TALCOTT RESOLUTION LIFE INSURANCE COMPANY · Annual Statement for the year 2018 of the TALCOTT...

Annual Statement for the year 2018 of the TALCOTT RESOLUTION LIFE INSURANCE COMPANY

2

ASSETSCurrent Year Prior Year

1 2 3 4Net Admitted

Nonadmitted Assets NetAssets Assets (Cols. 1 - 2) Admitted Assets

1. Bonds (Schedule D)........................................................................................................... ...........6,935,105,093 .................................... ...........6,935,105,093 .........12,266,208,105

2. Stocks (Schedule D):

2.1 Preferred stocks....................................................................................................... .................55,077,219 .................................... .................55,077,219 .................52,023,429

2.2 Common stocks....................................................................................................... ...........1,295,426,337 .................11,826,307 ...........1,283,600,030 ...........1,330,029,847

3. Mortgage loans on real estate (Schedule B):

3.1 First liens.................................................................................................................. ...........1,101,528,329 .................................... ...........1,101,528,329 ...........1,723,886,071

3.2 Other than first liens................................................................................................. .................................... .................................... .................................0 ....................................

4. Real estate (Schedule A):

4.1 Properties occupied by the company (less $..........0encumbrances)........................................................................................................ .................................... .................................... .................................0 .................68,504,335

4.2 Properties held for the production of income (less $..........0encumbrances)........................................................................................................ .................................... .................................... .................................0 ....................................

4.3 Properties held for sale (less $..........0 encumbrances).......................................... .................................... .................................... .................................0 ....................................

5. Cash ($.....9,348,970, Schedule E-Part 1), cash equivalents ($.....96,778,764,Schedule E-Part 2) and short-term investments ($.....132,096,181, Schedule DA)......... ..............238,223,915 .................................... ..............238,223,915 ..............350,124,390

6. Contract loans (including $..........0 premium notes).......................................................... ...........1,323,078,452 .................................... ...........1,323,078,452 ...........1,309,592,080

7. Derivatives (Schedule DB)................................................................................................. ..............143,007,053 .................................... ..............143,007,053 ..............291,457,331

8. Other invested assets (Schedule BA)................................................................................ ..............403,961,750 ......................121,869 ..............403,839,881 ...........1,045,298,934

9. Receivables for securities.................................................................................................. ...................4,261,910 .................................... ...................4,261,910 .................81,150,259

10. Securities lending reinvested collateral assets (Schedule DL)......................................... ..............179,280,942 .................................... ..............179,280,942 ..............463,582,513

11. Aggregate write-ins for invested assets............................................................................. .................48,343,627 .................................0 .................48,343,627 .................32,925,780

12. Subtotals, cash and invested assets (Lines 1 to 11)......................................................... .........11,727,294,626 .................11,948,176 .........11,715,346,450 .........19,014,783,073

13. Title plants less $..........0 charged off (for Title insurers only)........................................... .................................... .................................... .................................0 ....................................

14. Investment income due and accrued................................................................................. ..............124,298,540 .................................... ..............124,298,540 ..............320,383,300

15. Premiums and considerations:

15.1 Uncollected premiums and agents' balances in the course of collection............... ......................274,545 .................................... ......................274,545 ........................55,939

15.2 Deferred premiums, agents' balances and installments booked but deferredand not yet due (including $..........0 earned but unbilled premiums)...................... .................................... .................................... .................................0 ....................................

15.3 Accrued retrospective premiums ($..........0) and contracts subject toredetermination ($..........0)....................................................................................... .................................... .................................... .................................0 ....................................

16. Reinsurance:

16.1 Amounts recoverable from reinsurers..................................................................... .................26,145,982 .................................... .................26,145,982 ...................4,733,824

16.2 Funds held by or deposited with reinsured companies........................................... .................................... .................................... .................................0 ....................................

16.3 Other amounts receivable under reinsurance contracts......................................... ..............162,771,887 .................................... ..............162,771,887 ..............154,067,017

17. Amounts receivable relating to uninsured plans................................................................ .............................680 .................................... .............................680 .............................680

18.1 Current federal and foreign income tax recoverable and interest thereon....................... .................32,094,531 .................................... .................32,094,531 .................41,630,938

18.2 Net deferred tax asset........................................................................................................ ..............163,048,885 ...................5,915,885 ..............157,133,000 ..............463,369,698

19. Guaranty funds receivable or on deposit........................................................................... ...................3,991,490 .................................... ...................3,991,490 .................10,843,393

20. Electronic data processing equipment and software......................................................... .................................... .................................... .................................0 ....................................

21. Furniture and equipment, including health care delivery assets ($..........0)..................... .................................... .................................... .................................0 ....................................

22. Net adjustment in assets and liabilities due to foreign exchange rates............................ .................................... .................................... .................................0 ....................................

23. Receivables from parent, subsidiaries and affiliates......................................................... ...................6,567,130 .................................... ...................6,567,130 .................16,079,562

24. Health care ($..........0) and other amounts receivable...................................................... .............................703 .................................... .............................703 ..........................5,921

25. Aggregate write-ins for other-than-invested assets........................................................... .................51,441,515 ...................7,048,118 .................44,393,397 .................43,632,254

26. Total assets excluding Separate Accounts, Segregated Accounts and ProtectedCell Accounts (Lines 12 to 25)........................................................................................... .........12,297,930,514 .................24,912,179 .........12,273,018,335 .........20,069,585,601

27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts............... .........73,980,302,648 ........................35,305 .........73,980,267,343 .........89,287,007,010

28. TOTAL (Lines 26 and 27).................................................................................................. .........86,278,233,162 .................24,947,484 .........86,253,285,678 .......109,356,592,611

DETAILS OF WRITE-INS1101. Collateral on derivatives..................................................................................................... .................48,343,627 .................................... .................48,343,627 .................32,925,7801102. ............................................................................................................................................ .................................... .................................... .................................0 ....................................1103. ............................................................................................................................................ .................................... .................................... .................................0 ....................................1198. Summary of remaining write-ins for Line 11 from overflow page...................................... .................................0 .................................0 .................................0 .................................01199. Totals (Lines 1101 through 1103 plus 1198) (Line 11 above).......................................... .................48,343,627 .................................0 .................48,343,627 .................32,925,7802501. Disbursements and items not allocated............................................................................. .................51,441,515 ...................7,048,118 .................44,393,397 .................43,632,2542502. ............................................................................................................................................ .................................... .................................... .................................0 .................................02503. ............................................................................................................................................ .................................... .................................... .................................0 ....................................2598. Summary of remaining write-ins for Line 25 from overflow page...................................... .................................0 .................................0 .................................0 .................................02599. Totals (Lines 2501 through 2503 plus 2598) (Line 25 above).......................................... .................51,441,515 ...................7,048,118 .................44,393,397 .................43,632,254


3

LIABILITIES, SURPLUS AND OTHER FUNDS1 2

Current Year Prior Year1. Aggregate reserve for life contracts $.....7,214,821,321 (Exhibit 5, Line 9999999) less $..........0

included in Line 6.3 (including $.....10,487,095 Modco Reserve)................................................................................................... ..................7,214,821,321 ................11,751,969,0432. Aggregate reserve for accident and health contracts (including $.........0 Modco Reserve)........................................................... ............................175,373 ...........................................3. Liability for deposit-type contracts (Exhibit 7, Line 14, Col. 1) (including $..........0 Modco Reserve)............................................. .....................241,563,170 ..................2,240,045,2344. Contract claims:

4.1 Life (Exhibit 8, Part 1, Line 4.4, Col. 1 less sum of Cols. 9, 10 and 11).............................................................................. .....................217,675,256 .....................196,501,8454.2 Accident and health (Exhibit 8, Part 1, Line 4.4, sum of Cols. 9, 10 and 11)..................................................................... ........................................... ...........................................

5. Policyholders' dividends $..........0 and coupons $..........0 due and unpaid (Exhibit 4, Line 10).................................................... ........................................... ...........................................6. Provision for policyholders' dividends and coupons payable in following calendar year - estimated amounts:

6.1 Dividends apportioned for payment (including $..........0 Modco)........................................................................................ .........................1,764,053 .........................1,749,2346.2 Dividends not yet apportioned (including $..........0 Modco)................................................................................................ ........................................... ...........................................6.3 Coupons and similar benefits (including $..........0 Modco)................................................................................................. ........................................... ...........................................

7. Amount provisionally held for deferred dividend policies not included in Line 6............................................................................ ........................................... ...........................................8. Premiums and annuity considerations for life and accident and health contracts received in advance less $..........0

discount; including $..........0 accident and health premiums (Exhibit 1, Part 1, Col. 1, sum of Lines 4 and 14)............................ ........................................... ...........................................9. Contract liabilities not included elsewhere:

9.1 Surrender values on canceled contracts............................................................................................................................. ........................................... ...........................................9.2 Provision for experience rating refunds, including the liability of $.....0 accident and health experience

rating refunds of which $..........0 is for medical loss ratio rebate per the Public Health Service Act.................................. .....................298,073,813 .....................289,523,7359.3 Other amounts payable on reinsurance, including $.....2 assumed and $.....194,276,146 ceded..................................... .....................194,276,148 .....................160,224,0369.4 Interest Maintenance Reserve (IMR, Line 6)....................................................................................................................... .....................112,325,472 .....................234,110,390

10. Commissions to agents due or accrued - life and annuity contracts $.....6,486,050, accident and health $.....569,969and deposit-type contract funds $..........0........................................................................................................................................ .........................7,056,019 .........................8,930,809

11. Commissions and expense allowances payable on reinsurance assumed................................................................................... ........................................... ...........................................12. General expenses due or accrued (Exhibit 2, Line 12, Col. 6)....................................................................................................... .......................27,360,277 .....................125,517,19713. Transfers to Separate Accounts due or accrued (net) (including $.....(310,866,607) accrued for expense

allowances recognized in reserves, net of reinsured allowances).................................................................................................. ....................(992,313,907) ....................(854,557,993)14. Taxes, licenses and fees due or accrued, excluding federal income taxes (Exhibit 3, Line 9, Col. 5)........................................... .......................12,499,052 .........................8,770,095

15.1 Current federal and foreign income taxes, including $..........0 on realized capital gains (losses).................................................. ........................................... ...........................................15.2 Net deferred tax liability.................................................................................................................................................................... ........................................... ...........................................16. Unearned investment income.......................................................................................................................................................... .........................4,806,152 .........................4,339,77117. Amounts withheld or retained by company as agent or trustee...................................................................................................... ........................................... ...........................................18. Amounts held for agents' account, including $.....6,175,641 agents' credit balances.................................................................... .........................6,176,344 .........................3,764,57719. Remittances and items not allocated............................................................................................................................................... .......................30,197,235 .......................39,628,20620. Net adjustment in assets and liabilities due to foreign exchange rates.......................................................................................... ........................................... ...........................................21. Liability for benefits for employees and agents if not included above............................................................................................. ........................................... ...........................................22. Borrowed money $.....(0) and interest thereon $.....0...................................................................................................................... ........................................... .........................8,114,72823. Dividends to stockholders declared and unpaid.............................................................................................................................. ........................................... ...........................................24. Miscellaneous liabilities:

24.01 Asset valuation reserve (AVR Line 16, Col. 7).................................................................................................................... .....................153,755,091 .....................301,863,29924.02 Reinsurance in unauthorized and certified ($..........0) companies...................................................................................... ........................................... ...........................................24.03 Funds held under reinsurance treaties with unauthorized and certified ($..........0) reinsurers.......................................... ........................................... ...........................................24.04 Payable to parent, subsidiaries and affiliates...................................................................................................................... ........................................... ...................................68124.05 Drafts outstanding................................................................................................................................................................ .......................38,913,111 .......................57,957,94624.06 Liability for amounts held under uninsured plans................................................................................................................ ........................................... ...........................................24.07 Funds held under coinsurance............................................................................................................................................ .....................251,168,457 .....................228,899,28624.08 Derivatives............................................................................................................................................................................ .....................198,220,602 .....................656,759,11424.09 Payable for securities........................................................................................................................................................... .........................8,347,616 .......................83,440,77024.10 Payable for securities lending.............................................................................................................................................. .....................179,280,942 .....................463,582,51324.11 Capital notes $..........0 and interest thereon $..........0......................................................................................................... ........................................... ...........................................

25. Aggregate write-ins for liabilities...................................................................................................................................................... .....................354,178,373 .....................505,845,13326. Total liabilities excluding Separate Accounts business (Lines 1 to 25).......................................................................................... ..................8,560,319,969 ................16,516,979,65327. From Separate Accounts Statement................................................................................................................................................ ................73,980,302,648 ................89,287,113,36528. Total liabilities (Line 26 and 27)....................................................................................................................................................... ................82,540,622,617 ..............105,804,093,01829. Common capital stock...................................................................................................................................................................... .........................5,690,000 .........................5,690,00030. Preferred capital stock...................................................................................................................................................................... ........................................... ...........................................31. Aggregate write-ins for other-than-special surplus funds................................................................................................................ .....................165,890,931 ........................................032. Surplus notes.................................................................................................................................................................................... ........................................... ...........................................33. Gross paid in and contributed surplus (Page 3, Line 33, Col. 2 plus Page 4, Line 51.1, Col. 1)................................................... ..................1,107,535,846 ..................1,624,057,78534. Aggregate write-ins for special surplus funds.................................................................................................................................. ........................................0 ........................................035. Unassigned funds (surplus)............................................................................................................................................................. ..................2,433,546,284 ..................1,922,751,80836. Less treasury stock, at cost:

36.1 .....0.000 shares common (value included in Line 29 $..........0).......................................................................................... ........................................... ...........................................36.2 .....0.000 shares preferred (value included in Line 30 $..........0)......................................................................................... ........................................... ...........................................

37. Surplus (Total Lines 31 + 32 + 33 + 34 + 35 - 36) (including $..........0 in Separate Accounts Statement).................................... ..................3,706,973,061 ..................3,546,809,59338. Totals of Lines 29, 30 and 37 (Page 4, Line 55)............................................................................................................................. ..................3,712,663,061 ..................3,552,499,59339. Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)........................................................................................................................ ................86,253,285,678 ..............109,356,592,611

DETAILS OF WRITE-INS2501. Payable for repurchase agreements................................................................................................................................................ .....................186,034,629 .....................201,648,2542502. Collateral on derivatives................................................................................................................................................................... .......................75,644,428 .......................57,952,4272503. Provision for future dividends........................................................................................................................................................... .......................37,081,156 .......................27,624,1512598. Summary of remaining write-ins for Line 25 from overflow page.................................................................................................... .......................55,418,159 .....................218,620,3012599. Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)........................................................................................................ .....................354,178,373 .....................505,845,1333101. Gain on inforce reinsurance............................................................................................................................................................. .....................165,890,931 ...........................................3102. .......................................................................................................................................................................................................... ........................................... ...........................................3103. .......................................................................................................................................................................................................... ........................................... ...........................................3198. Summary of remaining write-ins for Line 31 from overflow page.................................................................................................... ........................................0 ........................................03199. Totals (Lines 3101 through 3103 plus 3198) (Line 31 above)........................................................................................................ .....................165,890,931 ........................................03401. .......................................................................................................................................................................................................... ........................................... ...........................................3402. .......................................................................................................................................................................................................... ........................................... ...........................................3403. .......................................................................................................................................................................................................... ........................................... ...........................................3498. Summary of remaining write-ins for Line 34 from overflow page.................................................................................................... ........................................0 ........................................03499. Totals (Lines 3401 through 3403 plus 3498) (Line 34 above)........................................................................................................ ........................................0 ........................................0


4

SUMMARY OF OPERATIONS1 2

Current Year Prior Year 1. Premiums and annuity considerations for life and accident and health contracts (Exhibit 1, Part 1, Line 20.4, Col. 1, less Col. 11) ..............(5,343,534,485) ..................432,980,731 2. Considerations for supplementary contracts with life contingencies......................................................................................................... ....................24,849,679 ....................21,295,8253. Net investment income (Exhibit of Net Investment Income, Line 17)........................................................................................................ ..................534,685,890 ...............1,835,740,6484. Amortization of Interest Maintenance Reserve (IMR) (Line 5).................................................................................................................. ....................10,556,419 ....................19,118,6135. Separate Accounts net gain from operations excluding unrealized gains or losses.................................................................................. ....................................... .......................................6. Commissions and expense allowances on reinsurance ceded (Exhibit 1, Part 2, Line 26.1, Col. 1)........................................................ ....................27,252,120 ....................21,791,9387. Reserve adjustments on reinsurance ceded............................................................................................................................................. ..............(1,554,250,460) ..............(1,203,357,036)8. Miscellaneous Income:

8.1 Income from fees associated with investment management, administration and contract guarantees from Separate Accounts ..................853,676,775 ..................862,824,5638.2 Charges and fees for deposit-type contracts...................................................................................................................................... ....................................... .......................................8.3 Aggregate write-ins for miscellaneous income................................................................................................................................... ....................72,621,221 ..................102,313,197

9. Totals (Lines 1 to 8.3)................................................................................................................................................................................ ..............(5,374,142,841) ...............2,092,708,48010. Death benefits........................................................................................................................................................................................... ..................462,250,272 ..................426,742,41111. Matured endowments (excluding guaranteed annual pure endowments)................................................................................................. ......................2,594,531 .........................823,75312. Annuity benefits (Exhibit 8, Part 2, Line 6.4, Cols. 4 + 8).......................................................................................................................... ..................451,719,758 ..................731,374,66613. Disability benefits and benefits under accident and health contracts........................................................................................................ ...........................16,800 ...........................36,31914. Coupons, guaranteed annual pure endowments and similar benefits....................................................................................................... ....................................... .......................................15. Surrender benefits and withdrawals for life contracts................................................................................................................................ ...............6,864,950,080 ...............4,877,962,96416. Group conversions.................................................................................................................................................................................... ....................................... .......................................17. Interest and adjustments on contract or deposit-type contract funds........................................................................................................ ....................39,042,242 ..................141,151,43718. Payments on supplementary contracts with life contingencies................................................................................................................. ....................25,515,231 ....................19,081,32219. Increase in aggregate reserves for life and accident and health contracts............................................................................................... ..............(1,277,649,717) .................(139,667,401)20. Totals (Lines 10 to 19)............................................................................................................................................................................... ...............6,568,439,198 ...............6,057,505,47121. Commissions on premiums, annuity considerations and deposit-type contract funds (direct business only)

(Exhibit 1, Part 2, Line 31, Col. 1).............................................................................................................................................................. ....................55,989,378 ....................60,944,42722. Commissions and expense allowances on reinsurance assumed (Exhibit 1, Part 2, Line 26.2, Col. 1)................................................... ...........................20,646 ..........................(44,132)23. General insurance expenses (Exhibit 2, Line 10, Columns 1, 2, 3 and 4)................................................................................................. ..................118,766,055 ..................140,961,73324. Insurance taxes, licenses and fees, excluding federal income taxes (Exhibit 3, Line 7, Cols. 1 + 2 + 3).................................................. ......................7,651,349 ....................13,295,77025. Increase in loading on deferred and uncollected premiums...................................................................................................................... ....................................... .......................................26. Net transfers to or (from) Separate Accounts net of reinsurance.............................................................................................................. ............(12,035,198,052) ..............(5,444,537,645)27. Aggregate write-ins for deductions............................................................................................................................................................ .................(153,593,195) ......................7,035,37828. Totals (Lines 20 to 27)............................................................................................................................................................................... ..............(5,437,924,622) ..................835,161,00229. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)........................................ ....................63,781,781 ...............1,257,547,47830. Dividends to policyholders......................................................................................................................................................................... ......................3,479,428 ......................1,871,87831. Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30).............................. ....................60,302,353 ...............1,255,675,60032. Federal and foreign income taxes incurred (excluding tax on capital gains)............................................................................................. ...................(58,780,653) .....................(1,894,681)33. Net gain from operations after dividends to policyholders and federal income taxes and before realized

capital gains or (losses) (Line 31 minus Line 32)...................................................................................................................................... ..................119,083,006 ...............1,257,570,28234. Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of $.....(80,329,753)

(excluding taxes of $.....43,126,871 transferred to the IMR)..................................................................................................................... .................(130,260,024) ...................(59,978,355)35. Net income (Line 33 plus Line 34)............................................................................................................................................................. ...................(11,177,018) ...............1,197,591,927

CAPITAL AND SURPLUS ACCOUNT36. Capital and surplus, December 31, prior year (Page 3, Line 38, Col. 2)................................................................................................... ...............3,552,499,593 ...............4,397,908,62937. Net income (Line 35)................................................................................................................................................................................. ...................(11,177,018) ...............1,197,591,92738. Change in net unrealized capital gains (losses) less capital gains tax of $.....40,631,944........................................................................ ..................443,571,459 .................(814,415,045)39. Change in net unrealized foreign exchange capital gain (loss) ................................................................................................................ ......................2,219,238 .....................(8,846,702)40. Change in net deferred income tax........................................................................................................................................................... .................(396,903,859) .................(336,456,337)41. Change in nonadmitted assets.................................................................................................................................................................. ..................257,057,991 ..................496,309,58942. Change in liability for reinsurance in unauthorized and certified companies............................................................................................. ....................................... .......................................43. Change in reserve on account of change in valuation basis, (increase) or decrease............................................................................... ....................................... .......................................44. Change in asset valuation reserve ........................................................................................................................................................... ..................148,108,208 ....................17,051,69145. Change in treasury stock, (Page 3, Lines 36.1 and 36.2 Col. 2 minus Col. 1).......................................................................................... ....................................... .......................................46. Surplus (contributed to) withdrawn from Separate Accounts during period.............................................................................................. ....................................... .......................................47. Other changes in surplus in Separate Accounts Statement...................................................................................................................... ....................................... .......................................48. Change in surplus notes............................................................................................................................................................................ ....................................... .......................................49. Cumulative effect of changes in accounting principles.............................................................................................................................. ....................67,918,456 .......................................50. Capital changes:

50.1 Paid in.............................................................................................................................................................................................. ....................................... .......................................50.2 Transferred from surplus (Stock Dividend)...................................................................................................................................... ....................................... .......................................50.3 Transferred to surplus...................................................................................................................................................................... ....................................... .......................................

51. Surplus adjustment:51.1 Paid in.............................................................................................................................................................................................. .................(516,521,939) ..............(1,396,644,159)51.2 Transferred to capital (Stock Dividend)............................................................................................................................................ ....................................... .......................................51.3 Transferred from capital................................................................................................................................................................... ....................................... .......................................51.4 Change in surplus as a result of reinsurance................................................................................................................................... ....................................... .......................................

52. Dividends to stockholders.......................................................................................................................................................................... ....................................... .......................................53. Aggregate write-ins for gains and losses in surplus.................................................................................................................................. ..................165,890,931 ....................................054. Net change in capital and surplus for the year (Lines 37 through 53)....................................................................................................... ..................160,163,467 .................(845,409,036)55. Capital and surplus, December 31, current year (Lines 36 + 54) (Page 3, Line 38)................................................................................. ...............3,712,663,061 ...............3,552,499,593

DETAILS OF WRITE-INS08.301. Other investment management fees................................................................................................................................................ ....................66,984,717 ....................78,496,32108.302. Miscellaneous income...................................................................................................................................................................... ......................4,828,068 ....................22,040,82308.303. Separate Account loads................................................................................................................................................................... .........................808,435 ......................1,776,05308.398. Summary of remaining write-ins for Line 8.3 from overflow page.................................................................................................... ....................................0 ....................................008.399. Totals (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above)............................................................................................... ....................72,621,221 ..................102,313,1972701. Change in provision for future dividends.......................................................................................................................................... ......................9,754,283 ......................7,279,3462702. Miscellaneous deductions................................................................................................................................................................ ......................1,175,824 ......................1,114,9712703. Modco adjustment............................................................................................................................................................................ .....................(1,475,032) .....................(1,358,939)2798. Summary of remaining write-ins for Line 27 from overflow page..................................................................................................... .................(163,048,269) ....................................02799. Totals (Lines 2701 through 2703 plus 2798) (Line 27 above)......................................................................................................... .................(153,593,195) ......................7,035,3785301. Gain on inforce reinsurance............................................................................................................................................................. ..................165,890,931 .......................................5302. ......................................................................................................................................................................................................... ....................................... .......................................5303. ......................................................................................................................................................................................................... ....................................... .......................................5398. Summary of remaining write-ins for Line 53 from overflow page..................................................................................................... ....................................0 ....................................05399. Totals (Lines 5301 through 5303 plus 5398) (Line 53 above)......................................................................................................... ..................165,890,931 ....................................0


5

CASH FLOW1 2

Current Year Prior Year CASH FROM OPERATIONS

1. Premiums collected net of reinsurance.......................................................................................................................................... .....................252,682,286 .....................444,609,8232. Net investment income................................................................................................................................................................... .....................670,310,223 ..................1,851,126,5943. Miscellaneous income.................................................................................................................................................................... ....................(388,609,413) ....................(216,427,338)4. Total (Lines 1 through 3)................................................................................................................................................................ .....................534,383,096 ..................2,079,309,0795. Benefit and loss related payments................................................................................................................................................. ..................7,820,980,420 ..................6,125,050,8376. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts.......................................................... .................(7,934,348,470) .................(5,317,323,685)7. Commissions, expenses paid and aggregate write-ins for deductions......................................................................................... .....................489,845,825 .....................257,200,9448. Dividends paid to policyholders..................................................................................................................................................... .........................3,464,609 .........................1,776,4229. Federal and foreign income taxes paid (recovered) net of $.....(37,202,882) tax on capital gains (losses)................................ ....................(204,889,173) .........................4,809,67010. Total (Lines 5 through 9)................................................................................................................................................................ .....................175,053,210 ..................1,071,514,18711. Net cash from operations (Line 4 minus Line 10).......................................................................................................................... .....................359,329,886 ..................1,007,794,892

CASH FROM INVESTMENTS12. Proceeds from investments sold, matured or repaid:

12.1 Bonds................................................................................................................................................................................... ..................3,345,683,766 ..................5,019,886,60112.2 Stocks................................................................................................................................................................................... .....................385,909,210 .......................50,786,60212.3 Mortgage loans.................................................................................................................................................................... .......................92,500,099 .....................126,007,36612.4 Real estate........................................................................................................................................................................... .......................31,500,000 ...........................................12.5 Other invested assets.......................................................................................................................................................... .....................188,301,642 .....................157,156,55312.6 Net gains or (losses) on cash, cash equivalents and short-term investments................................................................... .........................1,212,826 ........................(7,836,712)12.7 Miscellaneous proceeds...................................................................................................................................................... .....................364,071,404 .......................97,207,01012.8 Total investment proceeds (Lines 12.1 to 12.7).................................................................................................................. ..................4,409,178,947 ..................5,443,207,419

13. Cost of investments acquired (long-term only):13.1 Bonds................................................................................................................................................................................... ..................2,875,710,316 ..................4,388,558,28613.2 Stocks................................................................................................................................................................................... .......................43,791,671 .......................53,003,90213.3 Mortgage loans.................................................................................................................................................................... .....................216,722,310 .....................240,219,00213.4 Real estate........................................................................................................................................................................... ............................471,465 .........................2,743,71713.5 Other invested assets.......................................................................................................................................................... .....................118,524,275 .....................308,304,58713.6 Miscellaneous applications.................................................................................................................................................. .....................374,985,765 .....................288,796,08113.7 Total investments acquired (Lines 13.1 to 13.6)................................................................................................................. ..................3,630,205,802 ..................5,281,625,575

14. Net increase (decrease) in contract loans and premium notes..................................................................................................... .......................13,486,372 ........................(3,476,336)15. Net cash from investments (Line 12.8 minus Lines 13.7 minus Line 14)..................................................................................... .....................765,486,774 .....................165,058,179

CASH FROM FINANCING AND MISCELLANEOUS SOURCES16. Cash provided (applied):

16.1 Surplus notes, capital notes................................................................................................................................................. ........................................... ...........................................16.2 Capital and paid in surplus, less treasury stock.................................................................................................................. ....................(521,981,458) .................(1,393,288,319)16.3 Borrowed funds.................................................................................................................................................................... ........................(8,100,000) ......................(12,281,000)16.4 Net deposits on deposit-type contracts and other insurance liabilities............................................................................... ......................(88,597,880) ....................(252,679,041)16.5 Dividends to stockholders.................................................................................................................................................... ........................................... ...........................................16.6 Other cash provided (applied)............................................................................................................................................. ....................(618,037,797) .....................357,610,684

17. Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)................................. .................(1,236,717,135) .................(1,300,637,676)

RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17).......................................... ....................(111,900,475) ....................(127,784,604)19. Cash, cash equivalents and short-term investments:

19.1 Beginning of year................................................................................................................................................................. .....................350,124,390 .....................477,908,994

19.2 End of year (Line 18 plus Line 19.1)................................................................................................................................... .....................238,223,915 .....................350,124,390

Note: Supplemental disclosures of cash flow information for non-cash transactions:20.0001 Non-cash proceeds from invested asset exchanges - bonds, common stocks and other invested assets....................... ....................(160,630,959) ....................(252,010,125)20.0002 Non-cash acquistions from invested asset exchanges - bonds, common stocks and other invested assets.................... ....................(160,630,959) ....................(252,010,125)20.0003 Capital contribution from parent to settle intercompany balances related to stock compensation.................................... .........................5,459,519 .........................3,355,84020.0004 Capital contribution to subsidiary to settle intercompany balances related to stock compensation.................................. ........................(2,881,192) ........................(2,119,857)20.0005 Non-cash impacts of Tax Reform - tax receivable.............................................................................................................. ........................................... ......................(59,867,823)20.0006 Non-cash impacts of DTA adjustment not yet settled......................................................................................................... ........................................... ......................(99,369,231)20.0007 Non-cash impacts of Tax Reform and DTA adjustment not yet settled - deferred income tax surplus............................. ........................................... ....................(159,237,054)20.0008 Non-cash proceeds from dissolution of affilate holding - common stocks.......................................................................... ....................(478,310,380) ...........................................20.0009 Non-cash acquisition from dissolution of affilate holding - common stocks....................................................................... ....................(478,310,380) ...........................................20.0010 Non-cash transfer of bonds sold for assumption reinsurance ........................................................................................... .................(3,448,021,646) ...........................................20.0011 Non-cash transfer of mortgage loans sold for assumption reinsurance ............................................................................ ....................(649,122,178) ...........................................20.0012 Non-cash transfer of other invested assets sold for assumption reinsurance ................................................................... ....................(558,473,453) ...........................................20.0013 Non-cash transfer of reserves for assumption reinsurance................................................................................................ ..................3,259,322,631 ...........................................20.0014 Non-cash transfer of deposit liability for assumption reinsurance...................................................................................... ..................1,276,223,336 ...........................................20.0015 Non-cash transfer of IMR liability for assumption reinsurance........................................................................................... .....................110,419,414 ...........................................20.0016 Non-cash transfer of other for assumption reinsurance...................................................................................................... .........................9,651,896 ...........................................20.0017 Non-cash transfer of bonds sold for reinsurance ............................................................................................................... .................(1,604,105,856) ...........................................20.0018 Non-cash transfer of mortgage loans sold for reinsurance................................................................................................. ......................(99,061,975) ...........................................20.0019 Non-cash transfer of premium for reinsurance ................................................................................................................... ..................5,570,590,944 ...........................................20.0020 Non-cash transfer from Separate Accounts for reinsurance............................................................................................... .................(3,963,093,667) ...........................................20.0021 Non-cash transfer of deposit liability for reinsurance.......................................................................................................... .....................663,688,352 ...........................................20.0022 Non-cash transfer of IMR liability for reinsurance............................................................................................................... ....................(163,048,269) ...........................................


5.1

CASH FLOW20.0023 Non-cash transfer of other for reinsurance.......................................................................................................................... ....................(404,969,529) ...........................................20.0024 Non-cash deferred gain on business transfer - general insurance expense...................................................................... ......................(86,540,726) ...........................................20.0025 Non-cash deferred gain on business transfer - change in accounting principles............................................................... .......................67,918,456 ...........................................20.0026 Non-cash deferred gain on business transfer - tax............................................................................................................. .......................18,622,270 ...........................................


6

ANALYSIS OF OPERATIONS BY LINES OF BUSINESS1 2 Ordinary 6 Group Accident and Health 12

3 4 5 Credit Life 7 8 9 10 11 Aggregate ofIndustrial Life Individual Supplementary (Group and Life Credit (Group All Other Lines

Total Life Insurance Annuities Contracts Individual) Insurance(a) Annuities Group and Individual) Other of Business1. Premiums and annuity considerations for life and accident and health contracts...................................................................... ..(5,343,534,485) .......................... ......(48,538,642) .(3,210,606,329) .......................... .......................... ......(51,382,572) .(2,033,007,880) .......................0 .......................... ...................938 .......................2. Considerations for supplementary contracts with life contingencies.......................................................................................... ........24,849,679 .......................... .......................... .......................... .......24,849,679 .......................... .......................... .......................... .......................... .......................... .......................... .......................3. Net investment income.............................................................................................................................................................. ......534,685,890 .......................... .......23,149,711 .....237,653,401 .........2,619,899 .......................... .......84,252,807 .....126,353,983 .......................... .......................... ..................(660) .....60,656,7494. Amortization of Interest Maintenance Reserve (IMR)................................................................................................................ ........10,556,419 .......................... ...........(629,450) .......10,557,261 .......................... .......................... ............605,875 .......................... .......................... .......................... .......................... ............22,7345. Separate Accounts net gain from operations excluding unrealized gains or losses.................................................................. .......................0 .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................6. Commissions and expense allowances on reinsurance ceded................................................................................................. ........27,252,120 .......................... .........2,031,851 .........6,470,032 .......................... .......................... .........2,015,079 .........9,036,461 .........7,698,698 .......................... .......................... .......................7. Reserve adjustments on reinsurance ceded............................................................................................................................. ..(1,554,250,460) .......................... ....(132,936,078) ........(2,345,482) .......................... .......................... .......................... .(1,418,968,900) .......................... .......................... .......................... .......................8. Miscellaneous Income:

8.1 Fees associated with income from investment management, administration and contract guarantees from S/A.............. ......853,676,775 .......................... .....216,908,626 .....171,382,195 .......................... .......................... .....385,723,511 .......79,662,443 .......................... .......................... .......................... .......................8.2 Charges and fees for deposit-type contracts..................................................................................................................... .......................0 .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................8.3 Aggregate write-ins for miscellaneous income.................................................................................................................. ........72,621,221 .......................0 .........2,313,592 .......22,967,568 .......................0 .......................0 ......(58,148,580) .....105,494,689 ...............(6,047) .......................0 .......................0 ....................0

9. Totals (Lines 1 to 8.3)................................................................................................................................................................ ..(5,374,142,841) .......................0 .......62,299,609 .(2,763,921,355) .......27,469,578 .......................0 .....363,066,120 .(3,131,429,205) .........7,692,650 .......................0 ...................278 .....60,679,48310. Death benefits........................................................................................................................................................................... ......462,250,272 .......................... .....149,758,779 .......................... .......................... .......................... .....312,491,493 .......................... .......................... .......................... .......................... .......................11. Matured endowments (excluding guaranteed annual pure endowments)................................................................................. ..........2,594,531 .......................... .....................48 .......................... .......................... .......................... .........2,594,483 .......................... .......................... .......................... .......................... .......................12. Annuity benefits......................................................................................................................................................................... ......451,719,758 .......................... .......................... .....270,863,611 .......................... .......................... .......................... .....180,856,147 .......................... .......................... .......................... .......................13. Disability benefits and benefits under accident and health contracts........................................................................................ ...............16,800 .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................0 .......................... ..............16,800 .......................14. Coupons, guaranteed annual pure endowments and similar benefits....................................................................................... .......................0 .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................15. Surrender benefits and withdrawals for life contracts................................................................................................................ ...6,864,950,080 .......................... .......52,413,539 ...1,879,860,631 .......................... .......................... .....481,845,503 ...4,450,830,408 .......................... .......................... .......................... .......................16. Group conversions.................................................................................................................................................................... .......................0 .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................17. Interest and adjustments on contract or deposit-type contract funds........................................................................................ ........39,042,242 .......................... .........4,766,338 .......28,548,917 ............240,007 .......................... .........4,591,204 ............895,777 .......................... .......................... .......................... .......................18. Payments on supplementary contracts with life contingencies.................................................................................................. ........25,515,231 .......................... .......................... .......................... .......25,515,231 .......................... .......................... .......................... .......................... .......................... .......................... .......................19. Increase in aggregate reserves for life and accident and health contracts................................................................................ ..(1,277,649,717) .......................... ......(22,871,101) .(1,323,178,165) ...........(266,234) .......................... .......30,987,128 .......37,503,282 .......................... .......................... ............175,373 .......................20. Totals (Lines 10 to 19)............................................................................................................................................................... ...6,568,439,198 .......................0 .....184,067,603 .....856,094,993 .......25,489,004 .......................0 .....832,509,811 ...4,670,085,614 .......................0 .......................0 ............192,173 ....................021. Commissions on premiums, annuity considerations and deposit-type contract funds (direct business only)............................ ........55,989,378 .......................... .........2,443,715 .......40,100,280 .......................... .......................... .........4,114,592 .........2,167,525 .........7,170,609 .......................... ...............(7,342) .......................22. Commissions and expense allowances on reinsurance assumed............................................................................................. ...............20,646 .......................... ...............(8,305) ..............33,587 .......................... .......................... .......................... .......................... .......................... .......................... ...............(4,636) .......................23. General insurance expenses..................................................................................................................................................... ......118,766,055 .......................... .......15,150,147 .......47,295,051 ............882,872 .......................... .......39,094,442 .........5,320,622 ...................183 .......................... ..................(183) .....11,022,92024. Insurance taxes, licenses and fees, excluding federal income taxes....................................................................................... ..........7,651,349 .......................... ........(1,049,319) .........2,030,419 .......................... .......................... ............530,504 ............126,798 ............528,358 .......................... .......................... .......5,484,58925. Increase in loading on deferred and uncollected premiums...................................................................................................... .......................0 .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................26. Net transfers to or (from) Separate Accounts net of reinsurance.............................................................................................. (12,035,198,052) .......................... ....(155,801,070) .(3,554,939,355) .......................... .......................... ....(528,861,014) .(7,795,596,613) .......................... .......................... .......................... .......................27. Aggregate write-ins for deductions............................................................................................................................................ .....(153,593,195) .......................0 .........9,990,633 ....(164,961,233) .......................0 .......................0 ...................119 ........(2,019,003) ................1,097 .......................0 .......................0 .......3,395,19228. Totals (Lines 20 to 27)............................................................................................................................................................... ..(5,437,924,622) .......................0 .......54,793,404 .(2,774,346,258) .......26,371,876 .......................0 .....347,388,454 .(3,119,915,058) .........7,700,247 .......................0 ............180,012 .....19,902,70129. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)......................... ........63,781,781 .......................0 .........7,506,205 .......10,424,904 .........1,097,702 .......................0 .......15,677,666 ......(11,514,147) ...............(7,597) .......................0 ...........(179,734) .....40,776,78230. Dividends to policyholders......................................................................................................................................................... ..........3,479,428 .......................... .........3,479,428 .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................31. Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30)............... ........60,302,353 .......................0 .........4,026,777 .......10,424,904 .........1,097,702 .......................0 .......15,677,666 ......(11,514,147) ...............(7,597) .......................0 ...........(179,734) .....40,776,78232. Federal income taxes incurred (excluding tax on capital gains)................................................................................................ .......(58,780,653) .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... ....(58,780,653)33. Net gain from operations after dividends to policyholders and federal income taxes and before realized

capital gains or (losses) (Line 31 minus Line 32)....................................................................................................................... ......119,083,006 .......................0 .........4,026,777 .......10,424,904 .........1,097,702 .......................0 .......15,677,666 ......(11,514,147) ...............(7,597) .......................0 ...........(179,734) .....99,557,435DETAILS OF WRITE-INS

08.301. Other investment management fees................................................................................................................................. ........66,984,717 .......................... .............(39,284) .......21,650,867 .......................... .......................... ......(65,696,765) .....111,069,899 .......................... .......................... .......................... .......................08.302. Miscellaneous income....................................................................................................................................................... ..........4,828,068 .......................... .........2,352,876 ............127,788 .......................... .......................... .........7,548,185 ........(5,194,734) ...............(6,047) .......................... .......................... .......................08.303. Separate Account loads.................................................................................................................................................... .............808,435 .......................... .......................... .........1,188,912 .......................... .......................... .......................... ...........(380,477) .......................... .......................... .......................... .......................08.398. Summary of remaining write-ins for Line 8.3 from overflow page...................................................................................... .......................0 .......................0 .......................0 .......................0 .......................0 .......................0 .......................0 .......................0 .......................0 .......................0 .......................0 ....................008.399. Total (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above)................................................................................... ........72,621,221 .......................0 .........2,313,592 .......22,967,568 .......................0 .......................0 ......(58,148,580) .....105,494,689 ...............(6,047) .......................0 .......................0 ....................02701. Change in provision for future dividends........................................................................................................................... ..........9,754,283 .......................... .........9,754,283 .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................2702. Miscellaneous deductions................................................................................................................................................. ..........1,175,824 .......................... ............236,350 ...........(456,382) .......................... .......................... ...................119 ........(2,000,553) ................1,097 .......................... .......................... .......3,395,1922703. Modco adjustment............................................................................................................................................................. .........(1,475,032) .......................... .......................... ........(1,456,582) .......................... .......................... .......................... .............(18,450) .......................... .......................... .......................... .......................2798. Summary of remaining write-ins for Line 27 from overflow page....................................................................................... .....(163,048,269) .......................0 .......................0 ....(163,048,269) .......................0 .......................0 .......................0 .......................0 .......................0 .......................0 .......................0 ....................02799. Total (Lines 2701 through 2703 plus 2798) (Line 27 above)............................................................................................. .....(153,593,195) .......................0 .........9,990,633 ....(164,961,233) .......................0 .......................0 ...................119 ........(2,019,003) ................1,097 .......................0 .......................0 .......3,395,192

(a) Includes the following amounts for FEGLI/SGLI: Line 1..........0 Line 10..........0 Line 16..........0 Line 23..........0 Line 24..........0.


7

ANALYSIS OF INCREASE IN RESERVES DURING THE YEAR1 2 Ordinary 6 Group

3 4 5 Credit Life 7 8Industrial Supplementary (Group and

Total Life Life Insurance Individual Annuities Contracts Individual) Life Insurance Annuities

Involving Life or Disability Contingencies (Reserves)

(Net of Reinsurance Ceded)

1. Reserve December 31, prior year.......................................................................................................... ...............11,751,969,050 ......................................... ....................617,009,856 .................7,916,594,062 ......................70,970,525 ......................................... .................1,307,431,480 .................1,839,963,127

2. Tabular net premiums or considerations................................................................................................ ....................364,248,544 ......................................... ......................73,696,349 ....................101,980,389 ......................24,849,679 ......................................... ....................163,577,211 ...........................144,916

3. Present value of disability claims incurred............................................................................................. ......................................0 ......................................... ......................................... ......................................... ...............XXX................... ......................................... ......................................... .........................................

4. Tabular interest..................................................................................................................................... ....................395,944,964 ......................................... ..........

Date post:	26-Apr-2020
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TALCOTT RESOLUTION LIFE INSURANCE COMPANY · Annual Statement for the year 2018 of the TALCOTT...

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