, Inc.
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.75%;">Genworth
Financial, Inc. </TD></TR></TABLE> </DIV> </DIV> <DIV style="float:right;overflow:hidden;position:relative;width:33%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:10.47%;margin-top:0pt;width:89.53%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">AFLAC, Inc. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">CNA Financial Corp
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Unum Group </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.75%;">Chubb
Corp </TD></TR></TABLE> </DIV> </DIV> <DIV style="clear:both;font-size:12pt;"> <DIV style="clear:both;width:100%;">
<DIV style="clear:both;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-54</DIV> </DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_55"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:33%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:10.47%;margin-top:4pt;width:89.53%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Progressive Corp-Ohio
</TD></TR></TABLE> </DIV> </DIV> <DIV style="margin-top:6pt;width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The banks in the Industry Comparator Group are:</DIV> </DIV>
<DIV style="clear:both;font-size:12pt;height:0pt;margin-top:2pt;width:100%;"> </DIV> <DIV style="float:left;overflow:hidden;position:relative;width:33%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:10.47%;margin-top:0pt;width:89.53%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">PNC Financial Services
Group, Inc. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Sun Trust Banks, Inc.
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.75%;">State
Street Corp </TD></TR></TABLE> </DIV> </DIV> <DIV style="float:left;margin-left:0.5%;overflow:hidden;position:relative;width:33%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:10.47%;margin-top:0pt;width:89.53%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">BB&amp;T Corp </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">American Express Co.
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Fifth Third Bancorp
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:96.75%;">KeyCorp
 </TD></TR></TABLE> </DIV> </DIV> <DIV style="float:right;overflow:hidden;position:relative;width:33%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:10.47%;margin-top:0pt;width:89.53%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Northern Trust Corp
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">Comerica, Inc. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:3.25%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:96.75%;">Huntington Bancshares,
 Inc. </TD></TR></TABLE> </DIV> </DIV> <DIV style="clear:both;font-size:12pt;"> <DIV style="clear:both;padding-top:6pt;width:100%;">
<DIV style="clear:both;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The surveys used to determine the financial
services industry competitive market data are:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Diversified Insurance Study
of Executive Compensation, Towers Watson, 2013 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Global Financial Services
Studies Executive Database, Towers Watson, 2013 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">US Property and Casualty
Insurance Compensation Survey Report, Mercer HR Consulting, 2013 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">General
Industry compensation surveys from Towers Watson, Mercer and Watson Wyatt, 2013 </TD></TR></TABLE> </DIV>
<DIV style="clear:both;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The surveys cover companies comparable in size to
NMIC and we did not rely on any one company or any single survey source. We used market data specific to the financial services industry for the named executive officers because the NMIC human resources committee believed it was appropriate to
compare our positions to others in our market for talent that require similar skills, knowledge and experience. We used general industry data for positions requiring broad skills, such as the NMIC Chief Executive Officer and our President and Chief
Operating Officer, to supplement the industry-specific view. Of the sources available to us, including proxy statements of other companies and commercially available surveys, we used sources we believe have the best matches for our positions. We
generally target pay at the market median because we believe such targets are necessary to compete for talent; however, when necessary to attract or retain exceptional talent or a unique skill set, we may target total compensation or an individual
element of compensation above the median. Annually, we engage in a talent planning process to:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">anticipate talent demands
and identify implications; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">identify critical roles;
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">conduct talent assessments;
and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">identify
successors for critical roles. </TD></TR></TABLE> </DIV>
<DIV style="clear:both;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The data gathered during this
process helps us identify what we refer to as "benchmark plus" executives or roles, for which we will manage total compensation up to the 75th percentile of the market data, primarily by increasing the short-term and long-term incentive targets as a
percent of salary. These positions may be those that lead a new business initiative or lead a significant business or enterprise initiative that directly impacts core strategic initiatives identified in the overall Nationwide business strategy. We
might also manage compensation above the market median if justified by the size of a business segment compared to the competitive market, as is the case for Mr. Carter with respect to his role overseeing our retirement plans business segment.</DIV>
<DIV style="clear:both;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Actual pay is expected to vary based on actual
results compared to goals. Executive officers can earn top-quartile pay for results exceeding the business plan and expectations with respect to individual performance objectives, and they can earn bottom-quartile pay for results not meeting
acceptable performance standards.</DIV> <DIV style="clear:both;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The
following table identifies the target compensation levels, a comparison of our target total compensation to the respective market target compensation level, and the rationale for providing total compensation at those levels.</DIV>
<DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:22.45%;">Name
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:23.55%;">Targeted
 market positioning </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:23.55%;">Current
 positioning of<BR> incumbent executive </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.55%;">Rationale
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:0pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:22.45%;">
<DIV style="float:left;">Kirt A. Walker, President and Chief Operating
Officer</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:23.55%;">Market
 median </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:23.55%;">Near
 median </TD>
<TD style="padding-bottom:2.5pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:2.5pt;padding-left:6pt;padding-top:2.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:25.55%;">This
 is a competitive level of compensation relative to the market data. </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:22.45%;">
<DIV style="float:left;">Timothy G. Frommeyer, Senior Vice President&#8212;Chief Financial
Officer</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:23.55%;">Market
 median </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:23.55%;">Near
 median </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:25.55%;">This
 is a competitive level of compensation relative to the market data. </TD></TR>
<TR>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:22.45%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:23.55%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:23.55%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:left;vertical-align:top;width:25.55%;">&#160; </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:22.45%;">
<DIV style="float:left;">Stephen S. Rasmussen, NMIC Chief Executive
Officer</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:23.55%;">Market
 median </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:23.55%;">Near
 median </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-top:1.5pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:25.55%;">This
 is a competitive level of compensation relative to the market data. </TD></TR></TABLE> </DIV> </DIV> <DIV style="clear:both;width:100%;">
<DIV style="clear:both;color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-55</DIV> </DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_56"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:0pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:22.45%;">Name
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:23.55%;">Targeted
 market positioning </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:23.55%;">Current
 positioning of<BR> incumbent executive </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.55%;">Rationale
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:22.45%;">
<DIV style="float:left;">John L. Carter, President and Chief Operating Officer, Nationwide Retirement
Plans</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:23.55%;">Up
 to the 75<SUP style="font-size:85%;vertical-align:text-top;">th</SUP> percentile </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:23.55%;">Near
 the 75<SUP style="font-size:85%;vertical-align:text-top;">th</SUP> percentile </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:25.55%;">This
 is a competitive level of compensation relative to the market data based on the size of our retirement plans business in the industry compared to our peers in the market surveys. Nationwide Retirement Plans is one of the largest retirement plans
providers. </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:22.45%;">
<DIV style="float:left;">Eric S. Henderson, Senior Vice President&#8212;Individual Products and
Solutions</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:23.55%;">Market
 Median </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:23.55%;">Between
 the 25<SUP style="font-size:85%;vertical-align:text-top;">th</SUP> percentile and median </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:25.55%;">Mr.
 Henderson assumed an expanded role near the end of 2011 and we continue to manage compensation levels to a more competitive market position over time. </TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources committee determined the total compensation levels
for the named executive officers, which are benchmarked to the competitive external market, as well as the individual elements that are distributed among base salary and short-term and long-term incentives. Annually, we review and may adjust targets
for company and individual performance in order to recognize competitive market compensation and performance in determining the final compensation we deliver to executive officers. We have different review procedures depending on the level and role
of the executive officer. For top-tier executive officers, including Messrs. Rasmussen and Walker, PM&amp;P prepared an analysis of competitive market data that the NMIC human resources committee used in making compensation decisions. This provided
an impartial frame of reference for these executive officers. For all other named executive officers, our internal compensation department analyzed the competitive market data and provided the information to senior management and the NMIC human
resources committee for review and use in decision making. The following is an overview of these review procedures:</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Kirt A. Walker</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">PM&amp;P prepared a market analysis for Mr. Walker, our
President and Chief Operating Officer, which included a summary of the 25th, median and 75th percentile market data and covered the following compensation elements: base salary, target short-term incentive opportunity and target total cash
compensation, and target long-term incentive opportunity and target total direct compensation. The analysis took into account the size and complexity of his job, as measured by assets managed, compared to the market data. Other factors PM&amp;P
evaluated when determining individual competitiveness included:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the degree to which the
market data consist of sources of executive talent for NMIC; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the comparability of Mr.
Walker's job responsibilities to benchmark job responsibilities; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Mr. Walker's experience,
tenure and performance; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">the
responsibilities of Mr. Walker's position, internal equity and strategic importance to NMIC. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">PM&amp;P also presented an aggregate
analysis of the competitiveness of all of Mr. Rasmussen's direct reports, of which Mr. Walker is one, with respect to the market median, and the NMIC human resources committee considered this analysis in addition to Mr. Rasmussen's recommendation in
approving Mr. Walker's base salary and 2014 target incentive levels.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Timothy G. Frommeyer, John L. Carter and Eric S.
Henderson</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources committee considered
a number of inputs with regard to Messrs. Frommeyer, Carter and Henderson, including:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">their current compensation
levels and relative market competitive pay levels; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the identification of Mr.
Carter as occupying a benchmark plus role as well as summaries of his accomplishments and Messrs. Frommeyer's and Henderson's accomplishments in 2013; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">recommendations from Mr.
Walker, for Messrs. Carter and Henderson, and from NMIC's Chief Financial Officer for Mr. Frommeyer, in considering 2014 base salary adjustments and incentive target levels; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">approval
of Mr. Carter's sales incentive plan for 2014. </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-56</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_57"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Stephen S. Rasmussen</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">For Mr. Rasmussen, the NMIC Chief Executive
Officer, PM&amp;P summarized the 25th, median and 75th percentile market data for the position and explained any adjustments necessary to attain appropriately competitive compensation for each key element. For 2014, the NMIC human resources
committee's final decision on pay targets was subject to the NMIC board of directors' assessment of Mr. Rasmussen's 2013 performance. PM&amp;P provided recommendations for Mr. Rasmussen's 2014 compensation program and met with the NMIC human
resources committee, which determined a recommendation for Mr. Rasmussen's compensation targets. The NMIC human resources committee's recommendation was reviewed and approved by the full NMIC board of directors.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Pay Mix</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">We compensate executive officers through a
mix of base salary, short-term incentives, long-term incentives, benefit plans, perquisites and deferred compensation plans. The plans and the target opportunities for base salary and short-term and long-term incentives are reviewed annually by the
NMIC human resources committee to ensure total compensation and the mix of pay elements are competitive and changes reflect both the competitive market data and company needs. This ensures we continue to retain talent in key areas and provides a
framework for recruiting new talent.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We determine an
appropriate mix of pay elements by using the market data trends as a guideline. However, in practice, we may adjust individual components above or below the mix represented in the market data while maintaining the recommended target total
compensation range. Some of the reasons we may deviate from the mix of elements represented in market data include:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">recruiting needs based on
compensation received by a candidate in previous positions; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">year-to-year variation in
the market data, indicating the market data may be volatile; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">differences between the
specific responsibilities of our executives' positions and the positions represented in the market data; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">a desire
to change the alignment of our incentives between short-term and long-term goals for particular positions. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">For 2014, the above analysis resulted in the
following allocated target compensation levels for the named executive officers:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:29.49%;">Name
<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:11.24%;">Base
 salary<BR> (percentage of<BR> target total<BR> compensation)<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.28%;">Target
 short-term<BR> incentive as a<BR> percent of base<BR> salary (percentage<BR> of target total<BR> compensation) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.37%;">Target
 long- term<BR> incentive<BR> (percentage of<BR> target total<BR> compensation) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:10.75%;">Target
 total<BR> compensation<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.96%;">Percentage
 of<BR> target total<BR> compensation<BR> attributed to<BR> target incentives </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.49%;">
<DIV style="float:left;">Kirt A.
Walker</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:11.24%;">$451,639
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.28%;">80%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:12.37%;">$500,175
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:10.75%;">$1,245,917
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.96%;">68%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:29.49%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.24%;">(32%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.28%;">(25%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:12.37%;">(43%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.75%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.96%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.49%;">
<DIV style="float:left;">Timothy G.
Frommeyer</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:11.24%;">$227,432
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.28%;">65%
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:12.37%;">$
<FONT style="padding-left:5.00pt;"></FONT>62,199 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:10.75%;">$
<FONT style="padding-left:7.50pt;"></FONT>327,401 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.96%;">63%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:29.49%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.24%;">(37%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.28%;">(24%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:12.37%;">(39%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.75%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.96%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.49%;">
<DIV style="float:left;">Stephen S.
Rasmussen</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:11.24%;">$171,050
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.28%;">165%
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:12.37%;">$995,000
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:10.75%;">$1,454,998
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.96%;">88%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:29.49%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.24%;">(12%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.28%;">(20%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:12.37%;">(68%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.75%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.96%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.49%;">
<DIV style="float:left;">John L.
Carter</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:11.24%;">$163,484
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.28%;">105%
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:12.37%;">$300,105
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:10.75%;">$
<FONT style="padding-left:7.50pt;"></FONT>785,702 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.96%;">67%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:29.49%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:11.24%;">(33%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:13.28%;">(35%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:12.37%;">(32%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.75%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.96%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.49%;">
<DIV style="float:left;">Eric S.
Henderson</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:11.24%;">$319,388
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.28%;">70%
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:12.37%;">$227,480
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:10.75%;">$
<FONT style="padding-left:7.50pt;"></FONT>721,929 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.96%;">62%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:29.49%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:11.24%;">(38%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8.01pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:13.28%;">(27%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:30.52pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:12.37%;">(35%)
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.75%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.96%;">&#160; </TD></TR>
<TR>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:29.49%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.24%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.28%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:12.37%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.75%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.96%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:29.49%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:11.24%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.28%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:12.37%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.75%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.96%;">&#160; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Dollar amounts shown
represent the amounts allocated to us under the cost-sharing agreement. Percentages are calculated based on the total compensation elements, including unallocated amounts that are not shown in the table. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Target
total compensation equals base salary plus target short-term incentives plus target long-term incentives </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The elements summarized in the table above illustrate the
following points relative to our executive compensation philosophy:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Consistent with market
practices, a relatively small percentage of the target total compensation is provided as base salary, as the NMIC human resources committee believes compensation should be delivered to our named executive officers based on performance.
</TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">A substantial percentage of
the target total compensation is comprised of variable incentives, delivered through a mix of short-term incentive programs, which are more focused on short-term financial results, and long-term </TD></TR></TABLE> </DIV> </DIV>
<DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-57</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_58"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.25%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.75%; ">incentive programs, which
are focused on achievements over multiple years and most closely align with building sustained value for our stakeholders. The NMIC Chief Executive Officer's pay mix is more heavily weighted toward long-term incentives, consistent with his role.
</TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The table below identifies the
percentage change in base salary, total target cash (which includes base salary and target short-term incentives), long-term incentive targets and target total direct compensation for the named executive officers in 2014 as compared to 2013. The
table also sets forth the reasons for the changes. Actual base salary and incentive payments paid by us will also be influenced by changes in the allocation percentages, as discussed below in "2014 Compensation Programs Design and
Implementation."</DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:16.50%;">Name
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:5.39%;">Base
<BR> salary<BR> change<BR> %<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:13.28%;">Total
<BR> target annual cash<BR> change % </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.53%;">Long-term
<BR> incentive<BR> target<BR> change % </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:6.33%;">Target
 total<BR> direct<BR> compensation<BR> change % </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:42.08%;">Rationale
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:16.50%;">Kirt
 A. Walker </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:5.39%;">5.0%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:13.28%;">5.0%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:7.53%;">7.1%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:6.33%;">5.9%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:42.08%;">Mr.
 Walker's performance was outstanding compared to his 2013 pre-established objectives. Adjustments to base salary and long-term incentive targets positioned his target total direct compensation near the median of the market data for his position.
</TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:16.50%;">Timothy
 G. Frommeyer </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:5.39%;">4.3%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:13.28%;">4.3%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:7.53%;">0.0%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:6.33%;">2.6%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:42.08%;">Mr.
 Frommeyer's performance was outstanding compared to his 2013 pre-established objectives with respect to his leadership in organizing his team around the operating plan and managing significant product and underwriting challenges. His team's
engagement increased significantly via his focus on talent management and development, and his contributions to keeping NFS on track from all financial and risk management aspects and directing an innovative effort to create a structure that
resulted in significant capital relief for NFS contributed to the NFS business success. Mr. Frommeyer is viewed as critical talent and a successor candidate. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:16.50%;">Stephen
 S. Rasmussen </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:5.39%;">0.0%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:13.28%;">0.0%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:7.53%;">2.5%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:6.33%;">1.7%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:42.08%;">Mr.
 Rasmussen's pay increase was a market adjustment to intended positioning. The increase was delivered entirely in a long-term incentive target increase, enhancing the pay for performance relationship. </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:16.50%;">John
 L. Carter </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:5.39%;">2.2%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:13.28%;">4.8%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:7.53%;">5.9%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:6.33%;">5.1%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:42.08%;">Mr.
 Carter's performance was outstanding compared to his 2013 pre-established objectives with respect to exceeding his sales goal, improving associate engagement, improving lapse rates and accomplishing several important conversions. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:16.50%;">Eric
 S. Henderson </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:5.39%;">8.7%
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:13.28%;">8.7%
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:7.53%;">10.1%
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:6.33%;">9.2%
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:42.08%;">Mr.
 Henderson's performance was outstanding compared to his 2013 pre-established objectives with respect to significantly exceeding plan in several product lines and improving associate engagement. </TD></TR></TABLE> </DIV>
<DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Percentages are calculated
based on the total compensation elements, including amounts that are not allocated to us. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">2014 Compensation Programs Design and
Implementation</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We discuss the following items in this
section:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">what we intend to accomplish
with our compensation programs; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">how we determine the amount
for each element of compensation; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">the
impact of performance on compensation. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The principal components of 2014
compensation for our named executive officers are base salary and short-term and long-term incentives. Each component of compensation serves a different purpose, as discussed in "Compensation Objectives and Philosophy."</DIV> </DIV>
<DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-58</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_59"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Base Salary</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Our overall pay philosophy is to establish
base salaries that are generally at the median of the companies represented in the market data. We typically base a departure from the median on factors such as incumbent experience and industry or functional expertise, scope of job responsibilities
as compared to similar positions in the market, special retention needs and executive performance. In determining adjustments to the named executive officers' salaries for 2014, the NMIC human resources committee evaluated the following:</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">salaries for comparable
positions in the marketplace, taking scope of responsibility into account; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">NMIC and NFS's recent
financial performance, both overall and with respect to key financial indicators; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the annual performance
evaluation of each executive officer compared to previously established objectives; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">internal pay equity; and
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">management recommendations.
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Mr. Rasmussen's base salary was
allocated to NFS using NFS's operating revenue as a percentage of NMIC's total operating revenue. We allocated 100% of the base salary for all other named executive officers to NFS since these named executive officers primarily support this business
unit. Salary was further allocated to us (as compared to other NMIC entities) as follows:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Allocation of base salaries
for Messrs. Frommeyer and Rasmussen reflect a blend of factors used to allocate ongoing NFS operating expenses, using forecasted revenue and headcount projections as applicable. The revenue and headcount ratios are applied against specific operating
expenses for allocation to legal entity, statutory and managed products and expense group. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Base salary for Mr. Walker
was allocated using policy in-force counts from various NFS business segments. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Base salary allocation for
for Mr. Carter was determined by operational support of retirement plans business unit segments based on time spent managing and directing activities for each segment. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Base salary for Mr.
Henderson was allocated using policy in-force counts from the Nationwide Financial Individual Products and Solutions business segment. </TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Base salary rates for the named executive officers increased
by a weighted average of 3.0% in 2014. The NMIC human resources committee established unallocated base salary rates consistent with the philosophy, objectives and factors described above. The overall salary increase percentage reflects the impact of
competitive market data and individual and company performance and enables us to maintain competitive salaries. Actual base salaries paid by us, which are reported in "Summary Compensation Table for 2014," also reflect changes in the allocation
percentages from 2013 to 2014, for our named executive officers.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Short-term Incentive: Performance Incentive Plan and Sales
Incentive Plan</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">In 2014, we used
short-term incentive plans to provide a portion of at-risk pay to our named executive officers, which promoted our pay-for-performance philosophy. These plans provide participants with direct financial rewards in the form of short-term incentives
the participants earn subject to the achievement of key financial and strategic objectives. Plan metrics vary based on each executive officer's role and are discussed in more detail below. The short-term incentive design fulfills the following
objectives:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">emphasizes a one-company
culture while recognizing the need to maintain some business unit focus; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">focuses on the Nationwide
customer experience; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">aligns
incentive plans between associates and management. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">In 2014, the NMIC human resources committee
set specific company performance measures; goals for threshold, plan and outstanding results; and weightings for each performance measure under each short-term incentive plan in which the named executive officers participate. The NMIC human
resources committee approved a target short-term incentive award opportunity as a percentage of base salary for each participant and approved all payments made under these plans. We base our target incentive award opportunities on our executive
officers' responsibilities, their value to us and the competitive market data for similar positions. The use of these market data is discussed in "Compensation Objectives and Philosophy."</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We allocated short-term incentives for Messrs. Frommeyer and
Rasmussen to NFS based on NFS's operating revenue as a percentage of NMIC's total operating revenue. We allocated 100% of the short-term incentives for the other named executive officers to NFS. Short-term incentives for our named executives were
further allocated to us (as compared to</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-59</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_60"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">other NMIC entities) to reflect a blend of
factors used to allocate ongoing NFS operating expenses, using forecasted revenue and headcount projections as applicable. The revenue and headcount ratios are applied against specific operating expenses for allocation to legal entity, statutory and
managed products, and expense group.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Performance
Incentive Plan (PIP)</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We make annual payments to certain
executive officers under the Performance Incentive Plan, or "PIP." In 2014, all of our named executive officers participated in the PIP. Mr. Carter also participated in the Sales Incentive Plan, or "SIP," for reasons discussed below. Under the PIP,
the participant is assigned a target incentive amount representing a percentage of the participant's year-end base salary. The actual amount participants receive under the PIP will be a percentage of the target incentive depending on the achievement
of specific business and individual performance objectives.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Our performance measures under the PIP are based on a broad
series of key financial, business and strategic goals, as well as individual performance objectives. The specific measures vary by executive officer depending on individual positions and roles. We determine the short-term incentive performance
metrics and weights after an analysis of NFS's financial and strategic goals and those of Nationwide, such as growth, profitability, capital efficiency and strategic objectives. When determining performance levels for the PIP payout scale, the NMIC
human resources committee considered the probability of attaining performance levels, historical performance and payouts, industry and competitor outlooks, run rate trends and plan, and business mix and performance volatility. The maximum award is
200% of the target amount before individual adjustments.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources committee
authorizes the NMIC Chief Executive Officer to use his discretion to adjust calculated incentive payments, other than his own, by up to plus or minus 25%, if the calculated performance score does not reflect actual accomplishments. Factors the NMIC
Chief Executive Officer may consider include, but are not limited to:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">changes in industry and
competitive conditions that occur after target setting; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">execution and achievement of
key performance indicators that have a longer-term financial impact; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">performance on key
performance indicators, such as customer experience, associate engagement and agency ratings, that may not be reflected in the financial results; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">achievement
 of financial results consistent with Nationwide's values. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Proposed adjustments greater than plus or
minus 25% require the NMIC human resources committee's approval. For 2014, the NMIC Chief Executive Officer did not exercise any discretion to adjust performance scores that ultimately determined the incentive pool.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources committee may also adjust the actual
performance results for one-time or unusual financial items that have impacted actual performance but which management believes should not be included to penalize or receive credit for incentive purposes. Examples may include, but are not limited
to:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Gains and losses from the
acquisition or divestiture of businesses and/or operations and related deferred costs; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Non-recurring, unanticipated
tax adjustments; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">Errors
and/or omissions during target calculations. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We define the financial goals used in the tables below as
follows:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">We define Consolidated Net
Operating Income, or "CNOI," as a non-GAAP financial measure which highlights NMIC's results from continuing operations. CNOI excludes the impact of realized gains and losses on sales of investments and hedging instruments, certain hedged items,
other than temporary impairments, discontinued operations and extraordinary items, net of tax. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">We define Scottsdale net
operating income as a non-GAAP financial measure which highlights Scottsdale's results from continuing operations. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">We define the Enterprise
expense metric as a blend of the Property and Casualty adjusted statutory expense ratio, comprised of the loss adjustment expense ratio plus the underwriting expense ratio net of incentives and contingent suits, with the NFS adjusted general
operating expenses, comprised of general operating expenses net of incentives and contingent suits. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">We
determine direct written premium, or "DWP," growth by measuring the increase or decrease in the current performance year-ending business unit direct written premium over the prior performance year-ending business unit direct written premium as a
percentage. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:20pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">We define the non-weather
loss ratio as net calendar year incurred losses from non-weather peril, excluding contingent suits, divided by earned insurance premiums in the current year. </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-60</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_61"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">We calculate NFS Return on
Capital by dividing NFS net operating income for the year, excluding interest income on excess capital and adding back debt expense, by the total NFS GAAP equity plus long-term debt at the beginning of the year, excluding excess capital.
</TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">We define NFS Sales as new
and renewal production premiums and deposits, previously referred to as "sales," that are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in
accordance with GAAP, including sales as it relates to non-insurance companies. Management believes that the presentation of new and renewal production premiums and deposits enhances the understanding of the Company's business and helps depict
longer-term trends that may not be apparent in the results of operations due to differences between the timing of sales and revenue recognition.<BR> </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:4pt;padding-left:6.47%;text-align:left;text-decoration:none;text-transform:none;">Life insurance premiums determined on a
GAAP basis are significantly different than statutory premiums and deposits. On a GAAP basis, premiums for traditional life insurance products are generally recognized as revenue when due. For certain annuities with life contingencies, any excess of
gross premium over the net premium is deferred and recognized with the amount of expected future benefits. In addition, many life insurance and annuity products involve an initial deposit or a series of deposits from customers. These deposits are
accounted for as such on a GAAP basis and therefore are not reflected in the GAAP income statement. On a statutory basis, life insurance premiums are recognized as revenue over the premium paying period of the related policies. Annuity
considerations are recognized as revenue when received. Health insurance premiums are earned ratably over the terms of the related insurance and reinsurance contracts or policies.<BR> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;padding-left:6.47%;text-align:left;text-decoration:none;text-transform:none; ">As calculated and
analyzed by management, statutory premiums and deposits on individual and group annuities and life insurance products calculated in accordance with accounting practices prescribed or permitted by regulatory authorities and deposits on
administration-only group retirement plans and the advisory services program are adjusted as described below to arrive at new and renewal production premiums and deposits.<BR> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:4pt;padding-left:6.47%;text-align:left;text-decoration:none;text-transform:none;">We report new and renewal production
premiums and deposits as net of internal replacements, which we believe provides a more meaningful disclosure of production in a given period. In addition, our definition of new and renewal production premiums and deposits excludes asset transfers
associated with large case BOLI and large case retirement plan acquisitions; FHLB funding agreements; and deposits into Nationwide employee and agent benefit plans. Although these products contribute to asset and earnings growth, their production
flows potentially can mask trends in the underlying business and thus do not provide meaningful comparisons and analyses.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For 2014, the NMIC human resources committee approved the
following objectives and weights under the PIP for Messrs. Walker, Frommeyer, Rasmussen and Henderson. The target amounts for the PIP vary by each executive officer. The final incentive payments were adjusted with approval of the NMIC human
resources committee as described in "Determination of the Final Short-term Incentive Payments."</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-61</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_62"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:center;text-decoration:none;text-transform:none;">2014 PIP Metrics and Performance for Messrs.
Walker, Frommeyer, Rasmussen and Henderson</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:28.88%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:31.77%;" colspan="5">Weights
 (%) </TD>
<TD style="border-bottom:0.75pt solid #000000;padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:15.26%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:19.21%;">&#160; </TD></TR>
<TR style="height:31.75pt;">
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:2.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:28.88%;">Metric
 ($ in millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:10.98%;">Messrs.
 Walker<BR> and Henderson </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:8.27%;">Mr.
<BR> Frommeyer </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:8.52%;">Mr.
<BR> Rasmussen </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.26%;">2014
 established<BR> business goals </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:2.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:19.21%;">2014
 incentive<BR> performance<BR> results<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:bottom;width:28.88%;">Enterprise
 Consolidated Net Operating Income<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:10.98%;">45.00
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">45.00
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">40.95
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.26%;">$
<FONT style="padding-left:5.00pt;"></FONT>1,388.0 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:19.21%;">$
<FONT style="padding-left:5.00pt;"></FONT>1,201.4 </TD></TR>
<TR bgcolor="#DEE9F6" style="height:12pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">Customer
 Enthusiasm Index<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:10.98%;">20.00
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">20.00
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">18.20
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:28.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">8.59
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:28.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">8.59
 </TD></TR>
<TR style="height:22pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">
<DIV style="float:left;">Enterprise Expense Metric (P&amp;C statutory expense
ratio)</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:10.98%;">3.50
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">3.50
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">3.19
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">41.67%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">40.88%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">
<DIV style="float:left;">Enterprise Expense Metric (NFS adjusted general operating
expenses)</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:10.98%;">1.50
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">1.50
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">1.37
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.26%;">$
<FONT style="padding-left:12.51pt;"></FONT>952.5 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:19.21%;">$
<FONT style="padding-left:12.51pt;"></FONT>964.8 </TD></TR>
<TR style="height:12pt;">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">NI
 DWP Growth </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">3.75
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">3.41
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">2.54%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">3.07%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:bottom;width:28.88%;">Change
 in number of NI relationships per household </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">2.50
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">2.28
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:33.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">0.0
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:13.50pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">141,713
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">NI
 Non-weather Loss ratio </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">1.25
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">1.14
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">50.57%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">51.20%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">Allied
 DWP Growth </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">1.52
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">1.39
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">5.60%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">5.12%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">
<DIV style="float:left;">Allied Non-weather Loss
Ratio</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">1.52
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">1.39
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">47.72%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">50.85%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">
<DIV style="float:left;">Titan Non-weather Loss
Ratio</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">0.28
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">0.25
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">59.85%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">61.25%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">Titan
 DWP Growth </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">0.28
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">0.25
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">0.30%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:25.52pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">-3.14%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">
<DIV style="float:left;">Agribusiness Non-weather Loss
Ratio</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">0.42
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">0.38
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">46.44%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">52.33%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">Agribusiness
 DWP Growth </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">0.42
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">0.38
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">9.11%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">11.42%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">
<DIV style="float:left;">Harleysville Non-weather Loss
Ratio</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">0.42
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">0.38
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">47.60%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">52.96%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">Harleysville
 DWP Growth </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">0.42
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">0.38
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">6.72%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">10.38%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">
<DIV style="float:left;">Scottsdale Net Operating
Income</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">1.49
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">1.36
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.26%;">$
<FONT style="padding-left:12.51pt;"></FONT>186.5 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:19.21%;">$
<FONT style="padding-left:17.51pt;"></FONT>92.5 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">
<DIV style="float:left;">Scottsdale DWP
Growth</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">0.74
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">0.68
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">14.66%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">9.55%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">NFS
 Return on Capital </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:10.98%;">15.00
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">7.50
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">6.83
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.26%;">10.26%
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:23.51pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:19.21%;">12.53%
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:28.88%;">NFS
 Sales </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:10.98%;">15.00
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.27%;">7.50
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.52%;">6.83
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.26%;">$20,995.4
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:19.21%;">$20,778.6
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:28.88%;">
<DIV style="float:left;">Strategic Nonfinancial
Objectives</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:10.98%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:8.27%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:11.00pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:8.52%;">9.00
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.26%;">Discussed
 below<BR> in "Determination<BR> of the Final<BR> Short-term Incentive<BR> Payments" </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:19.21%;">175%
 of target amount </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">For 2014, performance on CNOI
of $350.0 must be achieved in order for payment to be earned on the enterprise expense, customer enthusiasm and business unit metrics. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Mean
customer satisfaction on a scale of one to ten as determined by an external consultant. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">These amounts are unaudited.
</TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Sales Incentive
Plan (SIP)</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Mr. Carter also participated in the SIP in
2014. The majority of his total incentive target consists of the same metrics under which we measure other members of NFS's management team under the PIP. These metrics represented 80% of Mr. Carter's total target incentive. In addition to these
metrics, 20% of his total incentive target focuses on sales results for the Retirement Plans business segment. Mr. Carter participated in the SIP in addition to the PIP because the SIP includes an emphasis on results that he directly influences.
These metrics are consistent with prevalent practices for similar roles in the financial services industry, and also maintains alignment with NFS's overall financial goals. For 2014, the maximum award opportunity under the plan was 200% of the
target amount. The NMIC Chief Executive Officer had the discretion to adjust scores for individual sales metrics by plus or minus 25%, subject to approval by the NMIC human resources committee of the final SIP payment. This discretion was not
exercised in 2014. When determining the performance levels for the payout under the SIP, the planning process included consideration of the current plan year to new plan year rates of sales growth. We used a different incentive scale for private and
public retirement plan sales to reflect key differences between them, such as:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the competitive environment
of each market segment; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the outlook for sales growth
in each market segment; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">the level
of maturity of each market segment; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:20pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">historical rates of sales
growth; and </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-62</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_63"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">our expectation as to the
difficulty of achieving the planned rates of sales growth in each market segment. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table sets forth the short-term incentive
performance metrics and weights for the PIP and SIP for Mr. Carter.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">2014 PIP and SIP Metrics and Performance for Mr. Carter</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:57.62%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:8.68%;" colspan="2">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:18.21%;" colspan="3">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;padding-bottom:2pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:6.16%;">&#160; </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:2.5pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:57.62%;">Performance
 Criteria<BR> ($ in millions) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:8.68%;">Weights
 (%) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:12.05%;">2014
 established<BR> goals </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:2.5pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:10.33%;" colspan="2">2014
 incentive<BR> performance<BR> results<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="padding-bottom:2pt;padding-top:2.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">Retirement
 Plans Group (SIP):<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:8.68%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:12.05%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:10.33%;" colspan="2">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">
<DIV style="float:left;">Private Sector 1<SUP style="font-size:85%;vertical-align:text-top;">st</SUP>
year</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.68%;">6.00
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:12.05%;">$
<FONT style="padding-left:5.00pt;"></FONT>1,667.0 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:10.33%;" colspan="2">$
<FONT style="padding-left:5.00pt;"></FONT>1,339.5 </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">
<DIV style="float:left;">Private Sector
Recurring</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.68%;">4.00
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:12.05%;">$
<FONT style="padding-left:5.00pt;"></FONT>3,858.0 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:10.33%;" colspan="2">$
<FONT style="padding-left:5.00pt;"></FONT>3,896.8 </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">
<DIV style="float:left;">Public Sector 1<SUP style="font-size:85%;vertical-align:text-top;">st</SUP>
year</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.68%;">5.00
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:12.05%;">$
<FONT style="padding-left:5.00pt;"></FONT>1,136.6 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:10.33%;" colspan="2">$
<FONT style="padding-left:5.00pt;"></FONT>1,255.4 </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">
<DIV style="float:left;">Public Sector
Recurring</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.68%;">5.00
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:12.05%;">$
<FONT style="padding-left:5.00pt;"></FONT>3,230.9 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:10.33%;" colspan="2">$
<FONT style="padding-left:5.00pt;"></FONT>3,109.4 </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:57.62%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:8.68%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:12.05%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.33%;" colspan="2">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">NFS
 and Enterprise Metrics (PIP)<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:8.68%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:12.05%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:10.33%;" colspan="2">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">
<DIV style="float:left;">Enterprise Consolidated Net Operating
Income<SUP style="font-size:85%;vertical-align:text-top;">1</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.68%;">36.00
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:12.05%;">$
<FONT style="padding-left:5.00pt;"></FONT>1,388.0 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:10.33%;" colspan="2">$
<FONT style="padding-left:5.00pt;"></FONT>1,201.4 </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">
<DIV style="float:left;">Customer Enthusiasm Index (Mean Satisfaction with
Company)<SUP style="font-size:85%;vertical-align:text-top;">2</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.68%;">16.00
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:12.05%;">8.59
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:28.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:10.33%;" colspan="2">8.59
 </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">
<DIV style="float:left;">Enterprise Expense Metric (P&amp;C statutory expense
ratio)</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.68%;">2.80
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:12.05%;">41.67%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:10.33%;" colspan="2">40.88%
 </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">
<DIV style="float:left;">Enterprise Expense Metric (NFS adjusted general operating
expenses)</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.68%;">1.20
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:12.05%;">$
<FONT style="padding-left:12.51pt;"></FONT>952.5 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:10.33%;" colspan="2">$
<FONT style="padding-left:12.51pt;"></FONT>964.8 </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">
<DIV style="float:left;">NFS Return on
Capital</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.68%;">12.00
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:12.05%;">10.26%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:23.51pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:10.33%;" colspan="2">12.53%
 </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:57.62%;">
<DIV style="float:left;">NFS
Sales</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
</TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:8.68%;">12.00
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:0%;" colspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:12.05%;">$20,995.4
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:10.33%;" colspan="2">$20,778.6
 </TD>
<TD style="padding-bottom:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">For 2014, performance on CNOI
of $350.0 must be achieved in order for payment to be earned on the enterprise expense, customer enthusiasm, NFS return on capital, and NFS sales metrics. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Mean customer satisfaction on
a scale of one to ten as determined by an external consultant. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">These
amounts are unaudited. </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Determination
of the Final Short-term Incentive Payments</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">To determine the 2014 short-term incentive
compensation payments for our named executive officers, the NMIC human resources committee assessed each executive officer's performance under the PIP or SIP, as applicable, considering the metrics in the tables above, in addition to the executive
officer's overall performance, our overall financial performance and management's assessment of performance on individual objectives. Additionally, in assessing final performance for the PIP, the NMIC human resources committee reviewed actual
performance relative to established goals and considered the following items: earnings quality, the level of catastrophic losses, industry results, achievement of strategic performance metrics, and business conditions and capital stewardship.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Consistent with prior years' treatment, the NMIC human
resources committee exercised its discretion to exclude the impact of asbestos and environmental reserve strengthening for the determination of CNOI for incentive purposes.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The actual amounts Messrs. Walker and Rasmussen receive under
the PIP, and the amount Mr. Carter receives for the sales metrics under the SIP, will be a percentage of the target incentive depending solely on the achievement of the approved metrics and management's assessment of individual performance measures.
For Messrs. Frommeyer, Carter and Henderson, incentive payments are made from a pool calculated by adding the total of all participants' incentive target amounts within an organizational unit. For Mr. Carter, 80% of his target amount, the prorated
amount attributed to his NFS and enterprise metrics, contributed to this pool. The pool is multiplied by the overall weighted performance score for the year and further adjusted, if applicable, at the discretion of the NMIC Chief Executive Officer
and/or the NMIC human resources committee. This establishes the maximum amount we will pay to the participants in each pool, whether shared among participants or paid to a single individual. Senior management then reviews each of the participants
within this pool to evaluate personal performance and individual contributions relative to the other participants in the pool. To the extent management discretion is used to reduce or eliminate the award of a participant in the pool, the amount of
incentive not awarded to that participant is included in the total amount available in the pool to be distributed to the other participants. For 2014, the NMIC Chief Executive Officer did not exercise his discretion to adjust payments under the
PIP.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For Mr. Rasmussen, 9% of his weighted objectives
consisted of non-financial objectives, which were reviewed and discussed by the NMIC human resources committee and approved by the NMIC board. These non-financial objectives focused on the following three categories:</DIV> </DIV>
<DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-63</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_64"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Delivering results through
highly engaged associates, with regard to creating an engaging work experience by improving leadership effectiveness, ensuring a diverse pipeline for senior leadership talent, and ensuring qualified successors are identified for key management
roles; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Enabling execution of
Nationwide's strategy with accountability, with regard to execution of strategic business line initiatives, leveraging innovation as a competitive advantage, and making progress on executing critical business transformation programs; and
</TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">The accountability and
transparency of Nationwide's governance, with regard to continuing board engagement with senior line and functional leaders, adhering to and reinforcing Nationwide's code of conduct, maintaining effective relationships with sponsor and community
organizations, and maintaining quality communications with associates and key stakeholders. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Each independent director on the NMIC board of directors
completed a formal evaluation and gave Mr. Rasmussen a rating on a five-point scale for each objective and an overall rating using the same scale. PM&amp;P summarized the results and met with the chair of the NMIC human resources committee to review
the evaluation. PM&amp;P then met with the full NMIC human resources committee to discuss the ratings and assist the committee to arrive at an overall score to be recommended to and approved by the NMIC board of directors.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The resulting cash payouts for our named
executive officers, which are shown in column (g) of the "Summary Compensation Table for 2014," are as follows:</DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.73%;">Name
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:19.44%;">Comparison
 of short-term<BR> incentive payment to target </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;width:51.94%;">Summary
 of rationale </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Kirt
 A. Walker<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:19.44%;">106%
 of target </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:51.94%;">Performance
 compared to the PIP objectives </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Timothy
 G. Frommeyer<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:19.44%;">100%
 of target </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:51.94%;">Performance
 compared to the PIP objectives </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Stephen
 S. Rasmussen<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:19.44%;">107%
 of target </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:51.94%;">Performance
 compared to the PIP objectives </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">John
 L. Carter<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:19.44%;">106%
 of target </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:51.94%;">Performance
 compared to the PIP objectives </TD></TR>
<TR>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:bottom;width:25.73%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:19.44%;">82%
 of target </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:51.94%;">Performance
 compared to the SIP objectives </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Eric
 S. Henderson<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:19.44%;">106%
 of target </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;width:51.94%;">Performance
 compared to the PIP objectives </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Long-Term Incentives</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">In 2014, the NMIC human resources committee
administered the Nationwide Long-Term Performance Plan, or "LTPP," to award long-term incentives to the named executive officers. Long-term incentive compensation constitutes a significant portion of an executive officer's total compensation
package, consistent with our philosophy of emphasizing pay that is conditional or contingent on our performance. The LTPP is intended to accomplish the following objectives:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">reward sustained long-term
value creation with appropriate consideration of risk capacity, tolerance and limits; </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:18pt;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">deliver market-competitive
target compensation consistent with organizational performance; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">retain
and motivate executives to ensure business stability and success. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">We established long-term incentive targets
in 2014 based on a review of relevant market data and/or comparisons to other business segment leaders, as we described in "Benchmarking and Compensation Target-Setting Process." The goals used in the LTPP are as follows:</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Operating revenue growth,
which is determined by comparing current performance year-ending operating revenue, net of interest credited, to prior performance year-ending operating revenue, net of interest credited. Operating revenue is a non-GAAP financial measure. Operating
revenue excludes realized gains and losses on sales of investments and hedging instruments, discontinued operations and extraordinary items. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;"> Capital
strength, which is determined by combining our internal economic capital calculation (50%) and Standard &amp; Poor's capital calculation (50%). </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Performance on each metric is compared to a
matrix where the x-axis is capital strength and the y-axis is operating revenue growth. A 1.0 score is awarded when operating revenue growth, net of interest credited, equals plan and capital strength equals a AA+ rating. The score is determined at
the intersection of the operating revenue growth and capital strength performance on the matrix at the end of each year in the performance period based on the matrix approved for that year. The final score at the end of the three-year period will be
the average of the three annual scores. Potential payments range from zero to two and one-half times the target amount.For 2014, the Human Resources Committee approved the following objectives and weights under the LTPP. The target amounts for the
LTPP vary by executive officer.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-64</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_65"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">2014 LTPP Metrics and Performance</DIV>
<DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR style="height:12.38pt;">
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:25.73%;">Metric
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.15%;">Weight
 </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:37.29%;">2014
 established business goals </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:26.95%;">2014
 incentive performance results </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Operating
 Revenue Growth<BR> (net of interest credited) </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.15%;">50%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:37.29%;">4.5%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:26.95%;">6.4%
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">Internal
 Economic Capital </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.15%;">25%
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:37.29%;">AA+
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:26.95%;">AAA
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:25.73%;">S&amp;P
 Capital </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:5.15%;">25%
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:37.29%;">AA+
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:1.5pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:bottom;white-space:nowrap;width:26.95%;">AA+
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">At its meeting on February 10,
2015, the NMIC human resources committee approved a final score of 1.55, which will be used for the first year of the 2014-2016 performance period, the second year of the 2013-2015 performance period, and the third year of the 2012-2014 performance
period. The final average score for the 2012-2014 performance period was 1.77, which was multiplied by the target amounts for all of our named executive officers.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The 2014 grants under the LTPP for all of our named executive
officers are reported in "Grants of Plan-Based Awards."</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We allocated long-term incentives for Messrs. Frommeyer and
Rasmussen to NFS based on NFS's operating revenue as a percentage of NMIC's total operating revenue. We allocated 100% of the long-term incentives for the other named executive officers to NFS. Long-term incentives for our named executives were
further allocated to us (as compared to other NMIC entities) to reflect a blend of factors used to allocate ongoing NFS operating expenses, using forecasted revenue and headcount projections as applicable. The revenue and headcount ratios are
applied against specific operating expenses for allocation to legal entity, statutory and managed products, and expense group.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Clawback Policy</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If we are required to prepare a material financial accounting
restatement or to materially adjust the results of a metric used for funding incentive compensation plans, we may recover from any current or former person we determine to be an elected officer any amount in excess of what should have been paid, up
to and including:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">The amount of any short-term
incentive award under the PIP, SIP or LTPP to the extent the restatement impacts the amount awarded; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">The total amount of awards
granted to the extent the restatement impacts the amounts that would have been granted, with such awards valued in good faith in the discretion of the NMIC board of directors, and; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">Any other
amount determined by the NMIC board of directors, in its sole discretion, to have been improperly awarded. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Recovery may, at the NMIC board of directors' discretion, be
in the form of an adjustment to future incentive awards, as applicable.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Personal Benefits and Perquisites</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">We provide to our executive officers certain
perquisites and other personal benefits, including health and welfare benefits, which are the same for all associates, and pension and savings plans, deferred compensation plans and personal perquisites, all of which we believe are consistent with
market competitive practices. For more information about these personal benefits and perquisites, see columns (h) and (i) of the "Summary Compensation Table for 2014."</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Termination Benefits and Payments</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">It is NMIC's practice to provide severance
agreements to the NMIC Chief Executive Officer and a limited number of senior executive officers, including most of the NMIC Chief Executive Officer's direct reports. Of our named executive officers, we have entered into severance agreements with
Messrs. Rasmussen, Walker and Carter. We believe these agreements are a standard industry practice for these positions and are necessary to attract and retain executive officers at this level. The agreements provide certain protections to the
executive officer with regard to compensation and benefits. In exchange for those protections, the executive officer agrees to keep our information confidential, and agrees not to solicit our employees or customers and not to compete with Nationwide
for a specified period of time following termination. We provide additional information with respect to post-termination benefits provided under these severance agreements in "Potential Payments Upon Termination or Change of Control."</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Certain termination-of-employment events may trigger
post-termination payments and benefits in the event that a severance agreement does not apply to the payments and benefits. Those events include retirement, severance, termination for cause, death, disability and voluntary termination. The details
of the benefits and payments made upon termination are also described in "Potential Payments Upon Termination or Change of Control."</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-65</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_66"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Impact of Regulatory Requirements on Compensation</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">There were no regulatory requirements that influenced our
compensation arrangements.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Conclusion</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">As discussed in "Compensation Objectives and
Philosophy," we design our compensation programs to be competitive, to attract and retain top talent and to drive our performance, with the ultimate goal of increasing stakeholder and customer value. To attain these objectives, we compare ourselves
to other companies that are similar to us in setting target pay opportunities and financial business goals. In 2014, the objectives for incentive purposes were established to reward value-creating performance and we awarded a substantial percentage
of total compensation opportunity to our named executive officers in the form of pay-at-risk, which increases or decreases according to the level of our performance. Our business results produced payments under our short-term and long-term incentive
plans for our named executive officers, rewarding our executive officers with reasonable pay relative to our 2014 performance, consistent with our pay-for-performance philosophy.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">Compensation Committee Interlocks and Insider
Participation</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Our board of directors does not have a
compensation committee. All named executive officers' compensation decisions were approved by the NMIC Board of Directors or human resources committee. None of our executive officers served on the board of directors or compensation committee of
another entity for which any member of the NMIC board of directors or compensation committee served as an executive officer.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:center;text-decoration:none;text-transform:none;">Summary Compensation Table for 2014</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The information set forth in the "Summary Compensation Table
for 2014" and other related compensation tables reflect the allocation of compensation-related costs to us with respect to our named executive officers.</DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:29.96%;">Name
 and principal position<BR> (a) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:3.92%;">Year
<BR> (b) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:7.15%;">Salary
<BR> (c) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:4.82%;">Bonus
<BR> (d) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:10.24%;">Non-equity
<BR> incentive plan<BR> compensation<BR> (g) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:10.24%;">Change
 in<BR> pension value<BR> and non-<BR> qualified<BR> deferred<BR> compensation<BR> earnings<SUP style="font-size:85%;vertical-align:text-top;">2</SUP><BR> (h) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:10.24%;">All
 other<BR> compensation<BR> (i) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:10.54%;">Total
<BR> (j) </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:top;width:29.96%;" rowspan="3">Kirt
 A. Walker, President<BR> &amp; Chief Operating Officer </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="3">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2014
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:7.15%;">$446,676
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$1,019,997
<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$515,422
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$30,736
<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.54%;">$2,012,831
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2013
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:7.15%;">$416,580
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">$1,027,108
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">$100,306
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">$25,968
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:10.54%;">$1,747,283
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2012
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:7.15%;">$410,656
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$1,063,275
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:5.00pt;"></FONT>80,995 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$21,412
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$1,576,338
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:top;width:29.96%;" rowspan="3">Timothy
 G. Frommeyer,<BR> Senior Vice President&#8211;<BR> Chief Financial Officer </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="3">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2014
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:7.15%;">$225,275
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:7.50pt;"></FONT>147,863<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$562,763
<DIV style="margin-top:6pt;"></DIV> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$14,924
<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$
<FONT style="padding-left:7.50pt;"></FONT>950,825 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2013
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:7.15%;">$225,617
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:7.50pt;"></FONT>154,175 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">$13,678
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$
<FONT style="padding-left:7.50pt;"></FONT>393,470 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2012
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:7.15%;">$243,476
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$904
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:7.50pt;"></FONT>150,818 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$117,016
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$11,817
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$
<FONT style="padding-left:7.50pt;"></FONT>524,031 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:top;width:29.96%;" rowspan="3">Stephen
 S. Rasmussen,<BR> NMIC Chief Executive<BR> Officer </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="3">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2014
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:7.15%;">$171,050
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$1,914,818
<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$565,786
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$28,316
<SUP style="font-size:85%;vertical-align:text-top;">5</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$2,679,970
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2013
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:7.15%;">$180,510
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">$1,932,088
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">$277,627
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">$27,686
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:10.54%;">$2,417,911
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2012
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:7.15%;">$186,308
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$1,888,241
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$135,458
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$27,445
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$2,237,452
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:top;width:29.96%;" rowspan="3">John
 L. Carter, President, Nationwide Retirement Plans </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="3">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2014
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:7.15%;">$162,664
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:7.50pt;"></FONT>764,501<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$236,280
<DIV style="margin-top:6pt;"></DIV> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$13,373
<SUP style="font-size:85%;vertical-align:text-top;">6</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$1,176,818
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2013
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:7.15%;">$138,302
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:7.50pt;"></FONT>612,275 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">$20,520
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$
<FONT style="padding-left:7.50pt;"></FONT>771,097 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2012
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:7.15%;">$204,421
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:7.50pt;"></FONT>846,731 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:5.00pt;"></FONT>81,656 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$15,029
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$1,147,837
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:9pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-indent:-9pt;text-transform:none;vertical-align:top;width:29.96%;" rowspan="3">Eric
 S. Henderson, Senior Vice President&#8211;Individual Products and Solutions </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="3">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2014
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:7.15%;">$313,491
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:7.50pt;"></FONT>551,139<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$822,191
<DIV style="margin-top:6pt;"></DIV> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:8pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$62,814
<SUP style="font-size:85%;vertical-align:text-top;">7</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$1,749,635
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2013
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:7.15%;">$290,512
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:7.50pt;"></FONT>548,148 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">$15,828
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$
<FONT style="padding-left:7.50pt;"></FONT>854,488 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:3.92%;">2012
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:7.15%;">$308,953
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:4.82%;">$
<FONT style="padding-left:10.01pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$
<FONT style="padding-left:7.50pt;"></FONT>549,058 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$267,105
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.24%;">$16,176
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:10.54%;">$1,141,292
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Represents the amount
determined under the PIP for Messrs. Walker, Frommeyer, Rasmussen and Henderson, and under the PIP and SIP for Mr. Carter, that was paid in 2015 for the 2014 performance year; and the amount earned in 2014 under the LTPP, and allocated to us
pursuant to the cost-sharing agreement, as follows: Mr. Walker&#8212;$311,749 (PIP) and $708,248 (LTPP); Mr. Frommeyer&#8212;$37,770 (PIP) and $110,093 (LTPP); Mr. Rasmussen&#8212;$ 308,649 (PIP) and $1,606,169 (LTPP); Mr. Carter&#8212;$325,978 (PIP
and SIP) and $438,523 (LTPP); and Mr. Henderson&#8212;$185,565 (PIP) and $365,574 (LTPP). </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Represents the change in
pension value for all named executive officers. There were no above-market earnings on deferred compensation. </TD></TR></TABLE> </DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Includes tax gross-ups
totaling $1,217 for amenities received at company events and the contribution we made on behalf of Mr. Walker in the amount of $23,128 under the Nationwide Supplemental Defined Contribution Plan. Aggregate value of perquisites and personal benefits
is less than $10,000. </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-66</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_67"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Includes a tax gross-up in
the amount of $1,607 for the company-paid cost of an executive physical. Aggregate value of perquisites and personal benefits is less than $10,000. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">5</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Includes the value of
amenities received at company events, and tax gross-ups totaling $279 for such amenities, the actual incremental cost of Mr. Rasmussen's personal use of the company plane, the cost of Mr. Rasmussen's personal use of the company's suite, the
contribution we made on behalf of Mr. Rasmussen in the amount of $16,798 under the Nationwide Supplemental Defined Contribution Plan and the company-paid portion for parking expenses and automotive service in the executive parking garage. </TD></TR>

<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">6</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Includes a
tax gross-up of $61 for amenities received at a company event and a tax gross-up in the amount of $917 for the company-paid cost of an executive physical. Aggregate value of perquisites and personal benefits is less than $10,000. </TD></TR></TABLE>
</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">7</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Includes the value of
amenities received at a corporate event in the amount of $25,669, tax gross-ups totaling $12,844 for such amenities, the company-paid cost of an executive physical and a tax gross-up in the amount of $1,193 for the physical, the contribution we made
on behalf of Mr. Henderson in the amount of $12,397 under the Nationwide Supplemental Defined Contribution Plan and the company-paid portion for parking expenses and automotive service in the executive parking garage. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">Grants of Plan-Based Awards in 2014</DIV>
<DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:44.52%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:9.88%;">&#160; </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:42.71%;" colspan="5">Estimated
 future payouts under non-equity incentive plan<BR> awards<SUP style="font-size:85%;vertical-align:text-top;">1</SUP> </TD></TR>
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:44.52%;">Name
<BR> (a) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:9.88%;">Grant
 date<BR> (b) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:11.91%;">Threshold
<BR> (c) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:11.70%;">Target
<BR> (d) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:4.38pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:15.09%;">Maximum
<BR> (e) </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:44.52%;" rowspan="2">Kirt
 A. Walker<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.88%;">2/11/2014
<SUP style="font-size:85%;vertical-align:text-top;">2,3</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.91%;">$147,051
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.70%;">$294,103
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.09%;">$
<FONT style="padding-left:7.50pt;"></FONT>735,257 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.88%;">2/11/2014
<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.91%;">$
<FONT style="padding-left:27.51pt;"></FONT>0 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.70%;">$500,175
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.09%;">$1,250,438
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:44.52%;" rowspan="2">Timothy
 G. Frommeyer<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.88%;">2/11/2014
<SUP style="font-size:85%;vertical-align:text-top;">2,3,5</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.91%;">$
<FONT style="padding-left:5.00pt;"></FONT>18,885 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.70%;">$
<FONT style="padding-left:5.00pt;"></FONT>37,770 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:38.52pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.09%;">n/a
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.88%;">2/11/2014
<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.91%;">$
<FONT style="padding-left:27.51pt;"></FONT>0 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.70%;">$
<FONT style="padding-left:5.00pt;"></FONT>62,199 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.09%;">$
<FONT style="padding-left:7.50pt;"></FONT>155,499 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:44.52%;" rowspan="2">Stephen
 S. Rasmussen<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.88%;">2/11/2014
<SUP style="font-size:85%;vertical-align:text-top;">2,3</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.91%;">$144,474
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.70%;">$288,948
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:15.09%;">$
<FONT style="padding-left:7.50pt;"></FONT>722,370 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.88%;">2/11/2014
<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.91%;">$
<FONT style="padding-left:27.51pt;"></FONT>0 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.70%;">$995,000
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.09%;">$2,487,500
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:44.52%;" rowspan="2">John
 L. Carter<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.88%;">2/11/2014
<SUP style="font-size:85%;vertical-align:text-top;">2,3</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.91%;">$161,056
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.70%;">$322,113
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:15.09%;">$
<FONT style="padding-left:7.50pt;"></FONT>644,225<DIV style="margin-top:6pt;"></DIV> </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.88%;">2/11/2014
<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.91%;">$
<FONT style="padding-left:27.51pt;"></FONT>0 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.70%;">$300,105
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.09%;">$
<FONT style="padding-left:7.50pt;"></FONT>750,263 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:44.52%;" rowspan="2">Eric
 S. Henderson<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.88%;">2/11/2014
<SUP style="font-size:85%;vertical-align:text-top;">2,3,5</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.91%;">$
<FONT style="padding-left:5.00pt;"></FONT>87,531 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.70%;">$175,061
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:38.52pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.09%;">n/a
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:9.88%;">2/11/2014
<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.91%;">$
<FONT style="padding-left:27.51pt;"></FONT>0 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.70%;">$227,480
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.09%;">$
<FONT style="padding-left:7.50pt;"></FONT>568,699 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Values are the amounts
allocated to us pursuant to the cost-sharing agreement. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">We
calculated thresholds for certain metrics other than CNOI separately after a $350.0 million performance level was achieved on CNOI. Actual payment may be less than the amount shown. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Represents a PIP, or for Mr.
Carter, a PIP and SIP, award. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Represents an LTPP award
using operating revenue growth and capital strength as metrics. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">5</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Maximum
award amount is 200% of the sum of the awards for participants in the same pool. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Short-term Incentive Compensation</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">On February 11, 2014, we granted short-term
incentive award opportunities to our named executive officers. The amounts of these earned 2014 short-term award opportunities are reflected in the "Summary Compensation Table for 2014" in column (g).</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources committee uses short-term incentive
plans and assesses individual overall performance, company financial performance and other goals, and distributes awards from the incentive pool pursuant to the PIP, or in the case of Mr. Carter, the SIP.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC Chief Executive Officer may adjust payments under the
PIP or SIP by up to plus or minus 25% subject to approval of the final payment by the NMIC human resources committee. Additionally, the NMIC human resources committee may adjust the actual performance results for one-time or unusual financial items
that have impacted actual performance but which management believes they should not include to penalize or receive credit for incentive purposes.</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In 2014, goals under the PIP were met at 100% to 107% of the
target amount. The goals under the SIP were met at 82% of the target amount. We discuss this in more detail in "2014 Compensation Programs Design and Implementation."</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Long-term Incentive Compensation</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">On February 11, 2014, we granted long-term
incentive target opportunities to all of our named executive officers.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-67</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_68"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The NMIC human resources committee granted
target opportunities based on operating revenue growth and capital strength, to be measured at the end of a three-year period. Performance on each metric is compared to a matrix where the x-axis is capital strength and the y-axis is operating
revenue growth. A final score is determined at the end of each year in the performance period based on the matrix approved for that year, and the final score at the end of the three-year period will be the average of the three annual scores. At
their meeting on February 10, 2015, the NMIC human resources committee approved a score for the last year of the 2012-2014 performance period of 1.55.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">Pension Benefits for 2014</DIV>
<DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:30.57%;">Name
<BR> (a) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:31.46%;">Plan
 name<BR> (b) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:10.24%;">Number
 of<BR> years credited<BR> service<BR> (c) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:11.06%;">Present
 value<BR> of accumulated<BR> benefit<SUP style="font-size:85%;vertical-align:text-top;">1</SUP><BR> (d) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:9.77%;">Payments
<BR> during last<BR> fiscal year<BR> (e) </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:30.57%;" rowspan="2">Stephen
 S. Rasmussen </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:31.46%;">Nationwide
 Retirement Plan </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">16.0
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.06%;">$
<FONT style="padding-left:12.51pt;"></FONT>55,629 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:9.77%;">$&#8211;
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:31.46%;">Nationwide
 Supplemental Retirement Plan </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">16.0
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.06%;">$1,087,580
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:9.77%;">$&#8211;
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:30.57%;" rowspan="2">Kirt
 A. Walker </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:31.46%;">Nationwide
 Retirement Plan </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">16.0
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.06%;">$
<FONT style="padding-left:7.50pt;"></FONT>153,840 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:9.77%;">$&#8211;
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:31.46%;">Nationwide
 Supplemental Retirement Plan </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">16.0
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.06%;">$
<FONT style="padding-left:7.50pt;"></FONT>683,237 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:9.77%;">$&#8211;
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:30.57%;" rowspan="2">Timothy
 G. Frommeyer </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:31.46%;">Nationwide
 Retirement Plan </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">27.3
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.06%;">$
<FONT style="padding-left:7.50pt;"></FONT>705,518 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:9.77%;">$&#8211;
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:31.46%;">Nationwide
 Supplemental Retirement Plan </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">27.3
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.06%;">$
<FONT style="padding-left:7.50pt;"></FONT>970,236 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:9.77%;">$&#8211;
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:30.57%;" rowspan="2">John
 L. Carter </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:31.46%;">Nationwide
 Retirement Plan </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:11.00pt;padding-right:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">8.2
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.06%;">$
<FONT style="padding-left:12.51pt;"></FONT>84,924 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:9.77%;">$&#8211;
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:31.46%;">Nationwide
 Supplemental Retirement Plan </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">8.2
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.06%;">$
<FONT style="padding-left:7.50pt;"></FONT>545,971 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:9.77%;">$&#8211;
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:30.57%;" rowspan="2">Eric
 S. Henderson </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;" rowspan="2">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:31.46%;">Nationwide
 Retirement Plan </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">27.8
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.06%;">$
<FONT style="padding-left:7.50pt;"></FONT>968,406 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:9.77%;">$&#8211;
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:31.46%;">Nationwide
 Supplemental Retirement Plan </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:10.24%;">27.8
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.06%;">$1,214,652
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:9.77%;">$&#8211;
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">These amounts are unaudited.
</TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The "Pension
Benefits for 2014" table reports the years of credited service and the present value of accrued benefits under the Nationwide Retirement Plan, or "NRP," and the Nationwide Supplemental Retirement Plan, or "SRP," as of December 31, 2014. We discuss
these plans in more detail below. The reported values are the present value of accrued benefits with benefit commencement occurring at normal retirement age, which is age sixty-five, payable as a life annuity. Optional payment forms are available
with reduced payments. A full single lump sum payment option is not available.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Credited Service</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The credited service reported in the
"Pension Benefits for 2014" table represents complete years of credited service under the NRP and SRP; however, the NRP and the SRP provide for crediting of service in different ways. The NRP provides one month of credited service for each month a
participant works, beginning with the participant's hire date. The SRP credits service based on the date an individual first becomes a participant. For details regarding how the SRP credits service, see the "Supplemental Defined Benefit Plan"
section below. We provide no additional credited service under the NRP and the SRP to the named executive officers.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Present Value of Accumulated Benefits</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The reported present values of accumulated
benefits, which are payable as a life annuity, are based upon the benefit earned from service and compensation as of December 31, 2014. The present values assume the participant survives to, and commences his or her benefit at, the earliest age at
which unreduced benefits are payable, which is age sixty-five.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We base the present value determinations on the measurement
date, discount rate, and postretirement mortality in accordance with FASB ASC 715, Compensation-Retirement Benefits. For the December 31, 2014, and 2013 valuations, the discount rates used under this guidance were 4.05% and 4.95%, respectively.
There is no mortality discount prior to age sixty-five in the values reported above. We also used the Pension Protection Act Mortality Table.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Pension plan compensation includes base salary and certain
management incentives. We allocate benefit values based on the compensation reported in the "Summary Compensation Table for 2014," and reflect the arrangement under the cost sharing agreement. For Messrs. Rasmussen, Frommeyer, Carter, Henderson, and
Walker, the pension benefit values reflect the cost allocated to us.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-68</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_69"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Qualified and Supplemental Pension Plans</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Retirement Plan</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide maintains a qualified defined benefit plan called
the Nationwide Retirement Plan, or the "NRP." In general, the named executive officers and other participants in the NRP will receive an annual retirement benefit under the NRP equal to the greater of the benefit calculated under the final average
pay formula, if applicable, or the account balance formula. We describe these formulae below. Any participant, including a named executive officer, who we hired on or after January 1, 2002, will receive an annual retirement benefit under the NRP
based solely on the account balance formula. Participants become fully vested in the NRP after the completion of three years of service. The accrued benefit is payable as a life annuity. Optional payment forms are available, however, with reduced
payments. A full, single lump sum payment option is not available.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NRP allows a participant the option of receiving his or
her benefit at any age, provided that he or she is vested when he or she leaves Nationwide. If a participant terminates his or her employment with Nationwide before age sixty-five, and decides to receive benefits before age sixty-five, the
participant will receive an actuarially reduced monthly benefit amount to reflect the longer payout period due to early distribution. Prior to January 1, 2010, benefits for vested participants who we hired before January 1, 2002, and who terminated
employment after age fifty-five, were eligible for a subsidized early retirement benefit. The subsidized early retirement benefit is reduced 1% per year from age sixty-five to age sixty-two and 5% per year from age sixty-two to age fifty-five.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Effective January 1, 2010, the NRP was amended to eliminate
the subsidized early retirement benefit for those employees who were hired before January 1, 2002. If the age requirements are met for these individuals, the NRP benefit upon termination of employment will be the greatest of the four following
calculations: (i) the Final Average Pay (FAP) formula without the subsidized early retirement factor; (ii) the account balance formula at the time of termination of employment; (iii) the FAP formula benefit as of December 31, 2009, with the
subsidized early retirement factor; or (iv) the account balance formula as of December 31, 2009.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Mr. Rasmussen is eligible for the subsidized
early retirement benefits. Although we hired Messrs. Frommeyer, Henderson, and Walker before January 1, 2002, they have not met the age requirement to be eligible for subsidized early retirement benefits. As a result, they are only eligible for
actuarially reduced benefits upon termination. We hired Mr. Carter after January 1, 2002, and he is eligible only for an actuarially reduced benefit upon termination.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NRP provides a pre-retirement death benefit payable to a
participant's spouse. The NRP also provides for the funding of retiree medical benefits under Section 401(h) of the Internal Revenue Code.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Final Average Pay Formula (FAP)</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We compute the FAP formula benefit as follows:</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">1.25% of the participant's
final average compensation, as defined below, multiplied by the number of years of service, up to a maximum of thirty-five years subject to the limitations set forth in the Internal Revenue Code; plus </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">0.50% of
the participant's final average compensation in excess of Social Security covered compensation, as defined below, multiplied by the number of years of service, up to a maximum of thirty-five years and subject to the limitations set forth in the
Internal Revenue Code. </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For services
rendered prior to January 1, 1996, final average compensation is equal to the average of the highest three consecutive covered compensation amounts of the participant in the participant's last ten years of service. For services rendered on January
1, 1996, or later, final average compensation is equal to the average of the highest five consecutive covered compensation amounts of the participant in the participant's last ten years of service. The NRP defines covered compensation to mean all
wages reported on a Form W-2 Wage and Tax Statement from any Nationwide company, plus compensation deferred under Sections 125, 132(f)(4) and 401(k) of the Internal Revenue Code and excluding:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">severance pay and other
amounts following the later of: (i) the pay period that includes the participant's date of termination, or (ii) the pay period in which the participant's date of termination is posted to Nationwide's payroll system; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">a lump-sum payment for
vacation days made upon termination of employment or pursuant to an election by the participant; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">imputed income, executive
officer perquisites and benefits paid under any long-term performance or equity plan; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">income
imputed to any participant as a result of the provisions of health or other benefits to members of the participant's household; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-69</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_70"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">any payment made to a
participant to offset the tax cost of other amounts Nationwide paid that are included in the participant's income for federal tax purposes; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">any payment of deferred
compensation made prior to the participant's severance date; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">expense reimbursement or
expense allowances including reimbursement for relocation expenses; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">retention payments made on
or after January 1, 2002; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">all gross-up payments,
including the related compensation payment, made on or after January 1, 2002; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">compensation
 earned following the date on which a participant's employment status changes from eligible to ineligible and during the period he or she is ineligible. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Covered compensation is subject to Internal Revenue Code
limits and, for purposes of determining final average compensation, is calculated on a calendar-year basis.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Social Security covered compensation means the average of the
Social Security wage bases in effect during the thirty-five-year period ending with the last day of the year that the participant attains Social Security retirement age. The portion of a participant's benefit attributable to years of service with
certain Nationwide companies credited prior to 1996 is also subject to post-retirement increases following the commencement of benefits or the participant's attainment of age sixty-five, whichever is later.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Account Balance Formula</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">For employees hired (or rehired) before
January 1, 2002, benefits are the greater of the final average pay formula determination or the account balance formula, described below. We use the account balance formula to determine the retirement benefit under the NRP for all employees hired or
rehired on or after January 1, 2002. The notional account under the account balance formula is comprised of the following components:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Opening Balance Amount<FONT
 style="font-style:Normal;">: We determined the accrued benefit under the FAP formula as of December 31, 2001, and converted this accrued benefit into a lump sum that reflected the current value of that benefit; plus</FONT> </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Pay Credits<FONT
 style="font-style:Normal;">: We add amounts to the account every pay period based on the participant's years of service and compensation. The pay credits range from 3% of pay if the participant has up to thirty-five months of service, plus 3% of
pay over the Social Security wage base for the year in question, to 7% of pay for those with over twenty-two years of service, plus 4% of pay over the Social Security wage base for the year in question; plus</FONT> </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">Interest
Credits<FONT style="font-style:Normal;">: We add interest amounts to the account on a biweekly basis based on the thirty-year United States Treasury bill rate in effect from the second month preceding the current quarter. The minimum interest rate
is 3.25%.</FONT> </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Effective January
1, 2010, participants eligible for the FAP formula are not eligible to receive pay credits under the account balance formula after December 31, 2009; however, such participants do continue to receive interest credits on their account balance
benefit.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Supplemental Defined Benefit Plan</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">NMIC maintains the Nationwide Supplemental Retirement Plan, or
"SRP," an unfunded, nonqualified supplemental defined benefit plan. The SRP provides supplemental retirement benefits to individuals who are in an executive-level position and who are receiving compensation in excess of the limits set by Section
401(a)(17) of the Internal Revenue Code. An individual's participation in the SRP begins the first day of January of the calendar year following the date they meet the eligibility requirements. Participants receive the following benefits under the
SRP:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">1.25% of the participant's
final average compensation, as defined in the "Qualified Pension Plans" section above, multiplied by the number of years of service, up to a maximum of forty years; plus </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">0.75% of the participant's
final average compensation in excess of Social Security-covered compensation, as defined in "Qualified Pension Plans" above, multiplied by the number of years of service, up to a maximum of forty years; less </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">benefits
the executive accrued under the NRP. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For purposes of the SRP, the definition of "covered
compensation" is the same as described above in the "Final Average Pay Formula" section, without the Internal Revenue Code limits and including, at the time of deferral, any compensation that would be deferred pursuant to an individual compensation
agreement with any Nationwide company.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">To the extent
permitted under the rules governing nondiscrimination for the NRP, all or a portion of the benefit under the SRP for participants who were fully vested on December 31, 2008, was transferred to the NRP. As a result, for most fully vested
participants, a greater portion of their retirement benefit will be provided under the NRP.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-70</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_71"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">In addition, the SRP provides all participants with a minimum
benefit equal to the accrued benefit under the SRP as of December 31, 2007. For participants who first became eligible on or after January 1, 1999, and before January 1, 2007, benefits vest over a period of five years. Benefits vest for participants
who first become eligible on or after January 1, 2007, over a period of 49 months. The vested percentage is based on the lesser of the participant's vested percentage in the NRP or the vested percentage pursuant to a specified vesting percentage
schedule under the SRP.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For all individuals who are new
participants on or after January 1, 2009, the SRP credits service by providing twelve months of credited service on the date they become a participant and credits twelve months of service for each subsequent calendar year only if the individual
meets the eligibility requirements as of the last day of the calendar year. For individuals who were participants in the SRP before January 1, 2009, the SRP provides one month of credited service for each month the participant performs service,
beginning on the participant's date of hire through December 31, 2007. After December 31, 2007, these participants received credits for twelve months of service for a calendar year only if the individual meets the SRP eligibility requirements as of
the last day of the calendar year.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Effective January 1,
2010, the SRP no longer provides a subsidized early retirement benefit for participants whose benefit calculation includes months of credited service accrued or credited on or after January 1, 2010. For an affected participant, the SRP determines
his or her benefit by providing the greatest of three benefit calculations:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">his or her SRP benefit as of
December&#160;31, 2007, with the subsidized early retirement factors; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">his or her total benefit as
of December&#160;31, 2009 minus the benefits accrued under the NRP at date of termination, with the subsidized early retirement factors; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">his or
her SRP benefit without subsidized early retirement factors at the date of termination. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Savings Plan</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The Nationwide Savings Plan, or the "NSP,"
is a qualified profit-sharing plan that includes a qualified cash or deferred arrangement and covers eligible employees of participating Nationwide companies. Under the NSP, our named executive officers and other eligible participants may elect to
contribute between 1% and 80% of their compensation to accounts established on their behalf. Participant contributions are in the form of voluntary, pre-tax salary deductions or after-tax "Roth 401(k)" salary deductions. Participants who reach the
age of fifty during the plan year may also make "catch up" contributions for that year of up to $5,500 for 2014. Participating Nationwide companies make matching employer contributions for the benefit of their participating employees, at a rate of
50% of the first 6% of compensation deferred or contributed to the NSP by each employee. The NSP holds all amounts that the participants contribute in a separate account for each participant and invests the amounts in the available investment
options chosen by the participant.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For purposes of the
NSP, covered compensation includes all wages reported on a Form W-2 Wage and Tax Statement from any Nationwide company, plus compensation deferred under Sections 125, 132(f)(4) and 401(k) of the Internal Revenue Code and excludes:</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">severance pay and other
amounts following the later of (i) the pay period that includes the participant's date of termination, and (ii) the pay period in which the participant's date of termination is posted to Nationwide's payroll system; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">company car value or subsidy
or reimbursement for loss of a company car; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">a lump-sum payment for
vacation days made upon termination of employment or pursuant to an election by the participant; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">imputed income, executive
officer perquisites and benefits paid under any long-term performance or equity plan; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">income imputed to any
participant as a result of the provision of health or other benefits to members of the participant's household; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">any payment made to a
participant to offset the tax cost of other amounts Nationwide paid that are included in the participant's income for federal tax purposes; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">any payment of deferred
compensation made prior to the participant's severance date or on account of a participant's severance date; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">expense
reimbursement or expense allowances including reimbursement for relocation expenses. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Covered compensation is subject to Internal Revenue Code
limits and is calculated on a calendar-year basis.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">A
participant is eligible to receive the value of his or her vested account balance upon termination of his or her employment. However, he or she may withdraw all or a part of the amounts credited to his or her account prior to termination, such as
upon attainment of age fifty-nine and one-half years old. A participant is immediately vested in all</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-71</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_72"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">amounts credited to his or her account as a result of salary deferrals or
after-tax contributions and earnings or losses on those deferrals or contributions, as applicable. Vesting in employer matching contributions and earnings or losses on those contributions occurs on a pro rata basis over a period of five years.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The NSP offers an automatic enrollment and automatic increase
feature, which applies to participants contributing less than 12% of their compensation.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Supplemental Defined Contribution
Plan</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The Nationwide Supplemental Defined Contribution
Plan, or "NSDC Plan," is an unfunded, nonqualified defined contribution supplemental benefit plan. The NSDC Plan provides benefits equal to employer matching contributions that would have been made for the participants under the Nationwide Savings
Plan, or "NSP," but for the Internal Revenue Code's limitation on compensation that can be considered for deferrals to the NSP. Only executives of certain Nationwide companies whose annual compensation is in excess of the limit set forth in the
Internal Revenue Code are eligible to participate in the NSDC Plan. The benefits under the plan vest after five years of participation.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For purposes of the NSDC Plan, "covered compensation" refers
to covered compensation as defined in "Nationwide Savings Plan" above, without the Internal Revenue Code limits and including, at the time of deferral, any compensation that would be deferred pursuant to an individual compensation agreement with any
Nationwide company. We credit individual accounts under the NSDC Plan with deferral amounts and earnings or losses based on the net investment return on the participant's choice of investment measures offered under the plan. No guaranteed or
above-market earnings are available under this plan. Participants may change their investment options on a daily basis.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Payouts under the NSDC Plan are made as follows:</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">credits made for plan years
prior to 1996, and earnings on those amounts, are paid in January of the year following the year the participant's employment terminates; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">unless
otherwise elected in accordance with the terms of the plan, credits made to the plan for plan years after 1995, and earnings on those amounts, are paid in 10 installments for participants who qualify for a benefit from the NRP and whose account
balance exceeds $25,000, and in a single lump sum payment for all other participants. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">Nonqualified Deferred Compensation for 2014</DIV>
<DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:38.91%;">Name
<BR> (a) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:11.39%;">Executive
<BR> contributions in<BR> last fiscal year<SUP style="font-size:85%;vertical-align:text-top;">1</SUP><BR> (b) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:9.66%;">Registrant
<BR> contributions<BR> in last fiscal<BR> year<SUP style="font-size:85%;vertical-align:text-top;">2</SUP><BR> (c) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:10.92%;">Aggregate
<BR> earnings in<BR> last fiscal year<SUP style="font-size:85%;vertical-align:text-top;">3</SUP><BR> (d) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:9.68%;">Aggregate
<BR> withdrawals/<BR> distributions<SUP style="font-size:85%;vertical-align:text-top;">4</SUP><BR> (e) </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:10.54%;">Aggregate
<BR> balance at<BR> last fiscal<BR> year end<SUP style="font-size:85%;vertical-align:text-top;">5</SUP><BR> (f) </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:38.91%;">Kirt
 A. Walker </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:11.39%;">$109,352
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:9.66%;">$17,762
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.92%;">$114,958
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:9.68%;">$110,886
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.54%;">$1,444,473
 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:38.91%;">Timothy
 G Frommeyer </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;color:#000000;font-family:Arial;font-family:Arial;font-size:9pt;font-size:9pt;font-style:Normal;font-style:Normal;font-weight:Normal;font-weight:Normal;line-height:12pt;line-height:12pt; padding-bottom:1.5pt;padding-left:38.52pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-decoration:none;text-transform:none;text-transform:none;vertical-align:top;white-space:nowrap;
width:11.39%;">&#8211;
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:9.66%;">$
<FONT style="padding-left:5.00pt;"></FONT>6,647 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:10.92%;">$
<FONT style="padding-left:10.01pt;"></FONT>2,688 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;color:#000000;font-family:Arial;font-family:Arial;font-size:9pt;font-size:9pt;font-style:Normal;font-style:Normal;font-weight:Normal;font-weight:Normal;line-height:12pt;line-height:12pt; padding-bottom:1.5pt;padding-left:38.52pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-decoration:none;text-transform:none;text-transform:none;vertical-align:top;width:9.68%;">&#8211;
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.54%;">$
<FONT style="padding-left:12.51pt;"></FONT>78,126 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:38.91%;">Stephen
 S. Rasmussen </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;color:#000000;font-family:Arial;font-family:Arial;font-size:9pt;font-size:9pt;font-style:Normal;font-style:Normal;font-weight:Normal;font-weight:Normal;line-height:12pt;line-height:12pt; padding-bottom:1.5pt;padding-left:38.52pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-decoration:none;text-transform:none;text-transform:none;vertical-align:top;white-space:nowrap;
width:11.39%;">&#8211;
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:9.66%;">$14,513
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:10.92%;">$
<FONT style="padding-left:5.00pt;"></FONT>38,504 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;color:#000000;font-family:Arial;font-family:Arial;font-size:9pt;font-size:9pt;font-style:Normal;font-style:Normal;font-weight:Normal;font-weight:Normal;line-height:12pt;line-height:12pt; padding-bottom:1.5pt;padding-left:38.52pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-decoration:none;text-transform:none;text-transform:none;vertical-align:top;white-space:nowrap;
width:9.68%;">&#8211;
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.54%;">$
<FONT style="padding-left:7.50pt;"></FONT>201,321 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:38.91%;">John
 L. Carter </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:11.39%;">$
<FONT style="padding-left:10.01pt;"></FONT>6,690 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:9.66%;">$
<FONT style="padding-left:5.00pt;"></FONT>7,115 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:top;width:10.92%;">$
<FONT style="padding-left:10.01pt;"></FONT>6,397 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;color:#000000;font-family:Arial;font-family:Arial;font-size:9pt;font-size:9pt;font-style:Normal;font-style:Normal;font-weight:Normal;font-weight:Normal;line-height:12pt;line-height:12pt; padding-bottom:1.5pt;padding-left:38.52pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-decoration:none;text-transform:none;text-transform:none;vertical-align:top;white-space:nowrap;
width:9.68%;">&#8211;
 </TD>
<TD style="padding-bottom:1.5pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:1.5pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.54%;">$
<FONT style="padding-left:7.50pt;"></FONT>187,216 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:1.5pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:38.91%;">Eric
 S. Henderson </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;color:#000000;font-family:Arial;font-family:Arial;font-size:9pt;font-size:9pt;font-style:Normal;font-style:Normal;font-weight:Normal;font-weight:Normal;line-height:12pt;line-height:12pt; padding-bottom:6pt;padding-left:38.52pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-decoration:none;text-transform:none;text-transform:none;vertical-align:top;white-space:nowrap;
width:11.39%;">&#8211;
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:9.66%;">$
<FONT style="padding-left:5.00pt;"></FONT>8,632 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.92%;">$
<FONT style="padding-left:10.01pt;"></FONT>1,853 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;color:#000000;font-family:Arial;font-family:Arial;font-size:9pt;font-size:9pt;font-style:Normal;font-style:Normal;font-weight:Normal;font-weight:Normal;line-height:12pt;line-height:12pt; padding-bottom:6pt;padding-left:38.52pt;padding-right:6pt;padding-top:1.5pt;text-align:center;text-decoration:none;text-decoration:none;text-transform:none;text-transform:none;vertical-align:top;white-space:nowrap;
width:9.68%;">&#8211;
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:1.5pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:1.5pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:10.54%;">$
<FONT style="padding-left:12.51pt;"></FONT>53,849 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Amount represents voluntary
deferrals to the Nationwide Individual Deferred Compensation Plan. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Amount
represents company contributions to the Nationwide Supplemental Defined Contribution Plan. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Amount represents investment
gain from applicable nonqualified deferred compensation plans attributable to all prior year deferrals in the plans. Investment gains or losses are attributable to the notional investment selections the executive officer makes. Executive officers
may choose from approximately eighty investment options for the Nationwide Individual Deferred Compensation Plan and the Nationwide Supplemental Defined Contribution Plan, and from sixteen investment options for the Nationwide Economic Value
Incentive Plan. The Nationwide Economic Value Incentive Plan is a terminated plan that provided for involuntarily deferred compensation we may still pay to an executive officer based on his or her distribution election. </TD></TR></TABLE> </DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Amount represents
distributions from the Nationwide Individual Deferred Compensation Plan. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">5</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Represents
balances in the following plans: the Nationwide Individual Deferred Compensation Plan, the Nationwide Supplemental Defined Contribution Plan and the Nationwide Economic Value Incentive Plan. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Nonqualified Deferred Compensation Plans</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Executive deferred compensation benefits are
a key component of our total rewards philosophy. We provide competitive levels of deferred compensation benefits to attract and provide for long-term retention of key talent and reward long-term service. These benefits allow executives to prepare
for retirement and make up for regulatory limits on qualified plans.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-72</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_73"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Individual Deferred Compensation Plan</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">Under the "Nationwide Individual Deferred
Compensation Plan," or "IDC Plan," eligible executives of participating Nationwide companies may elect to defer payment of compensation otherwise payable to them. Eligible executive officers may enter into deferral agreements in which they may
annually elect to defer up to 80% of their salary and short-term incentive compensation they earn during the following year or performance cycle. Participants may also defer up to 80% of the long-term incentive compensation they earn during the
following performance cycle. Deferral elections are effective prospectively. Amounts an executive officer defers under the IDC Plan are generally payable in cash in annual installments beginning in January of the calendar year immediately following
the calendar year in which the executive officer terminates his or her employment, including due to the death of the participant. However, an executive officer may elect to receive payments after the expiration of the deferral period the executive
officer elects, from one to ten years from the year in which the deferral of compensation applies. If the entire account balance is less than $25,000 at the time a payment is due, the entire account balance will be distributed, regardless of the
distribution election on file. We credit individual accounts under the IDC Plan with deferral amounts and earnings or losses based on the net investment return on the participant's choice of investment measures offered under the IDC Plan. No
guaranteed or above-market earnings are available under this plan. The plan previously restricted participants' changes in investment options to once every five business days. However, effective October 1, 2014, the plan permits participants to make
investment changes on a daily basis. Each participant is always fully vested in his or her accrued amount.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The IDC Plan permits a participant or beneficiary to take an
unscheduled withdrawal from his or her account provided that such elective withdrawal applies only to amounts earned and vested, including earnings, on or before December 31, 2004, and any such withdrawal is subject to a 10% early withdrawal
penalty.</DIV> <DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">Potential Payments Upon Termination or Change of Control</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">We have entered into agreements and maintain
plans that require us to provide compensation to our named executive officers upon an involuntary termination of employment or a voluntary termination for good reason following a substantial reorganization. The following narrative describes the
payments and benefits our named executive officers could receive under these agreements and plans. The tables that follow reflect our estimate of the payments and benefits, to the extent allocable to us under the cost-sharing agreement, we would
provide to each of our named executive officers under various termination scenarios or for good reason following a substantial reorganization. The amounts shown in the tables assume that terminations of employment and, as applicable, the change of
control, occurred on December 31, 2014.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Payments and
benefits that are generally available to all salaried employees, and that do not discriminate in favor of the executive officers, such as disability benefits, are not disclosed. Generally, the amounts shown are estimates and actual payments and
benefits could be more or less than the amounts shown.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Payments Made Upon Standard Termination</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">General Termination Payments</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Regardless of the manner in which an executive officer's
employment terminates, he or she is entitled to receive the following amounts, which are earned during employment:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">vested amounts contributed,
plus related earnings under, the Nationwide Savings Plan, the Nationwide Individual Deferred Compensation Plan, and the Nationwide Supplemental Defined Contribution Plan; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">amounts accrued and vested
under the Nationwide Retirement Plan and the Nationwide Supplemental Retirement Plan; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">unused
paid time off, up to specified limits and subject to certain limitations as specified within our paid time off plan. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Short-Term Incentive Awards</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The effect of a termination of employment on
certain executive officers' short-term incentives is controlled by the terms of either the PIP or the SIP, as applicable. Under these plans, unless otherwise provided by the NMIC human resources committee in connection with specified terminations of
employment, we make a payment of a short-term incentive only if, and to the extent, the executive officer has attained the performance goals with respect to the related performance period, and only if we employ the executive officer through the end
of the performance period. In addition, an executive officer must be employed through the date the short-term award is made. However, in the event an executive officer's employment terminates during the performance period, or prior to the date
awards are paid, due to death or disability, the executive officer or the executive officer's estate will receive a portion or all of the incentive as the NMIC human resources committee determines. In the event an executive officer's employment
terminates during the performance period (or for</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-73</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_74"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;text-align:left;text-decoration:none;text-transform:none;">PIP, prior to the date PIP payments are made) due to retirement or
termination of the executive officer's employment without cause, the executive officer will remain eligible to receive a portion of the incentive based on the amount of time the executive officer was employed on the date the PIP payment is made and
the executive officer's attainment of the performance goals for the performance period.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Long-Term Performance Plan</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The LTPP plan design measures performance
over a three-year period. The design requires both revenue growth and capital strength in order for participants to receive payments, which will range from zero to two and one-half times the target amount. If a voluntary termination of employment or
termination for cause occurs prior to the last day of the performance period, an executive officer's outstanding target award opportunities will be forfeited. If a termination is due to death, disability or retirement the target award opportunity
will be prorated based on the number of days worked in the performance period. Because the termination payment tables that follow assume that the named executive officers worked through all three years of the 2012-2014 performance period, through
the first and second years of the 2013-2015 performance period, and through the first year of the 2014-2016 performance period, the amounts shown in the tables relating to the awards under the LTPP reflect prorated opportunities for termination
without cause or for good reason following a substantial reorganization or for termination due to death, disability or retirement, which would be paid after December 31, 2015 or 2016 (as applicable), based on actual performance. Organizational
performance was estimated at target performance for purposes of these tables.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">For a description of the retirement, death and disability
provisions in the LTPP, see "Payments Made Upon Retirement" and "Payments Made Upon Death or Disability" below.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:Normal;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Severance Payments and Benefits</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Those named executive officers who do not have a severance
agreement participate in the Nationwide Severance Pay Plan. The plan is generally available to all of our salaried employees and provides for certain payments if an employee, including an executive officer, involuntarily leaves the company due to
job elimination. The longer an executive officer works for us, the more the executive officer may be eligible to receive as severance pay benefits when the executive officer's employment ends. In order to receive payment under the Nationwide
Severance Pay Plan, if eligible, the executive officer must sign a severance and release agreement. We generally calculate severance pay as one week for each year of service, not to exceed twenty-five weeks, with a minimum of two weeks. Years of
service used to calculate the severance payment includes all types of service with us, including service with affiliates and subsidiaries, calculated through the last date of employment.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Certain severance agreement guidelines are applicable to our
executive officers. The guidelines provide for severance benefits that may be available to executive officers in addition to the Nationwide Severance Pay Plan, assuming the executives signs the appropriate release. The guidelines allow management to
offer the following when negotiating severance agreements with executive officers:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">a lump-sum cash payment equal
to six to twelve months, depending on the circumstances of departure, of the annual base salary in effect on the date of termination; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">paid leave of absence of
twenty-one days for executive officers over the age of forty to permit the executive officer time to seek legal advice regarding the terms of the severance agreement; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">short-term incentive
payments earned under the PIP, prorated to the date of termination; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">up to one year of executive
placement services, or a lump-sum payment of $6,800 in lieu of such services; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">payout of the current year
earned but unused paid time off; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">transfer
of ownership of certain computer equipment, less any Nationwide-licensed software or operating system, to the executive officer. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Executive Severance Agreements</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">NMIC has entered into executive severance
agreements with Messrs. Rasmussen, Carter, and Walker. The initial term of the agreement for Messrs. Rasmussen and Walker ended December 31, 2011, with automatic one-year renewals commencing on January 1, 2012, unless NMIC or the executive officer
gives notice of nonrenewal. The initial term of the agreement for Mr. Carter ended on December 31, 2013, with automatic one-year renewals commencing on January 1, 2014, unless NMIC or the executive officer gives notice of nonrenewal.</DIV> </DIV>
<DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-74</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_75"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The agreements provide that NMIC will pay salary, incentive
compensation, and benefits as determined by NMIC's board of directors, or a committee thereof. The agreements also contain provisions related to certain payments and benefits NMIC would pay upon specified termination events, a portion of would be
allocated to NLIC. The details of those provisions are set forth below in "Potential Payments Upon Termination or Change of Control."</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The following description of Messrs.
Rasmussen's, Carter's, and Walker's agreements and the amounts presented in the tables that follow are based on the terms of the agreements as they existed on December 31, 2014, and assume a termination of employment, and such triggering events as
are contemplated by the executive severance agreements, occurred on December 31, 2014.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The executive severance agreements in effect as of December
31, 2014, for Messrs. Rasmussen, Walker, and Carter are substantially similar to each other. Each agreement contains material non-competition, non-solicitation and confidentiality provisions, which condition Nationwide's promises to pay severance on
the executive officer's compliance with such provisions. The agreements also condition receipt of severance upon the execution of a binding release of NMIC and other related parties.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Under the executive severance agreements in effect as of
December 31, 2014, upon a termination by NMIC without cause or upon a resignation for good reason after a substantial reorganization of NMIC, the following payments and benefits would be provided:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">a lump-sum cash payment equal
to one or two times, as applicable, the annual base salary in effect immediately before the termination, payable within 30 days following the executive's termination; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">a lump-sum cash payment equal
to one or two times, as applicable, the short-term incentive compensation that would have been earned pursuant to the PIP during the fiscal year in which the executive officer's termination date occurs payable based on actual performance over the
full year, payable when annual bonuses are paid to our other executives; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">a lump-sum cash payment equal
to the cost, including a gross-up payment to cover income and FICA taxes on the payment, to the executive officer of continuing the medical and dental coverage under COBRA, or under the retiree medical provisions of NMIC's medical plan, if
applicable, for the executive officer, his spouse and dependents, for a specified period of time following the executive's termination date; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">supplemental benefits equal
to the benefits the executive officer would have been entitled to receive on the termination date under certain retirement and deferred compensation plans, had the executive officer been fully vested in those plans on the termination date, less any
benefits the executive officer actually receives under those plans, paid at the time the executive's benefits are otherwise paid under the applicable plans; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">in the event that the
executive officer's termination date occurs within three years of the date on which the executive officer would have been first eligible to retire under the Nationwide Retirement Plan, a supplemental benefit equal to the benefits the executive
officer would have received under the Nationwide Retirement Plan, the Nationwide Supplemental Retirement Plan and the Nationwide Excess Benefit Plan, had the executive officer earned service and age credit for the period ending on the earlier of
three years after the executive officer's termination date or the earliest date the executive officer would have been eligible to retire under the Nationwide Retirement Plan and had the executive officer been fully vested under those plans, less any
benefits the executive officer actually receives under those plans, paid at the time the executive's benefits are otherwise paid under the applicable plans; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">a lump-sum cash payment equal
to the matching contributions that NMIC would have made for the executive officer under the Nationwide Savings Plan and the Nationwide Supplemental Defined Contribution Plan during the severance period defined in the agreement, as if the executive
officer's contributions had continued in the same amount and at the same rate in effect immediately prior to the executive officer's termination date, payable within 30 days following the executive's termination date; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">service and age credits for
the purpose of eligibility under NMIC's retiree medical plan, as if the executive officer had continued employment through the executive severance agreement's specified severance period; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the right to retain certain
computer and office equipment and furniture used at the executive officer's home; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">amounts
earned, accrued or owed but not paid and benefits owed under employee benefit plans and programs. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Whether a "substantial reorganization" has occurred will be
determined by the board of directors of NMIC.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">If the
board of directors has determined that a substantial reorganization has occurred, it may establish a period of time during which the executive may terminate his employment if an event constituting "good reason" occurs. Under the severance
agreements, the executive will have "good reason" to terminate his employment during the period established by the board of directors if any of the following events occur and remain uncured for 30 days after the executive's notice to NMIC of the
event:</DIV> </DIV> <DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-75</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_76"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">a material diminution in the
executive's authority, duties or responsibilities, as reasonably determined by the board of directors of NMIC; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">a material change in the
geographic location at which the executive must perform services; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%;">a material diminution in the
executive's base salary, other than due to a change in base salary for all senior executives in NMIC; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">any
action or inaction of NMIC that constitutes a material breach by NMIC of the severance agreement. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Under the severance agreements, "cause" means any of the
following:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:0pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the executive has been
convicted of a felony; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the executive neglects,
refuses or fails to perform his material duties to NMIC, which failure has continued for a period of at least 30 days after notice from NMIC; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the executive engages in
misconduct in the performance of his duties; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the executive engages in
public conduct that is harmful to the reputation of NMIC; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">the executive breaches his
non-competition, non-disclosure or non-solicitation covenants; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">the
executive breaches NMIC's written code of business conduct and ethics. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Payments Made Upon Retirement</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">If an executive officer were to retire on
December 31, 2014, the executive officer would receive the full three-year 2012-2014 LTPP award relating to operating revenue growth/capital strength, an amount equal to two-thirds of the total target incentive opportunity for the 2013-2015
performance period and one-third of the total target incentive opportunity for the 2014-2016 performance period multiplied by the respective performance scores paid in the year following the end of the performance periods. For purposes of operating
revenue growth/capital strength awards, retirement means a termination of employment on or after the date on which the executive officer has attained:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">Normal Retirement Age;
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">age fifty-five and completed
120 months of vesting service; or </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">age
sixty-two and completed sixty months of vesting service, </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">as determined under the NRP.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The PIP and the SIP provide that if an executive officer
retires, the executive officer will receive his or her short-term incentive compensation earned during the fiscal year in which termination occurs. The short-term compensation payment is prorated to reflect services performed through the date of
employment termination and is based on actual performance for the year.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Payments Made Upon Death or Disability</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">If an executive officer dies or becomes
disabled, in addition to any applicable benefits listed in "Payments Made Upon Standard Termination," the executive officer will receive benefits under our disability plan or his named beneficiary will receive payments under NMIC's life insurance
plan, as appropriate. In addition, under the PIP and the SIP, the executive officer will receive his or her short-term incentive compensation earned during the fiscal year in which the termination occurs. The short-term compensation payment is
prorated to reflect services performed through the date of employment termination and is based on the actual performance for the year.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Payments Made Upon a Change of Control or Termination Upon or
Following a Change of Control</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">The PIP,
the SIP, and the LTPP do not provide for special treatment of awards upon a change in control. However, a resignation for good cause following a substantial reorganization entitles the executive to certain payments described above and shown in the
tables below.</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following tables reflect our estimates
of the allocated payments and benefits our named executive officers would have received in lump sum if a termination of employment had occurred on December 31, 2014.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Kirt A. Walker</DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:29.04%;">Benefits
 and payments<BR> upon termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.50%;">Voluntary
 termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:18.95%;">Termination
 without cause<BR> or for good reason<BR> following a substantial<BR> reorganization </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.66%;">For
 cause termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.97%;">Death,
 disability,<BR> or retirement </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:29.04%;">Short-term
 incentives:<BR> </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:15.50%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:18.95%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:15.66%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:13.97%;">&#160; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-76</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_77"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:0pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:29.04%;">Benefits
 and payments<BR> upon termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.50%;">Voluntary
 termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:18.95%;">Termination
 without cause<BR> or for good reason<BR> following a substantial<BR> reorganization </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.66%;">For
 cause termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.97%;">Death,
 disability,<BR> or retirement </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:29.04%;">Annual
 incentives<SUP style="font-size:85%;vertical-align:text-top;">1</SUP><BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:18.95%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:4.38pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>311,749 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:29.04%;">Long-term
 incentives:<BR> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:15.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:18.95%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:15.66%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:top;width:13.97%;">&#160; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:29.04%;">LTPP
 12-14 award<SUP style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.50%;">$708,248
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>708,248 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>708,248 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:29.04%;">LTPP
 13-15 award<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>420,168 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>420,168 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:29.04%;">LTPP
 14-16 award<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>196,716 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>196,716 </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:29.04%;">Life
 insurance proceeds </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:18.95%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:13.97%;">$2,457,900
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:29.04%;">Cash
 severance<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:18.95%;">$1,629,476
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:13.97%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:29.04%;">Total
 compensation<BR> </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:15.50%;">$708,248
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;width:18.95%;">$2,954,608
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:top;width:13.97%;">$4,094,781
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Walker would receive with respect to the 2014 short-term incentive payment under the PIP upon a termination of employment, except for cause, on December 31, 2014. Mr. Walker would not be eligible to receive a PIP award payment upon a voluntary
termination on December 31, 2014. The PIP requires that plan participants be employed on the date PIP awards are paid. The "Termination without cause or for good reason following a substantial reorganization" column does not include the 2014
short-term incentive opportunity as the severance agreement provides that the short-term incentive payment under the agreement is in lieu of the payments that would be made under the PIP. The amounts were not reduced to their present value.
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Walker would receive with respect to the 2012-2014 awards under the LTPP upon a termination of employment, except for cause, on December 31, 2014. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Walker would receive with respect to the 2013-2015 and 2014-2016 awards under the LTPP upon termination without cause or due to substantial reorganization, or for death, disability or retirement (not eligible), on December 31, 2014. Mr. Walker would
not have qualified for retirement under the LTPP and would forfeit the target award opportunity granted in the year of termination unless termination is due to death or disability or if the termination is without cause or due to substantial
reorganization. Accordingly, the amounts shown assume a two-thirds distribution of the total 2013-2015 award, which would have been paid in 2016, and a one-third distribution of the total 2014-2016 award, which would have been paid in 2017, using a
performance score that was estimated as of December 31, 2014. The amounts were not reduced to their present value. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Includes
lump-sum cash amounts equal to the sum of two times base salary; two times the 2014 matching amounts in the Nationwide Savings Plan and Nationwide Supplemental Defined Contribution Plan; two times the 2014 short-term incentive bonus; two times the
annual COBRA rate, grossed up for FICA and income taxes, in effect at the time of termination for Mr. Walker and his family. The amounts were not reduced to their present value. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Timothy G. Frommeyer</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:29.04%;">Benefits
 and payments<BR> upon termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.50%;">Voluntary
 termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:18.95%;">Termination
 without cause </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.66%;">For
 cause termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.97%;">Death,
 disability,<BR> or retirement </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Short-term
incentives:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:15.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:18.95%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:15.66%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.97%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Annual
incentives<SUP style="font-size:85%;vertical-align:text-top;">1</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:5.00pt;"></FONT>37,770 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:12.51pt;"></FONT>37,770 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Long-term
incentives:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:15.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:18.95%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:15.66%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.97%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 12-14
award<SUP style="font-size:85%;vertical-align:text-top;">2</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$110,093
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$110,093
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>110,093 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 13-15
award<SUP style="font-size:85%;vertical-align:text-top;">3</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:5.00pt;"></FONT>55,982 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:12.51pt;"></FONT>55,982 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 14-16
award<SUP style="font-size:85%;vertical-align:text-top;">3</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:5.00pt;"></FONT>24,463 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:12.51pt;"></FONT>24,463 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Life insurance
proceeds</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$1,137,621
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Cash
severance<SUP style="font-size:85%;vertical-align:text-top;">4</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$231,707
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Total
compensation</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$110,093
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$350,033
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$1,365,929
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Frommeyer would receive with respect to the 2014 short-term incentive payment under the PIP upon a termination of employment, except for cause, on December 31, 2014. Mr. Frommeyer would not be eligible to receive a PIP award payment upon a voluntary
termination on December 31, 2014. The PIP requires that plan participants be employed on the date PIP awards are paid. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Frommeyer would receive with respect to the 2012-2014 awards under the LTPP upon a termination of employment, except for cause, on December 31, 2014. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Reflects
the amount Mr. Frommeyer would receive with respect to the 2013-2015 and 2014-2016 awards under the LTPP upon termination without cause or due to substantial reorganization, or for death, disability or retirement (not eligible), on December 31,
2014. Mr. Frommeyer would not have qualified for retirement under the LTPP and would forfeit the target award opportunity granted in the year of termination unless termination is due to death or disability or if the termination is without cause or
due to substantial reorganization. Accordingly, the amounts shown assume a two-thirds distribution of the total 2013-2015 award, which would have been paid in 2016, and a one-third distribution of the total 2014-2016 award, which would have been
paid in 2017, using a performance score that was estimated as of December 31, 2014. The amounts were not reduced to their present value. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Includes an estimate of the
amount we would pay under the severance plan guidelines for executives described above. For purposes of this table, we assumed a payment based on twelve months of base salary and $6,800, in lieu of outplacement services. </TD></TR></TABLE> </DIV>
</DIV> <DIV style="width:100%;"> <DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-77</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_78"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Stephen S. Rasmussen</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:29.04%;">Benefits
 and payments<BR> upon termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.50%;">Voluntary
 termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:18.95%;">Termination
 without cause<BR> or for good reason<BR> following a substantial<BR> reorganization </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.66%;">For
 cause termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.97%;">Death,
 disability,<BR> or retirement </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Short-term
incentives:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:15.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:18.95%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:15.66%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.97%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Annual
incentive<SUP style="font-size:85%;vertical-align:text-top;">1</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:7.50pt;"></FONT>308,649 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>308,649 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Long-term
incentives:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:15.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:18.95%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:15.66%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.97%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 12-14
award<SUP style="font-size:85%;vertical-align:text-top;">2</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$1,606,169
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$1,606,169
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$1,606,169
 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 13-15
award<SUP style="font-size:85%;vertical-align:text-top;">3</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:7.50pt;"></FONT>874,052 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>874,052 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>874,052 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 14-16
award<SUP style="font-size:85%;vertical-align:text-top;">3</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:7.50pt;"></FONT>391,328 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>391,328 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>391,328 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Life insurance
proceeds</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>460,500 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Cash
severance<SUP style="font-size:85%;vertical-align:text-top;">4</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$1,022,769
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Total
compensation</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$3,180,198
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$3,894,318
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$3,640,698
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Rasmussen would receive with respect to the 2014 short-term incentive payment under the PIP upon a termination of employment, except for cause, on December 31, 2014. The PIP requires that plan participants be employed on the date PIP awards are
paid. However, since Mr. Rasmussen would have qualified for retirement on December 31, 2014, he would receive the PIP payment. The "Termination without cause or for good reason following a substantial reorganization" column does not include the 2014
short-term incentive opportunity, as the severance agreement provides that the short-term incentive payment under the agreement is in lieu of the payment that would be made under the PIP. The amounts were not reduced to their present value.
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Rasmussen would receive with respect to the 2012-2014 awards under the LTPP upon a termination of employment, except for cause, on December 31, 2014. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Rasmussen would receive with respect to the 2013-2015 and 2014-2016 awards under the LTPP upon termination on December 31, 2014. Mr. Rasmussen would have qualified for retirement under the LTPP. Accordingly, the amounts shown assume a two-thirds
distribution of the total 2013-2015 award, which would be paid in 2016, and a one-third distribution of the total 2014-2016 award, which would be paid in 2017, using a performance score that was estimated as of December 31, 2014, which would have
been paid in 2015. The amounts were not reduced to their present value. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Includes
lump-sum cash amounts equal to the sum of two times base salary; three times the 2014 matching amounts in the Nationwide Savings Plan and Nationwide Supplemental Defined Contribution Plan; two times the 2014 short-term incentive bonus; three times
the annual COBRA rate, grossed up for FICA and income taxes, in effect at the time of termination for Mr. Rasmussen and his family. The amounts were not reduced to their present value. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">John L. Carter</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:29.04%;">Benefits
 and payments<BR> upon termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.50%;">Voluntary
 termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:18.95%;">Termination
 without cause<BR> or for good reason<BR> following a substantial<BR> reorganization </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.66%;">For
 cause termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.97%;">Death,
 disability,<BR> or retirement </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Short-term
incentives:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:15.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:18.95%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:15.66%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.97%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Sales
Incentive<SUP style="font-size:85%;vertical-align:text-top;">1</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>325,978 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Long-term
incentives:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:15.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:18.95%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:15.66%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.97%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 12-14
award<SUP style="font-size:85%;vertical-align:text-top;">2</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$438,523
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>438,523 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>438,523 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 13-15
award<SUP style="font-size:85%;vertical-align:text-top;">3</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>255,102 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>255,102 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 14-16
award<SUP style="font-size:85%;vertical-align:text-top;">3</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>118,029 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>118,029 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Life insurance
proceeds</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$1,069,200
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Cash
severance<SUP style="font-size:85%;vertical-align:text-top;">4</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>505,591 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Total
compensation</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$438,523
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$1,317,245
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$2,206,832
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Carter would receive with respect to the 2014 short-term incentive payment under the SIP upon a termination of employment, except for cause, on December 31, 2014. Mr. Carter would not be eligible to receive a SIP award payment upon a voluntary
termination on December 31, 2014. We require that SIP participants be employed on the date SIP awards are paid. The "Termination without cause or for good reason following a substantial reorganization" column does not include the 2014 short-term
incentive opportunity, as the severance agreement provides that the short-term incentive payment under the agreement is in lieu of the payment that would be made under the SIP. The amounts were not reduced to their present value. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Carter would receive with respect to the 2012-2015 awards under the LTPP upon a termination of employment, except for cause, on December 31, 2014. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Reflects
the amount Mr. Carter would receive with respect to the 2013-2015 and 2014-2016 awards under the LTPP upon termination without cause or due to substantial reorganization, or for death, disability or retirement (not eligible), on December 31, 2014.
Mr. Carter would not have qualified for retirement under the LTPP and would forfeit the target award opportunity granted in the year of termination unless termination is due to death or disability or if the termination is without cause. Accordingly,
the amounts </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-78</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_79"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:2.77%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">shown assume a two-thirds
distribution of the total 2013-2015 award, which would have been paid in 2016, and a one-third distribution of the total 2014-2016 award, which would have been paid in 2017, using a performance score that was estimated as of December 31, 2014. The
amounts were not reduced to their present value. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Includes
lump-sum cash amounts equal to the sum of one times base salary; one times the 2014 matching amounts in the Nationwide Savings Plan and Nationwide Supplemental Defined Contribution Plan; one times the 2014 short-term incentive bonus; one times the
annual COBRA rate, grossed up for FICA and income taxes, in effect at the time of termination for Mr. Carter and his family. The amounts were not reduced to their present value. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Eric S. Henderson</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:29.04%;">Benefits
 and payments<BR> upon termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.50%;">Voluntary
 termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:18.95%;">Termination
 without cause </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:center;text-decoration:none;text-transform:none;vertical-align:bottom;width:15.66%;">For
 cause termination </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:center; text-decoration:none;text-transform:none;vertical-align:bottom;width:13.97%;">Death,
 disability,<BR> or retirement </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Short-term
incentives:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:15.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:18.95%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:15.66%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:4.38pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:4.38pt;text-align:center;vertical-align:bottom;width:13.97%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Annual
incentive<SUP style="font-size:85%;vertical-align:text-top;">1</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>185,565 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>185,565 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Long-term
incentives:</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:15.50%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:18.95%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:15.66%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="padding-bottom:3pt;padding-top:3pt;text-align:center;vertical-align:bottom;width:13.97%;">&#160; </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 12-14
award<SUP style="font-size:85%;vertical-align:text-top;">2</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$365,574
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>365,574 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>365,574 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 13-15
award<SUP style="font-size:85%;vertical-align:text-top;">3</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>185,894 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:7.50pt;"></FONT>185,894 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">LTPP 14-16
award<SUP style="font-size:85%;vertical-align:text-top;">3</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:12.51pt;"></FONT>89,466 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:12.51pt;"></FONT>89,466 </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Life insurance
proceeds</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$1,696,356
 </TD></TR>
<TR bgcolor="#DEE9F6">
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Cash
severance<SUP style="font-size:85%;vertical-align:text-top;">4</SUP></DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;"
noshade="noshade">
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$
<FONT style="padding-left:27.51pt;"></FONT>&#8211; </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$
<FONT style="padding-left:7.50pt;"></FONT>325,199 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:3pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:3pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$
<FONT style="padding-left:35.02pt;"></FONT>&#8211; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:bold;line-height:12pt;padding-bottom:6pt;padding-left:0pt;padding-right:6pt;padding-top:3pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:bottom;width:29.04%;">
<DIV style="float:left;">Total
compensation</DIV><HR style="background-color:transparent;border-bottom:dotted medium Black;border-left:transparent;border-right:transparent;border-top:transparent;margin-bottom:-4pt;margin-top:4pt;padding-top:2pt;vertical-align:auto;" noshade="noshade">
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:15.50%;">$365,574
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;width:18.95%;">$1,151,698
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-right:6pt;padding-top:3pt;text-align:center;text-decoration:none; text-transform:none;vertical-align:bottom;white-space:nowrap;width:15.66%;">$&#8211;
 </TD>
<TD style="padding-bottom:6pt;padding-right:6pt;padding-top:3pt;text-align:center;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:6pt;padding-left:6pt;padding-top:3pt;text-align:center;text-decoration:none;text-transform:none; vertical-align:bottom;width:13.97%;">$2,522,855
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">1</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Henderson would receive with respect to the 2014 short-term incentive payment under the PIP upon a termination of employment, except for cause, on December 31, 2014. Mr. Henderson would not be eligible to receive a PIP award payment upon a voluntary
termination on December 31, 2014. The PIP requires that plan participants be employed on the date PIP awards are paid. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">2</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Reflects the amount Mr.
Henderson would receive with respect to the 2012-2014 awards under the LTPP upon a termination of employment, except for cause, on December 31, 2014. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:2.77%;">
<SUP style="font-size:85%;vertical-align:text-top;">3</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:97.23%;">Reflects
the amount Mr. Henderson would receive with respect to the 2013-2015 and 2014-2016 operating revenue growth/capital strength awards under the LTPP upon termination without cause or due to substantial reorganization, or for death, disability or
retirement (not eligible), on December 31, 2014. Mr. Henderson would not have qualified for retirement under the LTPP and would forfeit the target award opportunity granted in the year of termination unless termination is due to death or disability
or if the termination is without cause. Accordingly, the amounts shown assume a two-thirds distribution of the total 2013-2015 award, which would have been paid in 2016, and a one-third distribution of the total 2014-2016 award, which would have
been paid in 2017, using a performance score that was estimated as of December 31, 2014. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:4pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:2.77%;"><SUP
 style="font-size:85%;vertical-align:text-top;">4</SUP> </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Includes an estimate of the
amount we would pay under the severance plan guidelines for executives described above. For purposes of this table, we assumed a payment based on twelve months of base salary and $6,800, in lieu of outplacement services. </TD></TR></TABLE> </DIV>
<DIV style="margin-bottom:2pt;margin-top:2pt;text-align:left;"></DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">Director Compensation for 2014</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We do not separately compensate members of our board of
directors who are also our employees or employees of our affiliates, for their service on our board of directors. As Nationwide employees, our directors receive no additional compensation for service on our board of directors.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">Compensation Policies and Practices as they Relate to Risk
Management</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We believe that our compensation programs do
not provide incentives for excessive risk taking and do not lead to risks that are reasonably likely to have a material adverse effect on the company.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AND RELATED STOCKHOLDER MATTERS</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table sets
forth certain information regarding beneficial ownership as of March 1, 2013, of the holders of our common stock. Our directors and executive officers do not beneficially own any of our common stock.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-79</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <A name="50179f4b-97cc-47b9-930c-435f8406354e_80"></A> <DIV style="font-family:Arial;font-size:7pt;line-height:10pt;font-weight:Normal;text-transform:none;text-align:left;vertical-align:bottom;padding-bottom:10pt;"><A href="#toc">Table
 of Contents</A></DIV> <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Common Stock</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The following table sets forth the number of issued and
outstanding shares of our common stock owned by each person or entity known by us to be the beneficial owner of more than five percent of such common stock.</DIV> <DIV style="text-align:center;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-right:auto;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:0pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:30.96%;">Name
 and address<BR> of beneficial owner </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-right:6pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:bottom;width:32.07%;">Amount
 and nature of<BR> beneficial ownership </TD>
<TD style="padding-bottom:2pt;padding-right:6pt;padding-top:3pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="border-bottom:0.75pt solid #000000;color:#000000;font-family:Arial;font-size:8pt;font-style:Normal;font-weight:bold;line-height:11pt;padding-bottom:2pt;padding-left:6pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:bottom;width:34.07%;">Percent
 of class </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:0pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:30.96%;">Nationwide
 Financial Services, Inc.<BR> 1 Nationwide Plaza<BR> Columbus, Ohio 43215<BR> </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-right:6pt;padding-top:4.38pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:32.07%;">3,814,779
 shares </TD>
<TD style="padding-bottom:8pt;padding-right:6pt;padding-top:4.38pt;text-align:left;vertical-align:top;width:2.00%;">&#160; </TD>
<TD style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:8pt;padding-left:6pt;padding-top:4.38pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:34.07%;">100%
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">License to Use Nationwide Name and Service
Marks</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">We have a license to use the "Nationwide" trade
name and certain other service marks solely for the purpose of identifying and advertising our long-term savings and retirement business and related activities.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Nationwide Mutual Agents</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">NMIC allows us to distribute our variable annuity, fixed
annuity and individual universal, variable and traditional life insurance products through NMIC agents.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">See Note 15 to the audited consolidated financial statements
included in the F pages of this report for a discussion of related party transactions.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:left;text-decoration:none;text-transform:none;">Policies and Procedures for Review and Approval of Related
Person Transactions</DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">We have a written
conflict of interests policy that is administered by the Office of Ethics. All executive officers and directors are subject to the policy, which is designed to cover related persons transactions with executive officers, directors and their immediate
family members. The policy prohibits:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="4" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">using position at Nationwide
or affiliation with any Nationwide company for personal gain or advantage; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">any interest or association
that interferes with independent exercise of judgment in the best interest of Nationwide; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">directly
or indirectly having any position with or substantial interest in any business or property or engaging in any employment or other activity, which takes time and attention away from performance of Nationwide job duties. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-bottom:2pt;margin-top:2pt;text-align:left;text-decoration:none;text-transform:none;">We require our executive officers and
directors to annually complete a conflict of interests certificate. This certificate requires the executive officers and directors to represent that they have read the conflict of interests policy and disclose any conflicts of interests. It also
requires the completion of an outside business activities questionnaire. Each reported possible conflict of interest is reviewed by the Office of Ethics and addressed by appropriate action. The Office of Ethics submits an annual summary report
covering each reported conflict of interest an executive officer or director reports and the disposition of each matter to the board of directors.</DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;">A-80</DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>


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<IMG SRC="g896218snap1.jpg" ALT="LOGO">
</TD>
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<TD VALIGN="bottom"><B>KPMG LLP</B></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
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<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B></B>Suite 500</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">191 West Nationwide
Blvd.</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Columbus, OH 43215-2568</P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Report of Independent Registered Public Accounting Firm </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Board of Directors and Shareholder </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Nationwide Life
Insurance Company: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We have audited the accompanying consolidated balance sheets of Nationwide Life Insurance Company and subsidiaries (the Company) as of
December&nbsp;31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December&nbsp;31, 2014. In connection with our audits of the
consolidated financial statements, we also have audited the financial statement schedules as listed in the accompanying table of contents. These consolidated financial statements and financial statement schedules are the responsibility of the
Company&#146;s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for
our opinion. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of
Nationwide Life Insurance Company and&nbsp;subsidiaries as of December&nbsp;31, 2014 and 2013, and the results of their operations and their cash flows for each of the years in the three-year period ended December&nbsp;31, 2014, in conformity with
U.S.&nbsp;generally accepted accounting principles. Also in our opinion, the related financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material
respects, the information set forth therein. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:54%; text-indent:-2%; font-size:10pt; font-family:Times New Roman">/s/ KPMG LLP </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Columbus, Ohio </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February 25, 2015 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:39%; text-indent:-2%; font-size:10pt; font-family:Times New Roman">KPMG LLP is a Delaware limited liability partnership, the U.S. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:39%; text-indent:-2%; font-size:10pt; font-family:Times New Roman">member firm of KPMG International Cooperative (&#147;KPMG </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:39%; text-indent:-2%; font-size:10pt; font-family:Times New Roman">International&#148;), a Swiss entity. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-1 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Consolidated Statements of Operations </B></P>
 <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="82%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Year ended December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Revenues</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy charges</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,065</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,849</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,670</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Premiums</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">831</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">724</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">635</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net investment income</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,900</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,849</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,825</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net realized investment (losses) gains, including other-than-temporary impairment losses</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1,078</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">678</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">319</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other revenues</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">11</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">17</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">7</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total revenues</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,729</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5,117</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,456</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Benefits and expenses</B></P></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 BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Interest credited to policyholder account values</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,096</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,067</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,038</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Benefits and claims</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,502</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,354</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,227</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortization of deferred policy acquisition costs</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">207</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">374</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">575</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other expenses, net of deferrals</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,055</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">981</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">917</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total benefits and expenses</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,860</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,776</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,757</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>(Loss) income before federal income taxes and noncontrolling interests</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(131</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,341</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">699</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Federal income tax (benefit) expense</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(147</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">313</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">99</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net income</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,028</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">600</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Less: Loss attributable to noncontrolling interest, net of tax</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(94</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(82</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(61</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net income attributable to Nationwide Life Insurance Company</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">110</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,110</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">661</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">See accompanying notes to consolidated financial statements. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-2 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Consolidated Statements of Comprehensive Income </B></P>
 <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="83%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Year ended December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net income</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,028</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">600</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Other comprehensive income (loss), net of tax</B></P></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 BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Changes in:</P></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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net unrealized gains (losses) on available-for-sale securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">435</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(663</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">571</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">27</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(7</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(5</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total other comprehensive income (loss), net of tax</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">462</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(670</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">566</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total comprehensive income</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">478</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">358</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,166</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Less: Comprehensive loss attributable to noncontrolling interests, net of tax</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(94</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(82</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(61</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total comprehensive income attributable to Nationwide Life Insurance Company</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">572</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">440</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,227</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">See accompanying notes to consolidated financial statements. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-3 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Consolidated Balance Sheets </B></P>
 <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="84%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:170.15pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions, except for share and per share amounts)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Assets</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Investments:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities, available-for-sale</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35,418</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">32,249</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Mortgage loans, net of allowance</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">7,270</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6,341</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy loans</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">992</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">987</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Short-term investments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">935</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">411</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other investments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">822</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">767</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total investments</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">45,437</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">40,755</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Cash and cash equivalents</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">77</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">61</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Accrued investment income</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">670</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">603</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Deferred policy acquisition costs</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,063</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,778</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Goodwill</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other assets</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5,001</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,979</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Separate account assets</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">88,076</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">84,069</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total assets</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">143,524</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">133,445</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Liabilities and equity</B></P></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 BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Liabilities</B></P></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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Future policy benefits and claims</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">40,730</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36,765</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Short-term debt</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">660</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">278</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Long-term debt</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">709</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">707</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other liabilities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5,313</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,122</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Separate account liabilities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">88,076</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">84,069</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total liabilities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">135,488</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">125,941</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Shareholder&#146;s equity</B></P></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 BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Common stock ($1 par value; authorized - 5,000,000 shares, issued and outstanding - 3,814,779 shares)</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Additional paid-in capital</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,718</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,718</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Retained earnings</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,630</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,520</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Accumulated other comprehensive income</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,044</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">582</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total shareholder&#146;s equity</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,396</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,824</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Noncontrolling interests</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">640</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">680</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total equity</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">8,036</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,504</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total liabilities and equity</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">143,524</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">133,445</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">See accompanying notes to consolidated financial statements. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-4 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Consolidated Statements of Equity </B></P>
 <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


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<TD></TD>
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<TD></TD>
<TD></TD>
<TD></TD>
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<TD></TD>
<TD></TD>
<TD></TD>
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<TD></TD>
<TD></TD>
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<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Common<BR>stock</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Additional<BR>paid-in<BR>capital</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Retained<BR>earnings</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Accumulated<BR>other<BR>comprehensive<BR>income</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Total<BR>shareholder&#146;s<BR>equity</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Non-controlling<BR>interest</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Total<BR>equity</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance as of December&nbsp;31, 2011</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,718</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,789</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">686</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5,197</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">345</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5,542</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Cash dividend paid</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(40</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(40</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(40</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Comprehensive income (loss):</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net income (loss)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">661</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">661</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(61</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">600</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other comprehensive income</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">566</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">566</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">566</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total comprehensive income (loss)</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">661</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">566</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,227</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(61</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,166</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Change in noncontrolling interest</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">63</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">63</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance as of December&nbsp;31, 2012</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,718</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,410</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,252</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,384</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">347</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,731</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Comprehensive income (loss):</P></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>
<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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net income (loss)</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,110</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,110</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(82</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,028</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other comprehensive loss</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(670</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(670</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(670</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total comprehensive income (loss)</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,110</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(670</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">440</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(82</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">358</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Change in noncontrolling interest</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">415</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">415</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance as of December&nbsp;31, 2013</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,718</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,520</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">582</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,824</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">680</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,504</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Comprehensive income (loss):</P></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>
<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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net income (loss)</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">110</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">110</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(94</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other comprehensive income</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">462</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">462</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">462</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total comprehensive income (loss)</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">110</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">462</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">572</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(94</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">478</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Change in noncontrolling interest</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">54</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">54</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance as of December&nbsp;31, 2014</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,718</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,630</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,044</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,396</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">640</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">8,036</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">See accompanying notes to consolidated financial statements. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-5 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Consolidated Statements of Cash Flows </B></P>
 <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="82%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Year ended December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Cash flows from operating activities</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net income</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,028</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">600</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Adjustments to net income:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net realized investment losses (gains), including other-than-temporary impairment losses</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,078</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(678</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(319</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Interest credited to policyholder account values</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,096</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,067</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,038</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Capitalization of deferred policy acquisition costs</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(685</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(604</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(470</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortization of deferred policy acquisition costs</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">207</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">374</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">575</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortization and depreciation</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">128</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">77</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">80</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Deferred tax (benefit) expense</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(152</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">346</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">243</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Changes in:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy liabilities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(421</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(475</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(548</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivatives, net</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(181</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(483</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(490</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other, net</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(59</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">88</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(84</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net cash provided by operating activities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,027</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">740</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">625</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Cash flows from investing activities</B></P></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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Proceeds from maturities of available-for-sale securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,798</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,689</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,909</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Proceeds from sales of available-for-sale securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">647</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,091</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">796</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Purchases of available-for-sale securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(5,640</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(6,842</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(5,167</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Proceeds from repayments and sales of mortgage loans</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">920</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,091</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,048</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Issuances and purchases of mortgage loans</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1,837</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1,593</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1,114</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net (increase) decrease in short-term investments</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(524</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">654</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">98</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Collateral received (paid), net</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">399</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(637</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(208</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other, net</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(94</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">42</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(12</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net cash used in investing activities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(3,331</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(2,505</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,650</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Cash flows from financing activities</B></P></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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net change in short-term debt</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">382</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(22</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(477</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Proceeds from issuance of long-term debt</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">13</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Cash dividend paid to Nationwide Financial Services, Inc.</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(40</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Repayments of long-term debt</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(299</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Investment and universal life insurance product deposits</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6,037</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6,139</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5,566</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Investment and universal life insurance product withdrawals</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(4,095</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(4,034</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(4,063</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other, net</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(4</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(22</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">39</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net cash provided by financing activities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,320</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,764</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,038</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net increase (decrease) in cash and cash equivalents</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">13</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Cash and cash equivalents at beginning of year</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">61</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">62</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">49</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Cash and cash equivalents at end of year</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">77</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">61</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">62</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">See accompanying notes to consolidated financial statements. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-6 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December&nbsp;31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(1)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Nature of Operations </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Nationwide Life Insurance Company (&#147;NLIC,&#148; or collectively with its subsidiaries, &#147;the Company&#148;) was
incorporated in 1929 and is an Ohio domiciled stock life insurance company. The Company is a member of the Nationwide group of companies (&#147;Nationwide&#148;), which is comprised of Nationwide Mutual Insurance Company (&#147;NMIC&#148;) and all
of its subsidiaries and affiliates. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">All of the outstanding shares of NLIC&#146;s common stock are owned by Nationwide Financial Services,
Inc. (&#147;NFS&#148;), a holding company formed by Nationwide Corporation (&#147;Nationwide Corp.&#148;), a majority-owned subsidiary of NMIC. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company is a leading provider of long-term savings and retirement products in the United States of America (&#147;U.S.&#148;). The Company
develops and sells a diverse range of products and services including individual annuities, private and public sector group retirement plans, investment products sold to institutions, life insurance and advisory services. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company sells its products through a diverse distribution network. Unaffiliated entities that sell the Company&#146;s products to their own
customer bases include independent broker-dealers, financial institutions, wirehouse and regional firms, pension plan administrators and life insurance specialists. Representatives of affiliates who market products directly to a customer base
include Nationwide Retirement Solutions, Inc. (&#147;NRS&#148;) and Nationwide Financial Network (&#147;NFN&#148;) producers, which includes the agency distribution force of the Company&#146;s ultimate parent company, NMIC. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Wholly-owned subsidiaries of NLIC as of December&nbsp;31, 2014 include Nationwide Life and Annuity Insurance Company (&#147;NLAIC&#148;),
Nationwide Investment Services Corporation (&#147;NISC&#148;) and Nationwide Investment Advisor (&#147;NIA&#148;). NLAIC primarily offers universal life insurance, variable universal life insurance, term life insurance, corporate-owned life
insurance (&#147;COLI&#148;) and individual annuity contracts on a non-participating basis. NISC is a registered broker-dealer. NIA is a registered investment advisor. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">As of December&nbsp;31, 2014 and 2013, the Company did not have a significant concentration of financial instruments in a single investee,
industry or geographic region of the U.S. Also, the Company did not have a concentration of business transactions with a particular customer, lender, distribution source, market or geographic region of the U.S. in which the Company is overly
vulnerable to a single event which could cause a severe impact on the Company&#146;s financial position. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(2)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Summary of Significant Accounting Policies </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Basis of Presentation </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The consolidated financial statements include the accounts of NLIC and companies in which NLIC directly or indirectly has a controlling
financial interest. The consolidated financial statements include majority-owned subsidiaries and consolidated variable interest entities (&#147;VIEs&#148;). All significant intercompany accounts and transactions have been eliminated. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Entities in which NLIC does not have a controlling interest, but the Company has significant influence over the operating and financing
decisions, and also certain other investments, are reported using the equity method. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Use of Estimates </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S.
(&#147;GAAP&#148;). The preparation of the consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying
notes. Significant estimates include the balance and amortization of deferred policy acquisition costs (&#147;DAC&#148;), legal and regulatory reserves, certain investment and derivative valuations, future policy benefits and claims including the
valuation of embedded derivatives resulting from living benefit guarantees on variable annuity contracts, goodwill, provision for income taxes and valuation of deferred tax assets. Actual results could differ significantly from those estimates. </P>

 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-7 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Revenues and Benefits </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Investment and universal life insurance products.</I> Investment products are long-duration contracts that do not subject the Company to
significant risk arising from mortality (the incidence of death) or morbidity (the incidence of disability resulting from disease or physical impairment). These include variable and fixed deferred annuity contracts in the accumulation phase with
both individuals and groups, as well as certain annuities without life contingencies. Universal life insurance products include long-duration insurance contracts that do not have fixed or guaranteed terms. These include universal life insurance,
variable universal life insurance, COLI, bank-owned life insurance (&#147;BOLI&#148;) and other interest-sensitive life insurance policies. Revenues for investment products and universal life insurance products consist of net investment income,
surrender charges and other policy charges earned and assessed against policy account balances during the period. Policy charges are assessed on a daily or monthly basis and are recognized as revenue when assessed and earned. Assessments for
services provided in future periods are recorded as unearned revenue and recognized as revenue over the periods benefited. Surrender charges are recognized as revenue upon surrender of a contract in accordance with contractual terms. Policy benefits
and claims that are charged to expense include interest credited to policyholder accounts and benefits and claims incurred in the period in excess of related policyholder accounts. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Traditional life insurance products.</I> Traditional life insurance products include those products with fixed and guaranteed terms,
primarily consisting of whole life insurance, term life insurance and certain annuities with life contingencies. Premiums for traditional life insurance products are generally recognized as revenue when due. For certain annuities with life
contingencies, any excess of gross premium over the net premium is deferred and recognized with the amount of expected future benefits. Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the
contract. This association is accomplished through the provision for future policy benefits and the deferral and amortization of policy acquisition costs. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Future Policy Benefits and Claims </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Investment and universal life insurance products.</I> The Company calculates its liability for future policy benefits and claims for
investment products in the accumulation phase and for universal life insurance policies at the policy accrued account balance, which represents participants&#146; net deposits adjusted for investment performance, interest credited and applicable
contract charges. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company offers certain universal life insurance and variable universal life insurance with no-lapse guarantees and
variable annuity products with guaranteed minimum death benefits (&#147;GMDB&#148;) and/or guaranteed minimum income benefits (&#147;GMIB&#148;). Liabilities for these guarantees are calculated by multiplying the current benefit ratio by the
cumulative assessments recorded from contract inception through the balance sheet date less the cumulative guaranteed benefit payments plus interest. The Company annually evaluates its experience and assumptions and adjusts the benefit ratio as
appropriate. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes with a related charge or credit to other benefits and claims in the period of evaluation. Determination of the expected
benefit payments and assessments are based on a range of scenarios and assumptions, including those related to market rates of return and volatility, contract surrenders and mortality experience. The accounting for these guarantees impacts estimated
gross profits used to calculate the balance and amortization of DAC and other expenses. Refer to Note 4 for further discussion of these guarantees. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Guarantees to variable annuity contractholders can include a return of no less than the total deposits made on the contract less any customer
withdrawals, total deposits made on the contract less any customer withdrawals plus a minimum return, or the highest contract value on a specified anniversary date minus any customer withdrawals following the contract anniversary. In addition, these
guarantees can include benefits payable in the event of death, upon annuitization, upon periodic withdrawal or at specified dates during the accumulation period. Refer to Note 4 for further discussion of these guarantees. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-8 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s guaranteed minimum accumulation benefit (&#147;GMAB&#148;) and guaranteed
living withdrawal benefit (&#147;GLWB&#148;) living benefit guarantees represent embedded derivatives in variable annuity contracts that are required to be separated from, and valued apart from, the host variable annuity contracts. The embedded
derivatives are held at fair value and include the present value of attributed fees. Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of net realized investment gains and losses. The fair
value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous assumptions including, but not
limited to, mortality, lapse rates, index volatility, benefit utilization and discounting. Benefit utilization includes wait period (the number of years the policyholder is assumed to wait prior to beginning withdrawals once eligible) and efficiency
of benefit utilization (the percent of the maximum permitted withdrawal that a policyholder takes). Discounting includes liquidity and non-performance risk (the risk that the liability will not be fulfilled) and affects the value at which the
liability is transferred. The assumptions used to calculate the fair value of embedded derivatives are reviewed as part of an annual comprehensive study of assumptions. Quarterly, consideration is given as to whether adjustments to these assumptions
are necessary. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s equity indexed products (life and annuity) have the policyholders&#146; interest credits based on market
performance with caps and floors. The interest credits represent embedded derivatives within the insurance contract and therefore are required to be separated from, and valued apart from, the host contracts. The embedded derivatives are held at fair
value. Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of interest credited. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial
assumptions. Projections of cash flows inherent in the valuation of the embedded derivative incorporate numerous assumptions including, but not limited to, mortality, lapse rates and index volatility. The assumptions used to calculate the fair value
of embedded derivatives are reviewed as part of an annual comprehensive study of assumptions. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Traditional life insurance products.</I> The process of calculating reserve amounts for traditional life insurance products involves the use
of a number of assumptions, including those related to persistency, mortality, morbidity, interest rates (the rates expected to be paid or received on financial instruments) and certain other expenses. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The liability for future policy benefits and claims for traditional life insurance policies was determined using the net level premium method,
with weighted average interest rates of 6.6% and estimates of mortality, morbidity, investment yields and persistency that were used or being experienced at the time the policies were issued, with a provision for adverse deviation. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The liability for future policy benefits for certain annuities with life contingencies was calculated using the present value of future
benefits and certain expenses, discounted using weighted average interest rates of 4.8% with a provision for adverse deviation. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The
Company issues fixed and floating rate funding agreements to the Federal Home Loan Bank of Cincinnati (&#147;FHLB&#148;). The liability for such funding agreements is recorded in future policy benefits and claims at amortized cost. The amount of
collateralized funding agreements outstanding with the FHLB as of December&nbsp;31, 2014 and 2013 was $1.8 billion and $913 million, respectively. In connection with an FHLB requirement for funding agreements, the Company held $35 million and $18
million of FHLB stock as of December&nbsp;31, 2014 and 2013, respectively. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Reinsurance ceded </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company cedes insurance to other companies in order to limit potential losses and to diversify its exposures. Such agreements do not
relieve the original insurer from its primary obligation to the policyholder in the event the reinsurer is unable to meet the obligations it has assumed. Reinsurance premiums ceded and reinsurance recoveries on benefits and claims incurred are
deducted from the respective income and expense accounts. Assets and liabilities related to reinsurance ceded are reported in the consolidated balance sheets on a gross basis, separately from the related future policy benefits and claims of the
Company. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Deferred Policy Acquisition Costs </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company has deferred certain acquisition costs that are directly related to the successful acquisition of new and renewal insurance and
investment contracts. The methods and assumptions used to amortize and assess recoverability of the DAC balance depend on the type of product. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-9 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Investment and universal life insurance products.</I> For certain investment and universal
life insurance products, DAC is amortized with interest over the lives of the policies in relation to the present value of estimated gross profits, which is determined primarily from projected interest margins, policy charges and net realized
investment gains and losses, less policy benefits and other expenses. The DAC asset related to investment and universal life insurance products is adjusted to reflect the impact of unrealized gains and losses on available-for-sale securities, with
the corresponding adjustment recorded in accumulated other comprehensive income (&#147;AOCI&#148;). This adjustment to DAC represents the change in amortization that would have been required as a charge or credit to operations had such unrealized
amounts been realized. DAC for investment and universal life insurance products is subject to recoverability testing in the year of policy issuance, and DAC for universal life insurance products is also subject to loss recognition testing at the end
of each reporting period. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company regularly evaluates and adjusts the DAC balance when actual gross profits in a given reporting
period vary from management&#146;s initial estimates. Additionally, the assumptions used in the estimation of gross profits are based on the Company&#146;s current best estimates of future events and are reviewed as part of an annual process. During
the annual process, the Company performs a comprehensive study of assumptions, including mortality and persistency studies, maintenance expense studies and an evaluation of projected general and separate account investment returns. The most
significant assumptions that are involved in the estimation of future gross profits include future net separate account investment performance, surrender/lapse rates, interest margins, renewal premiums and mortality. The Company refers to this
process as &#147;unlocking.&#148; Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. The Company uses a reversion to the mean process to determine the assumption for the future net separate account
investment performance. This process assumes different performance levels over the next three years, such that the separate account mean return, measured from the anchor date to the end of the life of the product, equals the long-term assumption.
The Company&#146;s long-term assumptions for net separate account investment performance consist of assumed gross returns of 10.5% for equity funds and 5.0% for fixed funds. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Changes in assumptions and the emergence of actual gross profits can have a significant impact on the amount of DAC reported for investment and
universal life insurance products and their related amortization patterns. Additionally, the amortization of DAC can be affected by the change in the valuation of the Company&#146;s variable annuity guarantees. See <I>Future Policy Benefits and
Claims</I> for further discussion of the valuation of the Company&#146;s variable annuity guarantees. In the event actual experience differs from assumptions or future assumptions are revised, the Company will record an increase or decrease in DAC
amortization expense, which could be significant. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Traditional life insurance.</I> DAC is amortized with interest over the <FONT
STYLE="white-space:nowrap">premium-paying</FONT> period of the related policies in proportion to premium revenue recognized. These assumptions are consistent with those used in the calculation of liabilities for future policy benefits at issuance.
DAC is evaluated for recoverability at the time of policy issuance, and loss recognition testing is conducted each reporting period. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Refer
to Note 5 for discussion regarding assumption changes impacting DAC amortization and related balances. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Investments </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Available-for-sale securities</I>. <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">Available-for-sale</FONT></FONT>
securities are reported at fair value, with unrealized holding gains and losses reported as a separate component of other comprehensive income, net of adjustments for DAC and other expenses, future policy benefits and claims, policyholder dividend
obligations and deferred federal income taxes. Realized gains and losses on sales of available-for-sale securities are recognized in income based on the specific identification method. Interest and dividend income is recognized when earned. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">As of December&nbsp;31, 2014 and 2013, 99% of fixed maturity securities were priced using external source data. Independent pricing services
are most often utilized (87% and 86% as of December&nbsp;31, 2014 and 2013, respectively) to determine the fair value of securities for which market quotations are available. For these securities, the Company obtains the pricing services&#146;
methodologies, inputs and assumptions and classifies the investments accordingly in the fair value hierarchy. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">A corporate pricing matrix
is used in valuing certain corporate debt securities. The corporate pricing matrix is developed using private spreads for corporate securities with varying weighted average lives and credit quality ratings. The weighted average life and credit
quality rating of a particular fixed maturity security to be priced using the corporate pricing matrix are important inputs into the model and are used to determine a corresponding spread that is added to the appropriate U.S. Treasury yield to
create an estimated market yield for that security. The estimated market yield and other relevant factors are then used to estimate the fair value of the particular security. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-10 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Non-binding broker quotes are also utilized to determine the fair value of certain corporate
debt, mortgage-backed and other asset-backed securities when quotes are not available from independent pricing services, corporate pricing matrix or internal pricing models. These securities are classified with the lowest priority in the fair value
hierarchy as only one broker quote is ordinarily obtained, the investment is not traded on an exchange, the pricing is not available to other entities and/or the transaction volume in the same or similar investments has decreased. Inputs used in the
development of prices are not provided to the Company by the brokers, as the brokers often do not provide the necessary transparency into their quotes and methodologies. At least annually, the Company performs reviews and tests to ensure that quotes
are a reasonable estimate of the investments&#146; fair value. Price movements of broker quotes are subject to validation and require approval from the Company&#146;s management. Management uses its knowledge of the investment and current market
conditions to determine if the price is indicative of the investment&#146;s fair value. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">When the collectability of contractual interest
payments on fixed maturity securities is considered doubtful, such securities are placed in non-accrual status and any accrued interest is excluded from investment income. These securities are not restored to accrual status until the Company
determines that payment of future principal and interest is probable. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">For investments in certain residential and commercial
mortgage-backed securities, the Company recognizes income and amortizes discounts and premiums using the effective-yield method, based on prepayment assumptions and the estimated economic life of the securities. When actual prepayments differ
significantly from estimated prepayments, the effective-yield is recalculated to reflect actual payments to date and anticipated future payments. Any resulting adjustment is included in net investment income in the period the estimates are revised.
All other investment income is recorded using the effective-yield method without anticipating the impact of prepayments. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company
periodically reviews its available-for-sale securities to determine if any decline in fair value to below amortized cost is other-than-temporary. Factors considered in determining whether a decline is other-than-temporary include the length of time
a security has been in an unrealized loss position, the severity of the unrealized loss, reasons for the decline in value and expectations for the amount and timing of a recovery in fair value. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In assessing corporate debt securities for other-than-temporary impairment, the Company evaluates the ability of the issuer to meet its debt
obligations, the value of the company or specific collateral securing the debt, the Company&#146;s intent to sell the security and whether it is more likely than not the Company will be required to sell the security before the recovery of its
amortized cost basis. The Company evaluates U.S. government and agencies, as well as obligations of states, political subdivisions and foreign governments for other-than-temporary impairment by examining similar characteristics. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">When evaluating whether residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities are
other-than-temporarily impaired, the Company examines characteristics of the underlying collateral, such as delinquency and default rates, the quality of the underlying borrower, the type of collateral in the pool, the vintage year of the
collateral, subordination levels within the structure of the collateral pool, the quality of any credit guarantors, the Company&#146;s intent to sell the security and whether it is more likely than not it will be required to sell the security before
the recovery of its amortized cost basis. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company evaluates its intent to sell on an individual security basis. Other-than-temporary
impairment losses on securities when the Company does not intend to sell the security and it is not more likely than not it will be required to sell the security prior to recovery of the security&#146;s amortized cost basis are bifurcated, with the
credit portion of the impairment loss being recognized in earnings and the non-credit loss portion of the impairment and any subsequent changes in the fair value of those debt securities being recognized in other comprehensive income, net of
applicable taxes and other offsets. To estimate the credit portion of an impairment loss recognized in earnings, the Company considers the present value of the cash flows. To the extent that the present value of cash flows generated by a debt
security is less than the amortized cost, an other-than-temporary impairment is recognized through earnings. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">It is possible that further
declines in fair values of such investments, or changes in assumptions or estimates of anticipated recoveries and/or cash flows, may cause further other-than-temporary impairments in the near term, which could be significant. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Mortgage loans, net of allowance</I>. The Company holds commercial mortgage loans that are collateralized by properties throughout the U.S.
These mortgage loans are further segregated into the following classes based on the unique risk profiles of the underlying property types: office, industrial, retail, apartment and other. Mortgage loans held-for-investment are held at amortized cost
less a valuation allowance. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">As part of the underwriting process, specific guidelines are followed to ensure the initial quality of a new
mortgage loan. Third-party appraisals are generally obtained to support loaned amounts, as the loans are usually collateral dependent. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-11 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The collectability and value of a mortgage loan are based on the ability of the borrower to
repay and/or the value of the underlying collateral. Many of the Company&#146;s commercial mortgage loans are structured with balloon payment maturities, exposing the Company to risks associated with the borrowers&#146; ability to make the balloon
payment or refinance the property. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company actively monitors the credit quality of its mortgage loans to support the development of
the valuation allowance. This monitoring process includes quantitative analyses, which facilitate the identification of deteriorating loans, and qualitative analyses, which consider other factors relevant to the borrowers&#146; ability to repay.
Surveillance procedures identify loans with deteriorating credit fundamentals and these loans are evaluated based on the severity of their deterioration and management&#146;s judgment as to the likelihood of loss. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Mortgage loans require a loan-specific reserve when, based on current information and events, it is probable that the Company will be unable to
collect all amounts due according to the contractual terms of the loan agreement. When management determines that a loan requires a loan-specific reserve, a provision for loss is established equal to the difference between the carrying value and
either the fair value of the collateral less costs to sell or the present value of expected future cash flows discounted at the loan&#146;s market interest rate. Loan-specific reserve charges are recorded in net realized investment gains and losses.
In the event a loan-specific reserve charge is reversed, the recovery is also recorded in net realized investment gains and losses. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In
addition to the loan-specific reserves, the Company maintains a non-specific reserve based primarily on loan surveillance categories and property type classes, which reflects management&#146;s best estimate of probable credit losses inherent in the
portfolio of loans without specific reserves as of the balance sheet date. Management&#146;s periodic evaluation of the adequacy of the non-specific reserve is based on past loan loss experience, known and inherent risks in the portfolio, adverse
situations that may affect a borrower&#146;s ability to repay, the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Non-specific reserve changes are recorded in
net realized investment gains and losses. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Interest income on performing mortgage loans is recognized over the life of the loan using the
effective-yield method. Loans in default or in the process of foreclosure are placed on non-accrual status. Interest received on non-accrual status mortgage loans is included in net investment income in the period received. Loans are considered
delinquent when contractual payments are 90 days past due. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Policy loans</I>. Policy loans, which are collateralized by the related
insurance policy, are held at the outstanding principal balance and do not exceed the net cash surrender value of the policy. As such, no valuation allowance for policy loans is required. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Short-term investments</I>. Short-term investments consist primarily of highly liquid mutual funds and government agency discount notes with
maturities of twelve months or less at acquisition. The Company and various affiliates maintain agreements with Nationwide Cash Management Company (&#147;NCMC&#148;), an affiliate, under which NCMC acts as a common agent in handling the purchase and
sale of short-term securities for the respective accounts of the participants. Amounts on deposit with NCMC for the benefit of the Company are included in short-term investments on the consolidated balance sheets. The Company carries short-term
investments at fair value. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Other investments</I>. Other investments consist primarily of equity method investments in private equity,
hedge funds and partnerships, as well as COLI, trading securities, equity securities and capital stock with the FHLB. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Securities
lending</I>. The Company has entered into securities lending agreements with a custodial bank whereby eligible securities are loaned to third parties, primarily major brokerage firms. These transactions are used to generate additional income on the
securities portfolio. The Company is entitled to receive from the borrower any payments of interest and dividends received on loaned securities during the loan term. The agreements require a minimum of 102% of the fair value of loaned securities to
be held as collateral. Cash collateral is invested by the custodial bank in investment-grade securities, which are included in the total investments of the Company. Periodically, the Company may receive non-cash collateral, which would be recorded
off-balance sheet. The Company recognizes loaned securities in either available-for-sale or other investments. A securities lending payable is recorded in other liabilities for the amount of cash collateral received. Net income received from
securities lending activities is included in net investment income. As of December&nbsp;31, 2014 and 2013, the fair value of loaned securities was $254 million and $116 million, respectively. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Variable interest entities</I>. In the normal course of business, the Company has relationships with VIEs. If the Company determines that it
has a variable interest and is the primary beneficiary, it consolidates the VIE. The Company is the primary beneficiary if the Company has the power to direct the activities of the VIE that most significantly impact the economic performance of the
entity and the obligation to absorb losses or receive benefits from the entity that could be potentially significant to the VIE. This determination is based on a review of the entity&#146;s contract and other deal related information, such as the
entity&#146;s equity investment at risk, decision-making abilities, obligations to absorb economic risks and right to receive economic rewards of the entity. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-12 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The majority of the VIEs consolidated by the Company are due to guarantees provided to
limited partners related to the amount of tax credits that will be generated by Low-Income-Housing Tax Credit Funds (&#147;Tax Credit Funds&#148;). The results of operations and financial position of each VIE for which the Company is the primary
beneficiary, as well as the corresponding noncontrolling interests, are recorded in the consolidated financial statements. Ownership interests held by unrelated third parties in the consolidated VIEs are presented as noncontrolling interests in the
equity section of the consolidated financial statements. Losses attributable to noncontrolling interests are excluded from the net income attributable to NLIC on the consolidated statements of operations. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company invests in fixed maturity securities that could qualify as VIEs, including corporate securities, mortgage-backed securities and
asset-backed securities. The Company is not the primary beneficiary of these securities as the Company does not have the power to direct the activities that most significantly impact the entities&#146; performance. The Company&#146;s maximum
exposure to loss is limited to the carrying values of these securities. There are no liquidity arrangements, guarantees or other commitments by third parties that affect the fair value of the Company&#146;s interest in these assets. Refer to Note 6
for additional disclosures related to these investments. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company is not required and does not intend to provide financial or other
support outside of contractual requirements to any VIE. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Derivative Instruments </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company uses derivative instruments to manage exposures and mitigate risks primarily associated with interest rates, equity markets and
foreign currency. These derivative instruments primarily include interest rate swaps, futures contracts and options. Certain features embedded in the Company&#146;s indexed products and certain variable annuity contracts require derivative
accounting. Refer to the prior discussion of <I>Future Policy Benefits and Claims</I> for a description of the valuation applicable to these products. All derivative instruments are held at fair value and are reflected as assets or liabilities in
the consolidated balance sheets. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The fair value of derivative instruments is determined using various valuation techniques relying
predominantly on observable market inputs. These inputs include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels. In cases where observable inputs are not available, the
Company will utilize non-binding broker quotes to determine fair value, and these instruments are classified accordingly in the fair value hierarchy. Price movements of these broker quotes are subject to validation and require approval from the
Company&#146;s management. Management uses models to internally value the instruments for comparison to the values received through broker quotes. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">For derivatives that are not designated for hedge accounting, the gain or loss on the derivative is primarily recognized in net realized
investment gains and losses. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">For derivative instruments that are designated and qualify for fair value hedge accounting, the gain or loss
on the derivative instrument, as well as the hedged item to the extent of the risk being hedged, are recognized in net realized investment gains and losses. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">For derivative instruments that are designated and qualify for cash flow hedge accounting, the effective portion of the gain or loss on the
derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods that the hedged transaction impacts earnings. The ineffective portion of the derivative&#146;s change in value, if any, along with
any of the derivative&#146;s change in value that is excluded from the assessment of hedge effectiveness, are recorded in net realized investment gains and losses. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s derivative transaction counterparties are generally financial institutions. To reduce the credit risk associated with open
contracts, the Company enters into master netting agreements, which permit the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. In addition, the Company attempts to reduce credit risk by
obtaining collateral from counterparties. The determination of the need for and the levels of collateral vary based on an assessment of the credit risk of the counterparty. The Company accepts collateral in the form of cash and marketable
securities. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Fair Value Measurements </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company&#146;s
view of market assumptions in the absence of observable market information. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In determining fair value, the Company uses
various methods, including market and income approaches. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-13 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company categorizes its financial instruments into a three-level hierarchy based on the
priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the
inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company categorizes assets and liabilities held at fair value in the consolidated balance sheets as follows: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Level 1. Unadjusted quoted prices accessible in active markets for identical assets or liabilities at the measurement date and mutual funds
where the value per share (unit) is determined and published daily and is the basis for current transactions. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Level 2. Unadjusted quoted
prices for similar assets or liabilities in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means. Primary inputs to
this valuation technique may include comparative trades, bid/asks, interest rate movements, U.S. Treasury rates, London Interbank Offered Rate (&#147;LIBOR&#148;), prime rates, cash flows, maturity dates, call ability, estimated prepayments, and/or
underlying collateral values. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to
the overall fair value measurement. Inputs reflect management&#146;s best estimate about the assumptions market participants would use at the measurement date in pricing the asset or liability. Consideration is given to the risk inherent in both the
method of valuation and the valuation inputs. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company reviews its fair value hierarchy classifications for assets and liabilities
quarterly. Changes in the observability of significant valuation inputs identified during these reviews may trigger reclassifications. Reclassifications are reported as transfers at the beginning of the period in which the change occurs. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Fair Value Option </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company assesses the fair value option election for newly acquired assets or liabilities on a prospective basis. There are no material
assets or liabilities for which the Company has elected the fair value option. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Federal Income Taxes </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to
taxable income or loss in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period
that includes the enactment date. Valuation allowances are recorded to reduce a deferred tax asset to the amount expected to be realized. Interest expense and any associated penalties which relate to tax years still subject to review by the Internal
Revenue Service (&#147;IRS&#148;) are recorded as income tax expense. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company provides for federal income taxes based on amounts the
Company believes it ultimately will owe. Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits. In the event the ultimate deductibility of certain
items or the realization of certain tax credits differs from estimates, the Company may be required to change the provision for federal income taxes recorded in the consolidated financial statements, which could be significant. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Tax reserves are reviewed regularly and are adjusted as events occur that the Company believes impact its liability for additional taxes, such
as the lapsing of applicable statutes of limitations, conclusion of tax audits or substantial agreement with taxing authorities on the deductibility/nondeductibility of uncertain items, additional exposure based on current calculations,
identification of new issues, release of administrative guidance or rendering of a court decision affecting a particular tax issue. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">NLIC
files a separate consolidated federal income tax return with its subsidiaries and is eligible to join the NMIC consolidated tax return group in 2015. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Cash and Cash Equivalents </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Cash and cash equivalents include highly liquid investments with original maturities of less than three months. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-14 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Goodwill </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In connection with business acquisitions, the Company recognizes goodwill as the excess of the purchase price over the fair value of net assets
acquired as goodwill. Goodwill is not amortized, but is evaluated for impairment at the reporting unit level annually. Goodwill of a reporting unit is tested for impairment on an interim basis, in addition to the annual evaluation, if an event
occurs or circumstances change which would more likely than not reduce the fair value of a reporting unit below its carrying amount. If a reporting unit&#146;s fair value is less than its carrying value, the Company will calculate implied goodwill.
An impairment would be recognized on a reporting unit for the amount that the carrying value of its goodwill exceeds the implied value of its goodwill. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The process of evaluating goodwill for impairment requires several judgments and assumptions to be made to determine the fair value of the
reporting units, including the method used to determine fair value, discount rates, expected levels of cash flows, revenues and earnings, and the selection of comparable companies used to develop market-based assumptions. The Company performed its
2014 annual impairment test and determined that no impairment was required. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Closed Block </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In connection with the sponsored demutualization of Provident Mutual Life Insurance Company (&#147;Provident&#148;) prior to its acquisition by
the Company, Provident established a closed block for the benefit of certain classes of individual participating policies that had a dividend scale payable in 2001. Assets were allocated to the closed block in an amount that produces cash flows
which, together with anticipated revenues from closed block business, is reasonably expected to be sufficient to provide for (1)&nbsp;payment of policy benefits, specified expenses and taxes, and (2)&nbsp;the continuation of dividends throughout the
life of the Provident policies included in the closed block based upon the dividend scales payable for 2001, if the experience underlying such dividend scales continues. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Assets allocated to the closed block benefit only the holders of the policies included in the closed block and will not revert to the benefit
of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the closed block and other portions of the Company&#146;s general account, any of its separate accounts, or any affiliate of the Company without the
approval of the Pennsylvania Insurance Department and Ohio Department of Insurance (&#147;ODI&#148;). The closed block will remain in effect as long as any policy in the closed block is in force. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">If, over time, the aggregate performance of the closed block assets and policies is better than was assumed in funding the closed block,
dividends to policyholders will increase. If, over time, the aggregate performance of the closed block assets and policies is less favorable than was assumed in the funding, dividends to policyholders could be reduced. If the closed block has
insufficient funds to make guaranteed policy benefit payments, such payments will be made from the Company&#146;s assets outside of the closed block, which are general account assets. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The assets and liabilities allocated to the closed block are recorded in the Company&#146;s consolidated financial statements on the same basis
as other similar assets and liabilities. The carrying amount of closed block liabilities in excess of the carrying amount of closed block assets at the date Provident was acquired by the Company represents the maximum future earnings from the assets
and liabilities designated to the closed block that can be recognized in income, for the benefit of stockholders, over the period the policies in the closed block remain in force. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">If actual cumulative earnings exceed expected cumulative earnings, the expected earnings are recognized in income. This is because the excess
actual cumulative earnings over expected cumulative earnings, which represents undistributed accumulated earnings attributable to policyholders, is recorded as a policyholder dividend obligation. Therefore, the excess will be paid to closed block
policyholders as an additional policyholder dividend expense in the future unless it is otherwise offset by future performance of the closed block that is less favorable than originally expected. If actual cumulative performance is less favorable
than expected, actual earnings will be recognized in income. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The principal cash flow items that affect the amount of closed block assets
and liabilities are premiums, net investment income, purchases and sales of investments, policyholder benefits, policyholder dividends, premium taxes and income taxes. The principal income and expense items excluded from the closed block are
management and maintenance expenses, commissions and net investment income and realized gains and losses on investments held outside of the closed block that support the closed block business, all of which enter into the determination of total gross
margins of closed block policies. See Note 10 for further disclosure. </P> <P STYLE="margin-top:0pt;margin-bottom:0pt;page-break-before:always"></P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Separate Accounts </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Separate account assets and liabilities represent contractholders&#146; funds that have been legally segregated into accounts with specific
investment objectives. In the separate account, investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder. Separate account assets are primarily comprised of public, privately
registered and non-registered mutual funds. Separate account assets are recorded at fair value based on the methodology that would be applicable to the underlying assets. The value of separate account liabilities is set to equal the fair value for
separate account assets. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-15 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Participating Business </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Participating business, which refers to policies that participate in profits through policyholder dividends, represented approximately 4% of
the Company&#146;s life insurance in force in 2014 and 2013 and 5% in 2012 and 37% of the number of life insurance policies in force in 2014 (38% in 2013 and 40% in 2012). The provision for policyholder dividends was based on the respective
year&#146;s dividend scales and has been included in future policy benefits and claims in the consolidated balance sheets. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Subsequent Events </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company evaluated subsequent events through February&nbsp;25, 2015, the date the consolidated financial statements were issued. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(3)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Recently Issued Accounting Standards </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Adopted Accounting Standards </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">On January&nbsp;1, 2014, the Company adopted ASU 2013-04, which amends existing guidance in ASC 405, <I>Liabilities</I>. The ASU provides
guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The adoption of this guidance had no impact
on the Company&#146;s consolidated financial statements. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">On January&nbsp;1, 2014, the Company adopted ASU 2013-08, which amends existing
guidance in ASC 946, <I>Financial Services &#150; Investment Companies</I>. The amended guidance modifies the definition of investment companies and requires new disclosures around the status and operations of investment companies. In addition, the
guidance requires an investment company to measure its noncontrolling interests in another investment company at fair value rather than the equity method of accounting. The adoption of this guidance had no impact on the Company&#146;s consolidated
financial statements. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">On January&nbsp;1, 2014, the Company adopted ASU 2013-11, which amends existing guidance in ASC 740, <I>Income
Taxes</I>. The amended guidance provides clarification on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The adoption of this
guidance had no impact on the Company&#146;s consolidated financial statements. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Pending Accounting Standards </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In January 2014, the FASB issued ASU 2014-01, which amends existing guidance in ASC 323, <I>Equity Method and Joint Ventures</I>. The amended
guidance permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The Company will adopt the
ASU for interim and annual reporting periods beginning January&nbsp;1, 2015. The Company is currently in the process of determining the impact of adoption. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In January 2014, the FASB issued ASU 2014-04, which amends existing guidance in ASC 310, <I>Receivables </I>and ASC 360, <I>Property, Plant and
Equipment</I>. The amended guidance provides clarification on the accounting for situations in which a creditor obtains collateral assets in satisfaction of all or part of a receivable. The Company will adopt the ASU for interim and annual periods
beginning January&nbsp;1, 2015. The Company is currently in the process of determining the impact of adoption. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In May 2014, the FASB
issued ASU 2014-09, which amends existing guidance in ASC 606, <I>Revenue from Contracts with Customer</I>s and ASC 340, <I>Other Assets and Deferred Costs &#150; Contracts with Customers</I>. The amended guidance develops a single standard to
recognize revenue when the identified performance obligation is satisfied. The Company will adopt the ASU for interim and annual periods beginning January&nbsp;1, 2017. The Company is currently in the process of determining the impact of adoption.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In June 2014, the FASB issued ASU 2014-11, which amends existing guidance in ASC 860, <I>Transfers and Servicing</I>. The amended guidance
amends certain criteria when evaluating effective control in certain repurchase agreement transactions and eliminates specific guidance on repurchase financing and requires that these transactions be treated in the same manner as repurchase
transactions. Additionally, the amended guidance requires additional disclosures for repurchase agreements. The Company will adopt the ASU for interim and annual periods beginning January&nbsp;1, 2015. The Company is currently in the process of
determining the impact of adoption. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In August 2014, the FASB issued ASU 2014-14, which amends ASC 310, <I>Receivables</I>. The amended
guidance requires creditors to classify certain foreclosed government guaranteed mortgage loans as a receivable from the guarantor that is measured at the amount expected to be recovered under the guarantee, without treating the guarantee as a
separate unit of account. The Company will adopt the ASU for interim and annual periods beginning January&nbsp;1, 2015. The Company is currently in the process of determining the impact of adoption. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-16 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In November 2014, the FASB issued ASU 2014-17, which amends ASC 805, <I>Business
Combinations</I>. The amended guidance gives an acquired entity the option to apply pushdown accounting in its stand-alone financial statements. The Company will adopt the ASU for interim and annual periods beginning January&nbsp;1, 2015. The
Company is currently in the process of determining the impact of adoption. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(4)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Certain Long-Duration Contracts </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Variable Annuity Contracts </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Contractholder assets are invested in general and separate account investment options as directed by the contractholder. The Company issues
variable annuity contracts through its separate accounts. The Company also provides various forms of guarantees to benefit the related contractholders. The Company provides five primary guarantee types: (1)&nbsp;GMDB; (2)&nbsp;GLWB; (3)&nbsp;GMAB;
(4)&nbsp;a hybrid guarantee with GMAB and GLWB; and (5)&nbsp;GMIB. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The GMDB, offered on every variable annuity contract, provides a
specified minimum return upon death. Many of these death benefits are spousal, whereby a death benefit will be paid upon death of the first spouse. The survivor has the option to terminate the contract or continue it by having the death benefit paid
into the contract and having a second death benefit paid upon the survivor&#146;s death. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The GLWB, offered in the Company&#146;s Lifetime
Income products, are living benefits that provide for enhanced retirement income security without the liquidity loss associated with annuitization. The withdrawal rates vary based on the age when withdrawals begin and are applied to a benefit base
to determine the guaranteed lifetime income amount available to a contractholder. The benefit base is equal to the variable annuity premium at contract issuance and may increase as a result of a feature driven by account performance and policy
duration. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The GMAB, which was offered in the Company&#146;s Capital Preservation Plus product, is a living benefit that provides the
contractholder with a guaranteed return of deposits, adjusted proportionately for withdrawals, after a specified time period (5, 7 or 10 years) selected by the contractholder at the issuance of the variable annuity contract. In some cases, the
contractholder also has the option, after a specified time period, to drop the guarantee and continue the variable annuity contract without the GMAB. In general, the GMAB requires a minimum allocation to guaranteed term options or adherence to
limitations required by an approved asset allocation strategy. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The GMIB, which was offered with several variable annuity contracts, is a
living benefit that provides the contractholder with a guaranteed annuitization stream of income. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes
information regarding variable annuity contracts with guarantees invested in general and separate accounts, as of the dates indicated (a contract may contain multiple guarantees): </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="14" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31, 2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="14" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31, 2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.60pt; font-size:8pt; font-family:Times New Roman">(in millions)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">General<BR>account<BR>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Separate<BR>account<BR>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Net<BR>amount<BR>at risk<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Average<BR>age<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">General<BR>account<BR>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Separate<BR>account<BR>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Net<BR>amount<BR>at risk<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Average<BR>age<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Contracts with GMDB:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Return of net deposits</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">872</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">23,079</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">21</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">65</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">916</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">19,927</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">13</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">64</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Minimum return or anniversary contract value</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,918</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">33,662</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">292</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">69</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,031</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">33,520</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">237</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">69</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total contracts with GMDB</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,790</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">56,741</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">313</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">68</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,947</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">53,447</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">250</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">67</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">GLWB Minimum return or anniversary contract value</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">135</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">31,031</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">195</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">66</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">178</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">28,071</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">74</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">64</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">GMAB Return of net deposits<SUP STYLE="font-size:85%; vertical-align:top">3</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">43</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,552</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">67</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">92</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,383</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">64</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">GMIB Minimum return or anniversary contract value</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">45</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">451</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">66</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">49</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">510</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">64</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Net amount at risk is calculated on a policy-level basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit). </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Represents the weighted average attained age of contractholders. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">3</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Contracts with the hybrid accumulation/withdrawal benefits are included with the accumulation benefits contracts. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-17 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the reserve balances for guarantees on variable annuity
contracts, as of the dates indicated: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="68%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="81%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">GMDB</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">76</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">55</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">GLWB<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">174</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,075</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">GMAB<SUP STYLE="font-size:85%; vertical-align:top">1, 2</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(19</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">GMIB</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The changes in reserve balances for withdrawal benefits and accumulation benefits were primarily driven by declines in key interest rates, partially offset by rising equity markets during 2014. Refer to Note 7 for
discussion of the related derivative programs. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Contracts with the hybrid accumulation/withdrawal benefits are included with the accumulation benefits contracts. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Paid claims for GMDBs were $11 million and $22 million for the years ended December&nbsp;31, 2014 and 2013, respectively. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Paid claims for GLWBs, GMABs and GMIBs were immaterial for the years ended December&nbsp;31, 2014 and 2013. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the account balances of deferred variable annuity contracts with guarantees invested in separate accounts, as of
the dates indicated: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="68%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="78%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Mutual funds:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Bond</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5,280</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5,685</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Domestic equity</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">47,316</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">43,505</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">International equity</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,969</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,179</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total mutual funds</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">55,565</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">52,369</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Money market funds</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,176</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,078</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B><SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">56,741</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">53,447</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Excludes $31.3 billion and $30.6 billion as of December&nbsp;31, 2014 and 2013, respectively, of separate account assets not related to deferred variable annuity contracts with guarantees, primarily attributable to
retirement plan, variable universal life and COLI products. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company did not transfer any assets from the general account
to the separate account to cover guarantees for any of its variable annuity contracts during the years ended December&nbsp;31, 2014 and 2013. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Universal and Variable Universal Life Insurance Contracts </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company offers certain universal life and variable universal life insurance products with no-lapse guarantees. These no-lapse guarantees
provide that a policy will not lapse so long as the policyholder makes minimum premium payments. The reserve balances on these guarantees were $401 million and $325 million as of December&nbsp;31, 2014 and 2013, respectively. Paid claims on
contracts maintained in force by these guarantees were immaterial for the years ended December&nbsp;31, 2014 and 2013. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table
summarizes information regarding universal and variable universal life insurance contracts with no-lapse guarantees invested in general and separate accounts, as of the dates indicated: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="92%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="49%"></TD>
<TD VALIGN="bottom" WIDTH="9%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="9%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="9%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="9%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">General&nbsp;account<BR>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Separate&nbsp;account<BR>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Adjusted&nbsp;insurance<BR>in force<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Average&nbsp;age<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2014</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,954</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,191</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">41,484</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">51</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2013<SUP STYLE="font-size:85%; vertical-align:top">3</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,522</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,235</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36,956</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">51</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The adjusted insurance in force is calculated on a policy-level basis and equals the respective guaranteed death benefit less the account value. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Represents the weighted average attained age of contractholders. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">3</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Amounts above are based on all policies with no-lapse guarantees. Previously, only those policies with a no-lapse guarantee carrying a reserve were included in the disclosure. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-18 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>


<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(5)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Deferred Policy Acquisition Costs </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes changes in the DAC balance, as of the dates indicated: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="76%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="73%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Balance at beginning of year</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,778</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,249</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,487</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Capitalization of DAC</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">685</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">604</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">470</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortization of DAC, excluding unlocks</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(397</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(373</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(525</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortization of DAC related to unlocks</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">190</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(50</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Adjustments to DAC related to unrealized gains and losses on available-for-sale securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(193</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">299</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(133</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance at end of year</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,063</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,778</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,249</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">During 2014, the Company recognized a decrease in DAC amortization of $190 million as a result of the annual
comprehensive review of model assumptions and enhancements. The updated assumptions were primarily related to the actual performance of the block of business since the prior year review and the expectations for lapses, partially offset by an update
to the Company&#146;s long-term assumptions for separate account investment performance. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">During 2013, the net change in DAC amortization
as a result of the annual comprehensive review of model assumptions was immaterial. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">During 2012, the Company incurred additional DAC
amortization of $50 million as a result of the annual comprehensive review of model assumptions, as well as a deviation from equity market performance as compared to assumed net separate account returns. The updated assumptions were primarily
related to actual gross profits and the in force block of business deviating from expectations, renewal premiums, general account margins and lapses. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-19 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>


<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(6)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Investments </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Available-for-Sale Securities </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the amortized cost, unrealized gains and losses and fair value of available-for-sale securities, as of the dates
indicated: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="92%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="67%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Amortized<BR>cost</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Unrealized<BR>gains</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Unrealized<BR>losses</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Fair value</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2014</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">U.S. government and agencies</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">448</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">79</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">527</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Obligations of states, political subdivisions and foreign governments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,966</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">320</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,285</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate public securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">19,851</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,519</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">120</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">21,250</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate private securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,398</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">286</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">34</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,650</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Residential mortgage-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,694</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">190</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">45</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,839</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Commercial mortgage-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,431</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">74</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,502</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other asset-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,410</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">27</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">72</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,365</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total fixed maturity securities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">33,198</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,495</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">275</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35,418</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Equity securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">15</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">21</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total available-for-sale securities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">33,204</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,510</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">275</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35,439</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2013</P></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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities:</P></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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">U.S. government and agencies</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">484</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">79</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">561</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Obligations of states, political subdivisions and foreign governments</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,892</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">111</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">40</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,963</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate public securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">18,004</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,076</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">295</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">18,785</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate private securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,374</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">258</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">38</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,594</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Residential mortgage-backed securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,919</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">163</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">79</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,003</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Commercial mortgage-backed securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,439</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">86</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">21</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,504</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other asset-backed securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">890</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">77</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">839</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total fixed maturity securities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">31,002</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,799</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">552</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">32,249</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Equity securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">18</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">24</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total available-for-sale securities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">31,008</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,817</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">552</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">32,273</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The fair value of the Company&#146;s investments may fluctuate significantly in response to changes in interest
rates, investment quality ratings and credit spreads. The Company has the ability and intent to hold equity securities until recovery. The Company does not have the intent to sell, nor is it more likely than not it will be required to sell, debt
securities in an unrealized loss position. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-20 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the amortized cost and fair value of fixed maturity
securities, by contractual maturity, as of December&nbsp;31, 2014. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without early redemption penalties. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="76%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="78%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Amortized<BR>cost</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Fair<br>value</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Due in one year or less</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,018</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,037</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Due after one year through five years</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9,196</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9,898</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Due after five years through ten years</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">8,267</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">8,617</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Due after ten years</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">8,182</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9,160</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Subtotal</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">26,663</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">28,712</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Residential mortgage-backed securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,694</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,839</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Commercial mortgage-backed securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,431</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,502</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other asset-backed securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,410</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,365</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total fixed maturity securities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">33,198</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35,418</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes components of net unrealized gains and losses, as of the dates indicated: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="76%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="82%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net unrealized gains on available-for-sale securities, before adjustments, taxes and fair value hedging</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,235</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,265</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net unrealized gains on available-for-sale securities, before adjustments and
taxes</B><SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,235</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,265</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Adjustment to DAC and other expense</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(372</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(176</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Adjustment to future policy benefits and claims</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(159</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(89</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Adjustment to policyholder dividend obligation</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(120</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(85</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Deferred federal income tax expense</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(548</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(314</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net unrealized gains on available-for-sale securities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,036</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">601</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Includes net unrealized losses of $9 million and $40 million as of December&nbsp;31, 2014 and 2013, respectively, related to the non-credit portion of other-than-temporarily impaired securities. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the change in net unrealized gains and losses reported in accumulated other comprehensive income, for the years
ended: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="76%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="80%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Balance at beginning of year</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">601</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,264</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Unrealized gains and losses arising during the year:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net unrealized gains (losses) on available-for-sale securities before adjustments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">939</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1,657</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Non-credit impairments and subsequent changes in fair value of impaired debt securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">31</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">8</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net adjustment to DAC and other expense</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(196</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">306</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net adjustment to future policy benefits and claims</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(70</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">206</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net adjustment to policyholder dividend obligations</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(35</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">92</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Related federal income tax (expense) benefit</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(234</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">366</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Unrealized gains (losses) on available-for-sale securities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">435</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(679</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Reclassification adjustment for net losses realized on available-for-sale securities, net of tax benefit ($0 and $8 as of
December&nbsp;31, 2014 and 2013, respectively)</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(16</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net unrealized gains (losses) on available-for-sale securities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">435</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(663</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance at end of year</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,036</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">601</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-21 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes, by asset class, available-for-sale securities, in an
unrealized loss position based on the amount of time each type of security has been in an unrealized loss position, as well as the related fair value, as of the dates indicated: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="66%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Less&nbsp;than&nbsp;or&nbsp;equal&nbsp;to&nbsp;one&nbsp;year</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">More than one year</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Fair<BR>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Unrealized<BR>losses</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Fair<BR>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Unrealized<BR>losses</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Unrealized<BR>losses<SUP STYLE="font-size:85%; vertical-align:top">1 </SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2014</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate public securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,642</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">63</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,578</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">57</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">120</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Residential mortgage-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">268</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">487</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">43</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">45</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other asset-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">662</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">493</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">67</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">72</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">589</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">27</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">457</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">11</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">38</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B><SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,161</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">97</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,015</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">178</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">275</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2013</P></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>
<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="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities:</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate public securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,889</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">256</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">442</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">39</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">295</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Residential mortgage-backed securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">725</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">604</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">63</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">79</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other asset-backed securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">507</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">144</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">71</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">77</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,838</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">85</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">222</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">101</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B><SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,959</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">363</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,412</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">189</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">552</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">As of December&nbsp;31, 2014 and 2013, there were $66 million and $82 million, respectively, of unrealized losses related to available-for-sale securities with a fair value to amortized cost ratio of less than 80%.
</TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Represents 541 and 816 available-for-sale securities in an unrealized loss position as of December&nbsp;31, 2014 and 2013, respectively. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Residential mortgage-backed securities are assessed for impairment using default estimates based on loan level data, where available. Where
loan level data is not available, a proxy based on collateral characteristics is used. The impairment assessment considers loss severity as a function of multiple factors, including unpaid balance, interest rate, mortgage insurance ratios, assessed
property value at origination, change in property value, loan-to-value (&#147;LTV&#148;) ratio at origination and prepayment speeds. Cash flows generated by the collateral are then utilized, along with consideration for the instrument&#146;s
position in the overall structure, to determine cash flows associated with the security. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Certain other asset-backed securities are
assessed for impairment using expected cash flows based on various inputs, including default estimates based on the underlying corporate securities, historical and forecasted loss severities or other market inputs when recovery estimates are not
feasible. When the collateral is regional bank and insurance company trust preferred securities, default estimates used to estimate cash flows are based on U.S. Bank Rating service data and broker research. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company believes the unrealized losses on these available-for-sale securities represent temporary fluctuations in economic factors that are
not indicative of other-than-temporary impairment. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-22 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Mortgage Loans, Net of Allowance </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the amortized cost of mortgage loans by method of evaluation for credit loss, and the related valuation
allowances by type of credit loss, as of the dates indicated: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="76%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="82%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortized cost:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Loans with non-specific reserves</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,279</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,350</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Loans with specific reserves</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">17</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total amortized cost</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,296</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,376</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Valuation allowance:</P></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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Non-specific reserves</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">21</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">29</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Specific reserves</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total valuation allowance</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Mortgage loans, net of allowance</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,270</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,341</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes activity in the valuation allowance for mortgage loans, for the years ended:
</P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="82%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Balance at beginning of year</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">44</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">60</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Current period provision<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(8</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(4</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Recoveries<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(5</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(15</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Charge offs and other</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(3</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance at end of year</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">44</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Includes specific reserve provisions and all changes in non-specific reserves. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Includes recoveries on sales and increases in the valuation of loans with specific reserves. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">As of December&nbsp;31, 2014 and 2013, the carrying values of commercial mortgage loans specifically reserved were $12 million and $20 million,
respectively, which is net of $5 million and $6 million, respectively, in specific reserves. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Interest income recognized on impaired
commercial mortgage loans was $1 million and $3 million for the years ended December&nbsp;31, 2014 and 2013, respectively. The average recorded investment was $16 million and $30 million for the years ended December&nbsp;31, 2014 and 2013,
respectively. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">As of December&nbsp;31, 2014 and 2013, the Company&#146;s mortgage loans classified as delinquent and/or in non-accrual
status were immaterial in relation to the total mortgage loan portfolio. The Company had no mortgage loans 90 days or more past due and still accruing interest. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Management evaluates the credit quality of individual mortgage loans and the portfolio as a whole through a number of loan quality
measurements, including, but not limited to, LTV and debt service coverage (&#147;DSC&#148;) ratios. The LTV ratio is calculated as a ratio of the amortized cost of a loan to the estimated value of the underlying collateral. DSC is the amount of
cash flow generated by the underlying collateral of the mortgage loan available to meet periodic interest and principal payments of the loan. This process identifies mortgage loans representing the lowest risk profile and lowest potential for loss
and those representing the highest risk profile and highest potential for loss. These factors are updated and evaluated at least annually. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-23 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the LTV ratio and DSC ratios of the mortgage loan portfolio,
as of the dates indicated: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="60%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="14" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">LTV ratio</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="14" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">DSC ratio</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Less<BR>than<BR>80%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">80% -<BR>less<BR>than<BR>90%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">90%&nbsp;or<BR>greater</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Greater<BR>than<BR>1.10</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">1.00-<BR>1.10</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Less<BR>than<BR>1.00</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December 31, 2014</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Apartment</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,156</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">111</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">17</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,284</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,252</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,284</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Industrial</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,131</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">34</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">35</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,048</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">89</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">63</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Office</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,004</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">20</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,040</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">990</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">46</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,040</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Retail</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,506</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">64</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">11</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,581</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,421</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">128</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">32</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,581</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">191</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">191</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">191</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">191</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B><SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,988</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">225</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">83</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,296</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,902</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">247</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">147</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,296</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December 31, 2013</P></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>
<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>
<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="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Apartment</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,788</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">52</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">30</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,870</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,857</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,870</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Industrial</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">951</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">52</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">86</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,089</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">893</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">122</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">74</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,089</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Office</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">837</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">30</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">38</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">905</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">800</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">43</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">62</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">905</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Retail</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,236</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">41</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">21</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,298</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,214</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">61</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">23</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,298</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">213</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">214</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">214</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">214</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B><SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,025</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">175</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">176</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,376</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5,978</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">232</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">166</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,376</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">As of December&nbsp;31, 2014, the weighted average DSC ratios for the respective LTV ratio ranges above were 1.97, 1.27 and 0.90, with a total weighted average DSC ratio of 1.93. As of December&nbsp;31, 2014, the
weighted average LTV ratios for the respective DSC ratio ranges above were 60%, 59% and 90%, with a total weighted average LTV ratio of 60%. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">As of December&nbsp;31, 2013, the weighted average DSC ratios for the respective LTV ratio ranges above were 1.77, 1.22 and 1.00, with a total weighted average DSC ratio of 1.74. As of December&nbsp;31, 2013, the
weighted average LTV ratios for the respective DSC ratio ranges above were 60%, 61% and 91%, with a total weighted average LTV ratio of 61%. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">While these loan quality measurements contribute to management&#146;s assessment of relative credit risk in the mortgage loan portfolio for the
dates indicated, based on underwriting criteria and ongoing assessment of the properties&#146; performance, management believes the amounts, net of valuation allowance, are collectible. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Available-For-Sale Securities on Deposit, Held in Trust and Pledged as Collateral </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Available-for-sale securities with a carrying value of $8 million were on deposit with various regulatory agencies as required by law as of
December&nbsp;31, 2014 and 2013. Additionally, available-for-sale securities with a carrying value of $683 million and $849 million were pledged as collateral to secure recoveries under reinsurance contracts and other funding agreements as of
December&nbsp;31, 2014 and 2013, respectively. These securities are primarily included in fixed maturity securities in the consolidated balance sheets. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Tax Credit Funds </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company has sold $1.3 billion and $1.2 billion in Tax Credit Funds to unrelated third parties as of December&nbsp;31, 2014 and 2013,
respectively. The Company has guaranteed after-tax benefits to the third party investors through periods ending in 2029. The Company held immaterial reserves on these transactions as of December&nbsp;31, 2014 and 2013. These guarantees are in effect
for periods of approximately 15 years each. The Tax Credit Funds provide a stream of tax benefits to the investors that will generate a yield and return of capital. If the tax benefits are not sufficient to provide these cumulative after-tax yields,
the Company must fund any shortfall. The maximum amount of undiscounted future payments that the Company could be required to pay the investors under the terms of the guarantees is $744 million, but the Company does not anticipate making any
material payments related to the guarantees. The Company&#146;s risks are mitigated in the following ways: (1)&nbsp;the Company has the right to buyout the equity related to the guarantee under certain circumstances, (2)&nbsp;the Company may replace
underperforming properties to mitigate exposure to guarantee payments and (3)&nbsp;the Company oversees the asset management of the deals. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-24 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Consolidated VIEs </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company has relationships with VIEs where the Company is the primary beneficiary. These consolidated VIEs are primarily made up of Tax
Credit Funds with guarantees to limited partners. Net assets (controlling and noncontrolling interests) of all consolidated VIEs totaled $640 million and $680 million as of December&nbsp;31, 2014 and 2013, respectively, and are included within the
balance sheet primarily as other investments of $580 million, other assets of $109 million and other liabilities of $75 million as of December&nbsp;31, 2014, other investments of $554 million, other assets of $182 million and other liabilities of
$82 million as of December&nbsp;31, 2013. The Company&#146;s general credit is not exposed to the creditors or beneficial interest holders of these consolidated VIEs. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Unconsolidated VIEs </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In addition to the consolidated VIEs, the Company holds investments in VIEs where the Company is not the primary beneficiary, which are
primarily investments in Tax Credit Funds without guarantees to limited partners. The carrying value of these investments was $113 million and $104 million as of December&nbsp;31, 2014 and 2013, respectively. In addition, the Company has made
commitments for further investments in these VIEs of $17 million and $29 million as of December&nbsp;31, 2014 and 2013, respectively. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Net Investment Income </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes net investment income, by investment type, for the years ended: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="76%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities, available-for-sale</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,575</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,565</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,506</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Mortgage loans</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">362</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">348</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">366</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy loans</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">51</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">52</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">53</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(29</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(57</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(45</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Gross investment income</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,959</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,908</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,880</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Investment expenses</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">59</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">59</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">55</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net investment income</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,900</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,849</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,825</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Net Realized Investment Gains and Losses, Including Other-Than-Temporary Impairments </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes net realized investment gains and losses, including other-than-temporary impairments, by source, for the years
ended: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="77%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net realized derivative (losses) gains</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,087</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">705</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">314</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Realized gains on sales</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">31</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">32</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">48</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Realized losses on sales</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(19</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(54</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(23</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">12</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net realized investment (losses) gains before other-than-temporary impairments on fixed maturity securities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,073</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">683</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">351</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other-than-temporary impairments on fixed maturity securities<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(5</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(5</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(32</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net realized investment (losses) gains, including other-than-temporary impairments</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,078</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">678</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">319</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Other-than-temporary impairments on fixed maturity securities are net $1 million, $6 million and $36 million of non-credit losses included in other comprehensive income for the years ended December&nbsp;31, 2014, 2013
and 2012, respectively. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Proceeds from the sale of available-for-sale securities were $0.6 billion, $1.1 billion and $0.8
billion during the years ended December&nbsp;31, 2014, 2013 and 2012, respectively. Gross gains of $17 million, $31 million and $47 million and gross losses of $10 million, $50 million and $20 million were realized on sales of available-for-sale
securities during the years ended December&nbsp;31, 2014, 2013 and 2012, respectively. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-25 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the cumulative credit losses, for the years ended: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="79%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Cumulative credit losses at beginning of year<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(272</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(289</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(328</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">New credit losses</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(3</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(18</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Incremental credit losses</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(4</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(3</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(10</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Losses related to securities included in the beginning balance sold or paid down during the period</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">24</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">23</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">67</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Cumulative credit losses at end of year</B><SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(254</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(272</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(289</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Cumulative credit losses are defined as amounts related to the Company&#146;s credit portion of the other-than-temporary impairment losses on debt securities that the Company does not intend to sell and that it is not
more likely than not the Company will be required to sell prior to recovery of the amortized cost basis. </TD></TR></TABLE> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(7)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Derivative Instruments </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company is exposed to certain risks related to its ongoing business operations which are managed using derivative
instruments. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Interest rate risk management.</I> The Company uses interest rate contracts, primarily interest rate swaps, to reduce or
alter interest rate exposure arising from mismatches between assets and liabilities. In the case of interest rate swaps, the Company enters into a contractual agreement with a counterparty to exchange, at specified intervals, the difference between
fixed and variable rates of interest, calculated on a reference notional amount. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Interest rate swaps are used by the Company in
association with fixed and variable rate investments to achieve cash flow streams that support certain financial obligations of the Company and to produce desired investment returns. As such, interest rate swaps are generally used to convert fixed
rate cash flow streams to variable rate cash flow streams or vice versa. The Company also enters into interest rate swap transactions, which are structured to provide an offset against the negative impact of higher interest rates on the
Company&#146;s capital position. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Equity market and interest rate risk management.</I> The Company has a variety of variable annuity
products with guaranteed benefit features. These products and related obligations expose the Company to various market risks, primarily equity and interest rate risks. Adverse changes in the equity markets or interest rate movements expose the
Company to significant volatility. To mitigate these risks and hedge the guaranteed benefit obligations, the Company enters into a variety of derivatives including interest rate swaps, equity index futures, options and total return swaps. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Other risk management.</I> As part of its regular investing activities, the Company may purchase foreign currency denominated investments.
These investments and the associated income expose the Company to volatility associated with movements in foreign exchange rates. As foreign exchange rates change, the increase or decrease in the cash flows of the derivative instrument generally
offsets the changes in the functional-currency equivalent cash flows of the hedged item. To mitigate this risk, the Company uses cross-currency swaps and futures, which are primarily included in other derivative contracts in the following tables.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Credit risk associated with derivatives transactions.</I> The Company periodically evaluates the risks within the derivative portfolios
due to credit exposure When evaluating this risk, the Company considers several factors which include, but are not limited to, the counterparty credit risk associated with derivative receivables, the Company&#146;s own credit as it relates to
derivative payables, the collateral thresholds associated with each counterparty and changes in relevant market data in order to gain insight into the probability of default by the counterparty. In addition, the impact the Company&#146;s exposure to
credit risk could have on the effectiveness of the Company&#146;s hedging relationships is considered. As of December&nbsp;31, 2014 and 2013, the impact of the exposure to credit risk on the fair value measurement of derivatives and the
effectiveness of the Company&#146;s hedging relationships was immaterial. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-26 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the fair value and related notional amounts of derivative
instruments, as of the dates indicated: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="74%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Derivative assets</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Derivative liabilities</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><B></B><I>(in millions)</I><B></B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Fair&nbsp;value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Notional</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Fair&nbsp;value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Notional</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2014</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivatives designated and qualifying as hedging instruments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">29</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">381</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">9</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">176</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivatives not designated as hedging instruments:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Interest rate contracts</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,602</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">32,829</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,611</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">32,756</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Equity contracts</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">411</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5,990</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total return swaps</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">41</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,808</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other derivative contracts</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total derivative instruments</B><SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,042</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">39,200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,664</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35,742</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Accrued interest on derivative assets and liabilities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">243</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">244</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total derivative positions</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,285</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,908</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2013</P></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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivatives designated and qualifying as hedging instruments</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">345</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivatives not designated as hedging instruments:</P></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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Interest rate contracts</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,787</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">26,156</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,100</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">29,715</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Equity contracts</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">343</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6,556</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total return swaps</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,101</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">52</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,183</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other derivative contracts</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total derivative instruments</B><SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,137</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">33,819</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,183</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">31,245</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Accrued interest on derivative assets and liabilities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">196</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">227</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total derivative positions</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,333</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,410</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Derivative assets and liabilities are included in other assets and other liabilities, respectively, in the consolidated balance sheets. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Of the $3.3 billion and $2.3 billion of fair value of total derivative assets at December&nbsp;31, 2014 and 2013, $2.6 billion and $1.7
billion, respectively, are subject to master netting agreements. The Company received $535 million and $382 million of cash collateral and held $64 million and $29 million, respectively, of securities as off-balance sheet collateral, resulting in an
immaterial uncollateralized position as of December&nbsp;31, 2014 and 2013. Of the $2.9 billion and $2.4 billion of fair value of total derivative liabilities at December&nbsp;31, 2014 and 2013, $2.6 billion and $1.7 billion, respectively, are
subject to master netting agreements. The Company posted $330 million and $435 million of cash collateral and pledged securities with a fair value of $174 million and $173 million, respectively, resulting in an immaterial uncollateralized position
as of December&nbsp;31, 2014 and 2013. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-27 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes gains and losses for derivative instruments recognized in net
realized investment gains and losses in the consolidated statements of operations, for the years ended: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="73%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B></B>December&nbsp;31,<B></B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivatives designated and qualifying as hedging instruments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivatives not designated as hedging instruments:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Interest rate contracts</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">142</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(209</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(125</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Equity contracts</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(79</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(776</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(665</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total return swaps</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(195</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(321</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(343</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other derivative contracts</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(9</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net interest settlements</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">20</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">14</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">53</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total derivative losses<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(108</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,302</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,082</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Change in embedded derivatives on guaranteed benefit annuity programs<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1,271</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,751</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,185</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other revenue on guaranteed benefit annuity programs</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">292</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">256</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">211</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Change in embedded derivative liabilities and related fees</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(979</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,007</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,396</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net realized derivative (losses) gains</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,087</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">705</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">314</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Included in total derivative losses are economic hedging gains (losses) of $941 million, $(1.8) billion and $(827) million related to the guaranteed benefit annuity programs for the years ended December&nbsp;31, 2014,
2013 and 2012, respectively. Also included are economic hedging (losses) gains of $(1.0) billion, $645 million and $(129) million, respectively, related to the program that protects against the negative impact of higher interest rates on the
Company&#146;s statutory surplus position. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">For the individual variable annuity business, the annual comprehensive review of model assumptions included a favorable impact for the years ended December&nbsp;31, 2014 and 2013, primarily due to model enhancements and
updated assumptions for discounting and benefit utilization, partially offset by mortality and lapse rates. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-28 </P>


<p Style='page-break-before:always'>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>


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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(8)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Fair Value Measurements </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes assets and liabilities held at fair value on a recurring basis as of December&nbsp;31, 2014:
</P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="92%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


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<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Level 1</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Level 2</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Level 3</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Assets</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Investments:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities, available-for-sale:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">U.S. government and agencies</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">523</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">527</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Obligations of states, political subdivisions and foreign governments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">66</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,219</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,285</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate public securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">21,158</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">92</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">21,250</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate private securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,659</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">991</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,650</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Residential mortgage-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,034</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,796</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,839</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Commercial mortgage-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,499</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,502</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other asset-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,196</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">169</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,365</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total fixed maturity securities, available-for-sale, at fair value</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,623</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">32,528</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,267</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35,418</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other investments at fair value<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">42</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">899</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">36</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">977</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:9.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Investments at fair value</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,665</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">33,427</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,303</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36,395</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivative instruments - assets</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,631</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">411</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,042</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Separate account assets</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">84,583</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,387</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,106</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">88,076</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:11.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Assets at fair value</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">86,248</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">37,445</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,820</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">127,513</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Liabilities</B></P></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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Future policy benefits and claims:</P></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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Embedded derivatives on living benefits</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(177</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(177</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Embedded derivatives on indexed products</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(84</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(84</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:9.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total future policy benefits and claims</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(261</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(261</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivative instruments - liabilities</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2,661</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(3</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2,664</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:11.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Liabilities at fair value</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(2,661</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(264</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(2,925</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Other investments at fair value includes $21 million of trading securities as of December&nbsp;31, 2014. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended
December&nbsp;31, 2014: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="55%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Fixed<BR>maturity<BR>securities<SUP STYLE="font-size:85%; vertical-align:top">2&nbsp;</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Other<BR>investments</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Derivative<BR>assets<SUP STYLE="font-size:85%; vertical-align:top">3&nbsp;</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Separate<BR>account<BR>assets</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total&nbsp;assets<BR>at&nbsp;fair&nbsp;value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Liabilities&nbsp;at<BR>fair value<SUP STYLE="font-size:85%; vertical-align:top">3&nbsp;</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance as of December&nbsp;31, 2013</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,088</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">45</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">343</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,083</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,559</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,005</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net gains (losses)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">In operations<SUP STYLE="font-size:85%; vertical-align:top">1&nbsp;</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(5</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">40</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">23</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">64</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1,269</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">In other comprehensive income</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">21</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">22</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Purchases</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">121</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">46</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">167</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Sales</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(241</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(16</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(18</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(275</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Transfers into Level 3</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">400</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">400</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Transfers out of Level 3</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(117</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(117</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance as of December&nbsp;31, 2014</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,267</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">411</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,106</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,820</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(264</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable
to contractholders and therefore are not included in the Company&#146;s earnings. The change in unrealized (losses) gains included in operations on assets and liabilities still held at the end of the year was $(1.3) billion for future policy
benefits and claims, $154 million for derivative assets, and $6 million for other investments at fair value. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Non-binding broker quotes were utilized to determine a fair value of $1.1 billion of total fixed maturity securities as of December&nbsp;31, 2014. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">3</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-29 </P>


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<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Transfers into and out of Level 3 during the year ended December&nbsp;31, 2014 are primarily
due to certain corporate private securities, which changed pricing sources between broker quotes and independent pricing services. There were no material transfers between Levels 1 and 2 during the year ended December&nbsp;31, 2014. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">As discussed in Note 2, the valuation of embedded derivatives in living benefit guarantees and equity indexed products incorporates many
inputs. Significant unobservable inputs for living benefit guarantees include discounting, index volatility, mortality, lapse rates, wait period and benefit utilization, while significant unobservable inputs for equity indexed products include
mortality, lapse rates and index volatility. For both products, the Company derives these inputs, which vary widely by product, attained age, policy duration, benefits in the money (living benefit guarantees only) and the existence of surrender
charges, from current experience and industry data. The fair value for these benefits is calculated using the mean of discounted cash flows across numerous random scenarios, an approach that is commonly used by the insurance industry for this type
of valuation. This process considers a broader range of assumptions than what would be found in a deterministic approach. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Living
Benefit Guarantees </I></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes significant unobservable inputs used for fair value measurements for living
benefits liabilities classified as Level 3 as of December&nbsp;31, 2014: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="51%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="46%"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:66.35pt; font-size:8pt; font-family:Times New Roman">Unobservable Inputs</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">Range</P></TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Mortality</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT STYLE="white-space:nowrap">0.1%&nbsp;-&nbsp;8%</FONT><SUP STYLE="font-size:85%; vertical-align:top">2</SUP></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Lapse</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">0% <FONT STYLE="white-space:nowrap">-</FONT> 35%</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Wait period</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">0&nbsp;yrs&nbsp;&#150;&nbsp;30&nbsp;yrs<SUP STYLE="font-size:85%; vertical-align:top">3</SUP></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Efficiency of benefit utilization<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">65% -100%</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Discount rate</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">See&nbsp;footnote&nbsp;4</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Index volatility</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center">15% - 25%</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The unobservable input is not applicable to GMABs. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Represents the mortality for the majority of business with living benefits, with policyholders ranging from 45 to 85. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">3</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">A portion of the contractholders could never use the benefit, which would extend the range to an indeterminate period. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">4</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Incorporates the liquidity and non-performance risk adjustment. The liquidity spread takes into consideration market observables for spreads in illiquid assets. The non-performance risk adjustment reflects an additional
spread over LIBOR determined by market observables for similarly rated public bonds. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following changes in any of the
significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the living benefits liability: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability. Factors that
impact the predicted lapse rate can include: age, policy duration, policy size, benefit in-the-moneyness, tax status (i.e. qualified or non-qualified), interest rate levels and applicable surrender charges. All else being equal, policies that are
in-the-money will have lower lapse rates than policies that are out-of-the-money, and policies that have a surrender charge present will have lower lapse rates than policies without a surrender charge. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The assumed wait period and the efficiency of utilization determine the timing and amount of living benefits withdrawals. These assumptions
vary by the product type, age of the policyholder and policy duration. Many products have a bonus feature which enhances the guarantee on every policy anniversary for the first ten years so long as withdrawals have not commenced. All else being
equal, policies commencing withdrawals at a time around the year ten bonus will have higher liability values than policies commencing withdrawals 20 years after issue or policies commencing withdrawals only one year after issue. In addition,
policies that are assumed to withdraw the maximum permitted amount will have a higher liability value than a policy that is assumed to withdraw less than the maximum allowed amount. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">A higher discount rate tends to decrease the value of the liability and a lower discount rate tends to increase the value of the liability.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the
liability. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-30 </P>


<p Style='page-break-before:always'>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Equity Indexed Products </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes significant unobservable inputs used for fair value measurements for indexed universal life equity indexed
products classified as Level 3 as of December&nbsp;31, 2014: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="51%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="46%"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:66.35pt; font-size:8pt; font-family:Times New Roman">Unobservable Inputs</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center">Range</P></TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Mortality</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">0% - 4%<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Lapse</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">0% - 10%</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Index volatility</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">15% - 25%</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Represents the mortality for the majority of business, with policyholders ranging from 0 to 75. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value
measurements of the equity indexed products: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Higher mortality rates tend to decrease the value of the liability and lower mortality rates
tend to increase the value of the liability. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to
increase the value of the liability. Factors that impact the predicted lapse rate can include: age, policy duration, policy size, and applicable surrender charges. All else being equal, policies with a surrender charge present will have lower lapse
rates than policies without a surrender charge. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Higher index volatility tends to increase the value of the liability and lower index
volatility tends to decrease the value of the liability. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Separate Accounts </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s separate account assets include an investment in a mutual fund with a non-readily determinable fair value. Net asset value
has been used to estimate the fair value of this investment as a practical expedient. The investments are included in Level 3 as they may not be redeemed until the guarantee period expires in 2016. The investment strategy of this fund is to build a
portfolio where the assets shall be sufficient to achieve a target portfolio value by the end of the guarantee period. The net asset value of this fund reported in separate account assets was $1.7 billion as of December&nbsp;31, 2014 and 2013. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-31 </P>


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<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes assets and liabilities held at fair value on a recurring basis
as of December&nbsp;31, 2013: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="92%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


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<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Level 1</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Level 2</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Level 3</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Assets</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
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<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Investments:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities, available-for-sale:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">U.S. government and agencies</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">557</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">561</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Obligations of states, political subdivisions and foreign governments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">63</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,900</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,963</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate public securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">18,705</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">79</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">18,785</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate private securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,791</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">803</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,594</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Residential mortgage-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">791</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,203</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4,003</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Commercial mortgage-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,504</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,504</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other asset-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">645</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">194</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">839</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total fixed maturity securities, available-for-sale, at fair value</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,412</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">29,749</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,088</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">32,249</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other investments at fair value<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">64</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">357</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">45</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">466</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:9.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Investments at fair value</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,476</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">30,106</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,133</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">32,715</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivative instruments - assets</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,794</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">343</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,137</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Separate account assets</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">80,647</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,339</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,083</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">84,069</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:11.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Assets at fair value</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">82,123</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">33,239</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,559</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">118,921</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Liabilities</B></P></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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Future policy benefits and claims:</P></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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Embedded derivatives on living benefits</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,094</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,094</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Embedded derivatives on indexed products</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(84</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(84</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:9.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Total future policy benefits and claims</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,010</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,010</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivative instruments - liabilities</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2,178</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(5</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2,183</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:11.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Liabilities at fair value</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(2,178</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,005</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,173</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP></TD>
<TD ALIGN="left" VALIGN="top"><SUP STYLE="font-size:85%; vertical-align:top"></SUP>Other investments at fair value includes $31 million of trading securities as of December&nbsp;31, 2013. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended
December&nbsp;31, 2013: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="55%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Fixed<BR>maturity<BR>securities<SUP STYLE="font-size:85%; vertical-align:top">2&nbsp;</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Other<BR>investments</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Derivative<BR>assets<SUP STYLE="font-size:85%; vertical-align:top">3&nbsp;</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Separate<BR>account<BR>assets</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total&nbsp;assets<BR>at&nbsp;fair&nbsp;value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Liabilities&nbsp;at<BR>fair value<SUP STYLE="font-size:85%; vertical-align:top">3&nbsp;</SUP></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance as of December&nbsp;31, 2012</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,197</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">62</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">822</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,025</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,106</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(753</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net gains (losses)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">In operations<SUP STYLE="font-size:85%; vertical-align:top">1&nbsp;</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(6</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(447</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">58</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(396</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,758</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">In other comprehensive income</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">7</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Purchases</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">115</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">129</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">249</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Sales</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(232</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(22</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(161</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(415</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Transfers into Level 3</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">142</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">142</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Transfers out of Level 3</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(134</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(134</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance as of December&nbsp;31, 2013</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,088</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">45</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">343</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,083</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,559</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,005</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable
to contractholders and therefore are not included in the Company&#146;s earnings. The change in unrealized gains (losses) included in operations on assets and liabilities still held as of the end of the year was $1.8 billion for future policy
benefits and claims, $(297) million for derivative assets and $(6) million for other investments at fair value. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Non-binding broker quotes were utilized to determine a fair value of $924 million of total fixed maturity securities as of December&nbsp;31, 2013. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">3</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Transfers into and out of Level 3 during the year ended December&nbsp;31, 2013 are primarily due to certain corporate private securities and
other asset-backed securities, which changed pricing sources between broker quotes and independent pricing services. There were no transfers between Levels 1 and 2 during the year ended December&nbsp;31, 2013. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-32 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Financial Instruments Not Carried at Fair Value </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the carrying value and fair value of the Company&#146;s financial instruments not carried at fair value as of
the dates indicated. The valuation techniques used to estimate these fair values are described below. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


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<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="14" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31, 2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="14" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31, 2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Carrying<BR>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Fair<br>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Level 2</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Level 3</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Carrying<BR>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Fair<br>value</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Level&nbsp;2</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Level 3</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Assets</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Investments:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Mortgage loans, net of allowance</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,270</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,616</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,616</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,341</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,481</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6,481</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy loans</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">992</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">992</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">992</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">987</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">987</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">987</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other investments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">60</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">60</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">60</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">43</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">43</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">43</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Liabilities</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Investment contracts</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">23,470</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">21,742</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">21,742</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">21,874</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">20,436</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">20,436</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Short-term debt</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">660</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">660</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">660</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">278</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">278</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">278</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Long-term debt</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">709</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,069</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,060</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">9</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">707</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,004</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">997</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Mortgage loans, net of allowance</I>. The fair values of mortgage loans are estimated using discounted cash
flow analyses based on interest rates currently being offered for similar loans to borrowers with similar credit ratings. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Policy
loans</I>. The carrying amount reported in the consolidated balance sheets approximates fair value. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Other investments</I>. Other
investments not held at fair value consist of FHLB stock. The carrying amount reported in the consolidated balance sheets approximates fair value. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Investment contracts</I>. For investment contracts without defined maturities, fair value is the amount payable on demand, net of surrender
charges. For investment contracts with known or determined maturities, fair value is estimated using discounted cash flow analysis. Interest rates used in this analysis are similar to currently offered contracts with maturities consistent with those
remaining for the contracts being valued. The fair value of adjustable rate contracts approximates their carrying value. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Short-term
debt</I>. The carrying amount reported in the consolidated balance sheets approximates fair value. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Long-term debt</I>. The fair values
for long-term debt are based on estimated market prices using observable inputs from similar debt instruments. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(9)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Goodwill </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes changes in the carrying value of goodwill by segment for the years indicated: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="71%"></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Retirement<BR>Plans</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Individual<BR>Products&nbsp;&amp;<BR><FONT STYLE="white-space:nowrap">Solutions&nbsp;-&nbsp;Life</FONT><BR>and NBSG</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Balance as of December&nbsp;31, 2012<SUP STYLE="font-size:85%; vertical-align:top">1&nbsp;</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">25</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">175</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Adjustments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Balance as of December&nbsp;31, 2013<SUP STYLE="font-size:85%; vertical-align:top">1&nbsp;</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">25</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">175</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Adjustments</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance as of December&nbsp;31, 2014</B><SUP STYLE="font-size:85%; vertical-align:top">1</SUP><B></B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">25</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">175</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">200</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">The goodwill balances have not been previously impaired. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-33 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
 <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(10)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Closed Block </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The amounts shown in the following tables for assets, liabilities, revenues and expenses of the closed block are those that
enter into the determination of amounts that are to be paid to policyholders. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes financial information for the
closed block, as of the dates indicated: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="88%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Liabilities:</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Future policyholder benefits</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,669</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,703</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policyholder funds and accumulated dividends</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">139</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">141</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policyholder dividends payable</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">22</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">23</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policyholder dividend obligation</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">152</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">113</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other policy obligations and liabilities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">33</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">29</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total liabilities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,015</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,009</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Assets:</B></P></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 BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities, available-for-sale</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,336</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,320</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Mortgage loans, net of allowance</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">272</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">257</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy loans</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">149</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">157</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other assets</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">86</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">93</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total assets</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,843</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,827</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Excess of reported liabilities over assets</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">172</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">182</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Portion of above representing other comprehensive income:</B></P></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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Increase (decrease) in unrealized gain on fixed maturity securities, available-for-sale</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(92</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Adjustment to policyholder dividend obligation</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(35</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">92</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:9.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Maximum future earnings to be recognized from assets and liabilities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">172</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">182</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Other comprehensive income:</B></P></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 BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities, available-for-sale:</P></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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fair value</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,336</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,320</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortized cost</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,216</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,235</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Shadow policyholder dividend obligation</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(120</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(85</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net unrealized appreciation</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-34 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
 <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes closed block operations for the years ended: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="88%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Revenues:</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Premiums</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">61</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">66</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">73</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net investment income</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">93</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">94</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">98</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Realized investment gains</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Realized losses credited to policyholder benefit obligation</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(5</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(4</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(5</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total revenues</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">150</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">156</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">167</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Benefits and expenses:</B></P></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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy and contract benefits</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">124</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">123</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">134</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Change in future policyholder benefits and interest credited to policyholder accounts</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(34</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(29</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(27</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policyholder dividends</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">43</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">44</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">50</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Change in policyholder dividend obligation</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(8</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other expenses</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total benefits and expenses</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">134</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">139</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">150</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total revenues, net of benefits and expenses, before federal income tax expense</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">17</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">17</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Federal income tax expense</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:9.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Revenues, net of benefits and expenses and federal income tax expense</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">10</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">11</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">11</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:9.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Maximum future earnings from assets and liabilities:</B></P></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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:11.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Beginning of period</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">182</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">193</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">204</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:11.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Change during period</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(10</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(11</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(11</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:13.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>End of period</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">172</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">182</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">193</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Cumulative closed block earnings from inception through December&nbsp;31, 2014, 2013 and 2012 were higher than
expected as determined in the actuarial calculation. Therefore, policyholder dividend obligations (excluding the adjustment for unrealized gains on available-for-sale securities) were $32 million, $28 million and $21 million as of December&nbsp;31,
2014, 2013 and 2012, respectively. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-35 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
 <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(11)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Short-Term Debt </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company classifies debt as short-term if the maturity date at inception is less than one year. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the carrying value of short-term debt and weighted average annual interest rates, as of the dates indicated:
</P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="76%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="86%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">$600 million commercial paper program (0.20% and 0.24%, respectively)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">264</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">278</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">$400 million revolving variable rate line of credit (1.57% and 0.00%, respectively)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">396</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total short-term debt</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">660</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">278</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In November 2014, the Company entered into a $400 million unsecured revolving promissory note and line of
credit agreement with its parent company, NFS. Outstanding principal balances of the line of credit bear interest at the rate of six-month London Interbank Offered Rate (&#147;LIBOR&#148;) plus 1.25%. Interest is due and payable as of the last day
of each interest period, as defined in the agreement, while there are outstanding principal balances. Under the terms of the agreement, the Company may borrow, repay and re-borrow advances under the line of credit at any time prior to the
termination of the note, which, among other conditions, is November 2015, subject to automatic renewal for additional one year periods unless either party terminates the agreement. In February 2015, the Company repaid $200 million of the outstanding
balance. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In March 2014, the Company renewed an agreement to extend its ability to borrow with the FHLB. This extension, which expires on
March&nbsp;27, 2015, allows the Company access to borrow up to $250 million, which would be collateralized by pledged securities. The Company had $8.5 billion and $4.3 billion in eligible collateral and no amounts outstanding under the agreement as
of December&nbsp;31, 2014 and 2013, respectively. Additionally, as part of the agreement, NLIC purchased $25 million in capital stock with the FHLB. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">NMIC, NFS, and NLIC have a $600 million revolving variable rate credit facility that matures on May&nbsp;6, 2015. NLIC had no amounts
outstanding under the facility as of December&nbsp;31, 2014 and 2013. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company has entered into an agreement with its custodial bank to
borrow against the cash collateral that is posted in connection with its securities lending program. The maximum amount available under the agreement is $350 million. The borrowing rate on this program is equal to one-month U.S. LIBOR. The Company
had no amounts outstanding under this agreement as of December&nbsp;31, 2014 and 2013. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The terms of each debt instrument contain various
restrictive covenants, including, but not limited to, minimum statutory surplus and minimum net worth requirements, and maximum debt to statutory surplus leverage ratio requirements, as defined in the agreements. The Company was in compliance with
all covenants as of December&nbsp;31, 2014 and 2013. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The amount of interest paid on short-term debt was immaterial in 2014, 2013 and 2012.
</P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(12)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Long-Term Debt </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the carrying value of long-term debt, as of the dates indicated: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="76%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="86%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">8.15% surplus note, due June&nbsp;26, 2032, payable to NFS</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">300</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">300</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">7.50% surplus note, due December&nbsp;17, 2031, payable to NFS</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">300</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">300</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">6.75% surplus note, due December&nbsp;23, 2033, payable to NFS</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">100</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">100</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">7</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total long-term debt</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">709</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">707</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">On December&nbsp;31, 2010, Olentangy Reinsurance, LLC (&#147;Olentangy&#148;), a special purpose financial
captive insurance company subsidiary of NLAIC domiciled in the State of Vermont, issued a variable funding surplus note due on December&nbsp;31, 2040 to Nationwide Corporation, a majority-owned subsidiary of NMIC. In June 2013, the Company paid the
outstanding balance of the surplus note. The Company made interest payments on the surplus note totaling $5 million during 2013 prior to the repayment of the outstanding balance. Payments of interest and principal under the notes require the prior
approval of the State of Vermont. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company made interest payments to NFS on surplus notes totaling $54 million for the years ended
December&nbsp;31, 2014, 2013 and 2012. Payments of interest and principal under the notes require the prior approval of the ODI. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-36 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
 <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(13)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Federal Income Taxes </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the components of federal income tax (benefit) expense for the years ended: </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="80%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Current tax expense (benefit)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(33</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(144</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Deferred tax (benefit) expense</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(152</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">346</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">243</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total tax (benefit) expense</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(147</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">313</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">99</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes how the total federal income tax (benefit) expense differs from the amount
computed by applying the U.S. federal income tax rate to net (loss) income for the years ended: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="76%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="22" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Amount</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Amount</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">%</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Amount</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">%</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Rate reconciliation:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Computed (expected tax (benefit) expense)</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(46</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">35</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">469</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">35</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">245</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">35</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Dividends received deduction</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(87</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">66</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(112</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(8</TD>
<TD NOWRAP VALIGN="bottom">)%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(75</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(11</TD>
<TD NOWRAP VALIGN="bottom">)%&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Tax credits</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(53</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">41</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(82</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(6</TD>
<TD NOWRAP VALIGN="bottom">)%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(85</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(12</TD>
<TD NOWRAP VALIGN="bottom">)%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other, net</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">39</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(30</TD>
<TD NOWRAP VALIGN="bottom">)%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">38</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">14</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(147</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">112</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">313</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">23</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">99</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">14</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s current federal income tax liability was $18 million and $13 million as of
December&nbsp;31, 2014 and 2013, respectively. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company made immaterial payments for the year ended December&nbsp;31, 2014 and received
refunds of $107 million and $95 million for the years ended 2013 and 2012, respectively. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">During 2014 and 2013, the Company recorded a tax
expense (benefit) of $16 million and $(13) million, respectively. These changes in estimates were primarily driven by differences in the Company&#146;s separate account dividends received deduction (&#147;DRD&#148;) between the previous year&#146;s
estimate and the amount reported on the previous year&#146;s tax return. No material changes in estimated income tax expense were recorded in 2012. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">As of December&nbsp;31, 2014, the Company had gross federal net operating loss carryforwards of $332 million, which expire in 2028. In
addition, the Company had $147 million in low-income-housing credit carryforwards, which expire between 2024 and 2034, and $155 million in alternative minimum tax credit carryforwards, which have an unlimited carryforward. In addition, the Company
had $53 million in foreign tax credit carryforwards which expire between 2019 and 2024. The Company expects to fully utilize all carryforwards. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-37 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the tax effects of temporary differences that gave rise to
significant components of the net deferred tax liability included in other liabilities in the consolidated balance sheets, as of the dates indicated: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="76%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="80%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Deferred tax assets</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Future policy benefits and claims</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,274</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,244</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Tax credit carryforwards</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">355</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">352</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">840</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">845</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Gross deferred tax assets</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,469</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,441</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Valuation allowance</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(17</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(17</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net deferred tax assets</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,452</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,424</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Deferred tax liabilities</B></P></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 BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Deferred policy acquisition costs</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,113</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,048</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Available-for-sale securities</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1,201</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(821</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Derivatives, including embedded derivatives</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(267</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(600</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(269</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(255</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Gross deferred tax liabilities</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(2,850</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(2,724</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:9.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net deferred tax liability</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(398</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(300</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than
not that some portion of the total gross deferred tax assets will not be realized. Valuation allowances are established when necessary to reduce the deferred tax assets to amounts expected to be realized. Based on the Company&#146;s analysis, it is
more likely than not that the results of future operations and the implementation of tax planning strategies will generate sufficient taxable income to enable the Company to realize the deferred tax assets for which the Company has not established
valuation allowances. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table is a rollforward of the beginning and ending uncertain tax positions, including permanent and
temporary differences, but excluding interest and penalties: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="82%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance at beginning of period</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">76</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Additions for current year tax positions</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Additions for prior years tax positions</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">25</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Reductions for prior years tax positions</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(63</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Balance at end of period</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">38</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company believes it is reasonably possible that the 2006 to 2010 IRS audit for the NLIC&#146;s
consolidated tax returns will be effectively settled within the next 12 months and as a result the liability for unrecognized tax benefits could decrease $15 million. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S.
federal, state or local income tax examinations by tax authorities through the 2005 tax year. In 2013, the IRS commenced an examination of the Company&#146;s U.S. income tax returns for the years 2009 through 2010. Any adjustments that may result
from IRS examination of tax returns are not expected to have a material effect on the results of operations, cash flows or financial position of the Company. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-38 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>


<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(14)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Statutory Financial Information </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Statutory Results </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s life insurance subsidiaries prepare their statutory financial statements in conformity with the statutory accounting
practices prescribed and permitted by insurance regulatory authorities, subject to any deviations prescribed or permitted by the applicable state departments of insurance. Olentangy was granted a permitted practice from the State of Vermont that
changed NLAIC&#146;s valuation of this subsidiary by $66 million as of December&nbsp;31, 2014 and 2013, which also allowed NLIC to admit additional deferred tax assets of $10 million as of December&nbsp;31, 2014 and 2013. Statutory accounting
practices focus on insurer solvency and differ materially from GAAP primarily due to charging policy acquisition and other costs to expense as incurred, establishing future policy benefits and claims reserves based on different actuarial
assumptions, excluding certain assets from statutory admitted assets and valuing investments and establishing deferred taxes on a different basis. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the statutory net income (loss) and statutory capital and surplus for the Company&#146;s primary life insurance
subsidiaries for the years ended: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="76%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Statutory net income (loss)</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">NLIC</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">341</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">262</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">764</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">NLAIC</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(122</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(103</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(54</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Statutory capital and surplus</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">NLIC</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,408</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,550</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,837</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">NLAIC</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">691</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">534</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">311</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Dividend Restrictions </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The payment of dividends by NLIC is subject to restrictions set forth in the insurance laws and regulations of the State of Ohio, its
domiciliary state. The State of Ohio insurance laws require Ohio-domiciled life insurance companies to seek prior regulatory approval to pay a dividend or distribute cash or other property if the fair market value thereof, together with that of
other dividends or distributions made in the preceding twelve months, exceeds the greater of (1)&nbsp;10% of statutory-basis policyholders&#146; surplus as of the prior December&nbsp;31 or (2)&nbsp;the statutory-basis net income of the insurer for
the prior year. During the years ended December&nbsp;31, 2014 and 2013, NLIC did not pay any dividends to NFS. During the year ended December&nbsp;31, 2012, NLIC paid a cash dividend of $40 million to NFS. As of January&nbsp;1, 2015, NLIC has the
ability to pay dividends to NFS totaling $441 million without obtaining prior approval. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The State of Ohio insurance laws also require
insurers to seek prior regulatory approval for any dividend paid from other than earned surplus. Earned capital and surplus is defined under the State of Ohio insurance laws as the amount equal to the Company&#146;s unassigned funds as set forth in
its most recent statutory financial statements, including net unrealized capital gains and losses or revaluation of assets. Additionally, following any dividend, an insurer&#146;s policyholder capital and surplus must be reasonable in relation to
the insurer&#146;s outstanding liabilities and adequate for its financial needs. The payment of dividends by the Company may also be subject to restrictions set forth in the insurance laws of the State of New York that limit the amount of statutory
profits on the Company&#146;s participating policies (measured before dividends to policyholders) available for the benefit of the Company and its stockholders. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company currently does not expect such regulatory requirements to impair the ability to pay operating expenses and dividends in the future.
</P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Regulatory Risk-Based Capital </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The National Association of Insurance Commissioners&#146; (&#147;NAIC&#148;) Risk-Based Capital (&#147;RBC&#148;) model law requires every
insurer to calculate its total adjusted capital and RBC requirement to ensure insurer solvency. Regulatory guidelines provide for an insurance commissioner to intervene if the insurer experiences financial difficulty, as evidenced by a
company&#146;s total adjusted capital falling below established relationships to required RBC. The model includes components for asset risk, liability risk, interest rate exposure and other factors. The State of Ohio, where NLIC and NLAIC are
domiciled, imposes minimum RBC requirements that are developed by the NAIC. The formulas in the model for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on
the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital to authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels,
all of which require specified corrective action. NLIC, NLAIC and Olentangy each exceeded the minimum RBC requirements for all periods presented. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-39 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>


<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(15)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Related Party Transactions </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company has entered into significant, recurring transactions and agreements with NMIC, other affiliates and subsidiaries
as a part of its ongoing operations. These include annuity and life insurance contracts, employee benefit plans, office space cost sharing arrangements, and agreements related to reinsurance, cost sharing, administrative services, marketing,
intercompany loans, intercompany repurchases, cash management services and software licensing. Measures used to allocate expenses among companies include individual employee estimates of time spent, special cost studies, the number of full-time
employees, commission expense and other methods agreed to by the participating companies. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In addition, Nationwide Services Company, LLC
(&#147;NSC&#148;), a subsidiary of NMIC, provides data processing, systems development, hardware and software support, telephone, mail and other services to the Company, based on specified rates for units of service consumed. For the years ended
December&nbsp;31, 2014, 2013 and 2012, the Company made payments to NMIC and NSC totaling $275 million, $277 million and $283 million, respectively. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company has issued group annuity and life insurance contracts and performs administrative services for various employee benefit plans
sponsored by NMIC or its affiliates. Total account values of these contracts were $3.3 billion as of December&nbsp;31, 2014 and 2013. Total revenues from these contracts were $131 million, $137 million and $140 million for the years ended
December&nbsp;31, 2014, 2013 and 2012, respectively, and include policy charges, net investment income from investments backing the contracts and administrative fees. Total interest credited to the account balances was $109 million for the years
ended December&nbsp;31, 2014 and 2013, and $113 million for the year ended December&nbsp;31, 2012. The terms of these contracts are materially consistent with what the Company offers to unaffiliated parties. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company has a cost sharing arrangement with NMIC to occupy office space. The Company made payments to NMIC of $16 million for the years
ended December&nbsp;31, 2014 and 2013, and $15 million for the year ended December&nbsp;31, 2012. In addition, an affiliate of NMIC has a cost sharing arrangement with the Company to occupy office space. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">NLIC has a reinsurance agreement with NMIC whereby all of NLIC&#146;s accident and health business not ceded to unaffiliated reinsurers is
ceded to NMIC on a modified coinsurance basis. Either party may terminate the agreement on January&nbsp;1 of any year with prior notice. Under a modified coinsurance agreement, the ceding company retains invested assets, and investment earnings are
paid to the reinsurer. Under the terms of NLIC&#146;s agreements, the investment risk associated with changes in interest rates is borne by the reinsurer. The ceding of risk does not discharge the original insurer from its primary obligation to the
policyholder. The Company believes that the terms of the modified coinsurance agreements are consistent in all material respects with what the Company could have obtained with unaffiliated parties. Revenues ceded to NMIC for the years ended
December&nbsp;31, 2014, 2013 and 2012 were $208 million, $179 million and $161 million, respectively, while benefits, claims and expenses ceded during these years were $217 million, $178 million and $167 million, respectively. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Funds of Nationwide Funds Group (&#147;NFG&#148;), an affiliate, are offered to the Company&#146;s customers as investment options in certain
of the Company&#146;s products. As of December&nbsp;31, 2014 and 2013, customer allocations to NFG funds totaled $58.1 billion and $53.2 billion, respectively. For the years ended December&nbsp;31, 2014, 2013 and 2012, NFG paid the Company $185
million, $163 million and $144 million, respectively, for the distribution and servicing of these funds. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Amounts on deposit with NCMC for
the benefit of the Company were $636 million and $228 million as of December&nbsp;31, 2014 and 2013, respectively. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Refer to Note 12 for
discussion of variable funding surplus note between Olentangy Reinsurance, LLC and Nationwide Corporation. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Nationwide Bank has a line of
credit agreement with NLIC that allows the Bank access to borrow up to $50 million from NLIC. The borrowing rate on the line of credit is equal to the daily Prime Rate. The Bank had no amounts outstanding under this agreement as of December&nbsp;31,
2014 and 2013. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Certain annuity products are sold through affiliated companies, which are also subsidiaries of NFS. Total commissions and
fees paid to these affiliates were $57 million for the year ended December&nbsp;31, 2014, and $54 million for the years ended December&nbsp;31, 2013 and 2012. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company provides financing to Nationwide Realty Investors, LTD, a subsidiary of NMIC. As of December&nbsp;31, 2014 and 2013, the Company
had notes receivable outstanding of $142 million and $146 million, respectively. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-40 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>


<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(16)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Contingencies </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Legal and Regulatory Matters </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company is subject to legal and regulatory proceedings in the ordinary course of its business. The Company&#146;s legal and regulatory
matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates. These matters are subject to many uncertainties, and given their complexity and
scope, their outcomes cannot be predicted. Regulatory proceedings could also affect the outcome of one or more of the Company&#146;s litigation matters. Furthermore, it is often not possible to determine the ultimate outcomes of the pending
regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to below, are in very preliminary stages, and the Company does not
have sufficient information to make an assessment of the plaintiffs&#146; claims for liability or damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the
event of certification) the size of the class and class period. In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and
cannot be defined based on the information currently available. The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse
effect on the Company&#146;s consolidated financial position. Nonetheless, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could
materially affect the Company&#146;s consolidated financial position or results of operations in a particular quarter or annual period. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not
limited to the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the IRS and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or
targeted inquiries, examinations and investigations of the Company and/or its affiliates. The financial services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such
scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The Company will cooperate with NMIC insofar as any inquiry, examination or investigation encompasses NMIC&#146;s operations. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">On August&nbsp;15, 2001, NFS and NLIC were named in a lawsuit filed in the United States District Court for the District of Connecticut
entitled Lou Haddock, as trustee of the <I>Flyte Tool&nbsp;&amp; Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company</I>. On November&nbsp;18, 2009, the plaintiffs filed a
sixth amended complaint amending the list of named plaintiffs and claiming to represent a class of qualified retirement plan trustees under the Employee Retirement Income Security Act of 1974 (&#147;ERISA&#148;) that purchased variable annuities
from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks
damages in an amount equivalent to some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and injunctive relief and attorneys&#146; fees. On November&nbsp;6, 2009, the Court granted the
plaintiffs&#146; motion for class certification. On October&nbsp;21, 2010, the District Court dismissed NFS from the lawsuit. On February&nbsp;6, 2012, the Second Circuit Court of Appeals vacated the November&nbsp;6, 2009 order granting class
certification and remanded the case back to the District Court for further consideration. On September&nbsp;6, 2013, the District Court granted the plaintiffs&#146; motion for class certification. On December&nbsp;11, 2014, the plaintiffs filed a
seventh amended complaint adding another sub class of defendants that held trust platform products. On December&nbsp;11, 2014, the plaintiffs filed a motion for preliminary approval of settlement. On January&nbsp;5, 2015, the Court signed the Order
Preliminarily Approving Settlement and Approving Form and Manner of Notice. A Fairness Hearing has been set for March&nbsp;31, 2015. NLIC has made adequate provision for all probable and reasonably estimable losses associated with this settlement.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Lehman Brothers Holdings, Inc. (Debtors) and Giddens, James v NLIC and NMIC, et al</I>. In 2012, the Plaintiff, Debtor in Possession
Lehman Brothers Special Financing, Inc., filed a class action in the United States Bankruptcy Court for the Southern District of New York seeking the recovery of certain assets from approximately 200 defendants, including NLIC and NMIC (the
&#147;Distributed Action&#148;). The claims against NLIC and NMIC arise from the bankruptcy filings in 2008 of the Plaintiff and its parent company, Lehman Brothers Holding, Inc., which triggered the early termination of two collateralized debt
obligation transactions, resulting in payments to NLIC and NMIC. The Plaintiff seeks to have certain sums returned to the bankruptcy estate in addition to prejudgment interest and costs. In 2013, Plaintiff sent correspondence to all defendants
inviting settlement discussions and served NMIC and NLIC with a &#147;SPV Derivatives ADR Notice,&#148; formally starting the Alternative Dispute Resolution process. NMIC and NLIC responded, taking part in the ADR process, including a mediation. On
July&nbsp;17, 2014, the parties reached a settlement of this matter. On December&nbsp;8, 2014, the settlement agreements were finalized and executed. Nationwide has issued the settlement payment, was dismissed from the case with prejudice on
December&nbsp;31, 2014, and this matter will shortly be closed. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-41 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Indemnifications </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In the normal course of business, the Company provides standard indemnifications to contractual counterparties. The types of indemnifications
typically provided include breaches of representations and warranties, taxes and certain other liabilities, such as third party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of
business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated, and the contingencies triggering the obligation to
indemnify have not occurred and are not expected to occur. Consequently, the amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Tax Matters </I></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The
Company&#146;s federal income tax returns are routinely audited by the IRS. The Company has established tax reserves as described in Note 2. The Company believes its tax reserves reasonably provide for potential assessments that may result from IRS
examinations and other tax-related matters for all open tax years. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(17)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Reinsurance </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The following table summarizes the effects of reinsurance on life, accident and health insurance in force and premiums for
the years ended: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="70%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">December&nbsp;31,</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2014</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2013</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">2012</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Premiums</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Direct</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,178</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,015</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">890</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Assumed from other companies</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Ceded to other companies</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(347</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(291</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(255</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">831</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">724</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">635</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Life, accident and health insurance in force</B></P></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 BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Direct</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">241,936</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">228,095</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">216,002</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Assumed from other companies</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Ceded to other companies</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(59,588</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(58,310</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(59,895</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Net</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">182,353</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">169,791</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">156,112</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Amounts recoverable under reinsurance contracts totaled $704 million, $675 million and $684 million as of
December&nbsp;31, 2014, 2013 and 2012, respectively, and are included in other assets in the consolidated balance sheets. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>(18)</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Segment Information </B></TD></TR></TABLE>
 <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Management views the Company&#146;s business primarily based on its underlying products and uses this basis to define its
four reportable segments: Individual Products and Solutions-Annuity (formerly named Individual Investments), Retirement Plans, Individual Products and Solutions-Life and NBSG (formerly named Individual Protection) and Corporate and Other. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The primary segment profitability measure that management uses is a non-GAAP financial measure called pre-tax operating earnings (loss), which
is calculated by adjusting income before federal income taxes to exclude: (1)&nbsp;net realized investment gains and losses, except for operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net
realized gains and losses related to hedges on GMDB contracts); (2)&nbsp;the adjustment to amortization of DAC and other related expenses related to net realized investment gains and losses; and (3)&nbsp;net losses attributable to noncontrolling
interest. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Due to a change in the manner in which we view our reportable segments, certain prior period amounts have been restated. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-42 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Individual Products and Solutions-Annuity </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Individual Products&nbsp;&amp; Solutions - Annuity segment consists of individual annuity products marketed under the Nationwide
Destination<SUP STYLE="font-size:85%; vertical-align:top">SM</SUP> and other Nationwide-specific or private label brands. Deferred annuity contracts provide the customer with tax-deferred accumulation of savings and flexible payout options including
lump sum, systematic withdrawal or a stream of payments for life. In addition, deferred variable annuity contracts provide the customer with access to a wide range of investment options and asset protection features, while deferred fixed annuity
contracts generate a return for the customer at a specified interest rate fixed for prescribed periods. Immediate annuities differ from deferred annuities in that the initial premium is exchanged for a stream of income for a certain period and/or
for the owner&#146;s lifetime without future access to the original investment. The majority of assets and recent sales for the Individual Products&nbsp;&amp; Solutions - Annuity segment consist of deferred variable annuities. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Retirement Plans </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Retirement Plans segment is comprised of the private and public sector retirement plans businesses. The private sector business primarily
includes Internal Revenue Code (&#147;IRC&#148;) Section&nbsp;401 qualified plans funded through fixed and variable group annuity contracts issued through NLIC. The public sector business primarily includes IRC Section&nbsp;457 (b)&nbsp;and
Section&nbsp;401(a) governmental plans, both in the form of full-service arrangements that provide plan administration along with fixed and variable group annuities, as well as administration-only business. Across the public and private sector
business Nationwide Investment Advisors managed account services are also available. The Retirement Plans segment also includes stable value wrap products and solutions. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Individual Products and Solutions-Life and NBSG </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Individual Products&nbsp;&amp; Solutions - Life and NBSG segment consists of life insurance products, including individual variable
universal life, COLI and BOLI products, traditional life insurance products, fixed universal life insurance products and indexed universal life insurance products. Life insurance products provide a death benefit and, for certain products, allow the
customer to build cash value on a tax-advantaged basis. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Corporate and Other </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Corporate and Other segment includes non-operating realized gains and losses and related amortization, including mark-to-market adjustments
on embedded derivatives, net of economic hedges, related to products with living benefits included in the Individual Products&nbsp;&amp; Solutions - Annuity segment, other-than-temporary impairment losses, and other revenues and expenses not
allocated to other segments. Additionally, this segment includes the funding agreements with the FHLB, as well as the medium-term note (&#147;MTN&#148;) program that concluded in the fourth quarter of 2012. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-43 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The following tables summarize the Company&#146;s business segment operating results for the
years ended: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="59%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Individual<BR>Products&nbsp;and<BR>Solutions-<BR>Annuity</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Retirement<BR>Plans</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Individual<BR>Products&nbsp;and<BR><FONT STYLE="white-space:nowrap">Solutions-Life</FONT><BR>and NBSG</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Corporate<BR>and Other</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2014</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Revenues:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy charges</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,175</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">107</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">783</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,065</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Premiums</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">518</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">284</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">29</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">831</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net investment income</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">546</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">750</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">565</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">39</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,900</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Non-operating net realized investment losses, including other-than-temporary impairment losses<SUP
STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1,051</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(1,051</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other revenues<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(38</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">12</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(16</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total revenues</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,201</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">857</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,644</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(973</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,729</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Benefits and expenses:</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Interest credited to policyholder accounts</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">370</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">482</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">231</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">13</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,096</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Benefits and claims</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">828</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">644</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">30</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,502</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortization of DAC</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">120</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(28</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">122</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(7</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">207</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other expenses, net of deferrals</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">300</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">153</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">348</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">254</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,055</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total benefits and expenses</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,618</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">607</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,345</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">290</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,860</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Income before federal income taxes and noncontrolling interests</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">583</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">250</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">299</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(1,263</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(131</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-3.00em; font-size:10pt; font-family:Times New Roman">Less:&nbsp;&nbsp;&nbsp;&nbsp;non-operating net realized investment losses, including other-than-temporary impairment losses<SUP
STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,051</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-3.00em; font-size:10pt; font-family:Times New Roman">Less:&nbsp;&nbsp;&nbsp;&nbsp;adjustment to amortization of DAC and other related expenses related to net realized investment gains and
losses</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(11</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-3.00em; font-size:10pt; font-family:Times New Roman">Less:&nbsp;&nbsp;&nbsp;&nbsp;net loss attributable to noncontrolling interest</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">94</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Pre-tax operating earnings (loss)</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">583</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">250</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">299</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(129</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Assets as of year end</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">72,429</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">30,744</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">29,322</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">11,029</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">143,524</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts). </TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Includes operating items discussed above. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-44 </P>


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<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>

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<TD></TD>
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<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Individual<BR>Products&nbsp;and<BR>Solutions-<BR>Annuity</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Retirement<BR>Plans</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Individual<BR>Products&nbsp;and<BR><FONT STYLE="white-space:nowrap">Solutions-Life</FONT><BR>and NBSG</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Corporate<BR>and Other</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2013</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
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<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Revenues:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy charges</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,021</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">101</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">727</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,849</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Premiums</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">416</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">282</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">724</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net investment income</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">546</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">743</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">544</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,849</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Non-operating net realized investment gains, including other-than-temporary impairment losses<SUP
STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">783</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">783</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other revenues<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(109</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">15</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(88</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total revenues</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,874</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">844</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,559</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">840</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5,117</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Benefits and expenses:</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Interest credited to policyholder accounts</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">377</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">473</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">213</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,067</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Benefits and claims</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">694</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">636</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">24</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,354</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortization of DAC</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">185</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">125</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">66</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">374</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other expenses, net of deferrals</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">295</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">151</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">347</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">188</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">981</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total benefits and expenses</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,551</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">622</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,321</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">282</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,776</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Income before federal income taxes and noncontrolling interests</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">323</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">222</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">238</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">558</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,341</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-3.00em; font-size:10pt; font-family:Times New Roman">Less:&nbsp;&nbsp;&nbsp;&nbsp;non-operating net realized investment gains, including other-than-temporary impairment losses<SUP
STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(783</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-3.00em; font-size:10pt; font-family:Times New Roman">Less:&nbsp;&nbsp;&nbsp;&nbsp;adjustment to amortization of DAC and other related expenses related to net realized investment gains and
losses</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">70</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-3.00em; font-size:10pt; font-family:Times New Roman">Less:&nbsp;&nbsp;&nbsp;&nbsp;net loss attributable to noncontrolling interest</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">82</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Pre-tax operating earnings (loss)</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">323</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">222</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">238</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(73</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Assets as of year end</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">68,805</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">29,904</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">27,183</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7,553</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">133,445</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts). </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Includes operating items discussed above. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-45 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="60%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.20pt; font-size:8pt; font-family:Times New Roman"><I>(in millions)</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Individual<BR>Products&nbsp;and<BR>Solutions-<BR>Annuity</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Retirement<BR>Plans</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Individual<BR>Products&nbsp;and<BR><FONT STYLE="white-space:nowrap">Solutions-Life</FONT><BR>and NBSG</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Corporate<BR>and Other</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Total</TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2012</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Revenues:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy charges</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">899</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">94</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">677</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,670</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Premiums</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">334</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">274</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">27</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">635</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Net investment income</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">551</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">736</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">534</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">4</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,825</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Non-operating net realized investment gains, including of other-than-temporary impairment losses<SUP
STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">427</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">427</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other revenues<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(124</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">23</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(101</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total revenues</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,660</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">830</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,485</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">481</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,456</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Benefits and expenses:</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Interest credited to policyholder accounts</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">375</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">457</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">199</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">7</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,038</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Benefits and claims</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">613</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">588</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,227</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortization of DAC</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">185</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">14</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">150</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">226</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">575</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other expenses, net of deferrals</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">266</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">164</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">307</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">180</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">917</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total benefits and expenses</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,439</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">635</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,244</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">439</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,757</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Income before federal income taxes and noncontrolling interests</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">221</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">195</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">241</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">42</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">699</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-3.00em; font-size:10pt; font-family:Times New Roman">Less:&nbsp;&nbsp;&nbsp;&nbsp;non-operating net realized investment gains, including other-than-temporary impairment losses<SUP
STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(427</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-3.00em; font-size:10pt; font-family:Times New Roman">Less:&nbsp;&nbsp;&nbsp;&nbsp;adjustment to amortization of DAC and other related expenses related to net realized investment gains and
losses</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">243</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-3.00em; font-size:10pt; font-family:Times New Roman">Less:&nbsp;&nbsp;&nbsp;&nbsp;net loss attributable to noncontrolling interest</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">61</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Pre-tax operating earnings (loss)</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">221</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">195</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">241</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(81</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Assets as of year end</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">58,707</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">27,842</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">25,301</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">8,320</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">120,170</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts). </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Includes operating items discussed above. </TD></TR></TABLE>

 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-46 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Schedule I Consolidated Summary of Investments &#150; Other Than Investments in Related Parties </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>As of December&nbsp;31, 2014 (in millions) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="92%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="70%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:35.35pt; font-size:8pt; font-family:Times New Roman"><B>Column A</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column&nbsp;B</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column&nbsp;C</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column D</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:65.25pt; font-size:8pt; font-family:Times New Roman"><B>Type of investment</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Cost</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Fair value</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Amount&nbsp;at<BR>which&nbsp;shown<BR>in the<BR>consolidated<BR>balance&nbsp;sheet</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Fixed maturity securities, available-for-sale:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Bonds:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">U.S. government and agencies</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">448</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">527</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">527</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Obligations of states, political subdivisions and foreign governments</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,966</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,285</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,285</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Public utilities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,969</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,228</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">3,228</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">All other corporate, mortgage-backed and asset-backed securities</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">27,815</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">29,378</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">29,378</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total fixed maturity securities, available-for-sale</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">33,198</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35,418</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35,418</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Equity securities, available-for-sale:</P></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 BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Common stocks:</P></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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:5.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Industrial, miscellaneous and all other</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Nonredeemable preferred stocks</P></TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total equity securities, available-for-sale</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">21</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">21</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Trading assets</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">20</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">21</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">21</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Mortgage loans, net of allowance</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">7,296</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><SUP STYLE="font-size:85%; vertical-align:top"></SUP>&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">7,270<SUP STYLE="font-size:85%; vertical-align:top"></SUP></TD>
<TD NOWRAP VALIGN="bottom"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Policy loans</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">992</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">992</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Other investments</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">780</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">780</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Short-term investments</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">935</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">935</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:7.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total investments</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">43,227</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">45,437</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Difference from Column B primarily is attributable to valuation allowances due to impairments on mortgage loans (see Note 6 to the audited consolidated financial statements). </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">See accompanying notes to consolidated financial statements and report of independent registered public accounting firm. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-47 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Schedule III Supplementary Insurance Information </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>As
of December&nbsp;31, 2014, 2013 and 2012 and for each of the years then ended (in millions) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="47%"></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:35.35pt; font-size:8pt; font-family:Times New Roman"><B>Column A</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column B</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column&nbsp;C</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column D</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column&nbsp;E</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column&nbsp;F</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:50.85pt; font-size:8pt; font-family:Times New Roman"><B>Year: Segment</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Deferred<BR>policy<BR>acquisition<BR>costs</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Future&nbsp;policy<BR>benefits,&nbsp;losses,<BR>claims and<BR>loss&nbsp;expenses</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Unearned<BR>premiums<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Other&nbsp;policy<BR>claims&nbsp;and<BR>benefits&nbsp;payable<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Premium<BR>revenue</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2014</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Annuity</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,495</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">12,619</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">518</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Retirement Plans</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">216</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">14,905</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Life and NBSG</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,717</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10,763</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">284</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate and Other</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(365</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2,443</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">29</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">4,063</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">40,730</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">831</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2013</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Annuity</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,214</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">10,985</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</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" ALIGN="right">416</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Retirement Plans</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">179</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">14,313</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</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 NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Life and NBSG</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,557</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10,068</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</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">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">282</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate and Other</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(172</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,399</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</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">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,778</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36,765</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">724</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2012</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Annuity</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,110</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">12,214</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</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" ALIGN="right">334</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Retirement Plans</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">168</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">13,628</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</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 NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Life and NBSG</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">1,442</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">9,564</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</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">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">301</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate and Other</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(471</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">748</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</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 NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">3,249</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">36,154</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">635</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:35.35pt; font-size:8pt; font-family:Times New Roman"><B>Column A</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column G</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column H</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column I</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column J</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column&nbsp;K</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:50.85pt; font-size:8pt; font-family:Times New Roman"><B>Year: Segment</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Net<BR>investment<BR>income<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Benefits,&nbsp;claims,<BR>losses and<BR>settlement&nbsp;expenses</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Amortization<BR>of&nbsp;deferred&nbsp;policy<BR>acquisition&nbsp;costs</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Other<BR>operating<BR>expenses<SUP STYLE="font-size:85%; vertical-align:top">2</SUP></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Premiums<BR>written</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2014</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Annuity</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">546</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,198</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">120</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">300</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Retirement Plans</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">750</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">482</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(28</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">153</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Life and NBSG</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">565</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">875</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">122</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">348</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate and Other</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">39</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">43</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(7</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">254</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,900</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,598</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">207</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,055</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2013</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Annuity</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">546</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,071</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">185</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">295</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Retirement Plans</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">743</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">473</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(2</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">151</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Life and NBSG</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">544</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">849</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">125</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">347</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate and Other</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">16</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">28</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">66</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">188</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,849</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,421</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">374</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">981</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2012</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Annuity</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">551</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">988</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">185</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">266</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Retirement Plans</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">736</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">457</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">14</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">164</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">IPS - Life and NBSG</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">536</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">787</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">150</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">307</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Corporate and Other</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">2</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">33</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">226</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">180</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,825</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">2,265</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">575</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">917</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Unearned premiums and other policy claims and benefits payable are included in Column C amounts. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Allocations of net investment income and certain operating expenses are based on numerous assumptions and estimates, and reported segment operating results would change if different methods were applied.
</TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">See accompanying notes to consolidated financial statements and report of independent registered public accounting firm. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-48 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Schedule IV Reinsurance </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>As of December&nbsp;31, 2014,
2013 and 2012 and for each of the years then ended (in millions) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
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<TD></TD>
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<TD></TD>
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<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:35.35pt; font-size:8pt; font-family:Times New Roman"><B>Column A</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column B</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column C</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column D</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column E</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column F</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Gross<BR>amount</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Ceded to<BR>other<BR>companies</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Assumed<BR>from&nbsp;other<BR>companies</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Net<BR>amount</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Percentage<BR>of amount<BR>assumed<BR>to net</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2014</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Life, accident and health insurance in force</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">241,936</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(59,588</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">182,353</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Premiums:</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Life insurance<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">888</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(57</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">831</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Accident and health insurance</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">290</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(290</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,178</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(347</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">831</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2013</P></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>
<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 STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Life, accident and health insurance in force</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">228,095</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(58,310</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">6</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">169,791</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Premiums:</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Life insurance<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">783</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(59</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">724</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Accident and health insurance</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">232</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(232</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1,015</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(291</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">724</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2012</P></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>
<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 STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Life, accident and health insurance in force</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">216,002</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(59,895</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">156,112</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Premiums:</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Life insurance<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">701</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(66</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">635</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Accident and health insurance</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">189</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">(189</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:1.00px solid #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Total</B></P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">890</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(255</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">635</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Primarily represents premiums from traditional life insurance and life-contingent immediate annuities and excludes deposits on investment and universal life insurance products. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">See accompanying notes to consolidated financial statements and report of independent registered public accounting firm. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-49 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(a wholly-owned subsidiary of Nationwide Financial Services, Inc.) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Schedule V Valuation and Qualifying Accounts </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Years
ended December&nbsp;31, 2014, 2013 and 2012 (in millions) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


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<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="6%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="6%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:35.35pt; font-size:8pt; font-family:Times New Roman"><B>Column A</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column B</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column C</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column D</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Column E</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman"><B>Description</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Balance&nbsp;at<BR>beginning<BR>of period</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Charged&nbsp;to<BR>costs and<BR>expenses</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Charged&nbsp;to<BR>other<BR>accounts</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Deductions<SUP STYLE="font-size:85%; vertical-align:top">1</SUP></B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Balance&nbsp;at<BR>end of<BR>period</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2014</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Valuation allowances - mortgage loans</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(8</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">26</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2013</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;&nbsp;</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>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Valuation allowances - mortgage loans</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">44</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">(4</TD>
<TD NOWRAP VALIGN="bottom">)&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">5</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">35</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">2012</P></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>
<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 STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Valuation allowances - mortgage loans</P></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">60</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">1</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD NOWRAP VALIGN="bottom">$</TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right">&#151;&nbsp;&nbsp;</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">17</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">$</TD>
<TD VALIGN="bottom" ALIGN="right">44</TD>
<TD NOWRAP VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-size:1px; ">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD VALIGN="bottom"> <P STYLE="border-top:3.00px double #000000">&nbsp;</P></TD>
<TD>&nbsp;</TD></TR>
</TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:85%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Amounts generally represent payoffs, sales and recoveries. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">See accompanying notes to consolidated financial
statements and report of independent registered public accounting firm. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">F-50 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:14pt;font-style:Normal;font-weight:bold;line-height:17pt;margin-top:13pt;text-align:center;text-decoration:none;text-transform:uppercase;">PART II</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">INFORMATION NOT REQUIRED IN A PROSPECTUS</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:7pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:10.54%;">Item 13.
</TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:89.46%; ">Other Expenses of Issuance and
Distribution </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Not Applicable</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:7pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:10.54%;">Item 14.
</TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:89.46%; ">Indemnification of Directors
and Officers </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Ohio's General
Corporation Law expressly authorizes and Nationwide's Amended and Restated Code of Regulations provides for indemnification by Nationwide of any person who, because such person is or was a director, officer or employee of Nationwide, was or is a
party, or is threatened to be made a party to:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:4pt;width:96.67%;" cellpadding="1" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">any threatened, pending or
completed civil action, suit or proceeding; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">any threatened, pending or
completed criminal action, suit or proceeding; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:99.04%; ">any threatened, pending or
completed administrative action or proceeding; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:13pt;font-style:Normal;font-weight:Normal;line-height:16pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:0.96%;">&#8226;
<FONT style="padding-left:12pt;"></FONT> </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:99.04%;">any
threatened, pending or completed investigative action or proceeding. </TD></TR></TABLE> </DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The indemnification will be for actual and reasonable
expenses, including attorney's fees, judgments, fines and amounts paid in settlement by such person in connection with such action, suit or proceeding, to the extent and under the circumstances permitted by Ohio's General Corporation Law. Nationwide
has been informed that in the opinion of the Securities and Exchange Commission, the indemnification of directors, officers or persons controlling Nationwide for liabilities arising under the Securities Act of 1933 ("Act") is against public policy
as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities is asserted by a director, officer or controlling person in connection with the securities being registered, the
registrant will submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act. Nationwide and its directors, officers and/or controlling persons will be governed by the
final adjudication of such issue. Nationwide will not be required to seek the court's determination if, in the opinion of Nationwide's counsel, the matter has been settled by controlling precedent.</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">However, the payment by the registrant of expenses incurred or
paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding is permitted.</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:7pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:10.54%;">Item 15.
</TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:89.46%; ">Recent Sales of Unregistered
Securities. </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">Not Applicable</DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%;" cellpadding="7" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:10.54%;">Item 16.
</TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:89.46%; ">Exhibits and Financial
Statement Schedules </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:2.77%;">(a)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:97.23%;">Exhibits
 </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:120.5pt;margin-top:0pt;width:78.37%;" cellpadding="2" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(1)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Form of Underwriting
Agreement - filed previously on October 2, 2008, with Pre-Effective Amendment 3 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-149613. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(2)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Articles of Merger of
Nationwide Life Insurance Company of America with and into Nationwide Life Insurance Company effective December 4, 2009 &#8211; filed previously on January 4, 2010, with N-4 Registration No. 333-164125. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(3)(i)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Amended Articles of
Incorporation Nationwide Life Insurance Company - filed previously on October 2, 2008, with Pre-Effective Amendment 3 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-149613. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(3)(ii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Nationwide Life Insurance
Company Amended and Restated Code of Regulations - filed previously on January 4, 2010, with N-4 Registration No. 333-164125. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(4)(i)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Individual Single Purchase
Payment Immediate Fixed Income Annuity Non-Participating Contract - filed previously on February 10, 2009 with Pre-Effective Amendment 1 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-155368. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:13.44%;">(4)(ii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:86.56%;">Form of
Supplemental Option To The Individual Single Purchase Payment Immediate Fixed Income Annuity - filed previously on February 10, 2009 with Pre-Effective Amendment 1 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-155368.
</TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;"> </DIV> </DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:21.63%;margin-top:0pt;width:78.37%;" cellpadding="2" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(4)(iii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Form of Application for
Individual Single Purchase Payment Immediate Fixed Income Annuity - filed previously on February 10, 2009 with Pre-Effective Amendment 1 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-155368. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(5)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Opinion Regarding Legality
&#8211; Attached hereto. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(6)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(7)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(8)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:86.56%;">None.
</TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(9)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(10)(i)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Form of Administrative
Services Agreement &#8211; filed previously on February 10, 2009 with Pre-Effective Amendment 1 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-155368. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(10)(ii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Tax Sharing Agreement dated
as of January 2, 2009 between Nationwide Life Insurance Company and any corporation that is or may hereafter become a subsidiary of Nationwide Life Insurance Company &#8211; filed previously on March 27, 2012 with Post-Effective Amendment No. 5 to
Form S-1 for Nationwide Life Insurance Company, Registration No. 333-155368. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(11)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(12)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(13)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(14)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(15)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(16)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(17)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(18)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(19)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(20)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(21)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Subsidiaries of the
Registrant - Attached hereto. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(22)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(23)(i)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Consent of Independent
Registered Public Accounting Firm - Attached hereto. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(23)(ii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Consent of Counsel - See
Exhibit 5. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(24)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Power of Attorney - Attached
hereto. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(25)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(26)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(27)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">Not applicable </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(101.INS)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">XBRL Instance Document -
Attached hereto. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(101.SCH)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">XBRL Taxonomy Extension
Schema - Attached hereto. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(101.CAL)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">XBRL Taxonomy Extension
Calculation Linkbase - Attached hereto. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(101.DEF)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">XBRL Taxonomy Extension
Definition Linkbase - Attached hereto. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:13.44%;">(101.LAB)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:86.56%; ">XBRL Taxonomy Extension
Label Linkbase - Attached hereto. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:13.44%;">(101.PRE)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:86.56%;">XBRL
Taxonomy Extension Presentation Linkbase - Attached hereto. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:7pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:2.77%;">(b)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:97.23%; ">Financial Statement Schedules
</TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;padding-left:3.33%;text-align:left;text-decoration:none;text-transform:none;">Attached
herein.</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:7pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:10.54%;">Item 17.
</TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;white-space:nowrap; width:89.46%;">Undertakings
 </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">The undersigned registrant hereby
undertakes:</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:3.33%;margin-top:7pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.31%;">(a)(1)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.69%; ">To file, during any period
in which offers or sales are being made, a post-effective amendment to this registration statement: </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:84pt;margin-top:2pt;width:84.47%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:7.22%;">(i)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:92.78%; ">To include any prospectus
required by section 10(a)(3) of the Securities Act of 1933; </TD></TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;"></DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <DIV style="width:100%;"><DIV style="width:100%;"> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:15.53%;margin-top:0pt;width:84.47%;" cellpadding="2" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:7.22%;">(ii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:92.78%; ">To reflect in the prospectus
any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the
registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end
of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:7.22%;">(iii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:92.78%;">To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. </TD></TR></TABLE> </DIV>
<DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:52pt;margin-top:0pt;width:90.57%;" cellpadding="2" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.73%;">(2)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.27%; ">That, for the purpose of
determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.73%;">(3)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.27%; ">To remove from registration
by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.73%;">(4)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.27%; ">That, for the purpose of
determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or
prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time
of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first
use. </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:6.73%;">(5)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:93.27%;">That, for
the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned Registrant undertakes that in a primary offering of securities of the undersigned
Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the
undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:16.16%;margin-top:0pt;width:84.47%;" cellpadding="2" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:7.22%;">(i)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:92.78%; ">Any preliminary prospectus
or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:7.22%;">(ii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:92.78%; ">Any free writing prospectus
relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned Registrant; </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:7.22%;">(iii)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:92.78%; ">The portion of any other
free writing prospectus relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and </TD></TR>
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;white-space:nowrap;width:7.22%;">(iv)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none; vertical-align:top;width:92.78%;">Any other
communication that is an offer in the offering made by the undersigned Registrant to the purchaser. </TD></TR></TABLE> </DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:19pt;margin-top:2pt;width:96.67%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:0pt;padding-right:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; white-space:nowrap;width:6.31%;">(b)
 </TD>
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:93.69%; ">Insofar as indemnification
for liabilities arising under the Securities Act of 1933 ("Act") may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the Registrant of expenses incurred or paid by a director, officers or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final adjudication of such issue.</TD> </TR></TABLE> </DIV> </DIV> <DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;text-align:center;text-decoration:none;text-transform:none;"></DIV> </DIV>
</DIV><DIV style="clear:both;font-size:12pt;height:0pt;"></DIV> <HR> <P style="page-break-before:none;">
<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <DIV style="width:100%;"><DIV style="width:100%;">
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:bold;line-height:13pt;margin-top:7pt;text-align:center;text-decoration:none;text-transform:none;">SIGNATURES</DIV>
<DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As required by the Securities Act of 1933, the Registrant
certifies that it has caused this Registration Statement to be signed by the undersigned, duly authorized, in the City of Columbus, and State of Ohio, on March 27, 2015.</DIV> <DIV style="text-align:right;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-left:auto;margin-top:18pt;width:47.13%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2pt;padding-left:0pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;width:100%;">NATIONWIDE
 LIFE INSURANCE COMPANY </TD></TR>
<TR bgcolor="#FFFFFF" style="height:14.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:3pt;padding-left:0pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;white-space:nowrap;width:100%;">(Registrant)
 </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2pt;padding-left:0pt;padding-top:3pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;width:100%;">By:
 /s/ JAMIE RUFF CASTO </TD></TR>
<TR bgcolor="#FFFFFF">
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:3pt;padding-left:0pt;padding-top:4.25pt;text-align:left;text-decoration:none; text-transform:none;vertical-align:top;width:100%;">Jamie
 Ruff Casto<BR> Attorney-in-Fact </TD></TR></TABLE> </DIV> <DIV style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;margin-top:6pt;text-align:left;text-decoration:none;text-transform:none;">As
required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated, on March 27, 2015.</DIV> <DIV style="text-align:left;">
<TABLE style="border-collapse:collapse;empty-cells:show;margin-top:6pt;width:100%;" cellpadding="0" cellspacing="0">
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2pt;padding-left:0pt;padding-right:18.5pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:50.0%;">KIRT
 A. WALKER </TD>
<TD style="padding-bottom:2pt;padding-top:3pt;text-align:left;vertical-align:top;width:53.42%;">&#160; </TD></TR>
<TR bgcolor="#FFFFFF" style="height:26.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:3pt;padding-left:0pt;padding-right:18.5pt;padding-top:4.25pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;width:50.0%;">Kirt
 A. Walker, President and Chief Operating Officer, and Director </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:53.42%;">&#160; </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2pt;padding-left:0pt;padding-right:18.5pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:50.0%;">MARK
 R. THRESHER </TD>
<TD style="padding-bottom:2pt;padding-top:3pt;text-align:left;vertical-align:top;width:53.42%;">&#160; </TD></TR>
<TR bgcolor="#FFFFFF" style="height:14.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:3pt;padding-left:0pt;padding-right:18.5pt;padding-top:4.25pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;width:50.0%;">Mark
 R. Thresher, Executive Vice President and Director </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:53.42%;">&#160; </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2pt;padding-left:0pt;padding-right:18.5pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:50.0%;">TIMOTHY
 G. FROMMEYER </TD>
<TD style="padding-bottom:2pt;padding-top:3pt;text-align:left;vertical-align:top;width:53.42%;">&#160; </TD></TR>
<TR bgcolor="#FFFFFF" style="height:26.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:3pt;padding-left:0pt;padding-right:18.5pt;padding-top:4.25pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;width:50.0%;">Timothy
 G. Frommeyer, Senior Vice President-Chief Financial Officer and Director </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:53.42%;">&#160; </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2pt;padding-left:0pt;padding-right:18.5pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:50.0%;">ERIC
 S. HENDERSON </TD>
<TD style="padding-bottom:2pt;padding-top:3pt;text-align:left;vertical-align:top;width:53.42%;">&#160; </TD></TR>
<TR bgcolor="#FFFFFF" style="height:26.25pt;">
<TD style="color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:3pt;padding-left:0pt;padding-right:18.5pt;padding-top:4.25pt;text-align:left; text-decoration:none;text-transform:none;vertical-align:top;width:50.0%;">Eric
 S. Henderson, Senior Vice President - Individual Products &amp; Solutions and Director </TD>
<TD style="padding-bottom:3pt;padding-top:4.25pt;text-align:left;vertical-align:top;width:53.42%;">&#160; </TD></TR>
<TR>
<TD style="border-bottom:0.5pt solid #000000;color:#000000;font-family:Arial;font-size:10pt;font-style:Normal;font-weight:Normal;line-height:13pt;padding-bottom:2pt;padding-left:0pt;padding-right:18.5pt;padding-top:3pt; text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:50.0%;">JOHN
 L. CARTER </TD>
<TD style="padding-bottom:2pt;padding-top:3pt;text-align:left;vertical-align:top;width:53.42%;">&#160; </TD></TR>
<TR bgcolor="#FFFFFF" style="height:26.25pt;">
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S-1
Table of Contents
1933 Act File No. 333-
United States Securities and Exchange Commission
Washington, D.C. 20549
Form S-1
Registration Statement
Under
The Securities Act of 1933
Nationwide Life Insurance Company
(Exact name of registrant as specified in its charter)
OHIO
6311
31-4156830
(State
 or other jurisdiction of
incorporation or organization)
(Primary
 Standard Industrial
Classification Code Number)
(I.R.S.
 Employer
Identification Number)
One Nationwide Plaza, Columbus, Ohio 43215
(Address, including zip code, and telephone number, including area code,
of registrant's principal executive offices)
Robert W.
Horner, III
Vice President – Corporate Governance and
Secretary
One Nationwide Plaza
Columbus, Ohio 43215
Telephone: (614) 249-7111
(Name, address, including zip code, and telephone number, including area
code, of agent for service)
Approximate date of commencement of proposed sale to the public:
As soon as practicable after the effective date of this registration statement.
If any of the securities being registered on this Form are to
be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.
☑
If the registrant elects to deliver its latest annual report
to security holders, or a complete and legible facsimile thereof, pursuant to Item 11(a)(1) of this Form, check the following box.
□
If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
□
If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
□
If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
□
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
□
Large
accelerated filer
□
Accelerated
 filer
□
Non-accelerated
 filer (Do not check if a smaller reporting company)
☑
Smaller
reporting Company
□
Table of Contents
CALCULATION OF REGISTRATION FEE
Title
 of Each Class of
Securities to be Registered
Amount
 to be
Registered
Proposed
Maximum Offering
Price Per Unit
Proposed
Maximum Aggregate
Offering Price
Amount
 of
Registration Fee
Flexible
 Purchase Payment
Modified Guaranteed Annuity Contracts
N/A
1
N/A
1
$5,000,000
$581
1
The amount to be registered
and the proposed maximum offering price per unit are not applicable in that these contracts are not issued in predetermined amounts or units. The proposed maximum aggregate offering price is estimated solely for the purpose of determining the
registration fee. The Registrant filed a registration statement on Form S-1 (333-155368) on November 14, 2008 ("Prior Registration Statement"). Pursuant to Rule 415(a)(6) under the Securities Act of 1933, the Prior Registration Statement will be
deemed terminated as of the date of effectiveness of this Registration Statement.
The Registrant hereby amends this Registration Statement on such
date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.
Table of Contents
Select Retirement
INDIVIDUAL SUPPLEMENTAL IMMEDIATE FIXED INCOME
ANNUITY
CONTRACT
Issued by
NATIONWIDE LIFE INSURANCE COMPANY
The date of this prospectus is May 1,
2015.
This prospectus describes Select Retirement, individual
supplemental immediate fixed income annuity contracts (referred to as "Contracts") issued by Nationwide Life Insurance Company ("Nationwide"), which are offered to investors with Morgan Stanley Smith Barney LLC, its affiliates, or any successors
(collectively, "MSSB"). The Contract provides for guaranteed income for the life of a designated person based on the Contract Owner's account at MSSB, provided all conditions specified in this prospectus are met, regardless of the actual performance
or value of the investments in Your Account.
The
 Contract has no cash surrender value and does not provide a death benefit.
Prospective purchasers may apply to purchase a Contract
through MSSB broker dealers who have entered into a selling agreement with Nationwide Investment Services Corporation ("NISC"), a subsidiary of Nationwide that acts as the general distributor of the Contracts sold through this prospectus.
This prospectus provides important information that a
prospective purchaser of a Contract should know before investing. Please read this prospectus carefully and keep it for future reference.
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
The Contracts described in this prospectus may not be
available in all state jurisdictions and, accordingly, representations made in this prospectus do not constitute an offering in such jurisdictions.
The Contract:
•
Is not a bank deposit
•
Is not FDIC insured
•
Is not insured or endorsed
by a bank or any government agency
•
Is not
available in every state
A purchase of
this Contract is subject to certain risks (see
Risk Factors
)
. The Contract is novel and innovative. To date, the tax consequences of the Contract have not been addressed in
binding published legal authorities; however, we understand that the Internal Revenue Service ("IRS") may be considering tax issues associated with products similar to the Contracts, and there is no certainty as to what the IRS will conclude is the
proper tax treatment for the Contracts. Consequently, you should consult a tax advisor before purchasing a Contract.
For
 information on how to contact Nationwide, see
Contacting the Service Center
.
i
Table of Contents
Table of Contents
Page
Summary of the
Contracts
1
Preliminary note regarding terms used in this
prospectus:
1
What is the
Contract?
1
How does the Contract generally
work?
2
How much will the Contract
cost?
3
What are the requirements to purchase the
Contract?
4
Is this Contract right for
you?
4
Who is Morgan Stanley Smith Barney
LLC?
5
What are the Eligible Portfolios and how are they
managed?
5
Can a Contract be purchased by an Individual Retirement
Account?
14
Can the Contract Owner cancel the
Contract?
15
Does the Contract contain any type of spousal
benefit?
15
Does the Contract contain any kind of Guaranteed Lifetime Withdrawal Base
increases?
15
Risk
Factors
15
Your Account may perform well enough that you may not receive any Guaranteed Lifetime Income Payments from Nationwide under the
Contract.
15
Your investment choices are limited by the
Contract.
15
You must remain invested in Your Account at MSSB to maintain your
Contract.
16
You may die before receiving payments from
us.
16
Early Withdrawals or Excess Withdrawals will reduce or eliminate the Guarantee provided by your
Contract.
16
The Contract Fee will reduce the growth of Your
Account.
16
Actions of your creditors may reduce or eliminate the Guarantee provided by your
Contract.
16
Your Guarantee may terminate if MSSB no longer manages the Eligible
Portfolios.
16
Nationwide determines that an Eligible Portfolio is no longer eligible as an investment option under the
Contract.
16
Additional deposits that exceed $2,000,000 in Total Gross Deposits could suspend or terminate your
Contract.
17
Nationwide's claims paying
ability.
17
Tax
Consequences.
17
Your Relationship with MSSB and
Nationwide
17
The
Contract.
17
Management of Your
Account.
18
The Accumulation
Phase
18
What is the Guaranteed Lifetime Withdrawal Base and how is it
calculated?
18
Can the Guaranteed Lifetime Withdrawal Base change during the Accumulation
Phase?
18
What if the Account Value falls to the Minimum Account Value before the Withdrawal Start Date but your Guaranteed Lifetime Withdrawal Base is above
zero?
20
The Withdrawal
Phase
20
What events trigger the Withdrawal
Phase?
20
What is the Withdrawal Start Date and what does it
mean?
20
What is the Guaranteed Lifetime Withdrawal Amount and how is it
calculated?
21
Can the Guaranteed Lifetime Withdrawal Base change during the Withdrawal
Phase?
21
Do Early Withdrawals and Excess Withdrawals affect the Guaranteed Lifetime Withdrawal Amount and the Guaranteed Lifetime Withdrawal Base
differently?
23
What if the Account Value and the Guaranteed Lifetime Withdrawal Base decline to zero due to Excess Withdrawals during the Withdrawal
Phase?
23
Triggering the Income
Phase
23
What events will trigger the Income
Phase?
23
How is the Contract transitioned into the Income
Phase?
24
The Income
Phase
24
How much will each Guaranteed Lifetime Income Payment
be?
24
Will the Guaranteed Lifetime Income Payment ever increase or
decrease?
24
How often are the Guaranteed Lifetime Income Payments
paid?
24
How long will the Guaranteed Lifetime Income Payments be
paid?
24
Terms and Conditions of the
Contract
24
What does it mean to have a change in "terms and conditions" of the
Contract?
24
How will a change to the terms and conditions of the Contract affect an existing
Contract?
25
Spousal Continuation
Option
25
What is the Spousal Continuation
Option?
25
ii
Table of Contents
Table of
Contents
Table of Contents (continued)
Page
Election of the Spousal Continuation
Option.
25
How much does the Spousal Continuation Option
cost?
26
Is it possible to pay for the Spousal Continuation Option but not receive a benefit from
it?
26
The Contract
Fee
26
How much is the Contract
Fee?
26
When and how is the Contract Fee
assessed?
27
Will the Contract Fee be the same amount from quarter to
quarter?
27
Will advisory and other fees impact the Account Value and the Guarantee under the
Contract?
27
Managing Withdrawals from Your
Account
28
Death
Provisions
29
Marriage Termination
Provisions
30
Marriage termination in the Accumulation or Withdrawal
Phases.
30
Marriage termination in the Income
Phase.
31
Suspension and Termination
Provisions
31
What does it mean to have a suspended
Contract?
31
What will cause a Contract to be
suspended?
31
What can be done to take the Contract out of
suspension?
31
Specific suspension events and their
cures.
32
What will cause a Contract to be
terminated?
34
Federal Income Tax
Considerations
34
Taxation of Distributions from the
Contract.
35
Taxation of Eligible Portfolios or Former Eligible Portfolios that are not held by an Individual Retirement
Account.
36
Additional Medicare
Tax.
36
Same-Sex Marriages, Domestic Partnership and Other Similar
Relationships.
36
Section 1035
Exchanges.
37
Income Tax
Withholding.
37
State and Local Tax
Considerations.
37
Payment of Advisory or Service
Fees.
38
Seek Tax
Advice.
38
Miscellaneous
Provisions
38
Ownership of the
Contract.
38
Periodic communications to Contract
Owners.
38
Amendments to the
Contract.
39
Assignment.
39
Misstatements.
39
Legal
Opinion
39
About
Nationwide
39
Contacting the Service
Center
40
Experts
40
Disclosure of Commission Position on
Indemnification
40
Legal
Proceedings
40
Nationwide Life Insurance
Company
40
Definitions
43
Appendix
A
A-1
Available Information
Information about Nationwide and the
product may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C., or may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC at 100 F Street NE, Washington, D.C. 20549.
Additional information on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090. The SEC also maintains a website (www.sec.gov) that contains the prospectus and other information.
iii
Table of Contents
Table
 of Contents
Summary of the Contracts
Preliminary note regarding terms used in this prospectus:
Certain terms used in this prospectus have specific and
important meanings. Some are explained below. Others are explained as they appear in the prospectus. Additionally, in the back of this prospectus, there is a
Definitions
provision containing definitions of all
of the terms used in the prospectus.
•
"We," "us," "our,"
"Nationwide" or the "Company" means Nationwide Life Insurance Company.
•
"You" or
"yours," "Owner" or "Contract Owner" means the owner of the Contract. If more than one Owner is named, each Owner may also be referred to as a "joint owner." Joint owners are permitted only when they are spouses as recognized by applicable Federal
law.
•
"Your Account" means the
unified managed account you own. As described further below, "Select UMA" is a unified managed account investment advisory program offered by MSSB. MSSB offers Your Account through registered representatives and investment advisor representatives
("Financial Advisors") of MSSB. You must purchase a Contract with the assistance of these Financial Advisors. Financial Advisors assist clients in analyzing whether the investment options are appropriate for the client. If your Financial Advisor
recommends a MSSB account to you, upon your request, MSSB will open Your Account. MSSB acts as introducing broker to Citigroup Global Markets Inc. ("CGMI"), an indirect wholly-owned subsidiary of Citigroup Inc., which acts as clearing broker for
Your Account. The assets in Your Account are custodied at CGMI.
The following is a summary of the Contract. Unless otherwise
noted, this prospectus assumes that you are the sole Contract Owner. You should read the entire prospectus in addition to this summary.
What is the Contract?
The Contract is an Individual Supplemental Immediate Fixed
Income Annuity Contract that is available for you to purchase if you open and own Your Account. If you own Your Account, then you and your Financial Advisor have determined that one or more MSSB investment options available in the Select UMA
investment advisory program is appropriate for you. The Contract is an optional feature available on Your Account for those investors who intend to use the assets in their account to provide income payments for retirement or other long-term
purposes.
Specifically, the Contract provides for
annuity payments ("Guaranteed Lifetime Income Payments") to be paid to you under circumstances outlined below as long as you meet the conditions of the Contract as described in this prospectus. If, or when, you are eligible and elect to take
withdrawals ("Guaranteed Lifetime Withdrawals") from Your Account, and if, or when, the value of the assets in Your Account ("Your Account Value") falls below a certain amount or you live to a certain age, you will receive Guaranteed Lifetime Income
Payments from us for the rest of your life (the "Guarantee"). The amount of your Guaranteed Lifetime Withdrawals will be based on a percentage of the value of Your Account when you first purchase the Contract (with adjustments for additions and
withdrawals, the "Guaranteed Lifetime Withdrawal Base") and will vary based on Your Account Value and other actions you take with regard to Your Account, as described in this prospectus.
The Contract also offers a Spousal Continuation Option
available at the time of application and a potential 5% increase (the 5% roll-up) in the Guaranteed Lifetime Withdrawal Base during the Accumulation Phase:
•
The Spousal Continuation
Option allows, upon your death, your surviving spouse to continue the Contract and receive all the rights and benefits associated with the Contract (see
Spousal Continuation Option
).
•
The
Contract's potential 5% roll-up is calculated based on your original Guaranteed Lifetime Withdrawal Base and may increase the Guaranteed Lifetime Withdrawal Base. This feature is only available during the Accumulation Phase (see
Can the Guaranteed Lifetime Withdrawal Base change during the Accumulation Phase?
).
Guaranteed Lifetime Income Payments under your Contract are
triggered if the withdrawals (within the permitted limits of the Contract) and/or poor market performance reduce Your Account Value to $10,000 or less.
Note: If a triggering event does not occur, you will not receive
any payments under this Contract and your Guarantee will have no value.
The Contract Guarantee is based on the age and life of the
Annuitant. For Non-Qualified Contracts, the Annuitant is you, the Contract Owner and the Owner of Your Account. If this Contract is issued to a trustee of a trust or a custodian of an Individual Retirement Account ("IRA"), you must be the Annuitant,
and if you elect the Spousal Continuation Option (discussed later in this prospectus), you and your spouse must be Co-Annuitants and your spouse must be listed as the beneficiary of Your Account.
1
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Table
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It is important to note that the Contract itself has no cash
surrender value because there are no assets attributable directly to it. All obligations under the Contract to make Guaranteed Lifetime Income Payments to you are tied to Your Account.
If you surrender your interest
in or otherwise terminate Your Account, this Contract also terminates and you will not receive any Guaranteed Lifetime Income Payments under this Contract
.
The Contract may terminate and you may not receive any
Guaranteed Lifetime Income Payments under this Contract if you terminate your Select UMA Account or if for any reason MSSB no longer manages any Eligible Portfolios or Former Eligible Portfolios (as defined below) in the Select UMA program.
Payments under the Contract are backed only by the claims
paying ability of Nationwide and are not guaranteed by MSSB or any of its affiliates.
How does the Contract generally work?
The life of the Contract can generally be described as having
three phases: an "Accumulation Phase," a "Withdrawal Phase," and an "Income Phase." Your Contract will begin in the Accumulation Phase, and you must affirmatively elect to enter the Withdrawal Phase. After a triggering event (described below)
occurs, you can elect to enter the Income Phase.
Accumulation Phase
During the Accumulation Phase, Your Account is just like any
other advisory account at MSSB, except that Your Account must be 100% invested in an "Eligible Portfolio" or "Former Eligible Portfolio." Eligible Portfolios are those Select UMA program investment models that contain certain permissible investments
under the Contract. A Former Eligible Portfolio is a previously permissible investment model that is no longer available to new Contract Owners. Please see
"What are the Eligible Portfolios and how are they
managed?
," later in this prospectus for more information on the Select UMA program and the Eligible Portfolios currently available for the Guarantee.
The Contract provides an increase in your Guaranteed Lifetime
Withdrawal Base each Contract Anniversary (the anniversary of the date we issue your Contract) equal to the greatest of:
(a)
The current Guaranteed
Lifetime Withdrawal Base, adjusted for transactions in the previous Contract Year that affected the Guaranteed Lifetime Withdrawal Base;
(b)
Your Account Value as of
that Contract Anniversary; or
(c)
The
original Guaranteed Lifetime Withdrawal Base with a 5% roll-up. This is equal to the original Guaranteed Lifetime Withdrawal Base plus 5% of the original Guaranteed Lifetime Withdrawal Base for each Contract Anniversary that has been reached. An
adjustment will be made to the calculations for transactions that increase or decrease the Guaranteed Lifetime Withdrawal Base.
The greatest of these three amounts will become your new
Guaranteed Lifetime Withdrawal Base at your next Contract Anniversary. The review of these three amounts is referred to as the "Annual Benefit Base Review" (see
Can the Guaranteed Lifetime Withdrawal Base change
during the Accumulation Phase?
).
You may make
Additional Deposits (payments applied to Your Account after the Contract is issued), which will increase your Guaranteed Lifetime Withdrawal Base. Any withdrawals taken during the Accumulation Phase will reduce your Guaranteed Lifetime Withdrawal
Base.
Withdrawal Phase
Anytime after you (and your spouse, if you elected the Spousal
Continuation Option), reach the age of 55, you may elect to begin the Withdrawal Phase. You must submit a Withdrawal Phase election form to us to enter the Withdrawal Phase. The day Nationwide receives your Withdrawal Phase election form indicating
that you are eligible and affirmatively elect to begin taking annual withdrawals of the Guaranteed Lifetime Withdrawal Amount is considered the "Withdrawal Start Date." Once the Contract is in the Withdrawal Phase, you can take annual withdrawals up
to a certain amount, the "Guaranteed Lifetime Withdrawal Amount," from Your Account without reducing your Guaranteed Lifetime Withdrawal Base and any potential Guaranteed Lifetime Income Payments.
Once you elect to begin taking Guaranteed Lifetime
Withdrawals, you may withdraw up to 4%, the "Guaranteed Lifetime Withdrawal Percentage," of your Guaranteed Lifetime Withdrawal Base from Your Account without reducing your Guaranteed Lifetime Withdrawal Base and any potential Guaranteed Lifetime
Income Payments. When you (and your
2
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spouse, if you elected the Spousal Continuation Option) reach age 65, your
Guaranteed Lifetime Withdrawal Percentage increases to 5%. At that time, you may withdraw up to 5% of your Guaranteed Lifetime Withdrawal Base from Your Account without reducing your Guaranteed Lifetime Withdrawal Base and any potential Guaranteed
Lifetime Income Payments.
Income Phase
If and when any of the following triggering events occur, the
Contract will be eligible to begin the Income Phase:
•
Your Account Value, after
the Withdrawal Start Date, falls below the greater of $10,000 or the Guaranteed Lifetime Withdrawal Amount (the "Minimum Account Value"); or
•
Your Account Value is
invested in the Minimum Account Value Eligible Portfolio, as discussed in the "Suspension and Termination Provisions" section later in this prospectus, and you reach the age of 55; or
•
You,
after the Withdrawal Start Date, affirmatively elect to begin the Income Phase by submitting the appropriate administrative forms.
At that time, you will instruct MSSB to transfer the remaining
value in Your Account to us, and we will begin making annual guaranteed fixed annuity payments to you for as long as you (or your spouse, if the Spousal Continuation Option, described herein, is elected) live. After this transition into the Income
Phase, Your Account is closed and you no longer own interests in the Eligible Portfolio or Former Eligible Portfolio. Rather, your ownership interest lies in the guaranteed stream of annuity payments - the Guaranteed Lifetime Income Payments - which
Nationwide is obligated to provide. Note: It is possible that you may never receive Guaranteed Lifetime Income Payments if none of the triggering events occur. If you (and your spouse, if the Spousal Continuation Option is elected) die before any of
the triggering events occur, no benefit is payable under this Contract.
How much will the Contract cost?
Accumulation Phase and Withdrawal Phase
During both the Accumulation Phase and Withdrawal Phase, you
will pay a fee for the Contract (the "Contract Fee" or "Fee"), which will be deducted from Your Account Value on a quarterly basis. The Fee is calculated as a percentage (the "Contract Fee Percentage") of your Guaranteed Lifetime Withdrawal Base
(not Your Account Value) as of the end of the calendar quarter (see
The Contract Fee
).
The Fee compensates us for the risk we assume in providing you
Guaranteed Lifetime Income Payments. We intend to invest the fees as we invest our General Account assets. We take into account the amount of Guaranteed Lifetime Income Payments and anticipated cash-flow requirements when making investments.
Nationwide is not obligated to invest in accordance with any particular investment objective, but will generally adhere to our overall investing philosophy.
The Fee is calculated as follows:
Contract Fee Percentage x (# of days in the quarter/365) x
Guaranteed Lifetime Withdrawal Base as of quarter end
We
reserve the right to increase the Contract Fee Percentage (up to a maximum of 1.45% of your Guaranteed Lifetime Withdrawal Base or 1.75% of your Guaranteed Lifetime Withdrawal Base with the Spousal Continuation Option elected) and will provide
written notice to you. We provide a two-year Contract Fee Percentage guarantee, during which time we will not increase the Contract Fee Percentage (if at all) before your second Contract Anniversary (see
Terms and
Conditions of the Contract
).
Note:
The Contract Fee is in addition to any charges that are imposed in connection with Your Account including advisory and other charges imposed by your Financial Advisor, MSSB, or any of the investments that comprise Your
Account. Any fees you pay that are deducted from Your Account Value, including the Contract Fee, will negatively affect the growth of Your Account Value.
Maximum
 Recurring Contract Fees
(assessed
 on the first day of each calendar quarter against the Guaranteed Lifetime Withdrawal Base
as of the last day of the previous calendar quarter)
Contract
Fee
1.45%
1
Spousal Continuation Option
Fee
0.30%
2
Total Contract Fee (including the Spousal Continuation
Option)
1.75%
3
1
The current Contract Fee is
1.00%.
3
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2
The current Spousal
Continuation Option Fee is 0.20%.
3
The
current Total Contract Fee is 1.20%.
Income Phase
During the Income Phase, no Contract Fee is assessed.
Neither MSSB nor your Financial Advisor receives any
compensation from Nationwide directly associated with the sale of the Contracts or for administrative services associated with the Contract. In order to maintain your Contract, you must keep Your Account invested in an Eligible Portfolio or Former
Eligible Portfolio. MSSB and their Financial Advisors will receive annual advisory fees and other compensation relevant to services provided in connection with the Select UMA program as outlined in your client agreement (the "Client Agreement") and
as disclosed in the MSSB ADV (as defined below) during the Accumulation and Withdrawal Phases of the Contract.
What are the requirements to purchase the Contract?
The Contract is only available for purchase by investors who
elect and continue to invest, with the help of their Financial Advisor, in the Eligible Portfolios approved by Nationwide and offered by MSSB in the Select UMA program. Upon such election, MSSB will open Your Account.
You, as the Owner of Your Account at MSSB, may purchase a
Contract from MSSB, which is also a broker-dealer, when you open Your Account. To purchase the Contract without the Spousal Continuation Option, the Annuitant must be between 45 and 75 at the time of application. To purchase the Contract with the
Spousal Continuation Option, the younger Annuitant must be between 45 and 80 and the older Annuitant must be 84 or younger at the time of application.
To purchase a Contract, the value of Your Account on the date
of application must equal $50,000 or more. We reserve the right to refuse to accept Additional Deposits made into Your Account for your Guaranteed Lifetime Withdrawal Base, including your initial deposit ("Total Gross Deposits") that exceed
$2,000,000. Withdrawals do not impact the limit of $2,000,000 in Total Gross Deposits.
See
Risk Factors
and
Suspension and Termination Provisions
later in this prospectus.
Additionally, on the date of application (and continuously
thereafter), Your Account must be allocated to one of the Eligible Portfolios as discussed herein. Once you select an Eligible Portfolio, you may switch to another Eligible Portfolio, but Your Account Value must always remain invested in an Eligible
Portfolio in order to maintain the benefits and the Guarantee associated with the Contract. If Nationwide determines that an Eligible Portfolio is no longer eligible as an investment option, you may remain in the Former Eligible Portfolio as
indicated in the
Terms and Conditions of the Contract
section.
Note:
IF AT ANY TIME 100% OF
YOUR ACCOUNT IS NOT INVESTED IN AN ELIGIBLE PORTFOLIO OR FORMER ELIGIBLE PORTFOLIO, YOUR CONTRACT WILL BE SUSPENDED AND MAY TERMINATE (see
Suspension and Termination Provisions
). Ensuring that you continue to maintain Your Account and that it remains invested according to the terms of the Contract is your responsibility.
Is this Contract right for you?
This Contract is meant to protect your assets in the event
market fluctuations bring Your Account Value below the Minimum Account Value or in the event you outlive your assets. This Contract does not protect the actual investments in Your Account. For example, if you initially invest $600,000 in Your
Account and the value of Your Account within that year falls to $400,000, we are not required to add $200,000 to Your Account. Instead, we guarantee that you will be able to withdraw, after reaching the age of 55, Guaranteed Lifetime Withdrawal
Amounts equal to 4% of $600,000 (instead of 4% of $400,000). We guarantee this even if such withdrawals bring Your Account Value to $0.
It is also important to understand, that even after you have
reached age 55 and start taking Guaranteed Lifetime Withdrawals from Your Account, those withdrawals are made from Your Account. We are required to start using our own money to make Guaranteed Lifetime Income Payments only when, and if, Your Account
Value reaches the Minimum Account Value because of withdrawals within the limits of this Contract and/or poor investment performance. We limit our risk of having to make Guaranteed Lifetime Income Payments by limiting the amount you may withdraw
each year from Your Account without reducing your Guaranteed Lifetime Withdrawal Base. If the investment return on Your Account over time is sufficient to generate gains that can sustain systematic or periodic withdrawals equal to the Guaranteed
Lifetime Withdrawal Amount, then Your Account Value will never be reduced to the Minimum Account Value and we will never have to make Guaranteed Lifetime Income Payments to you.
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There are many variables, however, other than average annual
return on Your Account, that will determine whether the investments in Your Account, without the Contract, would have generated enough gain over time to sustain systematic or periodic withdrawals equal to the Guaranteed Lifetime Withdrawals you
would have received if you had purchased the Contract. Your Account Value may have declined over time before beginning the Income Phase, which means that your investments would have to produce an even greater return after the Income Phase to make up
for the investment losses before that date. Moreover, studies have shown that individual years of negative annual average investment returns can have a disproportionate impact on the ability of your retirement investments to sustain systematic
withdrawals over an extended period, depending on the timing of the poor investment returns.
Who is Morgan Stanley Smith Barney LLC?
Morgan Stanley Smith Barney LLC ("MSSB LLC") is a financial
services firm. MSSB LLC's principal activities include retail and institutional private client services, including but not limited to providing advice with respect to financial markets, securities and commodities, and executing securities and
commodities transactions as broker or dealer; securities underwriting and investment banking; investment management (including fiduciary and administrative services); and trading and holding securities and commodities for its own account.
MSSB LLC is registered as a securities broker-dealer,
investment advisor, and futures commission merchant. Affiliates of MSSB LLC are registered as commodity pool operators and/or commodity trading advisors.
For purposes of this prospectus, "MSSB" refers to MSSB LLC and its
affiliates, or any successors. Nationwide is not affiliated with MSSB and does not manage Your Account.
What are the Eligible Portfolios and how are they
managed?
Eligible Portfolios are those Select UMA asset
allocation investment models ("Models") established by MSSB and approved by Nationwide, which contain certain permissible investments under the Contract. Each of the Models available as an Eligible Portfolio corresponds to a specific investment risk
profile. The Models are comprised of asset classes and asset class percentages established by MSSB. You and your Financial Advisor select the actual investments within each asset class from a list of investment products ("Investment Products")
created by MSSB and approved by Nationwide. These Investment Products can take the form of Mutual Funds, Exchange Traded Funds and/or Separately Managed Accounts. You and your Financial Advisor may elect any combination of the permitted Investment
Products to fulfill each asset class percentage:
Mutual Funds - A mutual fund is a
professionally managed type of collective investment that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled
money on a regular basis, and is an open end investment company registered under the Investment Company Act of 1940.
Exchange Traded Funds or ETFs - An ETF is
an investment vehicle traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day. Many ETFs
track an index, such as the Dow Jones Industrial Average or the S&P 500.
Separately Managed Accounts or SMAs - A SMA
is comprised of individual securities which an Overlay Manager will invest in for the client, based on an investment model provided by one or more separately registered investment managers ("sub-managers"), which invests for the client based on
their own investment decision. This differs from a mutual fund because the investor directly owns the securities instead of owning a share in a pool of securities. Please see
Your Relationship with MSSB and
Nationwide,
for more information about the Overlay Manager.
MSSB selects the list of Investment Products available to you
and your Financial Advisor from among those that MSSB can recommend based on MSSB's due diligence research. MSSB bases its research on factors such as consistency with investment strategy and historical performance. The list of Investment Products
that MSSB recommends will change when MSSB identifies additional Investment Products that satisfy MSSB's research, or when MSSB determines that existing Investment Products no longer satisfy MSSB's research. Nationwide also reviews the list of
available Investment Products to ensure that it is comfortable with the risk that each Investment Product could generate. MSSB provides the list of available Investment Products to your Financial Advisor.
As the provider of the Guarantee under the Contracts, we
maintain sole discretion as to which investment options will be permitted under the Contracts as Eligible Portfolios. We only make available those Eligible Portfolios that we determine carry an acceptable amount of risk for Nationwide to manage the
Guarantee. We monitor the risk that investments in Your
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Account will not generate sufficient income for you to sustain your
Guaranteed Lifetime Withdrawals during your lifetime. If, after making an Eligible Portfolio available, we subsequently determine that such Eligible Portfolio carries too much risk (the risk that we will have to make Guaranteed Lifetime Income
Payments), we will adjust the list of Eligible Portfolios, re-characterizing those portfolios that we determine to be too risky to continue offering as "Former Eligible Portfolios." We will notify Contract Owners that originally selected a now
Former Eligible Portfolio of their contractual options, which are described in the
Terms and Conditions of the Contract
section later in this prospectus.
Four
Step Investment Process
At or before
the time of this Contract application, you and your Financial Advisor will follow the process below to select your Eligible Portfolio:
Step 1: Set Investment Objectives
Your Financial Advisor helps you establish
your investment objectives for Your Account.
Step 2: Select Investment Model/Eligible
Portfolio
Based on your investment
objectives, your Financial Advisor recommends one Model for Your Account from the Models permitted as Eligible Portfolios. The Select UMA program offers Models that are Eligible Portfolios and those that are not Eligible Portfolios. If you wish to
receive the benefit of this Contract, you must select an Eligible Portfolio.
Step 3: Select Investment Products
Your Financial Advisor then works with you
to select the specific Investment Products that will meet the requirement for each asset class and asset class percentage within the Eligible Portfolio you selected.
Once you have (with the assistance of your
Financial Advisor) selected the Investment Products for each asset class in the Model you have chosen, the Overlay Manager will purchase the investments in a manner consistent with the Model and the Investment Products selected.
Step 4: Ongoing Review Process
Your Financial Advisor will contact you to
determine whether short-term or long-term changes are needed in the Eligible Portfolio you selected. You may change to a different Model from among the Models permitted as Eligible Portfolios, and you and your Financial Advisor may also change to
other Investment Products from the Investment Products that are permitted for Eligible Portfolios.
Additionally, you may remain in a Former Eligible Portfolio as
indicated in the
Terms and Conditions of the Contract
section. If you move Your Account assets to a non-Eligible Portfolio (any Select UMA Model that is not an Eligible Portfolio) at any time, your Contract
will be suspended (see
Suspension and Termination Provisions
).
Note:
Reallocating Your Account out of the Eligible Portfolio elected at the time of application may have
negative tax consequences. Please consult a qualified tax advisor for more information.
Eligible Portfolios Summary
The following tables reflect a summary of each Eligible
Portfolio that is currently available for election under the Contract. The Eligible Portfolios are listed from most conservative to least conservative. The target allocations may be changed by MSSB from time to time as provided in the Client
Agreement and the MSSB ADV. MSSB monitors each Eligible Portfolio's holdings and will periodically rebalance Your Account as provided in the Client Agreement to realign it with the current asset allocations for your Eligible Portfolio.
The value of your Eligible Portfolio will fluctuate over time.
This means it will rise and fall in response to market events. Although past performance is not a guarantee of future results, historically, investments that have had higher fluctuations have provided higher long term returns, along with higher
risks of loss. The Return chart below shows that as you move up the risk ladder from conservative investments to aggressive investments, you have the potential to receive higher long term returns but may also experience higher fluctuations in
value.
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Capital
 Preservation oriented. Total return oriented, but may have higher current income. Suitable for short time horizon (3 to 5 years).
Capital
 appreciation oriented. Minimal income needs. Increasing equity exposure. Longer time horizon – at least a market cycle (5 years or more).
Aggressive
 growth oriented. No current income consideration. Greater volatility than broad stock market. Longest time horizon (10+ years).
The target allocation categories listed below reflect
investment asset categories only, and not specific Investment Products. You and your Financial Advisor select the Investment Products to satisfy each Target Allocation. More explanation of each category follows the tables. The percentage ranges
shown are target ranges only, and may change if deemed appropriate by MSSB. Additionally, the index percentages used to establish the benchmark as determined by MSSB are provided for each Eligible Portfolio. The indices and percentages provided by
MSSB are established by MSSB based on the asset allocation of the selected Model. MSSB has determined that the benchmarks are appropriate for use as a gauge of performance of the associated Eligible Portfolios. The indices work together to provide a
blended performance percentage of how your Eligible Portfolio should perform. Your Financial Advisor will discuss how your Eligible Portfolio performed as compared to the benchmark. Not every asset class is represented by a corresponding index. A
summary of the referenced asset classes and indices follows the Eligible Portfolio tables.
Eligible
Portfolio
Target
 Allocations
U.S.
 Equity
Select
 UMA
Model 1 w/o
Municipal Bonds
U.S.
 Large Cap
Value Equity
U.S.
 Large Cap
Growth Equity
U.S.
 Mid Cap
Value Equity
U.S.
 Mid Cap
Growth Equity
U.S.
 Small Cap
Value Equity
U.S.
 Small Cap
Growth Equity
0%
0%
0%
0%
0%
0%
Composition
International
 Equity
U.S.
 Fixed Income
International
Fixed Income
Cash
Developed
International
Equity
Emerging
Markets Equity
U.S.
 Core
Fixed Income
U.S.
 High Yield
Fixed Income
International
Fixed Income
Cash/U.S.
Short Duration
Bond
100%
 Fixed
0%
0%
40
 - 60%
0
 - 20%
5
 - 25%
20
 - 40%
Investment
 Strategy:
Fixed Income- An all fixed income model for a most conservative investor that seeks conservative risk investments with minimal market volatility. This investment strategy is most appropriate for investors
with an investment time horizon of 1 to 3 years.
Investment
 Objective:
The investment objective for this Model has a primary emphasis on capital preservation. This Model is classified to have low volatility. It is most suitable for an investor that is comfortable with
minimal fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time.
Investment
 Risk
: Fixed income is historically considered less risky than equities. Model 1 has 100% of the assets in fixed income or cash. Therefore, of all of the Eligible Portfolios, this portfolio provides the most
conservative investment risk.
Benchmark:
70% BC Aggregate Bond (Fixed Income)/30% 90-Day T-Bills (Cash)
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Eligible
Portfolio
Target
 Allocations
U.S.
 Equity
Select
 UMA
Model 2 w/o
Municipal Bonds
U.S.
 Large Cap
Value Equity
U.S.
 Large Cap
Growth Equity
U.S.
 Mid Cap
Value Equity
U.S.
 Mid Cap
Growth Equity
U.S.
 Small Cap
Value Equity
U.S.
 Small Cap
Growth Equity
0
 - 20%
0
 - 20%
0
 - 10%
0
 - 10%
0
 - 10%
0
 - 10%
Composition
International
 Equity
U.S.
 Fixed Income
International
Fixed Income
Cash
Developed
International
Equity
Emerging
Markets Equity
U.S.
 Core
Fixed Income
U.S.
 High Yield
Fixed Income
International
Fixed Income
Cash/U.S.
Short Duration
Bond
25%
 Equity
75% Fixed
0
 - 20%
0
 - 10%
30
 - 50%
0
 - 20%
0
 - 20%
5
 - 25%
Investment
 Strategy:
Global Balanced- A global balanced model with a higher emphasis on income for a conservative investor that seeks long term growth through achieving a balance between income and capital growth globally.
This investment strategy is most appropriate for investors with an investment time horizon of 3 to 5 years.
Investment
 Objective:
The investment objective for this Model has a primary emphasis on income with some capital growth. This Model is classified to have low volatility. It is most suitable for an investor that is comfortable
with minimal fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time.
Investment
 Risk:
Fixed income is historically considered less risky than equities. Model 2 has 75% of the assets in fixed income or cash and 25% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides a more aggressive investment risk than Model 1 and less aggressive than Models 3 and 4.
Benchmark:
18% Russell 1000 (U.S Equity)/7% MSCI EAFE (International Equity)/60% BC Aggregate Bond (U.S. Fixed Income)/15% 90-Day T-Bills (Cash)
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Eligible
Portfolio
Target
 Allocations
U.S.
 Equity
Select
 UMA
Model 3 w/o
Municipal Bonds
U.S.
 Large Cap
Value Equity
U.S.
 Large Cap
Growth Equity
U.S.
 Mid Cap
Value Equity
U.S.
 Mid Cap
Growth Equity
U.S.
 Small Cap
Value Equity
U.S.
 Small Cap
Growth Equity
0
 - 20%
0
 - 20%
0
 - 15%
0
 - 15%
0
 - 10%
0
 - 10%
Composition
International
 Equity
U.S.
 Fixed Income
International
Fixed Income
Cash
Developed
International
Equity
Emerging
Markets Equity
U.S.
 Core
Fixed Income
U.S.
 High Yield
Fixed Income
International
Fixed Income
Cash/U.S.
Short Duration Bond
40%
 Equity
60% Fixed
0
 - 20%
0
 - 10%
25
 - 45%
0
 - 15%
0
 - 20%
0
 - 20%
Investment
 Strategy
: Global Balanced- A global balanced model utilizing equities, fixed income, and cash seeking some growth and moderate level of income for a moderate investor that seeks long term growth through achieving a
balance between income and capital growth globally. This investment strategy is most appropriate for investors with an investment time horizon of 3 to 5 years.
Investment
 Objective:
The investment objective for this Model has a primary emphasis on capital growth and income. This Model is classified to have medium volatility. It is most suitable for an investor that is comfortable
with fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time.
Investment
 Risk:
Fixed income is historically considered less risky than equities. Model 3 has 60% of the assets in fixed income or cash and 40% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides a more aggressive investment risk than Models 1 and 2 and less aggressive than Model 4.
Benchmark:
28% Russell 3000 (U.S Equity)/12% MSCI EAFE (International Equity)/50% BC Aggregate Bond (Fixed Income)/10% 90-Day T-Bills (Cash)
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Eligible
Portfolio
Target
 Allocations
U.S.
 Equity
Select
 UMA
Model 4 w/o
Municipal Bonds
U.S.
 Large Cap
Value Equity
U.S.
 Large Cap
Growth Equity
U.S.
 Mid Cap
Value Equity
U.S.
 Mid Cap
Growth Equity
U.S.
 Small Cap
Value Equity
U.S.
 Small Cap
Growth Equity
0
 - 20%
0
 - 20%
0
 - 15%
0
 - 15%
0
 - 15%
0
 - 15%
Composition
International
 Equity
U.S.
 Fixed Income
International
Fixed Income
Cash
Developed
International
Equity
Emerging
Markets Equity
U.S.
 Core
Fixed Income
U.S.
 High Yield
Fixed Income
International
Fixed Income
Cash/U.S.
Short Duration
Bond
50%
 Equity
50% Fixed
0
 - 20%
0
 - 15%
25
 - 45%
0
 - 15%
0
 - 20%
0
 - 15%
Investment
 Strategy:
Global Balanced- A global balanced model utilizing equities, fixed income, and cash seeking a moderate level of growth and income for a moderate investor that seeks long term growth through achieving a
balance between income and capital growth globally. This investment strategy is most appropriate for investors with an investment time horizon of 5 to 7 years.
Investment
 Objective:
The investment objective for this Model has a primary emphasis on capital growth with some focus on income. This Model is classified to have medium volatility. It is most suitable for an investor that is
comfortable with fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time.
Investment
 Risk:
Fixed income is historically considered less risky than equities. Model 4 has 50% of the assets in fixed income or cash and 50% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides the most aggressive investment risk.
Benchmark:
35% Russell 3000 (U.S. Equity)/15% MSCI AC World x U.S. (International Equity)/50% BC Aggregate Bond (U.S. Fixed Income)
Eligible
Portfolio
Target
 Allocations
U.S.
 Equity
Select
 UMA
Model 1 w/
Municipal Bonds
U.S.
 Large Cap
Value Equity
U.S.
 Large Cap
Growth Equity
U.S.
 Mid Cap
Value Equity
U.S.
 Mid Cap
Growth Equity
U.S.
 Small Cap
Value Equity
U.S.
 Small Cap
Growth Equity
0%
0%
0%
0%
0%
0%
Composition
International
 Equity
U.S.
 Fixed Income
International
Fixed Income
Cash
Developed
International
Equity
Emerging
Markets Equity
U.S.
 Municipal
Bond Fixed
Income
U.S.
 High Yield
Fixed Income
International
Fixed Income
Cash/U.S.
Short Duration
Bond
100%
 Fixed
0%
0%
40
 - 60%
0
 - 20%
5
 - 25%
20
 - 40%
Investment
 Strategy:
Fixed Income- An all fixed income model for a most conservative investor that seeks conservative risk investments, with minimal market volatility. This investment strategy is most appropriate for investors
with an investment time horizon of 1 to 3 years.
Investment
 Objective:
The investment objective for this Model has a primary emphasis on capital preservation. This Model is classified to have low volatility. It is most suitable for an investor that is comfortable with
minimal fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time. One of the primary reasons municipal bonds are considered separately from other types of bonds is their special
ability to provide tax-exempt income. Interest paid by the issuer (i.e., the municipality, state or local government) to bond holders is often exempt from all federal taxes, as well as state or local taxes depending on the state in which the issuer
is located, subject to certain restrictions. Therefore, for taxable accounts, it can be a tax advantage to invest in municipal bonds in lieu of core fixed income investments.
Investment
 Risk:
Fixed income is historically considered less risky than equities. Model 1 has 100% of the assets in fixed income or cash. Therefore, of all of the Eligible Portfolios, this portfolio provides the most
conservative investment risk.
Benchmark:
70% BC Municipal Bond (U.S. Fixed Income)/30% 90-Day T-Bills (Cash)
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Eligible
Portfolio
Target
 Allocations
U.S.
 Equity
Select
 UMA
Model 2 w/
MunicipalBonds
U.S.
 Large Cap
Value Equity
U.S.
 Large Cap
Growth Equity
U.S.
 Mid Cap
Value Equity
U.S.
 Mid Cap
Growth Equity
U.S.
 Small Cap
Value Equity
U.S.
 Small Cap
Growth Equity
0
 - 20%
0
 - 20%
0
 - 10%
0
 - 10%
0
 - 10%
0
 - 10%
Composition
International
 Equity
U.S.
 Fixed Income
International
Fixed Income
Cash
Developed
International
Equity
Emerging
Markets Equity
U.S.
 Municipal
Bond Fixed
Income
U.S.
 High
Yield Fixed
Income
International
Fixed Income
Cash/U.S.
Short Duration
Bond
25%
 Equity
75% Fixed
0
 - 20%
0
 - 10%
30
 - 50%
0
 - 20%
0
 - 20%
5
 - 25%
Investment
 Strategy
: Global Balanced- A global balanced model with a higher emphasis on income for a conservative investor that seeks long term growth through achieving a balance between income and capital growth globally.
This investment strategy is most appropriate for investors with an investment time horizon of 3 to 5 years.
Investment
 Objective:
The investment objective for this Model has a primary emphasis on income with some capital growth. This Model is classified to have low volatility. It is most suitable for an investor that is comfortable
with minimal fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time. One of the primary reasons municipal bonds are considered separately from other types of bonds is their
special ability to provide tax-exempt income. Interest paid by the issuer (i.e., the municipality, state or local government) to bond holders is often exempt from all federal taxes, as well as state or local taxes depending on the state in which the
issuer is located, subject to certain restrictions. Therefore, for taxable accounts, it can be a tax advantage to invest in municipal bonds in lieu of core fixed income investments.
Investment
 Risk:
Fixed income is historically considered less risky than equities. Model 2 has 75% of the assets in fixed income or cash and 25% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides a slightly more aggressive investment risk than Model 1.
Benchmark:
18% Russell 1000 (U.S. Equity)/7% MSCI EAFE (International Equity)/ 60% BC Municipal Bond (U.S. Fixed Income)/15% 90-Day T-Bills (Cash)
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Eligible
Portfolio
Target
 Allocations
U.S.
 Equity
Select
 UMA
Model 3 w/
Municipal Bonds
U.S.
 Large Cap
Value Equity
U.S.
 Large Cap
Growth Equity
U.S.
 Mid Cap
Value Equity
U.S.
 Mid Cap
Growth Equity
U.S.
 Small Cap
Value Equity
U.S.
 Small Cap
Growth Equity
0
 - 20%
0
 - 20%
0
 - 15%
0
 - 15%
0
 - 10%
0
 - 10%
Composition
International
 Equity
U.S.
 Fixed Income
International
Fixed Income
Cash
Developed
International
Equity
Emerging
Markets Equity
U.S.
 Municipal
Bond Fixed
Income
U.S.
 High Yield
Fixed Income
International
Fixed Income
Cash/U.S.
 Short
Term Bond
40%
 Equity
60% Fixed
0
 - 20%
0
 - 10%
25
 - 45%
0
 - 15%
0
 - 20%
0
 - 20%
Investment
 Strategy:
Global Balanced- A global balanced model utilizing equities, fixed income, and cash seeking some growth and moderate level of income for a moderate investor that seeks long term growth through achieving a
balance between income and capital growth globally. This investment strategy is most appropriate for investors with an investment time horizon of 3 to 5 years.
Investment
 Objective:
The investment objective for this Model has a primary emphasis on capital growth and income. This Model is classified to have medium volatility. It is most suitable for an investor that is comfortable
with fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time. One of the primary reasons municipal bonds are considered separately from other types of bonds is their special
ability to provide tax-exempt income. Interest paid by the issuer (i.e., the municipality, state or local government) to bond holders is often exempt from all federal taxes, as well as state or local taxes depending on the state in which the issuer
is located, subject to certain restrictions. Therefore, for taxable accounts, it can be a tax advantage to invest in municipal bonds in lieu of core fixed income investments.
Investment
 Risk:
Fixed income is historically considered less risky than equities. Model 3 has 60% of the assets in fixed income or cash and 40% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides a more aggressive investment risk than Models 1 and 2 and less aggressive than Model 4.
Benchmark:
28% Russell 3000 (U.S. Equity)/12% MSCI EAFE (International Equity)/50% BC Municipal Bond (U.S. Fixed Income)/10% 90-Day T-Bills (Cash)
Eligible
Portfolio
Target
 Allocations
U.S.
 Equity
Select
 UMA
Model 4 w/
Municipal Bonds
U.S.
 Large Cap Value Equity
U.S.
 Large Cap
Growth Equity
U.S.
 Mid Cap
Value Equity
U.S.
 Mid Cap
Growth Equity
U.S.
 Small Cap
Value Equity
U.S.
 Small Cap
Growth Equity
0
 - 20%
0
 - 20%
0
 - 15%
0
 - 15%
0
 - 15%
0
 - 15%
Composition
International
 Equity
U.S.
 Fixed Income
International
Fixed Income
Cash
Developed
International
Equity
Emerging
Markets Equity
U.S.
 Municipal
Bond Fixed
Income
U.S.
 High Yield
Fixed Income
International
Fixed Income
Cash/U.S.
Short Term
Bond
50%
 Equity
50% Fixed
0
 - 20%
0
 - 15%
25
 - 45%
0
 - 15%
0
 - 20%
0
 - 15%
Investment
 Strategy:
Global Balanced- A global balanced model utilizing equities, fixed income, and cash seeking a moderate level of growth and income for a moderate investor that seeks long term growth through achieving a
balance between income and capital growth globally. This investment strategy is most appropriate for investors with an investment time horizon of 5 to 7 years.
Investment
 Objective:
The investment objective for this Model has a primary emphasis on capital growth with some focus on income. This Model is classified to have medium volatility. It is most suitable for an investor that is
comfortable with fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time. One of the primary reasons municipal bonds are considered separately from other types of bonds is their
special ability to provide tax-exempt income. Interest paid by the issuer (i.e., the municipality, state or local government) to bond holders is often exempt from all federal taxes, as well as state or local taxes depending on the state in which the
issuer is located, subject to certain restrictions. Therefore, for taxable accounts, it can be a tax advantage to invest in municipal bonds in lieu of core fixed income investments.
Investment
 Risk:
Fixed income is historically considered less risky than equities. Model 4 has 50% of the assets in fixed income or cash and 50% in equities. Therefore, of all of the Eligible Portfolios, this portfolio
provides the most aggressive investment risk.
Benchmark:
35% Russell 3000 (U.S. Equity)/15% MSCI AC World x U.S. (International Equity)/ 50% BC Municipal Bond (U.S. Fixed Income).
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The Eligible Portfolios are made up of the following asset
classes. Investment Products are then chosen to represent the appropriate asset classes within each Eligible Portfolio. The available Investment Products are mutual funds, exchange traded funds and separately managed accounts.
Asset Classes (listed in order of lowest historical risk to
highest historical risk):
U.S. Short
Duration Bond
– This asset class is generally comprised of securities made up of United States dollar-denominated Treasuries, government-related securities, and investment grade United States corporate
securities. The duration of these bonds is typically between less than one year and five years.
U.S. Municipal Bond Fixed Income
– This asset class is generally comprised of investment grade municipal bonds.
U.S. Core Fixed Income
– An asset class that is generally comprised of securities made up of United States dollar-denominated Treasuries, government-related securities, and investment grade United States corporate
securities.
U.S. High Yield
Fixed Income
– An asset class that is generally comprised of fixed income securities that have below investment grade credit ratings and carry higher risks (e.g., "junk bonds"), but generally offer higher
yields than investment-grade bonds.
International Fixed Income
– An asset class that is generally comprised of securities made up of non-U.S. dollar denominated Treasuries, international government-related securities, and investment grade international corporate
securities.
U.S. Large Cap Value
Equity
– An asset class that is generally comprised of securities issued by U.S. companies with large market capitalizations (typically $10 billion or more). These securities have the potential for long-term
capital appreciation and are generally considered to be undervalued relative to a major unmanaged stock index based on price-to-current earnings, book value, asset value, or other factors. In aggregate, the securities within this asset class will
generally have below-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of the U.S. diversified large-cap asset class.
U.S. Large Cap Growth Equity
– An asset class that is generally comprised of securities issued by U.S. companies with large market capitalizations (typically $10 billion or more). These securities have the potential for long-term capital
appreciation and are generally defined as companies with expected long-term earnings growth rates significantly higher than the earnings growth rates of the stocks represented in a major unmanaged stock index. In aggregate, the securities within
this asset class will generally have above-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of the U.S. diversified large-cap asset class.
U.S. Mid Cap Value Equity
– An asset class that is generally comprised of securities issued by U.S. companies with market capitalizations typically in the $2 - $10 billion range. These securities have the potential for long-term capital
appreciation and are generally considered to be undervalued relative to a major unmanaged stock index based on price-to-current earnings, book value, asset value, or other factors. In aggregate, the securities within this asset class will generally
have below-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of the U.S. diversified mid-cap asset class.
U.S. Mid Cap Growth Equity
– An asset class that is generally comprised of securities issued by U.S. companies with market capitalizations typically in the $2 - $10 billion range. These securities have the potential for long-term capital
appreciation and are generally defined as companies with expected long-term earnings growth rates significantly higher than the earnings growth rates of the stocks represented in a major unmanaged stock index. In aggregate, the securities within
this asset class will generally have above-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of the U.S. diversified mid-cap asset class.
U.S. Small Cap Value Equity
– An asset class that is generally comprised of securities issued by U.S. companies with market capitalizations typically below $2 - $3 billion. These securities have the potential for long-term capital
appreciation and are generally considered to be undervalued relative to a major unmanaged stock index based on price-to-current earnings, book value, asset value, or other factors. In aggregate, the securities within this asset class will generally
have below-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of the U.S. diversified small-cap asset class.
U.S. Small Cap Growth Equity
– An asset class that is generally comprised of securities issued by U.S. companies with market capitalizations typically below $2 - $3 billion. These securities have the potential for long-term capital
appreciation and are generally defined as companies with expected long-term earnings growth rates significantly
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higher than the earnings growth rates of the stocks
represented in a major unmanaged stock index. In aggregate, the securities within this asset class will generally have above-average price-to-earnings ratios, price-to-book ratios, and three-year earnings growth figures compared to the average of
the U.S. diversified small-cap asset class.
Developed International Equity
– An asset class that is generally comprised of securities with primary trading markets outside of the United States in developed international markets.
Emerging Markets Equity
– An asset class that is generally comprised of securities with primary trading markets in developing countries outside of the U. S. that have low standards of democratic governments, free market economies,
industrialization, social programs, and human rights guarantees for its citizens.
The following indices are listed from the lowest historical
risk to the highest historical risk. Risk is defined as the long term historical standard deviation of each asset class, which measures the degree of volatility.
Benchmark Indices (listed in order of lowest risk to highest
risk), which represent various asset classes:
90-Day T- Bills
– Index that measures returns of three-month Treasury Bills. (Applicable to: Cash)
BC Municipal Bond
– This index is representative of the tax-exempt bond market and is made up of investment grade municipal bonds issued after December 31, 1990, having a remaining maturity of at least one year. (Applicable to:
U.S. Fixed Income)
BC Aggregate
Bond
– This market value-weighted index measures fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues. (Applicable to: U.S. Fixed Income)
Russell
1000
– Index that measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1000 of the largest securities based
on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the U.S. market. The Russell 1000 Index is constructed to provide a comprehensive and unbiased barometer for the large-cap segment
and is completely reconstituted annually to ensure new and growing equities are reflected. (Applicable to: U.S. Equity)
Russell
3000
– This index measures the performance of the largest 3000 U.S. companies representing 98% of the investable U.S. equity market. (Applicable to: U.S. Equity)
MSCI All Country World
– A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of June 2007 it consisted of the following 23 developed market
country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United
States. (Applicable to: International Equity)
MSCI EAFE
– The Morgan Stanley Capital International Europe, Australasia and Far East Index is a market-weighted index composed of companies representative of the market structure of 20 developed market countries in Europe, Australasia and the Far East.
(Applicable to: International Equity)
The
Eligible Portfolios offered by MSSB are subject to the same risks faced by similar investment options available in the market, including, without limitation, market risk (the risk of an overall down market), interest rate risk (the risk that rising
or declining interest rates will hurt your investment returns), idiosyncratic risk (the risk that an individual asset will hurt your returns), and concentration risk (the risk that due to concentrations in a certain segment of the market which
performs poorly, your returns are lower than the overall market). The Eligible Portfolios may not achieve their respective investment objectives regardless of whether or not you purchase the Contract.
Can a Contract be purchased by an Individual Retirement
Account?
You may purchase a Contract for your IRA, Roth
IRA, SEP IRA or Simple IRA (collectively, an "IRA"). You must designate yourself as the Annuitant of the IRA if your custodian will be listed as the owner. The Contract is held within the IRA for your benefit. If you elect the Spousal Continuation
Option (discussed herein), you and your spouse must be Co-Annuitants, and your spouse must be listed as the sole beneficiary of Your Account.
For Contracts within an IRA, Nationwide makes Guaranteed
Lifetime Income Payments to the IRA unless otherwise directed by the trustee. Any IRA payments made to you are considered an IRA distribution and will be taxed as such. Distributions that you receive from your IRA with respect to the Contract will
generally be treated as ordinary taxable income. You should refer to your IRA disclosure documents and/or Internal Revenue Service Publication 590 for the rules applicable to IRAs and their distributions.
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Can the Contract Owner cancel the Contract?
After you purchase and receive the Contract, you have up to 30
days to cancel your Contract. We call this the "Examination Period." In order to cancel your Contract, you must provide us with the approved cancellation form (which can be obtained from the Service Center) at the Service Center within 30 days after
receiving the Contract (or such longer period that your state may require). We will then terminate your Contract and refund to Your Account the full amount of any Fee we have already assessed.
After the Examination Period has expired, you can cancel your
Contract by:
•
advising us and MSSB that
you want to terminate the Contract; or
•
liquidating all of the
investments in Your Account; or
•
terminating
 Your Account.
If you cancel your
Contract, before or after the examination period, a 30-day waiting period may be imposed before you can purchase another Contract for Your Account.
There are other actions or inactions that can cause the
Contract to terminate as well (see
Suspension and Termination Provisions
).
Does the Contract contain any type of spousal benefit?
Yes. At the time of application, you may elect to add the
Spousal Continuation Option to your Contract. The Spousal Continuation Option allows a surviving spouse to continue to take withdrawals during the Withdrawal Phase and receive payments during the Income Phase, for the duration of his or her
lifetime, provided that the conditions outlined in this prospectus are satisfied. In order to elect the Spousal Continuation Option for Non-Qualified Contracts, you must be the owner of Your Account and list your spouse as Co-Annuitant of the
Contract. If Your Account is held by an IRA, the sole beneficiary to the IRA must be your spouse. There is a maximum Spousal Continuation Option Fee Percentage equal to a rate of 0.30% of the Guaranteed Lifetime Withdrawal Base associated with the
Spousal Continuation Option. Currently, the Spousal Continuation Option Fee Percentage is equal to a rate of 0.20% of the Guaranteed Lifetime Withdrawal Base.
Does the Contract contain any kind of Guaranteed Lifetime
Withdrawal Base increases?
Yes. During both the
Accumulation Phase and the Withdrawal Phase, the Contract contains an anniversary step-up feature, the
"Annual Benefit Base Review"
where if, on any Contract Anniversary, Your Account Value exceeds the
Guaranteed Lifetime Withdrawal Base, we will automatically increase your Guaranteed Lifetime Withdrawal Base to equal that Your Account Value (see
What is the Guaranteed Lifetime Withdrawal Base and how is it
calculated?
).
Risk Factors
Your Account may perform well enough that you may not receive
any Guaranteed Lifetime Income Payments from Nationwide under the Contract.
The assets in Your Account must be invested in accordance with
one of the designated Eligible Portfolios. The Eligible Portfolios, together with the limits on the amount you may withdraw annually without reducing your Guaranteed Lifetime Withdrawal Base, are intended to minimize the risk to us that we will be
required to make Guaranteed Lifetime Income Payments to you.
Accordingly, the risk against which the Contract protects, i.e., that Your Account Value will be reduced below the Minimum Account Value by withdrawals
and/or poor investment performance, or that you will live beyond the age when Your Account Value is reduced below the Minimum Account Value, is likely to be small. In this case, you will have paid us fees for the life of your Contract and received
no payments in return.
Your investment choices are
limited by the Contract.
The Guarantee associated with
the Contract is contingent on your investments being allocated to one of the Eligible Portfolios or a Former Eligible Portfolio. The Eligible Portfolios may be managed in a more conservative fashion than other investments available to you. If you do
not purchase the Contract, it is possible that you may invest in other types of investments that experience higher growth or lower losses, depending on the market, than the Eligible Portfolios experience.
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You must remain invested in Your Account at MSSB to maintain
your Contract.
In order to receive any benefits under
the Contract, you must maintain Your Account at MSSB and pay the annual advisory fees and other compensation associated with the Select UMA program. If you terminate Your Account with MSSB or transfer Your Account to another firm, the Contract will
automatically terminate and you will not receive any payments or other benefits under the Contract.
You may die before receiving payments from us.
Despite general societal increases in longevity, you may still
die prematurely, and thus never receive any payments under the Contract. This Contract is designed to provide protection, in many cases, to clients who live beyond life expectancy. However, you do not have to live beyond life expectancy to receive
payments under the Contract, and conversely, living beyond your life expectancy does not guarantee payments from us under the Contract.
Early Withdrawals or Excess Withdrawals will reduce or
eliminate the Guarantee provided by your Contract.
Withdrawals can cause you to lose the right to any Guaranteed
Lifetime Income Payments under the Contract. If you take withdrawals before the Withdrawal Start Date (an "Early Withdrawal") or if you withdraw more than the Guaranteed Lifetime Withdrawal Amount in a given year after the Withdrawal Start Date (an
"Excess Withdrawal"), you will reduce the Guaranteed Lifetime Withdrawal Base and consequently, the amount of any Guaranteed Lifetime Withdrawals. Multiple Early Withdrawals and/or multiple Excess Withdrawals can reduce your Guaranteed Lifetime
Withdrawal Base and Your Account Value to zero. If this occurs, any Guaranteed Lifetime Withdrawals could be substantially reduced or eliminated.
Note:
The Contract does not
require us or MSSB to warn you or provide you with notice regarding potentially adverse consequences that may be associated with any withdrawals or other types of transactions involving Your Account.
The Contract Fee will reduce the growth of Your Account.
The deduction of the Contract Fee each quarter will negatively
affect the growth of Your Account. Depending on how long you live and how your investments perform, you may be financially better off without purchasing the Contract.
Actions of your creditors may reduce or eliminate the Guarantee
provided by your Contract.
You own Your Account and the
assets held in it. We have no ownership or control over Your Account or the assets held in it. The assets in Your Account are not subject to our creditors. However, assets in Your Account may be subject to attachment by your creditors. Moreover,
because you may liquidate Your Account at any time, you are also entitled to pledge the assets in Your Account as collateral for a loan. There is a risk that if you pledge the assets in Your Account as collateral for a loan and the value of the
assets in Your Account decreases, your creditors may liquidate assets in Your Account to pay the loan. This liquidation will be treated as a withdrawal from Your Account. If it is an Early Withdrawal or an Excess Withdrawal, it could cause you to
lose the right to receive Guaranteed Lifetime Income Payments under the Contract. Therefore, using the assets in Your Account as collateral for a loan may cause you to lose the Guarantee available under the Contract.
Your Guarantee may terminate if MSSB no longer manages the
Eligible Portfolios.
We will only pay the Guarantee
under this Contract if MSSB manages the Eligible Portfolios or Former Eligible Portfolios. If, for any reason, MSSB no longer manages the Eligible Portfolios or Former Eligible Portfolios, we reserve the right to suspend the Contract. If you choose
to continue your Contract and the Guarantee, you must transfer Your Account Value to a third party account approved by us or to an annuity contract that we, or one of our affiliates, offer. If you choose not to transfer Your Account Value, this
Contract and the Guarantee will terminate.
Nationwide
determines that an Eligible Portfolio is no longer eligible as an investment option under the Contract.
As the provider of the Guarantee, we maintain sole discretion
as to which investment options will be offered under the Contracts as Eligible Portfolios. We only make available those Eligible Portfolios that we determine carry an acceptable amount of risk for Nationwide to manage the Guarantee. If, after making
an Eligible Portfolio available, we subsequently
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determine that such Eligible Portfolio carries too much risk for Nationwide
to manage the Guarantee, we will re-characterize the Eligible Portfolio as a Former Eligible Portfolio. Re-characterizing an Eligible Portfolio as a Former Eligible Portfolio triggers a term and condition change for those Contract Owners invested in
the affected Former Eligible Portfolio. Upon any such re-characterization, we will notify affected Contract Owners and explain their contractual options. Please see the
"Terms and Conditions of the Contract,"
for more information about terms and conditions changes.
Additional deposits that exceed $2,000,000 in Total Gross
Deposits could suspend or terminate your Contract.
Nationwide does not control the assets in Your Account so it
cannot set limits on the amount of Additional Deposits you can add to Your Account. Nationwide does, however, control how the Guaranteed Lifetime Withdrawal Base is calculated which directly impacts Nationwide's obligation to make Guaranteed
Payments under the Contract. In order to manage Nationwide's risk of making Guaranteed Payments, Nationwide reserves the right to refuse to accept for your Guaranteed Lifetime Withdrawal Base any Additional Deposit in excess of $2,000,000 in Total
Gross Deposits if certain requirements are not met. If such an Additional Deposit is made and the requirements are not met, your Contract may be suspended which could lead to Contract termination. Please see
"Suspension and Termination Provisions,"
for more information.
Nationwide's claims paying ability.
The Contract is not a separate account product. This means
that the assets supporting the Contract are not held in a separate account of Nationwide for the exclusive benefit of Contract Owners and are not insulated from the claims of our creditors. Your Guaranteed Lifetime Income Payments will be paid from
our General Account and, therefore, are subject to our claims paying ability. Payments under the Contract are not guaranteed by MSSB.
Tax Consequences.
The Contract is novel and innovative. To date, the tax
consequences of the Contract have not been addressed in binding published legal authorities. We intend to treat your Contract as an annuity contract in reporting taxable income attributable to the Contract to you and to the Internal Revenue Service.
Assuming the Contract is correctly treated as an annuity contract for tax purposes, Guaranteed Lifetime Income Payments you receive in the Income Phase will be ordinary income to you that is taxable to the extent provided under the tax rules for
annuities. We believe that, in general, the tax treatment of transactions involving investments in Your Account more likely than not will be the same as it would be in the absence of the Contract. We can provide no assurances, however, that a court
would agree with the foregoing interpretations of the law if the Internal Revenue Service were to challenge the foregoing treatment. You should consult a tax advisor before purchasing a Contract (see
Federal Income
Tax Considerations
).
Your Relationship with MSSB
and Nationwide
The Contract.
The Contract is an individual supplemental immediate fixed
income annuity contract. That means that the Contract you are purchasing entitles you to an immediate fixed income annuity contract if, and only if, one of the triggering events discussed earlier in this prospectus occurs. The Contract is designed
for investors in Select UMA Models approved as Eligible Portfolios who intend to use the assets in their Account as the basis for periodic withdrawals to provide income for retirement or for other purposes.
Nationwide is not your investment advisor. Rather, MSSB
provides Overlay Manager services for the Eligible Portfolios that your Financial Advisor may recommend. Additionally, MSSB provides the Select UMA services even if you do not purchase a Nationwide Contract or decide to terminate your Nationwide
Contract. You and your Financial Advisor determine whether to invest in an Eligible Portfolio. If you decide to invest in an Eligible Portfolio, as a requirement to open Your Account, you will sign the Client Agreement.
The Select UMA program is governed by the Client Agreement
that you sign with MSSB. You sign the Client Agreement with MSSB at or before the time MSSB opens Your Account (a requirement for issuance of the Contract). In the Client Agreement, you authorize MSSB to provide investment advisory services to you,
including the selection of your Eligible Portfolio. MSSB will act through your Financial Advisor, an employee of MSSB, who serves as an advisor to you. The Overlay Manager is a division of MSSB. The Overlay Manager constructs and maintains your
Eligible Portfolio by implementing your choice of Model and Investment Product by arranging for the execution of trades in Your Account,
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placing orders for the purchase, sale, or redemption of shares of mutual
funds and exchange-traded funds in accordance with the Model you have selected, and rebalancing Your Account. Please read the Client Agreement carefully. More information regarding the Select UMA program is provided in the relevant MSSB Form ADV,
Schedule H (the "MSSB ADV"), which you may obtain from your MSSB Financial Advisor.
You may apply to purchase a Contract by completing an
application. When your application is approved, we provide the Contract's Guarantee to you on the assumption and condition that Your Account remains invested in one of the Eligible Portfolios or a Former Eligible Portfolio. We require MSSB to
provide data to us to monitor the Eligible Portfolios or Former Eligible Portfolio and to alert us of any changes to the allocations within them.
Your Financial Advisor is a representative of and is
affiliated with MSSB, the broker-dealer that is authorized to offer Your Account with these Contracts. Nationwide has an agreement with MSSB to offer the Contracts. MSSB works with your Financial Advisor to assist you in purchasing a Contract.
While the Contract is in the Accumulation and Withdrawal
Phases, MSSB is responsible for administering Your Account, including processing additional payments and withdrawals, deducting and remitting to us the Contract Fee, assessing advisory and any other fees associated with Your Account, and providing
you with statements, confirmations and other correspondence. During the Accumulation and Withdrawal Phases, Nationwide is responsible for maintaining your Guaranteed Lifetime Withdrawal information, including your Guaranteed Lifetime Withdrawal
Amount and your overall Guaranteed Lifetime Withdrawal Base.
If and when one of the triggering events occurs, you will be
contacted to elect to enter the Income Phase. You will close Your Account and transfer any remaining assets to us. We will then issue you an immediate fixed income annuity contract that will result in Guaranteed Lifetime Income Payments from us for
the remainder of your (and your spouse's, if the Spousal Continuation Option is elected) lifetime. Once the Income Phase begins, your relationship with MSSB, with respect to Your Account, terminates. All administrative responsibilities undertaken by
MSSB during the Accumulation and Withdrawal Phases will be performed by Nationwide, the issuer of the Contract and the entity obligated to pay you Guaranteed Lifetime Income Payments for the rest of your (or your spouse's, if the Spousal
Continuation Option is elected) lifetime.
Management of
Your Account.
Management of Your Account is governed by
the Client Agreement. The Contract requires that you remain invested in one of the Eligible Portfolios or a Former Eligible Portfolio in order to maintain the Guarantee associated with the Contract. Neither Nationwide nor MSSB is responsible for
ensuring that the assets in Your Account remain invested according to the terms of the Contract.
The Accumulation Phase
Once Your Account is opened and you purchase the Contract, you
will begin the first phase of the Contract – the Accumulation Phase. During this phase, you will establish your original Guaranteed Lifetime Withdrawal Base, which is equal to Your Account Value when the Contract is issued.
What is the Guaranteed Lifetime Withdrawal Base and how is it
calculated?
The Guaranteed Lifetime Withdrawal Base is
the amount we use to calculate the Guaranteed Lifetime Withdrawals. On the date we issue the Contract, your original Guaranteed Lifetime Withdrawal Base equals Your Account Value. The anniversary of the date we issue your Contract is known as the
"Contract Anniversary" and each one-year period between subsequent Contract Anniversaries is referred to as a "Contract Year."
Can the Guaranteed Lifetime Withdrawal Base change during the
Accumulation Phase?
Yes. There are several ways that
your Guaranteed Lifetime Withdrawal Base can increase or decrease during the Accumulation Phase:
1.
The Annual Benefit Base Review
.
On each Contract Anniversary during the Accumulation Phase, we do an Annual Benefit Base Review to see if you are eligible for an increase to your Guaranteed
Lifetime Withdrawal Base. We will examine the following three items and Your Guaranteed Lifetime Withdrawal Base will be set equal to the greatest of:
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(a)
the current Guaranteed
Lifetime Withdrawal Base, adjusted for transactions in the previous Contract Year that affected the Guaranteed Lifetime Withdrawal Base;
(b)
Your Account Value as of the
Contract Anniversary; or
(c)
the
original Guaranteed Lifetime Withdrawal Base with a 5% roll-up. This is equal to the original Guaranteed Lifetime Withdrawal Base plus 5% of the original Guaranteed Lifetime Withdrawal Base for each Contract Anniversary that has been reached. An
adjustment will be made to the calculations for transactions that increase or decrease the Guaranteed Lifetime Withdrawal Base.
Any increase to the Guaranteed Lifetime Withdrawal Base will
be automatic if there are no terms and conditions changes. Otherwise, we require an election to increase the Guaranteed Lifetime Withdrawal Base (see
Terms and Conditions of the Contract
for an explanation of
the impact upon the Guaranteed Lifetime Withdrawal Base if there is a terms and conditions change).
Note:
Since the Contract Fee
is calculated based on the Guaranteed Lifetime Withdrawal Base, increases to the Guaranteed Lifetime Withdrawal Base will result in higher Contract Fees. Under the automatic Annual Benefit Base Review feature, you agree to pay the larger
Fee.
You can cancel the automatic Annual Benefit
Base Review by notifying us.
2.
Additional Deposits to Your
Account in the Accumulation Phase.
The Contract permits you to make Additional Deposits to Your Account during the Accumulation Phase. Additional Deposits will result in an immediate increase to
your Guaranteed Lifetime Withdrawal Base equal to the dollar amount of the Additional Deposit.
Note:
We reserve the right to
refuse to accept an Additional Deposit made into Your Account for your Guaranteed Lifetime Withdrawal Base that brings your Total Gross Deposits above $2,000,000 (see
Suspension and
Termination Provisions
). Your Account Value may increase above $2,000,000 due to market performance without suspension.
3.
Early Withdrawals from Your
Account.
An Early Withdrawal is any withdrawal you take from Your Account prior to your elected Withdrawal Start Date (discussed later in this provision). Early Withdrawals will result in a
decrease to your Guaranteed Lifetime Withdrawal Base. The amount of that decrease will be the greater of (a) or (b), where:
(a)
=
the
 dollar amount of the Early Withdrawal; and
(b)
=
a
 "proportional amount" derived from the following calculation: (A ÷ B) × C, where:
A
=
the
 dollar amount of the Early Withdrawal;
B
=
Your
 Account Value on the date of the Early Withdrawal; and
C
=
your
 Guaranteed Lifetime Withdrawal Base on the date of the Early Withdrawal.
Note:
When an Early Withdrawal
occurs at a time when the market is doing well enough that Your Account Value exceeds the Guaranteed Lifetime Withdrawal Base, an Early Withdrawal will result in a dollar for dollar reduction in the Guaranteed Lifetime Withdrawal Base. When an Early
Withdrawal occurs at a time when the market has declined so that Your Account Value is less than the Guaranteed Lifetime Withdrawal Base, an Early Withdrawal will result in a proportional reduction to the Guaranteed Lifetime Withdrawal Base.
Furthermore, the more the market has declined (i.e., the greater the difference between Your Account Value and the Guaranteed Lifetime Withdrawal Base), the greater impact the proportional reduction will have on the remaining Guaranteed Lifetime
Withdrawal Base resulting in a larger decrease to the overall Guaranteed Lifetime Withdrawals.
Example
 Early Withdrawal Calculations
In
 this example, the Account Value is greater than the Guaranteed Lifetime Withdrawal Base.
In
 this example, the Account Value is less than the Guaranteed Lifetime Withdrawal Base:
At
 the time of the Early Withdrawal:
At
 the time of the Early Withdrawal:
Account
 Value
=
$500,000
Account
 Value
=
$400,000
Guaranteed
 Lifetime Withdrawal Base
=
$450,000
Guaranteed
 Lifetime Withdrawal Base
=
$450,000
Withdrawal
 Amount
=
$15,000
Withdrawal
 Amount
=
$15,000
Guaranteed
 Lifetime Withdrawal Base reduction calculations:
Guaranteed
 Lifetime Withdrawal Base reduction calculations:
Dollar
 amount
=
$15,000
Dollar
 amount
=
$15,000
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Example
 Early Withdrawal Calculations
In
 this example, the Account Value is greater than the Guaranteed Lifetime Withdrawal Base.
In
 this example, the Account Value is less than the Guaranteed Lifetime Withdrawal Base:
Proportional
 amount
($15,000 ÷ $500,000) x $450,000
=
$13,500
Proportional
 amount
($15,000 ÷ $400,000) x $450,000
=
$16,875
After
 the Early Withdrawal:
After
 the Early Withdrawal:
Account
 Value
($500,000 - $15,000)
=
$485,000
Account
 Value
($400,000 - $15,000)
=
$385,000
Guaranteed
 Lifetime Withdrawal Base
($450,000 - $15,000)
=
$435,000
Guaranteed
 Lifetime Withdrawal Base
($450,000 - $16,875)
=
$433,125
In the case of an Early Withdrawal
that causes any reduction to your Guaranteed Lifetime Withdrawal Base, we will provide you with the opportunity to restore your Guaranteed Lifetime Withdrawal Base to the amount that was in effect prior to the Early Withdrawal. To do so, within 45
days of the withdrawal, you must make Additional Deposits to Your Account equal to or greater than the Early Withdrawal amount, and submit a request to us in writing to restore your Guaranteed Lifetime Withdrawal Base as of the date of the Early
Withdrawal. In the event you restore your Guaranteed Lifetime Withdrawal Base after an Early Withdrawal, we reserve the right to limit this restoration of your Guaranteed Lifetime Withdrawal Base to one time per Contract Year, not to exceed three
times during the life of the Contract. We will confirm with you that your Guaranteed Lifetime Withdrawal Base is restored, and will notify you if you reach the limit of withdrawal restorations.
What if the Account Value falls to the Minimum Account Value
before the Withdrawal Start Date but your Guaranteed Lifetime Withdrawal Base is above zero?
If Your Account Value falls below the Minimum Account Value
before your Withdrawal Start Date, your Contract will be suspended (see
Suspension and Termination Provisions
).
The Withdrawal Phase
What events trigger the Withdrawal Phase?
Your Account and the Contract will continue in the
Accumulation Phase until you (or in the case of Co-Annuitants, the younger Co-Annuitant) reach the age of 55 and affirmatively elect to enter the second phase of the Contract – the Withdrawal Phase. To elect to enter the Withdrawal Phase, you
and your Financial Advisor must complete a Withdrawal Phase election form and send the form to the Service Center.
What is the Withdrawal Start Date and what does it mean?
Your Withdrawal Start Date is the date that we receive a
completed Withdrawal Phase election form indicating your choice, once you are eligible under the Contract to enter the Withdrawal Phase. The Withdrawal Phase entitles you to begin taking annual withdrawals up to the Guaranteed Lifetime Withdrawal
Amount (discussed later in this provision) without reducing your Guaranteed Lifetime Withdrawal Base. To be eligible to enter the Withdrawal Phase, you must reach age 55 or older. In the case of Co-Annuitants, your eligibility to elect to enter the
Withdrawal Phase is based on the date the younger Co-Annuitant reaches the age of 55. However, for Contracts owned by an IRA, distributions in an amount necessary to satisfy your minimum required distributions as provided in the Internal Revenue
Code will not reduce your Guaranteed Lifetime Withdrawal Base, regardless of the age of your spouse. This means that if you must meet required minimum distributions, you may enter the Withdrawal Phase.
If you are eligible, and you wish to enter the Withdrawal
Phase, you must complete a Withdrawal Phase election form. You may request the form through your Financial Advisor or from the Service Center. Your Withdrawal Start Date will be the date we receive your completed Withdrawal Phase election form at
the Service Center, even if you do not take an actual withdrawal at that time. We will notify you that we received your completed Withdrawal Phase election form. If you take a withdrawal after the age of 55 and have not completed the Withdrawal
Phase election form, you and your Financial Advisor will be notified. Upon notification, if you do not complete a Withdrawal Phase election form within 30 days, your withdrawal will be considered an Early Withdrawal and your Guaranteed Lifetime
Withdrawal Base will be reduced as stated in the
Early Withdrawals from Your Account
section.
Note
: If your Withdrawal Start Date is in the initial Contract Year or in
the year you turn 55, the amount of your initial withdrawals may be prorated based upon the number of days remaining in that calendar year.
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If you do not affirmatively elect to enter the Withdrawal
Phase, every withdrawal you take will be considered an Early Withdrawal. As described in the
Early Withdrawals from Your Account
section, Early Withdrawals will reduce your Guaranteed Lifetime Withdrawal Base.
If you do not enter the Withdrawal Phase, you will continue to pay for the Guarantee but will not receive the benefit of the Guaranteed Lifetime Withdrawals.
Once you enter the Withdrawal Phase, the Early Withdrawal
provisions of this prospectus are inapplicable to your Contract and your potential 5% roll-up to the Guaranteed Lifetime Withdrawal Base that was available in the Accumulation Phase will no longer be available.
What is the Guaranteed Lifetime Withdrawal Amount and how is it
calculated?
The Guaranteed Lifetime Withdrawal Amount is
the maximum amount you may withdraw each calendar year after your Withdrawal Start Date without reducing your Guaranteed Lifetime Withdrawal Base. The Guaranteed Lifetime Withdrawal Amount is calculated by multiplying your Guaranteed Lifetime
Withdrawal Base by your Guaranteed Lifetime Withdrawal Percentage.
Your Guaranteed Lifetime Withdrawal Percentage depends on your
age (or in the case of Co-Annuitants, the younger Co-Annuitant's age) at the time of the withdrawal. Your Guaranteed Lifetime Withdrawal Percentage will automatically increase on the calendar year after you (or in the case of Co-Annuitants, the
younger Co-Annuitant) turns 65.
Your
 Age (or in the case of a Co-Annuitant, the age of
the younger Co-Annuitant) at the time of the withdrawal
Guaranteed
 Lifetime
Withdrawal Percentage
55 –
64
4%
65 or
older
5%
In other words:
Guaranteed
 Lifetime
Withdrawal Amount
=
Guaranteed
 Lifetime
Withdrawal Base
X
Guaranteed
 Lifetime
Withdrawal Percentage
Note:
Although withdrawals
taken that do not exceed the Guaranteed Lifetime Withdrawal Amount do not reduce the Guaranteed Lifetime Withdrawal Base, they do reduce Your Account Value.
Note:
Your Guaranteed Lifetime
Withdrawal Amount should be considered when you determine your periodic withdrawal strategy for retirement income or other purposes. Amounts withdrawn in excess of the Guaranteed Lifetime Withdrawal Amount will negatively impact your Guaranteed
Lifetime Withdrawal Base and any Guaranteed Lifetime Income Payments that may be payable to you under this Contract in the future.
The Guaranteed Lifetime Withdrawal Amount is not cumulative.
In other words, taking less than the Guaranteed Lifetime Withdrawal Amount in one calendar year does not entitle you to withdraw more than the Guaranteed Lifetime Withdrawal Amount in a subsequent calendar year.
Can the Guaranteed Lifetime Withdrawal Base change during the
Withdrawal Phase?
Yes. There are several ways that your
Guaranteed Lifetime Withdrawal Base can increase or decrease during the Withdrawal Phase:
1.
The Annual Benefit Base Review.
On each Contract Anniversary during the Withdrawal Phase, we do an Annual Benefit Base Review to see if you are eligible for an increase to your Guaranteed Lifetime Withdrawal Base. We will examine the
following two items and your Guaranteed Lifetime Withdrawal Base will be set equal to the greater of:
(a)
the current Guaranteed
Lifetime Withdrawal Base, adjusted for transactions in the previous Contract Year that affected the Guaranteed Lifetime Withdrawal Base; or
(b)
Your
Account Value as of the Contract Anniversary.
Any increase to the Guaranteed Lifetime Withdrawal Base will
be automatic if there are no terms and conditions changes. Otherwise, we require an election to increase the Guaranteed Lifetime Withdrawal Base. See
Terms and Conditions of the Contract
for an explanation of
the impact upon the Guaranteed Lifetime Withdrawal Base if there is a terms and conditions change.
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Note:
Since the Contract Fee
is calculated based on the Guaranteed Lifetime Withdrawal Base, increases to the Guaranteed Lifetime Withdrawal Base will result in higher Contract Fees. Under the automatic Annual Benefit Base Review feature, you agree to pay the larger
Fee.
You can cancel the automatic Annual Benefit
Base Review by notifying us.
2.
Additional Deposits to Your
Account in the Withdrawal Phase
. Just as in the Accumulation Phase, the Contract permits you to make Additional Deposits to Your Account during the Withdrawal Phase, which will result in an
immediate increase to your Guaranteed Lifetime Withdrawal Base equal to the dollar amount of the Additional Deposit.
Note:
We reserve the right to
refuse to accept an Additional Deposit made into Your Account for your Guaranteed Lifetime Withdrawal Base that brings your Total Gross Deposits above $2,000,000 (see
Suspension and
Termination Provisions
). Your Account Value may increase above $2,000,000 due to market performance without suspension.
3.
Excess Withdrawals from Your
Account.
Excess Withdrawals are any withdrawals taken after your Withdrawal Start Date that, during any calendar year, exceed the Guaranteed Lifetime Withdrawal Amount. Excess Withdrawals will
result in a decrease to your Guaranteed Lifetime Withdrawal Base. The amount of that decrease will be the greater of (a) or (b), where:
(a)
=
the
 dollar amount of the Excess Withdrawal (the amount withdrawn during any calendar year in excess of the Guaranteed Lifetime Withdrawal Amount); and
(b)
=
a
 "proportional amount" derived from the following calculation: (A ÷ B) × C, where:
A
=
the
 dollar amount of the Excess Withdrawal;
B
=
Your
 Account Value (which will be reduced by any Guaranteed Lifetime Withdrawal Amount taken) on the date of the Excess Withdrawal; and
C
=
your
 Guaranteed Lifetime Withdrawal Base on the date of the Excess Withdrawal
Note:
When an Excess
Withdrawal occurs at a time when the market is doing well enough that Your Account Value exceeds the Guaranteed Lifetime Withdrawal Base, an Excess Withdrawal will result in a dollar for dollar reduction in the Guaranteed Lifetime Withdrawal Base.
When an Excess Withdrawal occurs at a time when the market has declined so that Your Account Value is less than the Guaranteed Lifetime Withdrawal Base, an Excess Withdrawal will result in a proportional reduction to the Guaranteed Lifetime
Withdrawal Base. Furthermore, the more the market has declined (i.e., the greater the difference between Your Account Value and the Guaranteed Lifetime Withdrawal Base), the greater impact the proportional reduction will have on the remaining
Guaranteed Lifetime Withdrawal Base, resulting in a larger decrease to overall Guaranteed Lifetime Withdrawals.
Example
 Excess Withdrawal Calculations
In
 this example, the Account Value is greater than
the Guaranteed Lifetime Withdrawal Base:
In
 this example, the Account Value is less than the
Guaranteed Lifetime Withdrawal Base:
At
 the time of the Excess Withdrawal:
At
 the time of the Excess Withdrawal:
Account
 Value
=
$500,000
Account
 Value
=
$400,000
Guaranteed
 Lifetime Withdrawal Base
=
$450,000
Guaranteed
 Lifetime Withdrawal Base
=
$450,000
Guaranteed
 Lifetime Withdrawal Amount
=
$22,500
Guaranteed
 Lifetime Withdrawal Amount
=
$22,500
Withdrawal
 Amount
=
$30,000
Withdrawal
 Amount
=
$30,000
Excess
 Withdrawal Amount
($30,000 - $22,500)
=
$7,500
Excess
 Withdrawal Amount
($30,000 - $22,500)
=
$7,500
Guaranteed
 Lifetime Withdrawal Base reduction calculations:
Guaranteed
 Lifetime Withdrawal Base reduction calculations:
Dollar
 amount
=
$7,500
Dollar
 amount
=
$7,500
Proportional
 amount
($7,500 ÷ $477,500) x $450,000
=
$7,068
Proportional
 amount
($7,500 ÷ $377,500) x $450,000
=
$8,940
After
 the Excess Withdrawal:
After
 the Excess Withdrawal:
Account
 Value
($500,000 - $30,000)
=
$470,000
Account
 Value
($400,000 - $30,000)
=
$370,000
Guaranteed
 Lifetime Withdrawal Base
($450,000 - $7,500)
=
$442,500
Guaranteed
 Lifetime Withdrawal Base
($450,000 - $8,940)
=
$441,060
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If your Contract is issued as an asset in an IRA, and the only
withdrawals you take from the assets in Your Account are those taken to meet required minimum distributions for that account under the Internal Revenue Code, those withdrawals will not be considered Excess Withdrawals, even if the withdrawal exceeds
the Guaranteed Lifetime Withdrawal Amount.
In the case
of an Excess Withdrawal that causes any reduction to your Guaranteed Lifetime Withdrawal Base, we will provide you with the opportunity to restore your Guaranteed Lifetime Withdrawal Base to the amount that was in effect prior to the Excess
Withdrawal. To do so, within 45 days of the withdrawal, you must make Additional Deposits to Your Account equal to or greater than the Excess Withdrawal amount, and submit a request to us in writing to restore your Guaranteed Lifetime Withdrawal
Base as of the date of the Excess Withdrawal. In the event you restore your Guaranteed Lifetime Withdrawal Base after an Excess Withdrawal, we reserve the right to limit this restoration of your Guaranteed Lifetime Withdrawal Base to one time per
Contract Year, not to exceed three times during the life of the Contract. We will confirm with you that your Guaranteed Lifetime Withdrawal Base is restored, and will notify you if you reach the limit of withdrawal restorations.
Note:
The Guaranteed Lifetime
Withdrawal Base will never decrease due to market performance, even if Your Account Value goes down.
Do Early Withdrawals and Excess Withdrawals affect the
Guaranteed Lifetime Withdrawal Amount and the Guaranteed Lifetime Withdrawal Base differently?
Yes. Early Withdrawals are considered "early" because they are
taken before your Withdrawal Start Date, when your Guaranteed Lifetime Withdrawal Amount has not yet been established. If you take Early Withdrawals, your Guaranteed Lifetime Withdrawal Base will be reduced by the greater of the dollar amount of the
Early Withdrawal or the proportional amount calculation. The proportional amount calculation for Early Withdrawals (as described above) uses Your Account Value at the time of the Early Withdrawal.
Excess Withdrawals are in "excess" of your Guaranteed Lifetime
Withdrawal Amount, an amount established after your Withdrawal Start Date. If you take withdrawals in excess of your Guaranteed Lifetime Withdrawal Amount, your Guaranteed Lifetime Withdrawal Base will be reduced by the greater of the dollar amount
of the Excess Withdrawal or the proportional amount calculation. The proportional amount calculation for Excess Withdrawals (as described above) will apply to Your Account Value on the date of the Excess Withdrawal (minus any Guaranteed Lifetime
Withdrawal Amount taken on that day). Thus, Your Account Value is reduced by the Guaranteed Lifetime Withdrawal Amount and any Excess Withdrawal Amount.
What if the Account Value and the Guaranteed Lifetime
Withdrawal Base decline to zero due to Excess Withdrawals during the Withdrawal Phase?
If both Your Account Value and the Guaranteed Lifetime
Withdrawal Base decline to zero, the Contract will automatically terminate without value.
Triggering the Income Phase
What events will trigger the Income Phase?
Your Account will continue in the Withdrawal Phase until any
of the following events, referred to as "triggering events," occurs:
•
Your Account Value, after
your Withdrawal Start Date, falls below the greater of $10,000 or the Guaranteed Lifetime Withdrawal Amount (the "Minimum Account Value");
•
Your Account Value is
invested in the Minimum Account Value Eligible Portfolio, as discussed in the
Suspension and Termination Provisions
section, and you reach your Withdrawal Start Date; or
•
You,
after your Withdrawal Start Date, affirmatively elect to begin the Income Phase by submitting the appropriate administrative forms.
For Contracts owned by an IRA, the Co-Annuitant for whom the
IRA was established shall not be precluded from entering the Income Phase if a triggering event occurs, regardless of the age of their spouse.
Note:
It is possible that you
may never begin the Income Phase. If you (and your spouse, if the Spousal Continuation Option is elected) die before any of the triggering events occurs, no benefit is payable under this Contract.
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How is the Contract transitioned into the Income Phase?
If, and when, a triggering event occurs, we will send you a
written notice informing you that you have met all of the conditions in order for your Contract to transition from the Withdrawal Phase to the Income Phase. The notice will contain an Income Phase election form.
If you decide to transition your Contract into the Income
Phase, you must return the executed Income Phase election form to the Service Center and instruct MSSB to liquidate Your Account and transfer any remaining balance to us. Any unpaid Contract Fee will be charged against Your Account on a pro-rated
basis, but will not affect your Guaranteed Lifetime Withdrawal Base. We will accept those assets as a premium payment for your immediate fixed income annuity contract ("Annuity"). Shortly thereafter, we will issue your Annuity, and we will begin
making Guaranteed Lifetime Income Payments to you. The date the Annuity is issued is referred to as the "Annuity Commencement Date." The Guaranteed Lifetime Income Payments will continue for as long as you (or your spouse, if the Spousal
Continuation Option is elected) live.
If you decide not
to transition your Contract into the Income Phase by indicating your choice on the Income Phase election form and returning the form to the Service Center, your Contract will terminate and we will make no payments to you.
If we do not receive an Income Phase election form within 90
days of sending it from the Service Center, we will assume you do not intend to transition your Contract into the Income Phase and you wish to terminate your Contract. The Contract Fees that you have paid us, including the fees that you paid during
this 90 day period, will not be refunded. You will not receive any benefits of the Guarantee and will not receive any Guaranteed Lifetime Income Payments from us.
The Income Phase
How much will each Guaranteed Lifetime Income Payment be?
Each Guaranteed Lifetime Income Payment will be the same
amount as your most recent Guaranteed Lifetime Withdrawal Amount. However, your first Guaranteed Lifetime Income Payment will be prorated based on the amount previously withdrawn during the calendar year prior to beginning the Income Phase. No
Additional Deposits and no Guaranteed Lifetime Withdrawals are permitted.
Will the Guaranteed Lifetime Income Payment ever increase or
decrease?
No. The Guaranteed Lifetime Income Payments
will always be the same amount.
How often are the
Guaranteed Lifetime Income Payments paid?
The Guaranteed
Lifetime Income Payments will be paid to you at the frequency you request on your Income Phase election form.
Note:
Although you elect the
frequency of payment, we reserve the right to decrease the frequency so that each scheduled payment is at least $100.
How long will the Guaranteed Lifetime Income Payments be
paid?
Once the Guaranteed Lifetime Income Payments
begin, they will continue until the death of the Annuitant (or the Co-Annuitant if the Spousal Continuation Option was elected).
Terms and Conditions of the Contract
What does it mean to have a change in "terms and conditions" of
the Contract?
Nationwide can change certain terms and
conditions of the Contract after you have purchased the Contract. These terms and conditions are: determination of which Select UMA Models are Eligible Portfolios and changes to the Contract Fee Percentages associated with the Eligible
Portfolios.
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How will a change to the terms and conditions of the Contract
affect an existing Contract?
If Nationwide changes one
or more terms and conditions of the Contract after it is issued, the change will not apply to your Contract unless you agree to such change. Your acceptance or rejection of any such change will impact the Annual Benefit Base Review which, as of the
effective date of the change of terms and conditions, will no longer be automatic. Rather, in order to take advantage of any Annual Benefit Base Review, you will have to consent to have the Annual Benefit Base Review applied to your Contract. In
other words, in order to receive the benefit associated with the Annual Benefit Base Review, you must also accept the new terms and conditions associated with the Contract. At the time of the terms and conditions change, we will provide you with the
information necessary to make this determination. Specifically, we will provide: Your Account Value; the current Guaranteed Lifetime Withdrawal Base; the current terms and conditions associated with the Contract; and instructions on how to
communicate your election to Nationwide.
If you accept
the new terms and conditions associated with the Contract, we will continue with the Annual Benefit Base Review at the time of your next Contract Anniversary.
If you refuse to accept the terms and conditions, or we do not
receive your election to accept the terms and conditions change within 60 days after the day we send notification to you (in which case we will assume you do not intend to invoke the Annual Benefit Base Review), the new terms and conditions of the
Contract will not apply to your Contract. Your Guaranteed Lifetime Withdrawal Base will stay at the same value as of the most recent Contract Anniversary and you will no longer have an Annual Benefit Base Review. However, if you submit Additional
Deposits to Your Account, you will receive a dollar for dollar increase to your Guaranteed Lifetime Withdrawal Base. Once you decline a terms and conditions change, you will no longer be permitted to accept any other terms and conditions change or
reinstate your Annual Benefit Base Review.
If we
re-characterize an Eligible Portfolio to a Former Eligible Portfolio, you will be notified of this term and condition change as stated in this section. If you choose to switch to another Eligible Portfolio, you may continue your Annual Benefit Base
Review. If you choose to remain in the Former Eligible Portfolio, you will no longer be permitted to accept any other terms and conditions change or reinstate your Annual Benefit Base Review, and the cost of the Former Eligible Portfolio will remain
the same. If MSSB no longer offers a Former Eligible Portfolio, the terms of the
Suspension and Termination Provisions
section will apply.
During the first two years of the Contract, we guarantee that
the Contract Fee Percentage will not increase from the price that was in effect at the time you purchased the Contract. Other terms and conditions may change upon notice to you as stated above. After your second Contract Anniversary, Contract Fee
Percentage changes are considered a term and condition change. Any Contract Fee Percentage increase will not rise above the maximum Contract Fee Percentage provided in the
How much will the Contract cost?
and
The Contract Fee
sections of this prospectus, and you will be notified of any terms and conditions change according to this
Terms and Conditions of the Contract
section.
Spousal Continuation Option
What is the Spousal Continuation Option?
The Spousal Continuation Option allows, upon your death, your
surviving spouse to continue the Contract and receive all the rights and benefits associated with the Contract, including Guaranteed Lifetime Withdrawals and, possibly, Guaranteed Lifetime Income Payments.
Election of the Spousal Continuation Option.
The following conditions apply to Contracts electing the
Spousal Continuation Option:
(1)
The Spousal Continuation
Option must be elected at the time of application, and the younger spouse must be between 45 and 80 and the older spouse must be 84 or younger.
(2)
Both spouses (or a revocable
trust of which either or both of the spouses is/are grantor(s)) must be named as owners of Your Account and the Annuitant(s) of Your Contract. For Contracts issued to IRAs and Roth IRAs, you and your spouse must be Co-Annuitants, and the person for
whom the IRA or Roth IRA was established must name their spouse the sole beneficiary of Your Account.
(3)
If, prior
to the Withdrawal Start Date, your marriage terminates due to divorce, dissolution, or annulment, or a Co-Annuitant dies, we will remove the Spousal Continuation Option from your Contract after you submit to the Service
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Center a written request and
evidence of the marriage termination or death that is satisfactory to Nationwide. After removal of the Spousal Continuation Option, we will not charge you the Spousal Continuation Option Fee Percentage. Once the Spousal Continuation Option is
removed from the Contract, the option may not be re-elected or added to cover a subsequent spouse.
(4)
If, on or after the
Withdrawal Start Date, your marriage terminates due to divorce, dissolution, or annulment, or a Co-Annuitant dies, you may not remove the Spousal Continuation Option from the Contract. The remaining Owner of the Contract will continue to be charged
the Spousal Continuation Option Fee Percentage, and after the remaining Owner of the contract submits to the Service Center a written request in a form acceptable to Nationwide, the remaining Owner of the Contract's former spouse will no longer be
eligible to receive withdrawals.
(5)
For Contracts with
non-natural owners (other than IRAs), one spouse must be the Annuitant and the other spouse must be the Co-Annuitant.
(6)
Upon either Co-Annuitant's
death, the surviving spouse must keep Your Account open and comply with all of the requirements of this Contract.
(7)
If you
enter the Income Phase of the Contract, both you and your spouse must be named primary beneficiaries of the Contract at that time to ensure the Guaranteed Lifetime Income Payments will continue for both lives.
How much does the Spousal Continuation Option cost?
The maximum Spousal Continuation Option Fee Percentage is
0.30% of your Guaranteed Lifetime Withdrawal Base. Currently, the Spousal Continuation Option Fee Percentage is 0.20% of your Guaranteed Lifetime Withdrawal Base and is assessed in the same manner and at the same time as the Contract Fee. The
Spousal Continuation Fee is in addition to the Contract Fee, resulting in a maximum total of 1.75% and a current total of 1.20%.
Is it possible to pay for the Spousal Continuation Option but
not receive a benefit from it?
There are situations
where you would not receive the benefit of the Spousal Continuation Option. For example, if on or after the Withdrawal Start Date your spouse dies before you, the benefits associated with the option will not be realized. Also, if withdrawals are
taken after the Withdrawal Start Date and your marriage terminates due to death, divorce, dissolution, or annulment, you may not remove the Spousal Continuation Option from the Contract and you must continue to pay the Spousal Continuation Option
Fee.
The Contract Fee
How much is the Contract Fee?
The maximum Contract Fee Percentage for the Contract is a rate
of 1.45% of the Guaranteed Lifetime Withdrawal Base. The current Contract Fee Percentage is 1.00% of the Guaranteed Lifetime Withdrawal Base. If you choose to elect the Spousal Continuation Option, there is an additional fee (see
How much does the Spousal Continuation Option cost?
). Once your Contract is issued, the Contract Fee associated with your Contract will not increase, except possibly, if you affirmatively elect the change of any
terms and conditions, or if you have to go to the Minimum Account Value Eligible Portfolio and the Contract Fee Percentage is higher (see
Terms and Conditions of the Contract
).
The Contract Fee is in addition to charges that are imposed in
connection with advisory, custodial, platform and other services, or charges imposed by Investment Products comprising Your Account at MSSB.
We provide a price guarantee during the first two years that
you own the Contract. During this time, your Contract Fee Percentage will not increase above the Contract Fee Percentage that was in place at the date of issuance of the Contract. After your second Contract Anniversary, a change in the Contract Fee
Percentage will be considered a terms and conditions change (see
Terms and Conditions of the Contract
).
Some states and other governmental entities (e.g.,
municipalities) charge premium taxes or similar taxes to Nationwide. Nationwide will not pass these taxes through to the Contract owner.
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When and how is the Contract Fee assessed?
The Contract Fee is only assessed during the Accumulation and
Withdrawal Phases of the Contract. It is deducted from Your Account on a calendar quarter basis at the beginning of each quarter in the same manner as MSSB's advisory fees for Your Account. The Fee is paid in advance based on the value of the
Guaranteed Lifetime Withdrawal Base as of the last day of the previous calendar quarter. If you make an Additional Deposit or take an Early or Excess Withdrawal during the pre-paid quarter, your Fee will not be impacted for that quarter since the
Fee was paid in advance. The Fee for the following quarter will be impacted because the Guaranteed Lifetime Withdrawal Base will reflect any increase from an Additional Deposit or a decrease from an Early or Excess Withdrawal.
The Contract Fee Percentage is assessed at the beginning of
the quarter because it corresponds with MSSB's billing, and the quarterly billing will have no other impact other than to reduce Your Account Value. The Contract Fee will be deducted by MSSB and remitted to us. To facilitate this, you must sign the
Client Agreement allowing MSSB to deduct the Fee from Your Account. The sale or transfer of investments in Your Account to pay the Contract Fee will not reduce your Guaranteed Lifetime Withdrawal Base, but will reduce Your Account Value.
For example:
Contract Fee
Percentage:
1.00%
Number of days in calendar
quarter:
90
Number of days in the calendar
year:
365
Guaranteed Lifetime Withdrawal Base
(as of the end of the previous
quarter):
$
500,000
Contract Fee Calculation:
$500,000 x [1.00% x (90 ÷ 365)]
=
$1,232.87
If your Contract is issued in the
middle of a quarter, we will prorate your Contract Fee for that quarter. Thereafter, the Fee for the next calendar quarter will be calculated based on the Guaranteed Lifetime Withdrawal Base as of the end of the prior calendar quarter. If you
terminate your Contract in the middle of a quarter, we will prorate that quarter's Fee and will return the remainder to you.
We will allow you the flexibility to pay the Fees in ways
other than through a deduction from Your Account consistent with your Client Agreement.
Will the Contract Fee be the same amount from quarter to
quarter?
Since the Fee is based on your Guaranteed
Lifetime Withdrawal Base at the end of the previous quarter, any time the Guaranteed Lifetime Withdrawal Base increases (via Additional Deposits or the Annual Benefit Base Review) so does the amount of the Fee for the next quarter. Likewise, any
time the Guaranteed Lifetime Withdrawal Base decreases (via Early Withdrawals or Excess Withdrawals), so does the amount of the Fee for the next quarter. Additionally, if you elect an Annual Benefit Base Review when a higher or lower Contract Fee
Percentage is in effect, the dollar amount of your Contract Fee will increase or decrease accordingly. Thus, the only way the dollar amount of your Contract Fee will remain the same is if your Guaranteed Lifetime Withdrawal Base and the Contract Fee
Percentage associated with your Contract stays the same.
Will advisory and other fees impact the Account Value and the
Guarantee under the Contract?
They might. The provisions
of your Contract currently allow for a "Withdrawal Exception" whereby withdrawals up to a certain amount can be deducted from Your Account each calendar quarter to pay for MSSB's advisory and other service fees associated with Your Account without
being considered Early Withdrawals/Excess Withdrawals, as applicable. Currently, the maximum amount of the Withdrawal Exception is a total of 3.00% of Your Account Value each calendar year.
If MSSB's actual fees for advice and other services exceed
3.00% of Your Account Value, and you withdraw the entire fee amount from Your Account, the amount withdrawn above the 3.00% limit will be considered an Early Withdrawal/Excess Withdrawal, as applicable, and will reduce your Guaranteed Lifetime
Withdrawal Base. This means that if you have not yet reached your Withdrawal Start Date and you exceed the Withdrawal Exception, you will have an Early Withdrawal. If you have reached your Withdrawal Start Date and you exceed the Withdrawal
Exception, you will have an Excess Withdrawal if you also take the full Guaranteed Lifetime Withdrawal Amount for that year. Both Early Withdrawals and Excess Withdrawals reduce your Guaranteed Lifetime Withdrawal Base.
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Managing Withdrawals from Your Account
There are many factors that will influence your decision of
when to take withdrawals from Your Account and in what amount. No two investors' situations will be exactly the same. You should carefully weigh your decision to take withdrawals from Your Account, the timing of the withdrawals, and the amounts. You
should consult with your Financial Advisor and a tax advisor. In addition to the advice you may receive from your advisor, here are a few things to consider:
First:
Early
 Withdrawals and Excess Withdrawals will reduce your Guaranteed Lifetime Withdrawal Base. The reduction may be substantial, especially if Your Account Value is significantly lower than it was when the Guaranteed Lifetime Withdrawal Base was last
computed or adjusted.
Second:
Once
 you are ready to begin taking withdrawals of the Guaranteed Lifetime Withdrawal Amount from Your Account, consider setting up a quarterly, monthly or other systematic withdrawal program. Doing so may help limit the risk that you will make an Excess
Withdrawal.
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Third:
Consider
 the timing of your withdrawals. Because your Guaranteed Lifetime Withdrawal Base can increase on your Contract Anniversary via the automatic Annual Benefit Base Review, the higher Your Account Value is on your Contract Anniversary, the more likely
you will be to receive an increase in your Guaranteed Lifetime Withdrawal Base. You might have a higher Guaranteed Lifetime Withdrawal Base if you defer withdrawals until after your Contract Anniversary.
Fourth:
Consider
 that the longer you wait to begin taking withdrawals of the Guaranteed Lifetime Withdrawal Amount, the less likely it is that you will receive any Guaranteed Lifetime Income Payments. Taking withdrawals reduces Your Account Value. If you wait to
begin taking withdrawals, you are likely to reach the Minimum Account Value later in your life, and at the same time, your remaining life expectancy will be shorter.
Death Provisions
The treatment of the Contract upon the death of an Annuitant
depends on a number of factors. Those include whether the Contract Owner is a natural or non-natural person, whether there is a Co-Annuitant, and whether the Contract is in the Accumulation or Withdrawal Phase or the Income Phase.
Annuitant's
 Death in Accumulation or Withdrawal Phase
Annuitant's
 Death in Income Phase
Sole
Contract
Owner
Sole
 Annuitant
(no Spousal Continuation Option)
The
 Contract terminates and we will make no payments under the Contract. We will return that portion of the current quarter's Contract Fee attributable to the time period between your death and the end of the current calendar quarter.
We
 will calculate the remaining amount of transferred Account Value that has not yet been paid to you in the form of Guaranteed Lifetime Income Payments. We will make payments to your beneficiary in the same frequency as the Withdrawal Phase in the
amount equal to your Guaranteed Lifetime Withdrawals until that amount has been paid. If all remaining transferred Account Value has already been paid to you at the time of your death in the form of Guaranteed Lifetime Income Payments, we will make
no further payments.
Co-Annuitants
 (spouses with the Spousal Continuation Option)
If
 the Contract Owner/Co-Annuitant of the Contract dies, the Contract will continue with the surviving Co-Annuitant as the sole Contract Owner and sole Annuitant.
• If
 the Contract Owner/Co-Annuitant of the Contract dies, we will continue to make Guaranteed Lifetime Income Payments to the surviving Contract Owner/Co-Annuitant for the duration of his or her lifetime.
• Upon the surviving Contract
Owner/Co-Annuitant's death, we will calculate the remaining amount of transferred Account Value that has not yet been paid in the form of Guaranteed Lifetime Income Payments. We will make payments to your beneficiary in the same frequency as the
Withdrawal Phase in the amount equal to the Guaranteed Lifetime Withdrawals until that amount has been paid.
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Annuitant's
 Death in Accumulation or Withdrawal Phase
Annuitant's
 Death in Income Phase
Joint
 Contract Owners (spouses)
Sole
 Annuitant (no Spousal Continuation Option)
If
 a Joint Owner
who is the Annuitant
dies, the Contract terminates and we will make no payments under the Contract. We will return that portion of the current quarter's Contract Fee attributable to the time
period between your death and the end of the current calendar quarter.
If
 a Joint Owner who is the Annuitant dies, we will calculate the remaining amount of transferred Account Value that has not yet been paid to you in the form of Guaranteed Lifetime Income Payments. We will make payments to your beneficiary in the same
frequency as the Withdrawal Phase in the amount equal to your Guaranteed Lifetime Withdrawals until that amount has been paid. If all remaining transferred Account Value has already been paid to you at the time of your death in the form of
Guaranteed Lifetime Income Payments, we will make no further payments.
If
 a Joint Owner
who is not the Annuitant
dies, the Contract will continue with the surviving Joint Owner/Annuitant as the sole Contract Owner.
If
 a Joint Owner who is not the Annuitant dies, the Contract will continue with the surviving Joint Owner/Annuitant as the sole Contract Owner receiving Guaranteed Lifetime Income Payments.
Co-Annuitants
 (spouses with the Spousal Continuation Option)
If
 a Joint Owner/Co-Annuitant dies, the Contract will continue with the surviving Joint Owner/Co-Annuitant as the sole Contract Owner and sole Annuitant.
• If
 a Joint Owner/Co-Annuitant dies, we will continue to make Guaranteed Lifetime Income Payments to the surviving Joint Owner/Co-Annuitant for the duration of his or her lifetime.
• Upon the surviving Joint Owner/Co-Annuitant's death,
we will calculate the remaining amount of transferred Account Value that has not yet been paid in the form of Guaranteed Lifetime Income Payments. We will make payments to your beneficiary in the same frequency as the Withdrawal Phase in the amount
equal to the Guaranteed Lifetime Withdrawals until that amount has been paid.
Marriage Termination Provisions
In the event of a divorce, dissolution or annulment whose
decree or other agreement affects a Contract, we will require written notice in a manner acceptable to us.
Marriage termination in the Accumulation or Withdrawal
Phases.
If the marriage terminates during the
Accumulation or Withdrawal Phase and you did not elect the Spousal Continuation Option:
•
If you remain the sole owner
of Your Account, there will be no change to the Contract.
•
If your former spouse
becomes the sole owner of Your Account, the Contract will be issued as a new Contract, with a new Guaranteed Lifetime Withdrawal Base (calculated as of the date the new Contract is issued) with your former spouse as Contract Owner and Annuitant, and
the Contract will terminate upon the death of the Annuitant. Alternately, the former spouse may elect to terminate the Contract.
•
If Your
Account is divided between you and your former spouse, the Contract will be reissued as two Contracts (one to each of the former spouses). The Guarantee will not carry over and a new Guaranteed Lifetime Withdrawal Base will be established based on
the value of each new account as of the date the new Contracts are issued. Each former spouse will be the named Contract Owner and Annuitant of their respective reissued Contract, and each Contract will terminate upon the death of the respective
Annuitant. Alternately, each former spouse may elect to terminate their respective Contract.
If the marriage terminates during the Accumulation or
Withdrawal Phases and you elected the Spousal Continuation Option:
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•
If Your Account is taken
over solely by one of the Joint Owners (the "Receiving Joint Owner"), the Receiving Joint Owner may elect whether to have the Contract reissued with him/her as the sole Contract Owner and Annuitant, or continue the Contract with both former spouses
remaining as Joint Owners and the Receiving Joint Owner as the annuitant. In either situation, the Contract will terminate upon the death of the Annuitant. Alternately, the Receiving Joint Owner may elect to terminate the Contract.
•
If Your
Account is divided between the Joint Owners (the former spouses), the Contract will be reissued as two Contracts (one to each of the former spouses), with the contractual Guarantee divided in proportion to the division of the assets in Your Account
and a new Guaranteed Lifetime Withdrawal Base will be established for each Contract based on the value of each account as of the date the new Contracts are issued. The Joint Owners may remain as Joint Owners on each reissued Contract, with one
former spouse named as Annuitant on each of the Contracts, or each may become the sole Contract Owner and Annuitant on their respective reissued Contract. In either situation, the Contract will terminate upon the death of the Annuitant. Alternately,
each former spouse may elect to terminate their respective Contract.
Marriage termination in the Income Phase.
If, during the Income Phase, the marriage terminates, the
Contract will not be reissued. We will make Guaranteed Lifetime Income Payments to one or more payees as set forth in the relevant decree, order, or judgment.
Contract Owners should consult with their own advisors to
assess the tax consequences associated with these marriage termination provisions.
Suspension and Termination Provisions
Suspension and termination provisions only apply during the
Accumulation and Withdrawal Phases of the Contract.
What
does it mean to have a suspended Contract?
Contract
suspension will not otherwise change or suspend the calculation of the benefits or charges under your Contract.
If you do not cure the suspension of your Contract, we will
terminate your Contract, which will eliminate the Guarantee. You will not receive any benefits of the Guarantee and will not receive any Guaranteed Lifetime Income Payments from us.
What will cause a Contract to be suspended?
There are several events that can cause a Contract to be
suspended. Some of them are within your control; some are not. We reserve the right to suspend the Contract if any of the following events occur:
•
You do not comply with any
provision of this prospectus, including, but not limited to, the requirement that you maintain Your Account at MSSB and invest the assets as required by an Eligible Portfolio or a Former Eligible Portfolio, and the requirement that you execute an
agreement that provides for the deduction and remittance of the Contract Fee;
•
Your Account Value falls
below the Minimum Account Value;
•
MSSB no longer manages any
Eligible Portfolios or Former Eligible Portfolios; or
•
You make
an Additional Deposit to Your Account when Your Account already exceeds $2,000,000 in Total Gross Deposits, or you make an Additional Deposit to Your Account that causes Your Account to exceed $2,000,000 in Total Gross Deposits.
If one of the suspension events occurs, we will provide
you with a suspension notice indicating what exactly is triggering the suspension and when the termination will occur. The purpose of this notice is to give you the opportunity to cure the issue that has triggered the suspension. You will have 45
days to correct the suspension event. If you correct the issue within 45 days in a manner acceptable to us, the termination will not take effect.
What can be done to take the Contract out of suspension?
The notice will indicate that there is a specific suspension
period, during which you will have the ability to preserve the Guarantee associated with your Contract. The notice will contain a description of one or more actions you can take to take the Contract out of suspension and avoid termination.
If you do not or cannot cure the issue causing the suspension
by the end of the suspension period, your Contract will terminate on the date indicated in the notice.
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Specific suspension events and their cures.
Your Account Value falls to the Minimum Account Value before the
Withdrawal Start Date.
If Your Account Value falls below
the Minimum Account Value before your Withdrawal Start Date, your Contract will be suspended. The suspension notification will indicate that you must elect one of three options for the Contract:
1.
Make Additional Deposits to
Your Account to bring Your Account Value above the Minimum Account Value;
2.
Transfer Your Account Value
to the Minimum Account Value Eligible Portfolio. The Minimum Account Value Eligible Portfolio is only available to Contract Owners whose Account Value falls below the Minimum Account Value before the Withdrawal Start Date; or
3.
Terminate
the Contract.
If you choose to
invest in the Minimum Account Value Eligible Portfolio under these circumstances, Your Account Value must remain allocated to the Minimum Account Value Eligible Portfolio until your Withdrawal Start Date, at which time Your Account will transition
to the Income Phase, as discussed in the
Triggering the Income Phase
section.
The Minimum Account Value Eligible Portfolio currently
available with a Contract Fee Percentage of 1.00% is:
Eligible
 Portfolio
Target
 Allocations
U.S.
 Equity
Minimum
Account Value
Eligible Portfolio
U.S.
 Large Cap
Value Equity
U.S.
 Large Cap
Growth Equity
U.S.
 Mid Cap
Value Equity
U.S.
 Mid Cap
Growth Equity
U.S.
 Small Cap
Value Equity
U.S.
 Small Cap
Growth Equity
0%
0%
0%
0%
0%
0%
Composition
International
 Equity
U.S.
 Fixed Income
International
Fixed Income
Cash
Developed
International
Equity
Emerging
Markets Equity
U.S.
 Core Fixed Income
U.S.
 High Yield
Fixed Income
International
Fixed Income
Cash/U.S.
 Short
Duration Bond
100%
 Fixed
0%
0%
40
 - 60%
0
 - 20%
5
 - 25%
20
 - 40%
Investment
 Strategy:
Fixed Income- An all fixed income model for a most conservative investor that seeks conservative risk investments with minimal market volatility. In order to accommodate a lower account value, the
portfolio is only comprised of exchange traded funds (ETFs) which have lower minimum investment requirements.
Investment
 Objective:
The investment objective for this Model has a primary emphasis on capital preservation. This Model is classified to have low volatility. It is most suitable for an investor that is comfortable with
minimal fluctuations in their portfolio, and the possibility of larger declines in value, in order to grow their portfolio over time.
Investment
 Risk:
Fixed income is historically considered less risky than equities. The Minimum Account Value Eligible Portfolio has 100% of the assets in fixed income or cash. Therefore, of all of the Eligible Portfolios, this
portfolio provides the most conservative investment risk.
Benchmark:
70% BC Aggregate Bond (U.S. Fixed Income)/30% 90-Day T-Bills (Cash)
For
 a summary of the asset categories and benchmark indices, please refer to the Eligible Portfolios summary earlier in the prospectus.
If
 you do not notify us of your election by the end of the suspension period, we will assume that you intend to terminate the Contract.
MSSB no longer manages any Eligible Portfolios or Former
Eligible Portfolios.
If MSSB no longer manages any
Eligible Portfolios or Former Eligible Portfolios, and Nationwide no longer partners with MSSB, we reserve the right to suspend the Contract. The only way to cure this suspension (to preserve your Guarantee under the Contract) is to transfer Your
Account Value to a third party account approved by us or to an annuity contract that we, or one of our affiliates, offer.
•
If you decide to transfer to
a third party account approved by us, please keep in mind the following:
❍
The charges for those
products may be higher than the Contract Fee Percentage assessed in connection with your Contract;
❍
You will not be charged any
transfer fees by us other than the termination fees imposed by your custodian consistent with your custodial agreement; and
❍
The value
transferred for the Guarantee will be equal to the Guaranteed Lifetime Withdrawal Base on the Valuation Day of the transfer (a Valuation Day is any day the New York Stock Exchange is open for trading).
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•
If you decide to transfer
Your Account Value to an annuity contract that we, or one of our affiliates, offer, the amount transferred to the new annuity contract will be equal to the value of Your Account on the Valuation Day of the transfer, and the basis for your Guarantee
will be equal to the Guaranteed Lifetime Withdrawal Base on the Valuation Day of the transfer.
•
If you
choose not to transfer Your Account Value, or fail to transfer Your Account Value before the end of the suspension period, the Contract and the Guarantee will terminate.
Additional Deposits that exceed $2,000,000 in Total Gross
Deposits
We must manage the risk that your Guaranteed
Lifetime Payments may become too large for us to guarantee. While we do not manage Your Account, we maintain sole discretion as to how high your Guaranteed Lifetime Withdrawal Base may increase. Therefore, we reserve the right to refuse to accept an
Additional Deposit made into Your Account for your Guaranteed Lifetime Withdrawal Base that brings your Total Gross Deposits above $2,000,000. Our decision to accept your Additional Deposit for your Guaranteed Lifetime Withdrawal Base will be based
on one or more factors, including but not limited to: age, spouse age (if applicable), Annuitant age, state of issue, total Account Value, election of the Spousal Continuation Option, current market conditions, and current hedging costs. All such
decisions will be based on internally established actuarial guidelines and will be applied in a nondiscriminatory manner. Note: If you have more than one MSSB account with this Guarantee, the $2,000,000 limit in Total Gross Deposits applies to the
aggregate account value of Your Accounts.
Since you will
not independently be able to make the determination as to whether an Additional Deposit will be accepted for your Guaranteed Lifetime Withdrawal Base, you and your Financial Advisor should contact the Service Center prior to making any Additional
Deposit that you suspect may exceed $2,000,000 in Total Gross Deposits. We will assist you in determining whether your Additional Deposit will be accepted for your Guaranteed Lifetime Withdrawal Base calculation. This pre-deposit inquiry prevents an
inadvertent suspension of your Contract, because submitting Additional Deposits that exceed the $2,000,000 in Total Gross Deposits limit without Nationwide's prior approval will suspend your Contact, which could lead to Contract termination.
More specifically, the following scenarios apply to the
Contract:
•
Pre-Deposit Inquiry.
If you contact us before you submit an Additional Deposit that you know or suspect will exceed the $2,000,000 in Total Gross Deposits limit, we will perform an analysis and make a determination as to whether we will
accept the Additional Deposit for your Guaranteed Lifetime Withdrawal Base. We will notify you of our determination within a reasonable time.
❍
If we permit the application
of all or a portion of an Additional Deposit to the Guaranteed Lifetime Withdrawal Base calculation, that amount will be reflected in your Guaranteed Lifetime Withdrawal Base at the time you deposit the Additional Deposit to Your Account, provided
such deposit is made within 5 days of our notification of approval and provided that such deposit does not exceed the amount evaluated in the pre-deposit inquiry. If you make such Additional Deposit after the expiration of the permitted time period,
or it is for an amount greater than that submitted in the pre-deposit inquiry, we will treat the Additional Deposit as if no pre-deposit inquiry was made (see "No Pre-Deposit Inquiry" below) and will immediately suspend your Contract.
❍
If we
exercise our right to refuse to accept all or a portion of an Additional Deposit for the Guaranteed Lifetime Withdrawal Base (and you have not made the Additional Deposit), we will not suspend your Contract. If however, you proceed to make the
Additional Deposit after our notification of our refusal to accept the Additional Deposit for your Guaranteed Lifetime Withdrawal Base, we will treat the Additional Deposit as if no pre-deposit inquiry was made (see "No Pre-Deposit Inquiry" below)
and will immediately suspend your Contract.
•
No Pre-Deposit Inquiry.
If you do not contact us before you submit an Additional Deposit that causes Your Account to exceed the $2,000,000 in Total Gross Deposits limit, we will immediately suspend your Contract. We will notify you of the
suspension and the reason for the suspension. Then, we will perform an analysis and make a determination as to whether we will accept the Additional Deposit for your Guaranteed Lifetime Withdrawal Base. We will notify you of our determination within
a reasonable time during the suspension period. Note: In the event of multiple Additional Deposits that cause Total Gross Deposits to exceed $2,000,000, each deposit will have its own suspension period and review determination. Multiple Additional
Deposits will be evaluated in the order they are deposited.
❍
If we permit the application
of all or a portion of an Additional Deposit to the Guaranteed Lifetime Withdrawal Base calculation, that amount will be reflected in your Guaranteed Lifetime Withdrawal Base as of the date you deposited the Additional Deposit to Your Account and we
will immediately remove the Contract's suspension. We will notify you that the suspension has been removed.
❍
If we
exercise our right to refuse to accept all or a portion of an Additional Deposit for the Guaranteed Lifetime Withdrawal Base, your Contract will continue to be suspended (as of the date of the Additional Deposit). We
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will notify you and your
Financial Advisor immediately of the Contract's suspended status and will request that you remove the Additional Deposit(s) from Your Account. The notification will indicate that the Contract will remain suspended until you remove the Additional
Deposit(s) that caused your Total Gross Deposits to exceed $2,000,000 from Your Account, and that
if you do not withdraw the necessary amount from Your Account before the end of the suspension period, the Contract
will terminate and you will not be eligible for any of the benefits associated with the Contract.
During the suspension period, any withdrawal will not constitute an Early Withdrawal or an Excess Withdrawal.
What will cause a Contract to be terminated?
If you fail to cure the cause of a Contract suspension within
45 days, your Contract will terminate. We will provide you with a pre-termination notice indicating what exactly has triggered the termination and when the termination will be effective. The purpose of this pre-termination notice is to give you the
opportunity to either cure the issue that has triggered the termination, or to preserve your Guarantee under the Contract by transferring Your Account Value to a third party account approved by us or to an annuity contract we, or one of our
affiliates, offer. If you cure the issue before the termination date in a manner acceptable to us, the termination will not take effect.
•
If you decide to transfer to
a third party account approved by us, please keep in mind the following:
❍
The charges for those
products may be higher than the Contract Fee Percentage assessed in connection with your Contract;
❍
You will not be charged any
transfer fees by us other than the termination fees imposed by your custodian consistent with your custodial agreement;
❍
The value
transferred for the Guarantee will be equal to the Guaranteed Lifetime Withdrawal Base on the Valuation Day of the transfer.
•
If you decide to transfer
Your Account Value to an annuity contract that we, or one of our affiliates, offer, the amount transferred to the new annuity contract will be equal to the value of Your Account on the Valuation Day of the transfer, and the basis for your Guarantee
will be equal to the Guaranteed Lifetime Withdrawal Base on the Valuation Day of the transfer.
If you do not cure the issue within the termination cure
period, or if you fail to transfer Your Account Value before the end of the termination cure period, the Contract and the Guarantee will terminate. If the Contract does terminate, we will provide you with written notification of the Contract's
termination.
Federal Income Tax Considerations
The following discussion is based on our understanding of
current United States federal income tax laws. It is a general discussion and does not address all possible circumstances that may be relevant to the tax treatment of a particular Contract Owner. This discussion does not address the tax treatment of
transactions involving the investment assets held in Your Account, except to the extent that they may be affected by ownership of the Contract. This discussion does not address matters relating to federal estate and gift tax consequences, or state
and local income, estate, inheritance, or other tax consequences of ownership of a Contract.
This Contract is a new and innovative product. The IRS has not
yet addressed the tax consequences of ownership of, or distributions from, the Contract (or products similar to the Contract) in any formal ruling or other type of guidance that may be used or cited as precedent. It is possible that the IRS could
attempt to apply rules different than the ones described below to the taxation of the distributions from the Contract and/or for transactions taking place within Your Account.
The Contract is in form an annuity contract, and we intend to
treat the Contract as an annuity for federal income tax purposes. The Contract will be paid for by periodic payments to Nationwide in exchange for a promise to make periodic payments upon the occurrence of certain events, which payments will cease
upon death, with the express purpose of providing long-term income security. Consequently, we intend to report taxable income under the Contract to you consistent with the rules applicable to annuity contracts, and the payments will be treated as
being annuity payments made after the annuity starting date. We can give no assurances that the IRS will agree with our interpretation regarding the proper tax treatment of the Contract, or the tax implications to the investments in Your Account
that may arise by reason of the Contract, or that a Court would agree with our interpretation if the IRS were to challenge such tax treatments.
Except as provided in the
Death Provisions
section, we will make no Guaranteed Lifetime Income Payments to your beneficiary. We will not return any fees except for the portion of the current quarter's Fees paid in advance.
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Because this is a new and innovative product, there are no
binding authorities directly addressing the taxation of distributions from the Contract, or how ownership of the Contract may affect the taxation of transactions within Your Account. Any relevant authorities are susceptible to numerous
interpretations, some of which may cause the IRS to disagree with our interpretations. If the IRS were to successfully challenge the tax treatment described herein, it could have a material and adverse effect on the tax consequences of the
acquisition, owning, and disposition of investments in Your Account. In addition, it is possible that, due to changes in your circumstances in future years, the tax consequences under the qualified dividend and straddle rule could change. For
example, losses may be realized when it has become likely that the value of Your Account has been reduced to the greater of $10,000 or your Guaranteed Lifetime Withdrawal Amount. You should consult with your own tax advisors regarding the potential
tax implications of purchasing and/or owning a Contract, based on your individual circumstances.
Tax consequences with respect to Your Account and/or your
Contract may also be adversely affected by future changes in the tax law.
The IRS addressed arrangements that are similar to the
Contract in Private Letter Rulings 200939018, 200949007, 200949036, 201001016, and 201105004. Pursuant to §6110(k)(3) of the Internal Revenue Code, private letter rulings may not be used or cited as precedent, and therefore cannot be relied
upon as authoritative rulings by the IRS. With respect to the arrangements described in those private letter rulings, the IRS concluded that: (a) the annuity contract would be treated as an annuity within the meaning of §72 of the Internal
Revenue Code; (b) the annuity would not create a right of reimbursement for losses realized on account assets for purposes of §165 and therefore would not prevent a current deduction for such losses; (c) the annuity would not be treated as
diminishing the account owner's risk of loss on account assets for purposes of applying the holding period requirements of §1(h)(11); and (d) the annuity contract and the account assets would not, either at the time of the issuance of the
contract or subsequently, be viewed as components of a straddle within the meaning of §1092.
THE FOLLOWING GENERAL DISCUSSION IS BASED ON THE ASSUMPTION
THAT THE CONTRACT WILL BE TREATED AS AN ANNUITY FOR INCOME TAX PURPOSES.
Taxation of Distributions from the Contract.
If and when you begin the Income Phase, any Guaranteed
Lifetime Income Payments made from the Contract are expected to be substantially equal periodic payments, paid no less frequently than annually, and are to be paid while the Annuitant is living (or, if the Spousal Continuation Option is elected,
while either Co-Annuitant is living), and will terminate upon the death of the Annuitant (or, if the Spousal Continuation Option is elected, upon the death of the surviving Co-Annuitant). For federal income tax purposes, Guaranteed Lifetime Income
Payments should be treated as amounts received as an annuity, and should be taxed in accordance with the rules applicable to annuity payments. As amounts received as an annuity, the portion of these payments that is allocable to income should be
taxable to you as ordinary income, and the portion of the payments that is allocable to your after tax payments of premiums for the Contract, or basis, should be treated as the nontaxable return of basis. The amount excludable from each Guaranteed
Lifetime Withdrawal in the Income Phase will be determined by the following calculation:
Excludable
Amount
=
Guaranteed
Lifetime
Withdrawal
X
Contract
 Owner's investment in the Contract
the
 expected total amount of Guaranteed Lifetime Income
Payments over the life of the Contract*
*
The "expected total amount of
the Guaranteed Lifetime Income Payments over the life of the Contract" is equal to the amount of one Guaranteed Lifetime Withdrawal payment multiplied by a factor that is determined by your life expectancy. The life expectancy factor tables appear
in Treasury Regulation 1.72-9.
The
maximum amount excludable from income is the investment in the Contract; once the entire after-tax investment in the Contract is recovered, all Guaranteed Lifetime Income Payments would be fully includable in income. If payments cease by reason of
the death of an Annuitant before the after-tax basis has been fully recovered through Guaranteed Lifetime Income Payments, such unrecovered amounts should be allowable as an income tax deduction in the Contract Owner's last taxable year.
We anticipate that the investment in the Contract will be
equal to all amounts paid to us from Your Account. However, it is possible that the IRS could take the position that a portion or all of such payments are nondeductible expenses that are not includible in your investment in the Contract.
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Taxation of Eligible Portfolios or Former Eligible Portfolios
that are not held by an Individual Retirement Account.
We believe that in both form and substance the Contract is an
annuity for income tax purposes and should be taxed in accordance with the rules applicable to annuities. Similarly, we believe that transactions (such as sales, redemptions, exchanges, distributions, etc.) involving the investments in the Eligible
Portfolios or Former Eligible Portfolios should receive the same income tax treatment as would be accorded them in the absence of the Contract. The taxation of such transactions is outside the scope of this prospectus, and you should consult with
your advisors regarding any matters relating to transactions within Your Account.
The sale of any assets in Your Account in order to pay the
Contract Fee for your Contract will be a taxable event, in the same manner as if the assets were sold for any other purpose. Payments of the Contract Fee for your Contract are not on a tax-free basis and are not deductible.
Although the question is not completely free of doubt, we
believe that the Eligible Portfolios or Former Eligible Portfolios will not be subject to the "straddle" rules by reason of owning the Contract. The IRS defines straddle as offsetting positions in actively traded personal property. Positions are
considered "offsetting" if holding one position substantially diminishes the risk of loss on another position held by a taxpayer. If the straddle rules were to apply to the Eligible Portfolios or Former Eligible Portfolios, the holding period for
determining whether the sale of an asset qualifies for long-term capital gain treatment would be suspended, and recognition of losses from the sale of investments could be deferred. To date, there have been no binding published authorities on this
matter, and the IRS may seek to impose the straddle tax rules to your Eligible Portfolio or Former Eligible Portfolio, which could result in adverse tax consequences (such as the deferral of the income tax deduction for losses incurred in Your
Account) to you.
Additional Medicare Tax.
Effective January 1, 2013, Section 1411 of
the Internal Revenue Code imposes a surtax of 3.8% on certain net investment income received by individuals and certain trusts and estates. The surtax is imposed on the lesser of (a) net investment income or (b) the excess of the modified adjusted
gross income over a threshold amount. For individuals, the threshold amount is $250,000 (married filing jointly, or qualifying widow(er) with dependent child); $125,000 (married filing separately); or $200,000 (single, or head of household (with
qualifying person)). The threshold for an estate or trust that is subject to the surtax is generally equal to the dollar amount at which the highest tax bracket under Internal Revenue Code Section 1(e) begins for the taxable year. For 2014, that
amount is $12,300.
Modified adjusted gross income is
equal to gross income with several modifications. Consult with a qualified tax advisor regarding how to determine modified adjusted gross income for purposes of determining the applicability of the surtax.
Net investment income includes, but is not limited to,
interest, dividends, capital gains, rent and royalty income, and income from nonqualified annuities. It may include taxable distributions from, and gain from the sale or surrenders of, life insurance contracts. Net investment income does not
include, among other things, distributions from certain qualified plans (such as IRAs, Roth IRAs, and plans described in Internal Revenue Code Sections 401(a), 401(k), 403(a), 403(b) or 457(b)); however, such distributions, to the extent that they
are includible in income for federal income tax purposes, are includible in modified adjusted gross income.
The foregoing discussion concerns the surtax's potential
impact to the Contract which we believe is an annuity for income tax purposes and should be taxed in accordance with rules applicable to annuities. This discussion is not intended to address the surtax's impact on the investments in the Eligible
Portfolios or Former Eligible Portfolios. You should consult with your advisors regarding the impact of the tax on the assets in Your Account.
Same-Sex Marriages, Domestic Partnership and Other Similar
Relationships.
In US v. Windsor, the United States
Supreme Court declared Section 3 of the Defense of Marriage Act to be unconstitutional and concluded that same sex marriages, in the states that recognize them, are to be accorded the same federal benefits, rights and obligations as other marriages
recognized by that state.
Revenue Ruling 2013-17
declared that the terms "spouse". "husband and wife", "husband" and "wife" do not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal
relationship recognized under state law that is not denominated as a marriage under the
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laws of that state. Therefore, the favorable income-deferral options afforded
by federal tax law to married spouse under Code Sections 72 and 401(a)(9) are not available to individuals who have entered into a domestic partnership, civil union or other similar formal relationship recognized under state law that is not
denominated as a marriage under the laws of that state.
Section 1035 Exchanges.
Although Section 1035 of the Internal Revenue Code provides
rules that permit the tax-free exchange of annuity contracts under certain conditions, the Contract does not permit any such exchanges, either from or into another annuity, except as stated in the
"Suspension and
Termination Provisions"
and
"Marriage Termination Provisions"
of this prospectus.
Qualified Retirement Plans: Individual Retirement
Accounts.
The Contract is not offered as an Individual
Retirement Annuity described in Section 408(b) of the Internal Revenue Code; however, it may be issued to the trustee or custodian of an IRA described in Section 408(a) of the Internal Revenue Code. The Contract is not issued to employer sponsored
qualified retirement plans described in section 401 of the Internal Revenue Code, or as a tax sheltered annuity described in Section 403(b) of the Internal Revenue Code.
If the Contract is purchased inside an IRA, then the
beneficial owner of the IRA must be an Annuitant under the Contract. Payments from the Contract will be made to the IRA. Income received by an IRA is generally received by it tax free, whereas distributions from the IRA are generally treated as
ordinary income (or, in the case of certain distributions from Roth IRAs, as nontaxable income). For questions regarding tax matters related to your IRA, including matters relating to the taxation of distributions and required minimum distributions,
please refer to the information provided to you by the custodian or trustee of the IRA.
We have made no determination as to whether this Contract
complies with the terms, conditions and requirements of, or applicable law governing, an IRA. It is your responsibility to determine such compliance matters.
We are not responsible for administering any legal or tax
requirements applicable to your IRA, including but not limited to determining the timing and amount of any distributions that may be required, designation of beneficiaries, etc. You or your service provider are responsible for all such
matters.
The value of your Contract may be required to
be considered in determining the amount of the required distributions from your IRA. We will provide a value of the Contract to your custodian or trustee upon request, but will not determine the total required minimum distribution amount that your
IRA will be required to make.
You should consult your
plan description and with your custodian or trustee to determine the income tax consequences with respect to contributions to, ownership of, and distributions from, your IRA.
Income Tax Withholding.
Distributions of income from the Contract are subject to
federal income tax. We will withhold the tax from the distributions unless you request otherwise. However, under some circumstances, the Internal Revenue Code will not permit you to waive withholding. Such circumstances include:
•
if you do not provide us
with a taxpayer identification number; or
•
if we
receive notice from the Internal Revenue Service that the taxpayer identification number furnished by you is incorrect.
If you are prohibited from waiving withholding, as described
above, the distribution will be subject to withholding rates established by Section 3405 of the Internal Revenue Code and is applied against the amount of income that is distributed.
State and Local Tax Considerations.
The tax rules across all states and localities are not uniform
and therefore will not be discussed in this prospectus. Tax rules that may apply to contracts issued in U.S. territories such as Puerto Rico and Guam are also not discussed. Prospective purchasers of the Contract should consult a financial
consultant, tax advisor or legal counsel to discuss any state or local taxation questions.
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Non-Resident Aliens.
Generally, income that is payable to a non-resident alien is
subject to federal income tax at a rate of 30%. We are required to withhold this amount and send it to the Internal Revenue Service. Some distributions to non-resident aliens may be subject to a lower (or no) tax if a treaty applies. In order to
obtain the benefits of such a treaty, the non-resident alien must:
•
Provide us with a properly
completed withholding contract claiming the treaty benefit of a lower tax rate or exemption from tax; and
•
Provide
us with an individual taxpayer identification number.
If the non-resident alien does not meet the above conditions,
we will withhold 30% of income from the distribution.
Exemption from the 30% withholding is also potentially
available for a non-resident alien if the following is provided:
•
sufficient evidence that the
distribution is connected to the non-resident alien's conduct of business in the United States;
•
sufficient evidence that the
distribution is includable in the non-resident alien's gross income for United States federal income tax purposes; and
•
a
properly completed withholding contract claiming the exemption.
Note that for the preceding exemption, the distributions would
be subject to the same withholding rules that are applicable to payments to United States persons.
Payment of Advisory or Service Fees.
Payment of Advisory or Service Fees in excess of 3.00% of Your
Account Value will reduce the Guaranteed Lifetime Withdrawal Base and Guaranteed Lifetime Withdrawals under the Contract.
The Withdrawal Exception differs from your Maximum Contract Fee Percentage because the 3%
Withdrawal Exception is based on Account Value, while your Maximum Contract Fee Percentage is based on your Guaranteed Lifetime Withdrawal Base. If you pay advisory or service fees for a Contract issued to your IRA from other assets in your IRA,
that payment will not be a "distribution" from your IRA under the Internal Revenue Code. If you pay advisory or service fees for a Contract issued to your IRA from other assets held outside your IRA, these fees would generally be treated as an
additional contribution to your IRA, would be subject to all of the restrictions and limitations that any other contribution to an IRA would be subject to and, depending on your individual circumstances, may not be a permissible contribution. Such
payment may also have other tax consequences to you, and you should consult a tax advisor for further information.
Seek Tax Advice.
The above description of federal income tax consequences of
the different types of IRAs which may hold a Contract offered by this prospectus is only a brief summary meant to alert you to the issues and is not intended as tax advice. Anything less than full compliance with the applicable rules, all of which
are subject to change, may have adverse tax consequences. Any person considering the purchase of a Contract in connection with an IRA should first consult a qualified tax advisor with regard to the suitability of a Contract for the IRA.
We can provide no assurances, in the event the Internal
Revenue Service was to challenge the foregoing treatment that a court would agree with the foregoing interpretations of the law. You should consult with your independent tax and legal advisors before purchasing the Contract.
Miscellaneous Provisions
Ownership of the Contract.
If you and any joint Contract Owner are individuals, each
Owner is required to be named as a Contract Owner. If the Owner is a trust or other non-natural person, an individual must be named as Annuitant.
Periodic communications to Contract Owners.
Statements regarding Your Account will be provided to you
periodically by your Financial Advisor, or a designated third party.
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During the Accumulation and Withdrawal Phases, we will send
you and your Financial Advisor an annual statement. You and your Financial Advisor will receive automatic confirmation statements containing information about any change in your Guaranteed Lifetime Withdrawal Base, and you may receive these
confirmation statements more frequently than annually at no additional charge. For more information, please contact the Service Center.
Amendments to the Contract.
Changes in the Contract may need to be approved by the state
insurance departments. The consent of the Contract Owner to an amendment will be obtained to the extent required by law.
Assignment.
You may not assign your interest in the Contract during the
Accumulation or Withdrawal Phase. You may not assign your interest in the Contract during the Income Phase without Nationwide's prior approval.
Misstatements.
If the age of the Annuitant or any Co-Annuitant is misstated,
any Contract benefits will be re-determined using the correct age(s). If any overpayments have been made, future payments will be adjusted. Any underpayments will be paid in full.
Distribution (Marketing) of the Contract
Nationwide Investment Services Corporation ("NISC") acts as
the national distributor of the Contracts sold through this prospectus. NISC is registered as a broker-dealer under the Securities Exchange Act of 1934 ("1934 Act") and is a member of the Financial Industry Regulatory Authority ("FINRA"). NISC's
address is One Nationwide Plaza, Columbus, Ohio 43215. In Michigan only, NISC refers to Nationwide Investment Svcs. Corporation. NISC is a wholly owned subsidiary of Nationwide. We do not pay commissions to NISC or to unaffiliated broker-dealers for
the promotion and sale of the Contracts.
NISC does not
sell Contracts directly to purchasers. Contracts sold through this prospectus can be purchased through registered representatives, appointed by Nationwide, of FINRA broker-dealer member firms. NISC has entered into a selling agreement with MSSB to
sell the Contracts through their registered representatives. Their registered representatives are licensed as insurance agents by applicable state insurance authorities and appointed as agents of Nationwide in order to sell the Contracts. Nationwide
offers these Contracts on a continuous basis; however no broker- dealer is obligated to sell any particular amount of Contracts. For limited periods of time, Nationwide may pay additional compensation to broker-dealers as part of special sales
promotions. Regardless of any amount paid or received by Nationwide, the amount of expenses you pay under the Contract will not vary because of such payments to or from such selling firms. Nationwide will not pass sales expenses through to the
Contract Owner.
Legal Opinion
Legal matters in connection with federal laws and regulations
affecting the issue and sale of the Contracts described in this prospectus and the organization of Nationwide, its authority to issue the Contracts under Ohio law, and the validity of the Contracts under Ohio law have been passed on by Nationwide's
Office of General Counsel.
About Nationwide
Nationwide is a stock life insurance company organized under
Ohio law in March 1929, with its Home Office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide is a provider of life insurance, annuities and retirement products. It is admitted to do business in all states, the District of Columbia and
Puerto Rico.
Nationwide is a member of the Nationwide
group of companies. Nationwide Mutual Insurance Company and Nationwide Mutual Fire Insurance Company (the "Companies") are the ultimate controlling persons of the Nationwide group of companies. The Companies were organized under Ohio law in December
1925 and 1933 respectively. The Companies engage in a general insurance and reinsurance business, except life insurance.
Nationwide is relying on the exemption provided by Rule 12h-7
under the 1934 Act. In reliance on that exemption, Nationwide does not file periodic reports that would be otherwise required under the 1934 Act.
You can request additional information about Nationwide by
contacting the Service Center.
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Contacting the Service Center
All inquiries, paperwork, information requests, service
requests, and transaction requests should be made to the Service Center:
•
by telephone at
1-800-848-6331 (TDD 1-800-238-3035)
•
by mail
to P.O. Box 182021, Columbus, Ohio 43218-2021.
Nationwide may be required to provide information about your
contract to government regulators. If mandated under applicable law, Nationwide may be required to reject a purchase payment and to refuse to process transaction requests for transfers, withdrawals, loans, and/or death benefits until instructed
otherwise by the appropriate regulator.
Nationwide will
use reasonable procedures to confirm that instructions are genuine and will not be liable for following instructions that it reasonably determined to be genuine. Nationwide may record telephone requests. Telephone and computer systems may not always
be available. Any telephone system or computer, whether yours or Nationwide's, can experience outages or slowdowns for a variety of reasons. The outages or slowdowns could prevent or delay processing. Although Nationwide has taken precautions to
support heavy use, it is still possible to incur an outage or delay. To avoid technical difficulties, submit transaction requests by mail.
Experts
The consolidated financial statements and
schedules of Nationwide Life Insurance Company and subsidiaries as of December 31, 2014 and 2013, and for each of the years in the three-year period ended December 31, 2014, have been included herein in reliance upon the report of KPMG LLP,
independent registered public accounting firm, and upon the authority of said firm as experts in accounting and auditing. KPMG LLP is located at 191 West Nationwide Blvd., Columbus, Ohio 43215.
Disclosure of Commission Position on Indemnification
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 (the "1933 Act") may be permitted to directors, officers and controlling persons of Nationwide pursuant to the foregoing provisions, or otherwise, Nationwide has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the 1933 Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being
registered, Nationwide will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as
expressed in the 1933 Act and will be governed by the final adjudication of such issue.
Legal Proceedings
Nationwide Life Insurance Company
Nationwide Financial Services, Inc. (NFS, or collectively with
its subsidiaries, "the Company") was formed in November 1996. NFS is the holding company for Nationwide Life Insurance Company (NLIC), Nationwide Life and Annuity Insurance Company (NLAIC) and other companies that comprise the life insurance and
retirement savings operations of the Nationwide group of companies (Nationwide). This group includes Nationwide Financial Network (NFN), an affiliated distribution network that markets directly to its customer base. NFS is incorporated in Delaware
and maintains its principal executive offices in Columbus, Ohio.
The Company is subject to legal and regulatory proceedings in
the ordinary course of its business. The Company's legal and regulatory matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates. These
matters are subject to many uncertainties, and given their complexity and scope, their outcomes cannot be predicted. Regulatory proceedings could also affect the outcome of one or more of the Company's litigation matters. Furthermore, it is often
not possible to determine the ultimate outcomes of the pending regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to
below, are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the plaintiffs' claims for liability
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or
damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of the cases, the plaintiffs
are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. The Company believes, however, that
based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse effect on the Company's condensed consolidated financial position. Nonetheless, given the large or
indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could materially affect the Company's condensed consolidated financial position or results of operations in a
particular quarter or annual period.
The various businesses conducted by the
Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the Internal Revenue
Service, the Federal Reserve Bank and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates. The financial
services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The
Company will cooperate with Nationwide Mutual Insurance Company (NMIC) insofar as any inquiry, examination or investigation encompasses NMIC's operations.
On August 15, 2001, NFS and NLIC were named in a lawsuit filed
in the United States District Court for the District of Connecticut entitled
Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc.
and Nationwide Life Insurance Company
. On November 18, 2009, the plaintiffs filed a sixth amended complaint amending the list of named plaintiffs and claiming to represent a class of qualified retirement plan trustees under the Employee
Retirement Income Security Act of 1974 (ERISA) that purchased variable annuities from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by
allegedly accepting service payments from certain mutual funds. The complaint seeks damages in an amount equivalent to some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and
injunctive relief, and attorney's fees. On November 6, 2009, the Court granted the plaintiff's motion for class certification. On October 21, 2010, the District Court dismissed NFS from the lawsuit. On February 6, 2012, the Second Circuit Court of
Appeals vacated the November 6, 2009 order granting class certification and remanded the case back to the District Court for further consideration. On September 6, 2013, the District Court granted the plaintiffs' motion for class certification. On
December 11, 2014, the plaintiffs filed a seventh amended complaint adding another sub class of defendants that held trust platform products. On December 11, 2014, plaintiff filed a motion for preliminary approval of settlement. On January 5, 2015,
the Court signed the Order Preliminarily Approving Settlement and Approving Form and Manner of Notice. A Fairness Hearing has been set for March 31, 2015. NFS has made adequate provision for all probable and reasonably estimable losses associated
with this settlement.
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Definitions
Accumulation
 Phase
– The phase of the Contract from the time the Contract is issued until the Withdrawal Phase.
Account
 Value
– The value of the assets in Your Account, as determined as of the close of business on a Valuation Day.
Additional
 Deposit(s)
– Payments applied to Your Account after the Contract is issued.
Annuitant
– The person whose life span is used to measure the Guarantee during the Accumulation, Withdrawal and Income Phases under the Contract.
Annuity
– The supplemental immediate fixed income annuity contract issued to you when you begin the Income Phase of the Contract.
Annuity
 Commencement Date
– The date the Annuity is issued.
Client
 Agreement
– The agreement you sign that authorizes MSSB and the Overlay Manager to provide the specified services to you regarding Your Account.
Co-Annuitant
– If the Contract is jointly owned and you elect the Spousal Continuation Option, you must name a spouse as Co-Annuitant, which is the second person whose life span is used to measure the Guarantee during the
Accumulation, Withdrawal and Income Phases under the Contract.
Contract
– The Guarantee and supplemental immediate fixed income annuity issued by Nationwide, including any endorsements or riders.
Contract
 Anniversary
– The anniversary of the date we issue your Contract.
Contract
 Fee or Fee
– The fee that is assessed quarterly from Your Account during the Accumulation Phase and Withdrawal Phase and remitted to us by MSSB.
Contract
 Fee Percentage
– The percentage that is multiplied by your Guaranteed Lifetime Withdrawal Base to determine your Contract Fee.
Contract
 Owner or you
– The person, entity and/or Joint Owner that maintains all rights under the Contract, including the right to direct who receives Guaranteed Lifetime Income Payments.
Contract
 Year
– The one-year period starting on the date we issue the Contract and each Contract Anniversary thereafter.
Early
 Withdrawal
– Any withdrawal you take from Your Account prior to the Withdrawal Start Date.
Excess
 Withdrawal
– The portion of a withdrawal taken after the Withdrawal Start Date that is in excess of the Guaranteed Lifetime Withdrawal Amount.
General
 Account
– An account that includes Nationwide's assets, which are available to our creditors.
Guarantee
– Our obligation to pay you Guaranteed Lifetime Income Payments for the rest of your life, provided that you comply with the terms of the Contract.
Guaranteed
 Lifetime Income Payments
– Payments you receive during the Income Phase from Nationwide.
Guaranteed
 Lifetime Withdrawals
– Withdrawals you make after the Withdrawal Start Date during the Withdrawal Phase. The amount of each Guaranteed Lifetime Withdrawal will be equal to your most recent Guaranteed Lifetime
Withdrawal Amount.
Guaranteed
 Lifetime Withdrawal Amount
– The amount that you can withdraw from Your Account each calendar year during the Withdrawal Phase without reducing your Guaranteed Lifetime Withdrawal Base. This amount is
non-cumulative, meaning that withdrawals not taken cannot be carried over from one year to the next.
Guaranteed
 Lifetime Withdrawal Base
– The amount multiplied by the Guaranteed Lifetime Withdrawal Percentage to determine the Guaranteed Lifetime Withdrawal Amount. The Guaranteed Lifetime Withdrawal Base may increase
or decrease, as described in this prospectus.
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Guaranteed
 Lifetime Withdrawal Percentage
– The percentage multiplied by the Guaranteed Lifetime Withdrawal Base to determine the Guaranteed Lifetime Withdrawal Amount, and varies based on age and the time of the
withdrawal.
Income
 Phase
– The phase of the Contract during which we are obligated to make Guaranteed Lifetime Income Payments to the Annuitant.
Individual
 Retirement Account or IRA
– An account that qualifies for favorable tax treatment under Section 408(a) of the Internal Revenue Code, but does not include Roth IRAs.
Joint
 Owner
– One of two Contract Owners, each of which owns an undivided interest in the Contract. Joint Owners must be spouses as recognized under applicable federal law.
MSSB
– Morgan Stanley Smith Barney, LLC, its affiliates, or any successors.
Nationwide,
 we or us
– Nationwide Life Insurance Company.
Non-Qualified
 Contract
– A Contract that does not qualify for favorable tax treatment under the Internal Revenue Code as an IRA, Roth IRA, SEP IRA, or Simple IRA.
Roth
 IRA
– An account that qualifies for favorable tax treatment under Section 408A of the Internal Revenue Code.
SEC
 or Commission
– Securities and Exchange Commission.
SEP
 IRA
– An account that qualifies for favorable tax treatment under Section 408(k) of the Internal Revenue Code.
Service
 Center
– The department of Nationwide responsible for receiving all service and transaction requests relating to the contract. For service and transaction requests submitted other than by telephone (including
fax requests), the Service Center is Nationwide's mail and document processing facility. For service and transaction requests communicated by telephone, the Service Center is Nationwide's operations processing facility. Information on how to contact
the Service Center is in the "Contacting the Service Center" provision.
Simple
 IRA
– An account that qualifies for favorable tax treatment under Section 408(p) of the Internal Revenue Code.
Total
 Gross Deposits
– The total of all deposits, including your initial deposit and excluding any withdrawals, made into Your Account.
Valuation
 Date or Day
– Each day the New York Stock Exchange is open for business. The value of Your Account is determined at the end of each Valuation Date, which is generally at 4:00 pm EST, but may be earlier on
certain days when the New York Stock Exchange is closed early.
Withdrawal
 Phase
– The phase of the Contract during which you take Guaranteed Lifetime Withdrawals from Your Account.
Withdrawal
 Start Date
– The date we receive at the Service Center your completed Withdrawal Phase election form indicating your eligibility (and the Co-Annuitant's eligibility, if applicable) and desire to enter the
Withdrawal Phase and begin taking annual withdrawals of the Guaranteed Lifetime Withdrawal Amount from Your Account.
You
– In this prospectus, "you" means the Contract Owner and/or Joint Owners.
Your
 Account
– The Select UMA account you own.
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Appendix A
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
2014 Form S-1 MD&A
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BUSINESS
Overview
Nationwide Life Insurance Company ("NLIC,"
or collectively with its subsidiaries, "the Company") was incorporated in 1929 and is an Ohio domiciled stock life insurance company. The Company is a member of the Nationwide group of companies ("Nationwide"), which is comprised of Nationwide
Mutual Insurance Company ("NMIC") and all of its affiliates and subsidiaries.
All of the outstanding shares of NLIC's common stock are owned
by Nationwide Financial Services, Inc. ("NFS"), a holding company formed by Nationwide Corporation ("Nationwide Corp."), a majority-owned subsidiary of NMIC.
The Company is a leading provider of
long-term savings and retirement products in the United States of America ("U.S."). The Company develops and sells a diverse range of products and services, including individual and group annuities, individual and group life insurance products,
private and public sector group retirement plans, investment products sold to institutions and advisory services.
Wholly-owned subsidiaries of NLIC as of December 31, 2014
include Nationwide Life and Annuity Insurance Company ("NLAIC") and Nationwide Investment Services Corporation ("NISC"). NLAIC primarily offers individual annuity contracts, universal life insurance, variable universal life insurance, term life
insurance and corporate-owned life insurance ("COLI") on a non-participating basis. NISC is a registered broker-dealer.
Business Segments
Management views the Company's business
primarily based on its underlying products and uses this basis to define its four reportable segments: Individual Products & Solutions – Annuity, Retirement Plans, Individual Products & Solutions – Life and Nationwide Business
Solutions Group ("NBSG") and Corporate and Other.
The
primary segment profitability measure that management uses is a non-GAAP financial measure called pre-tax operating earnings (loss), which is calculated by adjusting income before federal income taxes to exclude: (1) net realized investment gains
and losses, except for operating items, such as trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on guaranteed minimum death benefit ("GMDB") contracts; (2) the
adjustment to amortization of deferred policy acquisition costs ("DAC") and other related to net realized investment gains and losses; and (3) net losses attributable to noncontrolling interest. The Company believes this financial measure enhances
the understanding and comparability of its performance by highlighting its results from continuing operations and their underlying project drivers.
Individual Products & Solutions - Annuity
The Individual Products & Solutions -
Annuity segment consists of individual annuity products marketed under the Nationwide DestinationSM and other Nationwide-specific or private label brands. Deferred annuity contracts provide the customer with tax-deferred accumulation of savings and
flexible payout options including lump sum, systematic withdrawal or a stream of payments for life. In addition, deferred variable annuity contracts provide the customer with access to a wide range of investment options and asset protection
features, while deferred fixed annuity contracts generate a return for the customer at a specified interest rate fixed for prescribed periods. Immediate annuities differ from deferred annuities in that the initial premium is exchanged for a stream
of income for a certain period and/or for the owner's lifetime without future access to the original investment. The majority of assets and recent sales for the Individual Products & Solutions - Annuity segment consist of deferred variable
annuities.
The following table summarizes selected
consolidated financial data for the Company's Individual Products & Solutions - Annuity segment for the years ended:
(in
 millions)
December
 31, 2014
December
 31, 2013
December
 31, 2012
Total
revenues
$
2,201
$
1,874
$
1,660
Pre-tax operating
earnings
$
583
$
321
$
220
Account values as of year
end
$69,357
$64,375
$56,786
Retirement Plans
The Retirement Plans segment is comprised of
the private and public sector retirement plans businesses. The private sector business primarily includes Internal Revenue Code ("IRC") Section 401 qualified plans funded through fixed and variable group annuity contracts issued through NLIC. The
public sector business primarily includes IRC Section 457 (b)
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and Section 401(a) governmental plans, both
in the form of full-service arrangements that provide plan administration along with fixed and variable group annuities, as well as administration-only business. Across the public and private sector business Nationwide Investment Advisors managed
account services are also available. The Retirement Plans segment also includes stable value wrap products and solutions.
The following table summarizes selected consolidated financial
data for the Company's Retirement Plans segment for the years ended:
(in
 millions)
December
 31, 2014
December
 31, 2013
December
 31, 2012
Total
revenues
$
857
$
844
$
830
Pre-tax operating
earnings
$
250
$
222
$
195
Account values as of year
end
$34,216
$30,086
$26,644
Individual Products & Solutions – Life and NBSG
The Individual Products & Solutions -
Life and NBSG segment consists of life insurance products, including individual variable universal life, COLI and bank-owned life insurance ("BOLI") products, traditional life insurance products, fixed universal life insurance products and indexed
universal life insurance products. Life insurance products provide a death benefit and, for certain products, allow the customer to build cash value on a tax-advantaged basis.
The following table summarizes selected consolidated financial
data for the Company's Individual Products & Solutions - Life and NBSG segment for the years ended:
(in
 millions)
December
 31, 2014
December
 31, 2013
December
 31, 2012
Total
revenues
$
1,644
$
1,559
$
1,485
Pre-tax operating
earnings
$
299
$
238
$
241
Life insurance policy reserves as of year
end
$
26,202
$
24,863
$
22,395
Life insurance in force as of year
end
$167,173
$154,701
$143,633
Corporate and Other
The Corporate and Other segment includes
non-operating realized gains and losses and related amortization, including mark-to-market adjustments on embedded derivatives, net of economic hedges, related to products with living benefits included in the Individual Products & Solutions -
Annuity segment, other-than-temporary impairment losses, and other revenues and expenses not allocated to other segments. Additionally, this segment includes the funding agreements with the Federal Home Loan Bank of Cincinnati ("FHLB"), as well as
the medium-term note ("MTN") program that concluded in the fourth quarter of 2012.
The following table summarizes selected consolidated financial
data for the Company's Corporate and Other segment for the years ended:
(in
 millions)
December
 31, 2014
December
 31, 2013
December
 31, 2012
Operating
revenues
$
78
$
55
$
54
Pre-tax operating
loss
$
(129)
$
(73)
$(81)
FHLB funding
agreements
$1,762
$913
$
25
Additional information related to the Company's business segments is included
in Note 18 to the audited consolidated financial statements included in the F pages of this report.
Marketing and Distribution
The Company sells its products through a
diverse distribution network. Unaffiliated entities that sell the Company's products to their own customer bases include independent broker-dealers, financial institutions, wirehouse and regional firms, pension plan administrators, producer groups
and life insurance agencies and specialists. Representatives of affiliates who market products directly to a customer base include Nationwide Retirement Solutions, Inc. ("NRS") and Nationwide Financial Network ("NFN") producers, which includes the
independent agent distribution force and the exclusive agent distribution force of the Company's ultimate parent company, NMIC. The Company believes its broad range of competitive products, strong distributor relationships and diverse distribution
network position it to compete effectively in the rapidly growing retirement savings market.
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Unaffiliated Distribution
Independent Broker-Dealers, Regional Firms,
Insurance Agencies and Producer Groups.
The Company sells individual annuities, mutual funds, group retirement plans and life insurance products through independent broker-dealers and agencies (including brokerage
general agencies and producer groups in the Individual Products & Solutions - Life and NBSG segment) and regional firms in each state and the District of Columbia. The Company believes that it has developed strong relationships based on its
diverse product mix, large selection of fund options and administrative technology. In addition to such relationships, the Company believes its financial strength and the Nationwide brand name are competitive advantages in these distribution
channels. The Company regularly seeks to expand this distribution network.
Financial Institutions and Wirehouses.
The Company markets individual annuities (under its brand names and on a private label basis), mutual funds, private sector retirement plans and life insurance products through financial institutions and wirehouses,
consisting primarily of banks and their subsidiaries. The Company believes that it has competitive advantages in this distribution channel, including its expertise in training financial institution personnel to sell annuities, life insurance and
pension products, its breadth of product offerings, its financial strength, the Nationwide brand name, and the ability to offer private label products.
Pension Plan Administrators.
The Company markets group retirement plans organized pursuant to IRC Section 401 and sponsored by employers as part of employee retirement programs through regional pension plan administrators. The Company also has linked pension plan administrators
to the financial planning community to sell group pension products. The Company targets employers with 25 to 2,000 employees because it believes that these plan sponsors tend to require extensive record-keeping services from pension plan
administrators and therefore are more likely to become long-term customers.
Life Insurance Specialists.
The Company markets COLI and BOLI through life insurance specialists, which are firms that specialize in the design, implementation and administration of executive benefit plans.
Affiliated Distribution
NRS
. NRS
markets various products and services to the public sector, primarily on a retail basis, through several sales organizations. NRS markets group variable annuities and fixed annuities as well as administration and record-keeping services to state and
local governments for use in their IRC Section 457 and Section 401(a) retirement programs. NRS maintains endorsement arrangements with state and local government entities, including the National Association of Counties and The International
Association of Fire Fighters.
NFN Producers.
NFN producers include Nationwide exclusive agents and independent agents. All agents appointed with Nationwide may be authorized to distribute Nationwide life insurance, annuity, mutual fund and group annuity products.
Nationwide exclusive agents sell traditional, universal and variable universal life insurance products and individual annuities through the licensed agency distribution force of NMIC and primarily target the holders of personal automobile and
homeowners' insurance policies issued by NMIC and affiliated companies.
Reinsurance
The Company follows the industry practice of
reinsuring with other companies a portion of its life insurance, annuity and health risks in order to reduce net liability on individual risks, to provide protection against large losses, achieve greater diversification of risks and obtain statutory
capital relief. The maximum amount of individual ordinary life insurance retained by the Company on any one life is $10 million. The Company cedes insurance on both an automatic basis, whereby risks are ceded to a reinsurer on specific blocks of
business where the underlying risks meet certain predetermined criteria, and on a facultative basis, whereby the reinsurer's prior approval is required for each risk reinsured.
The Company has entered into reinsurance contracts with
certain unaffiliated reinsurers to cede a portion of its general account life, annuity and health business. Total amounts recoverable under these reinsurance contracts including ceded reserves, paid and unpaid claims and certain other amounts
totaled $704 million and $675 million as of December 31, 2014 and 2013, respectively. Under the terms of the contracts, specified assets are generally placed in trusts as collateral for the recoveries. The trust assets are invested in investment
grade securities, the fair value of which must at all times be greater than or equal to 100% or 102% of the reinsured reserves, as outlined in each of the underlying contracts. Certain portions of the Company's variable annuity guaranteed benefit
risks are also reinsured. These treaties reduce the Company's exposure to death benefit and income benefit guarantee risk in the Individual Products & Solutions - Annuity segment. The Company has no other material reinsurance arrangements with
unaffiliated reinsurers.
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The Company's only material reinsurance agreements with
affiliates are the modified coinsurance agreements pursuant to which NLIC ceded to other members of Nationwide all of its accident and health insurance business not ceded to unaffiliated reinsurers, as described in Note 15 and 17 to the audited
consolidated financial statements included in the F pages of this report.
Ratings
Ratings with respect to claims-paying
ability and financial strength are one factor in establishing the competitive position of insurance companies. These ratings represent each agency's opinion of an insurance company's financial strength, operating performance, strategic position and
ability to meet its obligations to policyholders. Such factors are important to policyholders, agents and intermediaries. They are not evaluations directed toward the protection of investors and are not recommendations to buy, sell or hold
securities. Rating agencies utilize quantitative and qualitative analysis, including the use of key performance indicators, financial and operating ratios and proprietary capital models to establish ratings for the Company and certain subsidiaries.
Ratings are continuously evaluated relative to performance as measured using these metrics and the impact that changes in the underlying business in which it is engaged can have on such measures. In an effort to minimize the adverse impact of this
risk, the Company maintains regular communications with the rating agencies, performs evaluations utilizing its own calculations of these key metrics and considers such evaluation in the way it conducts its business.
Ratings are important to maintaining public confidence in the
Company and the ability to market annuity and life insurance products. Rating agencies continually review the financial performance and condition of insurers, including the Company. Any lowering of the Company's ratings could have an adverse effect
on the Company's ability to market its products and could increase the rate of surrender of the Company's products. Both of these consequences could have an adverse effect on the Company's liquidity and, under certain circumstances, net income. As
of December 31, 2014, NLIC and NLAIC each have financial strength ratings of "A+" (Superior) from A.M. Best Company, Inc. ("A.M. Best"). Their claims-paying ability/financial strength are rated "A1" (Good) by Moody's Investors Service, Inc.
("Moody's") and "A+" (Strong) by Standard & Poor's Rating Services ("S&P"). The Company's financial strength is also reflected in the ratings of its commercial paper, which is rated "AMB-1" by A.M. Best, "P-1" by Moody's and "A-1" by
S&P.
Competition
The Company competes with many other
insurers as well as non-insurance financial services companies, some of whom offer alternative products and, with respect to other insurers, have higher ratings than the Company. While no single company dominates the marketplace, many of the
Company's competitors have greater financial resources and larger market share than the Company. Competition in the Company's lines of business is primarily based on price, product features, commission structure, perceived financial strength,
claims-paying ability, customer and producer service and name recognition.
See also
"Risk Factors
– The Company operates in a highly competitive industry, which can significantly impact operating results."
Regulation
Regulation at State Level
NLIC and NLAIC are each organized and
domiciled in the State of Ohio and each is also licensed in Ohio as a life insurer. The Ohio Department of Insurance ("ODI") regulates NLIC and NLAIC, and each is also regulated by each of the insurance regulators in the other states where each is
authorized to transact insurance business. State insurance authorities have broad administrative powers with respect to various aspects of the insurance business.
From time to time, increased scrutiny has been placed upon the
U.S. insurance regulatory framework, and a number of state legislatures have considered or enacted legislative measures that alter, and in many cases increase, state authority to regulate insurance and reinsurance companies. In addition to
legislative initiatives of this type, the National Association of Insurance Commissioners ("NAIC") and insurance regulators are regularly involved in a process of re-examining existing laws and regulations and their application to insurance and
reinsurance companies. It is not possible to predict the future impact of changing regulation on the operations of the Company. See
"Risk Factors—Risks Related to the Legal and Regulatory Environment of the
Insurance Industry—The Company's insurance entities are subject to extensive regulation."
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National Association of Insurance Commissioners
The NAIC is an organization, the mandate of which is to
benefit state insurance regulatory authorities and consumers by promulgating model insurance laws and regulations for adoption by the States. The NAIC also provides standardized insurance industry accounting and reporting guidance through the
Accounting Manual. However, model insurance laws and regulations are only effective when adopted by the States, and statutory accounting and reporting principles continue to be established by individual state laws, regulations and permitted
practices. Changes to the Accounting Manual or modifications by the various state insurance departments may affect the statutory capital and surplus of NLIC and NLAIC.
Pursuant to its "Solvency Modernization Initiative," the NAIC
reviewed the U.S. financial regulatory system and all aspects of financial regulation affecting insurance companies. Though broad in scope, the Solvency Modernization Initiative focused on: (1) capital requirements; (2) corporate governance and risk
management; (3) group supervision; (4) statutory accounting and financial reporting; and (5) reinsurance. This initiative has resulted in the recent adoption by the NAIC of the ORSA Model Act, which has been enacted by several states and requires
insurance companies to assess the adequacy of their and their group's risk management and current and future solvency position. Under the ORSA Model Act, an insurer must undertake an internal risk management review no less often than annually (but
also at any time when there are significant changes to the risk profile of the insurer or its insurance group), in accordance with the NAIC's ORSA Guidance Manual, and prepare an ORSA Report assessing the adequacy of the insurer's risk management
and capital in light of its current and future business plans. The ORSA Report will be filed with a company's lead regulator and will be available to other domiciliary regulators within the holding company system. Ohio has adopted legislation
substantially similar to the ORSA Model Act, so these changes will apply to NLIC and NLAIC, effective January 1, 2015. The Company believes that NLIC and NLAIC are well prepared to comply with the law.
Insurance Holding Company Regulation
The Company is a wholly-owned subsidiary of NFS, which in turn
is a wholly-owned subsidiary of Nationwide Corporation, a majority-owned subsidiary of NMIC. NMIC is the lead entity of the Nationwide group of companies. As such, NMIC is subject to the insurance holding company acts of each of the states of
domicile of its insurance subsidiaries and affiliates, including NLIC and NLAIC. All states have enacted legislation that requires each insurance holding company and each insurance company in an insurance holding company system to register with the
insurance regulatory authority of the insurance company's state of domicile and to furnish annually financial and other information concerning the operations of companies within the holding company system that materially affect the operations,
management or financial condition of the insurers within such system. Generally, under such laws, transactions within the insurance holding company system to which NLIC and NLAIC are a party must be fair and reasonable and, if material or of a
specified category, require prior notice and approval or non-disapproval by the state of domicile of each insurance entity that is party to the transaction. In addition, under such laws, a state insurance authority usually must approve in advance
the direct or indirect acquisition of 10% or more of the voting securities of an insurance company domiciled in its state.
The NAIC has adopted the Amended Holding Company Model Act,
which introduces the concept of "enterprise risk" within an insurance holding company system and imposes more extensive informational requirements on parents and other affiliates of licensed insurers or reinsurers, with the purpose of protecting the
licensed companies from enterprise risk, including requiring an annual enterprise risk report by the ultimate controlling person identifying the material risks within the insurance holding company system that could pose enterprise risk to the
licensed companies. The Amended Holding Company Model Act must be adopted by the individual states for the new requirements to apply, including, with respect to NMIC and NLIC and NLAIC, by Ohio. Ohio adopted legislation substantially similar to the
Amended Holding Company Model Act on June 5, 2014 and these changes will apply to NLIC and NLAIC beginning in 2015.
Regulation of Dividends and Other Distributions
See Note 14 to the audited consolidated financial statements
in the F pages of this report for a discussion of dividend restrictions.
Annual and Quarterly Reports and Statutory Examinations
Insurance companies are required to file detailed annual and
quarterly statutory financial statements with state insurance regulators in each of the states in which they do business, and their business and accounts are subject to examination by such regulators at any time. In addition, insurance regulators
periodically examine an insurer's financial condition, adherence to statutory accounting practices, and compliance with insurance department rules and regulations. NLIC and NLAIC each file reports with state insurance departments regarding
management's assessment of internal controls over financial reporting in compliance with the Annual Financial Reporting Model Regulation.
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As part of their routine regulatory
oversight process, state insurance departments periodically conduct detailed examinations, generally once every three to five years, of the books, records and accounts of insurance companies domiciled in their states. Such examinations generally are
conducted in coordination with the insurance departments of other domestic states under guidelines promulgated by the NAIC. The ODI's most recently completed financial examination of NLIC and NLAIC concluded in 2013 and was for the five-year period
ended December 31, 2011. The examination was completed during the second quarter of 2013 and did not result in any significant issues or adjustments. The examination reports are available to the public.
Additionally, as a captive reinsurer, Olentangy Reinsurance,
LLC ("Olentangy"), a special purpose financial insurance company domiciled in the State of Vermont, which is a wholly-owned subsidiary of NLAIC, is subject to the requirements and restrictions of its Licensing Order, as issued by the State of
Vermont.
Market Conduct
State insurance regulatory authorities regularly make
inquiries, hold investigations and administer market conduct examinations with respect to insurers' compliance with applicable insurance laws and regulations, including among other things, the form and content of disclosure to consumers,
advertising, sales practices and complaint handling. State regulators have imposed significant fines on various insurers for improper market conduct. NLIC and NLAIC continuously monitor sales, marketing and advertising practices and related
activities of agents and personnel and provide continuing education and training in an effort to ensure compliance with applicable insurance laws and regulations. There can be no guarantee that any non-compliance with such applicable laws and
regulations would not have a material adverse effect on the Company.
Guaranty Associations and Similar Arrangements
Each of the 50 states of the U.S. and the District of Columbia
have laws requiring insurance companies doing business within its jurisdiction to participate in various types of guaranty associations or other similar arrangements. These arrangements provide certain levels of protection to policy owners from
losses arising from insurance policies or annuity contracts issued by insurance companies that become impaired or insolvent. Typically, assessments are levied (up to prescribed limits) on member insurers on a basis which is related to the member
insurer's proportionate share of the business written by all member insurers in the lines of business in which the impaired or insolvent member insurer was writing. Some jurisdictions permit member insurers to recover assessments paid through full
or partial premium tax offsets, usually over a period of years.
Assessments levied against NLIC and NLAIC during the past
three years have not been material. The amount and timing of any future assessment on or refund to NLIC and NLAIC under these laws cannot be reasonably estimated and are beyond the control of NLIC and NLAIC. A portion of the assessments paid by NLIC
and NLAIC pursuant to these laws may be used as credits for a portion of NLIC and NLAIC's premium taxes. For the years ended December 31, 2014, 2013 and 2012, any credits received by the Company were immaterial.
Statutory Surplus
As licensed insurers, NLIC and NLAIC are subject to the
supervision of the regulators of each state which has the discretionary authority, in connection with the ongoing licensing of such entity, to limit or prohibit writing new business within its jurisdiction when, in the state's judgment, such entity
is not maintaining adequate statutory surplus or capital or is operating in a hazardous financial condition. The Company does not currently anticipate that any regulator would limit the amount of new business that NLIC and NLAIC may write due to an
inability to meet the levels of statutory surplus required by the regulators.
Risk-Based Capital
NLIC, NLAIC and Olentangy are subject to the NAIC's risk-based
capital ("RBC") requirements for life insurance companies. The requirements monitor capital adequacy and result in insurers maintaining, for the protection of policyholders, capital in excess of statutory surplus requirements. Insurers having less
statutory surplus than required by the RBC model formula will be subject to varying degrees of regulatory action depending on the level of capital inadequacy. See Note 14 to the audited consolidated financial statements included in the F pages of
this report for additional discussion of RBC requirements.
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Annuity Sales Practices
The Company's annuity sales practices are
subject to strict regulation. State insurance regulators are becoming more active in adopting and enforcing suitability standards that create additional responsibilities and liabilities with respect to sales of annuities, both fixed and variable.
Such regulations and responsibilities could increase the Company's operational costs or compliance costs or burdens, or expose the Company to increased liability for any violation of such regulations and responsibilities.
Regulation of Investments
The Company is subject to state laws and regulations that
require diversification of their investment portfolios and limit the amount of investments in certain investment categories such as below-investment grade fixed income securities, real estate-related equity and common stocks. Failure to comply with
these laws and regulations would cause investments exceeding regulatory limitations to be treated as non-admitted assets for purposes of measuring statutory surplus, and, in some instances, could require divestiture of such non-qualifying
investments. The Company believes that its investments and the investments made by each of its U.S. insurance subsidiaries and affiliates, in each case, are in compliance, in all material respects, with such laws and regulations as of December 31,
2014.
Federal Initiatives
Although the U.S. federal government generally has not
directly regulated the insurance business, federal legislation and administrative policies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ("the Dodd-Frank Act") expands the federal presence in insurance oversight.
For further discussion, see
"Risk Factors—Risks Related to the Legal and Regulatory Environment of the Insurance Industry—The Company's insurance entities are subject to extensive regulation"
and
"Risk Factors—Risks Related to the Legal and Regulatory Environment of the Insurance Industry—The Dodd-Frank Act and certain other potential changes in federal laws and regulations may adversely affect the
Company's business, results of operations and financial condition."
Securities Laws
Certain of NLIC and NLAIC's products,
policies and contracts are subject to regulation under the federal securities laws administered by the Securities Exchange Commission ("SEC") and under certain state securities laws. Certain separate accounts of NLIC and NLAIC are registered as
investment companies under the Investment Company Act of 1940, as amended. Separate account interests under certain variable annuity contracts and variable insurance policies issued by NLIC and NLAIC are also registered under the Securities Act.
NISC, a subsidiary of the Company, is registered as a broker-dealer under the Exchange Act, and is a member of, and subject to regulation by, the Financial Industry Regulatory Authority and is also subject to the SEC's net capital rules.
Nationwide Investment Advisors, a subsidiary of the Company,
is an investment advisor registered under the Investment Advisors Act of 1940, as amended, and the Securities Act.
All aspects of investment advisory activities of NLIC are
subject to applicable federal and state laws and regulations in the jurisdictions in which they conduct business. These laws and regulations primarily are intended to benefit investment advisory clients and investment company shareholders and
generally grant supervisory agencies broad administrative powers, including the power to limit or restrict the transaction of business for failure to comply with such laws and regulations. In such event, the possible sanctions which may be imposed
include the suspension of individual employees, limitations on the activities in which the investment advisor may engage, suspension or revocation of the investment advisor's registration as an advisor, censure and fines.
Privacy Regulation
The Company is subject to federal and state laws and
regulations that require financial institutions and other businesses to ensure the security and confidentiality of nonpublic personal information, including laws that regulate use and disclosure of, among others, social security numbers and health
information. Federal and state laws require notice to affected individuals, law enforcement, regulators and others if there is a breach of the security of certain personal information, including social security numbers and health information.
Federal regulations require financial institutions and creditors to implement effective programs to detect, prevent, and mitigate identity theft. Federal and state laws and regulations regulate the ability of financial institutions to make
telemarketing calls and to send unsolicited commercial e-mail, text or fax messages to consumers and customers. Federal laws and regulations regulate the permissible uses of certain personal information, including consumer report information.
Federal and state legislatures and regulatory bodies may expand regulation regarding these subjects and the privacy and security of personal information.
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ERISA
On December 13, 1993, the U.S. Supreme Court
issued its opinion in John Hancock Mutual Life Insurance Company v. Harris Trust and Savings Bank, holding that certain assets in excess of amounts necessary to satisfy guaranteed obligations held by Hancock in its general account under a
participating group annuity contract are "plan assets" and therefore subject to certain fiduciary obligations under the Employee Retirement Income Security Act of 1974 ("ERISA"). ERISA requires that fiduciaries perform their duties solely in the
interest of ERISA plan participants and beneficiaries, and with the care, skill, prudence and diligence that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and
with like aims. The Court imposed ERISA fiduciary obligations to the extent that the insurer's general account is not reserved to pay benefits under guaranteed benefit policies (i.e., benefits whose value would not fluctuate in accordance with the
insurer's investment experience).
Tax Matters
NLIC files a consolidated federal income tax return with its
subsidiaries and is eligible to join the NMIC consolidated tax return group in 2015.
Life insurance products may be used to provide income tax
deferral and income tax free death benefits. Annuity contracts may be used to provide income tax deferral. The value of these benefits is related to the level of income tax rates and capital gains tax rates. Changes to the income tax rates and the
capital gains tax rates can affect the value of these benefits, and therefore the desirability of those products.
The U.S. Congress periodically has considered possible
legislation that, if enacted, could materially reduce or eliminate many of the tax advantages of purchasing and owning annuity and life insurance products. Recent legislative proposals have included provisions that, if enacted, would (a) disallow a
portion of the income tax interest deduction for many businesses that own life insurance; (b) alter the calculation of a life insurance company's separate account dividends received deductions; (c) impose a "financial crisis responsibility fee" on
certain insurance companies (described below); (d) impose additional information reporting requirements with respect to variable insurance products and resales of certain life insurance contracts; and (e) alter the calculation of the amount of an
insurance's company's policy acquisition expenses that must be capitalized and amortized rather than deducted currently. In addition, Congress is considering proposals to further limit contributions to retirement plans and accelerate the
distributions from such plans after the death of the participant. If these proposals or other changes affecting the taxation of life insurance and/or annuity contracts, or the qualification requirements for retirement plans were to be enacted, the
Company's sale of COLI, BOLI, variable annuities, variable life products and other retirement plan products could be adversely affected.
Additional changes to the Code to address the fiscal challenges currently
faced by the federal government may also be made. These changes could include changes to the taxation of life insurance, annuities, mutual funds, retirement savings plans, and other investment alternatives offered by the Company. Such changes could
have an adverse impact on the desirability of the products offered by the Company.
Legal Proceedings
See Note 16 to the audited consolidated financial statements
included in the F pages of this report for a description of litigation and regulatory actions.
Employees
As of December 31, 2014, the Company had
approximately 3,242 employees, none of which were covered by a collective bargaining agreement.
Risk Factors
Risks Related to Economic and Financial Market
Conditions
Adverse capital and credit market conditions
may significantly affect the Company's ability to meet liquidity needs and access the capital required to operate its business, most significantly its insurance operations.
The Company's insurance, annuity and investment products, as
well as its investment returns and access to and cost of financing, are sensitive to disruptions, uncertainty or volatility in the capital and credit markets, thereby ultimately impacting the Company's profitability and ability to support or grow
its businesses. In the insurance industry, liquidity refers to the ability of an enterprise to generate adequate amounts of cash from its normal operations in order to meet its
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financial commitments. The principal sources of the Company's liquidity are
insurance premiums, annuity considerations, deposit funds and cash, including from its investment portfolio and assets. Sources of liquidity also include a variety of short- and long-term debt instruments, including repurchase agreements,
intercompany borrowings, FHLB programs, commercial paper, lines of credit and long-term debt.
In the event current resources do not satisfy the Company's
needs, the Company may have to seek additional financing. The availability of additional financing will depend on a variety of factors, including capital and credit market conditions, the availability of credit generally and specifically to the
financial services industry, market liquidity, the Company's credit ratings, as well as the possibility that customers or lenders could develop a negative perception of the Company's long- or short-term financial prospects if it incurs large
investment losses or if the level of business activity decreases. Similarly, the Company's access to funds may be impaired if regulatory authorities or rating agencies take negative actions against it. The Company's internal sources of liquidity may
prove to be insufficient, and in such case, it may not be able to successfully obtain additional financing on favorable terms, or at all.
As such, the Company may be forced to issue securities with
terms and conditions that may be unfavorable to it, bear an unattractive cost of capital or sell certain assets, any of which could decrease the Company's profitability and significantly reduce its financial flexibility. The Company's results of
operations, financial condition and cash flows could be materially adversely affected by disruptions in the capital and credit markets.
The Company is exposed to significant financial market risk,
which may adversely affect its results of operations and financial condition, and may cause the Company's net investment income to vary from period to period.
The Company is exposed to significant financial market risk,
including changes in interest rates, credit spreads, equity prices, real estate values, foreign currency exchange rates, domestic and foreign market volatility, the performance of the economy in general, the performance of specific obligors,
included in its portfolio and other factors outside the Company's control.
The Company's exposure to interest rate risk relates primarily
to the market price and cash flow variability associated with changes in interest rates. The Company's investment portfolio contains interest rate sensitive instruments, such as bonds and derivatives, which may be adversely affected by changes in
interest rates from governmental monetary policies, domestic and international economic and political conditions, and other factors beyond its control. U.S. long-term interest rates remain at relatively low levels by historical standards. During
periods of low or declining interest rates, as cash becomes available from premiums on insurance and annuity policies and from the maturity, redemption or sale of existing securities or from other sources, the yield on the new investments purchased
will be lower than that on existing investments, thus lowering the average yield that the Company earns on its investment portfolio. Additionally, during periods of declining interest rates, the economic hedges designed to protect statutory capital
will experience losses. Conversely, inflation may increase and interest rates may suddenly spike, which could have a material affect on the Company's results of operations, insofar as inflation may affect interest rates. Although the Company seeks
to carefully measure and manage its interest rate risk positions, the Company's estimate of the liability cash flow profile may be inaccurate, and it might need to sell assets in order to cover the liability, which could adversely affect the
Company's financial position and results of operations.
The Company's insurance and investment products are also
sensitive to interest rate fluctuations and expose the Company to the risk that falling interest rates or credit spreads will reduce the Company's margin, or the difference between the returns earned on the investments that support the obligations
under these products and the amounts that must be paid to policyholders and contractholders. Because the Company may reduce the interest rates credited on most of these products only at limited, pre-established intervals, and because some contracts
have guaranteed minimum interest crediting rates, declines in interest rates may adversely affect the profitability of these products. There may be economic scenarios, including periods of rising interest rates, which could increase life insurance
policy loan, surrender, and withdrawal activity in a given period. Such situations could result in cash outflows requiring that the Company sell investments at a time when the prices of those investments are adversely affected, which may result in
realized investment losses. Unanticipated withdrawals and terminations may also cause the Company to accelerate the amortization of DAC and other expenses, which reduces net income in the period of the acceleration.
The Company's exposure to credit spreads primarily relates to
market price and cash flow variability associated with changes in credit spreads. A widening of credit spreads would increase unrealized losses in the investment portfolio and, if issuer credit spreads increase as a result of fundamental credit
deterioration, would likely result in higher other-than-temporary impairments. Credit spread tightening will reduce net investment income associated with new purchases of
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fixed securities. In addition, market volatility can make it difficult to
value certain of the Company's securities if trading becomes less frequent. As such, valuations may include assumptions or estimates that may have significant period-to-period changes due to market volatility, which could have a material adverse
effect on the Company's results of operations or financial condition.
The Company invests or may invest a portion of its portfolio
in alternative investments, such as private equity funds, real estate funds, and hedge funds. Quarterly fluctuations in the net investment income of the Company can be affected by changes in the underlying value of the investments. In addition, the
timing and quality of distributions from such funds, which depend on particular events relating to the underlying investments, as well as the funds' schedules for making distributions, can be inherently difficult to predict.
The Company's exposure to equity risk relates primarily to the
potential for lower earnings associated with certain of the Company's insurance businesses, such as variable annuities, and investment advisory business, in each case where fee income is generally earned based upon the fair value of the assets under
management. In addition, certain of the Company's annuity products offer guaranteed benefits, which increase its potential benefit exposure. Statutory reserve and capital requirements for these products are sensitive to market movements, which could
deplete capital. Increased reserve and capital requirements could lead to rating agency downgrades.
The Company is exposed to many different industries, issuers,
and counterparties, and routinely executes transactions with counterparties in the financial services industry, including brokers and dealers, commercial banks, investment banks, hedge funds and other investment funds and institutions. Many of these
transactions expose the Company to credit risk in the event of default of the counterparty. While counterparty risk is generally secured, the Company's credit risk may be exacerbated when the collateral held by the Company cannot be realized upon or
is liquidated at prices not sufficient to recover the full amount of the loan or derivative exposure due to it. The Company may have further exposure to these issuers in the form of holdings in unsecured debt instruments, derivative transactions and
stock investments of these issuers. There can be no guarantee that any such realized losses or impairments to the carrying value of these assets would not materially and adversely affect the Company's business, results of operations, and financial
condition.
For additional information on market risk,
see
Qualitative and Quantitative Disclosures about Market Risk
.
Guarantees within certain of the Company and its insurance
entities' products may adversely affect the Company's financial condition or results of operations.
Certain of the Company's variable annuity
products include guaranteed benefits, including five primary guarantee types: (1) GMDB; (2) guaranteed living withdrawal benefits ("GLWB"); (3) guaranteed minimum accumulation benefits ("GMAB"); (4) guaranteed minimum income benefits ("GMIB") and;
(5) a hybrid guarantee with GMAB and GLWB.
Periods of
significant and sustained downturns in equity markets, increased equity volatility, and/or reduced interest rates could result in an increase in the valuation of the future policy benefit or policyholder account balance liabilities associated with
such products, resulting in a reduction to net income. In addition, significant increases in interest rates can have an adverse impact on the statutory capital of NLIC and NLAIC. NLIC and NLAIC enter into interest rate swap transactions which are
structured to provide an offset against the negative impact of higher interest rates on the Company's capital position. NLIC uses derivative instruments to mitigate the liability exposure and the volatility of net income associated with these
liabilities.
The Company may also choose not to hedge,
in whole or in part, these or other risks that it has identified, due to, for example, the availability and/or cost of a suitable derivative financial instrument or in reaction to extreme credit, equity market, and/or interest rate levels or
volatility.
See Note 2 and Note 7 to the audited
consolidated financial statements in the F pages of this report for additional information regarding the Company's use of derivatives instruments.
NLIC remains ultimately liable for the guaranteed benefits and
are subject to the risk that reinsurers or derivative counterparties are unable or unwilling to pay. In addition, NLIC is subject to the risk that hedging and other risk management procedures prove ineffective, or the estimates and assumptions made
in connection with their use fail to reflect or correspond to the actual liability exposure or that unanticipated policyholder behavior or mortality, combined with adverse market events, produces economic losses beyond the scope of the risk
management techniques employed. NLIC is also subject to the risk that the cost of hedging these guaranteed minimum benefits materially increases as implied volatilities increase and/or interest rates decrease, and as central clearing of derivatives
becomes more prevalent. These risks, individually or collectively, may have a material adverse effect on the Company's financial condition or results of operations.
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For additional information on guaranteed benefits in the
Company's products, see Note 4 to the audited consolidated financial statements included in the F pages of this report.
The impact on distributors, vendors and customers of sustained
or significant deterioration in economic conditions could adversely affect the Company's business.
The Company is exposed to risks associated with the potential
financial instability its customers and distributors, many of whom may be adversely affected by volatile conditions in the financial markets or an economic slowdown. As a result of uncertainties with respect to financial institutions and the global
credit markets, increases in energy costs, and other macroeconomic challenges currently or potentially affecting the economy of the U.S. and other parts of the world, customers and distributors may experience serious cash flow problems and other
financial difficulties. As a result, they may modify, delay, or cancel plans to buy or sell the Company's products, or make changes in the mix of products bought or sold, that are unfavorable to the Company.
In addition, the Company is susceptible to risks associated
with the potential financial instability of the vendors on which the Company relies to provide services or to whom the Company delegates certain functions. The same conditions that may affect the Company's distributors also could adversely affect
the Company's vendors, causing them to significantly and quickly increase their prices or reduce their output. The Company's business depends on its ability to perform, in an efficient and uninterrupted fashion, its necessary business functions, and
any interruption in the services provided by third parties also could adversely affect the Company's cash flow, profitability and financial condition.
Risks Related to Investments
Some of the Company's investments are relatively illiquid.
The Company holds certain investments that may lack liquidity,
such as certain fixed maturity securities (including privately placed bonds and structured securities based upon residential or commercial mortgage loans or trust preferred securities), mortgage loans, policy loans, equity real estate, including
real estate joint ventures, and other limited partnership interests.
If the Company requires significant amounts of cash on short
notice in excess of normal cash requirements or is required to post or return collateral in connection with the investment portfolio, derivatives transactions or securities lending activities, the Company may have difficulty selling these
investments in a timely manner, be forced to sell them for less than the Company otherwise would have been able to realize, or both.
The Company does not have the intent to
sell, nor is it more likely than not that it will be required to sell, debt securities in an unrealized loss position. Investment losses, however, may be realized to the extent liquidity needs require the disposition of debt securities in
unfavorable interest rate, liquidity or credit spread environments.
The Company has exposure to mortgage-backed securities, which
could cause declines in the value of its investment portfolio.
Securities and other capital markets
products connected to residential mortgage lending, particularly those backed by non-agency loans, may become less liquid. The value of the Company's investments in mortgage-backed securities may be negatively impacted by an unfavorable change in or
increased uncertainty regarding delinquency rates, foreclosures, home prices, and refinancing opportunities. In addition, securities backed by commercial mortgages are sensitive to the strength of the related underlying mortgage loans, the U.S.
economy, and the supply and demand for commercial real estate. Deterioration in the performance of the residential and commercial mortgage sector could cause declines in the value of that portion of the Company's investment portfolios.
Defaults on commercial mortgage loans and volatility in
performance may adversely affect the Company's results of operations and financial condition.
Commercial mortgage loans could face
heightened delinquency, refinancing, and default risk under adverse economic conditions. As such, these risks could lead to declining values on certain of such instruments. The performance of the Company's commercial mortgage loan investments may
fluctuate in the future. An increase in the default rate of the Company's commercial mortgage loan investments or a borrower's inability to refinance or pay off its loan at maturity could have an adverse effect on its results of operations and
financial condition. If these loans are not refinanced or paid in full at maturity, the Company's mortgage loan investments could be adversely affected. Any geographic or sector concentration of the Company's commercial mortgage loans may have
adverse effects on its investment portfolio and, consequently, on its results of operations or financial condition. While the Company seeks to mitigate this risk by having a broadly diversified portfolio, events or developments that have a negative
effect on any particular geographic region or sector may have a greater adverse effect on its investment portfolio to the extent that the portfolio is concentrated.
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The determination of the amount of allowances and impairments
taken on the Company's investments are judgmental and could materially impact its results of operations or financial position.
The Company's determination of the amount of allowances and
impairments varies by investment type and is based on its periodic evaluation and assessment of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new
information becomes available. The Company updates its evaluations regularly and reflects changes in allowances and impairments in operations as such evaluations are revised. Market volatility can make it more difficult to value the Company's
securities if trading in such securities becomes less frequent. In addition, a forced sale by holders of large amounts of a security, whether due to insolvency, liquidity, or other issues with respect to such holders, could result in declines in the
price of a security. There can be no guarantee that the Company has accurately assessed the level of impairments taken and allowances reflected in the financial statements. Furthermore, additional impairments may need to be taken or allowances
provided for in the future. Historical trends may not be indicative of future impairments or allowances.
For additional information on the Company's allowance and
impairment review process, see Note 2 to the audited consolidated financial statements included in the F pages of this report.
The Company values investments at both cost and fair value,
which may be significantly different than the values used for purposes of the Company's financial statements.
The Company's investments primarily consist of fixed maturity
securities, short-term investments, mortgage loans, policy loans and alternative investments. On the basis of U.S. generally accepted accounting principles ("GAAP"), the carrying value of such investments is as follows:
•
Fixed maturity securities,
except those considered trading securities, are primarily classified as available-for-sale and are reported at their fair value. Unrealized gains and losses on these securities are recorded as a separate component of other comprehensive income or
loss, net of policyholder related amounts and deferred income taxes.
•
Short-term investments
 include investments with remaining maturities of one year or less at the time of acquisition and are reported at fair value.
•
Mortgage loans are recorded
at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses and allowances.
•
Policy loans are carried at
unpaid principal balances.
•
Alternative
 investments are generally reported based on the equity method of accounting.
Investments not carried at fair value in the
Company's financial statements (principally mortgage loans and alternative investments) may have fair values which are substantially higher or lower than the carrying value reflected in the Company's financial statements. Each such asset class is
regularly evaluated for impairment under the accounting guidance appropriate to the respective asset class.
The Company's valuation of fixed maturity securities may include
methodologies, estimates and assumptions which are subject to differing interpretations and could result in changes to investment valuations that may materially adversely affect the Company's results of operations or financial condition.
Fixed maturity securities and certain other investments are
reported at fair value on the balance sheet. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company
categorizes these securities into a three-level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities
(Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the
fair value measurement of the instrument in its entirety.
The determination of fair values in the
absence of quoted market prices is based on valuation methodologies, values of securities the Company deems to be comparable and assumptions deemed appropriate given the circumstances. The use of different methodologies and assumptions may have a
material effect on the estimated fair value amounts. Further, rapidly changing and unprecedented credit and equity market conditions could materially impact the valuation of securities as reported within the Company's consolidated financial
statements and the period-to-period changes in value could vary significantly. Decreases in value may have a material adverse effect on the Company's results of operations or financial condition.
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For additional information on the Company's fair value
categories and valuation methodologies, see Note 2 to the audited consolidated financial statements included in the F pages of this report.
Risks Related to the Legal and Regulatory
Environment of the Insurance Industry
Certain changes in
accounting and/or financial reporting standards issued by the Financial Accounting Standards Board, the Securities and Exchange Commission, the National Association of Insurance Commissioners, state insurance departments or other standard-setting
bodies could have a material adverse impact on the Company's financial condition or results of operations.
The Company is subject to the application of GAAP, which is
periodically revised and/or expanded. As such, the Company is required to adopt new or revised accounting and/or financial reporting standards issued by recognized accounting standard setters or regulators, including the Financial Accounting
Standards Board ("FASB") and the SEC. It is possible that future requirements could change the Company's current application of GAAP, resulting in a material adverse impact on the Company's financial condition or results of operations.
In addition, the Company's insurance entities are required to
comply with the Statutory Accounting Principles ("SAP") established by the NAIC and adopted and administered by state departments of insurance. The various components of SAP (such as actuarial reserve methodologies) are currently subject to review
by the NAIC and its task forces and committees, as well as state insurance departments, in an effort to address emerging issues and otherwise improve or alter financial reporting. The NAIC is working to reform state regulation in various areas,
including comprehensive reforms relating to life insurance reserves and the accounting for such reserves. The Company cannot predict whether or in what form reforms will be enacted and, if so, whether the enacted reforms will positively or
negatively affect the Company's insurance entities. Calculations made in accordance with SAP govern the ability of the Company's insurance entities to pay dividends to their respective parent companies.
The NAIC Accounting Practices and Procedures Manual (the
"Accounting Manual") provides that state insurance departments may permit insurance companies domiciled therein to depart from SAP through prescribed practices or by granting them permitted practices. Olentangy was granted a permitted practice from
the State of Vermont that increased NLAIC's valuation of this subsidiary by $66 million as of December 31, 2014 and 2013, which also allowed NLIC to admit additional deferred tax assets of $10 million as of December 31, 2014 and 2013. However, the
Company cannot predict what permitted and prescribed practices any applicable state insurance department may allow or mandate in the future, nor can the Company predict whether or when the insurance departments of states of domicile of the Company's
competitors may permit them to utilize advantageous accounting practices that depart from SAP. Moreover, although states generally defer to interpretations of the insurance department of the state of domicile with respect to the application of
regulations and guidelines, neither the action of the domiciliary state nor the action of the NAIC is binding on a non-domiciliary state. Accordingly, a state could choose to follow a different interpretation. The Company can give no guarantees that
future changes to SAP or components of SAP or the granting of permitted practices to the Company's competitors will not have a materially negative impact on the Company's financial condition or results of operations.
The Company's insurance entities are subject to extensive
regulation.
The Company's insurance entities are subject
to extensive state regulatory oversight in the jurisdictions in which each does business as well as to federal oversight in some aspects of their business. Insurance companies are regulated by the insurance departments of the states in which they
are domiciled or licensed. State insurance authorities have broad administrative powers with respect to various aspects of the insurance business. The Company could be adversely affected by, among other things, changes in state law relating to
marketing, privacy, acquisitions, payment of dividends, reinsurance, the form and content of insurance policies (including pricing), licensing, regulation of premium rates, premium tax increases, rating and underwriting restrictions and limitations,
asset and reserve valuation requirements, enterprise risk management, surplus requirements, limitations on investments, accounting standards, and RBC requirements. Also, applicable state insurance laws, rather than federal bankruptcy laws, apply to
the liquidation or restructuring of insurance companies. The primary purpose of such regulatory supervision is to protect policyholders, rather than the Company. Changes in regulations, or in the interpretation or application of existing laws or
regulations, may adversely impact pricing, capital requirements, reserve adequacy, or exposure to litigation and could increase the costs of regulatory compliance. The Company cannot predict the effect that any proposed or future legislation or
change in the interpretation or application of existing laws or regulations may have on its financial condition or results of operations.
From time to time, increased scrutiny has been placed upon the
U.S. insurance regulatory framework, and a number of state legislatures have considered or enacted legislative measures that alter, and in many cases increase, state authority to regulate insurance and reinsurance companies. In addition to
legislative initiatives of this type, the NAIC and insurance
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regulators are regularly involved in a process of re-examining existing laws
and regulations and their application to insurance and reinsurance companies and may impose changes in the future that put further regulatory burdens on insurers and, thus, could have an adverse effect on NLIC and NLAIC's results of operations and
financial condition. Changes are often implemented in order to benefit policyholders to the detriment of insurers.
At the federal level, the Company could be affected by laws
and regulations that may affect certain aspects of the insurance industry. While the federal government in most contexts currently does not directly regulate the insurance business, federal legislation and administrative policies in a number of
areas, including limitations on antitrust immunity, minimum solvency requirements, systemic risk regulation, grant of resolution authority to a federal agency, uniform market conduct standards, credit for reinsurance initiatives, other proposals at
the federal level to replace or streamline state regulatory processes, employee benefits regulation, age, sex and disability-based discrimination, financial services regulation, and federal taxation, can significantly affect the insurance
business.
This state regulatory oversight and various
proposals at the federal level could in the future adversely affect the Company's ability to sustain adequate returns in certain lines of business. It is not possible to predict the future impact of changing regulation on the Company's financial
condition or results of operations.
The Dodd-Frank Act and
certain other potential changes in federal laws and regulations may adversely affect the Company's business, results of operations and financial condition.
In July 2010, Congress passed, and the President signed, the
Dodd-Frank Act. Policy and rulemaking conducted after the enactment of the Dodd-Frank Act has and will continue to significantly change financial regulation. The Company cannot predict the full impact this financial reform legislation will have on
its business, results of operations or financial condition. The full impact of the Dodd-Frank Act on the Company will not be determined until the numerous regulations required by the act are finalized. However, the Company has been or anticipates
that its business and operations will be affected in at least the following ways:
•
Title I of the Dodd-Frank
Act. Title I of the Dodd-Frank Act established the Financial Stability Oversight Council ("FSOC") which has authority to designate non-bank financial companies as systemically important financial institutions ("non-bank SIFIs") thereby subjecting
them to enhanced prudential standards and supervision by the Board of Governors of the Federal Reserve System ("Federal Reserve"). The prudential standards for non-bank SIFIs include enhanced RBC requirements, leverage limits, liquidity
requirements, single counterparty exposure limits, governance requirements for risk management, stress test requirements, special debt-to-equity limits for certain companies, early remediation procedures and recovery and resolution planning. If FSOC
were to determine that NMIC is a non-bank SIFI, NMIC would become subject to certain of these enhanced prudential standards, which could adversely affect the Company. The Federal Reserve also indicated that it may apply certain of these enhanced
prudential standards to savings and loan holding companies ("SLHCs"), like NMIC and NFS, as the safety and soundness regulator for these institutions. It remains unclear the extent to which any of these enhanced prudential standards will be extended
to SLHCs.
❍
As a financial company with
total consolidated assets greater than $10 billion, NMIC is subject to stress testing requirements developed by the Federal Reserve to determine whether, on a consolidated basis, NMIC has the capital necessary to absorb losses as a result of adverse
economic conditions. NMIC will be required to conduct company-run annual stress tests to be provided to the Federal Reserve. The Company cannot predict the manner in which the stress tests will ultimately be designed, conducted and disclosed with
respect to NMIC or whether the results of such stress tests will cause an alteration to the Company's business practices or affect the perceptions of regulators, rating agencies, customers, counterparties or investors.
❍
FSOC may
recommend that state insurance regulators or other regulators apply new or heightened safeguards for activities or practices in which the Company or other financial services companies engage in that FSOC determines could create or increase the risk
that significant liquidity, credit or other problems might spread among financial companies.
•
Title II of the Dodd-Frank
Act. Title II of the Dodd-Frank Act provides that a financial company may be subject to a special orderly liquidation process outside the federal bankruptcy code, administered by the Federal Deposit Insurance Corporation ("FDIC") as receiver, upon a
determination that the company is in default or danger of default and presents a threat to the financial stability of the U.S. The Company cannot predict how its creditors will evaluate this potential or whether it will impact financing or hedging
costs.
•
Title III
of the Dodd-Frank Act. Title III of the Dodd-Frank Act transferred to the Federal Reserve the supervisory and regulatory authority of the Office of Thrift Supervision over SLHCs. As a registered SLHC, NMIC and NFS are now subject to the rulemaking
authority of the Federal Reserve and the supervision and examination authority of the Federal Reserve under HOLA. The Federal Reserve uses a consolidated supervisory framework to supervise SLHCs with over $50 billion in total consolidated assets.
This framework consists of on-site inspections and
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continuous monitoring
activities related to capital and liquidity planning and positions, corporate governance, recovery planning, management of core business lines, and support of banking offices. The Federal Reserve has also extended to SLHCs certain of its Regulation
Y reporting obligations, which were previously only required of bank holding companies. Under Section 171 of the Dodd-Frank Act, the Federal Reserve is also required to establish consolidated RBC and leverage capital requirements for SLHCs. The
Federal Reserve issued final regulations in July 2013, but temporarily exempted from these final regulations SLHCs that are substantially engaged in insurance underwriting activities until the Federal Reserve can develop an appropriate framework for
such companies. The Company cannot predict the manner in which these consolidated capital requirements will be extended to SLHCs that are substantially engaged in insurance underwriting activities, and whether such requirements will cause an
alteration to its business practices or affect the perceptions of regulators, rating agencies, customers, counterparties or investors.
•
Title V of the Dodd-Frank
Act. Title V of the Dodd-Frank Act established the Federal Insurance Office ("FIO") within the U.S. Department of the Treasury ("Treasury"), which has the authority, on behalf of the U.S., to participate in the negotiations of international
insurance agreements with foreign regulators, as well as to collect information about the insurance industry and recommend prudential standards. While not having a general supervisory or regulatory authority over the business of insurance, the
director of the FIO will perform various functions with respect to insurance (other than health insurance), including serving as a non-voting member of FSOC and making recommendations to FSOC regarding insurers to be designated for more stringent
regulation. On December 12, 2013, the FIO issued a report to Congress setting forth recommendations on modernization of the system of insurance regulation in the U.S. The report raised the possibility of a greater role for the federal government if
states do not achieve greater uniformity in their laws and regulations. On September 24, 2014, the FIO released its second Annual Report on the Insurance Industry in which it updated several of the issues discussed in the 2013 modernization report.
The Company cannot predict whether any such legislation or regulatory changes will be adopted, or what impact they will have on the Company's business, financial condition or results of operations.
•
Title VI of the Dodd-Frank
Act. Title VI of the Dodd-Frank Act introduced Section 619, which amended the Bank Holding Company Act of 1956 ("BHCA") (together, with applicable regulations, the "Volcker Rule"). The Volcker Rule, among other things, generally prohibits
proprietary trading and sponsorship of, and investment in, covered funds, including, but not limited to, hedge funds and private equity funds, for institutions affiliated with depository institutions, subject to certain exceptions. As a result of
their status as regulated insurance companies engaging in otherwise permitted activities, NLIC and NLAIC's investment activities from its general and separate accounts are permissible under the Volcker Rule, but the future value and liquidity of
such investments may be impacted by market conditions.
•
Title VII
of the Dodd-Frank Act.
❍
Title VII of the Dodd-Frank
Act creates a new framework for regulation of the over-the-counter ("OTC") derivatives markets which could impact NLIC and NLAIC's derivative activities. Under this new regulatory regime, the Commodity Futures Trading Commission ("CFTC") regulates
"swaps," the SEC regulates "security-based swaps" and both commissions jointly regulate "mixed swaps" (collectively referred to herein as "swaps").
❍
The Dodd-Frank Act generally
requires swaps, subject to a determination by the CFTC or the SEC as to which swaps are covered, entered into by all counterparties except certain non-financial end users to be cleared through a regulated clearinghouse. In addition, certain swaps
subject to the mandatory clearing requirement may be required to be executed through regulated exchanges or execution facilities. The CFTC has made a determination that certain categories of swaps, including certain types of interest rate swaps and
credit default swaps, are required to be cleared and it is anticipated that other categories of swaps will become subject to this requirement in the future. The CFTC has also made a determination that a subset of these swaps must be executed on a
registered swap execution facility or derivatives contract market; additional categories of swaps will become subject to this requirement in the future. In April 2013, the CFTC adopted a rule to exempt swaps between certain affiliated entities
within a corporate group from the mandatory clearing requirement. This exemption may be available for swaps entered into among the Company and its affiliates, subject to certain conditions, including compliance with documentation and reporting
requirements.
❍
Swap dealers and major swap
participants ("MSPs") are required to be registered and are subject to significant regulatory requirements, including requirements relating to capital and margin (i.e., collateral), business conduct and reporting. NLIC and NLAIC should not be
considered swap dealers or MSPs and therefore will not be directly subject to the requirements applicable to these categories of registered entities; however, many of NLIC and NLAIC's counterparties will be swap dealers and as such will be subject
to these requirements. These requirements have increased and will continue to increase OTC derivatives dealers' costs, and these increased costs may be passed on to NLIC and NLAIC.
❍
The SEC
and CFTC have issued regulations defining "swaps" and are required by the Dodd-Frank Act to determine whether "stable value contracts" ("SVCs") fall within the definition of a "swap," and, if so, whether it would be appropriate to exempt SVCs from
such definition. In addition, various other products offered by NLIC
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and NLAIC insurance
subsidiaries might be treated as swaps, although the Company believes such treatment is unlikely. If these products are regulated as swaps, NLIC and NLAIC cannot predict how the rules would be applied to such products or the effect on their
profitability or attractiveness to its clients.
❍
Finally,
the new regulatory scheme imposed on all market participants may increase the costs of hedging generally and, because banking institutions will be required to conduct at least a portion of their OTC derivatives businesses outside their depository
institutions, may affect the credit risk these counterparties pose to NLIC and NLAIC and the degree to which it is able to enter into transactions with such counterparties. NLIC and NLAIC cannot predict the effect of the foregoing on its hedging
costs, its hedging strategy or implementation thereof or whether it will need or choose to increase and/or change the composition of the risks it does not hedge.
•
Title X of the Dodd-Frank
Act. The Dodd-Frank Act established the Consumer Financial Protection Bureau ("CFPB") as an independent agency within the Federal Reserve to supervise and regulate institutions that provide certain financial products and services to consumers.
Although consumer financial products and services generally exclude the business of insurance, the CFPB does have authority to regulate non-insurance consumer products and services.
The Dodd-Frank Act potentially affects such a wide range of
the activities and markets in which the Company engages and participates that it is not possible to anticipate all of the ways in which it could affect the Company. For example, many of the Company's methods for managing risk and exposures are based
upon the use of observed historical market behavior or statistics based on historical models. Historical market behavior may be altered by the enactment of the Dodd-Frank Act. As a result of this enactment and otherwise, these methods may not
accurately predict future exposures, which could be significantly greater than the Company's measures indicate. Potential future federal legislation, regulation, administrative policies and court decisions can also significantly and adversely affect
certain areas of the Company's life insurance and annuity business. In addition to the laws and regulations discussed above, these areas include pension and employee welfare benefit plan regulation, additional financial services regulation and
taxation.
Increased scrutiny of the insurance regulatory
framework in the U.S. may alter, and in many cases increase, state authority to regulate insurance holding companies and insurance companies.
Recently, there has been increased scrutiny of the insurance
regulatory framework in the U.S. and some state legislatures have considered or enacted laws that alter, and in many cases increase, state authority to regulate insurance companies and their holding company systems. In December 2010, the NAIC
adopted a revised version of the Model Insurance Holding Company System Regulatory Act (the "Amended Holding Company Model Act"). The Amended Holding Company Model Act introduces the concept of "enterprise risk" within an insurance holding company
system and imposes more extensive informational requirements on parents and other affiliates of licensed insurers, with the purpose of protecting the licensed companies from enterprise risk, including requiring an annual enterprise risk report by
the ultimate controlling person identifying the material risks within the insurance holding company system that could pose enterprise risk to the licensed companies. In September 2012, the NAIC adopted the Risk Management and Own Risk and Solvency
Assessment Model Act (the "ORSA Model Act"), which requires insurers to maintain a framework for identifying, assessing, monitoring, managing and reporting on the "material and relevant risks" associated with the insurer's (or insurance group's)
current business plans. Under the ORSA Model Act, an insurer must undertake an internal risk management review no less often than annually (but also at any time when there are significant changes to the risk profile of the insurer or its insurance
group) in accordance with the NAIC's ORSA Guidance Manual and prepare a summary report ("ORSA Report") assessing the adequacy of the insurer's risk management and capital in light of its current and future business plans. The ORSA Report will be
filed with a company's lead regulator and will be available to other domiciliary regulators within the holding company system.
Both the Amended Holding Company Model Act and the ORSA Model
Act must be adopted by the individual states for the new requirements to apply to U.S. domestic insurers. Ohio has adopted legislation substantially similar to the ORSA Model Act and the Amended Holding Company Model Act, effective January 1, 2015
and September 4, 2014, respectively. While the Company believes that NLIC and NLAIC, are well prepared to comply with the ORSA Model Act and the Amended Holding Company Model Act as adopted by Ohio, the Company cannot guarantee that the impact of
any NAIC recommendations or proposed or future legislation or rulemaking in the U.S. or elsewhere would not have an adverse effect on the Company's results of operations or financial condition.
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The Company could be adversely affected if its controls designed
to ensure compliance with guidelines, policies and legal and regulatory standards are not effective.
The Company's business is highly dependent on the ability to
engage on a daily basis in a large number of insurance underwriting, claims processing and investment activities, many of which are highly complex. These activities often are subject to internal guidelines and policies, as well as legal and
regulatory standards. A control system, no matter how well designed and operated, can provide only reasonable guarantee that the control system's objectives will be met. Ineffective controls could lead to financial loss, unanticipated risk exposure
(including underwriting, credit and investment risk) or damage to the Company's reputation.
Litigation or regulatory actions could have a material adverse
impact on the Company.
Current and future litigation or
regulatory matters may negatively affect the Company by resulting in the payment of substantial awards or settlements, increasing legal and compliance costs, requiring the Company to change certain aspects of its business operations, diverting
management attention from other business issues, harming the Company's reputation with customers or making it more difficult to retain current customers and to recruit and retain employees or agents. See
"Description
of Business—Legal Proceedings"
and Note 16 to the audited consolidated financial statements included in the F pages of this report for a description of litigation and regulatory actions.
The amount of statutory capital that the Company and its
insurance subsidiaries have and the amount of statutory capital they must hold can vary significantly from time to time and is sensitive to a number of factors outside of the Company's control, including equity market and credit market conditions
and the regulatory environment and rules.
The Company
conducts the vast majority of its business through its licensed insurance entities. Insurance regulators and the NAIC prescribe accounting standards and statutory capital and reserve requirements for the Company and its U.S. insurance entities. The
NAIC has established regulations that provide minimum capitalization requirements based on RBC formulas for life companies. The RBC formula for life companies establishes capital requirements relating to insurance, business, asset and interest rate
risk, including equity, interest rate, operational and management and expense recovery risks associated with life and annuity products that contain death benefits or certain living benefits.
In any particular year, statutory surplus amounts and RBC
ratios may increase or decrease depending on a variety of factors, including the amount of statutory income or losses generated by the Company's insurance entities (which itself is sensitive to equity market and credit market conditions), the amount
of additional capital they must hold to support their business growth, changes in equity market levels, changes in reserve requirements, credit market volatility, changes in consumer behavior, the value of certain fixed maturity securities in their
investment portfolios, the value of certain derivative instruments that do not get hedge accounting treatment, changes in interest rates and foreign currency exchange rates, as well as changes to the NAIC RBC formulas. Nationally Recognized
Statistical Rating Organizations ("NRSROs") may also implement changes to their internal models, which differ from the NAIC RBC model, that have the effect of increasing or decreasing the amount of statutory capital that NLIC and NLAIC must hold in
order to maintain their current ratings. Increases in the amount of required statutory reserves reduce the statutory surplus used in calculating the Company's insurance entities' RBC ratios.
The Company's insurance entities' statutory surplus and RBC
ratios have a significant influence on their financial strength ratings, which, in turn, are important to their ability to compete effectively. To the extent that any of the Company's insurance entities' statutory capital resources are deemed to be
insufficient to maintain a particular rating by one or more rating agencies, capital may need to be raised. If we are unable to raise additional capital in such a scenario, any ratings downgrade that followed could have a material adverse effect on
the business, financial condition, results of operations and liquidity. See Note 14 to the audited consolidated financial statements included in the F pages of this report for a further discussion of RBC.
Changes in tax laws could adversely affect the Company.
Changes in tax laws that could adversely affect the Company
include those that reduce or eliminate the tax-deferred accumulation of earnings on the premiums paid by the holders of annuities and life insurance products, that otherwise affect how the benefits provided by life insurance and annuity contracts
are taxed, or that modify the federal estate tax. A federal income surtax of 3.8% effective January 1, 2013, is imposed on certain net investment income (including income from distributions from nonqualified annuity contracts) for individuals with a
modified adjusted gross income in excess of a threshold amount (e.g., $250,000 for married persons who file jointly).
See
"Description of
Business—Regulation—Tax Matters"
for a general description of the changes in tax laws and how they could adversely impact the Company.
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Changes to regulations under ERISA could adversely affect the
Company, including its distribution model, by expanding the circumstances under which the Company and its affiliated broker-dealers could be considered ERISA fiduciaries.
The prohibited transaction rules of ERISA and the Code
generally restrict the provision of investment advice to ERISA plans and participants and Individual Retirement Account ("IRAs") owners if the investment recommendation results in additional fees being paid to the individual advisor, his or her firm
or their affiliates that vary according to the investment decision made. In October 2011, the Department of Labor ("DOL") issued final regulations which provide limited relief from these investment advice fiduciary restrictions. As a result of these
regulations, the ability of the Company's affiliated broker-dealers and their registered representatives to provide information to ERISA plans and participants, and with respect to IRAs, is restricted. Also, the fee and revenue arrangements of
certain advisory programs may be required to be revenue neutral, resulting in potential lost revenues for these broker-dealers and their affiliates.
Changes in regulations under ERISA that could adversely affect
the Company include those that impact the sales of group annuities, the availability of, or rules concerning the establishment and operation of, Code Section 401, 403(b) and 457 plans or IRAs and/or individual retirement annuities, and the manner in
which ERISA plans and IRAs may be marketed.
Other
proposed investment advice regulatory initiatives under ERISA may negatively impact the current business model of the Company's broker-dealers. In particular, the DOL issued a proposed regulation in October 2010 that would, if adopted as proposed,
significantly broaden the circumstances under which a person or entity providing investment information with respect to ERISA plans or IRAs would be deemed a fiduciary under ERISA or the Code. If adopted, the proposed regulations may make it easier
for the DOL in enforcement actions, and for plaintiffs' attorneys in ERISA litigation, to attempt to extend fiduciary status to advisors who would not be deemed fiduciaries under current regulations. In May 2014, the DOL announced it will re-propose
these fiduciary definition regulations; however, the re-proposal has been delayed and is expected in early 2015.
In addition, the DOL has issued a number of regulations
recently that increase the level of disclosure that must be provided to plan sponsors and participants. The participant disclosure requirements were issued in final form in October 2010 and became effective in 2012, and the regulations which require
service providers to disclose fee and other information to plan sponsors took effect in 2012. These ERISA disclosure requirements will likely increase the Company's regulatory and compliance burden, resulting in increased costs.
The Company's risk management policies, practices and procedures
could leave it exposed to unidentified or unanticipated risks, which could negatively affect its business or result in losses.
The Company has developed risk management policies and
procedures, including hedge programs at NLIC and NLAIC that utilize derivative financial instruments, and expect to do so in the future. Nonetheless, the Company's policies and procedures to identify, monitor, and manage both internal and external
risks may not effectively mitigate these risks or predict future exposures, which could be different or significantly greater than expected. These identified risks may not be the only risks facing the Company. Additional risks and uncertainties not
currently known to the Company, or that it currently deems to be immaterial, may adversely affect its business, financial condition or results.
Changes in state insurance regulations regarding suitability of
annuity product sales may affect the Company's operations and profitability.
The Company's annuity sales practices are subject to strict
regulation. State insurance regulators are becoming more active in adopting and enforcing suitability standards with respect to sales of annuities, both fixed and variable. Any material change to the standards governing the Company's sales
practices, including applicable state laws and regulations, could affect the Company's business and profitability. See
"Description of Business—Regulation—Annuity Sales Practices."
The Company may be unable to mitigate the impact of Regulation
XXX and Actuarial Guideline 38, potentially resulting in a negative impact to its capital position and/or a reduction in sales of term and universal life insurance products.
The NAIC Model Regulation entitled "Valuation of Life
Insurance Policies," commonly known as "Regulation XXX," establishes statutory reserve requirements for term life insurance policies and universal life insurance policies with secondary guarantees. Actuarial Guideline 38 ("AG38") clarifies the
application of Regulation XXX with respect to certain universal life insurance products with secondary guarantees. The NAIC, through its various committees, task forces, and working groups has been studying the use of captives and special purpose
vehicles to transfer insurance risk-related products subject to Regulation XXX and AG38 and has been evaluating the adequacy of existing NAIC model laws and
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regulations applicable to captives. Recently, the NAIC directed its various
committees, task forces, and working groups to develop draft regulatory changes based upon recommendations of its retained consultant for further consideration by the NAIC. There remains uncertainty as to what extent the NAIC and the state
regulators will require changes to future captive reinsurance structures, and what impact these changes will have, if any, on existing captive transactions.
The Company has implemented, and plans to continue to
implement, reinsurance and capital management transactions to mitigate the capital impact of XXX and AG38 on a statutory basis. These arrangements are subject to review by state insurance regulators and rating agencies. If the Company is unable to
mitigate the impact of Regulation XXX and AG38, this may have a negative impact on its financial condition and results of operations.
Risks Related to the Business and Operations of the
Company
The Company is rated by S&P, Moody's, and A.M.
Best and a decline in ratings could adversely affect the Company's operations.
Financial strength and claims-paying ability ratings, which
various NRSROs publish as indicators of an insurance company's ability to meet contractholder and policyholder obligations, are important to maintaining public confidence, an ability to market products and competitive position. Such factors are
important to policyholders, agents and intermediaries; however they are not evaluations directed towards the protection of investors and are not recommendations to buy, sell or hold securities. Downgrades in NLIC and NLAIC's financial strength
ratings could have an adverse effect on their financial condition and certain of their results of operations in many ways, including reducing new sales and renewals of insurance products, annuities, and other investment products, adversely affecting
their relationships with their sales force and independent sales intermediaries, materially increasing the number or amount of policy surrenders and withdrawals by contractholders and policyholders, requiring a reduction in prices to remain
competitive, and adversely affecting their ability to obtain reinsurance at reasonable prices or at all.
Additionally, various NRSROs also publish credit ratings for
NFS and several of its subsidiaries. Credit ratings are indicators of a debt issuer's ability to meet the terms of debt obligations in a timely manner and are important factors in the Company's overall funding profile and ability to access certain
types of liquidity. Downgrades in the credit ratings for the Company could have an adverse effect on their financial condition and results of operations in many ways, including adversely limiting access to capital markets, potentially increasing the
cost of debt, and requiring the posting of collateral.
Ratings are subject to ongoing review by A.M. Best, Moody's,
and S&P, and the maintenance of such ratings cannot be assured. If any rating is reduced from its current level, the Company's financial position and results of operations could be adversely affected. The Company cannot predict what actions
rating agencies may take, or what actions it may take in response to the actions of rating agencies, which could adversely affect its business. As with other companies in the financial services industry, the Company's ratings could be downgraded at
any time and without any notices by any NRSRO.
See
"Description
of Business—Ratings"
for further information on current financial strength, claims-paying ability and credit ratings.
If the Company's business does not perform well or if actual
experience versus estimates used in valuing and amortizing DAC varies significantly, the Company may be required to accelerate the amortization of DAC, which could adversely affect the Company's results of operations or financial condition.
NLIC and NLAIC incur significant costs in
connection with acquiring new and renewal business. The costs that are directly related to the successful acquisition of new and renewal business are deferred and referred to as DAC. The recovery of DAC is dependent upon the future profitability of
the related business. The amount of future profit or margin primarily is dependent on investment returns in excess of the amounts credited to policyholders, mortality, morbidity, persistency, interest crediting rates, dividends paid to
policyholders, expenses to administer the business, creditworthiness of reinsurance counterparties, and certain economic variables. Of these factors, the Company anticipates that investment returns are most likely to impact the rate of amortization
of such costs. The aforementioned factors enter into management's estimates of gross profits, which generally are used to amortize such costs. If the estimates of gross profits were overstated, then the amortization of such costs would be
accelerated in the period the actual experience is known or when estimates are reevaluated and would result in a charge to income. Significant or sustained equity market declines could result in an acceleration of amortization of DAC related to
variable annuity and variable universal life contracts, resulting in a charge to operations. Additionally, the amortization of DAC can be affected by the change in the valuation of the Company's variable annuity guarantees. Such adjustments could
have a material adverse effect on the Company's results of operations or financial condition.
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Additional information related to the Company's review of DAC
and variable annuity guarantee assumptions is included in Note 2 to the audited consolidated financial statements included in the F pages of this report.
Deviations from assumptions regarding future persistency,
mortality, morbidity, and interest rates used in calculating reserve amounts could have a material adverse impact on the Company's results of operations or financial condition.
The process of calculating reserve amounts for a life
insurance organization involves the use of a number of assumptions, including those related to persistency (how long a contract stays with a company), mortality, morbidity and interest rates (the rates expected to be paid or received on financial
instruments, including insurance or investment contracts). Actual results could differ significantly from those assumed. As such, significant deviations from one or more of these assumptions could result in a material adverse impact on the Company's
results of operations or financial condition.
Medical
advances, such as genetic research and diagnostic imaging, and related legislation could adversely affect the financial performance of life insurance, long-term care insurance and annuity businesses.
Genetic research includes procedures focused on identifying
key genes that render an individual predisposed to specific diseases, such as particular types of cancer and other diseases. Other medical advances, such as diagnostic imaging technologies, may also be used to detect the early onset of diseases such
as cancer, Alzheimer's and cardiovascular disease. If individuals learn through medical advances that they are predisposed to particular conditions that may reduce life longevity or require long-term care, they will be more likely to purchase life
and long-term care insurance policies or not to permit existing policies to lapse. In contrast, if individuals learn that they lack the genetic predisposition to develop the conditions that reduce longevity or require long-term care, they will be
less likely to purchase life and long-term care insurance products but more likely to purchase certain annuity products. In addition, such individuals that are existing policyholders will be more likely to permit their policies to lapse.
If the Company were to gain access to the same genetic or
medical information as the Company's prospective policyholders and contractholders, then the Company would be able to take this information into account in pricing life and long-term care insurance policies and annuity contracts. However, there have
been a number of legislative and regulatory actions and proposals that make, or could make, genetic and other medical information confidential and unavailable to insurance companies, or prohibit use of genetic and other medical information for
underwriting purposes. Pursuant to these legislative and regulatory actions and proposals, prospective policyholders and contractholders would only disclose this information if they chose to do so voluntarily. These factors could lead the Company to
reduce sales of products affected by these legislative and regulatory actions and proposals and could result in a deterioration of the risk profile of the Company's portfolio, which could lead to payments to policyholders and contractholders that
are higher than anticipated.
Medical advances could also
lead to new forms of preventive care. Preventive care could extend the life and improve the overall health of individuals. If this were to occur, the duration of payments made under certain annuity products likely would increase, thereby reducing
profitability on those products.
A large scale pandemic or
epidemic, natural and man-made catastrophes, climate change, the continued threat, or acts of, terrorism or ongoing military and other actions may result in decreases in the Company's net income, revenue, and assets under management and may
adversely impact its investment portfolio.
A large scale
pandemic or epidemic, natural and man-made catastrophes, climate change, the continued threat, or acts of, terrorism within the U.S. and abroad, ongoing military and other actions, and heightened security measures in response to these types of
threats may cause significant volatility and declines in the U.S., European, and other securities markets, loss of life, property damage, additional disruptions to commerce and reduced economic activity. As a result, the Company's net income and/or
revenue, and some of the assets in the Company's investment portfolio, may be adversely affected by declines in the securities markets and economic activity caused by a large scale pandemic or epidemic, natural and man-made catastrophes, climate
change, the continued threat, or acts of, terrorism, ongoing military, and other actions, and heightened security measures.
The Company cannot predict whether or the extent to which
industry sectors in which it maintains investments may suffer losses as a result of potential decreased commercial and economic activity, how any such decrease might impact the ability of companies within the affected industry sectors to pay
interest or principal on their securities, or how the value of any underlying collateral might be affected.
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The Company operates in a highly competitive industry, which can
significantly impact operating results.
The Company's ability to compete is based on
a number of factors including scale, service, product features, price, investment performance, commission structure, distribution capacity, financial strength ratings and name recognition. The Company competes with a large number of financial
services companies such as banks, mutual funds, broker-dealers, insurers and asset managers, many of which have advantages over the Company in one or more of the above competitive factors. The Company's revenues and profitability could be impacted
negatively due to such competition.
See
"Description of Business—Competition"
for a further description of competitive factors affecting the Company.
The Company's products and services are complex and are
frequently sold through intermediaries, and a failure of such intermediaries to properly perform services or their misrepresentation of the Company's products or services could have an adverse effect on the Company's business, results of operations
and financial condition.
Many of the Company's products
and services are complex and are frequently sold through intermediaries. In particular, the Company is reliant on intermediaries in its unaffiliated distribution channels to describe and explain its products to potential customers. The intentional
or unintentional misrepresentation of the Company's products and services in advertising materials or other external communications, or inappropriate activities by the Company's personnel or an intermediary, could adversely affect the Company's
reputation and business prospects, as well as lead to potential regulatory actions or litigation.
The Company's business success depends, in part, on effective
information technology systems and on continuing to develop and implement improvements in technology.
The Company depends in large part on technology systems for
conducting business and processing claims, as well as for providing the data and analytics it utilizes to manage its business, and thus the Company's business success is dependent on maintaining the effectiveness of existing technology systems and
on continuing to develop and enhance technology systems that support its business processes and strategic initiatives in a cost and resource efficient manner. Some system development projects are long-term in nature, may negatively impact the
Company's expense ratios as it invests in the projects and may cost more than the Company expects to complete. In addition, system development projects may not deliver the benefits the Company expects once they are complete, or may be replaced or
become obsolete more quickly than expected, which could result in accelerated recognition of expenses. If the Company does not effectively and efficiently manage and upgrade its technology portfolio, including with respect to the technology
portfolio of its recently acquired businesses, or if the costs of doing so are higher than it expects, the Company's ability to provide competitive services to new and existing customers in a cost effective manner and its ability to implement its
strategic initiatives could be adversely impacted.
The
Company faces a risk of non-availability and increased cost of reinsurance.
Market conditions beyond the Company's control determine the
availability and cost of the reinsurance protection it purchases. The Company can offer no guarantees that reinsurance will remain continuously available to it to the same extent and on the same terms and rates as are currently available. If the
Company is unable to maintain its current level of reinsurance or purchase new reinsurance protection in amounts that it considers sufficient and at prices that it considers acceptable, the Company would either have to be willing to accept an
increase in its net exposures or reduce its insurance writings. A significant reinsurer's insolvency or inability to make payments under the terms of a reinsurance treaty could subject the Company to credit risk with respect to its ability to
recover amounts due from reinsurers. Because of the risks set forth above, the Company may not be able to collect all amounts due to it from reinsurers, and reinsurance coverage may not be available to it in the future at commercially reasonable
rates or at all.
A breach of information security or other
unauthorized data access could have an adverse impact on the Company's business and reputation.
In the ordinary course of business, the Company collects,
processes, transmits, and stores large quantities of personally identifiable information, customer financial and health information, and proprietary business information (collectively referred to herein as "Sensitive Information"). The secure
processing, storage, maintenance, and transmission of this Sensitive Information are vital to the Company's operations and business strategy. Although the Company undertakes substantial efforts to reasonably protect Sensitive Information, including
internal processes and technological defenses that are preventative or detective, and other commercially reasonable controls designed to provide multiple layers of security, Sensitive Information maintained by the Company may be vulnerable to
attacks by computer hackers, to physical theft by other third party criminals, or to other compromise due to employee error or malfeasance. Attacks may include both sophisticated cyber attacks perpetrated by organized crime groups, "hactivists," or
state-sponsored groups, as well
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as
non-technical attacks ranging from sophisticated social engineering to simple extortion or threats, which can lead to access, disclosure, disruption or further attacks. Such events may expose the Company to civil and criminal liability, regulatory
action, harm its reputation among customers, deter people from purchasing the Company's products, cause system interruptions, require significant technical, legal and other remediation expenses, and otherwise have an adverse impact on its business.
Third parties to whom the Company outsources certain functions are also subject to the risks outlined above, and if such a third party suffers a breach of information security involving the Company's Sensitive Information, such breach may result in
the Company incurring substantial costs and other negative consequences, including a material adverse effect on its business, financial condition, results of operations and liquidity. The Company offers no guarantees that it will be able to
implement information security measures to prevent all breaches of information security.
Losses due to system failures or physical locations being
unavailable to conduct business could have an adverse impact on the Company's business and reputation.
Network, utility, telecommunications,
business systems, hardware, and/or software failures due to a computer virus or cyber-attack, such as a distributed denial of service attack, could prevent the Company from conducting its business for a sustained period of time. The Company's
facilities could be inaccessible due to a disaster, natural or man-made catastrophe, blackout, terrorist attack, or war. Even if the Company's employees are able to report to work, they may be unable to perform their duties for an extended period of
time if the Company's data or systems are disabled or destroyed. The Company could be adversely impacted by any disruption of its ability to conduct business.
Employee error and misconduct may be difficult to detect and
prevent and could adversely affect the Company.
Losses
may result from, among other things, fraud, errors, failure to document transactions properly, failure to obtain proper internal authorization or failure to comply with regulatory requirements. It is not always possible to deter or prevent employee
misconduct and the precautions the Company takes to prevent and detect this activity may not be effective in all cases.
The Company's businesses may be adversely affected if it is
unable to hire and retain qualified employees.
There is
significant competition from within the financial services and life insurance industries and from businesses outside those industries for qualified employees, especially those in key positions and those possessing highly specialized underwriting
knowledge. The Company's performance is largely dependent on the talents, efforts and proper conduct of highly-skilled individuals, including the Company's senior executives. For many of the Company's senior positions, it competes for talent not
just with insurance or financial service companies, but with other large companies and other businesses. The Company's continued ability to compete effectively in its businesses and to expand into new business areas depends on its ability to attract
new employees and to retain and motivate its existing employees. If the Company is not able to successfully attract, retain, and motivate its employees, its business, financial results, and reputation could be materially and adversely
affected.
The Company may be subject to intellectual
property risk.
The Company relies on copyright,
trademark, patent, and trade secret laws, as well as various contractual rights and obligations, to protect its intellectual property. Although the Company uses a broad range of measures to protect its intellectual property rights, third parties may
infringe or misappropriate its intellectual property. The Company may resort to litigation in order to enforce its intellectual property rights. Such litigation would represent a diversion of resources that may be significant in amount, and the
final outcome of any litigation cannot be predicted with certainty. The Company's inability to successfully secure or enforce the protection of the Company's intellectual property assets, despite the Company's best efforts, could have a material
adverse effect on its business and ability to compete.
The Company also may be subject to costly
litigation in the event that another party alleges that its operations or activities infringe upon that party's intellectual property rights. The Company may be subject to claims by third parties for alleged infringement of third party patents,
copyrights, trademarks, trade secrets, or breach of any license. If the Company were found to have infringed any third party intellectual property rights, it could incur substantial liability, and in limited circumstances could be enjoined from
providing certain products or services to its customers. Alternatively, the Company could be required to enter into costly licensing arrangements with third parties to resolve any alleged intellectual property infringement claims brought by third
parties.
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Acquisitions and integration of acquired businesses may result
in operating difficulties and other unintended consequences.
From time to time the Company may investigate and pursue
acquisition opportunities if it believes that such opportunities are consistent with its long-term objectives and that the potential rewards of an acquisition justify the risks.
The process of integrating an acquired company or business can
be complex and costly, however, and may create unforeseen operating difficulties and expenditures. Acquired businesses may not perform as projected, any cost savings and other synergies anticipated from the acquisition may not materialize and costs
associated with the integration may be greater than anticipated. Acquired businesses may not be successfully integrated, resulting in substantial costs or delays and adversely affecting the Company's ability to compete. Accordingly, the Company's
results of operations might be materially and adversely affected.
Consolidation of distributors of insurance products may
adversely affect the insurance industry and the profitability of the Company's business.
The Company distributes many of its individual products
through other financial institutions such as banks and broker−dealers. An increase in bank and broker−dealer consolidation activity could increase competition for access to distributors, result in greater distribution expenses and impair
the Company's ability to expand its customer base. Consolidation of distributors and/or other industry changes may also increase the likelihood that distributors will try to renegotiate the terms of any existing selling agreements to terms less
favorable to the Company.
PROPERTIES
Pursuant to an arrangement between NMIC and
certain of its subsidiaries, during 2014 the Company occupied on average approximately 541,114 square feet of office space in the four building home office complex and in other offices in central Ohio. The Company believes that its present and
planned facilities are adequate for the anticipated needs of the Company.
LEGAL PROCEEDINGS
See Note 16 to the audited consolidated financial statements
included in the F pages of this report for a discussion of legal proceedings.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
There is no established public trading
market for NLIC's shares of common stock. All 3,814,779 issued and outstanding shares of NLIC's common stock are owned by NFS. NLIC did not repurchase any shares of its common stock or sell any unregistered shares of its common stock during
2014.
NLIC did not pay any dividends or return capital
to NFS during 2014 or 2013. NLIC paid a cash dividend of $40 million to NFS during 2012.
NLIC currently does not have a formal dividend policy.
See
Business – Regulation – Regulation of Dividends and Other Payments and Risk-Based Capital Requirements
for information regarding dividend restrictions.
SELECTED CONSOLIDATED FINANCIAL DATA
Five-Year Summary
Year
 ended or as of December 31,
(in
 millions)
2014
2013
2012
2011
(As Adjusted)
2010
(As Adjusted)
Statements
 of Operations Data:
Total
revenues
$
3,729
$
5,117
$
4,456
$
2,208
$
3,254
Net income
(loss)
$
16
$
1,028
$
600
$
(422)
$
159
Net income (loss) attributable to
NLIC
$
110
$
1,110
$
661
$
(366)
$
219
Balance
 Sheets Data:
Total
assets
$143,524
$133,445
$120,170
$111,986
$106,550
Long-term
debt
$
709
$
707
$
1,038
$
991
$
978
Shareholder's
equity
$
7,396
$
6,824
$
6,384
$
5,197
$
5,234
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In October 2010, the FASB issued ASU
2010-26, which amends FASB ASC 944, Financial Services – Insurance. The amended guidance modifies the definition of the types of costs incurred by insurance entities that can be capitalized in the acquisition of new and renewal insurance and
investments contracts. The Company adopted this guidance retrospectively, effective January 1, 2012.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
FINANCIAL DISCLOSURE
Forward-Looking
Information
The information included herein contains
certain forward-looking statements with respect to the results of operations, businesses and financial condition of the Company made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Whenever used in
this report, words such as "anticipate," "estimate," "expect," "intend," "plan," "believe," "project," "target," "will," "shall," "could," "may" and other words of similar meaning are intended to identify such forward-looking statements. These
forward-looking statements are based on current expectations and involve a number of risks and uncertainties that are difficult to predict. Factors that may cause actual results to differ materially from those expressed or implied in such
forward-looking statements include, among others, the following possibilities:
(i)
Fluctuations in the results
of operations or financial condition;
(ii)
difficult economic and
business conditions, including financial, capital and credit market conditions as a result of changes in interest rates, equity prices, volatility, yields and liquidity in the equity and credit markets as well as geopolitical conditions and the
impact of political, regulatory, judicial, economic or financial events, including terrorism, epidemics or pandemics, impacting financial markets generally and companies in the Company's investment portfolio specifically;
(iii)
changes in certain
accounting and/or financial reporting standards issued by the FASB, SEC or other standard-setting bodies;
(iv)
the ability to maintain the
availability of systems and facilities in the event of a disaster, natural or man-made catastrophe, blackout, terrorist attack or war;
(v)
heightened competition that
affects the cost of, and demand for, the Company's products, including specifically the intensification of price competition, the entry of new competitors, consolidation and the development of new products by competitors;
(vi)
adverse state and federal
legislation and regulation, including, among other things, tax law changes impacting the federal estate tax and tax treatment of life insurance and investment products; limitations on premium levels; increases in minimum capital and reserves and
other financial viability requirements; restrictions on mutual fund administrative service payment arrangements or mutual fund distribution payment arrangements, such as revenue sharing and 12b-1 payments; changes affecting sales practices,
including investigations and/or claims handling and escheat investigations regulatory actions of the DOL under ERISA, rule-making adopted by regulatory authorities under the "Dodd-Frank Act and the FDIA;
(vii)
failure to maintain or
expand distribution channels;
(viii)
changes in interest rates
and the equity markets causing a reduction in the market value of the Company's investment portfolio, investment income and/or asset fees; an acceleration of the amortization of DAC and other expenses; a reduction in separate account assets or a
reduction in the demand for the Company's products; increased liabilities related to living benefits and death benefit guarantees; or an impact on ultimate realizability of deferred tax assets;
(ix)
outlook changes and
downgrades in the financial strength and claims-paying ability ratings of the Company assigned by NRSROs;
(x)
deviations from
 assumptions regarding future persistency, mortality and morbidity rates (including as a result of natural and man-made catastrophes, pandemics, epidemics, malicious acts, terrorist acts and climate change), and interest rates used in calculating
reserve amounts and in pricing products;
(xi)
adverse results and/or
resolution of litigation, arbitration, regulatory investigation and/or inquiry;
(xii)
the availability, pricing
and effectiveness of reinsurance;
(xiii)
the effectiveness of
policies and procedures for managing risk;
(xiv)
adverse
consequences, including financial and reputational costs, regulatory problems and potential loss of customers resulting from data or other security breaches, a failure to meet privacy regulations, or the inability to protect the Company's or
customers' confidential information;
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(xv)
the inability to protect
intellectual property and defend against claims of infringement;
(xvi)
realized losses with respect
to impairments of assets in the investment portfolio of the Company;
(xvii)
exposure to losses related
to variable annuity guarantee benefits, including from downturns and volatility in equity markets; and
(xviii)
defaults
on commercial mortgages and volatility in their performance.
The Company undertakes no commitment to revise or update any
forward-looking statements as a result of new information, future events or development, except as required by law. For a more complete description of the various risks, uncertainties, and other factors that could affect future results, see
Risk Factors
.
Overview
The following discussion provides an
assessment of the financial position and results of operations of the Company for the three years ended December 31, 2014. This discussion and analysis is based on and should be read in conjunction with the audited consolidated financial statements
and related notes beginning on page F-1 of this report.
See
Business –
Overview
for a description of the Company and its ownership structure.
See
Business – Business
Segments
for a description of the components of each segment and a description of management's primary profitability measure.
Revenues and Expenses
The Company earns revenues and generates
cash primarily from policy charges, life insurance premiums and net investment income. Policy charges include asset fees, which are earned primarily from separate account values generated from the sale of individual and group variable annuities and
life insurance products, cost of insurance charges earned on all life insurance products except traditional, which are assessed on the amount of insurance in force in excess of the related policyholder account value, administrative fees, which
include fees charged per contract on a variety of the Company's products and premium loads on universal life insurance products, and surrender fees, which are charged as a percentage of premiums/deposits withdrawn during a specified period for
annuity and certain life insurance contracts. Net investment income includes earnings on investments supporting fixed annuities, the MTN program, FHLB funding agreements and certain life insurance products, and earnings on invested assets not
allocated to product segments, all net of related investment expenses. Other income primarily includes asset fees, administrative fees, commissions and other income earned for providing administrative, marketing and distribution services.
Management makes decisions concerning the sale of invested
assets based on a variety of market, business, tax and other factors. All realized gains and losses generated by these sales, and changes in the valuation allowance not related to specific mortgage loans are reported in net realized investment gains
and losses. Also included in net realized investment gains and losses are changes in the fair values of derivatives qualifying as fair value hedges and the related changes in the fair values of hedged items, the ineffective, or excluded, portion of
cash flow hedges, changes in the fair values of derivatives that do not qualify for hedge accounting treatment, change in fair value of living benefit embedded derivatives, and periodic net amounts paid or received on interest rate swaps that do not
qualify for hedge accounting treatment. All charges related to other-than-temporary impairments of available-for-sale securities, specific mortgage loans and other investments are reported in net realized investment gains and losses.
The Company's primary expenses include interest credited to
policyholder accounts, life insurance and annuity benefits, amortization of DAC and general business operating expenses. Interest credited principally relates to individual and group fixed annuities, funding agreements backing the MTN program, FHLB
funding agreement and certain life insurance products. Life insurance and annuity benefits include policyholder benefits in excess of policyholder accounts for universal life and individual deferred annuities and net claims and provisions for future
policy benefits for traditional life insurance products and immediate annuities.
Profitability
The Company's profitability largely depends on its ability to
effectively price and manage risk on its various products, administer customer funds and control operating expenses. Lapse rates on existing contracts also impact profitability. The lapse rate and distribution of lapses affect surrender charges and
impact DAC amortization assumptions when lapse experience changes significantly.
In particular, the Company's profitability
is driven by fee income on separate account products, general and separate account asset levels, and management's ability to manage interest spread income. While asset fees are largely at guaranteed annual rates, amounts earned vary directly with
the underlying performance of the separate accounts. Interest
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spread income is comprised of net investment
income, excluding any applicable allocated charges for invested capital, less interest credited to policyholder accounts. Interest spread income can vary depending on crediting rates offered by the Company, performance of the investment portfolio,
including the rate of prepayments, changes in market interest rates and the level of invested assets, the competitive environment and other factors.
In addition, life insurance profits are significantly impacted
by mortality, morbidity and persistency experience. Asset impairments and the tax position of the Company also impact profitability.
Fair Value Measurements
See Note 2 to the audited consolidated
financial statements included in the F pages of this report for details regarding the Company's policies for fair value measurements of its assets and liabilities.
Investments
The following table summarizes the sources
used in determining the fair values of fixed maturity securities, as of the dates indicated:
December 31,
2014
December 31,
2013
Independent pricing
services
87%
86%
Pricing
matrices
9%
10%
Broker
quotes
3%
3%
Internal pricing
models
1%
0%
Other
sources
0%
1%
Total
100%
100%
As of December 31, 2014, Level 3
investments comprised 4% of total investments measured at fair value compared to 3% as of December 31, 2013.
For additional information on the inputs the Company uses in
the determination of the fair value of assets and liabilities, see Note 2 to the audited consolidated financial statements included in the F pages of this report.
Credit Risk Associated with Derivatives
See Note 7 to the audited consolidated
financial statements included in the F pages of this report for details regarding the Company's evaluation of credit risk associated with derivatives.
Future Policy Benefits and Claims
The fair value measurements for future
policy benefits and claims relate to embedded derivatives associated with contracts with certain living benefits (GMABs and GLWBs) ("living benefits") and indexed products. Related derivatives are internally valued. The fair value of the embedded
derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivative incorporate numerous assumptions including, but not limited to, mortality,
lapse, equity index volatility, wait period (the number of years the policyholder is assumed to wait prior to beginning withdrawals once eligible), efficiency of benefit utilization (the percent of the maximum permitted withdrawal that a
policyholder takes) and discounting, including liquidity and non-performance risk (the risk that the liability will not be fulfilled and affects the value at which the liability is transferred).
See Note 7 to the audited consolidated financial statements
included in the F pages of this report for a discussion of the net realized gains and losses recognized on living benefit embedded derivatives.
Critical Accounting Policies and Recently Issued Accounting
Standards
The preparation of the
consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.
Significant estimates include the balance and amortization of
DAC, legal and regulatory reserves, certain investment and derivative valuations, future policy benefits and claims including the valuation of embedded derivatives resulting from living benefit guarantees on variable annuity contracts, goodwill,
provision for income taxes and valuation of deferred tax assets. Actual results could differ significantly from those estimates.
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Note 2 and Note 3 to the audited consolidated financial
statements included in the F pages of this report provide a summary of significant accounting policies and a discussion of recently issued accounting standards, respectively.
Deferred Policy Acquisition Costs
See Note 2 to the audited consolidated
financial statements included in the F pages of this report for details regarding the Company's policies for DAC.
The Company regularly evaluates and adjusts the DAC balance
when actual gross profits in a given reporting period vary from management's initial estimates, with a corresponding charge or credit to current period earnings. Additionally, the Company regularly evaluates its assumptions regarding the future
estimated gross profits used as a basis for amortization of DAC and adjusts the total amortization recorded to date by a charge or credit to earnings if evidence suggests that these future assumptions and estimates should be revised. The Company
refers to this process as "unlocking," which generally is performed on an annual basis. In addition, the Company regularly monitors its actual experience and evaluates relevant internal and external information impacting its assumptions and may
unlock more frequently than annually if such information and analysis warrants.
For variable annuity products, the DAC
balance is sensitive to the effects of changes in the Company's estimates of gross profits, primarily due to the significant portion of the Company's gross profits that are dependent upon the rate of return on assets held in separate accounts. This
rate of return influences fees earned by the Company from these products and costs incurred by the Company associated with minimum contractual guarantees, as well as other sources of future expected gross profits. The Company's long-term assumption
for net separate account investment performance is approximately 6.25% growth per year as of December 31, 2014. In its ongoing evaluation of this assumption, the Company monitors its historical experience, market information and other relevant
trends. To demonstrate the sensitivity of both the Company's variable annuity product DAC balance, which was approximately $2.4 billion in aggregate at December 31, 2014, and related amortization, a 1% increase (to 7.25%) or decrease (to 5.25%) in
the long-term assumption for net separate account investment performance would result in an approximately $7 million net increase or net decrease, respectively, in DAC amortization over the following year. The information provided above considers
only changes in the assumption for long-term net separate account investment performance and excludes changes in other assumptions used in the Company's evaluation of DAC.
The pre-tax positive impact on the Company's assets and
liabilities as a result of the unlocking of assumptions during the year ended December 31, 2014 was as follows:
(in
 millions)
DAC
Other
expenses
Total
Segment:
Individual Products & Solutions -
Annuity
$147
$10
$157
Retirement
Plans
35
-
35
Individual Products & Solutions - Life and
NBSG
8
4
12
Total
$190
$14
$204
During 2014, the Company recognized
a decrease in DAC amortization of $190 million as a result of the annual comprehensive review of model assumptions and enhancements. The updated assumptions were primarily related to the actual performance of the block of business since the prior
year review and the expectations for lapses, partially offset by an update to the Company's long-term assumptions for separate account investment performance, which were updated to reflect assumed gross returns of 10.5% for equity funds and 5.0% for
fixed funds.
The pre-tax positive (negative) impact on
the Company's assets and liabilities as a result of the unlocking of assumptions during the year ended December 31, 2013 was as follows:
(in
 millions)
DAC
Other
expenses
Total
Segment:
Individual Products & Solutions -
Annuity
$
16
$(4)
$
12
Retirement
Plans
9
-
9
Individual Products & Solutions - Life and
NBSG
(26)
8
(18)
Total
$
(1)
$
4
$
3
During 2013, the net change in DAC amortization as a result of
the annual comprehensive review of model assumptions was immaterial.
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The pre-tax positive (negative) impact on the Company's assets
and liabilities as a result of the unlocking of assumptions during the year ended December 31, 2012 was as follows:
(in
 millions)
DAC
Other
Total
Segment:
Individual Products & Solutions -
Annuity
$(12)
$
(2)
$(14)
Individual Products & Solutions - Life and
NBSG
(38)
25
(13)
Total
$(50)
$23
$(27)
During 2012, the Company incurred
additional DAC amortization of $50 million as a result of the annual comprehensive review of model assumptions, as well as a deviation from equity market performance as compared to assumed net separate account returns. The updated assumptions were
primarily related to actual gross profits and the in force block of business deviating from expectations, renewal premiums, general account margins and lapses.
Results of Operations
2014 Compared to 2013
The following table summarizes the Company's consolidated
results of operations for the years ended:
(in
 millions)
December
 31, 2014
December
 31, 2013
Change
Revenues:
Policy
 charges:
Asset
fees
$
955
$
854
12%
Cost of insurance
charges
520
490
6%
Administrative
fees
554
468
18%
Surrender
fees
36
37
(3%)
Total policy
charges
$
2,065
$1,849
12%
Premiums
831
724
15%
Net investment
income
1,900
1,849
3%
Net realized investment(losses) gains, including other-than-temporary impairment
losses
(1,078)
678
(259%)
Other
revenues
11
17
(35%)
Total
revenues
$
3,729
$5,117
(27%)
Benefits and expenses:
Interest credited to policyholder account
values
$
1,096
$1,067
3%
Benefits and
claims
1,502
1,354
11%
Amortization of deferred policy acquisition
costs
207
374
(45%)
Other expenses, net of deferrals
1,055
981
8%
Total benefits and
expenses
$
3,860
$3,776
2%
(Loss) income before federal income taxes and noncontrolling
interests
$
(131)
$1,341
(110%)
Federal income tax (benefit) expense
(147)
313
(147%)
Net
income
$
16
$1,028
(98%)
Less: Loss attributable to noncontrolling interest, net of
tax
(94)
(82)
15%
Net income attributable to
NLIC
$
110
$1,110
(90%)
The Company recorded a net loss
before federal income taxes and noncontrolling interests for the year ended December 31, 2014 compared to a net gain in 2013 primarily due to net realized investment losses in the current year and an increase in benefits and claims, partially offset
by higher policy charges and lower amortization of DAC.
During the year ended December 31, 2014, the Company
recognized net realized investment losses of $1.0 billion, pre-tax, compared to net realized investment gains of $645 million in 2013, on interest rate swaps utilized as economic hedges designed to protect statutory capital attributable to decreases
in key interest rates during 2014 as opposed to increases in key interest rates during 2013.
Benefits and claims increased primarily due to higher
life-contingent immediate annuity reserves due to new premium growth and benefit cost increases related to living benefit products' growth.
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Higher asset fees and administrative fees drove the increase
in policy charges. Asset fees increased due to higher average separate account values (up 14%) in the Individual Products & Solutions – Annuity segment. Administrative fees improved due to growth of the living benefit products and due to
increased sales and a growing inforce block of universal life products.
Lower amortization of DAC was primarily due to a favorable DAC
unlock of $190 million, pre-tax, during 2014 compared to an unfavorable DAC unlock of $1 million, pre-tax, during 2013. Refer to
Critical Accounting Policies and Recently Issued Accounting Standards
for a
description of the DAC unlocks.
2013 Compared to
2012
The following table summarizes the Company's
consolidated results of operations for the years ended:
(in
 millions)
December
 31, 2013
December
 31, 2012
Change
Revenues:
Policy
 charges:
Asset
fees
$
854
$
771
11%
Cost of insurance
charges
490
478
3%
Administrative
fees
468
374
25%
Surrender
fees
37
47
(21%)
Total policy
charges
$1,849
$1,670
11%
Premiums
724
635
14%
Net investment
income
1,849
1,825
1%
Net realized investment gains, including other-than-temporary impairment
losses
678
319
113%
Other
revenues
17
7
143%
Total
revenues
$5,117
$4,456
15%
Benefits
 and expenses:
Interest credited to policyholder
accounts
$1,067
$1,038
3%
Benefits and
claims
1,354
1,227
10%
Amortization of deferred policy acquisition
costs
374
575
(35%)
Other expenses, net of deferrals
981
917
7%
Total benefits and
expenses
$3,776
$3,757
1%
Income before federal income taxes and noncontrolling
interests
$1,341
$
699
92%
Federal income tax expense
313
99
216%
Net
income
$1,028
$
600
71%
Less: Loss attributable to noncontrolling interest, net of
tax
(82)
(61)
34%
Net income attributable to
NLIC
$1,110
$
661
68%
The increase in net income before
federal income taxes and noncontrolling interests for the year ended December 31, 2013 compared to the prior year was primarily due to higher net realized investment gains, lower amortization of DAC and higher policy charges, partially offset by an
increase in benefits and claims.
During 2013, the
Company recognized an increase in net realized investment gains of $774 million, pre-tax, on interest rate swaps utilized as economic hedges designed to protect statutory capital attributable to increases in key interest rates during 2013. This
increase was partially offset by a decline in net realized investment gains related to living benefit embedded derivatives, net of economic hedging, of $396 million, pre-tax, attributable to modest current year favorability as changes in hedges and
liabilities are tightly matched as well as less effect from living benefit reserve assumptions updates in 2013.
Lower amortization of DAC was primarily due to lower net
realized investment gains on the living benefit embedded derivatives, net of economic hedging in 2013. Additionally, an unfavorable DAC unlock of $1 million, pre-tax, during 2013 compared to an unfavorable DAC unlock of $50 million, pre-tax, during
2012 resulted in lower amortization. Refer to
Critical Accounting Policies and Recently Issued Accounting Standards
for a description of the DAC unlocks.
Higher administrative and asset fees drove
the increase in policy charges. Administrative fees improved due to the growth of living benefit products and due to premium loads as a result of increased sales of the universal life products. Asset fees increased due to higher average separate
account values (up 12%) in the Individual Products & Solutions – Annuity segment.
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Benefits and claims increased primarily due
to higher life-contingent immediate annuity reserves related to new premium growth and benefit cost increases related to deferral of living benefit product administrative fees. Growth in universal life insurance products and updates to the benefit
ratio assumptions also drove the increase.
Business
Segments
Individual Products & Solutions -
Annuity
2014 Compared to 2013
The following table summarizes selected consolidated financial
data for the Company's Individual Products & Solutions - Annuity segment for the years ended:
(in
 millions)
December
 31, 2014
December
 31, 2013
Change
Results
 of Operations
Revenues:
Policy
 charges:
Asset
fees
$
807
$
716
13%
Administrative
fees
342
283
21%
Surrender
fees
26
22
18%
Total policy
charges
$1,175
$1,021
15%
Premiums
518
416
25%
Net investment
income
546
546
0%
Other
revenues
(38)
(109)
(65%)
Total
revenues
$2,201
$1,874
17%
Benefits
 and expenses:
Interest credited to policyholder
accounts
$
370
$
377
(2%)
Benefits and
claims
828
694
19%
Amortization of deferred policy acquisition
costs
120
185
(35%)
Other expenses, net of deferrals
300
295
2%
Total benefits and
expenses
$1,618
$1,551
4%
Pre-tax operating
earnings
$
583
$
323
80%
Pre-tax operating earnings
increased for the year ended December 31, 2014 compared to the year ended December 31, 2013 primarily due to higher policy charges and premiums. An increase in benefits and claims was partially offset by a decrease in DAC amortization during the
year.
Higher asset and administrative fees drove the
increase in policy charges. Asset fees increased $91 million due to higher average separate account values (up 14%). Administrative fees increased $59 million primarily due to growth in sales of living benefit products.
Increased sales of life-contingent immediate annuities
generated premiums of $518 million during 2014 as compared to $416 million during 2013, a $102 million increase.
Benefits and claims increased primarily due to higher
life-contingent immediate annuity reserves due to new premium growth and benefit cost increases related to living benefit products' growth.
Lower amortization of DAC was partially due to a favorable
unlock of $147 million, pre-tax, during 2014 compared to a favorable unlock of $16 million, pre-tax, during 2013. Refer to
Critical Accounting Policies and Recently Issued Accounting Standards
for a
description of the DAC unlocks.
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2013 Compared to 2012
The following table summarizes selected
consolidated financial data for the Company's Individual Products & Solutions - Annuity segment for the years ended:
(in
 millions)
December
 31, 2013
December
 31, 2012
Change
Results
 of Operations
Revenues:
Policy
 charges:
Asset
fees
$
716
$
642
12%
Administrative
fees
283
229
24%
Surrender
fees
22
28
(21%)
Total policy
charges
$1,021
$
899
14%
Premiums
416
334
25%
Net investment
income
546
551
(1%)
Other
revenues
(109)
(124)
(12%)
Total
revenues
$1,874
$1,660
13%
Benefits and expenses:
Interest credited to policyholder
accounts
$
377
$
375
1%
Benefits and
claims
694
613
13%
Amortization of deferred policy acquisition
costs
185
185
0%
Other expenses, net of deferrals
295
266
11%
Total benefits and
expenses
$1,551
$1,439
8%
Pre-tax operating
earnings
$
323
$
221
46%
Pre-tax operating earnings
increased for the year ended December 31, 2013 compared to the year ended December 31, 2012 due to higher policy charges and premiums, partially offset by higher benefits and claims.
Higher asset and administrative fees drove the increase in
policy charges. Asset fees increased $74 million due to higher average separate account values (up 12%). Administrative fees increased $54 million due to growth in sales of the living benefit products.
Increased sales of life-contingent immediate annuities
generated premiums of $416 million during 2013 compared to $334 million during 2012, an $82 million increase.
The increase in benefits and claims was attributable to higher
life-contingent immediate annuity reserves of $62 million related to new premium growth and higher benefit cost increases of $42 million related to living benefit products' growth.
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Retirement Plans
2014 Compared to 2013
The following table summarizes selected consolidated financial
data for the Company's Retirement Plans segment for the years ended:
(in
 millions)
December
 31, 2014
December
 31, 2013
Change
Results
 of Operations
Revenues:
Policy
 charges:
Asset
fees
$
96
$
90
7%
Administrative
fees
11
11
0%
Total policy
charges
$107
$101
6%
Net investment
income
750
743
1%
Total
revenues
$857
$844
2%
Benefits
 and expenses:
Interest credited to policyholder
accounts
$482
$473
2%
Amortization of deferred policy acquisition
costs
(28)
(2)
1300%
Other expenses, net of deferrals
153
151
1%
Total benefits and
expenses
$607
$622
(2%)
Pre-tax operating
earnings
$250
$222
13%
Pre-tax operating earnings
increased for the year ended December 31, 2014 compared to the year ended December 31, 2013 due to lower amortization of DAC.
Lower amortization of DAC was attributable to a favorable DAC
unlock of $35 million, pre-tax, during 2014 compared to a favorable unlock of $9 million, pre-tax, during 2013. Refer to
Critical Accounting Policies and Recently Issued Accounting Standards
for a description
of the DAC unlocks.
2013 Compared to 2012
The following table summarizes selected
consolidated financial data for the Company's Retirement Plans segment for the years ended:
(in
 millions)
December
 31, 2013
December
 31, 2012
Change
Results
 of Operations
Revenues:
Policy
 charges:
Asset
fees
$
90
$
85
6%
Administrative
fees
11
8
38%
Surrender
fees
-
1
(100%)
Total policy
charges
$101
$
94
7%
Net investment
income
743
736
1%
Total
revenues
$844
$830
2%
Benefits
 and expenses:
Interest credited to policyholder
accounts
$473
$457
4%
Amortization of deferred policy acquisition
costs
(2)
14
(114%)
Other expenses, net of deferrals
151
164
(8%)
Total benefits and
expenses
$622
$635
(2%)
Pre-tax operating
earnings
$222
$195
14%
Pre-tax operating earnings
increased for the year ended December 31, 2013 compared to the year ended December 31, 2012 due to lower amortization of DAC and lower other expenses, net of deferrals.
Lower amortization of DAC was primarily due to a favorable DAC
unlock of $9 million, pre-tax, during 2013. Refer to
Critical Accounting Policies and Recently Issued Accounting Standards
for a description of the DAC unlocks.
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Other expenses, net of deferrals, decreased
$13 million during 2013 due to the loss of the State of California plan and related write-off of capitalized software costs during 2012.
Individual Products & Solutions - Life and NBSG
2014 Compared to 2013
The following table summarizes selected consolidated financial
data for the Company's Individual Products & Solutions - Life and NBSG segment for the years ended:
(in
 millions)
December
 31, 2014
December
 31, 2013
Change
Results
 of Operations
Revenues:
Policy
 charges:
Asset
fees
$
52
$
48
8%
Cost of insurance
charges
520
490
6%
Administrative
fees
201
174
16%
Surrender
fees
10
15
(33%)
Total policy
charges
$
783
$
727
8%
Premiums
284
282
1%
Net investment
income
565
544
4%
Other
revenues
12
6
100%
Total
revenues
$1,644
$1,559
5%
Benefits
 and expenses:
Interest credited to policyholder
accounts
$
231
$
213
8%
Benefits and
claims
644
636
1%
Amortization of deferred policy acquisition
costs
122
125
(2%)
Other expenses, net of deferrals
348
347
0%
Total benefits and
expenses
$1,345
$1,321
2%
Pre-tax operating
earnings
$
299
$
238
26%
The increase in pre-tax operating
earnings for the year ended December 31, 2014 compared to the year ended December 31, 2013 was primarily due to higher policy charges.
The increase in policy charges during 2014 compared to 2013
was primarily attributable to higher cost of insurance charges and higher administrative fees due to increased sales of universal life and a growing inforce block.
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2013 Compared to 2012
The following table summarizes selected
consolidated financial data for the Company's Individual Products & Solutions - Life and NBSG segment for the years ended:
(in
 millions)
December
 31, 2013
December
 31, 2012
1
Change
Results
 of Operations
Revenues:
Policy
 charges:
Asset
fees
$
48
$
44
9%
Cost of insurance
charges
490
478
3%
Administrative
fees
174
137
27%
Surrender
fees
15
18
(17%)
Total policy
charges
$
727
$
677
7%
Premiums
282
274
3%
Net investment
income
544
534
2%
Other
revenues
6
-
100%
Total
revenues
$1,559
$1,485
5%
Benefits
 and expenses:
Interest credited to policyholder
accounts
$
213
$
199
7%
Benefits and
claims
636
588
8%
Amortization of deferred policy acquisition
costs
125
150
(17%)
Other expenses, net of deferrals
347
307
13%
Total benefits and
expenses
$1,321
$1,244
6%
Pre-tax operating
earnings
$
238
$
241
(1%)
1
Due to a change in the manner
in which we view our reportable segments, certain prior period amounts have been restated.
The decrease in pre-tax operating earnings
for the year ended December 31, 2013 compared to the year ended December 31, 2012 was due to higher benefits and claims, partially offset by higher policy charges and lower amortization of DAC.
Growth in universal life insurance products and updates to the
benefit ratio assumptions drove the increase in benefits and claims.
The increase in policy charges was attributable to higher
administrative fees of $37 million due to premium loads as a result of increased sales.
Lower amortization of DAC was primarily attributable to an
unfavorable DAC unlock of $26 million, pre-tax, in 2013 compared to an unfavorable DAC unlock of $38 million, pre-tax, in 2012. Refer to
Critical Accounting Policies and Recently Issued Accounting Standards
for a description of the DAC unlocks.
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Corporate and Other
2014 Compared to 2013
The following table summarizes selected consolidated financial
data for the Company's Corporate and Other segment for the years ended:
(in
 millions)
December
 31, 2014
December
 31, 2013
Change
Results
 of Operations
Operating
 revenues:
Premiums
$
29
$
26
12%
Net investment
income
39
16
144%
Other
revenues
10
13
(23%)
Total operating
revenues
$
78
$
55
42%
Benefits
 and operating expenses:
Interest credited to policyholder
accounts
$
13
$
4
225%
Other expenses, net of deferrals
194
124
56%
Total benefits and operating
expenses
$
207
$128
62%
Pre-tax operating
loss
$
(129)
$
(73)
77%
Add: non-operating net realized investment (losses) gains, including other-than-temporary impairment
losses
1
$(1,051)
$783
(234%)
Add: adjustment to amortization of DAC and other related expenses related to net realized investment gains and
losses
11
(70)
(116%)
Add: net loss attributable to noncontrolling
interests
(94)
(82)
15%
(Loss) income from continuing operations before federal income tax benefit
(expense)
$(1,263)
$558
(326%)
1
Excluding operating items
(trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).
This segment recorded a higher pre-tax operating loss during
the year ended December 31, 2014 compared to the year ended December 31, 2013, which was partially offset by higher interest spread income.
Increase in interest spread income was primarily due to an
increase in net investment income. Increase is primarily due to lower losses on alternative tax credits during 2014 compared to 2013.
During the year ended December 31, 2014, the Company
recognized non-operating net realized investment losses of $1.0 billion, pre-tax, compared to non-operating net investment gains of $645 million during the year ended December 31, 2013 on interest rate swaps utilized as economic hedges designed to
protect statutory capital attributable to decreases in key interest rates during 2014 as opposed to increases in key interest rates during 2013.
Lower amortization of DAC was primarily due to the differing
effect of the net realized investment gains (losses) from the living benefit embedded derivatives, net of economic hedging in the respective years.
See Note 6 of the audited consolidated financial statements
included in the F pages of this report, for additional information on net realized investment gains (losses).
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2013 Compared to 2012
The following table summarizes selected
consolidated financial data for the Company's Corporate and Other segment for the years ended:
(in
 millions)
December
 31, 2013
December
 31, 2012
1
Change
Results
 of Operations
Operating
 revenues:
Premiums
$
26
$
27
(4%)
Net investment
income
16
4
300%
Other
revenues
13
23
(43%)
Total operating
revenues
$
55
$
54
2%
Benefits
 and operating expenses:
Interest credited to policyholder
accounts
$
4
$
7
(43%)
Other expenses, net of deferrals
124
128
(3%)
Total benefits and operating
expenses
$128
$
135
(5%)
Pre-tax operating
loss
$
(73)
$
(81)
(10%)
Add: non-operating net realized investment gains, including other-than-temporary impairment
losses
2
$783
$
427
83%
Add: adjustment to amortization of DAC and other related expenses related to net realized investment gains and
losses
(70)
(243)
(71%)
Add: net loss attributable to noncontrolling
interest
(82)
(61)
34%
Income from continuing operations before federal income tax
expense
$558
$
42
1229%
1
Due to a change in the manner
in which we view our reportable segments, certain prior period amounts have been restated.
2
Excluding
operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).
The Company recorded a lower pre-tax
operating loss during the year ended December 31, 2013 compared to the year ended December 31, 2012 due to higher interest spread income, partially offset by lower other revenues.
Increase in interest spread income was primarily due to an
increase in net investment income. This was primarily due to higher prepayment income on fixed maturity securities, partially offset by higher losses on low-income-housing tax credits.
Lower other revenues were driven by valuation losses on
synthetic collateralized debt obligations of $4 million in 2013 compared to gains of $15 million in 2012, partially offset by higher service fee revenue.
The Company recognized an increase in
non-operating realized investment gains of $774 million, pre-tax, on interest rate swaps utilized as economic hedges designed to protect statutory capital attributable to increases in key interest rates during 2013. This increase was partially
offset by a decline in net realized investment gains related to living benefit embedded derivatives, net of economic hedging, of $396 million, pre-tax, attributable to modest current year favorability as changes in hedges and liabilities were
tightly matched, as well as a less favorable effect from living benefit reserve assumptions updates in 2013.
Lower amortization of DAC was primarily due to lower net
realized investment gains on living benefit embedded derivatives, net of economic hedging during 2013.
See Note 6 of the audited consolidated financial statements
included in the F pages of this report, for additional information on net realized investment gains.
Liquidity and Capital Resources
Liquidity and capital resources demonstrate the overall
financial strength of the Company and its ability to generate cash flows from its operations and borrow funds at competitive rates to meet operating and growth needs.
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 of Contents
The Company's capital structure consists of
long-term debt and shareholder's equity. The following table summarizes the Company's capital structure as of the dates indicated:
(in
 millions)
December
 31, 2014
December
 31, 2013
December
 31, 2012
Long-term debt
$
709
$
707
$1,038
Shareholder's equity, excluding accumulated other comprehensive
income
$6,352
$6,242
$5,132
Accumulated other comprehensive
income
1,044
582
1,252
Total shareholder's
equity
$7,396
$6,824
$6,384
Total
capital
$8,105
$7,531
$7,422
A primary liquidity concern with respect to annuity and life insurance
products is the risk of early policyholder withdrawal. The Company attempts to mitigate this risk by offering variable products where the investment risk is transferred to the policyholder, charging surrender fees at the time of withdrawal for
certain products, applying a market value adjustment to withdrawals for certain products in the Company's general account and monitoring and matching anticipated cash inflows and outflows.
For individual annuity products, surrender charges generally
are calculated as a percentage of deposits and are assessed at declining rates during the first seven years after a deposit is made.
For group annuity products, surrender charge amounts and
periods can vary significantly depending on the terms of each contract and the compensation structure for the producer. Generally, surrender charge percentages for group products are less than individual products because the Company incurs lower
expenses at contract origination for group products. In addition, the majority of general account group annuity reserves are subject to a market value adjustment at withdrawal.
Life insurance policies are less susceptible to withdrawal
than annuity products because policyholders generally must undergo a new underwriting process and may incur a surrender fee in order to obtain a new insurance policy.
The short-term and long-term liquidity requirements of the
Company are monitored regularly to match cash inflows with cash requirements. The Company reviews its short-term and long-term projected sources and uses of funds and the asset/liability, investment and cash flow assumptions underlying these
projections. The Company periodically makes adjustments to its investment policies to reflect changes in short-term and long-term cash needs and changing business and economic conditions.
Given the Company's historical cash flows
from operating and investing activities and current financial results, the Company believes that cash flows from operating activities over the next year will provide sufficient liquidity for the operations of the Company and sufficient funds for
interest payments.
Debt
See Notes 11 and 12 to the audited
consolidated financial statements included in the F pages of this report for details regarding the Company's usage of short-term and long-term debt, respectively.
Guarantees
See Note 6 to the audited consolidated
financial statements included in the F pages of this report for a description of the potential impact on liquidity of the Company's Low-Income-Housing Tax Credit Funds.
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Contractual Obligations and Commitments
The following table summarizes the Company's
contractual obligations and commitments as of December 31, 2014 expected to be paid in the periods presented. Payment amounts reflect the Company's estimate of undiscounted cash flows related to these obligations and commitments. Balance sheet
amounts were determined in accordance with GAAP and may differ from the summation of undiscounted cash flows. The most significant difference relates to future policy benefits for life and health insurance, which include discounting.
Payments
 due by period
Amount
per
balance
sheet
(in
 millions)
Less
than 1
year
1-3
years
3-5
years
More
than 5
years
Total
Debt
1
:
Short-term
$
661
$
-
$
-
$
-
$
661
$
660
Long-term
54
107
107
1,379
1,647
709
Subtotal
$
715
$
107
$
107
$
1,379
$
2,308
$
1,369
Purchase
 and lending commitments:
Fixed maturity
securities
178
-
-
-
178
-
Mortgage
loans
289
-
-
-
289
-
Limited
partnerships
2
123
-
-
-
123
-
Subtotal
$
590
$
-
$
-
$
-
$
590
$
-
Future
 policy benefits and claims
3,4,5,6
:
Fixed annuities and fixed option of variable
annuities
1,346
2,631
2,214
4,418
10,609
9,090
Life
insurance
910
1,663
1,692
23,187
27,452
10,793
Single premium immediate
annuities
444
824
706
3,715
5,689
3,530
Group pension deferred fixed
annuities
1,556
2,812
2,562
8,742
15,672
14,905
Funding agreements and accident & health
insurance
7
679
100
1,422
1,286
3,487
2,412
Subtotal
$4,935
$8,030
$8,596
$41,348
$62,909
$40,730
Cash
 collateral
8, 9
Cash collateral on securities
lending
261
-
-
-
261
261
Cash collateral on derivative
transactions
535
-
-
-
535
535
Subtotal
$
796
$
-
$
-
$
-
$
796
$
796
Total
$7,036
$8,137
$8,703
$42,727
$66,603
$42,895
1
No contractual provisions
exist that could create, increase or accelerate those obligations presented. The amount presented includes contractual principal payments and interest based on rates in effect at December 31, 2014.
2
Limited partnerships are
primarily related to investments in low-income-housing tax credit partnerships. Call dates for the obligations presented are either date or event specific. For date specific obligations, the Company is required to fund a specified amount on a stated
date provided there are no defaults under the agreement. For event specific obligations, the Company is required to fund a specified amount of its capital commitment when properties in a fund become fully stabilized. For event specific obligations,
the call date of these commitments may extend beyond one year but has been reflected in payments due in less than one year due to the call features. The Company's capital typically is called within one to four years, depending on the timing of
events.
3
A
significant portion of policy contract benefits and claims to be paid do not have stated contractual maturity dates and may not result in any ultimate payment obligation. Amounts reported represent estimated undiscounted cash flows out of the
Company's general account related to death, surrender, annuity and other benefit payments under policy contracts in force at December 31, 2014. Separate account payments are not reflected due to the matched nature of these obligations and because
the contract owners bear the investment risk of such deposits. Estimated payment amounts were developed based on the Company's historical experience and related contractual provisions. Significant assumptions incorporated in the reported amounts
include future policy lapse rates (including the impact of customer decisions to make future premium payments to keep the related policies in force); coverage levels remaining unchanged from those provided under contracts in force at December 31,
2014; future interest crediting rates; and estimated timing of payments. Actual amounts will vary, potentially by a significant amount, from the amounts indicated due to deviations between assumptions and actual results and the addition of new
business in future periods.
4
Contractual provisions exist
which could adjust the amount and/or timing of those obligations reported. Key assumptions related to payments due by period include customer lapse and withdrawal rates (including timing of death), exchanges to and from the fixed and separate
accounts of the variable annuities, claim experience with respect to guarantees, and future interest crediting levels. Assumptions for future interest crediting levels were made based on processes consistent with the Company's past practices, which
are at the discretion of the Company, subject to guaranteed minimum crediting rates in many cases and/or subject to contractually obligated increases for specified time periods. Many of the contracts with potentially accelerated payments are subject
to surrender charges, which are generally calculated as a percentage of deposits made and are assessed at declining rates during the first
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seven years after a deposit
is made. Amounts disclosed include an estimate of those accelerated payments, net of applicable surrender charges. See Note 2 to the audited consolidated financial statements included in the F pages of this report for a description of the Company's
method for establishing life and annuity reserves in accordance with GAAP.
5
Certain assumptions have been
made about mortality experience and retirement patterns in the amounts reported. Actual deaths and retirements may differ significantly from those projected, which could cause the timing of the obligations reported to vary significantly. In
addition, contractual surrender provisions exist on an immaterial portion of these contracts that could accelerate those obligations presented. Amounts disclosed do not include an estimate of those accelerated payments. Most of the contracts with
potentially accelerated payments are subject to surrender charges, which are generally calculated as a percentage of the commuted value of the remaining term certain benefit payments and are assessed at declining rates during the first seven policy
years.
6
Contractual provisions
 exist that could increase those obligations presented. The process for determining future interest crediting rates as described in Note 5 above was used to develop the estimates of payments due by period.
7
Health reserves are
immaterial and are reflected in the less than one year column.
8
Since the timing of the
return is uncertain, these obligations have been reflected in payments due in less than one year.
9
The table
above excludes certain derivative liabilities. For more information on these instruments see Characteristics of Interest Rate Sensitive Financial Instruments. Embedded derivatives on guaranteed benefit annuity programs are included in future policy
benefits and claims in the table above.
Investments
General
The Company's assets are divided between
separate account and general account assets. As of December 31, 2014, $88.1 billion (61%) of the Company's total assets were held in separate accounts compared to $84.1 billion (63%) as of December 31, 2013 and $55.4 billion (39%) were held in the
Company's general account compared to $49.4 billion (37%) as of December 31, 2013, including $45.4 billion of general account investments compared to $40.8 billion as of December 31, 2013.
Separate account assets primarily consist of investments made
with deposits from the Company's variable annuity and variable life insurance business. Most separate account assets are invested in various mutual funds. After deducting fees or expense charges, the investment performance in the Company's separate
account assets is passed through to the Company's customers.
The following table summarizes the Company's consolidated
general account investments by asset category, as of the dates indicated:
December
 31, 2014
December
 31, 2013
(in
 millions)
Carrying
value
%
 of
total
Carrying
value
%
 of
total
Fixed maturity securities,
available-for-sale
$35,418
78%
$32,249
79%
Mortgage loans, net of
allowance
7,270
16%
6,341
16%
Policy
loans
992
2%
987
2%
Short-term
investments
935
2%
411
1%
Other
investments
822
2%
767
2%
Total
$45,437
100%
$40,755
100%
See Note 6 to the audited
consolidated financial statements included in the F pages of this report for further information regarding the Company's investments.
Available-for-Sale Securities
Refer to Note 6 to the audited consolidated financial
statements included in the F pages of this report for information regarding the nature of the Company's portfolio of available-for-sale securities and the methodology and inputs used in evaluating whether the securities are other-than-temporarily
impaired.
Collateral Exposure
The Company's portfolio of residential mortgage-backed
securities is comprised of investments securitized by the cash flows of mortgage loans with four primary collateral characteristics: government agency, prime, Alt-A and sub-prime. In general, recent market activity has negatively impacted the
valuation of securities containing Alt-A and sub-prime collateral.
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The Company considers Alt-A collateral to be mortgages whose
underwriting standards do not qualify the mortgage for prime financing terms. Typical underwriting characteristics that cause a mortgage to fall into the Alt-A classification may include, but are not limited to, inadequate loan documentation of a
borrower's financial information, debt-to-income ratios above normal lending limits, loan-to-value ("LTV") ratios above normal lending limits that do not have primary mortgage insurance, a borrower who is a temporary resident, and loans securing
non-conforming types of real estate. Alt-A mortgages are generally issued to borrowers having higher Fair Isaac Credit Organization ("FICO") scores, and the lender typically charges a slightly higher interest rate for such mortgages.
The Company considers sub-prime collateral to be mortgages
that are first or second-lien mortgage loans issued to borrowers that cannot qualify for prime or Alt-A financing terms, as demonstrated by recent delinquent rent or housing payments or substandard FICO scores. The Company considers prime collateral
to be mortgages whose underwriting standards qualify the mortgage for regular conforming or jumbo loan programs. In addition, government agency collateral is considered to be mortgages securitized by government agencies both implicitly and
explicitly backed by the full faith and credit of the U.S. Government.
The following table summarizes the
distribution by collateral classification of the Company's general account residential mortgage-backed securities as of December 31, 2014:
(in
 millions)
Amortized
cost
Fair
 value
%
 of
fair value
total
Government
agency
$2,167
$2,295
60%
Prime
397
409
11%
Alt-A
714
716
19%
Sub-prime
410
413
10%
Other residential mortgage
collateral
6
6
-
Total
$3,694
$3,839
100%
The following table summarizes the
distribution by rating (based on the Company's standard rating) and origination year, respectively, of the Company's general account residential mortgage-backed securities as of December 31, 2014:
Alt-A
Sub-prime
(in
 millions)
Amortized
cost
Fair
 value
%
 of
fair value
total
Amortized
cost
Fair
 value
%
 of
fair value
total
AAA
$
-
$
-
-
$
7
$
7
2%
AA
8
8
1%
20
22
5%
A
5
5
1%
33
33
8%
BBB
13
14
2%
42
42
10%
BB and
below
688
689
96%
308
309
75%
Total
$714
$716
100%
$410
$413
100%
Pre-2005
$119
$122
17%
$228
$222
54%
2005
342
343
48%
98
101
24%
2006
153
155
22%
70
76
18%
2007
100
96
13%
5
3
1%
2008-2014
-
-
-
9
11
3%
Total
$714
$716
100%
$410
$413
100%
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The following table summarizes the
distribution by collateral classification of the Company's general account residential mortgage-backed securities as of December 31, 2013:
(in
 millions)
Amortized
cost
Fair
 value
%
 of
fair value
total
Government
agency
$2,104
$2,199
55%
Prime
520
529
13%
Alt-A
858
844
21%
Sub-prime
437
431
11%
Total
$3,919
$4,003
100%
The following table summarizes the
distribution by rating (based on the Company's standard rating) and origination year, respectively, of the Company's general account residential mortgage-backed securities as of December 31, 2013:
Alt-A
Sub-prime
(in
 millions)
Amortized
cost
Fair
 value
%
 of
fair value
total
Amortized
cost
Fair
 value
%
 of
fair value
total
AAA
$
-
$
-
-
$
18
$
18
4%
AA
11
11
1%
28
29
7%
A
8
9
1%
45
45
10%
BBB
35
35
4%
36
35
8%
BB and
below
804
789
94%
310
304
71%
Total
$858
$844
100%
$437
$431
100%
Pre-2005
$169
$174
21%
$241
$229
53%
2005
403
395
47%
95
96
22%
2006
168
165
19%
74
78
18%
2007
118
110
13%
7
7
2%
2008-2013
-
-
-
20
21
5%
Total
$858
$844
100%
$437
$431
100%
The following table summarizes the Company's general account commercial
mortgage-backed securities and other asset-backed securities collateral by rating (based on the Company's standard rating), as of the dates indicated:
Amortized
 cost
Fair
 value
(in
 millions)
AAA
AA
A
 and
below
Total
AAA
AA
A
 and
below
Total
December 31,
 2014:
Commercial mortgage-backed
securities
$
811
$235
$385
$1,431
$
847
$244
$411
$1,502
Other asset-backed
securities
839
268
303
1,410
835
261
269
1,365
Total
$1,650
$503
$688
$2,841
$1,682
$505
$680
$2,867
December 31,
 2013:
Commercial mortgage-backed
securities
$
789
$206
$444
$1,439
$
807
$217
$480
$1,504
Other asset-backed
securities
324
199
367
890
323
198
318
839
Total
$1,113
$405
$811
$2,329
$1,130
$415
$798
$2,343
Mortgage Loans, Net of
Allowance
As of December 31, 2014,
general account mortgage loans were $7.3 billion (16%) of the carrying value of consolidated general account investments compared to $6.3 billion (16%) as of December 31, 2013. Commercial mortgage loans represent 100% of the total mortgage loan
portfolio as of December 31, 2014 and 2013. Commitments to fund mortgage loans of $289 million were outstanding as of December 31, 2014 compared to $68 million as of December 31, 2013.
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The table below summarizes the carrying values of mortgage
loans by regional exposure and property type, as of the dates indicated:
(in
 millions)
Office
Industrial
Retail
Apartment
Hotel
Other
Total
December
 31, 2014
Mortgage
 loans:
New
England
$
42
$
10
$
39
$
13
$
-
$
28
$
132
Middle
Atlantic
170
151
363
168
-
3
855
East North
Central
178
105
440
347
23
17
1,110
West North
Central
8
66
74
134
-
-
282
South
Atlantic
129
266
687
579
30
48
1,739
East South
Central
27
19
139
127
-
-
312
West South
Central
51
143
266
300
-
-
760
Mountain
112
111
110
271
-
-
604
Pacific
323
329
463
345
34
8
1,502
Total amortized
cost
$1,040
$1,200
$2,581
$2,284
$
87
$104
$7,296
Total valuation
allowance
$
(3)
$
(7)
$
(6)
$
(9)
$
-
$
(1)
$
(26)
Total mortgage loans, net of
allowance
$7,270
December
 31, 2013
Mortgage
 loans:
New England
$
56
$
10
$
26
$
14
$
16
$
28
$
150
Middle Atlantic
140
162
345
154
-
5
806
East North Central
165
127
441
271
35
15
1,054
West North Central
9
73
43
120
-
-
245
South Atlantic
148
236
635
353
5
49
1,426
East South Central
22
20
134
149
9
-
334
West South Central
13
91
200
330
-
-
634
Mountain
36
99
114
220
-
-
469
Pacific
316
271
360
259
43
9
1,258
Total amortized
cost
$
905
$1,089
$2,298
$1,870
$108
$106
$6,376
Total valuation allowance
$
(6)
$
(10)
$
(9)
$
(7)
$
(1)
$
(2)
$
(35)
Total mortgage loans, net of allowance
$6,341
As of December 31, 2014, the
Company's largest exposure to any single borrower, region and property type was 1%, 24% and 35%, respectively, of the Company's general account mortgage loan portfolio compared to 2%, 22% and 36%, respectively, as of December 31, 2013.
As of December 31, 2014 and 2013, the Company's mortgage loans
classified as delinquent, foreclosed and restructured were immaterial as a percentage of the total mortgage loan portfolio.
See Note 6 to the audited consolidated financial statements
included in the F pages of this report for further details regarding the Company's investments in mortgage loans.
Credit Quality Information
Given the current market environment, the
Company considers mortgage loans that are backed by office, industrial, and hotel collateral to be higher-risk property types. Hotels have room rates that are short-term in length and can be adjusted quickly, which has generally led to higher levels
of defaults and loss-severity. For the industrial and office property types (particularly flex office), downsizing and consolidation of space has resulted in lower occupancies; which, along with high tenant improvement and leasing commission costs
for re-tenanting space, have put pressure on cash-flows resulting in lower debt service coverage ("DSC") and higher LTV ratios.
With regard to the other remaining property types (apartment,
retail and other), the Company also considers mortgage loans to be high-risk if their collateral characteristics include, but are not limited to: LTV ratios greater than 90%, low DSC ratios, increases in vacancies or concessions, falling rental
rates, and other loan specific characteristics that could indicate additional risk.
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The following table provides relevant asset quality
information on these high-risk categories of mortgage loans, as of the dates indicated:
(in
 millions)
Office
Industrial
Hotel
Other
high-risk
Total
Portfolio
%
of total
December
 31, 2014
Total valuation
allowance
$
3
$
6
$
-
$
3
$
26
46%
Refinanced
loans
1
$105
$286
$
8
$
-
$938
43%
Modified
loans
2
$
-
$
18
$
5
$12
$
50
70%
December
 31, 2013
Total valuation
allowance
$
6
$
10
$
1
$
4
$
35
60%
Refinanced
loans
1
$130
$301
$
8
$
-
$949
46%
Modified
loans
2
$
14
$
22
$43
$13
$107
86%
1
Includes all loans refinanced
at any time during the term of the loan.
2
Includes
all loans modified at any time during the term of the loan.
As noted above, an individual mortgage loan's LTV ratio is an
additional indicator of risk and the calculation of this ratio utilizes certain assumptions and estimates made by the Company. The LTV ratio is calculated as a ratio of the amortized cost of the subject loans to the fair value of the underlying real
estate collateral. The collateral value component is determined based on the Company's view of normalized property operating income for the real estate divided by the prevailing market capitalization rates. In determining the normalized property
operating income, the Company relies upon the most recent property operating statement information, and makes certain assumptions of future property rental income, property expenses, and expectations for vacancies, among other items.
The Company's practice is to obtain updated property operating
statements at least on an annual basis. The Company performs an annual internal valuation of each property, based on these property operating statements. The Company's practice is to obtain external appraisals during the initial underwriting of the
loan.
The following table represents the amortized cost
(excluding valuation allowances) and average LTV ratio of mortgage loans considered high-risk by property region, as of the dates indicated:
Office
Industrial
Hotel
Other
 high–risk
(in
 millions)
Amortized
cost
Average
LTV
Amortized
cost
Average
LTV
Amortized
cost
Average
LTV
Amortized
cost
Average
LTV
December
 31, 2014
New
England
$
42
61%
$
10
50%
$
-
-
$
-
-
Middle
Atlantic
170
63%
151
52%
-
-
-
-
East North
Central
178
59%
105
54%
23
54%
-
-
West North
Central
8
66%
66
62%
-
-
17
92%
South
Atlantic
129
49%
266
61%
30
58%
12
110%
East South
Central
27
66%
19
70%
-
-
-
-
West South
Central
51
69%
143
54%
-
-
-
-
Mountain
112
64%
111
65%
-
-
-
-
Pacific
323
55%
329
55%
34
64%
-
-
Total
$1,040
61%
$1,200
58%
$
87
59%
$29
101%
December
 31, 2013
New
England
$
56
57%
$
10
51%
$
16
75%
$
-
-
Middle
Atlantic
140
65%
162
61%
-
-
-
-
East North
Central
165
61%
127
56%
35
69%
-
-
West North
Central
9
63%
73
69%
-
-
-
-
South
Atlantic
148
48%
236
59%
5
72%
22
102%
East South
Central
22
66%
20
69%
9
50%
25
92%
West South
Central
13
60%
91
58%
-
-
-
-
Mountain
36
70%
99
67%
-
-
6
91%
Pacific
316
59%
271
56%
43
66%
-
-
Total
$
905
59%
$1,089
60%
$108
67%
$53
96%
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For additional information on the Company's valuation
allowance on mortgage loans, as well as non-accrual and delinquent status loans, see Note 2 and Note 6 to the audited consolidated financial statements included in the F pages of this report.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk Sensitive Financial Instruments
The Company is subject to potential
fluctuations in earnings and the fair value of certain of its assets and liabilities, as well as variations in expected cash flows due to changes in interest rates and equity markets. The following discussion focuses on specific interest rate,
foreign currency and equity market risks to which the Company is exposed and describes strategies used to manage these risks. This discussion is limited to financial instruments subject to market risks and is not intended to be a complete discussion
of all of the risks to which the Company is exposed.
Interest Rate Risk
Fluctuations in interest rates can impact the Company's
earnings, cash flows and the fair value of its assets and liabilities. In a declining interest rate environment, the Company may be required to reinvest the proceeds from maturing and prepaying investments at rates lower than the overall portfolio
yield, which could reduce future interest spread income. In addition, minimum guaranteed crediting rates on certain life and annuity contracts could prevent the Company from lowering its interest crediting rates to levels commensurate with
prevailing market interest rates, resulting in a reduction to the Company's interest spread income.
The following table presents account values by range of
minimum guaranteed crediting rates and the current weighted average crediting rates for certain of the Company's products, as of the dates indicated:
Individual
 Products and
Solutions-Annuity
1
Individual
 Products and
Solutions-Life and NBSG
2
Retirement
 Plans
3
(in
 millions)
Account
value
Weighted
average
crediting rate
Account
value
Weighted
average
crediting rate
Account
value
Weighted
average
crediting rate
December
 31, 2014
Minimum
 guaranteed crediting rate of
3.51% or
greater
$
130
4.28%
$
731
4.00%
$
320
4.12%
Minimum
 guaranteed crediting rate of
3.01% to
3.50%
$
498
3.51%
$
-
n/a
$11,605
3.48%
Minimum
 guaranteed crediting rate of
2.01% to
3.00%
$2,971
2.99%
$4,212
3.38%
$
1,670
3.11%
Minimum
 guaranteed crediting rate of
0.01% to
2.00%
$3,492
1.64%
$
176
3.66%
$
744
1.79%
No minimum guaranteed crediting
rate
4
$1,457
2.16%
$
292
7.21%
$
478
2.01%
December
 31, 2013
Minimum
 guaranteed crediting rate of
3.51% or
greater
$
138
4.28%
$
747
4.00%
$
2,076
4.04%
Minimum
 guaranteed crediting rate of
3.01% to
3.50%
$
515
3.51%
$
-
n/a
$10,460
3.55%
Minimum
 guaranteed crediting rate of
2.01% to
3.00%
$3,086
3.01%
$3,823
3.45%
$
770
2.63%
Minimum
 guaranteed crediting rate of
0.01% to
2.00%
$3,799
1.82%
$
83
3.83%
$
519
1.54%
No minimum guaranteed crediting
rate
4
$1,071
2.96%
$
129
10.49%
$
472
2.08%
1
Includes individual fixed
annuity products and the fixed investment options selected within the variable annuity products.
2
Includes universal life
products and the fixed investment options selected within the variable life products.
3
Includes group fixed annuity
products.
4
Includes
products with a stated minimum guaranteed crediting rate of 0%.
The Company attempts to mitigate this risk by managing the
maturity and interest-rate sensitivities of assets to be consistent with those of liabilities. In recent years, management has taken actions to address low interest rate environments and the resulting impact on interest spread margins, including
reducing commissions on fixed annuity sales,
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launching new products with new guaranteed
rates, discontinuing the sale of its annual reset fixed annuities and invoking contractual provisions that limit the amount of variable annuity deposits allocated to the guaranteed fixed option. In addition, the Company adheres to a strict
discipline of setting interest crediting rates on new business at levels believed to be adequate to provide returns consistent with management expectations.
A rising interest rate environment could also result in a
reduction of interest spread income or an increase in policyholder surrenders. Existing general account investments supporting annuity liabilities had a weighted average maturity of approximately nine years as of December 31, 2014. Therefore, a
change in portfolio yield will lag changes in market interest rates. This lag increases if the rate of prepayments of securities slows. To the extent the Company sets renewal rates based on current market rates, this will result in reduced interest
spreads. Alternatively, if the Company sets renewal crediting rates while attempting to maintain a desired spread from the portfolio yield, the rates offered by the Company may be less than new money rates offered by competitors. This difference
could result in an increase in surrender activity by policyholders. If unable to fund surrenders with cash flow from operations, the Company might need to sell assets, which likely would have declined in value due to the increase in interest rates.
The Company mitigates this risk by offering products that assess surrender charges and/or market value adjustments at the time of surrender, and by managing the maturity and interest-rate sensitivities of assets to approximate those of
liabilities.
The Company offers a variety of variable
annuity programs with guaranteed minimum balance or guaranteed withdrawal benefits, and options are utilized to economically hedge a portion of these products. See Equity Market Risk for further explanation.
Asset/Liability Management Strategies to Manage Interest Rate
Risk
The Company employs an asset/liability management
approach tailored to the specific requirements of each of its products. Each line of business has an investment policy based on its specific characteristics. The policy establishes asset maturity and duration, quality and other relevant
guidelines.
An underlying pool or pools of investments
support each general account line of business. These pools consist of whole assets purchased specifically for the underlying line of business. In general, assets placed in any given portfolio remain there until they mature (or are called), but
active management of specific securities and sectors may result in portfolio turnover or transfers among the various portfolios.
Investment strategies are executed by dedicated investment
professionals based on the investment policies established for the various pools. To assist them in this regard, they receive periodic projections of investment needs from each line's management team. Line of business management teams, investment
portfolio managers and finance professionals periodically evaluate how well assets purchased and the underlying portfolio match the underlying liabilities for each line. In addition, sophisticated Asset/Liability Management models are employed to
project the assets and liabilities over a wide range of interest rate scenarios to evaluate the efficacy of the strategy for a line of business.
Using this information, in conjunction with each line's
investment strategy, actual asset purchases or commitments are made. In addition, plans for future asset purchases are formulated when appropriate. This process is repeated frequently so that invested assets for each line match its investment needs
as closely as possible. The primary objectives are to ensure that each line's liabilities are invested in accordance with its investment strategy and that over or under investment is minimized.
As part of this process, the investment portfolio managers
provide each line's management team with forecasts of anticipated rates that the line's future investments are expected to produce. This information, in combination with yields attributable to the line's current investments and its investment
"rollovers," gives the line management team data to use in computing and declaring interest crediting rates for their lines of business.
There are two approaches to developing investment
policies:
•
For liabilities where cash
flows are not interest sensitive and the credited rate is fixed (e.g., immediate annuities), the Company attempts to manage risk with a combination cash matching/duration matching strategy. Duration is a measure of the sensitivity of price to
changes in interest rates. For a rate movement of 100 basis points, the fair value of liabilities with a duration of 5 years would change by approximately 5%. For this type of liability, the Company generally targets an asset/liability duration
mismatch of -0.25 to +0.50 years. In addition, the Company attempts to minimize asset and liability cash flow mismatches, especially over the first five years. However, the desired degree of cash matching is balanced against the cost of cash
matching.
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•
For liabilities where the
Company has the right to modify the credited rate and policyholders also have options, the Company's risk management process includes modeling both the assets and liabilities over multiple stochastic scenarios. The Company considers a range of
potential policyholder behavior as well as the specific liability crediting strategy. This analysis, combined with appropriate risk tolerances, drives the Company's investment policy.
Use of Derivatives to Manage Interest Rate Risk
See Note 7 to the audited consolidated
financial statements included in the F pages of this report for a discussion of the Company's use of derivatives to manage interest rate risk.
Characteristics of Interest Rate Sensitive Financial
Instruments
The tables below provide
information about the Company's financial instruments as of December 31, 2014 that are sensitive to changes in interest rates. Insurance contracts that subject the Company to significant mortality risk, including life insurance contracts and
life-contingent immediate annuities are not included in the table.
Estimated
 year of maturities/repayments
(in
 millions)
2015
2016
2017
2018
2019
There-
after
Total
2014
Fair
Value
2013
Fair
Value
Assets
Fixed
 maturity securities:
Corporate
 bonds:
Principal
$
891
$1,050
$1,389
$2,001
$2,700
$16,218
$24,249
$25,900
$23,379
Weighted average interest
rate
4.37%
4.68%
4.28%
4.96%
5.25%
4.71%
4.75%
Mortgage
 and other asset-backed securities:
Principal
$
4
$
-
$
21
$
32
$
27
$
6,451
$
6,535
$
6,706
$
6,346
Weighted average interest
rate
9.45%
-
5.28%
6.05%
5.28%
4.08%
4.10%
Other
 fixed maturity securities:
Principal
$
127
$
78
$
15
$
82
$
114
$
1,998
$
2,414
$
2,812
$
2,524
Weighted average interest
rate
5.55%
6.15%
7.62%
5.43%
6.58%
5.58%
5.65%
Mortgage
 loans:
Principal
$
456
$
504
$
440
$
265
$
357
$
5,274
$
7,296
$
7,616
$
6,481
Weighted average interest
rate
5.44%
5.84%
5.36%
4.71%
4.13%
4.55%
4.73%
Liabilities
Individual
 deferred fixed annuities:
Principal
$
870
$
767
$1,243
$
756
$
476
$
1,838
$
5,950
$
5,804
$
5,964
Weighted average crediting
rate
2.51%
2.54%
2.61%
2.65%
2.59%
2.66%
Group
 pension deferred fixed annuities:
Principal
$1,514
$1,329
$1,408
$1,267
$
910
$
8,263
$14,691
$13,372
$12,849
Weighted average crediting
rate
3.20%
3.16%
2.96%
2.71%
2.54%
2.36%
Funding
 agreements:
Principal
$
12
$
31
$
67
$
98
$
800
$
760
$
1,768
$
1,765
$
890
Weighted average crediting
rate
1.42%
1.46%
1.46%
1.61%
1.70%
2.40%
Immediate
 annuities:
Principal
$
182
$
140
$
104
$
76
$
55
$
147
$
704
$
801
$
733
Weighted average crediting
rate
5.20%
5.22%
5.26%
5.30%
5.35%
5.39%
Short-term
 debt:
Principal
$
660
$
-
$
-
$
-
$
-
$
-
$
660
$
660
$
278
Weighted average interest
rate
1.02%
-
-
-
-
-
1.02%
Long-term
 debt:
Principal
$
-
$
-
$
-
$
-
$
-
$
700
$
700
$
1,069
$
1,004
Weighted average interest
rate
-
-
-
-
-
7.67%
7.67%
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Estimated
 year of maturities/repayments
(in
 millions, except settlement prices)
2015
2016
2017
2018
2019
There-
after
Total
2014
Fair
Value
2013
Fair
Value
Deriviative
 Financial Instruments
Interest
 rate swaps:
Pay
 fixed/receive variable:
Notional
value
$1,263
$1,706
$
878
$1,201
$1,234
$25,220
$31,502
$(2,457)
$
878
Weighted average pay
rate
1.32%
1.69%
1.02%
1.91%
2.13%
3.15%
2.85%
Weighted average receive
rate
1
0.32%
0.28%
0.47%
0.29%
0.25%
0.30%
0.30%
Pay
 variable/receive fixed:
Notional
value
$1,985
$2,046
$
120
$1,291
$
485
$28,282
$34,209
$
2,457
($1,198)
Weighted average pay
rate
1
0.31%
0.26%
0.31%
0.27%
0.27%
0.30%
0.29%
Weighted average receive rate
1.39%
1.22%
3.59%
2.16%
2.58%
3.09%
2.84%
Pay
 fixed/receive fixed:
Notional
value
$
-
$
48
$
-
$
-
$
-
$
382
$
430
$
11
$
(18)
Weighted average pay
rate
-
4.73%
-
-
4.07%
4.14%
Weighted average receive
rate
-
6.16%
-
-
-
4.72%
4.88%
Credit
 default swaps purchased:
Notional
value
$
-
$
-
$
-
$
2
$
-
$
-
$
2
$
-
$
-
Total
 return swaps
2
:
Notional
value
$2,732
$
76
$
-
$
-
$
-
$
-
$
2,808
$
(41)
$
(46)
Embedded
 derivatives:
Notional
value
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
(264)
$1,005
Option
 contracts:
Long
 positions:
Contract amount/notional
value
$4,091
$1,176
$
546
$
14
$
163
$
-
$
5,990
$
411
$
343
Weighted average settlement
price
$
1
$1,577
$1,631
$1,588
$1,351
$
-
$
500
1
Variable rates are generally
based on 1, 3 or 6-month U.S. LIBOR and reflect the effective rate as of December 31, 2014.
2
Total return swaps are based
on the Europe, Australasia and Far East Index from Morgan Stanley Capital International (EAFE Index).
Additional information about the characteristics of the
financial instruments and assumptions underlying the data presented in the table on the preceding page are as follows:
Mortgage-backed securities and other asset-backed securities:
The year of maturity is determined based on the terms of the securities and the current estimated rate of prepayment of the underlying pools of mortgages or assets. The Company limits its exposure to prepayments by
purchasing less volatile types of mortgage-backed securities and asset-backed securities investments.
Corporate bonds and other fixed maturity securities and
mortgage loans:
The maturity year is that of the security or loan.
Individual deferred fixed annuities:
The maturity year is based on the expected date of policyholder withdrawal, taking into account actual experience, current interest rates and contract terms. Individual deferred fixed annuities are certain individual
annuity contracts, which are also subject to surrender charges calculated as a percentage of the deposits made and assessed at declining rates during the first seven years after a deposit is made. Individual deferred fixed annuities of $0.8 billion
of participating group annuity contracts in 2014
and 2013 were in contracts where the crediting rate is guaranteed for a set term. Individual deferred fixed annuity general account liabilities totaling $4.9
billion and $4.7 billion as of December 31, 2014 and 2013, respectively, were in contracts where the crediting rate is reset periodically with portions resetting in each calendar quarter, and $610 million that reset annually in 2014 compared to $627
million in 2013. Individual fixed annuity policy reserves of $1.9 billion in 2014 and $2.1 billion in 2013 were in contracts that adjust the crediting rate every five years. Individual deferred fixed annuity policy reserves of $358 million in 2014
were in contracts that adjust the crediting rate every three years compared to $406 million in 2013. The average crediting rate is calculated as the difference between the projected yield of the assets backing the liabilities and a targeted interest
spread. However, for certain individual deferred annuities the crediting rate is also adjusted to partially reflect current new money rates.
Group pension deferred fixed annuities:
The maturity year is based on the expected date of policyholder withdrawal, taking into account actual experience, current interest rates and contract terms. Included were group annuity contracts representing $14.9
billion and $14.3 billion of general account liabilities as of December 31, 2014 and 2013, respectively, which are generally subject to market value adjustment upon surrender and which also may be subject to surrender
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charges. Of the total group deferred fixed
annuity liabilities, $13.4 billion ($12.8 billion in 2013) were in contracts where the crediting rate is reset quarterly, $864 million ($761 million in 2013) were in contracts that adjust the crediting rate on an annual basis with portions resetting
in each calendar quarter, and $664 million ($710 million in 2013) were in contracts where the crediting rate is reset annually on January 1.
Funding agreements:
Funding
agreements were issued in conjunction with the MTN program where the crediting rate either was fixed for the term of the contract or were variable based on an underlying index. The MTN program concluded in the fourth quarter of 2012 and as of
December 31, 2014, the Company had no outstanding MTNs. Beginning in 2012, funding agreements have been issued to the FHLB. Such funding agreements (commonly referred to as advances) have interest and principal repayment terms which cannot be
altered by the FHLB for the term of such advances. The maturity year is based upon the principal repayment schedule of these advances.
Immediate annuities:
Non-life
contingent contracts in payout status where the Company has guaranteed periodic payments, typically monthly, are included. The maturity year is based on the term of the contract.
Short-term debt and long-term debt:
The maturity year is the stated maturity date of the obligation.
Derivative financial instruments:
The maturity year is based on the terms of the related contract. Interest rate swaps include cross-currency interest rate swaps, which are used to reduce the Company's existing asset and liability foreign currency
exposure. Cross-currency interest rate swaps in place against each foreign currency obligation hedge the Company against adverse currency movements with respect to both period interest payments and principal repayment. Underlying details by currency
therefore have been omitted. Variable swap rates and settlement prices reflect rates and prices in effect as of December 31, 2014.
Foreign Currency Risk
As part of its regular investing activities, the Company may
purchase foreign currency denominated investments. These investments and the associated income expose the Company to volatility associated with movements in foreign exchange rates. In an effort to mitigate this risk, the Company uses cross-currency
swaps. As foreign exchange rates change, the increase or decrease in the cash flows of the derivative instrument generally offsets the changes in the functional-currency equivalent cash flows of the hedged item.
Credit Risk
The Company enters into credit derivative contracts, primarily
credit default swaps, under which the Company buys and sells credit default protection on specific corporate creditors. These derivatives allow the Company to manage or modify its credit risk profile in general or its credit exposure to specific
creditors.
Equity Market Risk
Asset fees calculated as a percentage of
separate account assets are a significant source of revenue to the Company. As of December 31, 2014 and 2013, approximately 84% and 81%, respectively, of separate account assets were invested in equity mutual funds. Gains and losses in the equity
markets result in corresponding increases and decreases in the Company's separate account assets and asset fee revenue. In addition, a decrease in separate account assets may decrease the Company's expectations of future profit margins due to a
decrease in asset fee revenue and/or an increase in guaranteed contract claims, which also may require the Company to accelerate amortization of DAC.
The Company's long-term assumptions for net separate account
investment performance consist of assumed gross returns of 10.5% for equity funds and 5.0% for fixed funds. This analysis assumes no other factors change and that an unlocking of DAC assumptions would not be required. However, as it does each
quarter, the Company would evaluate its DAC balance and underlying assumptions to determine the need for unlocking. The Company can provide no assurance that the experience of flat equity market returns would not result in changes to other factors
affecting profitability, including the possibility of unlocking of DAC assumptions.
Many of the Company's individual variable annuity contracts
offer GMDB features. A GMDB generally provides a benefit if the annuitant dies and the contract value is less than a specified amount, which may be based on premiums paid less amounts withdrawn or contract value on a specified anniversary date. A
decline in the stock market causing the contract value to fall below this specified amount, which varies from contract to contract based on the date the contract was entered into as well as the GMDB feature elected, will increase the net amount at
risk, which is the GMDB in excess of the contract value. This could result in additional GMDB claims.
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To mitigate this risk, the Company
implemented a GMDB economic hedging program for certain new and existing business. Prior to implementation of the GMDB hedging program in 2000, the Company managed this risk primarily by entering into reinsurance arrangements. The GMDB economic
hedging program is designed to offset changes in the economic value of the designated GMDB. Currently the program shorts equity index futures, which provides an offset to changes in the value of the designated obligation. The futures are not
designated as hedges and, therefore, hedge accounting is not applied. The Company's economic hedges and the GMDB policyholder liability are not perfectly offset. Therefore, the hedging activity is likely to lead to earnings volatility that would not
exist if the GMDB policyholder liability was also on an economic basis. As of December 31, 2014 and 2013, the Company's net amount at risk was $313 million and $250 million, respectively. As of December 31, 2014 and 2013, the Company's reserve for
GMDB claims was $76 million and $55 million, respectively.
The Company issues variable annuity contracts through its
separate accounts, for which investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder. The Company also provides various forms of guarantees to benefit the related contractholders.
The Company provides five primary guarantee types of variable annuity contracts: (1) GMDB; (2) GMAB; (3) GLWB; (4) a hybrid guarantee with GMAB and GLWB; and (5) GMIB. See Note 4 to the audited consolidated financial statements included in the F
pages of this report for further information regarding these guarantees.
Equity market and interest rate risk management:
These variable annuity products and related obligations expose the Company to various market risks, predominately interest rate and equity risk. Adverse changes in the equity markets or interest rate movements expose the
Company to significant volatility. To mitigate these risks and hedge the guaranteed benefit obligations, the Company enters into a variety of derivatives including interest rate swaps, equity index futures, options and total return
swaps.
Inflation
The rate of inflation did not have a
material effect on the revenues or operating results of the Company during 2014, 2013 or 2012.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Directors of the
Registrant
Name
Age
Date
 Service Began
John
 L. Carter
52
February
 2013
Timothy
 G. Frommeyer
50
January
 2009
Eric
 S. Henderson
52
March
 2012
Stephen
 S. Rasmussen
62
January
 2009
Mark
 R. Thresher
58
January
 2009
Kirt
 A. Walker
51
December
 2009
For biographical information
on Messrs. Carter, Frommeyer, Henderson, Rasmussen, Thresher, and Walker, please see the information provided below in "Executive Officers of the Registrant."
Executive
Officers of the Registrant
Name
Age
Position
 with NLIC
Stephen
 S. Rasmussen
62
NMIC
 Chief Executive Officer
1
Kirt
 A. Walker
51
President
 and Chief Operating Officer
Patricia
 R. Hatler
60
Executive
 Vice President–Chief Legal and Governance Officer
Matthew
 Jauchius
45
Executive
 Vice President – Chief Marketing Officer
Michael
 C. Keller
55
Executive
 Vice President–Chief Information Officer
Gale
 V. King
58
Executive
 Vice President–Chief Human Resources Officer
Mark
 R. Thresher
58
Executive
 Vice President
John
 L. Carter
52
Senior
 Vice President–Nationwide Retirement Plans
Timothy
 G. Frommeyer
50
Senior
 Vice President–Chief Financial Officer
David
 L. Giertz
51
Senior
 Vice President-Nationwide Financial Distribution and Sales
Peter
 A. Golato
61
Senior
 Vice President–Nationwide Financial Network
Harry
 H. Hallowell
54
Senior
 Vice President–Chief Investment Officer
Eric
 S. Henderson
52
Senior
 Vice President–Individual Products & Solutions
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Name
Age
Position
 with NLIC
Steven
 C. Power
57
Senior
 Vice President–Nationwide Financial
Michael
 S. Spangler
48
Senior
 Vice President–Investment Management Group
1
NMIC is our ultimate parent
company; however, Mr. Rasmussen does not serve as NLIC's chief executive officer.
Business experience for each of the individuals listed in the
previous table is set forth below:
Stephen S. Rasmussen
has been the Nationwide enterprise chief executive officer since February 2009. He previously served as the President and Chief Operating Officer of NMIC and Executive Vice President of NLIC from September 2003 to
February 2009. He has served as a director of NLIC since January 2009.
Kirt A. Walker
has been
President and Chief Operating Officer and a director of NLIC since December 2009. Previously, Mr. Walker was President and Chief Operating Officer–Nationwide Insurance of NMIC since March 2009. Prior to that time, he served as President,
Nationwide Insurance Exclusive Operations of NMIC from November 2008 to March 2009; President, Nationwide Insurance Eastern Operations of NMIC from March 2006 to October 2008; and President, Allied Insurance of NMIC from September 2003 to February
2006. Mr. Walker has been with Nationwide since 1986.
Patricia R. Hatler
has been
Executive Vice President–Chief Legal and Governance Officer of NLIC since December 2004. Previously, Ms. Hatler served as Executive Vice President and General Counsel from October 2004 to December 2004.
Matthew Jauchius
has been
Executive Vice President–Chief Marketing Officer since August 2012. Prior to that time, he was Senior Vice President–Chief Marketing and Strategy Officer from December 2010 to August 2012 and Senior Vice President-Chief Strategy Officer,
OCEO Administration from April 2009 to December 2010 and served as Vice President–
PCIO Strategy for NMIC from April 2007 to April 2009, and Vice
President–Strategic Planning for NMIC from June 2006 to April 2007. Prior to that time, Mr. Jauchius was Associate Principal with McKinsey & Company from September 1998 to June 2006.
Michael C. Keller
has been
Executive Vice President–Chief Information Officer of NLIC since August 2001. Mr. Keller has been Executive Vice President–Chief Information Officer of several other Nationwide companies since June 2001.
Gale V. King
has been Executive Vice President–Chief Human Resources Officer of NLIC since May 2009. Previously, she was Senior Vice President–Property and Casualty Human Resources of NMIC from October 2003 to February 2009. Ms. King has been with
Nationwide since 1983.
Mark R. Thresher
has been Executive Vice President–Finance of NLIC since December 2009 and has served as a director of NLIC since January 2009. Prior to that time, he was President and Chief Operating Officer of NLIC from May 2004
to December 2009.
John L. Carter
has been Senior Vice President–Nationwide Retirement Plans of NLIC since April 2013 and President and Chief Operating Officer of Nationwide Retirement Solutions, Inc. since July 2013. He has served as a director of
NLIC since February 2013. Prior to that time, Mr. Carter served as Senior Vice President of other Nationwide companies from November 2005 to April 2013.
Timothy G. Frommeyer
has been
Senior Vice President–Chief Financial Officer of NLIC and several other Nationwide companies since November 2005, and has served as a director of NLIC since January of 2009.
David L. Giertz
has been Senior Vice President-NF Distribution and Sales of NLIC since 4/3/2013. Previously, Mr. Giertz served as Vice President-Sales, FI/WH from 2009 to 2013, and Vice President-NF Sales (Bank Channel) from 2004 to
2009. Mr. Giertz also serves as Director, President and Senior Vice President for several other Nationwide companies.
Peter A. Golato
has been
Senior Vice President–Nationwide Financial Network of NLIC and several other Nationwide companies since September 2011. He served as a director of NLIC from January 2009 to March 2012. Prior to that time, he served as Senior Vice
President–Individual Protection Business Head of NLIC and several other Nationwide companies from May 2004 to September 2011.
Harry H. Hallowell
has been
Senior Vice President–Chief Investment Officer of NLIC since January 2010. Previously, Mr. Hallowell served as Senior Vice President and Treasurer of NLIC and several other Nationwide companies from January 2006 through December
2009.
Eric S. Henderson
has been Senior Vice President–Individual Products & Solutions of NLIC and several other companies within Nationwide since September 2011. He has served as a director of NLIC since March 2012. Previously, Mr.
Henderson served as Senior Vice President–Individual Investments Business Head from August 2007 to September 2011 and as Vice President and Chief Financial Officer–Individual Investments from August 2004 to August 2007.
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Steven C. Power
has been
Senior Vice President–Nationwide Financial since January 2010. Previously, Mr. Power was President and CEO of NatCity Investments, Inc., a wholly owned subsidiary of National City Corporation, from July 2004 to April 2009.
Michael S. Spangler
has been
Senior Vice President–Investment Management Group since May 2008. Previously, Mr. Spangler was Managing Director at Morgan Stanley from May 2004 to June 2008.
EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
Introduction
Our mission is to create value for customers and businesses
(our "stakeholders") by protecting what is important to them, helping them build a secure financial future, and providing the best personalized customer experience through competitively priced, high quality products. We motivate our executives to
achieve these goals, in part, by delivering direct rewards, including base salary, short-term and long-term incentives and other benefits and perquisites. Consistent with our pay for performance philosophy, we focus our compensation programs
substantially upon sustained financial performance as well as overall customer satisfaction. Compensation levels will increase or decrease to the extent we meet our pre-established performance expectations. The discussion below is intended to show
how:
•
our financial planning
process leads to financial objectives;
•
we translate financial and
individual objectives into incentive opportunities;
•
we consider individual
performance and use other non-financial factors to create flexibility in our compensation programs; and
•
we think
about both the level and form of these rewards, which we believe helps us to attract and retain the executive talent that is necessary to create stakeholder value.
Compensation Process and Roles
NMIC Human Resources Committee
Our board relies on the human resources committee of the NMIC
board of directors for compensation decisions. The NMIC human resources committee's primary purpose is to discharge the responsibilities of the NMIC board of directors as to the compensation of our executive officers and the executive officers of
our parent company, subsidiaries and affiliates. Other duties of the NMIC human resources committee include carrying out the board of directors' oversight responsibilities by reviewing our human resources, compensation and benefit practices.
The operation of the NMIC human resources committee is
outlined in a charter that has been adopted by the NMIC board of directors. The charter provides that the committee's duties include, among other things:
•
establishment of an overall
compensation philosophy;
•
oversight and review of
human resources programs for directors, executive officers and associates;
•
responsibility for approval
of salaries, incentive compensation plans and awards under such plans for certain executive officers, including those named in the "Summary Compensation Table for 2014," whom we refer to as the "named executive officers;" and
•
oversight
of people and culture risk position and risk management practices, including risk policy, strategy, tolerance and control. Key areas of risk oversight focus include key person risk and succession planning, employment practices, workplace safety,
organizational culture and compensation design.
The NMIC human resources committee met seven times during
2014.
Compensation Consultants
The NMIC human resources committee has the
sole authority to retain and terminate any consultant assisting in the evaluation of compensation, and has the power to retain independent counsel, auditors or others to assist in the conduct of any investigation into matters within the NMIC human
resources committee's scope of responsibilities. The NMIC human resources committee has retained Pearl Meyer & Partners, or "PM&P," to be its compensation consultant. PM&P consultants attend NMIC human resources committee meetings to
provide information and perspective on competitive compensation practices and to raise issues management and/or the NMIC human resources committee should address. With committee concurrence, management, at times, directed PM&P to perform
additional services in support of committee agendas, which included data, analysis and any supporting background material needed for the discussions.
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PM&P also recommended pay program and compensation changes. Upon request
of the NMIC human resources committee, members of management also attended these meetings in order to provide information and answer questions regarding our strategic objectives, financial performance and legal and regulatory issues that impact the
committee's functions. When the NMIC human resources committee met in executive session, certain members of management and PM&P attended as needed.
Role of Executives in Establishing the Compensation of our Named
Executive Officers
The NMIC human
resources committee has the primary authority to establish the compensation, including compensation targets, payments and individual performance contributions, for our named executive officers and administers all of our executive compensation
arrangements and policies. Messrs. Rasmussen and Walker assist the NMIC human resources committee by providing recommendations regarding the compensation of our named executive officers other than themselves and Mr. Frommeyer. In addition, Mr.
Rasmussen assists the NMIC human resources committee by providing recommendations regarding the compensation of Mr. Walker and Mark R. Thresher, the NMIC Chief Financial Officer, assists the committee by providing recommendations regarding the
compensation of Mr. Frommeyer.
The NMIC human resources
committee and the entire NMIC board of directors exercise their discretion to modify or accept these recommendations.
Mr. Rasmussen routinely attends a portion of the meetings of
the NMIC human resources committee. However, the NMIC human resources committee often meets in executive session without him or other members of management when discussing compensation matters and on other occasions as determined by the NMIC human
resources committee.
Compensation Objectives and
Philosophy
The NMIC human resources committee believes
the compensation programs for executive officers should support our business strategies and operate within a market competitive framework. In addition, the NMIC human resources committee determines compensation based on our overall financial
results, as well as individual and group contributions that help build value for stakeholders. Our compensation programs are designed to drive desired behaviors in our executive officers using a mix of compensation elements to satisfy the personal
and financial needs of our current and future workforce given existing and forecasted business conditions and cost constraints. Our board of directors is committed to this compensation philosophy. The objectives of our compensation programs are
to:
•
align the interests of
executives with those of stakeholders;
•
maintain a strong link
between pay and performance;
•
ensure an
appropriate percentage of executive compensation is contingent upon both our performance and each executive officer's individual performance; and
•
attract, retain and motivate
top-caliber executive officers with compensation that is competitive in level and form.
The following table illustrates our primary compensation
components and the intended purpose, including links to our objectives:
Compensation
 element
Description
Purpose
Base
 Salary
Cash
 compensation that is a fixed component of total compensation.
• attract
 and retain top-caliber executive talent
• recognize executive officers' skills, competencies, experience and job responsibilities
• reward individual performance against pre-established objectives
Short-term
 Incentive
Cash
 payments awarded after the completion of a one-year performance period.
• reward
 executives for achieving objective annual performance goals
• recognize performance on individual objectives relative to the performance of other executive officers
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Compensation
 element
Description
Purpose
Long-term
 Incentive
Cash
 awards based on performance over multiple years and subject to forfeiture.
• reward
 executives for sustained long-term performance
• retain and motivate executives to ensure business stability and success
• recognize the achievement of performance objectives that drive long-term success and
financial stability and create value for our customers
• create a link between Nationwide Financial Services, Inc., or "NFS," our direct parent company, and NMIC to better facilitate a shared business model
Executive
 Benefits and Perquisites
Includes
 pension plans, deferred compensation plans and personal perquisites.
• attract
 and retain top-caliber executive talent
• provide income after retirement and enable saving of income for retirement
Organizational Structure with Respect to Compensation
Decisions
Our named executive officers
provide services to other Nationwide companies in addition to NLIC. Decisions regarding the total compensation levels of our named executive officers are made by the NMIC human resources committee based on their roles within NFS and NMIC, as
applicable. The NMIC human resources committee does not consider the roles of named executive officers with respect to NLIC in determining total compensation. Instead, we paid an allocable portion of total compensation for our named executive
officers, which was determined pursuant to a cost-sharing agreement among several Nationwide companies. The remainder of their compensation was allocated to and paid by other Nationwide companies according to the terms of the cost-sharing
agreement.
Amounts we disclose in this prospectus
reflect only compensation allocated to and paid by NLIC; however, performance is measured at the NFS and/or NMIC level, which includes NLIC performance, when determining compensation for our named executive officers. As a result, metrics and results
discussed herein will refer to NFS or NMIC metrics and results as applicable. The methods we use for the allocation of compensation paid to our named executive officers varies by officer and the type of compensation and is discussed in more detail
in "2014 Compensation Programs Design and Implementation."
Benchmarking and Compensation Target-Setting Process
The NMIC human resources committee uses competitive market
data as an important tool to aid in making decisions on compensation. The NMIC human resources committee compared our compensation practices to those of companies that compete with NMIC for customers, capital and/or executive officers, and are
similar to NMIC or NFS in size, scope, and/or business focus. Our market data sources included:
•
companies in three
comparator groups that the NMIC human resources committee identified in order to provide a holistic view of the competitive market, consisting of:
❍
twenty-three companies in
the insurance and broader financial services industry ("Industry Comparator Group");
❍
a general
industry comparator group consisting of forty-three public companies above and below NMIC's Fortune 500 ranking (#100) based on NMIC's statutory revenue; and
❍
a general industry comparator
group consisting of forty-nine public companies above and below NMIC's Fortune 500 ranking (#130) based on NMIC's GAAP revenue;
•
companies that participate
in commercially available financial services industry and general industry compensation surveys.
The insurance companies in the Industry Comparator Group
are:
•
Met Life, Inc.
•
Prudential Financial, Inc.
•
Hartford Financial Services
•
Lincoln
National Corp.
•
Allstate Corp
•
Principal Financial Group,
Inc.
•
Travelers Cos, Inc.
•
Genworth
Financial, Inc.
•
AFLAC, Inc.
•
CNA Financial Corp
•
Unum Group
•
Chubb
Corp
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•
Progressive Corp-Ohio
The banks in the Industry Comparator Group are:
•
PNC Financial Services
Group, Inc.
•
Sun Trust Banks, Inc.
•
State
Street Corp
•
BB&T Corp
•
American Express Co.
•
Fifth Third Bancorp
•
KeyCorp
•
Northern Trust Corp
•
Comerica, Inc.
•
Huntington Bancshares,
 Inc.
The surveys used to determine the financial
services industry competitive market data are:
•
Diversified Insurance Study
of Executive Compensation, Towers Watson, 2013
•
Global Financial Services
Studies Executive Database, Towers Watson, 2013
•
US Property and Casualty
Insurance Compensation Survey Report, Mercer HR Consulting, 2013
•
General
Industry compensation surveys from Towers Watson, Mercer and Watson Wyatt, 2013
The surveys cover companies comparable in size to
NMIC and we did not rely on any one company or any single survey source. We used market data specific to the financial services industry for the named executive officers because the NMIC human resources committee believed it was appropriate to
compare our positions to others in our market for talent that require similar skills, knowledge and experience. We used general industry data for positions requiring broad skills, such as the NMIC Chief Executive Officer and our President and Chief
Operating Officer, to supplement the industry-specific view. Of the sources available to us, including proxy statements of other companies and commercially available surveys, we used sources we believe have the best matches for our positions. We
generally target pay at the market median because we believe such targets are necessary to compete for talent; however, when necessary to attract or retain exceptional talent or a unique skill set, we may target total compensation or an individual
element of compensation above the median. Annually, we engage in a talent planning process to:
•
anticipate talent demands
and identify implications;
•
identify critical roles;
•
conduct talent assessments;
and
•
identify
successors for critical roles.
The data gathered during this
process helps us identify what we refer to as "benchmark plus" executives or roles, for which we will manage total compensation up to the 75th percentile of the market data, primarily by increasing the short-term and long-term incentive targets as a
percent of salary. These positions may be those that lead a new business initiative or lead a significant business or enterprise initiative that directly impacts core strategic initiatives identified in the overall Nationwide business strategy. We
might also manage compensation above the market median if justified by the size of a business segment compared to the competitive market, as is the case for Mr. Carter with respect to his role overseeing our retirement plans business segment.
Actual pay is expected to vary based on actual
results compared to goals. Executive officers can earn top-quartile pay for results exceeding the business plan and expectations with respect to individual performance objectives, and they can earn bottom-quartile pay for results not meeting
acceptable performance standards.
The
following table identifies the target compensation levels, a comparison of our target total compensation to the respective market target compensation level, and the rationale for providing total compensation at those levels.
Name
Targeted
 market positioning
Current
 positioning of
incumbent executive
Rationale
Kirt A. Walker, President and Chief Operating
Officer
Market
 median
Near
 median
This
 is a competitive level of compensation relative to the market data.
Timothy G. Frommeyer, Senior Vice President—Chief Financial
Officer
Market
 median
Near
 median
This
 is a competitive level of compensation relative to the market data.
Stephen S. Rasmussen, NMIC Chief Executive
Officer
Market
 median
Near
 median
This
 is a competitive level of compensation relative to the market data.
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Name
Targeted
 market positioning
Current
 positioning of
incumbent executive
Rationale
John L. Carter, President and Chief Operating Officer, Nationwide Retirement
Plans
Up
 to the 75
th
percentile
Near
 the 75
th
percentile
This
 is a competitive level of compensation relative to the market data based on the size of our retirement plans business in the industry compared to our peers in the market surveys. Nationwide Retirement Plans is one of the largest retirement plans
providers.
Eric S. Henderson, Senior Vice President—Individual Products and
Solutions
Market
 Median
Between
 the 25
th
percentile and median
Mr.
 Henderson assumed an expanded role near the end of 2011 and we continue to manage compensation levels to a more competitive market position over time.
The NMIC human resources committee determined the total compensation levels
for the named executive officers, which are benchmarked to the competitive external market, as well as the individual elements that are distributed among base salary and short-term and long-term incentives. Annually, we review and may adjust targets
for company and individual performance in order to recognize competitive market compensation and performance in determining the final compensation we deliver to executive officers. We have different review procedures depending on the level and role
of the executive officer. For top-tier executive officers, including Messrs. Rasmussen and Walker, PM&P prepared an analysis of competitive market data that the NMIC human resources committee used in making compensation decisions. This provided
an impartial frame of reference for these executive officers. For all other named executive officers, our internal compensation department analyzed the competitive market data and provided the information to senior management and the NMIC human
resources committee for review and use in decision making. The following is an overview of these review procedures:
Kirt A. Walker
PM&P prepared a market analysis for Mr. Walker, our
President and Chief Operating Officer, which included a summary of the 25th, median and 75th percentile market data and covered the following compensation elements: base salary, target short-term incentive opportunity and target total cash
compensation, and target long-term incentive opportunity and target total direct compensation. The analysis took into account the size and complexity of his job, as measured by assets managed, compared to the market data. Other factors PM&P
evaluated when determining individual competitiveness included:
•
the degree to which the
market data consist of sources of executive talent for NMIC;
•
the comparability of Mr.
Walker's job responsibilities to benchmark job responsibilities;
•
Mr. Walker's experience,
tenure and performance; and
•
the
responsibilities of Mr. Walker's position, internal equity and strategic importance to NMIC.
PM&P also presented an aggregate
analysis of the competitiveness of all of Mr. Rasmussen's direct reports, of which Mr. Walker is one, with respect to the market median, and the NMIC human resources committee considered this analysis in addition to Mr. Rasmussen's recommendation in
approving Mr. Walker's base salary and 2014 target incentive levels.
Timothy G. Frommeyer, John L. Carter and Eric S.
Henderson
The NMIC human resources committee considered
a number of inputs with regard to Messrs. Frommeyer, Carter and Henderson, including:
•
their current compensation
levels and relative market competitive pay levels;
•
the identification of Mr.
Carter as occupying a benchmark plus role as well as summaries of his accomplishments and Messrs. Frommeyer's and Henderson's accomplishments in 2013;
•
recommendations from Mr.
Walker, for Messrs. Carter and Henderson, and from NMIC's Chief Financial Officer for Mr. Frommeyer, in considering 2014 base salary adjustments and incentive target levels; and
•
approval
of Mr. Carter's sales incentive plan for 2014.
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Stephen S. Rasmussen
For Mr. Rasmussen, the NMIC Chief Executive
Officer, PM&P summarized the 25th, median and 75th percentile market data for the position and explained any adjustments necessary to attain appropriately competitive compensation for each key element. For 2014, the NMIC human resources
committee's final decision on pay targets was subject to the NMIC board of directors' assessment of Mr. Rasmussen's 2013 performance. PM&P provided recommendations for Mr. Rasmussen's 2014 compensation program and met with the NMIC human
resources committee, which determined a recommendation for Mr. Rasmussen's compensation targets. The NMIC human resources committee's recommendation was reviewed and approved by the full NMIC board of directors.
Pay Mix
We compensate executive officers through a
mix of base salary, short-term incentives, long-term incentives, benefit plans, perquisites and deferred compensation plans. The plans and the target opportunities for base salary and short-term and long-term incentives are reviewed annually by the
NMIC human resources committee to ensure total compensation and the mix of pay elements are competitive and changes reflect both the competitive market data and company needs. This ensures we continue to retain talent in key areas and provides a
framework for recruiting new talent.
We determine an
appropriate mix of pay elements by using the market data trends as a guideline. However, in practice, we may adjust individual components above or below the mix represented in the market data while maintaining the recommended target total
compensation range. Some of the reasons we may deviate from the mix of elements represented in market data include:
•
recruiting needs based on
compensation received by a candidate in previous positions;
•
year-to-year variation in
the market data, indicating the market data may be volatile;
•
differences between the
specific responsibilities of our executives' positions and the positions represented in the market data; and
•
a desire
to change the alignment of our incentives between short-term and long-term goals for particular positions.
For 2014, the above analysis resulted in the
following allocated target compensation levels for the named executive officers:
Name
1
Base
 salary
(percentage of
target total
compensation)
1
Target
 short-term
incentive as a
percent of base
salary (percentage
of target total
compensation)
Target
 long- term
incentive
(percentage of
target total
compensation)
Target
 total
compensation
2
Percentage
 of
target total
compensation
attributed to
target incentives
Kirt A.
Walker
$451,639
80%
$500,175
$1,245,917
68%
(32%)
(25%)
(43%)
Timothy G.
Frommeyer
$227,432
65%
$
62,199
$
327,401
63%
(37%)
(24%)
(39%)
Stephen S.
Rasmussen
$171,050
165%
$995,000
$1,454,998
88%
(12%)
(20%)
(68%)
John L.
Carter
$163,484
105%
$300,105
$
785,702
67%
(33%)
(35%)
(32%)
Eric S.
Henderson
$319,388
70%
$227,480
$
721,929
62%
(38%)
(27%)
(35%)
1
Dollar amounts shown
represent the amounts allocated to us under the cost-sharing agreement. Percentages are calculated based on the total compensation elements, including unallocated amounts that are not shown in the table.
2
Target
total compensation equals base salary plus target short-term incentives plus target long-term incentives
The elements summarized in the table above illustrate the
following points relative to our executive compensation philosophy:
•
Consistent with market
practices, a relatively small percentage of the target total compensation is provided as base salary, as the NMIC human resources committee believes compensation should be delivered to our named executive officers based on performance.
•
A substantial percentage of
the target total compensation is comprised of variable incentives, delivered through a mix of short-term incentive programs, which are more focused on short-term financial results, and long-term
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incentive programs, which
are focused on achievements over multiple years and most closely align with building sustained value for our stakeholders. The NMIC Chief Executive Officer's pay mix is more heavily weighted toward long-term incentives, consistent with his role.
The table below identifies the
percentage change in base salary, total target cash (which includes base salary and target short-term incentives), long-term incentive targets and target total direct compensation for the named executive officers in 2014 as compared to 2013. The
table also sets forth the reasons for the changes. Actual base salary and incentive payments paid by us will also be influenced by changes in the allocation percentages, as discussed below in "2014 Compensation Programs Design and
Implementation."
Name
Base
salary
change
%
1
Total
target annual cash
change %
Long-term
incentive
target
change %
Target
 total
direct
compensation
change %
Rationale
Kirt
 A. Walker
5.0%
5.0%
7.1%
5.9%
Mr.
 Walker's performance was outstanding compared to his 2013 pre-established objectives. Adjustments to base salary and long-term incentive targets positioned his target total direct compensation near the median of the market data for his position.
Timothy
 G. Frommeyer
4.3%
4.3%
0.0%
2.6%
Mr.
 Frommeyer's performance was outstanding compared to his 2013 pre-established objectives with respect to his leadership in organizing his team around the operating plan and managing significant product and underwriting challenges. His team's
engagement increased significantly via his focus on talent management and development, and his contributions to keeping NFS on track from all financial and risk management aspects and directing an innovative effort to create a structure that
resulted in significant capital relief for NFS contributed to the NFS business success. Mr. Frommeyer is viewed as critical talent and a successor candidate.
Stephen
 S. Rasmussen
0.0%
0.0%
2.5%
1.7%
Mr.
 Rasmussen's pay increase was a market adjustment to intended positioning. The increase was delivered entirely in a long-term incentive target increase, enhancing the pay for performance relationship.
John
 L. Carter
2.2%
4.8%
5.9%
5.1%
Mr.
 Carter's performance was outstanding compared to his 2013 pre-established objectives with respect to exceeding his sales goal, improving associate engagement, improving lapse rates and accomplishing several important conversions.
Eric
 S. Henderson
8.7%
8.7%
10.1%
9.2%
Mr.
 Henderson's performance was outstanding compared to his 2013 pre-established objectives with respect to significantly exceeding plan in several product lines and improving associate engagement.
1
Percentages are calculated
based on the total compensation elements, including amounts that are not allocated to us.
2014 Compensation Programs Design and
Implementation
We discuss the following items in this
section:
•
what we intend to accomplish
with our compensation programs;
•
how we determine the amount
for each element of compensation; and
•
the
impact of performance on compensation.
The principal components of 2014
compensation for our named executive officers are base salary and short-term and long-term incentives. Each component of compensation serves a different purpose, as discussed in "Compensation Objectives and Philosophy."
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Base Salary
Our overall pay philosophy is to establish
base salaries that are generally at the median of the companies represented in the market data. We typically base a departure from the median on factors such as incumbent experience and industry or functional expertise, scope of job responsibilities
as compared to similar positions in the market, special retention needs and executive performance. In determining adjustments to the named executive officers' salaries for 2014, the NMIC human resources committee evaluated the following:
•
salaries for comparable
positions in the marketplace, taking scope of responsibility into account;
•
NMIC and NFS's recent
financial performance, both overall and with respect to key financial indicators;
•
the annual performance
evaluation of each executive officer compared to previously established objectives;
•
internal pay equity; and
•
management recommendations.
Mr. Rasmussen's base salary was
allocated to NFS using NFS's operating revenue as a percentage of NMIC's total operating revenue. We allocated 100% of the base salary for all other named executive officers to NFS since these named executive officers primarily support this business
unit. Salary was further allocated to us (as compared to other NMIC entities) as follows:
•
Allocation of base salaries
for Messrs. Frommeyer and Rasmussen reflect a blend of factors used to allocate ongoing NFS operating expenses, using forecasted revenue and headcount projections as applicable. The revenue and headcount ratios are applied against specific operating
expenses for allocation to legal entity, statutory and managed products and expense group.
•
Base salary for Mr. Walker
was allocated using policy in-force counts from various NFS business segments.
•
Base salary allocation for
for Mr. Carter was determined by operational support of retirement plans business unit segments based on time spent managing and directing activities for each segment.
•
Base salary for Mr.
Henderson was allocated using policy in-force counts from the Nationwide Financial Individual Products and Solutions business segment.
Base salary rates for the named executive officers increased
by a weighted average of 3.0% in 2014. The NMIC human resources committee established unallocated base salary rates consistent with the philosophy, objectives and factors described above. The overall salary increase percentage reflects the impact of
competitive market data and individual and company performance and enables us to maintain competitive salaries. Actual base salaries paid by us, which are reported in "Summary Compensation Table for 2014," also reflect changes in the allocation
percentages from 2013 to 2014, for our named executive officers.
Short-term Incentive: Performance Incentive Plan and Sales
Incentive Plan
In 2014, we used
short-term incentive plans to provide a portion of at-risk pay to our named executive officers, which promoted our pay-for-performance philosophy. These plans provide participants with direct financial rewards in the form of short-term incentives
the participants earn subject to the achievement of key financial and strategic objectives. Plan metrics vary based on each executive officer's role and are discussed in more detail below. The short-term incentive design fulfills the following
objectives:
•
emphasizes a one-company
culture while recognizing the need to maintain some business unit focus;
•
focuses on the Nationwide
customer experience; and
•
aligns
incentive plans between associates and management.
In 2014, the NMIC human resources committee
set specific company performance measures; goals for threshold, plan and outstanding results; and weightings for each performance measure under each short-term incentive plan in which the named executive officers participate. The NMIC human
resources committee approved a target short-term incentive award opportunity as a percentage of base salary for each participant and approved all payments made under these plans. We base our target incentive award opportunities on our executive
officers' responsibilities, their value to us and the competitive market data for similar positions. The use of these market data is discussed in "Compensation Objectives and Philosophy."
We allocated short-term incentives for Messrs. Frommeyer and
Rasmussen to NFS based on NFS's operating revenue as a percentage of NMIC's total operating revenue. We allocated 100% of the short-term incentives for the other named executive officers to NFS. Short-term incentives for our named executives were
further allocated to us (as compared to
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other NMIC entities) to reflect a blend of
factors used to allocate ongoing NFS operating expenses, using forecasted revenue and headcount projections as applicable. The revenue and headcount ratios are applied against specific operating expenses for allocation to legal entity, statutory and
managed products, and expense group.
Performance
Incentive Plan (PIP)
We make annual payments to certain
executive officers under the Performance Incentive Plan, or "PIP." In 2014, all of our named executive officers participated in the PIP. Mr. Carter also participated in the Sales Incentive Plan, or "SIP," for reasons discussed below. Under the PIP,
the participant is assigned a target incentive amount representing a percentage of the participant's year-end base salary. The actual amount participants receive under the PIP will be a percentage of the target incentive depending on the achievement
of specific business and individual performance objectives.
Our performance measures under the PIP are based on a broad
series of key financial, business and strategic goals, as well as individual performance objectives. The specific measures vary by executive officer depending on individual positions and roles. We determine the short-term incentive performance
metrics and weights after an analysis of NFS's financial and strategic goals and those of Nationwide, such as growth, profitability, capital efficiency and strategic objectives. When determining performance levels for the PIP payout scale, the NMIC
human resources committee considered the probability of attaining performance levels, historical performance and payouts, industry and competitor outlooks, run rate trends and plan, and business mix and performance volatility. The maximum award is
200% of the target amount before individual adjustments.
The NMIC human resources committee
authorizes the NMIC Chief Executive Officer to use his discretion to adjust calculated incentive payments, other than his own, by up to plus or minus 25%, if the calculated performance score does not reflect actual accomplishments. Factors the NMIC
Chief Executive Officer may consider include, but are not limited to:
•
changes in industry and
competitive conditions that occur after target setting;
•
execution and achievement of
key performance indicators that have a longer-term financial impact;
•
performance on key
performance indicators, such as customer experience, associate engagement and agency ratings, that may not be reflected in the financial results; and
•
achievement
 of financial results consistent with Nationwide's values.
Proposed adjustments greater than plus or
minus 25% require the NMIC human resources committee's approval. For 2014, the NMIC Chief Executive Officer did not exercise any discretion to adjust performance scores that ultimately determined the incentive pool.
The NMIC human resources committee may also adjust the actual
performance results for one-time or unusual financial items that have impacted actual performance but which management believes should not be included to penalize or receive credit for incentive purposes. Examples may include, but are not limited
to:
•
Gains and losses from the
acquisition or divestiture of businesses and/or operations and related deferred costs;
•
Non-recurring, unanticipated
tax adjustments; and
•
Errors
and/or omissions during target calculations.
We define the financial goals used in the tables below as
follows:
•
We define Consolidated Net
Operating Income, or "CNOI," as a non-GAAP financial measure which highlights NMIC's results from continuing operations. CNOI excludes the impact of realized gains and losses on sales of investments and hedging instruments, certain hedged items,
other than temporary impairments, discontinued operations and extraordinary items, net of tax.
•
We define Scottsdale net
operating income as a non-GAAP financial measure which highlights Scottsdale's results from continuing operations.
•
We define the Enterprise
expense metric as a blend of the Property and Casualty adjusted statutory expense ratio, comprised of the loss adjustment expense ratio plus the underwriting expense ratio net of incentives and contingent suits, with the NFS adjusted general
operating expenses, comprised of general operating expenses net of incentives and contingent suits.
•
We
determine direct written premium, or "DWP," growth by measuring the increase or decrease in the current performance year-ending business unit direct written premium over the prior performance year-ending business unit direct written premium as a
percentage.
•
We define the non-weather
loss ratio as net calendar year incurred losses from non-weather peril, excluding contingent suits, divided by earned insurance premiums in the current year.
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•
We calculate NFS Return on
Capital by dividing NFS net operating income for the year, excluding interest income on excess capital and adding back debt expense, by the total NFS GAAP equity plus long-term debt at the beginning of the year, excluding excess capital.
•
We define NFS Sales as new
and renewal production premiums and deposits, previously referred to as "sales," that are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in
accordance with GAAP, including sales as it relates to non-insurance companies. Management believes that the presentation of new and renewal production premiums and deposits enhances the understanding of the Company's business and helps depict
longer-term trends that may not be apparent in the results of operations due to differences between the timing of sales and revenue recognition.
Life insurance premiums determined on a
GAAP basis are significantly different than statutory premiums and deposits. On a GAAP basis, premiums for traditional life insurance products are generally recognized as revenue when due. For certain annuities with life contingencies, any excess of
gross premium over the net premium is deferred and recognized with the amount of expected future benefits. In addition, many life insurance and annuity products involve an initial deposit or a series of deposits from customers. These deposits are
accounted for as such on a GAAP basis and therefore are not reflected in the GAAP income statement. On a statutory basis, life insurance premiums are recognized as revenue over the premium paying period of the related policies. Annuity
considerations are recognized as revenue when received. Health insurance premiums are earned ratably over the terms of the related insurance and reinsurance contracts or policies.
As calculated and
analyzed by management, statutory premiums and deposits on individual and group annuities and life insurance products calculated in accordance with accounting practices prescribed or permitted by regulatory authorities and deposits on
administration-only group retirement plans and the advisory services program are adjusted as described below to arrive at new and renewal production premiums and deposits.
We report new and renewal production
premiums and deposits as net of internal replacements, which we believe provides a more meaningful disclosure of production in a given period. In addition, our definition of new and renewal production premiums and deposits excludes asset transfers
associated with large case BOLI and large case retirement plan acquisitions; FHLB funding agreements; and deposits into Nationwide employee and agent benefit plans. Although these products contribute to asset and earnings growth, their production
flows potentially can mask trends in the underlying business and thus do not provide meaningful comparisons and analyses.
For 2014, the NMIC human resources committee approved the
following objectives and weights under the PIP for Messrs. Walker, Frommeyer, Rasmussen and Henderson. The target amounts for the PIP vary by each executive officer. The final incentive payments were adjusted with approval of the NMIC human
resources committee as described in "Determination of the Final Short-term Incentive Payments."
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2014 PIP Metrics and Performance for Messrs.
Walker, Frommeyer, Rasmussen and Henderson
Weights
 (%)
Metric
 ($ in millions)
Messrs.
 Walker
and Henderson
Mr.
Frommeyer
Mr.
Rasmussen
2014
 established
business goals
2014
 incentive
performance
results
3
Enterprise
 Consolidated Net Operating Income
1
45.00
45.00
40.95
$
1,388.0
$
1,201.4
Customer
 Enthusiasm Index
2
20.00
20.00
18.20
8.59
8.59
Enterprise Expense Metric (P&C statutory expense
ratio)
3.50
3.50
3.19
41.67%
40.88%
Enterprise Expense Metric (NFS adjusted general operating
expenses)
1.50
1.50
1.37
$
952.5
$
964.8
NI
 DWP Growth
3.75
3.41
2.54%
3.07%
Change
 in number of NI relationships per household
2.50
2.28
0.0
141,713
NI
 Non-weather Loss ratio
1.25
1.14
50.57%
51.20%
Allied
 DWP Growth
1.52
1.39
5.60%
5.12%
Allied Non-weather Loss
Ratio
1.52
1.39
47.72%
50.85%
Titan Non-weather Loss
Ratio
0.28
0.25
59.85%
61.25%
Titan
 DWP Growth
0.28
0.25
0.30%
-3.14%
Agribusiness Non-weather Loss
Ratio
0.42
0.38
46.44%
52.33%
Agribusiness
 DWP Growth
0.42
0.38
9.11%
11.42%
Harleysville Non-weather Loss
Ratio
0.42
0.38
47.60%
52.96%
Harleysville
 DWP Growth
0.42
0.38
6.72%
10.38%
Scottsdale Net Operating
Income
1.49
1.36
$
186.5
$
92.5
Scottsdale DWP
Growth
0.74
0.68
14.66%
9.55%
NFS
 Return on Capital
15.00
7.50
6.83
10.26%
12.53%
NFS
 Sales
15.00
7.50
6.83
$20,995.4
$20,778.6
Strategic Nonfinancial
Objectives
9.00
Discussed
 below
in "Determination
of the Final
Short-term Incentive
Payments"
175%
 of target amount
1
For 2014, performance on CNOI
of $350.0 must be achieved in order for payment to be earned on the enterprise expense, customer enthusiasm and business unit metrics.
2
Mean
customer satisfaction on a scale of one to ten as determined by an external consultant.
3
These amounts are unaudited.
Sales Incentive
Plan (SIP)
Mr. Carter also participated in the SIP in
2014. The majority of his total incentive target consists of the same metrics under which we measure other members of NFS's management team under the PIP. These metrics represented 80% of Mr. Carter's total target incentive. In addition to these
metrics, 20% of his total incentive target focuses on sales results for the Retirement Plans business segment. Mr. Carter participated in the SIP in addition to the PIP because the SIP includes an emphasis on results that he directly influences.
These metrics are consistent with prevalent practices for similar roles in the financial services industry, and also maintains alignment with NFS's overall financial goals. For 2014, the maximum award opportunity under the plan was 200% of the
target amount. The NMIC Chief Executive Officer had the discretion to adjust scores for individual sales metrics by plus or minus 25%, subject to approval by the NMIC human resources committee of the final SIP payment. This discretion was not
exercised in 2014. When determining the performance levels for the payout under the SIP, the planning process included consideration of the current plan year to new plan year rates of sales growth. We used a different incentive scale for private and
public retirement plan sales to reflect key differences between them, such as:
•
the competitive environment
of each market segment;
•
the outlook for sales growth
in each market segment;
•
the level
of maturity of each market segment;
•
historical rates of sales
growth; and
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•
our expectation as to the
difficulty of achieving the planned rates of sales growth in each market segment.
The following table sets forth the short-term incentive
performance metrics and weights for the PIP and SIP for Mr. Carter.
2014 PIP and SIP Metrics and Performance for Mr. Carter
Performance
 Criteria
($ in millions)
Weights
 (%)
2014
 established
goals
2014
 incentive
performance
results
3
Retirement
 Plans Group (SIP):
Private Sector 1
st
year
6.00
$
1,667.0
$
1,339.5
Private Sector
Recurring
4.00
$
3,858.0
$
3,896.8
Public Sector 1
st
year
5.00
$
1,136.6
$
1,255.4
Public Sector
Recurring
5.00
$
3,230.9
$
3,109.4
NFS
 and Enterprise Metrics (PIP)
Enterprise Consolidated Net Operating
Income
1
36.00
$
1,388.0
$
1,201.4
Customer Enthusiasm Index (Mean Satisfaction with
Company)
2
16.00
8.59
8.59
Enterprise Expense Metric (P&C statutory expense
ratio)
2.80
41.67%
40.88%
Enterprise Expense Metric (NFS adjusted general operating
expenses)
1.20
$
952.5
$
964.8
NFS Return on
Capital
12.00
10.26%
12.53%
NFS
Sales
12.00
$20,995.4
$20,778.6
1
For 2014, performance on CNOI
of $350.0 must be achieved in order for payment to be earned on the enterprise expense, customer enthusiasm, NFS return on capital, and NFS sales metrics.
2
Mean customer satisfaction on
a scale of one to ten as determined by an external consultant.
3
These
amounts are unaudited.
Determination
of the Final Short-term Incentive Payments
To determine the 2014 short-term incentive
compensation payments for our named executive officers, the NMIC human resources committee assessed each executive officer's performance under the PIP or SIP, as applicable, considering the metrics in the tables above, in addition to the executive
officer's overall performance, our overall financial performance and management's assessment of performance on individual objectives. Additionally, in assessing final performance for the PIP, the NMIC human resources committee reviewed actual
performance relative to established goals and considered the following items: earnings quality, the level of catastrophic losses, industry results, achievement of strategic performance metrics, and business conditions and capital stewardship.
Consistent with prior years' treatment, the NMIC human
resources committee exercised its discretion to exclude the impact of asbestos and environmental reserve strengthening for the determination of CNOI for incentive purposes.
The actual amounts Messrs. Walker and Rasmussen receive under
the PIP, and the amount Mr. Carter receives for the sales metrics under the SIP, will be a percentage of the target incentive depending solely on the achievement of the approved metrics and management's assessment of individual performance measures.
For Messrs. Frommeyer, Carter and Henderson, incentive payments are made from a pool calculated by adding the total of all participants' incentive target amounts within an organizational unit. For Mr. Carter, 80% of his target amount, the prorated
amount attributed to his NFS and enterprise metrics, contributed to this pool. The pool is multiplied by the overall weighted performance score for the year and further adjusted, if applicable, at the discretion of the NMIC Chief Executive Officer
and/or the NMIC human resources committee. This establishes the maximum amount we will pay to the participants in each pool, whether shared among participants or paid to a single individual. Senior management then reviews each of the participants
within this pool to evaluate personal performance and individual contributions relative to the other participants in the pool. To the extent management discretion is used to reduce or eliminate the award of a participant in the pool, the amount of
incentive not awarded to that participant is included in the total amount available in the pool to be distributed to the other participants. For 2014, the NMIC Chief Executive Officer did not exercise his discretion to adjust payments under the
PIP.
For Mr. Rasmussen, 9% of his weighted objectives
consisted of non-financial objectives, which were reviewed and discussed by the NMIC human resources committee and approved by the NMIC board. These non-financial objectives focused on the following three categories:
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•
Delivering results through
highly engaged associates, with regard to creating an engaging work experience by improving leadership effectiveness, ensuring a diverse pipeline for senior leadership talent, and ensuring qualified successors are identified for key management
roles;
•
Enabling execution of
Nationwide's strategy with accountability, with regard to execution of strategic business line initiatives, leveraging innovation as a competitive advantage, and making progress on executing critical business transformation programs; and
•
The accountability and
transparency of Nationwide's governance, with regard to continuing board engagement with senior line and functional leaders, adhering to and reinforcing Nationwide's code of conduct, maintaining effective relationships with sponsor and community
organizations, and maintaining quality communications with associates and key stakeholders.
Each independent director on the NMIC board of directors
completed a formal evaluation and gave Mr. Rasmussen a rating on a five-point scale for each objective and an overall rating using the same scale. PM&P summarized the results and met with the chair of the NMIC human resources committee to review
the evaluation. PM&P then met with the full NMIC human resources committee to discuss the ratings and assist the committee to arrive at an overall score to be recommended to and approved by the NMIC board of directors.
The resulting cash payouts for our named
executive officers, which are shown in column (g) of the "Summary Compensation Table for 2014," are as follows:
Name
Comparison
 of short-term
incentive payment to target
Summary
 of rationale
Kirt
 A. Walker
106%
 of target
Performance
 compared to the PIP objectives
Timothy
 G. Frommeyer
100%
 of target
Performance
 compared to the PIP objectives
Stephen
 S. Rasmussen
107%
 of target
Performance
 compared to the PIP objectives
John
 L. Carter
106%
 of target
Performance
 compared to the PIP objectives
82%
 of target
Performance
 compared to the SIP objectives
Eric
 S. Henderson
106%
 of target
Performance
 compared to the PIP objectives
Long-Term Incentives
In 2014, the NMIC human resources committee
administered the Nationwide Long-Term Performance Plan, or "LTPP," to award long-term incentives to the named executive officers. Long-term incentive compensation constitutes a significant portion of an executive officer's total compensation
package, consistent with our philosophy of emphasizing pay that is conditional or contingent on our performance. The LTPP is intended to accomplish the following objectives:
•
reward sustained long-term
value creation with appropriate consideration of risk capacity, tolerance and limits;
•
deliver market-competitive
target compensation consistent with organizational performance; and
•
retain
and motivate executives to ensure business stability and success.
We established long-term incentive targets
in 2014 based on a review of relevant market data and/or comparisons to other business segment leaders, as we described in "Benchmarking and Compensation Target-Setting Process." The goals used in the LTPP are as follows:
•
Operating revenue growth,
which is determined by comparing current performance year-ending operating revenue, net of interest credited, to prior performance year-ending operating revenue, net of interest credited. Operating revenue is a non-GAAP financial measure. Operating
revenue excludes realized gains and losses on sales of investments and hedging instruments, discontinued operations and extraordinary items.
•
Capital
strength, which is determined by combining our internal economic capital calculation (50%) and Standard & Poor's capital calculation (50%).
Performance on each metric is compared to a
matrix where the x-axis is capital strength and the y-axis is operating revenue growth. A 1.0 score is awarded when operating revenue growth, net of interest credited, equals plan and capital strength equals a AA+ rating. The score is determined at
the intersection of the operating revenue growth and capital strength performance on the matrix at the end of each year in the performance period based on the matrix approved for that year. The final score at the end of the three-year period will be
the average of the three annual scores. Potential payments range from zero to two and one-half times the target amount.For 2014, the Human Resources Committee approved the following objectives and weights under the LTPP. The target amounts for the
LTPP vary by executive officer.
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2014 LTPP Metrics and Performance
Metric
Weight
2014
 established business goals
2014
 incentive performance results
Operating
 Revenue Growth
(net of interest credited)
50%
4.5%
6.4%
Internal
 Economic Capital
25%
AA+
AAA
S&P
 Capital
25%
AA+
AA+
At its meeting on February 10,
2015, the NMIC human resources committee approved a final score of 1.55, which will be used for the first year of the 2014-2016 performance period, the second year of the 2013-2015 performance period, and the third year of the 2012-2014 performance
period. The final average score for the 2012-2014 performance period was 1.77, which was multiplied by the target amounts for all of our named executive officers.
The 2014 grants under the LTPP for all of our named executive
officers are reported in "Grants of Plan-Based Awards."
We allocated long-term incentives for Messrs. Frommeyer and
Rasmussen to NFS based on NFS's operating revenue as a percentage of NMIC's total operating revenue. We allocated 100% of the long-term incentives for the other named executive officers to NFS. Long-term incentives for our named executives were
further allocated to us (as compared to other NMIC entities) to reflect a blend of factors used to allocate ongoing NFS operating expenses, using forecasted revenue and headcount projections as applicable. The revenue and headcount ratios are
applied against specific operating expenses for allocation to legal entity, statutory and managed products, and expense group.
Clawback Policy
If we are required to prepare a material financial accounting
restatement or to materially adjust the results of a metric used for funding incentive compensation plans, we may recover from any current or former person we determine to be an elected officer any amount in excess of what should have been paid, up
to and including:
•
The amount of any short-term
incentive award under the PIP, SIP or LTPP to the extent the restatement impacts the amount awarded;
•
The total amount of awards
granted to the extent the restatement impacts the amounts that would have been granted, with such awards valued in good faith in the discretion of the NMIC board of directors, and;
•
Any other
amount determined by the NMIC board of directors, in its sole discretion, to have been improperly awarded.
Recovery may, at the NMIC board of directors' discretion, be
in the form of an adjustment to future incentive awards, as applicable.
Personal Benefits and Perquisites
We provide to our executive officers certain
perquisites and other personal benefits, including health and welfare benefits, which are the same for all associates, and pension and savings plans, deferred compensation plans and personal perquisites, all of which we believe are consistent with
market competitive practices. For more information about these personal benefits and perquisites, see columns (h) and (i) of the "Summary Compensation Table for 2014."
Termination Benefits and Payments
It is NMIC's practice to provide severance
agreements to the NMIC Chief Executive Officer and a limited number of senior executive officers, including most of the NMIC Chief Executive Officer's direct reports. Of our named executive officers, we have entered into severance agreements with
Messrs. Rasmussen, Walker and Carter. We believe these agreements are a standard industry practice for these positions and are necessary to attract and retain executive officers at this level. The agreements provide certain protections to the
executive officer with regard to compensation and benefits. In exchange for those protections, the executive officer agrees to keep our information confidential, and agrees not to solicit our employees or customers and not to compete with Nationwide
for a specified period of time following termination. We provide additional information with respect to post-termination benefits provided under these severance agreements in "Potential Payments Upon Termination or Change of Control."
Certain termination-of-employment events may trigger
post-termination payments and benefits in the event that a severance agreement does not apply to the payments and benefits. Those events include retirement, severance, termination for cause, death, disability and voluntary termination. The details
of the benefits and payments made upon termination are also described in "Potential Payments Upon Termination or Change of Control."
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Impact of Regulatory Requirements on Compensation
There were no regulatory requirements that influenced our
compensation arrangements.
Conclusion
As discussed in "Compensation Objectives and
Philosophy," we design our compensation programs to be competitive, to attract and retain top talent and to drive our performance, with the ultimate goal of increasing stakeholder and customer value. To attain these objectives, we compare ourselves
to other companies that are similar to us in setting target pay opportunities and financial business goals. In 2014, the objectives for incentive purposes were established to reward value-creating performance and we awarded a substantial percentage
of total compensation opportunity to our named executive officers in the form of pay-at-risk, which increases or decreases according to the level of our performance. Our business results produced payments under our short-term and long-term incentive
plans for our named executive officers, rewarding our executive officers with reasonable pay relative to our 2014 performance, consistent with our pay-for-performance philosophy.
Compensation Committee Interlocks and Insider
Participation
Our board of directors does not have a
compensation committee. All named executive officers' compensation decisions were approved by the NMIC Board of Directors or human resources committee. None of our executive officers served on the board of directors or compensation committee of
another entity for which any member of the NMIC board of directors or compensation committee served as an executive officer.
Summary Compensation Table for 2014
The information set forth in the "Summary Compensation Table
for 2014" and other related compensation tables reflect the allocation of compensation-related costs to us with respect to our named executive officers.
Name
 and principal position
(a)
Year
(b)
Salary
(c)
Bonus
(d)
Non-equity
incentive plan
compensation
(g)
Change
 in
pension value
and non-
qualified
deferred
compensation
earnings
2
(h)
All
 other
compensation
(i)
Total
(j)
Kirt
 A. Walker, President
& Chief Operating Officer
2014
$446,676
$
–
$1,019,997
1
$515,422
$30,736
3
$2,012,831
2013
$416,580
$
–
$1,027,108
$100,306
$25,968
$1,747,283
2012
$410,656
$
–
$1,063,275
$
80,995
$21,412
$1,576,338
Timothy
 G. Frommeyer,
Senior Vice President–
Chief Financial Officer
2014
$225,275
$
–
$
147,863
1
$562,763
$14,924
4
$
950,825
2013
$225,617
$
–
$
154,175
$
–
$13,678
$
393,470
2012
$243,476
$904
$
150,818
$117,016
$11,817
$
524,031
Stephen
 S. Rasmussen,
NMIC Chief Executive
Officer
2014
$171,050
$
–
$1,914,818
1
$565,786
$28,316
5
$2,679,970
2013
$180,510
$
–
$1,932,088
$277,627
$27,686
$2,417,911
2012
$186,308
$
–
$1,888,241
$135,458
$27,445
$2,237,452
John
 L. Carter, President, Nationwide Retirement Plans
2014
$162,664
$
–
$
764,501
1
$236,280
$13,373
6
$1,176,818
2013
$138,302
$
–
$
612,275
$
–
$20,520
$
771,097
2012
$204,421
$
–
$
846,731
$
81,656
$15,029
$1,147,837
Eric
 S. Henderson, Senior Vice President–Individual Products and Solutions
2014
$313,491
$
–
$
551,139
1
$822,191
$62,814
7
$1,749,635
2013
$290,512
$
–
$
548,148
$
–
$15,828
$
854,488
2012
$308,953
$
–
$
549,058
$267,105
$16,176
$1,141,292
1
Represents the amount
determined under the PIP for Messrs. Walker, Frommeyer, Rasmussen and Henderson, and under the PIP and SIP for Mr. Carter, that was paid in 2015 for the 2014 performance year; and the amount earned in 2014 under the LTPP, and allocated to us
pursuant to the cost-sharing agreement, as follows: Mr. Walker—$311,749 (PIP) and $708,248 (LTPP); Mr. Frommeyer—$37,770 (PIP) and $110,093 (LTPP); Mr. Rasmussen—$ 308,649 (PIP) and $1,606,169 (LTPP); Mr. Carter—$325,978 (PIP
and SIP) and $438,523 (LTPP); and Mr. Henderson—$185,565 (PIP) and $365,574 (LTPP).
2
Represents the change in
pension value for all named executive officers. There were no above-market earnings on deferred compensation.
3
Includes tax gross-ups
totaling $1,217 for amenities received at company events and the contribution we made on behalf of Mr. Walker in the amount of $23,128 under the Nationwide Supplemental Defined Contribution Plan. Aggregate value of perquisites and personal benefits
is less than $10,000.
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4
Includes a tax gross-up in
the amount of $1,607 for the company-paid cost of an executive physical. Aggregate value of perquisites and personal benefits is less than $10,000.
5
Includes the value of
amenities received at company events, and tax gross-ups totaling $279 for such amenities, the actual incremental cost of Mr. Rasmussen's personal use of the company plane, the cost of Mr. Rasmussen's personal use of the company's suite, the
contribution we made on behalf of Mr. Rasmussen in the amount of $16,798 under the Nationwide Supplemental Defined Contribution Plan and the company-paid portion for parking expenses and automotive service in the executive parking garage.
6
Includes a
tax gross-up of $61 for amenities received at a company event and a tax gross-up in the amount of $917 for the company-paid cost of an executive physical. Aggregate value of perquisites and personal benefits is less than $10,000.
7
Includes the value of
amenities received at a corporate event in the amount of $25,669, tax gross-ups totaling $12,844 for such amenities, the company-paid cost of an executive physical and a tax gross-up in the amount of $1,193 for the physical, the contribution we made
on behalf of Mr. Henderson in the amount of $12,397 under the Nationwide Supplemental Defined Contribution Plan and the company-paid portion for parking expenses and automotive service in the executive parking garage.
Grants of Plan-Based Awards in 2014
Estimated
 future payouts under non-equity incentive plan
awards
1
Name
(a)
Grant
 date
(b)
Threshold
(c)
Target
(d)
Maximum
(e)
Kirt
 A. Walker
2/11/2014
2,3
$147,051
$294,103
$
735,257
2/11/2014
4
$
0
$500,175
$1,250,438
Timothy
 G. Frommeyer
2/11/2014
2,3,5
$
18,885
$
37,770
n/a
2/11/2014
4
$
0
$
62,199
$
155,499
Stephen
 S. Rasmussen
2/11/2014
2,3
$144,474
$288,948
$
722,370
2/11/2014
4
$
0
$995,000
$2,487,500
John
 L. Carter
2/11/2014
2,3
$161,056
$322,113
$
644,225
2/11/2014
4
$
0
$300,105
$
750,263
Eric
 S. Henderson
2/11/2014
2,3,5
$
87,531
$175,061
n/a
2/11/2014
4
$
0
$227,480
$
568,699
1
Values are the amounts
allocated to us pursuant to the cost-sharing agreement.
2
We
calculated thresholds for certain metrics other than CNOI separately after a $350.0 million performance level was achieved on CNOI. Actual payment may be less than the amount shown.
3
Represents a PIP, or for Mr.
Carter, a PIP and SIP, award.
4
Represents an LTPP award
using operating revenue growth and capital strength as metrics.
5
Maximum
award amount is 200% of the sum of the awards for participants in the same pool.
Short-term Incentive Compensation
On February 11, 2014, we granted short-term
incentive award opportunities to our named executive officers. The amounts of these earned 2014 short-term award opportunities are reflected in the "Summary Compensation Table for 2014" in column (g).
The NMIC human resources committee uses short-term incentive
plans and assesses individual overall performance, company financial performance and other goals, and distributes awards from the incentive pool pursuant to the PIP, or in the case of Mr. Carter, the SIP.
The NMIC Chief Executive Officer may adjust payments under the
PIP or SIP by up to plus or minus 25% subject to approval of the final payment by the NMIC human resources committee. Additionally, the NMIC human resources committee may adjust the actual performance results for one-time or unusual financial items
that have impacted actual performance but which management believes they should not include to penalize or receive credit for incentive purposes.
In 2014, goals under the PIP were met at 100% to 107% of the
target amount. The goals under the SIP were met at 82% of the target amount. We discuss this in more detail in "2014 Compensation Programs Design and Implementation."
Long-term Incentive Compensation
On February 11, 2014, we granted long-term
incentive target opportunities to all of our named executive officers.
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The NMIC human resources committee granted
target opportunities based on operating revenue growth and capital strength, to be measured at the end of a three-year period. Performance on each metric is compared to a matrix where the x-axis is capital strength and the y-axis is operating
revenue growth. A final score is determined at the end of each year in the performance period based on the matrix approved for that year, and the final score at the end of the three-year period will be the average of the three annual scores. At
their meeting on February 10, 2015, the NMIC human resources committee approved a score for the last year of the 2012-2014 performance period of 1.55.
Pension Benefits for 2014
Name
(a)
Plan
 name
(b)
Number
 of
years credited
service
(c)
Present
 value
of accumulated
benefit
1
(d)
Payments
during last
fiscal year
(e)
Stephen
 S. Rasmussen
Nationwide
 Retirement Plan
16.0
$
55,629
$–
Nationwide
 Supplemental Retirement Plan
16.0
$1,087,580
$–
Kirt
 A. Walker
Nationwide
 Retirement Plan
16.0
$
153,840
$–
Nationwide
 Supplemental Retirement Plan
16.0
$
683,237
$–
Timothy
 G. Frommeyer
Nationwide
 Retirement Plan
27.3
$
705,518
$–
Nationwide
 Supplemental Retirement Plan
27.3
$
970,236
$–
John
 L. Carter
Nationwide
 Retirement Plan
8.2
$
84,924
$–
Nationwide
 Supplemental Retirement Plan
8.2
$
545,971
$–
Eric
 S. Henderson
Nationwide
 Retirement Plan
27.8
$
968,406
$–
Nationwide
 Supplemental Retirement Plan
27.8
$1,214,652
$–
1
These amounts are unaudited.
The "Pension
Benefits for 2014" table reports the years of credited service and the present value of accrued benefits under the Nationwide Retirement Plan, or "NRP," and the Nationwide Supplemental Retirement Plan, or "SRP," as of December 31, 2014. We discuss
these plans in more detail below. The reported values are the present value of accrued benefits with benefit commencement occurring at normal retirement age, which is age sixty-five, payable as a life annuity. Optional payment forms are available
with reduced payments. A full single lump sum payment option is not available.
Credited Service
The credited service reported in the
"Pension Benefits for 2014" table represents complete years of credited service under the NRP and SRP; however, the NRP and the SRP provide for crediting of service in different ways. The NRP provides one month of credited service for each month a
participant works, beginning with the participant's hire date. The SRP credits service based on the date an individual first becomes a participant. For details regarding how the SRP credits service, see the "Supplemental Defined Benefit Plan"
section below. We provide no additional credited service under the NRP and the SRP to the named executive officers.
Present Value of Accumulated Benefits
The reported present values of accumulated
benefits, which are payable as a life annuity, are based upon the benefit earned from service and compensation as of December 31, 2014. The present values assume the participant survives to, and commences his or her benefit at, the earliest age at
which unreduced benefits are payable, which is age sixty-five.
We base the present value determinations on the measurement
date, discount rate, and postretirement mortality in accordance with FASB ASC 715, Compensation-Retirement Benefits. For the December 31, 2014, and 2013 valuations, the discount rates used under this guidance were 4.05% and 4.95%, respectively.
There is no mortality discount prior to age sixty-five in the values reported above. We also used the Pension Protection Act Mortality Table.
Pension plan compensation includes base salary and certain
management incentives. We allocate benefit values based on the compensation reported in the "Summary Compensation Table for 2014," and reflect the arrangement under the cost sharing agreement. For Messrs. Rasmussen, Frommeyer, Carter, Henderson, and
Walker, the pension benefit values reflect the cost allocated to us.
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Qualified and Supplemental Pension Plans
Nationwide Retirement Plan
Nationwide maintains a qualified defined benefit plan called
the Nationwide Retirement Plan, or the "NRP." In general, the named executive officers and other participants in the NRP will receive an annual retirement benefit under the NRP equal to the greater of the benefit calculated under the final average
pay formula, if applicable, or the account balance formula. We describe these formulae below. Any participant, including a named executive officer, who we hired on or after January 1, 2002, will receive an annual retirement benefit under the NRP
based solely on the account balance formula. Participants become fully vested in the NRP after the completion of three years of service. The accrued benefit is payable as a life annuity. Optional payment forms are available, however, with reduced
payments. A full, single lump sum payment option is not available.
The NRP allows a participant the option of receiving his or
her benefit at any age, provided that he or she is vested when he or she leaves Nationwide. If a participant terminates his or her employment with Nationwide before age sixty-five, and decides to receive benefits before age sixty-five, the
participant will receive an actuarially reduced monthly benefit amount to reflect the longer payout period due to early distribution. Prior to January 1, 2010, benefits for vested participants who we hired before January 1, 2002, and who terminated
employment after age fifty-five, were eligible for a subsidized early retirement benefit. The subsidized early retirement benefit is reduced 1% per year from age sixty-five to age sixty-two and 5% per year from age sixty-two to age fifty-five.
Effective January 1, 2010, the NRP was amended to eliminate
the subsidized early retirement benefit for those employees who were hired before January 1, 2002. If the age requirements are met for these individuals, the NRP benefit upon termination of employment will be the greatest of the four following
calculations: (i) the Final Average Pay (FAP) formula without the subsidized early retirement factor; (ii) the account balance formula at the time of termination of employment; (iii) the FAP formula benefit as of December 31, 2009, with the
subsidized early retirement factor; or (iv) the account balance formula as of December 31, 2009.
Mr. Rasmussen is eligible for the subsidized
early retirement benefits. Although we hired Messrs. Frommeyer, Henderson, and Walker before January 1, 2002, they have not met the age requirement to be eligible for subsidized early retirement benefits. As a result, they are only eligible for
actuarially reduced benefits upon termination. We hired Mr. Carter after January 1, 2002, and he is eligible only for an actuarially reduced benefit upon termination.
The NRP provides a pre-retirement death benefit payable to a
participant's spouse. The NRP also provides for the funding of retiree medical benefits under Section 401(h) of the Internal Revenue Code.
The Final Average Pay Formula (FAP)
We compute the FAP formula benefit as follows:
•
1.25% of the participant's
final average compensation, as defined below, multiplied by the number of years of service, up to a maximum of thirty-five years subject to the limitations set forth in the Internal Revenue Code; plus
•
0.50% of
the participant's final average compensation in excess of Social Security covered compensation, as defined below, multiplied by the number of years of service, up to a maximum of thirty-five years and subject to the limitations set forth in the
Internal Revenue Code.
For services
rendered prior to January 1, 1996, final average compensation is equal to the average of the highest three consecutive covered compensation amounts of the participant in the participant's last ten years of service. For services rendered on January
1, 1996, or later, final average compensation is equal to the average of the highest five consecutive covered compensation amounts of the participant in the participant's last ten years of service. The NRP defines covered compensation to mean all
wages reported on a Form W-2 Wage and Tax Statement from any Nationwide company, plus compensation deferred under Sections 125, 132(f)(4) and 401(k) of the Internal Revenue Code and excluding:
•
severance pay and other
amounts following the later of: (i) the pay period that includes the participant's date of termination, or (ii) the pay period in which the participant's date of termination is posted to Nationwide's payroll system;
•
a lump-sum payment for
vacation days made upon termination of employment or pursuant to an election by the participant;
•
imputed income, executive
officer perquisites and benefits paid under any long-term performance or equity plan;
•
income
imputed to any participant as a result of the provisions of health or other benefits to members of the participant's household;
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•
any payment made to a
participant to offset the tax cost of other amounts Nationwide paid that are included in the participant's income for federal tax purposes;
•
any payment of deferred
compensation made prior to the participant's severance date;
•
expense reimbursement or
expense allowances including reimbursement for relocation expenses;
•
retention payments made on
or after January 1, 2002;
•
all gross-up payments,
including the related compensation payment, made on or after January 1, 2002; and
•
compensation
 earned following the date on which a participant's employment status changes from eligible to ineligible and during the period he or she is ineligible.
Covered compensation is subject to Internal Revenue Code
limits and, for purposes of determining final average compensation, is calculated on a calendar-year basis.
Social Security covered compensation means the average of the
Social Security wage bases in effect during the thirty-five-year period ending with the last day of the year that the participant attains Social Security retirement age. The portion of a participant's benefit attributable to years of service with
certain Nationwide companies credited prior to 1996 is also subject to post-retirement increases following the commencement of benefits or the participant's attainment of age sixty-five, whichever is later.
Account Balance Formula
For employees hired (or rehired) before
January 1, 2002, benefits are the greater of the final average pay formula determination or the account balance formula, described below. We use the account balance formula to determine the retirement benefit under the NRP for all employees hired or
rehired on or after January 1, 2002. The notional account under the account balance formula is comprised of the following components:
•
Opening Balance Amount
: We determined the accrued benefit under the FAP formula as of December 31, 2001, and converted this accrued benefit into a lump sum that reflected the current value of that benefit; plus
•
Pay Credits
: We add amounts to the account every pay period based on the participant's years of service and compensation. The pay credits range from 3% of pay if the participant has up to thirty-five months of service, plus 3% of
pay over the Social Security wage base for the year in question, to 7% of pay for those with over twenty-two years of service, plus 4% of pay over the Social Security wage base for the year in question; plus
•
Interest
Credits
: We add interest amounts to the account on a biweekly basis based on the thirty-year United States Treasury bill rate in effect from the second month preceding the current quarter. The minimum interest rate
is 3.25%.
Effective January
1, 2010, participants eligible for the FAP formula are not eligible to receive pay credits under the account balance formula after December 31, 2009; however, such participants do continue to receive interest credits on their account balance
benefit.
Supplemental Defined Benefit Plan
NMIC maintains the Nationwide Supplemental Retirement Plan, or
"SRP," an unfunded, nonqualified supplemental defined benefit plan. The SRP provides supplemental retirement benefits to individuals who are in an executive-level position and who are receiving compensation in excess of the limits set by Section
401(a)(17) of the Internal Revenue Code. An individual's participation in the SRP begins the first day of January of the calendar year following the date they meet the eligibility requirements. Participants receive the following benefits under the
SRP:
•
1.25% of the participant's
final average compensation, as defined in the "Qualified Pension Plans" section above, multiplied by the number of years of service, up to a maximum of forty years; plus
•
0.75% of the participant's
final average compensation in excess of Social Security-covered compensation, as defined in "Qualified Pension Plans" above, multiplied by the number of years of service, up to a maximum of forty years; less
•
benefits
the executive accrued under the NRP.
For purposes of the SRP, the definition of "covered
compensation" is the same as described above in the "Final Average Pay Formula" section, without the Internal Revenue Code limits and including, at the time of deferral, any compensation that would be deferred pursuant to an individual compensation
agreement with any Nationwide company.
To the extent
permitted under the rules governing nondiscrimination for the NRP, all or a portion of the benefit under the SRP for participants who were fully vested on December 31, 2008, was transferred to the NRP. As a result, for most fully vested
participants, a greater portion of their retirement benefit will be provided under the NRP.
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In addition, the SRP provides all participants with a minimum
benefit equal to the accrued benefit under the SRP as of December 31, 2007. For participants who first became eligible on or after January 1, 1999, and before January 1, 2007, benefits vest over a period of five years. Benefits vest for participants
who first become eligible on or after January 1, 2007, over a period of 49 months. The vested percentage is based on the lesser of the participant's vested percentage in the NRP or the vested percentage pursuant to a specified vesting percentage
schedule under the SRP.
For all individuals who are new
participants on or after January 1, 2009, the SRP credits service by providing twelve months of credited service on the date they become a participant and credits twelve months of service for each subsequent calendar year only if the individual
meets the eligibility requirements as of the last day of the calendar year. For individuals who were participants in the SRP before January 1, 2009, the SRP provides one month of credited service for each month the participant performs service,
beginning on the participant's date of hire through December 31, 2007. After December 31, 2007, these participants received credits for twelve months of service for a calendar year only if the individual meets the SRP eligibility requirements as of
the last day of the calendar year.
Effective January 1,
2010, the SRP no longer provides a subsidized early retirement benefit for participants whose benefit calculation includes months of credited service accrued or credited on or after January 1, 2010. For an affected participant, the SRP determines
his or her benefit by providing the greatest of three benefit calculations:
•
his or her SRP benefit as of
December 31, 2007, with the subsidized early retirement factors;
•
his or her total benefit as
of December 31, 2009 minus the benefits accrued under the NRP at date of termination, with the subsidized early retirement factors; or
•
his or
her SRP benefit without subsidized early retirement factors at the date of termination.
Nationwide Savings Plan
The Nationwide Savings Plan, or the "NSP,"
is a qualified profit-sharing plan that includes a qualified cash or deferred arrangement and covers eligible employees of participating Nationwide companies. Under the NSP, our named executive officers and other eligible participants may elect to
contribute between 1% and 80% of their compensation to accounts established on their behalf. Participant contributions are in the form of voluntary, pre-tax salary deductions or after-tax "Roth 401(k)" salary deductions. Participants who reach the
age of fifty during the plan year may also make "catch up" contributions for that year of up to $5,500 for 2014. Participating Nationwide companies make matching employer contributions for the benefit of their participating employees, at a rate of
50% of the first 6% of compensation deferred or contributed to the NSP by each employee. The NSP holds all amounts that the participants contribute in a separate account for each participant and invests the amounts in the available investment
options chosen by the participant.
For purposes of the
NSP, covered compensation includes all wages reported on a Form W-2 Wage and Tax Statement from any Nationwide company, plus compensation deferred under Sections 125, 132(f)(4) and 401(k) of the Internal Revenue Code and excludes:
•
severance pay and other
amounts following the later of (i) the pay period that includes the participant's date of termination, and (ii) the pay period in which the participant's date of termination is posted to Nationwide's payroll system;
•
company car value or subsidy
or reimbursement for loss of a company car;
•
a lump-sum payment for
vacation days made upon termination of employment or pursuant to an election by the participant;
•
imputed income, executive
officer perquisites and benefits paid under any long-term performance or equity plan;
•
income imputed to any
participant as a result of the provision of health or other benefits to members of the participant's household;
•
any payment made to a
participant to offset the tax cost of other amounts Nationwide paid that are included in the participant's income for federal tax purposes;
•
any payment of deferred
compensation made prior to the participant's severance date or on account of a participant's severance date; and
•
expense
reimbursement or expense allowances including reimbursement for relocation expenses.
Covered compensation is subject to Internal Revenue Code
limits and is calculated on a calendar-year basis.
A
participant is eligible to receive the value of his or her vested account balance upon termination of his or her employment. However, he or she may withdraw all or a part of the amounts credited to his or her account prior to termination, such as
upon attainment of age fifty-nine and one-half years old. A participant is immediately vested in all
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amounts credited to his or her account as a result of salary deferrals or
after-tax contributions and earnings or losses on those deferrals or contributions, as applicable. Vesting in employer matching contributions and earnings or losses on those contributions occurs on a pro rata basis over a period of five years.
The NSP offers an automatic enrollment and automatic increase
feature, which applies to participants contributing less than 12% of their compensation.
Nationwide Supplemental Defined Contribution
Plan
The Nationwide Supplemental Defined Contribution
Plan, or "NSDC Plan," is an unfunded, nonqualified defined contribution supplemental benefit plan. The NSDC Plan provides benefits equal to employer matching contributions that would have been made for the participants under the Nationwide Savings
Plan, or "NSP," but for the Internal Revenue Code's limitation on compensation that can be considered for deferrals to the NSP. Only executives of certain Nationwide companies whose annual compensation is in excess of the limit set forth in the
Internal Revenue Code are eligible to participate in the NSDC Plan. The benefits under the plan vest after five years of participation.
For purposes of the NSDC Plan, "covered compensation" refers
to covered compensation as defined in "Nationwide Savings Plan" above, without the Internal Revenue Code limits and including, at the time of deferral, any compensation that would be deferred pursuant to an individual compensation agreement with any
Nationwide company. We credit individual accounts under the NSDC Plan with deferral amounts and earnings or losses based on the net investment return on the participant's choice of investment measures offered under the plan. No guaranteed or
above-market earnings are available under this plan. Participants may change their investment options on a daily basis.
Payouts under the NSDC Plan are made as follows:
•
credits made for plan years
prior to 1996, and earnings on those amounts, are paid in January of the year following the year the participant's employment terminates;
•
unless
otherwise elected in accordance with the terms of the plan, credits made to the plan for plan years after 1995, and earnings on those amounts, are paid in 10 installments for participants who qualify for a benefit from the NRP and whose account
balance exceeds $25,000, and in a single lump sum payment for all other participants.
Nonqualified Deferred Compensation for 2014
Name
(a)
Executive
contributions in
last fiscal year
1
(b)
Registrant
contributions
in last fiscal
year
2
(c)
Aggregate
earnings in
last fiscal year
3
(d)
Aggregate
withdrawals/
distributions
4
(e)
Aggregate
balance at
last fiscal
year end
5
(f)
Kirt
 A. Walker
$109,352
$17,762
$114,958
$110,886
$1,444,473
Timothy
 G Frommeyer
–
$
6,647
$
2,688
–
$
78,126
Stephen
 S. Rasmussen
–
$14,513
$
38,504
–
$
201,321
John
 L. Carter
$
6,690
$
7,115
$
6,397
–
$
187,216
Eric
 S. Henderson
–
$
8,632
$
1,853
–
$
53,849
1
Amount represents voluntary
deferrals to the Nationwide Individual Deferred Compensation Plan.
2
Amount
represents company contributions to the Nationwide Supplemental Defined Contribution Plan.
3
Amount represents investment
gain from applicable nonqualified deferred compensation plans attributable to all prior year deferrals in the plans. Investment gains or losses are attributable to the notional investment selections the executive officer makes. Executive officers
may choose from approximately eighty investment options for the Nationwide Individual Deferred Compensation Plan and the Nationwide Supplemental Defined Contribution Plan, and from sixteen investment options for the Nationwide Economic Value
Incentive Plan. The Nationwide Economic Value Incentive Plan is a terminated plan that provided for involuntarily deferred compensation we may still pay to an executive officer based on his or her distribution election.
4
Amount represents
distributions from the Nationwide Individual Deferred Compensation Plan.
5
Represents
balances in the following plans: the Nationwide Individual Deferred Compensation Plan, the Nationwide Supplemental Defined Contribution Plan and the Nationwide Economic Value Incentive Plan.
Nonqualified Deferred Compensation Plans
Executive deferred compensation benefits are
a key component of our total rewards philosophy. We provide competitive levels of deferred compensation benefits to attract and provide for long-term retention of key talent and reward long-term service. These benefits allow executives to prepare
for retirement and make up for regulatory limits on qualified plans.
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Nationwide Individual Deferred Compensation Plan
Under the "Nationwide Individual Deferred
Compensation Plan," or "IDC Plan," eligible executives of participating Nationwide companies may elect to defer payment of compensation otherwise payable to them. Eligible executive officers may enter into deferral agreements in which they may
annually elect to defer up to 80% of their salary and short-term incentive compensation they earn during the following year or performance cycle. Participants may also defer up to 80% of the long-term incentive compensation they earn during the
following performance cycle. Deferral elections are effective prospectively. Amounts an executive officer defers under the IDC Plan are generally payable in cash in annual installments beginning in January of the calendar year immediately following
the calendar year in which the executive officer terminates his or her employment, including due to the death of the participant. However, an executive officer may elect to receive payments after the expiration of the deferral period the executive
officer elects, from one to ten years from the year in which the deferral of compensation applies. If the entire account balance is less than $25,000 at the time a payment is due, the entire account balance will be distributed, regardless of the
distribution election on file. We credit individual accounts under the IDC Plan with deferral amounts and earnings or losses based on the net investment return on the participant's choice of investment measures offered under the IDC Plan. No
guaranteed or above-market earnings are available under this plan. The plan previously restricted participants' changes in investment options to once every five business days. However, effective October 1, 2014, the plan permits participants to make
investment changes on a daily basis. Each participant is always fully vested in his or her accrued amount.
The IDC Plan permits a participant or beneficiary to take an
unscheduled withdrawal from his or her account provided that such elective withdrawal applies only to amounts earned and vested, including earnings, on or before December 31, 2004, and any such withdrawal is subject to a 10% early withdrawal
penalty.
Potential Payments Upon Termination or Change of Control
We have entered into agreements and maintain
plans that require us to provide compensation to our named executive officers upon an involuntary termination of employment or a voluntary termination for good reason following a substantial reorganization. The following narrative describes the
payments and benefits our named executive officers could receive under these agreements and plans. The tables that follow reflect our estimate of the payments and benefits, to the extent allocable to us under the cost-sharing agreement, we would
provide to each of our named executive officers under various termination scenarios or for good reason following a substantial reorganization. The amounts shown in the tables assume that terminations of employment and, as applicable, the change of
control, occurred on December 31, 2014.
Payments and
benefits that are generally available to all salaried employees, and that do not discriminate in favor of the executive officers, such as disability benefits, are not disclosed. Generally, the amounts shown are estimates and actual payments and
benefits could be more or less than the amounts shown.
Payments Made Upon Standard Termination
General Termination Payments
Regardless of the manner in which an executive officer's
employment terminates, he or she is entitled to receive the following amounts, which are earned during employment:
•
vested amounts contributed,
plus related earnings under, the Nationwide Savings Plan, the Nationwide Individual Deferred Compensation Plan, and the Nationwide Supplemental Defined Contribution Plan;
•
amounts accrued and vested
under the Nationwide Retirement Plan and the Nationwide Supplemental Retirement Plan; and
•
unused
paid time off, up to specified limits and subject to certain limitations as specified within our paid time off plan.
Short-Term Incentive Awards
The effect of a termination of employment on
certain executive officers' short-term incentives is controlled by the terms of either the PIP or the SIP, as applicable. Under these plans, unless otherwise provided by the NMIC human resources committee in connection with specified terminations of
employment, we make a payment of a short-term incentive only if, and to the extent, the executive officer has attained the performance goals with respect to the related performance period, and only if we employ the executive officer through the end
of the performance period. In addition, an executive officer must be employed through the date the short-term award is made. However, in the event an executive officer's employment terminates during the performance period, or prior to the date
awards are paid, due to death or disability, the executive officer or the executive officer's estate will receive a portion or all of the incentive as the NMIC human resources committee determines. In the event an executive officer's employment
terminates during the performance period (or for
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PIP, prior to the date PIP payments are made) due to retirement or
termination of the executive officer's employment without cause, the executive officer will remain eligible to receive a portion of the incentive based on the amount of time the executive officer was employed on the date the PIP payment is made and
the executive officer's attainment of the performance goals for the performance period.
Nationwide Long-Term Performance Plan
The LTPP plan design measures performance
over a three-year period. The design requires both revenue growth and capital strength in order for participants to receive payments, which will range from zero to two and one-half times the target amount. If a voluntary termination of employment or
termination for cause occurs prior to the last day of the performance period, an executive officer's outstanding target award opportunities will be forfeited. If a termination is due to death, disability or retirement the target award opportunity
will be prorated based on the number of days worked in the performance period. Because the termination payment tables that follow assume that the named executive officers worked through all three years of the 2012-2014 performance period, through
the first and second years of the 2013-2015 performance period, and through the first year of the 2014-2016 performance period, the amounts shown in the tables relating to the awards under the LTPP reflect prorated opportunities for termination
without cause or for good reason following a substantial reorganization or for termination due to death, disability or retirement, which would be paid after December 31, 2015 or 2016 (as applicable), based on actual performance. Organizational
performance was estimated at target performance for purposes of these tables.
For a description of the retirement, death and disability
provisions in the LTPP, see "Payments Made Upon Retirement" and "Payments Made Upon Death or Disability" below.
Severance Payments and Benefits
Those named executive officers who do not have a severance
agreement participate in the Nationwide Severance Pay Plan. The plan is generally available to all of our salaried employees and provides for certain payments if an employee, including an executive officer, involuntarily leaves the company due to
job elimination. The longer an executive officer works for us, the more the executive officer may be eligible to receive as severance pay benefits when the executive officer's employment ends. In order to receive payment under the Nationwide
Severance Pay Plan, if eligible, the executive officer must sign a severance and release agreement. We generally calculate severance pay as one week for each year of service, not to exceed twenty-five weeks, with a minimum of two weeks. Years of
service used to calculate the severance payment includes all types of service with us, including service with affiliates and subsidiaries, calculated through the last date of employment.
Certain severance agreement guidelines are applicable to our
executive officers. The guidelines provide for severance benefits that may be available to executive officers in addition to the Nationwide Severance Pay Plan, assuming the executives signs the appropriate release. The guidelines allow management to
offer the following when negotiating severance agreements with executive officers:
•
a lump-sum cash payment equal
to six to twelve months, depending on the circumstances of departure, of the annual base salary in effect on the date of termination;
•
paid leave of absence of
twenty-one days for executive officers over the age of forty to permit the executive officer time to seek legal advice regarding the terms of the severance agreement;
•
short-term incentive
payments earned under the PIP, prorated to the date of termination;
•
up to one year of executive
placement services, or a lump-sum payment of $6,800 in lieu of such services;
•
payout of the current year
earned but unused paid time off; and
•
transfer
of ownership of certain computer equipment, less any Nationwide-licensed software or operating system, to the executive officer.
Executive Severance Agreements
NMIC has entered into executive severance
agreements with Messrs. Rasmussen, Carter, and Walker. The initial term of the agreement for Messrs. Rasmussen and Walker ended December 31, 2011, with automatic one-year renewals commencing on January 1, 2012, unless NMIC or the executive officer
gives notice of nonrenewal. The initial term of the agreement for Mr. Carter ended on December 31, 2013, with automatic one-year renewals commencing on January 1, 2014, unless NMIC or the executive officer gives notice of nonrenewal.
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The agreements provide that NMIC will pay salary, incentive
compensation, and benefits as determined by NMIC's board of directors, or a committee thereof. The agreements also contain provisions related to certain payments and benefits NMIC would pay upon specified termination events, a portion of would be
allocated to NLIC. The details of those provisions are set forth below in "Potential Payments Upon Termination or Change of Control."
The following description of Messrs.
Rasmussen's, Carter's, and Walker's agreements and the amounts presented in the tables that follow are based on the terms of the agreements as they existed on December 31, 2014, and assume a termination of employment, and such triggering events as
are contemplated by the executive severance agreements, occurred on December 31, 2014.
The executive severance agreements in effect as of December
31, 2014, for Messrs. Rasmussen, Walker, and Carter are substantially similar to each other. Each agreement contains material non-competition, non-solicitation and confidentiality provisions, which condition Nationwide's promises to pay severance on
the executive officer's compliance with such provisions. The agreements also condition receipt of severance upon the execution of a binding release of NMIC and other related parties.
Under the executive severance agreements in effect as of
December 31, 2014, upon a termination by NMIC without cause or upon a resignation for good reason after a substantial reorganization of NMIC, the following payments and benefits would be provided:
•
a lump-sum cash payment equal
to one or two times, as applicable, the annual base salary in effect immediately before the termination, payable within 30 days following the executive's termination;
•
a lump-sum cash payment equal
to one or two times, as applicable, the short-term incentive compensation that would have been earned pursuant to the PIP during the fiscal year in which the executive officer's termination date occurs payable based on actual performance over the
full year, payable when annual bonuses are paid to our other executives;
•
a lump-sum cash payment equal
to the cost, including a gross-up payment to cover income and FICA taxes on the payment, to the executive officer of continuing the medical and dental coverage under COBRA, or under the retiree medical provisions of NMIC's medical plan, if
applicable, for the executive officer, his spouse and dependents, for a specified period of time following the executive's termination date;
•
supplemental benefits equal
to the benefits the executive officer would have been entitled to receive on the termination date under certain retirement and deferred compensation plans, had the executive officer been fully vested in those plans on the termination date, less any
benefits the executive officer actually receives under those plans, paid at the time the executive's benefits are otherwise paid under the applicable plans;
•
in the event that the
executive officer's termination date occurs within three years of the date on which the executive officer would have been first eligible to retire under the Nationwide Retirement Plan, a supplemental benefit equal to the benefits the executive
officer would have received under the Nationwide Retirement Plan, the Nationwide Supplemental Retirement Plan and the Nationwide Excess Benefit Plan, had the executive officer earned service and age credit for the period ending on the earlier of
three years after the executive officer's termination date or the earliest date the executive officer would have been eligible to retire under the Nationwide Retirement Plan and had the executive officer been fully vested under those plans, less any
benefits the executive officer actually receives under those plans, paid at the time the executive's benefits are otherwise paid under the applicable plans;
•
a lump-sum cash payment equal
to the matching contributions that NMIC would have made for the executive officer under the Nationwide Savings Plan and the Nationwide Supplemental Defined Contribution Plan during the severance period defined in the agreement, as if the executive
officer's contributions had continued in the same amount and at the same rate in effect immediately prior to the executive officer's termination date, payable within 30 days following the executive's termination date;
•
service and age credits for
the purpose of eligibility under NMIC's retiree medical plan, as if the executive officer had continued employment through the executive severance agreement's specified severance period;
•
the right to retain certain
computer and office equipment and furniture used at the executive officer's home; and
•
amounts
earned, accrued or owed but not paid and benefits owed under employee benefit plans and programs.
Whether a "substantial reorganization" has occurred will be
determined by the board of directors of NMIC.
If the
board of directors has determined that a substantial reorganization has occurred, it may establish a period of time during which the executive may terminate his employment if an event constituting "good reason" occurs. Under the severance
agreements, the executive will have "good reason" to terminate his employment during the period established by the board of directors if any of the following events occur and remain uncured for 30 days after the executive's notice to NMIC of the
event:
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•
a material diminution in the
executive's authority, duties or responsibilities, as reasonably determined by the board of directors of NMIC;
•
a material change in the
geographic location at which the executive must perform services;
•
a material diminution in the
executive's base salary, other than due to a change in base salary for all senior executives in NMIC; or
•
any
action or inaction of NMIC that constitutes a material breach by NMIC of the severance agreement.
Under the severance agreements, "cause" means any of the
following:
•
the executive has been
convicted of a felony;
•
the executive neglects,
refuses or fails to perform his material duties to NMIC, which failure has continued for a period of at least 30 days after notice from NMIC;
•
the executive engages in
misconduct in the performance of his duties;
•
the executive engages in
public conduct that is harmful to the reputation of NMIC;
•
the executive breaches his
non-competition, non-disclosure or non-solicitation covenants; or
•
the
executive breaches NMIC's written code of business conduct and ethics.
Payments Made Upon Retirement
If an executive officer were to retire on
December 31, 2014, the executive officer would receive the full three-year 2012-2014 LTPP award relating to operating revenue growth/capital strength, an amount equal to two-thirds of the total target incentive opportunity for the 2013-2015
performance period and one-third of the total target incentive opportunity for the 2014-2016 performance period multiplied by the respective performance scores paid in the year following the end of the performance periods. For purposes of operating
revenue growth/capital strength awards, retirement means a termination of employment on or after the date on which the executive officer has attained:
•
Normal Retirement Age;
•
age fifty-five and completed
120 months of vesting service; or
•
age
sixty-two and completed sixty months of vesting service,
as determined under the NRP.
The PIP and the SIP provide that if an executive officer
retires, the executive officer will receive his or her short-term incentive compensation earned during the fiscal year in which termination occurs. The short-term compensation payment is prorated to reflect services performed through the date of
employment termination and is based on actual performance for the year.
Payments Made Upon Death or Disability
If an executive officer dies or becomes
disabled, in addition to any applicable benefits listed in "Payments Made Upon Standard Termination," the executive officer will receive benefits under our disability plan or his named beneficiary will receive payments under NMIC's life insurance
plan, as appropriate. In addition, under the PIP and the SIP, the executive officer will receive his or her short-term incentive compensation earned during the fiscal year in which the termination occurs. The short-term compensation payment is
prorated to reflect services performed through the date of employment termination and is based on the actual performance for the year.
Payments Made Upon a Change of Control or Termination Upon or
Following a Change of Control
The PIP,
the SIP, and the LTPP do not provide for special treatment of awards upon a change in control. However, a resignation for good cause following a substantial reorganization entitles the executive to certain payments described above and shown in the
tables below.
The following tables reflect our estimates
of the allocated payments and benefits our named executive officers would have received in lump sum if a termination of employment had occurred on December 31, 2014.
Kirt A. Walker
Benefits
 and payments
upon termination
Voluntary
 termination
Termination
 without cause
or for good reason
following a substantial
reorganization
For
 cause termination
Death,
 disability,
or retirement
Short-term
 incentives:
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Benefits
 and payments
upon termination
Voluntary
 termination
Termination
 without cause
or for good reason
following a substantial
reorganization
For
 cause termination
Death,
 disability,
or retirement
Annual
 incentives
1
$
–
$
–
$–
$
311,749
Long-term
 incentives:
LTPP
 12-14 award
2
$708,248
$
708,248
$–
$
708,248
LTPP
 13-15 award
3
$
–
$
420,168
$–
$
420,168
LTPP
 14-16 award
3
$
–
$
196,716
$–
$
196,716
Life
 insurance proceeds
$
–
$
–
$–
$2,457,900
Cash
 severance
4
$
–
$1,629,476
$–
$
–
Total
 compensation
$708,248
$2,954,608
$–
$4,094,781
1
Reflects the amount Mr.
Walker would receive with respect to the 2014 short-term incentive payment under the PIP upon a termination of employment, except for cause, on December 31, 2014. Mr. Walker would not be eligible to receive a PIP award payment upon a voluntary
termination on December 31, 2014. The PIP requires that plan participants be employed on the date PIP awards are paid. The "Termination without cause or for good reason following a substantial reorganization" column does not include the 2014
short-term incentive opportunity as the severance agreement provides that the short-term incentive payment under the agreement is in lieu of the payments that would be made under the PIP. The amounts were not reduced to their present value.
2
Reflects the amount Mr.
Walker would receive with respect to the 2012-2014 awards under the LTPP upon a termination of employment, except for cause, on December 31, 2014.
3
Reflects the amount Mr.
Walker would receive with respect to the 2013-2015 and 2014-2016 awards under the LTPP upon termination without cause or due to substantial reorganization, or for death, disability or retirement (not eligible), on December 31, 2014. Mr. Walker would
not have qualified for retirement under the LTPP and would forfeit the target award opportunity granted in the year of termination unless termination is due to death or disability or if the termination is without cause or due to substantial
reorganization. Accordingly, the amounts shown assume a two-thirds distribution of the total 2013-2015 award, which would have been paid in 2016, and a one-third distribution of the total 2014-2016 award, which would have been paid in 2017, using a
performance score that was estimated as of December 31, 2014. The amounts were not reduced to their present value.
4
Includes
lump-sum cash amounts equal to the sum of two times base salary; two times the 2014 matching amounts in the Nationwide Savings Plan and Nationwide Supplemental Defined Contribution Plan; two times the 2014 short-term incentive bonus; two times the
annual COBRA rate, grossed up for FICA and income taxes, in effect at the time of termination for Mr. Walker and his family. The amounts were not reduced to their present value.
Timothy G. Frommeyer
Benefits
 and payments
upon termination
Voluntary
 termination
Termination
 without cause
For
 cause termination
Death,
 disability,
or retirement
Short-term
incentives:
Annual
incentives
1
$
–
$
37,770
$–
$
37,770
Long-term
incentives:
LTPP 12-14
award
2
$110,093
$110,093
$–
$
110,093
LTPP 13-15
award
3
$
–
$
55,982
$–
$
55,982
LTPP 14-16
award
3
$
–
$
24,463
$–
$
24,463
Life insurance
proceeds
$
–
$
–
$–
$1,137,621
Cash
severance
4
$
–
$231,707
$–
$
–
Total
compensation
$110,093
$350,033
$–
$1,365,929
1
Reflects the amount Mr.
Frommeyer would receive with respect to the 2014 short-term incentive payment under the PIP upon a termination of employment, except for cause, on December 31, 2014. Mr. Frommeyer would not be eligible to receive a PIP award payment upon a voluntary
termination on December 31, 2014. The PIP requires that plan participants be employed on the date PIP awards are paid.
2
Reflects the amount Mr.
Frommeyer would receive with respect to the 2012-2014 awards under the LTPP upon a termination of employment, except for cause, on December 31, 2014.
3
Reflects
the amount Mr. Frommeyer would receive with respect to the 2013-2015 and 2014-2016 awards under the LTPP upon termination without cause or due to substantial reorganization, or for death, disability or retirement (not eligible), on December 31,
2014. Mr. Frommeyer would not have qualified for retirement under the LTPP and would forfeit the target award opportunity granted in the year of termination unless termination is due to death or disability or if the termination is without cause or
due to substantial reorganization. Accordingly, the amounts shown assume a two-thirds distribution of the total 2013-2015 award, which would have been paid in 2016, and a one-third distribution of the total 2014-2016 award, which would have been
paid in 2017, using a performance score that was estimated as of December 31, 2014. The amounts were not reduced to their present value.
4
Includes an estimate of the
amount we would pay under the severance plan guidelines for executives described above. For purposes of this table, we assumed a payment based on twelve months of base salary and $6,800, in lieu of outplacement services.
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Stephen S. Rasmussen
Benefits
 and payments
upon termination
Voluntary
 termination
Termination
 without cause
or for good reason
following a substantial
reorganization
For
 cause termination
Death,
 disability,
or retirement
Short-term
incentives:
Annual
incentive
1
$
308,649
$
–
$–
$
308,649
Long-term
incentives:
LTPP 12-14
award
2
$1,606,169
$1,606,169
$–
$1,606,169
LTPP 13-15
award
3
$
874,052
$
874,052
$–
$
874,052
LTPP 14-16
award
3
$
391,328
$
391,328
$–
$
391,328
Life insurance
proceeds
$
–
$
–
$–
$
460,500
Cash
severance
4
$
–
$1,022,769
$–
$
–
Total
compensation
$3,180,198
$3,894,318
$–
$3,640,698
1
Reflects the amount Mr.
Rasmussen would receive with respect to the 2014 short-term incentive payment under the PIP upon a termination of employment, except for cause, on December 31, 2014. The PIP requires that plan participants be employed on the date PIP awards are
paid. However, since Mr. Rasmussen would have qualified for retirement on December 31, 2014, he would receive the PIP payment. The "Termination without cause or for good reason following a substantial reorganization" column does not include the 2014
short-term incentive opportunity, as the severance agreement provides that the short-term incentive payment under the agreement is in lieu of the payment that would be made under the PIP. The amounts were not reduced to their present value.
2
Reflects the amount Mr.
Rasmussen would receive with respect to the 2012-2014 awards under the LTPP upon a termination of employment, except for cause, on December 31, 2014.
3
Reflects the amount Mr.
Rasmussen would receive with respect to the 2013-2015 and 2014-2016 awards under the LTPP upon termination on December 31, 2014. Mr. Rasmussen would have qualified for retirement under the LTPP. Accordingly, the amounts shown assume a two-thirds
distribution of the total 2013-2015 award, which would be paid in 2016, and a one-third distribution of the total 2014-2016 award, which would be paid in 2017, using a performance score that was estimated as of December 31, 2014, which would have
been paid in 2015. The amounts were not reduced to their present value.
4
Includes
lump-sum cash amounts equal to the sum of two times base salary; three times the 2014 matching amounts in the Nationwide Savings Plan and Nationwide Supplemental Defined Contribution Plan; two times the 2014 short-term incentive bonus; three times
the annual COBRA rate, grossed up for FICA and income taxes, in effect at the time of termination for Mr. Rasmussen and his family. The amounts were not reduced to their present value.
John L. Carter
Benefits
 and payments
upon termination
Voluntary
 termination
Termination
 without cause
or for good reason
following a substantial
reorganization
For
 cause termination
Death,
 disability,
or retirement
Short-term
incentives:
Sales
Incentive
1
$
–
$
–
$–
$
325,978
Long-term
incentives:
LTPP 12-14
award
2
$438,523
$
438,523
$–
$
438,523
LTPP 13-15
award
3
$
–
$
255,102
$–
$
255,102
LTPP 14-16
award
3
$
–
$
118,029
$–
$
118,029
Life insurance
proceeds
$
–
$
–
$–
$1,069,200
Cash
severance
4
$
–
$
505,591
$–
$
–
Total
compensation
$438,523
$1,317,245
$–
$2,206,832
1
Reflects the amount Mr.
Carter would receive with respect to the 2014 short-term incentive payment under the SIP upon a termination of employment, except for cause, on December 31, 2014. Mr. Carter would not be eligible to receive a SIP award payment upon a voluntary
termination on December 31, 2014. We require that SIP participants be employed on the date SIP awards are paid. The "Termination without cause or for good reason following a substantial reorganization" column does not include the 2014 short-term
incentive opportunity, as the severance agreement provides that the short-term incentive payment under the agreement is in lieu of the payment that would be made under the SIP. The amounts were not reduced to their present value.
2
Reflects the amount Mr.
Carter would receive with respect to the 2012-2015 awards under the LTPP upon a termination of employment, except for cause, on December 31, 2014.
3
Reflects
the amount Mr. Carter would receive with respect to the 2013-2015 and 2014-2016 awards under the LTPP upon termination without cause or due to substantial reorganization, or for death, disability or retirement (not eligible), on December 31, 2014.
Mr. Carter would not have qualified for retirement under the LTPP and would forfeit the target award opportunity granted in the year of termination unless termination is due to death or disability or if the termination is without cause. Accordingly,
the amounts
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shown assume a two-thirds
distribution of the total 2013-2015 award, which would have been paid in 2016, and a one-third distribution of the total 2014-2016 award, which would have been paid in 2017, using a performance score that was estimated as of December 31, 2014. The
amounts were not reduced to their present value.
4
Includes
lump-sum cash amounts equal to the sum of one times base salary; one times the 2014 matching amounts in the Nationwide Savings Plan and Nationwide Supplemental Defined Contribution Plan; one times the 2014 short-term incentive bonus; one times the
annual COBRA rate, grossed up for FICA and income taxes, in effect at the time of termination for Mr. Carter and his family. The amounts were not reduced to their present value.
Eric S. Henderson
Benefits
 and payments
upon termination
Voluntary
 termination
Termination
 without cause
For
 cause termination
Death,
 disability,
or retirement
Short-term
incentives:
Annual
incentive
1
$
–
$
185,565
$–
$
185,565
Long-term
incentives:
LTPP 12-14
award
2
$365,574
$
365,574
$–
$
365,574
LTPP 13-15
award
3
$
–
$
185,894
$–
$
185,894
LTPP 14-16
award
3
$
–
$
89,466
$–
$
89,466
Life insurance
proceeds
$
–
$
–
$–
$1,696,356
Cash
severance
4
$
–
$
325,199
$–
$
–
Total
compensation
$365,574
$1,151,698
$–
$2,522,855
1
Reflects the amount Mr.
Henderson would receive with respect to the 2014 short-term incentive payment under the PIP upon a termination of employment, except for cause, on December 31, 2014. Mr. Henderson would not be eligible to receive a PIP award payment upon a voluntary
termination on December 31, 2014. The PIP requires that plan participants be employed on the date PIP awards are paid.
2
Reflects the amount Mr.
Henderson would receive with respect to the 2012-2014 awards under the LTPP upon a termination of employment, except for cause, on December 31, 2014.
3
Reflects
the amount Mr. Henderson would receive with respect to the 2013-2015 and 2014-2016 operating revenue growth/capital strength awards under the LTPP upon termination without cause or due to substantial reorganization, or for death, disability or
retirement (not eligible), on December 31, 2014. Mr. Henderson would not have qualified for retirement under the LTPP and would forfeit the target award opportunity granted in the year of termination unless termination is due to death or disability
or if the termination is without cause. Accordingly, the amounts shown assume a two-thirds distribution of the total 2013-2015 award, which would have been paid in 2016, and a one-third distribution of the total 2014-2016 award, which would have
been paid in 2017, using a performance score that was estimated as of December 31, 2014.
4
Includes an estimate of the
amount we would pay under the severance plan guidelines for executives described above. For purposes of this table, we assumed a payment based on twelve months of base salary and $6,800, in lieu of outplacement services.
Director Compensation for 2014
We do not separately compensate members of our board of
directors who are also our employees or employees of our affiliates, for their service on our board of directors. As Nationwide employees, our directors receive no additional compensation for service on our board of directors.
Compensation Policies and Practices as they Relate to Risk
Management
We believe that our compensation programs do
not provide incentives for excessive risk taking and do not lead to risks that are reasonably likely to have a material adverse effect on the company.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AND RELATED STOCKHOLDER MATTERS
The following table sets
forth certain information regarding beneficial ownership as of March 1, 2013, of the holders of our common stock. Our directors and executive officers do not beneficially own any of our common stock.
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Common Stock
The following table sets forth the number of issued and
outstanding shares of our common stock owned by each person or entity known by us to be the beneficial owner of more than five percent of such common stock.
Name
 and address
of beneficial owner
Amount
 and nature of
beneficial ownership
Percent
 of class
Nationwide
 Financial Services, Inc.
1 Nationwide Plaza
Columbus, Ohio 43215
3,814,779
 shares
100%
CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS
License to Use Nationwide Name and Service
Marks
We have a license to use the "Nationwide" trade
name and certain other service marks solely for the purpose of identifying and advertising our long-term savings and retirement business and related activities.
Nationwide Mutual Agents
NMIC allows us to distribute our variable annuity, fixed
annuity and individual universal, variable and traditional life insurance products through NMIC agents.
See Note 15 to the audited consolidated financial statements
included in the F pages of this report for a discussion of related party transactions.
Policies and Procedures for Review and Approval of Related
Person Transactions
We have a written
conflict of interests policy that is administered by the Office of Ethics. All executive officers and directors are subject to the policy, which is designed to cover related persons transactions with executive officers, directors and their immediate
family members. The policy prohibits:
•
using position at Nationwide
or affiliation with any Nationwide company for personal gain or advantage;
•
any interest or association
that interferes with independent exercise of judgment in the best interest of Nationwide; and
•
directly
or indirectly having any position with or substantial interest in any business or property or engaging in any employment or other activity, which takes time and attention away from performance of Nationwide job duties.
We require our executive officers and
directors to annually complete a conflict of interests certificate. This certificate requires the executive officers and directors to represent that they have read the conflict of interests policy and disclose any conflicts of interests. It also
requires the completion of an outside business activities questionnaire. Each reported possible conflict of interest is reviewed by the Office of Ethics and addressed by appropriate action. The Office of Ethics submits an annual summary report
covering each reported conflict of interest an executive officer or director reports and the disposition of each matter to the board of directors.
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KPMG LLP
Suite 500
191 West Nationwide
Blvd.
Columbus, OH 43215-2568
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholder
Nationwide Life
Insurance Company:
We have audited the accompanying consolidated balance sheets of Nationwide Life Insurance Company and subsidiaries (the Company) as of
December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2014. In connection with our audits of the
consolidated financial statements, we also have audited the financial statement schedules as listed in the accompanying table of contents. These consolidated financial statements and financial statement schedules are the responsibility of the
Company's management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of
Nationwide Life Insurance Company and subsidiaries as of December 31, 2014 and 2013, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2014, in conformity with
U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material
respects, the information set forth therein.
/s/ KPMG LLP
Columbus, Ohio
February 25, 2015
KPMG LLP is a Delaware limited liability partnership, the U.S.
member firm of KPMG International Cooperative ("KPMG
International"), a Swiss entity.
F-1
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Statements of Operations
Year ended December 31,
(in millions)
2014
2013
2012
Revenues
Policy charges
$
2,065
$
1,849
$
1,670
Premiums
831
724
635
Net investment income
1,900
1,849
1,825
Net realized investment (losses) gains, including other-than-temporary impairment losses
(1,078
)
678
319
Other revenues
11
17
7
Total revenues
$
3,729
$
5,117
$
4,456
Benefits and expenses
Interest credited to policyholder account values
$
1,096
$
1,067
$
1,038
Benefits and claims
1,502
1,354
1,227
Amortization of deferred policy acquisition costs
207
374
575
Other expenses, net of deferrals
1,055
981
917
Total benefits and expenses
$
3,860
$
3,776
$
3,757
(Loss) income before federal income taxes and noncontrolling interests
$
(131
)
$
1,341
$
699
Federal income tax (benefit) expense
(147
)
313
99
Net income
$
16
$
1,028
$
600
Less: Loss attributable to noncontrolling interest, net of tax
(94
)
(82
)
(61
)
Net income attributable to Nationwide Life Insurance Company
$
110
$
1,110
$
661
See accompanying notes to consolidated financial statements.
F-2
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Statements of Comprehensive Income
Year ended December 31,
(in millions)
2014
2013
2012
Net income
$
16
$
1,028
$
600
Other comprehensive income (loss), net of tax
Changes in:
Net unrealized gains (losses) on available-for-sale securities
$
435
$
(663
)
$
571
Other
27
(7
)
(5
)
Total other comprehensive income (loss), net of tax
$
462
$
(670
)
$
566
Total comprehensive income
$
478
$
358
$
1,166
Less: Comprehensive loss attributable to noncontrolling interests, net of tax
(94
)
(82
)
(61
)
Total comprehensive income attributable to Nationwide Life Insurance Company
$
572
$
440
$
1,227
See accompanying notes to consolidated financial statements.
F-3
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Balance Sheets
December 31,
(in millions, except for share and per share amounts)
2014
2013
Assets
Investments:
Fixed maturity securities, available-for-sale
$
35,418
$
32,249
Mortgage loans, net of allowance
7,270
6,341
Policy loans
992
987
Short-term investments
935
411
Other investments
822
767
Total investments
$
45,437
$
40,755
Cash and cash equivalents
77
61
Accrued investment income
670
603
Deferred policy acquisition costs
4,063
3,778
Goodwill
200
200
Other assets
5,001
3,979
Separate account assets
88,076
84,069
Total assets
$
143,524
$
133,445
Liabilities and equity
Liabilities
Future policy benefits and claims
$
40,730
$
36,765
Short-term debt
660
278
Long-term debt
709
707
Other liabilities
5,313
4,122
Separate account liabilities
88,076
84,069
Total liabilities
$
135,488
$
125,941
Shareholder's equity
Common stock ($1 par value; authorized - 5,000,000 shares, issued and outstanding - 3,814,779 shares)
$
4
$
4
Additional paid-in capital
1,718
1,718
Retained earnings
4,630
4,520
Accumulated other comprehensive income
1,044
582
Total shareholder's equity
$
7,396
$
6,824
Noncontrolling interests
640
680
Total equity
$
8,036
$
7,504
Total liabilities and equity
$
143,524
$
133,445
See accompanying notes to consolidated financial statements.
F-4
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Statements of Equity
(in millions)
Common
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
income
Total
shareholder's
equity
Non-controlling
interest
Total
equity
Balance as of December 31, 2011
$
4
$
1,718
$
2,789
$
686
$
5,197
$
345
$
5,542
Cash dividend paid
—
—
(40
)
—
(40
)
—
(40
)
Comprehensive income (loss):
Net income (loss)
—
—
661
—
661
(61
)
600
Other comprehensive income
—
—
—
566
566
—
566
Total comprehensive income (loss)
$
—
$
—
$
661
$
566
$
1,227
$
(61
)
$
1,166
Change in noncontrolling interest
—
—
—
—
—
63
63
Balance as of December 31, 2012
$
4
$
1,718
$
3,410
$
1,252
$
6,384
$
347
$
6,731
Comprehensive income (loss):
Net income (loss)
—
—
1,110
—
1,110
(82
)
1,028
Other comprehensive loss
—
—
—
(670
)
(670
)
—
(670
)
Total comprehensive income (loss)
$
—
$
—
$
1,110
$
(670
)
$
440
$
(82
)
$
358
Change in noncontrolling interest
—
—
—
—
—
415
415
Balance as of December 31, 2013
$
4
$
1,718
$
4,520
$
582
$
6,824
$
680
$
7,504
Comprehensive income (loss):
Net income (loss)
—
—
110
—
110
(94
)
16
Other comprehensive income
—
—
—
462
462
—
462
Total comprehensive income (loss)
$
—
$
—
$
110
$
462
$
572
$
(94
)
$
478
Change in noncontrolling interest
—
—
—
—
—
54
54
Balance as of December 31, 2014
$
4
$
1,718
$
4,630
$
1,044
$
7,396
$
640
$
8,036
See accompanying notes to consolidated financial statements.
F-5
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Statements of Cash Flows
Year ended December 31,
(in millions)
2014
2013
2012
Cash flows from operating activities
Net income
$
16
$
1,028
$
600
Adjustments to net income:
Net realized investment losses (gains), including other-than-temporary impairment losses
1,078
(678
)
(319
)
Interest credited to policyholder account values
1,096
1,067
1,038
Capitalization of deferred policy acquisition costs
(685
)
(604
)
(470
)
Amortization of deferred policy acquisition costs
207
374
575
Amortization and depreciation
128
77
80
Deferred tax (benefit) expense
(152
)
346
243
Changes in:
Policy liabilities
(421
)
(475
)
(548
)
Derivatives, net
(181
)
(483
)
(490
)
Other, net
(59
)
88
(84
)
Net cash provided by operating activities
$
1,027
$
740
$
625
Cash flows from investing activities
Proceeds from maturities of available-for-sale securities
$
2,798
$
3,689
$
2,909
Proceeds from sales of available-for-sale securities
647
1,091
796
Purchases of available-for-sale securities
(5,640
)
(6,842
)
(5,167
)
Proceeds from repayments and sales of mortgage loans
920
1,091
1,048
Issuances and purchases of mortgage loans
(1,837
)
(1,593
)
(1,114
)
Net (increase) decrease in short-term investments
(524
)
654
98
Collateral received (paid), net
399
(637
)
(208
)
Other, net
(94
)
42
(12
)
Net cash used in investing activities
$
(3,331
)
$
(2,505
)
$
(1,650
)
Cash flows from financing activities
Net change in short-term debt
$
382
$
(22
)
$
(477
)
Proceeds from issuance of long-term debt
—
2
13
Cash dividend paid to Nationwide Financial Services, Inc.
—
—
(40
)
Repayments of long-term debt
—
(299
)
—
Investment and universal life insurance product deposits
6,037
6,139
5,566
Investment and universal life insurance product withdrawals
(4,095
)
(4,034
)
(4,063
)
Other, net
(4
)
(22
)
39
Net cash provided by financing activities
$
2,320
$
1,764
$
1,038
Net increase (decrease) in cash and cash equivalents
$
16
$
(1
)
$
13
Cash and cash equivalents at beginning of year
61
62
49
Cash and cash equivalents at end of year
$
77
$
61
$
62
See accompanying notes to consolidated financial statements.
F-6
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(1)
Nature of Operations
Nationwide Life Insurance Company ("NLIC," or collectively with its subsidiaries, "the Company") was
incorporated in 1929 and is an Ohio domiciled stock life insurance company. The Company is a member of the Nationwide group of companies ("Nationwide"), which is comprised of Nationwide Mutual Insurance Company ("NMIC") and all
of its subsidiaries and affiliates.
All of the outstanding shares of NLIC's common stock are owned by Nationwide Financial Services,
Inc. ("NFS"), a holding company formed by Nationwide Corporation ("Nationwide Corp."), a majority-owned subsidiary of NMIC.
The Company is a leading provider of long-term savings and retirement products in the United States of America ("U.S."). The Company
develops and sells a diverse range of products and services including individual annuities, private and public sector group retirement plans, investment products sold to institutions, life insurance and advisory services.
The Company sells its products through a diverse distribution network. Unaffiliated entities that sell the Company's products to their own
customer bases include independent broker-dealers, financial institutions, wirehouse and regional firms, pension plan administrators and life insurance specialists. Representatives of affiliates who market products directly to a customer base
include Nationwide Retirement Solutions, Inc. ("NRS") and Nationwide Financial Network ("NFN") producers, which includes the agency distribution force of the Company's ultimate parent company, NMIC.
Wholly-owned subsidiaries of NLIC as of December 31, 2014 include Nationwide Life and Annuity Insurance Company ("NLAIC"),
Nationwide Investment Services Corporation ("NISC") and Nationwide Investment Advisor ("NIA"). NLAIC primarily offers universal life insurance, variable universal life insurance, term life insurance, corporate-owned life
insurance ("COLI") and individual annuity contracts on a non-participating basis. NISC is a registered broker-dealer. NIA is a registered investment advisor.
As of December 31, 2014 and 2013, the Company did not have a significant concentration of financial instruments in a single investee,
industry or geographic region of the U.S. Also, the Company did not have a concentration of business transactions with a particular customer, lender, distribution source, market or geographic region of the U.S. in which the Company is overly
vulnerable to a single event which could cause a severe impact on the Company's financial position.
(2)
Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of NLIC and companies in which NLIC directly or indirectly has a controlling
financial interest. The consolidated financial statements include majority-owned subsidiaries and consolidated variable interest entities ("VIEs"). All significant intercompany accounts and transactions have been eliminated.
Entities in which NLIC does not have a controlling interest, but the Company has significant influence over the operating and financing
decisions, and also certain other investments, are reported using the equity method.
Use of Estimates
The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S.
("GAAP"). The preparation of the consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying
notes. Significant estimates include the balance and amortization of deferred policy acquisition costs ("DAC"), legal and regulatory reserves, certain investment and derivative valuations, future policy benefits and claims including the
valuation of embedded derivatives resulting from living benefit guarantees on variable annuity contracts, goodwill, provision for income taxes and valuation of deferred tax assets. Actual results could differ significantly from those estimates.
F-7
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Revenues and Benefits
Investment and universal life insurance products.
Investment products are long-duration contracts that do not subject the Company to
significant risk arising from mortality (the incidence of death) or morbidity (the incidence of disability resulting from disease or physical impairment). These include variable and fixed deferred annuity contracts in the accumulation phase with
both individuals and groups, as well as certain annuities without life contingencies. Universal life insurance products include long-duration insurance contracts that do not have fixed or guaranteed terms. These include universal life insurance,
variable universal life insurance, COLI, bank-owned life insurance ("BOLI") and other interest-sensitive life insurance policies. Revenues for investment products and universal life insurance products consist of net investment income,
surrender charges and other policy charges earned and assessed against policy account balances during the period. Policy charges are assessed on a daily or monthly basis and are recognized as revenue when assessed and earned. Assessments for
services provided in future periods are recorded as unearned revenue and recognized as revenue over the periods benefited. Surrender charges are recognized as revenue upon surrender of a contract in accordance with contractual terms. Policy benefits
and claims that are charged to expense include interest credited to policyholder accounts and benefits and claims incurred in the period in excess of related policyholder accounts.
Traditional life insurance products.
Traditional life insurance products include those products with fixed and guaranteed terms,
primarily consisting of whole life insurance, term life insurance and certain annuities with life contingencies. Premiums for traditional life insurance products are generally recognized as revenue when due. For certain annuities with life
contingencies, any excess of gross premium over the net premium is deferred and recognized with the amount of expected future benefits. Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the
contract. This association is accomplished through the provision for future policy benefits and the deferral and amortization of policy acquisition costs.
Future Policy Benefits and Claims
Investment and universal life insurance products.
The Company calculates its liability for future policy benefits and claims for
investment products in the accumulation phase and for universal life insurance policies at the policy accrued account balance, which represents participants' net deposits adjusted for investment performance, interest credited and applicable
contract charges.
The Company offers certain universal life insurance and variable universal life insurance with no-lapse guarantees and
variable annuity products with guaranteed minimum death benefits ("GMDB") and/or guaranteed minimum income benefits ("GMIB"). Liabilities for these guarantees are calculated by multiplying the current benefit ratio by the
cumulative assessments recorded from contract inception through the balance sheet date less the cumulative guaranteed benefit payments plus interest. The Company annually evaluates its experience and assumptions and adjusts the benefit ratio as
appropriate. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes with a related charge or credit to other benefits and claims in the period of evaluation. Determination of the expected
benefit payments and assessments are based on a range of scenarios and assumptions, including those related to market rates of return and volatility, contract surrenders and mortality experience. The accounting for these guarantees impacts estimated
gross profits used to calculate the balance and amortization of DAC and other expenses. Refer to Note 4 for further discussion of these guarantees.
Guarantees to variable annuity contractholders can include a return of no less than the total deposits made on the contract less any customer
withdrawals, total deposits made on the contract less any customer withdrawals plus a minimum return, or the highest contract value on a specified anniversary date minus any customer withdrawals following the contract anniversary. In addition, these
guarantees can include benefits payable in the event of death, upon annuitization, upon periodic withdrawal or at specified dates during the accumulation period. Refer to Note 4 for further discussion of these guarantees.
F-8
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The Company's guaranteed minimum accumulation benefit ("GMAB") and guaranteed
living withdrawal benefit ("GLWB") living benefit guarantees represent embedded derivatives in variable annuity contracts that are required to be separated from, and valued apart from, the host variable annuity contracts. The embedded
derivatives are held at fair value and include the present value of attributed fees. Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of net realized investment gains and losses. The fair
value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous assumptions including, but not
limited to, mortality, lapse rates, index volatility, benefit utilization and discounting. Benefit utilization includes wait period (the number of years the policyholder is assumed to wait prior to beginning withdrawals once eligible) and efficiency
of benefit utilization (the percent of the maximum permitted withdrawal that a policyholder takes). Discounting includes liquidity and non-performance risk (the risk that the liability will not be fulfilled) and affects the value at which the
liability is transferred. The assumptions used to calculate the fair value of embedded derivatives are reviewed as part of an annual comprehensive study of assumptions. Quarterly, consideration is given as to whether adjustments to these assumptions
are necessary.
The Company's equity indexed products (life and annuity) have the policyholders' interest credits based on market
performance with caps and floors. The interest credits represent embedded derivatives within the insurance contract and therefore are required to be separated from, and valued apart from, the host contracts. The embedded derivatives are held at fair
value. Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of interest credited. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial
assumptions. Projections of cash flows inherent in the valuation of the embedded derivative incorporate numerous assumptions including, but not limited to, mortality, lapse rates and index volatility. The assumptions used to calculate the fair value
of embedded derivatives are reviewed as part of an annual comprehensive study of assumptions. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary.
Traditional life insurance products.
The process of calculating reserve amounts for traditional life insurance products involves the use
of a number of assumptions, including those related to persistency, mortality, morbidity, interest rates (the rates expected to be paid or received on financial instruments) and certain other expenses.
The liability for future policy benefits and claims for traditional life insurance policies was determined using the net level premium method,
with weighted average interest rates of 6.6% and estimates of mortality, morbidity, investment yields and persistency that were used or being experienced at the time the policies were issued, with a provision for adverse deviation.
The liability for future policy benefits for certain annuities with life contingencies was calculated using the present value of future
benefits and certain expenses, discounted using weighted average interest rates of 4.8% with a provision for adverse deviation.
The
Company issues fixed and floating rate funding agreements to the Federal Home Loan Bank of Cincinnati ("FHLB"). The liability for such funding agreements is recorded in future policy benefits and claims at amortized cost. The amount of
collateralized funding agreements outstanding with the FHLB as of December 31, 2014 and 2013 was $1.8 billion and $913 million, respectively. In connection with an FHLB requirement for funding agreements, the Company held $35 million and $18
million of FHLB stock as of December 31, 2014 and 2013, respectively.
Reinsurance ceded
The Company cedes insurance to other companies in order to limit potential losses and to diversify its exposures. Such agreements do not
relieve the original insurer from its primary obligation to the policyholder in the event the reinsurer is unable to meet the obligations it has assumed. Reinsurance premiums ceded and reinsurance recoveries on benefits and claims incurred are
deducted from the respective income and expense accounts. Assets and liabilities related to reinsurance ceded are reported in the consolidated balance sheets on a gross basis, separately from the related future policy benefits and claims of the
Company.
Deferred Policy Acquisition Costs
The Company has deferred certain acquisition costs that are directly related to the successful acquisition of new and renewal insurance and
investment contracts. The methods and assumptions used to amortize and assess recoverability of the DAC balance depend on the type of product.
F-9
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Investment and universal life insurance products.
For certain investment and universal
life insurance products, DAC is amortized with interest over the lives of the policies in relation to the present value of estimated gross profits, which is determined primarily from projected interest margins, policy charges and net realized
investment gains and losses, less policy benefits and other expenses. The DAC asset related to investment and universal life insurance products is adjusted to reflect the impact of unrealized gains and losses on available-for-sale securities, with
the corresponding adjustment recorded in accumulated other comprehensive income ("AOCI"). This adjustment to DAC represents the change in amortization that would have been required as a charge or credit to operations had such unrealized
amounts been realized. DAC for investment and universal life insurance products is subject to recoverability testing in the year of policy issuance, and DAC for universal life insurance products is also subject to loss recognition testing at the end
of each reporting period.
The Company regularly evaluates and adjusts the DAC balance when actual gross profits in a given reporting
period vary from management's initial estimates. Additionally, the assumptions used in the estimation of gross profits are based on the Company's current best estimates of future events and are reviewed as part of an annual process. During
the annual process, the Company performs a comprehensive study of assumptions, including mortality and persistency studies, maintenance expense studies and an evaluation of projected general and separate account investment returns. The most
significant assumptions that are involved in the estimation of future gross profits include future net separate account investment performance, surrender/lapse rates, interest margins, renewal premiums and mortality. The Company refers to this
process as "unlocking." Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. The Company uses a reversion to the mean process to determine the assumption for the future net separate account
investment performance. This process assumes different performance levels over the next three years, such that the separate account mean return, measured from the anchor date to the end of the life of the product, equals the long-term assumption.
The Company's long-term assumptions for net separate account investment performance consist of assumed gross returns of 10.5% for equity funds and 5.0% for fixed funds.
Changes in assumptions and the emergence of actual gross profits can have a significant impact on the amount of DAC reported for investment and
universal life insurance products and their related amortization patterns. Additionally, the amortization of DAC can be affected by the change in the valuation of the Company's variable annuity guarantees. See
Future Policy Benefits and
Claims
for further discussion of the valuation of the Company's variable annuity guarantees. In the event actual experience differs from assumptions or future assumptions are revised, the Company will record an increase or decrease in DAC
amortization expense, which could be significant.
Traditional life insurance.
DAC is amortized with interest over the
premium-paying
period of the related policies in proportion to premium revenue recognized. These assumptions are consistent with those used in the calculation of liabilities for future policy benefits at issuance.
DAC is evaluated for recoverability at the time of policy issuance, and loss recognition testing is conducted each reporting period.
Refer
to Note 5 for discussion regarding assumption changes impacting DAC amortization and related balances.
Investments
Available-for-sale securities
.
Available-for-sale
securities are reported at fair value, with unrealized holding gains and losses reported as a separate component of other comprehensive income, net of adjustments for DAC and other expenses, future policy benefits and claims, policyholder dividend
obligations and deferred federal income taxes. Realized gains and losses on sales of available-for-sale securities are recognized in income based on the specific identification method. Interest and dividend income is recognized when earned.
As of December 31, 2014 and 2013, 99% of fixed maturity securities were priced using external source data. Independent pricing services
are most often utilized (87% and 86% as of December 31, 2014 and 2013, respectively) to determine the fair value of securities for which market quotations are available. For these securities, the Company obtains the pricing services'
methodologies, inputs and assumptions and classifies the investments accordingly in the fair value hierarchy.
A corporate pricing matrix
is used in valuing certain corporate debt securities. The corporate pricing matrix is developed using private spreads for corporate securities with varying weighted average lives and credit quality ratings. The weighted average life and credit
quality rating of a particular fixed maturity security to be priced using the corporate pricing matrix are important inputs into the model and are used to determine a corresponding spread that is added to the appropriate U.S. Treasury yield to
create an estimated market yield for that security. The estimated market yield and other relevant factors are then used to estimate the fair value of the particular security.
F-10
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Non-binding broker quotes are also utilized to determine the fair value of certain corporate
debt, mortgage-backed and other asset-backed securities when quotes are not available from independent pricing services, corporate pricing matrix or internal pricing models. These securities are classified with the lowest priority in the fair value
hierarchy as only one broker quote is ordinarily obtained, the investment is not traded on an exchange, the pricing is not available to other entities and/or the transaction volume in the same or similar investments has decreased. Inputs used in the
development of prices are not provided to the Company by the brokers, as the brokers often do not provide the necessary transparency into their quotes and methodologies. At least annually, the Company performs reviews and tests to ensure that quotes
are a reasonable estimate of the investments' fair value. Price movements of broker quotes are subject to validation and require approval from the Company's management. Management uses its knowledge of the investment and current market
conditions to determine if the price is indicative of the investment's fair value.
When the collectability of contractual interest
payments on fixed maturity securities is considered doubtful, such securities are placed in non-accrual status and any accrued interest is excluded from investment income. These securities are not restored to accrual status until the Company
determines that payment of future principal and interest is probable.
For investments in certain residential and commercial
mortgage-backed securities, the Company recognizes income and amortizes discounts and premiums using the effective-yield method, based on prepayment assumptions and the estimated economic life of the securities. When actual prepayments differ
significantly from estimated prepayments, the effective-yield is recalculated to reflect actual payments to date and anticipated future payments. Any resulting adjustment is included in net investment income in the period the estimates are revised.
All other investment income is recorded using the effective-yield method without anticipating the impact of prepayments.
The Company
periodically reviews its available-for-sale securities to determine if any decline in fair value to below amortized cost is other-than-temporary. Factors considered in determining whether a decline is other-than-temporary include the length of time
a security has been in an unrealized loss position, the severity of the unrealized loss, reasons for the decline in value and expectations for the amount and timing of a recovery in fair value.
In assessing corporate debt securities for other-than-temporary impairment, the Company evaluates the ability of the issuer to meet its debt
obligations, the value of the company or specific collateral securing the debt, the Company's intent to sell the security and whether it is more likely than not the Company will be required to sell the security before the recovery of its
amortized cost basis. The Company evaluates U.S. government and agencies, as well as obligations of states, political subdivisions and foreign governments for other-than-temporary impairment by examining similar characteristics.
When evaluating whether residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities are
other-than-temporarily impaired, the Company examines characteristics of the underlying collateral, such as delinquency and default rates, the quality of the underlying borrower, the type of collateral in the pool, the vintage year of the
collateral, subordination levels within the structure of the collateral pool, the quality of any credit guarantors, the Company's intent to sell the security and whether it is more likely than not it will be required to sell the security before
the recovery of its amortized cost basis.
The Company evaluates its intent to sell on an individual security basis. Other-than-temporary
impairment losses on securities when the Company does not intend to sell the security and it is not more likely than not it will be required to sell the security prior to recovery of the security's amortized cost basis are bifurcated, with the
credit portion of the impairment loss being recognized in earnings and the non-credit loss portion of the impairment and any subsequent changes in the fair value of those debt securities being recognized in other comprehensive income, net of
applicable taxes and other offsets. To estimate the credit portion of an impairment loss recognized in earnings, the Company considers the present value of the cash flows. To the extent that the present value of cash flows generated by a debt
security is less than the amortized cost, an other-than-temporary impairment is recognized through earnings.
It is possible that further
declines in fair values of such investments, or changes in assumptions or estimates of anticipated recoveries and/or cash flows, may cause further other-than-temporary impairments in the near term, which could be significant.
Mortgage loans, net of allowance
. The Company holds commercial mortgage loans that are collateralized by properties throughout the U.S.
These mortgage loans are further segregated into the following classes based on the unique risk profiles of the underlying property types: office, industrial, retail, apartment and other. Mortgage loans held-for-investment are held at amortized cost
less a valuation allowance.
As part of the underwriting process, specific guidelines are followed to ensure the initial quality of a new
mortgage loan. Third-party appraisals are generally obtained to support loaned amounts, as the loans are usually collateral dependent.
F-11
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The collectability and value of a mortgage loan are based on the ability of the borrower to
repay and/or the value of the underlying collateral. Many of the Company's commercial mortgage loans are structured with balloon payment maturities, exposing the Company to risks associated with the borrowers' ability to make the balloon
payment or refinance the property.
The Company actively monitors the credit quality of its mortgage loans to support the development of
the valuation allowance. This monitoring process includes quantitative analyses, which facilitate the identification of deteriorating loans, and qualitative analyses, which consider other factors relevant to the borrowers' ability to repay.
Surveillance procedures identify loans with deteriorating credit fundamentals and these loans are evaluated based on the severity of their deterioration and management's judgment as to the likelihood of loss.
Mortgage loans require a loan-specific reserve when, based on current information and events, it is probable that the Company will be unable to
collect all amounts due according to the contractual terms of the loan agreement. When management determines that a loan requires a loan-specific reserve, a provision for loss is established equal to the difference between the carrying value and
either the fair value of the collateral less costs to sell or the present value of expected future cash flows discounted at the loan's market interest rate. Loan-specific reserve charges are recorded in net realized investment gains and losses.
In the event a loan-specific reserve charge is reversed, the recovery is also recorded in net realized investment gains and losses.
In
addition to the loan-specific reserves, the Company maintains a non-specific reserve based primarily on loan surveillance categories and property type classes, which reflects management's best estimate of probable credit losses inherent in the
portfolio of loans without specific reserves as of the balance sheet date. Management's periodic evaluation of the adequacy of the non-specific reserve is based on past loan loss experience, known and inherent risks in the portfolio, adverse
situations that may affect a borrower's ability to repay, the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Non-specific reserve changes are recorded in
net realized investment gains and losses.
Interest income on performing mortgage loans is recognized over the life of the loan using the
effective-yield method. Loans in default or in the process of foreclosure are placed on non-accrual status. Interest received on non-accrual status mortgage loans is included in net investment income in the period received. Loans are considered
delinquent when contractual payments are 90 days past due.
Policy loans
. Policy loans, which are collateralized by the related
insurance policy, are held at the outstanding principal balance and do not exceed the net cash surrender value of the policy. As such, no valuation allowance for policy loans is required.
Short-term investments
. Short-term investments consist primarily of highly liquid mutual funds and government agency discount notes with
maturities of twelve months or less at acquisition. The Company and various affiliates maintain agreements with Nationwide Cash Management Company ("NCMC"), an affiliate, under which NCMC acts as a common agent in handling the purchase and
sale of short-term securities for the respective accounts of the participants. Amounts on deposit with NCMC for the benefit of the Company are included in short-term investments on the consolidated balance sheets. The Company carries short-term
investments at fair value.
Other investments
. Other investments consist primarily of equity method investments in private equity,
hedge funds and partnerships, as well as COLI, trading securities, equity securities and capital stock with the FHLB.
Securities
lending
. The Company has entered into securities lending agreements with a custodial bank whereby eligible securities are loaned to third parties, primarily major brokerage firms. These transactions are used to generate additional income on the
securities portfolio. The Company is entitled to receive from the borrower any payments of interest and dividends received on loaned securities during the loan term. The agreements require a minimum of 102% of the fair value of loaned securities to
be held as collateral. Cash collateral is invested by the custodial bank in investment-grade securities, which are included in the total investments of the Company. Periodically, the Company may receive non-cash collateral, which would be recorded
off-balance sheet. The Company recognizes loaned securities in either available-for-sale or other investments. A securities lending payable is recorded in other liabilities for the amount of cash collateral received. Net income received from
securities lending activities is included in net investment income. As of December 31, 2014 and 2013, the fair value of loaned securities was $254 million and $116 million, respectively.
Variable interest entities
. In the normal course of business, the Company has relationships with VIEs. If the Company determines that it
has a variable interest and is the primary beneficiary, it consolidates the VIE. The Company is the primary beneficiary if the Company has the power to direct the activities of the VIE that most significantly impact the economic performance of the
entity and the obligation to absorb losses or receive benefits from the entity that could be potentially significant to the VIE. This determination is based on a review of the entity's contract and other deal related information, such as the
entity's equity investment at risk, decision-making abilities, obligations to absorb economic risks and right to receive economic rewards of the entity.
F-12
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The majority of the VIEs consolidated by the Company are due to guarantees provided to
limited partners related to the amount of tax credits that will be generated by Low-Income-Housing Tax Credit Funds ("Tax Credit Funds"). The results of operations and financial position of each VIE for which the Company is the primary
beneficiary, as well as the corresponding noncontrolling interests, are recorded in the consolidated financial statements. Ownership interests held by unrelated third parties in the consolidated VIEs are presented as noncontrolling interests in the
equity section of the consolidated financial statements. Losses attributable to noncontrolling interests are excluded from the net income attributable to NLIC on the consolidated statements of operations.
The Company invests in fixed maturity securities that could qualify as VIEs, including corporate securities, mortgage-backed securities and
asset-backed securities. The Company is not the primary beneficiary of these securities as the Company does not have the power to direct the activities that most significantly impact the entities' performance. The Company's maximum
exposure to loss is limited to the carrying values of these securities. There are no liquidity arrangements, guarantees or other commitments by third parties that affect the fair value of the Company's interest in these assets. Refer to Note 6
for additional disclosures related to these investments.
The Company is not required and does not intend to provide financial or other
support outside of contractual requirements to any VIE.
Derivative Instruments
The Company uses derivative instruments to manage exposures and mitigate risks primarily associated with interest rates, equity markets and
foreign currency. These derivative instruments primarily include interest rate swaps, futures contracts and options. Certain features embedded in the Company's indexed products and certain variable annuity contracts require derivative
accounting. Refer to the prior discussion of
Future Policy Benefits and Claims
for a description of the valuation applicable to these products. All derivative instruments are held at fair value and are reflected as assets or liabilities in
the consolidated balance sheets.
The fair value of derivative instruments is determined using various valuation techniques relying
predominantly on observable market inputs. These inputs include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels. In cases where observable inputs are not available, the
Company will utilize non-binding broker quotes to determine fair value, and these instruments are classified accordingly in the fair value hierarchy. Price movements of these broker quotes are subject to validation and require approval from the
Company's management. Management uses models to internally value the instruments for comparison to the values received through broker quotes.
For derivatives that are not designated for hedge accounting, the gain or loss on the derivative is primarily recognized in net realized
investment gains and losses.
For derivative instruments that are designated and qualify for fair value hedge accounting, the gain or loss
on the derivative instrument, as well as the hedged item to the extent of the risk being hedged, are recognized in net realized investment gains and losses.
For derivative instruments that are designated and qualify for cash flow hedge accounting, the effective portion of the gain or loss on the
derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods that the hedged transaction impacts earnings. The ineffective portion of the derivative's change in value, if any, along with
any of the derivative's change in value that is excluded from the assessment of hedge effectiveness, are recorded in net realized investment gains and losses.
The Company's derivative transaction counterparties are generally financial institutions. To reduce the credit risk associated with open
contracts, the Company enters into master netting agreements, which permit the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. In addition, the Company attempts to reduce credit risk by
obtaining collateral from counterparties. The determination of the need for and the levels of collateral vary based on an assessment of the credit risk of the counterparty. The Company accepts collateral in the form of cash and marketable
securities.
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's
view of market assumptions in the absence of observable market information. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In determining fair value, the Company uses
various methods, including market and income approaches.
F-13
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The Company categorizes its financial instruments into a three-level hierarchy based on the
priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the
inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.
The Company categorizes assets and liabilities held at fair value in the consolidated balance sheets as follows:
Level 1. Unadjusted quoted prices accessible in active markets for identical assets or liabilities at the measurement date and mutual funds
where the value per share (unit) is determined and published daily and is the basis for current transactions.
Level 2. Unadjusted quoted
prices for similar assets or liabilities in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means. Primary inputs to
this valuation technique may include comparative trades, bid/asks, interest rate movements, U.S. Treasury rates, London Interbank Offered Rate ("LIBOR"), prime rates, cash flows, maturity dates, call ability, estimated prepayments, and/or
underlying collateral values.
Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to
the overall fair value measurement. Inputs reflect management's best estimate about the assumptions market participants would use at the measurement date in pricing the asset or liability. Consideration is given to the risk inherent in both the
method of valuation and the valuation inputs.
The Company reviews its fair value hierarchy classifications for assets and liabilities
quarterly. Changes in the observability of significant valuation inputs identified during these reviews may trigger reclassifications. Reclassifications are reported as transfers at the beginning of the period in which the change occurs.
Fair Value Option
The Company assesses the fair value option election for newly acquired assets or liabilities on a prospective basis. There are no material
assets or liabilities for which the Company has elected the fair value option.
Federal Income Taxes
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to
taxable income or loss in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period
that includes the enactment date. Valuation allowances are recorded to reduce a deferred tax asset to the amount expected to be realized. Interest expense and any associated penalties which relate to tax years still subject to review by the Internal
Revenue Service ("IRS") are recorded as income tax expense.
The Company provides for federal income taxes based on amounts the
Company believes it ultimately will owe. Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits. In the event the ultimate deductibility of certain
items or the realization of certain tax credits differs from estimates, the Company may be required to change the provision for federal income taxes recorded in the consolidated financial statements, which could be significant.
Tax reserves are reviewed regularly and are adjusted as events occur that the Company believes impact its liability for additional taxes, such
as the lapsing of applicable statutes of limitations, conclusion of tax audits or substantial agreement with taxing authorities on the deductibility/nondeductibility of uncertain items, additional exposure based on current calculations,
identification of new issues, release of administrative guidance or rendering of a court decision affecting a particular tax issue.
NLIC
files a separate consolidated federal income tax return with its subsidiaries and is eligible to join the NMIC consolidated tax return group in 2015.
Cash and Cash Equivalents
Cash and cash equivalents include highly liquid investments with original maturities of less than three months.
F-14
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Goodwill
In connection with business acquisitions, the Company recognizes goodwill as the excess of the purchase price over the fair value of net assets
acquired as goodwill. Goodwill is not amortized, but is evaluated for impairment at the reporting unit level annually. Goodwill of a reporting unit is tested for impairment on an interim basis, in addition to the annual evaluation, if an event
occurs or circumstances change which would more likely than not reduce the fair value of a reporting unit below its carrying amount. If a reporting unit's fair value is less than its carrying value, the Company will calculate implied goodwill.
An impairment would be recognized on a reporting unit for the amount that the carrying value of its goodwill exceeds the implied value of its goodwill.
The process of evaluating goodwill for impairment requires several judgments and assumptions to be made to determine the fair value of the
reporting units, including the method used to determine fair value, discount rates, expected levels of cash flows, revenues and earnings, and the selection of comparable companies used to develop market-based assumptions. The Company performed its
2014 annual impairment test and determined that no impairment was required.
Closed Block
In connection with the sponsored demutualization of Provident Mutual Life Insurance Company ("Provident") prior to its acquisition by
the Company, Provident established a closed block for the benefit of certain classes of individual participating policies that had a dividend scale payable in 2001. Assets were allocated to the closed block in an amount that produces cash flows
which, together with anticipated revenues from closed block business, is reasonably expected to be sufficient to provide for (1) payment of policy benefits, specified expenses and taxes, and (2) the continuation of dividends throughout the
life of the Provident policies included in the closed block based upon the dividend scales payable for 2001, if the experience underlying such dividend scales continues.
Assets allocated to the closed block benefit only the holders of the policies included in the closed block and will not revert to the benefit
of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the closed block and other portions of the Company's general account, any of its separate accounts, or any affiliate of the Company without the
approval of the Pennsylvania Insurance Department and Ohio Department of Insurance ("ODI"). The closed block will remain in effect as long as any policy in the closed block is in force.
If, over time, the aggregate performance of the closed block assets and policies is better than was assumed in funding the closed block,
dividends to policyholders will increase. If, over time, the aggregate performance of the closed block assets and policies is less favorable than was assumed in the funding, dividends to policyholders could be reduced. If the closed block has
insufficient funds to make guaranteed policy benefit payments, such payments will be made from the Company's assets outside of the closed block, which are general account assets.
The assets and liabilities allocated to the closed block are recorded in the Company's consolidated financial statements on the same basis
as other similar assets and liabilities. The carrying amount of closed block liabilities in excess of the carrying amount of closed block assets at the date Provident was acquired by the Company represents the maximum future earnings from the assets
and liabilities designated to the closed block that can be recognized in income, for the benefit of stockholders, over the period the policies in the closed block remain in force.
If actual cumulative earnings exceed expected cumulative earnings, the expected earnings are recognized in income. This is because the excess
actual cumulative earnings over expected cumulative earnings, which represents undistributed accumulated earnings attributable to policyholders, is recorded as a policyholder dividend obligation. Therefore, the excess will be paid to closed block
policyholders as an additional policyholder dividend expense in the future unless it is otherwise offset by future performance of the closed block that is less favorable than originally expected. If actual cumulative performance is less favorable
than expected, actual earnings will be recognized in income.
The principal cash flow items that affect the amount of closed block assets
and liabilities are premiums, net investment income, purchases and sales of investments, policyholder benefits, policyholder dividends, premium taxes and income taxes. The principal income and expense items excluded from the closed block are
management and maintenance expenses, commissions and net investment income and realized gains and losses on investments held outside of the closed block that support the closed block business, all of which enter into the determination of total gross
margins of closed block policies. See Note 10 for further disclosure.
Separate Accounts
Separate account assets and liabilities represent contractholders' funds that have been legally segregated into accounts with specific
investment objectives. In the separate account, investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder. Separate account assets are primarily comprised of public, privately
registered and non-registered mutual funds. Separate account assets are recorded at fair value based on the methodology that would be applicable to the underlying assets. The value of separate account liabilities is set to equal the fair value for
separate account assets.
F-15
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Participating Business
Participating business, which refers to policies that participate in profits through policyholder dividends, represented approximately 4% of
the Company's life insurance in force in 2014 and 2013 and 5% in 2012 and 37% of the number of life insurance policies in force in 2014 (38% in 2013 and 40% in 2012). The provision for policyholder dividends was based on the respective
year's dividend scales and has been included in future policy benefits and claims in the consolidated balance sheets.
Subsequent Events
The Company evaluated subsequent events through February 25, 2015, the date the consolidated financial statements were issued.
(3)
Recently Issued Accounting Standards
Adopted Accounting Standards
On January 1, 2014, the Company adopted ASU 2013-04, which amends existing guidance in ASC 405,
Liabilities
. The ASU provides
guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The adoption of this guidance had no impact
on the Company's consolidated financial statements.
On January 1, 2014, the Company adopted ASU 2013-08, which amends existing
guidance in ASC 946,
Financial Services – Investment Companies
. The amended guidance modifies the definition of investment companies and requires new disclosures around the status and operations of investment companies. In addition, the
guidance requires an investment company to measure its noncontrolling interests in another investment company at fair value rather than the equity method of accounting. The adoption of this guidance had no impact on the Company's consolidated
financial statements.
On January 1, 2014, the Company adopted ASU 2013-11, which amends existing guidance in ASC 740,
Income
Taxes
. The amended guidance provides clarification on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The adoption of this
guidance had no impact on the Company's consolidated financial statements.
Pending Accounting Standards
In January 2014, the FASB issued ASU 2014-01, which amends existing guidance in ASC 323,
Equity Method and Joint Ventures
. The amended
guidance permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The Company will adopt the
ASU for interim and annual reporting periods beginning January 1, 2015. The Company is currently in the process of determining the impact of adoption.
In January 2014, the FASB issued ASU 2014-04, which amends existing guidance in ASC 310,
Receivables
and ASC 360,
Property, Plant and
Equipment
. The amended guidance provides clarification on the accounting for situations in which a creditor obtains collateral assets in satisfaction of all or part of a receivable. The Company will adopt the ASU for interim and annual periods
beginning January 1, 2015. The Company is currently in the process of determining the impact of adoption.
In May 2014, the FASB
issued ASU 2014-09, which amends existing guidance in ASC 606,
Revenue from Contracts with Customer
s and ASC 340,
Other Assets and Deferred Costs – Contracts with Customers
. The amended guidance develops a single standard to
recognize revenue when the identified performance obligation is satisfied. The Company will adopt the ASU for interim and annual periods beginning January 1, 2017. The Company is currently in the process of determining the impact of adoption.
In June 2014, the FASB issued ASU 2014-11, which amends existing guidance in ASC 860,
Transfers and Servicing
. The amended guidance
amends certain criteria when evaluating effective control in certain repurchase agreement transactions and eliminates specific guidance on repurchase financing and requires that these transactions be treated in the same manner as repurchase
transactions. Additionally, the amended guidance requires additional disclosures for repurchase agreements. The Company will adopt the ASU for interim and annual periods beginning January 1, 2015. The Company is currently in the process of
determining the impact of adoption.
In August 2014, the FASB issued ASU 2014-14, which amends ASC 310,
Receivables
. The amended
guidance requires creditors to classify certain foreclosed government guaranteed mortgage loans as a receivable from the guarantor that is measured at the amount expected to be recovered under the guarantee, without treating the guarantee as a
separate unit of account. The Company will adopt the ASU for interim and annual periods beginning January 1, 2015. The Company is currently in the process of determining the impact of adoption.
F-16
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
In November 2014, the FASB issued ASU 2014-17, which amends ASC 805,
Business
Combinations
. The amended guidance gives an acquired entity the option to apply pushdown accounting in its stand-alone financial statements. The Company will adopt the ASU for interim and annual periods beginning January 1, 2015. The
Company is currently in the process of determining the impact of adoption.
(4)
Certain Long-Duration Contracts
Variable Annuity Contracts
Contractholder assets are invested in general and separate account investment options as directed by the contractholder. The Company issues
variable annuity contracts through its separate accounts. The Company also provides various forms of guarantees to benefit the related contractholders. The Company provides five primary guarantee types: (1) GMDB; (2) GLWB; (3) GMAB;
(4) a hybrid guarantee with GMAB and GLWB; and (5) GMIB.
The GMDB, offered on every variable annuity contract, provides a
specified minimum return upon death. Many of these death benefits are spousal, whereby a death benefit will be paid upon death of the first spouse. The survivor has the option to terminate the contract or continue it by having the death benefit paid
into the contract and having a second death benefit paid upon the survivor's death.
The GLWB, offered in the Company's Lifetime
Income products, are living benefits that provide for enhanced retirement income security without the liquidity loss associated with annuitization. The withdrawal rates vary based on the age when withdrawals begin and are applied to a benefit base
to determine the guaranteed lifetime income amount available to a contractholder. The benefit base is equal to the variable annuity premium at contract issuance and may increase as a result of a feature driven by account performance and policy
duration.
The GMAB, which was offered in the Company's Capital Preservation Plus product, is a living benefit that provides the
contractholder with a guaranteed return of deposits, adjusted proportionately for withdrawals, after a specified time period (5, 7 or 10 years) selected by the contractholder at the issuance of the variable annuity contract. In some cases, the
contractholder also has the option, after a specified time period, to drop the guarantee and continue the variable annuity contract without the GMAB. In general, the GMAB requires a minimum allocation to guaranteed term options or adherence to
limitations required by an approved asset allocation strategy.
The GMIB, which was offered with several variable annuity contracts, is a
living benefit that provides the contractholder with a guaranteed annuitization stream of income.
The following table summarizes
information regarding variable annuity contracts with guarantees invested in general and separate accounts, as of the dates indicated (a contract may contain multiple guarantees):
December 31, 2014
December 31, 2013
(in millions)
General
account
value
Separate
account
value
Net
amount
at risk
1
Average
age
2
General
account
value
Separate
account
value
Net
amount
at risk
1
Average
age
2
Contracts with GMDB:
Return of net deposits
$
872
$
23,079
$
21
65
$
916
$
19,927
$
13
64
Minimum return or anniversary contract value
1,918
33,662
292
69
2,031
33,520
237
69
Total contracts with GMDB
$
2,790
$
56,741
$
313
68
$
2,947
$
53,447
$
250
67
GLWB Minimum return or anniversary contract value
$
135
$
31,031
$
195
66
$
178
$
28,071
$
74
64
GMAB Return of net deposits
3
$
43
$
1,552
$
—
67
$
92
$
2,383
$
—
64
GMIB Minimum return or anniversary contract value
$
45
$
451
$
1
66
$
49
$
510
$
—
64
1
Net amount at risk is calculated on a policy-level basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit).
2
Represents the weighted average attained age of contractholders.
3
Contracts with the hybrid accumulation/withdrawal benefits are included with the accumulation benefits contracts.
F-17
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following table summarizes the reserve balances for guarantees on variable annuity
contracts, as of the dates indicated:
December 31,
(in millions)
2014
2013
GMDB
$
76
$
55
GLWB
1
$
174
$
(1,075
)
GMAB
1, 2
$
3
$
(19
)
GMIB
$
1
$
2
1
The changes in reserve balances for withdrawal benefits and accumulation benefits were primarily driven by declines in key interest rates, partially offset by rising equity markets during 2014. Refer to Note 7 for
discussion of the related derivative programs.
2
Contracts with the hybrid accumulation/withdrawal benefits are included with the accumulation benefits contracts.
Paid claims for GMDBs were $11 million and $22 million for the years ended December 31, 2014 and 2013, respectively.
Paid claims for GLWBs, GMABs and GMIBs were immaterial for the years ended December 31, 2014 and 2013.
The following table summarizes the account balances of deferred variable annuity contracts with guarantees invested in separate accounts, as of
the dates indicated:
December 31,
(in millions)
2014
2013
Mutual funds:
Bond
$
5,280
$
5,685
Domestic equity
47,316
43,505
International equity
2,969
3,179
Total mutual funds
$
55,565
$
52,369
Money market funds
1,176
1,078
Total
1
$
56,741
$
53,447
1
Excludes $31.3 billion and $30.6 billion as of December 31, 2014 and 2013, respectively, of separate account assets not related to deferred variable annuity contracts with guarantees, primarily attributable to
retirement plan, variable universal life and COLI products.
The Company did not transfer any assets from the general account
to the separate account to cover guarantees for any of its variable annuity contracts during the years ended December 31, 2014 and 2013.
Universal and Variable Universal Life Insurance Contracts
The Company offers certain universal life and variable universal life insurance products with no-lapse guarantees. These no-lapse guarantees
provide that a policy will not lapse so long as the policyholder makes minimum premium payments. The reserve balances on these guarantees were $401 million and $325 million as of December 31, 2014 and 2013, respectively. Paid claims on
contracts maintained in force by these guarantees were immaterial for the years ended December 31, 2014 and 2013.
The following table
summarizes information regarding universal and variable universal life insurance contracts with no-lapse guarantees invested in general and separate accounts, as of the dates indicated:
(in millions)
General account
value
Separate account
value
Adjusted insurance
in force
1
Average age
2
December 31, 2014
$
1,954
$
2,191
$
41,484
51
December 31, 2013
3
$
1,522
$
2,235
$
36,956
51
1
The adjusted insurance in force is calculated on a policy-level basis and equals the respective guaranteed death benefit less the account value.
2
Represents the weighted average attained age of contractholders.
3
Amounts above are based on all policies with no-lapse guarantees. Previously, only those policies with a no-lapse guarantee carrying a reserve were included in the disclosure.
F-18
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(5)
Deferred Policy Acquisition Costs
The following table summarizes changes in the DAC balance, as of the dates indicated:
December 31,
(in millions)
2014
2013
2012
Balance at beginning of year
$
3,778
$
3,249
$
3,487
Capitalization of DAC
685
604
470
Amortization of DAC, excluding unlocks
(397
)
(373
)
(525
)
Amortization of DAC related to unlocks
190
(1
)
(50
)
Adjustments to DAC related to unrealized gains and losses on available-for-sale securities
(193
)
299
(133
)
Balance at end of year
$
4,063
$
3,778
$
3,249
During 2014, the Company recognized a decrease in DAC amortization of $190 million as a result of the annual
comprehensive review of model assumptions and enhancements. The updated assumptions were primarily related to the actual performance of the block of business since the prior year review and the expectations for lapses, partially offset by an update
to the Company's long-term assumptions for separate account investment performance.
During 2013, the net change in DAC amortization
as a result of the annual comprehensive review of model assumptions was immaterial.
During 2012, the Company incurred additional DAC
amortization of $50 million as a result of the annual comprehensive review of model assumptions, as well as a deviation from equity market performance as compared to assumed net separate account returns. The updated assumptions were primarily
related to actual gross profits and the in force block of business deviating from expectations, renewal premiums, general account margins and lapses.
F-19
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(6)
Investments
Available-for-Sale Securities
The following table summarizes the amortized cost, unrealized gains and losses and fair value of available-for-sale securities, as of the dates
indicated:
(in millions)
Amortized
cost
Unrealized
gains
Unrealized
losses
Fair value
December 31, 2014
Fixed maturity securities:
U.S. government and agencies
$
448
$
79
$
—
$
527
Obligations of states, political subdivisions and foreign governments
1,966
320
1
2,285
Corporate public securities
19,851
1,519
120
21,250
Corporate private securities
4,398
286
34
4,650
Residential mortgage-backed securities
3,694
190
45
3,839
Commercial mortgage-backed securities
1,431
74
3
1,502
Other asset-backed securities
1,410
27
72
1,365
Total fixed maturity securities
$
33,198
$
2,495
$
275
$
35,418
Equity securities
6
15
—
21
Total available-for-sale securities
$
33,204
$
2,510
$
275
$
35,439
December 31, 2013
Fixed maturity securities:
U.S. government and agencies
$
484
$
79
$
2
$
561
Obligations of states, political subdivisions and foreign governments
1,892
111
40
1,963
Corporate public securities
18,004
1,076
295
18,785
Corporate private securities
4,374
258
38
4,594
Residential mortgage-backed securities
3,919
163
79
4,003
Commercial mortgage-backed securities
1,439
86
21
1,504
Other asset-backed securities
890
26
77
839
Total fixed maturity securities
$
31,002
$
1,799
$
552
$
32,249
Equity securities
6
18
—
24
Total available-for-sale securities
$
31,008
$
1,817
$
552
$
32,273
The fair value of the Company's investments may fluctuate significantly in response to changes in interest
rates, investment quality ratings and credit spreads. The Company has the ability and intent to hold equity securities until recovery. The Company does not have the intent to sell, nor is it more likely than not it will be required to sell, debt
securities in an unrealized loss position.
F-20
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following table summarizes the amortized cost and fair value of fixed maturity
securities, by contractual maturity, as of December 31, 2014. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without early redemption penalties.
(in millions)
Amortized
cost
Fair
value
Fixed maturity securities:
Due in one year or less
$
1,018
$
1,037
Due after one year through five years
9,196
9,898
Due after five years through ten years
8,267
8,617
Due after ten years
8,182
9,160
Subtotal
$
26,663
$
28,712
Residential mortgage-backed securities
3,694
3,839
Commercial mortgage-backed securities
1,431
1,502
Other asset-backed securities
1,410
1,365
Total fixed maturity securities
$
33,198
$
35,418
The following table summarizes components of net unrealized gains and losses, as of the dates indicated:
December 31,
(in millions)
2014
2013
Net unrealized gains on available-for-sale securities, before adjustments, taxes and fair value hedging
$
2,235
$
1,265
Net unrealized gains on available-for-sale securities, before adjustments and
taxes
1
$
2,235
$
1,265
Adjustment to DAC and other expense
(372
)
(176
)
Adjustment to future policy benefits and claims
(159
)
(89
)
Adjustment to policyholder dividend obligation
(120
)
(85
)
Deferred federal income tax expense
(548
)
(314
)
Net unrealized gains on available-for-sale securities
$
1,036
$
601
1
Includes net unrealized losses of $9 million and $40 million as of December 31, 2014 and 2013, respectively, related to the non-credit portion of other-than-temporarily impaired securities.
The following table summarizes the change in net unrealized gains and losses reported in accumulated other comprehensive income, for the years
ended:
December 31,
(in millions)
2014
2013
Balance at beginning of year
$
601
$
1,264
Unrealized gains and losses arising during the year:
Net unrealized gains (losses) on available-for-sale securities before adjustments
939
(1,657
)
Non-credit impairments and subsequent changes in fair value of impaired debt securities
31
8
Net adjustment to DAC and other expense
(196
)
306
Net adjustment to future policy benefits and claims
(70
)
206
Net adjustment to policyholder dividend obligations
(35
)
92
Related federal income tax (expense) benefit
(234
)
366
Unrealized gains (losses) on available-for-sale securities
$
435
$
(679
)
Reclassification adjustment for net losses realized on available-for-sale securities, net of tax benefit ($0 and $8 as of
December 31, 2014 and 2013, respectively)
—
(16
)
Net unrealized gains (losses) on available-for-sale securities
$
435
$
(663
)
Balance at end of year
$
1,036
$
601
F-21
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following table summarizes, by asset class, available-for-sale securities, in an
unrealized loss position based on the amount of time each type of security has been in an unrealized loss position, as well as the related fair value, as of the dates indicated:
Less than or equal to one year
More than one year
Total
(in millions)
Fair
value
Unrealized
losses
Fair
value
Unrealized
losses
Unrealized
losses
1
December 31, 2014
Fixed maturity securities:
Corporate public securities
$
1,642
$
63
$
1,578
$
57
$
120
Residential mortgage-backed securities
268
2
487
43
45
Other asset-backed securities
662
5
493
67
72
Other
589
27
457
11
38
Total
2
$
3,161
$
97
$
3,015
$
178
$
275
December 31, 2013
Fixed maturity securities:
Corporate public securities
$
4,889
$
256
$
442
$
39
$
295
Residential mortgage-backed securities
725
16
604
63
79
Other asset-backed securities
507
6
144
71
77
Other
1,838
85
222
16
101
Total
2
$
7,959
$
363
$
1,412
$
189
$
552
1
As of December 31, 2014 and 2013, there were $66 million and $82 million, respectively, of unrealized losses related to available-for-sale securities with a fair value to amortized cost ratio of less than 80%.
2
Represents 541 and 816 available-for-sale securities in an unrealized loss position as of December 31, 2014 and 2013, respectively.
Residential mortgage-backed securities are assessed for impairment using default estimates based on loan level data, where available. Where
loan level data is not available, a proxy based on collateral characteristics is used. The impairment assessment considers loss severity as a function of multiple factors, including unpaid balance, interest rate, mortgage insurance ratios, assessed
property value at origination, change in property value, loan-to-value ("LTV") ratio at origination and prepayment speeds. Cash flows generated by the collateral are then utilized, along with consideration for the instrument's
position in the overall structure, to determine cash flows associated with the security.
Certain other asset-backed securities are
assessed for impairment using expected cash flows based on various inputs, including default estimates based on the underlying corporate securities, historical and forecasted loss severities or other market inputs when recovery estimates are not
feasible. When the collateral is regional bank and insurance company trust preferred securities, default estimates used to estimate cash flows are based on U.S. Bank Rating service data and broker research.
The Company believes the unrealized losses on these available-for-sale securities represent temporary fluctuations in economic factors that are
not indicative of other-than-temporary impairment.
F-22
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Mortgage Loans, Net of Allowance
The following table summarizes the amortized cost of mortgage loans by method of evaluation for credit loss, and the related valuation
allowances by type of credit loss, as of the dates indicated:
December 31,
(in millions)
2014
2013
Amortized cost:
Loans with non-specific reserves
$
7,279
$
6,350
Loans with specific reserves
17
26
Total amortized cost
$
7,296
$
6,376
Valuation allowance:
Non-specific reserves
$
21
$
29
Specific reserves
5
6
Total valuation allowance
$
26
$
35
Mortgage loans, net of allowance
$
7,270
$
6,341
The following table summarizes activity in the valuation allowance for mortgage loans, for the years ended:
December 31,
(in millions)
2014
2013
2012
Balance at beginning of year
$
35
$
44
$
60
Current period provision
1
(8
)
(4
)
2
Recoveries
2
(1
)
(5
)
(15
)
Charge offs and other
—
—
(3
)
Balance at end of year
$
26
$
35
$
44
1
Includes specific reserve provisions and all changes in non-specific reserves.
2
Includes recoveries on sales and increases in the valuation of loans with specific reserves.
As of December 31, 2014 and 2013, the carrying values of commercial mortgage loans specifically reserved were $12 million and $20 million,
respectively, which is net of $5 million and $6 million, respectively, in specific reserves.
Interest income recognized on impaired
commercial mortgage loans was $1 million and $3 million for the years ended December 31, 2014 and 2013, respectively. The average recorded investment was $16 million and $30 million for the years ended December 31, 2014 and 2013,
respectively.
As of December 31, 2014 and 2013, the Company's mortgage loans classified as delinquent and/or in non-accrual
status were immaterial in relation to the total mortgage loan portfolio. The Company had no mortgage loans 90 days or more past due and still accruing interest.
Management evaluates the credit quality of individual mortgage loans and the portfolio as a whole through a number of loan quality
measurements, including, but not limited to, LTV and debt service coverage ("DSC") ratios. The LTV ratio is calculated as a ratio of the amortized cost of a loan to the estimated value of the underlying collateral. DSC is the amount of
cash flow generated by the underlying collateral of the mortgage loan available to meet periodic interest and principal payments of the loan. This process identifies mortgage loans representing the lowest risk profile and lowest potential for loss
and those representing the highest risk profile and highest potential for loss. These factors are updated and evaluated at least annually.
F-23
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following table summarizes the LTV ratio and DSC ratios of the mortgage loan portfolio,
as of the dates indicated:
LTV ratio
DSC ratio
(in millions)
Less
than
80%
80% -
less
than
90%
90% or
greater
Total
Greater
than
1.10
1.00-
1.10
Less
than
1.00
Total
December 31, 2014
Apartment
$
2,156
$
111
$
17
$
2,284
$
2,252
$
26
$
6
$
2,284
Industrial
1,131
34
35
1,200
1,048
89
63
1,200
Office
1,004
16
20
1,040
990
4
46
1,040
Retail
2,506
64
11
2,581
2,421
128
32
2,581
Other
191
—
—
191
191
—
—
191
Total
1
$
6,988
$
225
$
83
$
7,296
$
6,902
$
247
$
147
$
7,296
December 31, 2013
Apartment
$
1,788
$
52
$
30
$
1,870
$
1,857
$
6
$
7
$
1,870
Industrial
951
52
86
1,089
893
122
74
1,089
Office
837
30
38
905
800
43
62
905
Retail
2,236
41
21
2,298
2,214
61
23
2,298
Other
213
—
1
214
214
—
—
214
Total
2
$
6,025
$
175
$
176
$
6,376
$
5,978
$
232
$
166
$
6,376
1
As of December 31, 2014, the weighted average DSC ratios for the respective LTV ratio ranges above were 1.97, 1.27 and 0.90, with a total weighted average DSC ratio of 1.93. As of December 31, 2014, the
weighted average LTV ratios for the respective DSC ratio ranges above were 60%, 59% and 90%, with a total weighted average LTV ratio of 60%.
2
As of December 31, 2013, the weighted average DSC ratios for the respective LTV ratio ranges above were 1.77, 1.22 and 1.00, with a total weighted average DSC ratio of 1.74. As of December 31, 2013, the
weighted average LTV ratios for the respective DSC ratio ranges above were 60%, 61% and 91%, with a total weighted average LTV ratio of 61%.
While these loan quality measurements contribute to management's assessment of relative credit risk in the mortgage loan portfolio for the
dates indicated, based on underwriting criteria and ongoing assessment of the properties' performance, management believes the amounts, net of valuation allowance, are collectible.
Available-For-Sale Securities on Deposit, Held in Trust and Pledged as Collateral
Available-for-sale securities with a carrying value of $8 million were on deposit with various regulatory agencies as required by law as of
December 31, 2014 and 2013. Additionally, available-for-sale securities with a carrying value of $683 million and $849 million were pledged as collateral to secure recoveries under reinsurance contracts and other funding agreements as of
December 31, 2014 and 2013, respectively. These securities are primarily included in fixed maturity securities in the consolidated balance sheets.
Tax Credit Funds
The Company has sold $1.3 billion and $1.2 billion in Tax Credit Funds to unrelated third parties as of December 31, 2014 and 2013,
respectively. The Company has guaranteed after-tax benefits to the third party investors through periods ending in 2029. The Company held immaterial reserves on these transactions as of December 31, 2014 and 2013. These guarantees are in effect
for periods of approximately 15 years each. The Tax Credit Funds provide a stream of tax benefits to the investors that will generate a yield and return of capital. If the tax benefits are not sufficient to provide these cumulative after-tax yields,
the Company must fund any shortfall. The maximum amount of undiscounted future payments that the Company could be required to pay the investors under the terms of the guarantees is $744 million, but the Company does not anticipate making any
material payments related to the guarantees. The Company's risks are mitigated in the following ways: (1) the Company has the right to buyout the equity related to the guarantee under certain circumstances, (2) the Company may replace
underperforming properties to mitigate exposure to guarantee payments and (3) the Company oversees the asset management of the deals.
F-24
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Consolidated VIEs
The Company has relationships with VIEs where the Company is the primary beneficiary. These consolidated VIEs are primarily made up of Tax
Credit Funds with guarantees to limited partners. Net assets (controlling and noncontrolling interests) of all consolidated VIEs totaled $640 million and $680 million as of December 31, 2014 and 2013, respectively, and are included within the
balance sheet primarily as other investments of $580 million, other assets of $109 million and other liabilities of $75 million as of December 31, 2014, other investments of $554 million, other assets of $182 million and other liabilities of
$82 million as of December 31, 2013. The Company's general credit is not exposed to the creditors or beneficial interest holders of these consolidated VIEs.
Unconsolidated VIEs
In addition to the consolidated VIEs, the Company holds investments in VIEs where the Company is not the primary beneficiary, which are
primarily investments in Tax Credit Funds without guarantees to limited partners. The carrying value of these investments was $113 million and $104 million as of December 31, 2014 and 2013, respectively. In addition, the Company has made
commitments for further investments in these VIEs of $17 million and $29 million as of December 31, 2014 and 2013, respectively.
Net Investment Income
The following table summarizes net investment income, by investment type, for the years ended:
December 31,
(in millions)
2014
2013
2012
Fixed maturity securities, available-for-sale
$
1,575
$
1,565
$
1,506
Mortgage loans
362
348
366
Policy loans
51
52
53
Other
(29
)
(57
)
(45
)
Gross investment income
$
1,959
$
1,908
$
1,880
Investment expenses
59
59
55
Net investment income
$
1,900
$
1,849
$
1,825
Net Realized Investment Gains and Losses, Including Other-Than-Temporary Impairments
The following table summarizes net realized investment gains and losses, including other-than-temporary impairments, by source, for the years
ended:
December 31,
(in millions)
2014
2013
2012
Net realized derivative (losses) gains
$
(1,087
)
$
705
$
314
Realized gains on sales
31
32
48
Realized losses on sales
(19
)
(54
)
(23
)
Other
2
—
12
Net realized investment (losses) gains before other-than-temporary impairments on fixed maturity securities
$
(1,073
)
$
683
$
351
Other-than-temporary impairments on fixed maturity securities
1
(5
)
(5
)
(32
)
Net realized investment (losses) gains, including other-than-temporary impairments
$
(1,078
)
$
678
$
319
1
Other-than-temporary impairments on fixed maturity securities are net $1 million, $6 million and $36 million of non-credit losses included in other comprehensive income for the years ended December 31, 2014, 2013
and 2012, respectively.
Proceeds from the sale of available-for-sale securities were $0.6 billion, $1.1 billion and $0.8
billion during the years ended December 31, 2014, 2013 and 2012, respectively. Gross gains of $17 million, $31 million and $47 million and gross losses of $10 million, $50 million and $20 million were realized on sales of available-for-sale
securities during the years ended December 31, 2014, 2013 and 2012, respectively.
F-25
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following table summarizes the cumulative credit losses, for the years ended:
December 31,
(in millions)
2014
2013
2012
Cumulative credit losses at beginning of year
1
$
(272
)
$
(289
)
$
(328
)
New credit losses
(2
)
(3
)
(18
)
Incremental credit losses
(4
)
(3
)
(10
)
Losses related to securities included in the beginning balance sold or paid down during the period
24
23
67
Cumulative credit losses at end of year
1
$
(254
)
$
(272
)
$
(289
)
1
Cumulative credit losses are defined as amounts related to the Company's credit portion of the other-than-temporary impairment losses on debt securities that the Company does not intend to sell and that it is not
more likely than not the Company will be required to sell prior to recovery of the amortized cost basis.
(7)
Derivative Instruments
The Company is exposed to certain risks related to its ongoing business operations which are managed using derivative
instruments.
Interest rate risk management.
The Company uses interest rate contracts, primarily interest rate swaps, to reduce or
alter interest rate exposure arising from mismatches between assets and liabilities. In the case of interest rate swaps, the Company enters into a contractual agreement with a counterparty to exchange, at specified intervals, the difference between
fixed and variable rates of interest, calculated on a reference notional amount.
Interest rate swaps are used by the Company in
association with fixed and variable rate investments to achieve cash flow streams that support certain financial obligations of the Company and to produce desired investment returns. As such, interest rate swaps are generally used to convert fixed
rate cash flow streams to variable rate cash flow streams or vice versa. The Company also enters into interest rate swap transactions, which are structured to provide an offset against the negative impact of higher interest rates on the
Company's capital position.
Equity market and interest rate risk management.
The Company has a variety of variable annuity
products with guaranteed benefit features. These products and related obligations expose the Company to various market risks, primarily equity and interest rate risks. Adverse changes in the equity markets or interest rate movements expose the
Company to significant volatility. To mitigate these risks and hedge the guaranteed benefit obligations, the Company enters into a variety of derivatives including interest rate swaps, equity index futures, options and total return swaps.
Other risk management.
As part of its regular investing activities, the Company may purchase foreign currency denominated investments.
These investments and the associated income expose the Company to volatility associated with movements in foreign exchange rates. As foreign exchange rates change, the increase or decrease in the cash flows of the derivative instrument generally
offsets the changes in the functional-currency equivalent cash flows of the hedged item. To mitigate this risk, the Company uses cross-currency swaps and futures, which are primarily included in other derivative contracts in the following tables.
Credit risk associated with derivatives transactions.
The Company periodically evaluates the risks within the derivative portfolios
due to credit exposure When evaluating this risk, the Company considers several factors which include, but are not limited to, the counterparty credit risk associated with derivative receivables, the Company's own credit as it relates to
derivative payables, the collateral thresholds associated with each counterparty and changes in relevant market data in order to gain insight into the probability of default by the counterparty. In addition, the impact the Company's exposure to
credit risk could have on the effectiveness of the Company's hedging relationships is considered. As of December 31, 2014 and 2013, the impact of the exposure to credit risk on the fair value measurement of derivatives and the
effectiveness of the Company's hedging relationships was immaterial.
F-26
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following table summarizes the fair value and related notional amounts of derivative
instruments, as of the dates indicated:
Derivative assets
Derivative liabilities
(in millions)
Fair value
Notional
Fair value
Notional
December 31, 2014
Derivatives designated and qualifying as hedging instruments
$
29
$
381
$
9
$
176
Derivatives not designated as hedging instruments:
Interest rate contracts
$
2,602
$
32,829
$
2,611
$
32,756
Equity contracts
411
5,990
—
—
Total return swaps
—
—
41
2,808
Other derivative contracts
—
—
3
2
Total derivative instruments
1
$
3,042
$
39,200
$
2,664
$
35,742
Accrued interest on derivative assets and liabilities
243
244
Total derivative positions
$
3,285
$
2,908
December 31, 2013
Derivatives designated and qualifying as hedging instruments
$
1
$
6
$
26
$
345
Derivatives not designated as hedging instruments:
Interest rate contracts
$
1,787
$
26,156
$
2,100
$
29,715
Equity contracts
343
6,556
—
—
Total return swaps
6
1,101
52
1,183
Other derivative contracts
—
—
5
2
Total derivative instruments
1
$
2,137
$
33,819
$
2,183
$
31,245
Accrued interest on derivative assets and liabilities
196
227
Total derivative positions
$
2,333
$
2,410
1
Derivative assets and liabilities are included in other assets and other liabilities, respectively, in the consolidated balance sheets.
Of the $3.3 billion and $2.3 billion of fair value of total derivative assets at December 31, 2014 and 2013, $2.6 billion and $1.7
billion, respectively, are subject to master netting agreements. The Company received $535 million and $382 million of cash collateral and held $64 million and $29 million, respectively, of securities as off-balance sheet collateral, resulting in an
immaterial uncollateralized position as of December 31, 2014 and 2013. Of the $2.9 billion and $2.4 billion of fair value of total derivative liabilities at December 31, 2014 and 2013, $2.6 billion and $1.7 billion, respectively, are
subject to master netting agreements. The Company posted $330 million and $435 million of cash collateral and pledged securities with a fair value of $174 million and $173 million, respectively, resulting in an immaterial uncollateralized position
as of December 31, 2014 and 2013.
F-27
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following table summarizes gains and losses for derivative instruments recognized in net
realized investment gains and losses in the consolidated statements of operations, for the years ended:
December 31,
(in millions)
2014
2013
2012
Derivatives designated and qualifying as hedging instruments
$
—
$
(1
)
$
(1
)
Derivatives not designated as hedging instruments:
Interest rate contracts
$
142
$
(209
)
$
(125
)
Equity contracts
(79
)
(776
)
(665
)
Total return swaps
(195
)
(321
)
(343
)
Other derivative contracts
4
(9
)
(1
)
Net interest settlements
20
14
53
Total derivative losses
1
$
(108
)
$
(1,302
)
$
(1,082
)
Change in embedded derivatives on guaranteed benefit annuity programs
2
(1,271
)
1,751
1,185
Other revenue on guaranteed benefit annuity programs
292
256
211
Change in embedded derivative liabilities and related fees
$
(979
)
$
2,007
$
1,396
Net realized derivative (losses) gains
$
(1,087
)
$
705
$
314
1
Included in total derivative losses are economic hedging gains (losses) of $941 million, $(1.8) billion and $(827) million related to the guaranteed benefit annuity programs for the years ended December 31, 2014,
2013 and 2012, respectively. Also included are economic hedging (losses) gains of $(1.0) billion, $645 million and $(129) million, respectively, related to the program that protects against the negative impact of higher interest rates on the
Company's statutory surplus position.
2
For the individual variable annuity business, the annual comprehensive review of model assumptions included a favorable impact for the years ended December 31, 2014 and 2013, primarily due to model enhancements and
updated assumptions for discounting and benefit utilization, partially offset by mortality and lapse rates.
F-28
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(8)
Fair Value Measurements
The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2014:
(in millions)
Level 1
Level 2
Level 3
Total
Assets
Investments:
Fixed maturity securities, available-for-sale:
U.S. government and agencies
$
523
$
1
$
3
$
527
Obligations of states, political subdivisions and foreign governments
66
2,219
—
2,285
Corporate public securities
—
21,158
92
21,250
Corporate private securities
—
3,659
991
4,650
Residential mortgage-backed securities
1,034
2,796
9
3,839
Commercial mortgage-backed securities
—
1,499
3
1,502
Other asset-backed securities
—
1,196
169
1,365
Total fixed maturity securities, available-for-sale, at fair value
$
1,623
$
32,528
$
1,267
$
35,418
Other investments at fair value
1
42
899
36
977
Investments at fair value
$
1,665
$
33,427
$
1,303
$
36,395
Derivative instruments - assets
—
2,631
411
3,042
Separate account assets
84,583
1,387
2,106
88,076
Assets at fair value
$
86,248
$
37,445
$
3,820
$
127,513
Liabilities
Future policy benefits and claims:
Embedded derivatives on living benefits
$
—
$
—
$
(177
)
$
(177
)
Embedded derivatives on indexed products
—
—
(84
)
(84
)
Total future policy benefits and claims
$
—
$
—
$
(261
)
$
(261
)
Derivative instruments - liabilities
—
(2,661
)
(3
)
(2,664
)
Liabilities at fair value
$
—
$
(2,661
)
$
(264
)
$
(2,925
)
1
Other investments at fair value includes $21 million of trading securities as of December 31, 2014.
The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended
December 31, 2014:
(in millions)
Fixed
maturity
securities
2
Other
investments
Derivative
assets
3
Separate
account
assets
Total assets
at fair value
Liabilities at
fair value
3
Balance as of December 31, 2013
$
1,088
$
45
$
343
$
2,083
$
3,559
$
1,005
Net gains (losses)
In operations
1
(5
)
6
40
23
64
(1,269
)
In other comprehensive income
21
1
—
—
22
—
Purchases
121
—
46
—
167
—
Sales
(241
)
(16
)
(18
)
—
(275
)
—
Transfers into Level 3
400
—
—
—
400
—
Transfers out of Level 3
(117
)
—
—
—
(117
)
—
Balance as of December 31, 2014
$
1,267
$
36
$
411
$
2,106
$
3,820
$
(264
)
1
Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable
to contractholders and therefore are not included in the Company's earnings. The change in unrealized (losses) gains included in operations on assets and liabilities still held at the end of the year was $(1.3) billion for future policy
benefits and claims, $154 million for derivative assets, and $6 million for other investments at fair value.
2
Non-binding broker quotes were utilized to determine a fair value of $1.1 billion of total fixed maturity securities as of December 31, 2014.
3
Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities.
F-29
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Transfers into and out of Level 3 during the year ended December 31, 2014 are primarily
due to certain corporate private securities, which changed pricing sources between broker quotes and independent pricing services. There were no material transfers between Levels 1 and 2 during the year ended December 31, 2014.
As discussed in Note 2, the valuation of embedded derivatives in living benefit guarantees and equity indexed products incorporates many
inputs. Significant unobservable inputs for living benefit guarantees include discounting, index volatility, mortality, lapse rates, wait period and benefit utilization, while significant unobservable inputs for equity indexed products include
mortality, lapse rates and index volatility. For both products, the Company derives these inputs, which vary widely by product, attained age, policy duration, benefits in the money (living benefit guarantees only) and the existence of surrender
charges, from current experience and industry data. The fair value for these benefits is calculated using the mean of discounted cash flows across numerous random scenarios, an approach that is commonly used by the insurance industry for this type
of valuation. This process considers a broader range of assumptions than what would be found in a deterministic approach.
Living
Benefit Guarantees
The following table summarizes significant unobservable inputs used for fair value measurements for living
benefits liabilities classified as Level 3 as of December 31, 2014:
Unobservable Inputs
Range
Mortality
0.1% - 8%
2
Lapse
0%
-
35%
Wait period
0 yrs – 30 yrs
3
Efficiency of benefit utilization
1
65% -100%
Discount rate
See footnote 4
Index volatility
15% - 25%
1
The unobservable input is not applicable to GMABs.
2
Represents the mortality for the majority of business with living benefits, with policyholders ranging from 45 to 85.
3
A portion of the contractholders could never use the benefit, which would extend the range to an indeterminate period.
4
Incorporates the liquidity and non-performance risk adjustment. The liquidity spread takes into consideration market observables for spreads in illiquid assets. The non-performance risk adjustment reflects an additional
spread over LIBOR determined by market observables for similarly rated public bonds.
The following changes in any of the
significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the living benefits liability:
Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability.
Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability. Factors that
impact the predicted lapse rate can include: age, policy duration, policy size, benefit in-the-moneyness, tax status (i.e. qualified or non-qualified), interest rate levels and applicable surrender charges. All else being equal, policies that are
in-the-money will have lower lapse rates than policies that are out-of-the-money, and policies that have a surrender charge present will have lower lapse rates than policies without a surrender charge.
The assumed wait period and the efficiency of utilization determine the timing and amount of living benefits withdrawals. These assumptions
vary by the product type, age of the policyholder and policy duration. Many products have a bonus feature which enhances the guarantee on every policy anniversary for the first ten years so long as withdrawals have not commenced. All else being
equal, policies commencing withdrawals at a time around the year ten bonus will have higher liability values than policies commencing withdrawals 20 years after issue or policies commencing withdrawals only one year after issue. In addition,
policies that are assumed to withdraw the maximum permitted amount will have a higher liability value than a policy that is assumed to withdraw less than the maximum allowed amount.
A higher discount rate tends to decrease the value of the liability and a lower discount rate tends to increase the value of the liability.
Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the
liability.
F-30
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Equity Indexed Products
The following table summarizes significant unobservable inputs used for fair value measurements for indexed universal life equity indexed
products classified as Level 3 as of December 31, 2014:
Unobservable Inputs
Range
Mortality
0% - 4%
1
Lapse
0% - 10%
Index volatility
15% - 25%
1
Represents the mortality for the majority of business, with policyholders ranging from 0 to 75.
The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value
measurements of the equity indexed products:
Higher mortality rates tend to decrease the value of the liability and lower mortality rates
tend to increase the value of the liability.
Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to
increase the value of the liability. Factors that impact the predicted lapse rate can include: age, policy duration, policy size, and applicable surrender charges. All else being equal, policies with a surrender charge present will have lower lapse
rates than policies without a surrender charge.
Higher index volatility tends to increase the value of the liability and lower index
volatility tends to decrease the value of the liability.
Separate Accounts
The Company's separate account assets include an investment in a mutual fund with a non-readily determinable fair value. Net asset value
has been used to estimate the fair value of this investment as a practical expedient. The investments are included in Level 3 as they may not be redeemed until the guarantee period expires in 2016. The investment strategy of this fund is to build a
portfolio where the assets shall be sufficient to achieve a target portfolio value by the end of the guarantee period. The net asset value of this fund reported in separate account assets was $1.7 billion as of December 31, 2014 and 2013.
F-31
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following table summarizes assets and liabilities held at fair value on a recurring basis
as of December 31, 2013:
(in millions)
Level 1
Level 2
Level 3
Total
Assets
Investments:
Fixed maturity securities, available-for-sale:
U.S. government and agencies
$
557
$
1
$
3
$
561
Obligations of states, political subdivisions and foreign governments
63
1,900
—
1,963
Corporate public securities
1
18,705
79
18,785
Corporate private securities
—
3,791
803
4,594
Residential mortgage-backed securities
791
3,203
9
4,003
Commercial mortgage-backed securities
—
1,504
—
1,504
Other asset-backed securities
—
645
194
839
Total fixed maturity securities, available-for-sale, at fair value
$
1,412
$
29,749
$
1,088
$
32,249
Other investments at fair value
1
64
357
45
466
Investments at fair value
$
1,476
$
30,106
$
1,133
$
32,715
Derivative instruments - assets
—
1,794
343
2,137
Separate account assets
80,647
1,339
2,083
84,069
Assets at fair value
$
82,123
$
33,239
$
3,559
$
118,921
Liabilities
Future policy benefits and claims:
Embedded derivatives on living benefits
$
—
$
—
$
1,094
$
1,094
Embedded derivatives on indexed products
—
—
(84
)
(84
)
Total future policy benefits and claims
$
—
$
—
$
1,010
$
1,010
Derivative instruments - liabilities
—
(2,178
)
(5
)
(2,183
)
Liabilities at fair value
$
—
$
(2,178
)
$
1,005
$
(1,173
)
1
Other investments at fair value includes $31 million of trading securities as of December 31, 2013.
The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended
December 31, 2013:
(in millions)
Fixed
maturity
securities
2
Other
investments
Derivative
assets
3
Separate
account
assets
Total assets
at fair value
Liabilities at
fair value
3
Balance as of December 31, 2012
$
1,197
$
62
$
822
$
2,025
$
4,106
$
(753
)
Net gains (losses)
In operations
1
(1
)
(6
)
(447
)
58
(396
)
1,758
In other comprehensive income
1
6
—
—
7
—
Purchases
115
5
129
—
249
—
Sales
(232
)
(22
)
(161
)
—
(415
)
—
Transfers into Level 3
142
—
—
—
142
—
Transfers out of Level 3
(134
)
—
—
—
(134
)
—
Balance as of December 31, 2013
$
1,088
$
45
$
343
$
2,083
$
3,559
$
1,005
1
Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable
to contractholders and therefore are not included in the Company's earnings. The change in unrealized gains (losses) included in operations on assets and liabilities still held as of the end of the year was $1.8 billion for future policy
benefits and claims, $(297) million for derivative assets and $(6) million for other investments at fair value.
2
Non-binding broker quotes were utilized to determine a fair value of $924 million of total fixed maturity securities as of December 31, 2013.
3
Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities.
Transfers into and out of Level 3 during the year ended December 31, 2013 are primarily due to certain corporate private securities and
other asset-backed securities, which changed pricing sources between broker quotes and independent pricing services. There were no transfers between Levels 1 and 2 during the year ended December 31, 2013.
F-32
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Financial Instruments Not Carried at Fair Value
The following table summarizes the carrying value and fair value of the Company's financial instruments not carried at fair value as of
the dates indicated. The valuation techniques used to estimate these fair values are described below.
December 31, 2014
December 31, 2013
(in millions)
Carrying
value
Fair
value
Level 2
Level 3
Carrying
value
Fair
value
Level 2
Level 3
Assets
Investments:
Mortgage loans, net of allowance
$
7,270
$
7,616
$
—
$
7,616
$
6,341
$
6,481
$
—
$
6,481
Policy loans
$
992
$
992
$
—
$
992
$
987
$
987
$
—
$
987
Other investments
$
60
$
60
$
—
$
60
$
43
$
43
$
—
$
43
Liabilities
Investment contracts
$
23,470
$
21,742
$
—
$
21,742
$
21,874
$
20,436
$
—
$
20,436
Short-term debt
$
660
$
660
$
—
$
660
$
278
$
278
$
—
$
278
Long-term debt
$
709
$
1,069
$
1,060
$
9
$
707
$
1,004
$
997
$
7
Mortgage loans, net of allowance
. The fair values of mortgage loans are estimated using discounted cash
flow analyses based on interest rates currently being offered for similar loans to borrowers with similar credit ratings.
Policy
loans
. The carrying amount reported in the consolidated balance sheets approximates fair value.
Other investments
. Other
investments not held at fair value consist of FHLB stock. The carrying amount reported in the consolidated balance sheets approximates fair value.
Investment contracts
. For investment contracts without defined maturities, fair value is the amount payable on demand, net of surrender
charges. For investment contracts with known or determined maturities, fair value is estimated using discounted cash flow analysis. Interest rates used in this analysis are similar to currently offered contracts with maturities consistent with those
remaining for the contracts being valued. The fair value of adjustable rate contracts approximates their carrying value.
Short-term
debt
. The carrying amount reported in the consolidated balance sheets approximates fair value.
Long-term debt
. The fair values
for long-term debt are based on estimated market prices using observable inputs from similar debt instruments.
(9)
Goodwill
The following table summarizes changes in the carrying value of goodwill by segment for the years indicated:
(in millions)
Retirement
Plans
Individual
Products &
Solutions - Life
and NBSG
Total
Balance as of December 31, 2012
1
$
25
$
175
$
200
Adjustments
—
—
—
Balance as of December 31, 2013
1
$
25
$
175
$
200
Adjustments
—
—
—
Balance as of December 31, 2014
1
$
25
$
175
$
200
1
The goodwill balances have not been previously impaired.
F-33
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(10)
Closed Block
The amounts shown in the following tables for assets, liabilities, revenues and expenses of the closed block are those that
enter into the determination of amounts that are to be paid to policyholders.
The following table summarizes financial information for the
closed block, as of the dates indicated:
December 31,
(in millions)
2014
2013
Liabilities:
Future policyholder benefits
$
1,669
$
1,703
Policyholder funds and accumulated dividends
139
141
Policyholder dividends payable
22
23
Policyholder dividend obligation
152
113
Other policy obligations and liabilities
33
29
Total liabilities
$
2,015
$
2,009
Assets:
Fixed maturity securities, available-for-sale
$
1,336
$
1,320
Mortgage loans, net of allowance
272
257
Policy loans
149
157
Other assets
86
93
Total assets
$
1,843
$
1,827
Excess of reported liabilities over assets
172
182
Portion of above representing other comprehensive income:
Increase (decrease) in unrealized gain on fixed maturity securities, available-for-sale
$
35
$
(92
)
Adjustment to policyholder dividend obligation
(35
)
92
Total
$
—
$
—
Maximum future earnings to be recognized from assets and liabilities
$
172
$
182
Other comprehensive income:
Fixed maturity securities, available-for-sale:
Fair value
$
1,336
$
1,320
Amortized cost
1,216
1,235
Shadow policyholder dividend obligation
(120
)
(85
)
Net unrealized appreciation
$
—
$
—
F-34
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following table summarizes closed block operations for the years ended:
December 31,
(in millions)
2014
2013
2012
Revenues:
Premiums
$
61
$
66
$
73
Net investment income
93
94
98
Realized investment gains
1
—
1
Realized losses credited to policyholder benefit obligation
(5
)
(4
)
(5
)
Total revenues
$
150
$
156
$
167
Benefits and expenses:
Policy and contract benefits
$
124
$
123
$
134
Change in future policyholder benefits and interest credited to policyholder accounts
(34
)
(29
)
(27
)
Policyholder dividends
43
44
50
Change in policyholder dividend obligation
(1
)
3
(8
)
Other expenses
2
(2
)
1
Total benefits and expenses
$
134
$
139
$
150
Total revenues, net of benefits and expenses, before federal income tax expense
$
16
$
17
$
17
Federal income tax expense
6
6
6
Revenues, net of benefits and expenses and federal income tax expense
$
10
$
11
$
11
Maximum future earnings from assets and liabilities:
Beginning of period
$
182
$
193
$
204
Change during period
(10
)
(11
)
(11
)
End of period
$
172
$
182
$
193
Cumulative closed block earnings from inception through December 31, 2014, 2013 and 2012 were higher than
expected as determined in the actuarial calculation. Therefore, policyholder dividend obligations (excluding the adjustment for unrealized gains on available-for-sale securities) were $32 million, $28 million and $21 million as of December 31,
2014, 2013 and 2012, respectively.
F-35
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(11)
Short-Term Debt
The Company classifies debt as short-term if the maturity date at inception is less than one year.
The following table summarizes the carrying value of short-term debt and weighted average annual interest rates, as of the dates indicated:
December 31,
(in millions)
2014
2013
$600 million commercial paper program (0.20% and 0.24%, respectively)
$
264
$
278
$400 million revolving variable rate line of credit (1.57% and 0.00%, respectively)
396
—
Total short-term debt
$
660
$
278
In November 2014, the Company entered into a $400 million unsecured revolving promissory note and line of
credit agreement with its parent company, NFS. Outstanding principal balances of the line of credit bear interest at the rate of six-month London Interbank Offered Rate ("LIBOR") plus 1.25%. Interest is due and payable as of the last day
of each interest period, as defined in the agreement, while there are outstanding principal balances. Under the terms of the agreement, the Company may borrow, repay and re-borrow advances under the line of credit at any time prior to the
termination of the note, which, among other conditions, is November 2015, subject to automatic renewal for additional one year periods unless either party terminates the agreement. In February 2015, the Company repaid $200 million of the outstanding
balance.
In March 2014, the Company renewed an agreement to extend its ability to borrow with the FHLB. This extension, which expires on
March 27, 2015, allows the Company access to borrow up to $250 million, which would be collateralized by pledged securities. The Company had $8.5 billion and $4.3 billion in eligible collateral and no amounts outstanding under the agreement as
of December 31, 2014 and 2013, respectively. Additionally, as part of the agreement, NLIC purchased $25 million in capital stock with the FHLB.
NMIC, NFS, and NLIC have a $600 million revolving variable rate credit facility that matures on May 6, 2015. NLIC had no amounts
outstanding under the facility as of December 31, 2014 and 2013.
The Company has entered into an agreement with its custodial bank to
borrow against the cash collateral that is posted in connection with its securities lending program. The maximum amount available under the agreement is $350 million. The borrowing rate on this program is equal to one-month U.S. LIBOR. The Company
had no amounts outstanding under this agreement as of December 31, 2014 and 2013.
The terms of each debt instrument contain various
restrictive covenants, including, but not limited to, minimum statutory surplus and minimum net worth requirements, and maximum debt to statutory surplus leverage ratio requirements, as defined in the agreements. The Company was in compliance with
all covenants as of December 31, 2014 and 2013.
The amount of interest paid on short-term debt was immaterial in 2014, 2013 and 2012.
(12)
Long-Term Debt
The following table summarizes the carrying value of long-term debt, as of the dates indicated:
December 31,
(in millions)
2014
2013
8.15% surplus note, due June 26, 2032, payable to NFS
$
300
$
300
7.50% surplus note, due December 17, 2031, payable to NFS
300
300
6.75% surplus note, due December 23, 2033, payable to NFS
100
100
Other
9
7
Total long-term debt
$
709
$
707
On December 31, 2010, Olentangy Reinsurance, LLC ("Olentangy"), a special purpose financial
captive insurance company subsidiary of NLAIC domiciled in the State of Vermont, issued a variable funding surplus note due on December 31, 2040 to Nationwide Corporation, a majority-owned subsidiary of NMIC. In June 2013, the Company paid the
outstanding balance of the surplus note. The Company made interest payments on the surplus note totaling $5 million during 2013 prior to the repayment of the outstanding balance. Payments of interest and principal under the notes require the prior
approval of the State of Vermont.
The Company made interest payments to NFS on surplus notes totaling $54 million for the years ended
December 31, 2014, 2013 and 2012. Payments of interest and principal under the notes require the prior approval of the ODI.
F-36
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(13)
Federal Income Taxes
The following table summarizes the components of federal income tax (benefit) expense for the years ended:
December 31,
(in millions)
2014
2013
2012
Current tax expense (benefit)
$
5
$
(33
)
$
(144
)
Deferred tax (benefit) expense
(152
)
346
243
Total tax (benefit) expense
$
(147
)
$
313
$
99
The following table summarizes how the total federal income tax (benefit) expense differs from the amount
computed by applying the U.S. federal income tax rate to net (loss) income for the years ended:
December 31,
2014
2013
2012
(in millions)
Amount
%
Amount
%
Amount
%
Rate reconciliation:
Computed (expected tax (benefit) expense)
$
(46
)
35
%
$
469
35
%
$
245
35
%
Dividends received deduction
(87
)
66
%
(112
)
(8
)%
(75
)
(11
)%
Tax credits
(53
)
41
%
(82
)
(6
)%
(85
)
(12
)%
Other, net
39
(30
)%
38
2
%
14
2
%
Total
$
(147
)
112
%
$
313
23
%
$
99
14
%
The Company's current federal income tax liability was $18 million and $13 million as of
December 31, 2014 and 2013, respectively.
The Company made immaterial payments for the year ended December 31, 2014 and received
refunds of $107 million and $95 million for the years ended 2013 and 2012, respectively.
During 2014 and 2013, the Company recorded a tax
expense (benefit) of $16 million and $(13) million, respectively. These changes in estimates were primarily driven by differences in the Company's separate account dividends received deduction ("DRD") between the previous year's
estimate and the amount reported on the previous year's tax return. No material changes in estimated income tax expense were recorded in 2012.
As of December 31, 2014, the Company had gross federal net operating loss carryforwards of $332 million, which expire in 2028. In
addition, the Company had $147 million in low-income-housing credit carryforwards, which expire between 2024 and 2034, and $155 million in alternative minimum tax credit carryforwards, which have an unlimited carryforward. In addition, the Company
had $53 million in foreign tax credit carryforwards which expire between 2019 and 2024. The Company expects to fully utilize all carryforwards.
F-37
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following table summarizes the tax effects of temporary differences that gave rise to
significant components of the net deferred tax liability included in other liabilities in the consolidated balance sheets, as of the dates indicated:
December 31,
(in millions)
2014
2013
Deferred tax assets
Future policy benefits and claims
$
1,274
$
1,244
Tax credit carryforwards
355
352
Other
840
845
Gross deferred tax assets
$
2,469
$
2,441
Valuation allowance
(17
)
(17
)
Net deferred tax assets
$
2,452
$
2,424
Deferred tax liabilities
Deferred policy acquisition costs
$
(1,113
)
$
(1,048
)
Available-for-sale securities
(1,201
)
(821
)
Derivatives, including embedded derivatives
(267
)
(600
)
Other
(269
)
(255
)
Gross deferred tax liabilities
$
(2,850
)
$
(2,724
)
Net deferred tax liability
$
(398
)
$
(300
)
In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than
not that some portion of the total gross deferred tax assets will not be realized. Valuation allowances are established when necessary to reduce the deferred tax assets to amounts expected to be realized. Based on the Company's analysis, it is
more likely than not that the results of future operations and the implementation of tax planning strategies will generate sufficient taxable income to enable the Company to realize the deferred tax assets for which the Company has not established
valuation allowances.
The following table is a rollforward of the beginning and ending uncertain tax positions, including permanent and
temporary differences, but excluding interest and penalties:
(in millions)
2014
2013
2012
Balance at beginning of period
$
36
$
36
$
76
Additions for current year tax positions
3
2
(2
)
Additions for prior years tax positions
—
—
25
Reductions for prior years tax positions
(1
)
(2
)
(63
)
Balance at end of period
$
38
$
36
$
36
The Company believes it is reasonably possible that the 2006 to 2010 IRS audit for the NLIC's
consolidated tax returns will be effectively settled within the next 12 months and as a result the liability for unrecognized tax benefits could decrease $15 million.
The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S.
federal, state or local income tax examinations by tax authorities through the 2005 tax year. In 2013, the IRS commenced an examination of the Company's U.S. income tax returns for the years 2009 through 2010. Any adjustments that may result
from IRS examination of tax returns are not expected to have a material effect on the results of operations, cash flows or financial position of the Company.
F-38
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(14)
Statutory Financial Information
Statutory Results
The Company's life insurance subsidiaries prepare their statutory financial statements in conformity with the statutory accounting
practices prescribed and permitted by insurance regulatory authorities, subject to any deviations prescribed or permitted by the applicable state departments of insurance. Olentangy was granted a permitted practice from the State of Vermont that
changed NLAIC's valuation of this subsidiary by $66 million as of December 31, 2014 and 2013, which also allowed NLIC to admit additional deferred tax assets of $10 million as of December 31, 2014 and 2013. Statutory accounting
practices focus on insurer solvency and differ materially from GAAP primarily due to charging policy acquisition and other costs to expense as incurred, establishing future policy benefits and claims reserves based on different actuarial
assumptions, excluding certain assets from statutory admitted assets and valuing investments and establishing deferred taxes on a different basis.
The following table summarizes the statutory net income (loss) and statutory capital and surplus for the Company's primary life insurance
subsidiaries for the years ended:
December 31,
(in millions)
2014
2013
2012
Statutory net income (loss)
NLIC
$
341
$
262
$
764
NLAIC
$
(122
)
$
(103
)
$
(54
)
Statutory capital and surplus
NLIC
$
4,408
$
3,550
$
3,837
NLAIC
$
691
$
534
$
311
Dividend Restrictions
The payment of dividends by NLIC is subject to restrictions set forth in the insurance laws and regulations of the State of Ohio, its
domiciliary state. The State of Ohio insurance laws require Ohio-domiciled life insurance companies to seek prior regulatory approval to pay a dividend or distribute cash or other property if the fair market value thereof, together with that of
other dividends or distributions made in the preceding twelve months, exceeds the greater of (1) 10% of statutory-basis policyholders' surplus as of the prior December 31 or (2) the statutory-basis net income of the insurer for
the prior year. During the years ended December 31, 2014 and 2013, NLIC did not pay any dividends to NFS. During the year ended December 31, 2012, NLIC paid a cash dividend of $40 million to NFS. As of January 1, 2015, NLIC has the
ability to pay dividends to NFS totaling $441 million without obtaining prior approval.
The State of Ohio insurance laws also require
insurers to seek prior regulatory approval for any dividend paid from other than earned surplus. Earned capital and surplus is defined under the State of Ohio insurance laws as the amount equal to the Company's unassigned funds as set forth in
its most recent statutory financial statements, including net unrealized capital gains and losses or revaluation of assets. Additionally, following any dividend, an insurer's policyholder capital and surplus must be reasonable in relation to
the insurer's outstanding liabilities and adequate for its financial needs. The payment of dividends by the Company may also be subject to restrictions set forth in the insurance laws of the State of New York that limit the amount of statutory
profits on the Company's participating policies (measured before dividends to policyholders) available for the benefit of the Company and its stockholders.
The Company currently does not expect such regulatory requirements to impair the ability to pay operating expenses and dividends in the future.
Regulatory Risk-Based Capital
The National Association of Insurance Commissioners' ("NAIC") Risk-Based Capital ("RBC") model law requires every
insurer to calculate its total adjusted capital and RBC requirement to ensure insurer solvency. Regulatory guidelines provide for an insurance commissioner to intervene if the insurer experiences financial difficulty, as evidenced by a
company's total adjusted capital falling below established relationships to required RBC. The model includes components for asset risk, liability risk, interest rate exposure and other factors. The State of Ohio, where NLIC and NLAIC are
domiciled, imposes minimum RBC requirements that are developed by the NAIC. The formulas in the model for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on
the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital to authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels,
all of which require specified corrective action. NLIC, NLAIC and Olentangy each exceeded the minimum RBC requirements for all periods presented.
F-39
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(15)
Related Party Transactions
The Company has entered into significant, recurring transactions and agreements with NMIC, other affiliates and subsidiaries
as a part of its ongoing operations. These include annuity and life insurance contracts, employee benefit plans, office space cost sharing arrangements, and agreements related to reinsurance, cost sharing, administrative services, marketing,
intercompany loans, intercompany repurchases, cash management services and software licensing. Measures used to allocate expenses among companies include individual employee estimates of time spent, special cost studies, the number of full-time
employees, commission expense and other methods agreed to by the participating companies.
In addition, Nationwide Services Company, LLC
("NSC"), a subsidiary of NMIC, provides data processing, systems development, hardware and software support, telephone, mail and other services to the Company, based on specified rates for units of service consumed. For the years ended
December 31, 2014, 2013 and 2012, the Company made payments to NMIC and NSC totaling $275 million, $277 million and $283 million, respectively.
The Company has issued group annuity and life insurance contracts and performs administrative services for various employee benefit plans
sponsored by NMIC or its affiliates. Total account values of these contracts were $3.3 billion as of December 31, 2014 and 2013. Total revenues from these contracts were $131 million, $137 million and $140 million for the years ended
December 31, 2014, 2013 and 2012, respectively, and include policy charges, net investment income from investments backing the contracts and administrative fees. Total interest credited to the account balances was $109 million for the years
ended December 31, 2014 and 2013, and $113 million for the year ended December 31, 2012. The terms of these contracts are materially consistent with what the Company offers to unaffiliated parties.
The Company has a cost sharing arrangement with NMIC to occupy office space. The Company made payments to NMIC of $16 million for the years
ended December 31, 2014 and 2013, and $15 million for the year ended December 31, 2012. In addition, an affiliate of NMIC has a cost sharing arrangement with the Company to occupy office space.
NLIC has a reinsurance agreement with NMIC whereby all of NLIC's accident and health business not ceded to unaffiliated reinsurers is
ceded to NMIC on a modified coinsurance basis. Either party may terminate the agreement on January 1 of any year with prior notice. Under a modified coinsurance agreement, the ceding company retains invested assets, and investment earnings are
paid to the reinsurer. Under the terms of NLIC's agreements, the investment risk associated with changes in interest rates is borne by the reinsurer. The ceding of risk does not discharge the original insurer from its primary obligation to the
policyholder. The Company believes that the terms of the modified coinsurance agreements are consistent in all material respects with what the Company could have obtained with unaffiliated parties. Revenues ceded to NMIC for the years ended
December 31, 2014, 2013 and 2012 were $208 million, $179 million and $161 million, respectively, while benefits, claims and expenses ceded during these years were $217 million, $178 million and $167 million, respectively.
Funds of Nationwide Funds Group ("NFG"), an affiliate, are offered to the Company's customers as investment options in certain
of the Company's products. As of December 31, 2014 and 2013, customer allocations to NFG funds totaled $58.1 billion and $53.2 billion, respectively. For the years ended December 31, 2014, 2013 and 2012, NFG paid the Company $185
million, $163 million and $144 million, respectively, for the distribution and servicing of these funds.
Amounts on deposit with NCMC for
the benefit of the Company were $636 million and $228 million as of December 31, 2014 and 2013, respectively.
Refer to Note 12 for
discussion of variable funding surplus note between Olentangy Reinsurance, LLC and Nationwide Corporation.
Nationwide Bank has a line of
credit agreement with NLIC that allows the Bank access to borrow up to $50 million from NLIC. The borrowing rate on the line of credit is equal to the daily Prime Rate. The Bank had no amounts outstanding under this agreement as of December 31,
2014 and 2013.
Certain annuity products are sold through affiliated companies, which are also subsidiaries of NFS. Total commissions and
fees paid to these affiliates were $57 million for the year ended December 31, 2014, and $54 million for the years ended December 31, 2013 and 2012.
The Company provides financing to Nationwide Realty Investors, LTD, a subsidiary of NMIC. As of December 31, 2014 and 2013, the Company
had notes receivable outstanding of $142 million and $146 million, respectively.
F-40
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(16)
Contingencies
Legal and Regulatory Matters
The Company is subject to legal and regulatory proceedings in the ordinary course of its business. The Company's legal and regulatory
matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates. These matters are subject to many uncertainties, and given their complexity and
scope, their outcomes cannot be predicted. Regulatory proceedings could also affect the outcome of one or more of the Company's litigation matters. Furthermore, it is often not possible to determine the ultimate outcomes of the pending
regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to below, are in very preliminary stages, and the Company does not
have sufficient information to make an assessment of the plaintiffs' claims for liability or damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the
event of certification) the size of the class and class period. In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and
cannot be defined based on the information currently available. The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse
effect on the Company's consolidated financial position. Nonetheless, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could
materially affect the Company's consolidated financial position or results of operations in a particular quarter or annual period.
The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not
limited to the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the IRS and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or
targeted inquiries, examinations and investigations of the Company and/or its affiliates. The financial services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such
scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The Company will cooperate with NMIC insofar as any inquiry, examination or investigation encompasses NMIC's operations.
On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the United States District Court for the District of Connecticut
entitled Lou Haddock, as trustee of the
Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company
. On November 18, 2009, the plaintiffs filed a
sixth amended complaint amending the list of named plaintiffs and claiming to represent a class of qualified retirement plan trustees under the Employee Retirement Income Security Act of 1974 ("ERISA") that purchased variable annuities
from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks
damages in an amount equivalent to some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and injunctive relief and attorneys' fees. On November 6, 2009, the Court granted the
plaintiffs' motion for class certification. On October 21, 2010, the District Court dismissed NFS from the lawsuit. On February 6, 2012, the Second Circuit Court of Appeals vacated the November 6, 2009 order granting class
certification and remanded the case back to the District Court for further consideration. On September 6, 2013, the District Court granted the plaintiffs' motion for class certification. On December 11, 2014, the plaintiffs filed a
seventh amended complaint adding another sub class of defendants that held trust platform products. On December 11, 2014, the plaintiffs filed a motion for preliminary approval of settlement. On January 5, 2015, the Court signed the Order
Preliminarily Approving Settlement and Approving Form and Manner of Notice. A Fairness Hearing has been set for March 31, 2015. NLIC has made adequate provision for all probable and reasonably estimable losses associated with this settlement.
Lehman Brothers Holdings, Inc. (Debtors) and Giddens, James v NLIC and NMIC, et al
. In 2012, the Plaintiff, Debtor in Possession
Lehman Brothers Special Financing, Inc., filed a class action in the United States Bankruptcy Court for the Southern District of New York seeking the recovery of certain assets from approximately 200 defendants, including NLIC and NMIC (the
"Distributed Action"). The claims against NLIC and NMIC arise from the bankruptcy filings in 2008 of the Plaintiff and its parent company, Lehman Brothers Holding, Inc., which triggered the early termination of two collateralized debt
obligation transactions, resulting in payments to NLIC and NMIC. The Plaintiff seeks to have certain sums returned to the bankruptcy estate in addition to prejudgment interest and costs. In 2013, Plaintiff sent correspondence to all defendants
inviting settlement discussions and served NMIC and NLIC with a "SPV Derivatives ADR Notice," formally starting the Alternative Dispute Resolution process. NMIC and NLIC responded, taking part in the ADR process, including a mediation. On
July 17, 2014, the parties reached a settlement of this matter. On December 8, 2014, the settlement agreements were finalized and executed. Nationwide has issued the settlement payment, was dismissed from the case with prejudice on
December 31, 2014, and this matter will shortly be closed.
F-41
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Indemnifications
In the normal course of business, the Company provides standard indemnifications to contractual counterparties. The types of indemnifications
typically provided include breaches of representations and warranties, taxes and certain other liabilities, such as third party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of
business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated, and the contingencies triggering the obligation to
indemnify have not occurred and are not expected to occur. Consequently, the amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations.
Tax Matters
The
Company's federal income tax returns are routinely audited by the IRS. The Company has established tax reserves as described in Note 2. The Company believes its tax reserves reasonably provide for potential assessments that may result from IRS
examinations and other tax-related matters for all open tax years.
(17)
Reinsurance
The following table summarizes the effects of reinsurance on life, accident and health insurance in force and premiums for
the years ended:
December 31,
(in millions)
2014
2013
2012
Premiums
Direct
$
1,178
$
1,015
$
890
Assumed from other companies
—
—
—
Ceded to other companies
(347
)
(291
)
(255
)
Net
$
831
$
724
$
635
Life, accident and health insurance in force
Direct
$
241,936
$
228,095
$
216,002
Assumed from other companies
5
6
5
Ceded to other companies
(59,588
)
(58,310
)
(59,895
)
Net
$
182,353
$
169,791
$
156,112
Amounts recoverable under reinsurance contracts totaled $704 million, $675 million and $684 million as of
December 31, 2014, 2013 and 2012, respectively, and are included in other assets in the consolidated balance sheets.
(18)
Segment Information
Management views the Company's business primarily based on its underlying products and uses this basis to define its
four reportable segments: Individual Products and Solutions-Annuity (formerly named Individual Investments), Retirement Plans, Individual Products and Solutions-Life and NBSG (formerly named Individual Protection) and Corporate and Other.
The primary segment profitability measure that management uses is a non-GAAP financial measure called pre-tax operating earnings (loss), which
is calculated by adjusting income before federal income taxes to exclude: (1) net realized investment gains and losses, except for operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net
realized gains and losses related to hedges on GMDB contracts); (2) the adjustment to amortization of DAC and other related expenses related to net realized investment gains and losses; and (3) net losses attributable to noncontrolling
interest.
Due to a change in the manner in which we view our reportable segments, certain prior period amounts have been restated.
F-42
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
Individual Products and Solutions-Annuity
The Individual Products & Solutions - Annuity segment consists of individual annuity products marketed under the Nationwide
Destination
SM
and other Nationwide-specific or private label brands. Deferred annuity contracts provide the customer with tax-deferred accumulation of savings and flexible payout options including
lump sum, systematic withdrawal or a stream of payments for life. In addition, deferred variable annuity contracts provide the customer with access to a wide range of investment options and asset protection features, while deferred fixed annuity
contracts generate a return for the customer at a specified interest rate fixed for prescribed periods. Immediate annuities differ from deferred annuities in that the initial premium is exchanged for a stream of income for a certain period and/or
for the owner's lifetime without future access to the original investment. The majority of assets and recent sales for the Individual Products & Solutions - Annuity segment consist of deferred variable annuities.
Retirement Plans
The Retirement Plans segment is comprised of the private and public sector retirement plans businesses. The private sector business primarily
includes Internal Revenue Code ("IRC") Section 401 qualified plans funded through fixed and variable group annuity contracts issued through NLIC. The public sector business primarily includes IRC Section 457 (b) and
Section 401(a) governmental plans, both in the form of full-service arrangements that provide plan administration along with fixed and variable group annuities, as well as administration-only business. Across the public and private sector
business Nationwide Investment Advisors managed account services are also available. The Retirement Plans segment also includes stable value wrap products and solutions.
Individual Products and Solutions-Life and NBSG
The Individual Products & Solutions - Life and NBSG segment consists of life insurance products, including individual variable
universal life, COLI and BOLI products, traditional life insurance products, fixed universal life insurance products and indexed universal life insurance products. Life insurance products provide a death benefit and, for certain products, allow the
customer to build cash value on a tax-advantaged basis.
Corporate and Other
The Corporate and Other segment includes non-operating realized gains and losses and related amortization, including mark-to-market adjustments
on embedded derivatives, net of economic hedges, related to products with living benefits included in the Individual Products & Solutions - Annuity segment, other-than-temporary impairment losses, and other revenues and expenses not
allocated to other segments. Additionally, this segment includes the funding agreements with the FHLB, as well as the medium-term note ("MTN") program that concluded in the fourth quarter of 2012.
F-43
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
The following tables summarize the Company's business segment operating results for the
years ended:
(in millions)
Individual
Products and
Solutions-
Annuity
Retirement
Plans
Individual
Products and
Solutions-Life
and NBSG
Corporate
and Other
Total
December 31, 2014
Revenues:
Policy charges
$
1,175
$
107
$
783
$
—
$
2,065
Premiums
518
—
284
29
831
Net investment income
546
750
565
39
1,900
Non-operating net realized investment losses, including other-than-temporary impairment losses
1
—
—
—
(1,051
)
(1,051
)
Other revenues
2
(38
)
—
12
10
(16
)
Total revenues
$
2,201
$
857
$
1,644
$
(973
)
$
3,729
Benefits and expenses:
Interest credited to policyholder accounts
$
370
$
482
$
231
$
13
$
1,096
Benefits and claims
828
—
644
30
1,502
Amortization of DAC
120
(28
)
122
(7
)
207
Other expenses, net of deferrals
300
153
348
254
1,055
Total benefits and expenses
$
1,618
$
607
$
1,345
$
290
$
3,860
Income before federal income taxes and noncontrolling interests
$
583
$
250
$
299
$
(1,263
)
$
(131
)
Less:    non-operating net realized investment losses, including other-than-temporary impairment losses
1
—
—
—
1,051
Less:    adjustment to amortization of DAC and other related expenses related to net realized investment gains and
losses
—
—
—
(11
)
Less:    net loss attributable to noncontrolling interest
—
—
—
94
Pre-tax operating earnings (loss)
$
583
$
250
$
299
$
(129
)
Assets as of year end
$
72,429
$
30,744
$
29,322
$
11,029
$
143,524
1
Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).
2
Includes operating items discussed above.
F-44
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(in millions)
Individual
Products and
Solutions-
Annuity
Retirement
Plans
Individual
Products and
Solutions-Life
and NBSG
Corporate
and Other
Total
December 31, 2013
Revenues:
Policy charges
$
1,021
$
101
$
727
$
—
$
1,849
Premiums
416
—
282
26
724
Net investment income
546
743
544
16
1,849
Non-operating net realized investment gains, including other-than-temporary impairment losses
1
—
—
—
783
783
Other revenues
2
(109
)
—
6
15
(88
)
Total revenues
$
1,874
$
844
$
1,559
$
840
$
5,117
Benefits and expenses:
Interest credited to policyholder accounts
$
377
$
473
$
213
$
4
$
1,067
Benefits and claims
694
—
636
24
1,354
Amortization of DAC
185
(2
)
125
66
374
Other expenses, net of deferrals
295
151
347
188
981
Total benefits and expenses
$
1,551
$
622
$
1,321
$
282
$
3,776
Income before federal income taxes and noncontrolling interests
$
323
$
222
$
238
$
558
$
1,341
Less:    non-operating net realized investment gains, including other-than-temporary impairment losses
1
—
—
—
(783
)
Less:    adjustment to amortization of DAC and other related expenses related to net realized investment gains and
losses
—
—
—
70
Less:    net loss attributable to noncontrolling interest
—
—
—
82
Pre-tax operating earnings (loss)
$
323
$
222
$
238
$
(73
)
Assets as of year end
$
68,805
$
29,904
$
27,183
$
7,553
$
133,445
1
Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).
2
Includes operating items discussed above.
F-45
Table of Contents
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Notes to December 31, 2014, 2013 and 2012 Consolidated Financial Statements
(in millions)
Individual
Products and
Solutions-
Annuity
Retirement
Plans
Individual
Products and
Solutions-Life
and NBSG
Corporate
and Other
Total
December 31, 2012
Revenues:
Policy charges
$
899
$
94
$
677
$
—
$
1,670
Premiums
334
—
274
27
635
Net investment income
551
736
534
4
1,825
Non-operating net realized investment gains, including of other-than-temporary impairment losses
1
—
—
—
427
427
Other revenues
2
(124
)
—
—
23
(101
)
Total revenues
$
1,660
$
830
$
1,485
$
481
$
4,456
Benefits and expenses:
Interest credited to policyholder accounts
$
375
$
457
$
199
$
7
$
1,038
Benefits and claims
613
—
588
26
1,227
Amortization of DAC
185
14
150
226
575
Other expenses, net of deferrals
266
164
307
180
917
Total benefits and expenses
$
1,439
$
635
$
1,244
$
439
$
3,757
Income before federal income taxes and noncontrolling interests
$
221
$
195
$
241
$
42
$
699
Less:    non-operating net realized investment gains, including other-than-temporary impairment losses
1
—
—
—
(427
)
Less:    adjustment to amortization of DAC and other related expenses related to net realized investment gains and
losses
—
—
—
243
Less:    net loss attributable to noncontrolling interest
—
—
—
61
Pre-tax operating earnings (loss)
$
221
$
195
$
241
$
(81
)
Assets as of year end
$
58,707
$
27,842
$
25,301
$
8,320
$
120,170
1
Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).
2
Includes operating items discussed above.
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NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Schedule I Consolidated Summary of Investments – Other Than Investments in Related Parties
As of December 31, 2014 (in millions)
Column A
Column B
Column C
Column D
Type of investment
Cost
Fair value
Amount at
which shown
in the
consolidated
balance sheet
Fixed maturity securities, available-for-sale:
Bonds:
U.S. government and agencies
$
448
$
527
$
527
Obligations of states, political subdivisions and foreign governments
1,966
2,285
2,285
Public utilities
2,969
3,228
3,228
All other corporate, mortgage-backed and asset-backed securities
27,815
29,378
29,378
Total fixed maturity securities, available-for-sale
$
33,198
$
35,418
$
35,418
Equity securities, available-for-sale:
Common stocks:
Industrial, miscellaneous and all other
$
6
$
16
$
16
Nonredeemable preferred stocks
—
5
5
Total equity securities, available-for-sale
$
6
$
21
$
21
Trading assets
20
21
21
Mortgage loans, net of allowance
7,296
7,270
1
Policy loans
992
992
Other investments
780
780
Short-term investments
935
935
Total investments
$
43,227
$
45,437
1
Difference from Column B primarily is attributable to valuation allowances due to impairments on mortgage loans (see Note 6 to the audited consolidated financial statements).
See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.
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NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Schedule III Supplementary Insurance Information
As
of December 31, 2014, 2013 and 2012 and for each of the years then ended (in millions)
Column A
Column B
Column C
Column D
Column E
Column F
Year: Segment
Deferred
policy
acquisition
costs
Future policy
benefits, losses,
claims and
loss expenses
Unearned
premiums
1
Other policy
claims and
benefits payable
1
Premium
revenue
2014
IPS - Annuity
$
2,495
$
12,619
$
518
Retirement Plans
216
14,905
—
IPS - Life and NBSG
1,717
10,763
284
Corporate and Other
(365
)
2,443
29
Total
$
4,063
$
40,730
$
831
2013
IPS - Annuity
$
2,214
$
10,985
$
416
Retirement Plans
179
14,313
—
IPS - Life and NBSG
1,557
10,068
282
Corporate and Other
(172
)
1,399
26
Total
$
3,778
$
36,765
$
724
2012
IPS - Annuity
$
2,110
$
12,214
$
334
Retirement Plans
168
13,628
—
IPS - Life and NBSG
1,442
9,564
301
Corporate and Other
(471
)
748
—
Total
$
3,249
$
36,154
$
635
Column A
Column G
Column H
Column I
Column J
Column K
Year: Segment
Net
investment
income
2
Benefits, claims,
losses and
settlement expenses
Amortization
of deferred policy
acquisition costs
Other
operating
expenses
2
Premiums
written
2014
IPS - Annuity
$
546
$
1,198
$
120
$
300
Retirement Plans
750
482
(28
)
153
IPS - Life and NBSG
565
875
122
348
Corporate and Other
39
43
(7
)
254
Total
$
1,900
$
2,598
$
207
$
1,055
2013
IPS - Annuity
$
546
$
1,071
$
185
$
295
Retirement Plans
743
473
(2
)
151
IPS - Life and NBSG
544
849
125
347
Corporate and Other
16
28
66
188
Total
$
1,849
$
2,421
$
374
$
981
2012
IPS - Annuity
$
551
$
988
$
185
$
266
Retirement Plans
736
457
14
164
IPS - Life and NBSG
536
787
150
307
Corporate and Other
2
33
226
180
Total
$
1,825
$
2,265
$
575
$
917
1
Unearned premiums and other policy claims and benefits payable are included in Column C amounts.
2
Allocations of net investment income and certain operating expenses are based on numerous assumptions and estimates, and reported segment operating results would change if different methods were applied.
See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.
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NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Schedule IV Reinsurance
As of December 31, 2014,
2013 and 2012 and for each of the years then ended (in millions)
Column A
Column B
Column C
Column D
Column E
Column F
Gross
amount
Ceded to
other
companies
Assumed
from other
companies
Net
amount
Percentage
of amount
assumed
to net
2014
Life, accident and health insurance in force
$
241,936
$
(59,588
)
$
5
$
182,353
—
Premiums:
Life insurance
1
$
888
$
(57
)
$
—
$
831
—
Accident and health insurance
290
(290
)
—
—
—
Total
$
1,178
$
(347
)
$
—
$
831
—
2013
Life, accident and health insurance in force
$
228,095
$
(58,310
)
$
6
$
169,791
—
Premiums:
Life insurance
1
$
783
$
(59
)
$
—
$
724
—
Accident and health insurance
232
(232
)
—
—
—
Total
$
1,015
$
(291
)
$
—
$
724
—
2012
Life, accident and health insurance in force
$
216,002
$
(59,895
)
$
5
$
156,112
—
Premiums:
Life insurance
1
$
701
$
(66
)
$
—
$
635
—
Accident and health insurance
189
(189
)
—
—
—
Total
$
890
$
(255
)
$
—
$
635
—
1
Primarily represents premiums from traditional life insurance and life-contingent immediate annuities and excludes deposits on investment and universal life insurance products.
See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.
F-49
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NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)
Schedule V Valuation and Qualifying Accounts
Years
ended December 31, 2014, 2013 and 2012 (in millions)
Column A
Column B
Column C
Column D
Column E
Description
Balance at
beginning
of period
Charged to
costs and
expenses
Charged to
other
accounts
Deductions
1
Balance at
end of
period
2014
Valuation allowances - mortgage loans
$
35
$
(8
)
$
—
$
1
$
26
2013
Valuation allowances - mortgage loans
$
44
$
(4
)
$
—
$
5
$
35
2012
Valuation allowances - mortgage loans
$
60
$
1
$
—
$
17
$
44
1
Amounts generally represent payoffs, sales and recoveries.
See accompanying notes to consolidated financial
statements and report of independent registered public accounting firm.
F-50
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PART II
INFORMATION NOT REQUIRED IN A PROSPECTUS
Item 13.
Other Expenses of Issuance and
Distribution
Not Applicable
Item 14.
Indemnification of Directors
and Officers
Ohio's General
Corporation Law expressly authorizes and Nationwide's Amended and Restated Code of Regulations provides for indemnification by Nationwide of any person who, because such person is or was a director, officer or employee of Nationwide, was or is a
party, or is threatened to be made a party to:
•
any threatened, pending or
completed civil action, suit or proceeding;
•
any threatened, pending or
completed criminal action, suit or proceeding;
•
any threatened, pending or
completed administrative action or proceeding;
•
any
threatened, pending or completed investigative action or proceeding.
The indemnification will be for actual and reasonable
expenses, including attorney's fees, judgments, fines and amounts paid in settlement by such person in connection with such action, suit or proceeding, to the extent and under the circumstances permitted by Ohio's General Corporation Law. Nationwide
has been informed that in the opinion of the Securities and Exchange Commission, the indemnification of directors, officers or persons controlling Nationwide for liabilities arising under the Securities Act of 1933 ("Act") is against public policy
as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities is asserted by a director, officer or controlling person in connection with the securities being registered, the
registrant will submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act. Nationwide and its directors, officers and/or controlling persons will be governed by the
final adjudication of such issue. Nationwide will not be required to seek the court's determination if, in the opinion of Nationwide's counsel, the matter has been settled by controlling precedent.
However, the payment by the registrant of expenses incurred or
paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding is permitted.
Item 15.
Recent Sales of Unregistered
Securities.
Not Applicable
Item 16.
Exhibits and Financial
Statement Schedules
(a)
Exhibits
(1)
Form of Underwriting
Agreement - filed previously on October 2, 2008, with Pre-Effective Amendment 3 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-149613.
(2)
Articles of Merger of
Nationwide Life Insurance Company of America with and into Nationwide Life Insurance Company effective December 4, 2009 – filed previously on January 4, 2010, with N-4 Registration No. 333-164125.
(3)(i)
Amended Articles of
Incorporation Nationwide Life Insurance Company - filed previously on October 2, 2008, with Pre-Effective Amendment 3 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-149613.
(3)(ii)
Nationwide Life Insurance
Company Amended and Restated Code of Regulations - filed previously on January 4, 2010, with N-4 Registration No. 333-164125.
(4)(i)
Individual Single Purchase
Payment Immediate Fixed Income Annuity Non-Participating Contract - filed previously on February 10, 2009 with Pre-Effective Amendment 1 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-155368.
(4)(ii)
Form of
Supplemental Option To The Individual Single Purchase Payment Immediate Fixed Income Annuity - filed previously on February 10, 2009 with Pre-Effective Amendment 1 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-155368.
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(4)(iii)
Form of Application for
Individual Single Purchase Payment Immediate Fixed Income Annuity - filed previously on February 10, 2009 with Pre-Effective Amendment 1 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-155368.
(5)
Opinion Regarding Legality
– Attached hereto.
(6)
Not applicable
(7)
Not applicable
(8)
None.
(9)
Not applicable
(10)(i)
Form of Administrative
Services Agreement – filed previously on February 10, 2009 with Pre-Effective Amendment 1 to Form S-1 for Nationwide Life Insurance Company, Registration No. 333-155368.
(10)(ii)
Tax Sharing Agreement dated
as of January 2, 2009 between Nationwide Life Insurance Company and any corporation that is or may hereafter become a subsidiary of Nationwide Life Insurance Company – filed previously on March 27, 2012 with Post-Effective Amendment No. 5 to
Form S-1 for Nationwide Life Insurance Company, Registration No. 333-155368.
(11)
Not applicable
(12)
Not applicable
(13)
Not applicable
(14)
Not applicable
(15)
Not applicable
(16)
Not applicable
(17)
Not applicable
(18)
Not applicable
(19)
Not applicable
(20)
Not applicable
(21)
Subsidiaries of the
Registrant - Attached hereto.
(22)
Not applicable
(23)(i)
Consent of Independent
Registered Public Accounting Firm - Attached hereto.
(23)(ii)
Consent of Counsel - See
Exhibit 5.
(24)
Power of Attorney - Attached
hereto.
(25)
Not applicable
(26)
Not applicable
(27)
Not applicable
(101.INS)
XBRL Instance Document -
Attached hereto.
(101.SCH)
XBRL Taxonomy Extension
Schema - Attached hereto.
(101.CAL)
XBRL Taxonomy Extension
Calculation Linkbase - Attached hereto.
(101.DEF)
XBRL Taxonomy Extension
Definition Linkbase - Attached hereto.
(101.LAB)
XBRL Taxonomy Extension
Label Linkbase - Attached hereto.
(101.PRE)
XBRL
Taxonomy Extension Presentation Linkbase - Attached hereto.
(b)
Financial Statement Schedules
Attached
herein.
Item 17.
Undertakings
The undersigned registrant hereby
undertakes:
(a)(1)
To file, during any period
in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus
required by section 10(a)(3) of the Securities Act of 1933;
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(ii)
To reflect in the prospectus
any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the
registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end
of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement;
(iii)
To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
(2)
That, for the purpose of
determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof.
(3)
To remove from registration
by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4)
That, for the purpose of
determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or
prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time
of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first
use.
(5)
That, for
the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned Registrant undertakes that in a primary offering of securities of the undersigned
Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the
undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus
or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424;
(ii)
Any free writing prospectus
relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned Registrant;
(iii)
The portion of any other
free writing prospectus relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and
(iv)
Any other
communication that is an offer in the offering made by the undersigned Registrant to the purchaser.
(b)
Insofar as indemnification
for liabilities arising under the Securities Act of 1933 ("Act") may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the Registrant of expenses incurred or paid by a director, officers or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
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SIGNATURES
As required by the Securities Act of 1933, the Registrant
certifies that it has caused this Registration Statement to be signed by the undersigned, duly authorized, in the City of Columbus, and State of Ohio, on March 27, 2015.
NATIONWIDE
 LIFE INSURANCE COMPANY
(Registrant)
By:
 /s/ JAMIE RUFF CASTO
Jamie
 Ruff Casto
Attorney-in-Fact
As
required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated, on March 27, 2015.
KIRT
 A. WALKER
Kirt
 A. Walker, President and Chief Operating Officer, and Director
MARK
 R. THRESHER
Mark
 R. Thresher, Executive Vice President and Director
TIMOTHY
 G. FROMMEYER
Timothy
 G. Frommeyer, Senior Vice President-Chief Financial Officer and Director
ERIC
 S. HENDERSON
Eric
 S. Henderson, Senior Vice President - Individual Products & Solutions and Director
JOHN
 L. CARTER
John
 L. Carter, Senior Vice President – Nationwide Retirement Plans and Director
STEPHEN
 S. RASMUSSEN
Stephen
 S. Rasmussen, Director
By
 /s/ JAMIE RUFF CASTO
Jamie
 Ruff Casto
Attorney-in-Fact