As filed with the Securities and Exchange Commission on ~~December~~March 1031, ~~2021~~2022

File No. 333-

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM S-1

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

LINCOLN BENEFIT LIFE COMPANY

(Exact Name of Registrant)

Nebraska

6300

470221457

(State or Other Jurisdiction
of Organization)

(Primary Standard Industrial
Classification Code Number)

(I.R.S. Employer
Identification Number)

1221 N Street, Suite 200,

Lincoln, Nebraska 68508

(800) 525-9287

(Address and Phone Number of Registrant’s Principal Executive Office)

ERIK BRAUN

LINCOLN BENEFIT LIFE COMPANY

1221 N Street, Suite 200

Lincoln, NE 68508

1-800-525-9287

(Name 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. x

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please 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, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filed

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.¨

CALCULATION OF REGISTRATION FEE

Title of each class of securities to be registered		Amount to registered(1)	Proposed maximum offering price unit (1)	Proposedmaximum aggregate offering price(2)	Amount of registration fee(2)
Market Value Adjusted Annuity Contracts		$17,705,399.38	$1.00	$0	$0
(1)	The amount to be registered and the proposed maximum offering price per unit are not applicable because the securities are not issued in predetermined amounts or units.
(2)	This filing is being made under the Securities Act of 1933 to register $17,705,399.38 of interests in market value adjusted annuity contracts. The interests being registered herein are carried over, as unsold securities, from existing Form S-1 Registration Statements of the same issuer (333-254874 and 333-254899) filed on April 15, 2021. Because a filing fee has previously been paid with respect to those interests, there is no filing fee due under this Registration Statement. In accordance with Rule 415 (a)(6), the offering of securities on the earlier registration statement will be deemed terminated as of the effective date of this registration statement.
	This Registration Statement contains a combined prospectus under Rule 429 under the Securities Act of 1933 which relates to the Form S-1 registration statements (File Nos. 333-254874 and 333-254899), filed on April 15, 2021 by Lincoln Benefit Life Company. Upon effectiveness, this Registration Statement will also act as a post-effective amendment to such earlier registration statements.

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 Section 8(a), may determine.

Neither the Securities and Exchange Commission nor any State securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.

Everlake Distributors, L.L.C., formerly Allstate Distributors, L.L.C., serves as distributor of the securities registered herein. The securities offered herein are sold on a continuous basis, and there is no specific end date for the offering. Everlake Distributors, L.L.C. is a registered broker dealer under the Securities and Exchange Act of 1934, as amended, and is a member of the Financial Industry Regulatory Authority. Everlake Distributors, L.L.C. is not required to sell any specific number or dollar amount of securities, but will use its best efforts to sell the securities offered. Commissions earned by Everlake Distributors, L.L.C. are described in the notes to the insurer financial statements, under the heading “Broker-Dealer Agreements.” The prospectuses, dated as of the date indicated therein, by which the securities registered in this Form S-1 are described, are included in this registration statement.

Market Value Adjusted Fixed Account under Certain Variable Annuity Contracts Issued by Lincoln Benefit Life Company

Lincoln Benefit Life Company

Street Address: 5801 SW 6th Ave., Topeka, KS 66606-00001

Mailing Address: P.O. Box 758561, Topeka, KS 66675-8561

Telephone Number: 1-800-457-7617

Fax Number: 1-785-228-4584

Prospectus dated ~~[__________]~~May 2, 2022

Lincoln Benefit Life Company (“LBL” or the “Company”) issues the ~~Market~~market ~~Value~~value ~~Adjusted~~adjusted Fixed Account ~~Option~~Options (the ~~MVA~~"Guaranteed Maturity Fixed Account ~~Option~~Options”) described in this prospectus. The ~~MVA~~Guaranteed Maturity Fixed Account ~~Option~~Options isare available only under the following variable annuity contracts that we offer: The LBL Consultant ~~Solutions~~I Variable Annuities (~~Classic,~~"Consultant ~~Plus~~I"), ~~Elite,~~the ~~Select~~LBL Consultant II Variable Annuities ("Consultant II") and the LBL ~~Advantage~~ Premier Planner Variable ~~Annuity~~Annuities ("Premier Planner" and collectively with Consultant I and Consultant II, the "Contracts," and each a "Contract"). None of those ~~contracts~~Contracts currently is offered for new sales. However, under outstanding ~~contracts~~Contracts you may be able to make additional purchase payments, and allocate additional purchase payments or amounts of Contract Value to the ~~MVA~~Guaranteed Maturity Fixed Account Option.

This prospectus is not your contract, although this prospectus provides a description of the material features of the ~~MVA~~Guaranteed Maturity Fixed Account Option under your Contract. The description of the ~~MVA~~Guaranteed Maturity Fixed Account ~~Option’s~~Options' material features isare current as of the date of this prospectus. If certain material provisions of the ~~MVA~~Guaranteed Maturity Fixed Account ~~Option~~Options are changed after the date of this prospectus, those changes will be described in a supplement to this prospectus and the supplement will become a part of this prospectus.

The principal underwriter for all of the Contracts is Everlake Distributors, L.L.C., formerly Allstate Distributors, L.L.C. Everlake Distributors, L.L.C. is a registered broker dealer under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and a member of the Financial Industry Regulatory Authority. Everlake Distributors, L.L.C. is not required to sell any specific number or dollar amount of securities, but will use its best efforts to sell the securities offered.

Please read and keep this Prospectus for future reference. You should carefully read this prospectus in conjunction with any applicable supplements before taking any action involving the ~~MVA~~Guaranteed Maturity Fixed Account Option. This Prospectus supersedes all prior prospectuses. Also, this Prospectus must be read along with the appropriate variable annuity contract prospectus. This Prospectus is in addition to the appropriate variable annuity contract prospectus. All information in the appropriate variable annuity contract prospectus continues to apply unless addressed by this Prospectus.

IMPORTANT NOTICES Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities described in this prospectus or passed on the accuracy or the adequacy of this prospectus. Anyone who tell you otherwise is committing a federal crime.The contracts of which the ~~MVA~~Guaranteed Maturity Fixed Account Option is a part may have been distributed through broker-dealers that have relationships with banks or other financial institutions or by employees of such banks. However, the contracts and the ~~MVA~~Guaranteed Maturity Fixed Account Option are not deposits or obligations of, or guaranteed by such institutions or any federal regulatory agency. Investment in the ~~MVA~~Guaranteed Maturity Fixed Account Option involves investment risks, including possible loss of principal. See "Risks Related to the Guaranteed Maturity Fixed Account Option." This prospectus does not constitute an offering in any jurisdiction in which such offering may not lawfully be made. We do not authorize anyone to provide any information or representations regarding the offering described in this prospectus other than as contained in this prospectus.The Contracts and the ~~MVA~~Guaranteed Maturity Fixed Account Option are not FDIC insured. The ~~MVA~~Guaranteed Maturity Fixed Account Option may not be available in all states.

Table of Contents
			Page
Summary			4
Who is Lincoln Benefit Life Company?			4
Important Terms			5
Expenses			6
Description of the MVA Account Fixed Account Option			6
Description of the Guaranteed Maturity Fixed Account Options			6
Distribution of the Contracts			8
Risks Related to the Guaranteed Maturity Fixed Account Options			8
Reliance on the Company's Financial Strength and Claims-Paying Ability			8
Withdrawals and Transfers May be Subject to Market Value Adjustment			8
Market Value Adjustment Risk			8
Declared Interest Rate Risk			8
Additional Information			8
Experts			8
Legal Matters			89
Administration			89
Reliance on Rule 12h-7			9
Appendix I: Market Value Adjustment Examples			10
Appendix II: Information with Respect to the Registrant			18
Risk Factors Associated with Lincoln Benefit Life and Its Industry			19
Description of Business			33
Description of Property			33
Legal Proceedings			33
Financial Statements and Notes to Financial Statements			34
Selected Financial Data			96
Management's Discussion and Analysis of Financial Condition and Results of Operations			97
Changes in or Disagreements with Accountants			110
Quantitative and Qualitative Disclosures About Market Risk			110
Directors and Executive Officers			110
Executive Compensation			111
Security Ownership of Certain Beneficial Owners and Management			112
Transactions with Related Persons, Promoters and Certain Control Persons			114

Summary: This section tells you about Lincoln Benefit Life Company and describes the Guaranteed Maturity Fixed Account Options, including expense detail and risks related to investing in the contracts. Who is Lincoln Benefit Life Company?

Lincoln Benefit Life Company is a stock life insurance company organized under the laws of the state of Nebraska in 1938. Our legal domicile and principal business address is 1221 N Street, Suite 200, Lincoln, NE 68508. Lincoln Benefit is a wholly-owned subsidiary of LBL HoldCo II, Inc., a Delaware corporation (“HoldCo”), which is a wholly-owned subsidiary of LBL HoldCo, Inc., a Delaware corporation (“HoldCo Parent”). HoldCo Parent is a wholly-owned subsidiary of Guaranty Income Life Insurance Company (“GILICO”), an Iowa-domiciled insurance company.

We are authorized to conduct life insurance and annuity business in the District of Columbia, U.S. Virgin Islands and all states except New York. We intend to offer the ~~MVA~~Guaranteed Maturity Fixed Account Option under variable annuity contracts in those jurisdictions in which we are licensed.

The ~~Company’s~~Contracts ~~obligations~~offer ~~under~~several investment alternatives, which, depending on the ~~Contracts~~Contract, ~~are~~generally ~~subject~~include tovarious ~~its~~variable ~~financial~~sub-accounts ~~strength~~("Sub-Accounts") of Lincoln Benefit Life Variable Annuity Account ("Variable Account"), and ~~claims~~Fixed ~~paying~~Account ~~ability~~Options such as the Guaranteed Maturity Fixed Account Options described in this prospectus.

~~Refer~~The Variable Account and the Sub-Accounts are segregated asset accounts of the Company. The assets of each Sub-Account of the Variable Account are invested in the shares of an underlying mutual fund ("Portfolios"). Values allocated under your Contract to ~~“Appendix~~the ~~II:~~Variable ~~Information~~Account and the amount of Variable Annuity payments under your Contract will rise and fall with ~~Respect~~the values of shares of the Portfolios and are also reduced by applicable Contract charges. You bear the risk of investment performance of the Portfolios. Please refer to the ~~Registrant”~~appropriate ~~below~~variable annuity contract and variable annuity contract prospectus for ~~additional~~more information ~~about~~regarding ~~LBL~~the investment options available under your Contract, the Variable Account and the Sub-Accounts, and any applicable contract charges.

This prospectus describes the Guaranteed Maturity Fixed Account Options available under the Contracts. The Guaranteed Maturity Fixed Account Options is part of our General Account. Our General Account consists of general assets other than those in segregated asset accounts, such as the Variable Account and Sub-Accounts. We have sole discretion to invest the assets of the General Account, subject to applicable law. Any money you allocate to the Guaranteed Maturity Fixed Account Options does not entitle you to share in the investment experience of the General Account. Contract Values allocated to the Guaranteed Maturity Fixed Account Options are subject to the Company's financial strength and claims-paying ability. The Guaranteed Maturity Fixed Account Options involves risks. See "Risks Related to the Guaranteed Maturity Fixed Account Options." See also “Appendix II: Information with Respect to the Registrant” below for additional information about the Company, including its financial statements.

Important Terms

LBL (or the Company) – Lincoln Benefit Life Company, the issuer of the variable annuity contracts under which the ~~MVA~~Guaranteed Maturity Fixed Account Option is available.

Contracts – The LBL Consultant ~~Solutions~~I Variable Annuity ~~(Classic~~, ~~Plus,~~the ~~Elite,~~LBL ~~Select)~~Consultant II Variable Annuity and the LBL ~~Advantage~~Premier Planner Variable Annuity variable annuity contracts issued by LBL under which the ~~MVA~~Guaranteed Maturity Fixed Account Option is available.

Contract Value - During the accumulation phase, the sum of the value of your interest in the variable sub-accounts you have selected, plus your value in the fixed account option(s) offered by your Contract, including the ~~MVA~~Guaranteed Maturity Fixed Account Option.

Guarantee Period - A period of years during which we guarantee payments (and ~~related Credit Enhancement, in the case of Consultant Solutions Plus) and~~ transfers to your Contract earn interest at a specified rate.

Income Plan - A series of scheduled payments to you or someone you designate. You may choose and change your choice of Income Plan until 30 days before the Payout Start Date.

Market Value Adjustment - A calculation we apply to reflect changes in interest rates from the time you first allocate money to an ~~MVA~~Guaranteed Maturity Fixed Account Option to the time the money is taken out of that ~~MVA~~Guaranteed Maturity Fixed Account Option under specified circumstances. The Market Value Adjustment may be positive or negative, depending on changes in interest rates. As such, you bear the investment risk associated with changes in interest rates.

~~changes~~Guaranteed inMaturity ~~interest~~Fixed ~~rates.~~Account AsOption ~~such,~~or ~~you~~Guaranteed ~~bear~~Maturity ~~the~~Fixed ~~investment~~Account ~~risk~~Options ~~associated~~- ~~with~~A ~~changes~~Market inValue ~~interest~~Adjusted ~~rates~~Fixed Account Option or Guarantee Periods available under the Contracts.

MVA Account Option or MVA Fixed Account Option - The Market Value Adjusted Fixed Account Option or Guarantee Periods (with respect to LBL Advantage) available under the Contracts.

Payout Start Date - The day that we apply your Contract Value, adjusted by any Market Value Adjustment and less any applicable taxes, to an Income Plan. The Payout Start Date must be no later than the Annuitant’s 99th birthday, or the 10th Contract Anniversary, if later.

Settlement Value - The amount payable on a full withdrawal of Contract Value.

Treasury Rate - the U.S. Treasury Note Constant Maturity Yield as reported in Federal Reserve Board Statistical Release H.15. If such yields cease to be available, then we will use an alternate source for such information in our discretion.

Expenses

There is no charge that applies specifically to the ~~MVA~~Guaranteed Maturity Fixed Account Option. However, certain charges under certain base variable annuity contracts and riders added to the base contract are based on (i) the Contract Value, which includes the value held in the ~~MVA~~Guaranteed Maturity Fixed Account Option, or (ii) net premiums, including premiums allocated to the ~~MVA~~Guaranteed Maturity Fixed Account Option. With respect to the Consultant I and Premier Planner, these may include Withdrawal charges. Please refer to the appropriate variable annuity contract for more information as to these charges.

Description of the ~~MVA~~Guaranteed ~~Account~~Maturity Fixed Account ~~Option~~Options

~~You~~Guaranteed ~~may~~Maturity ~~allocate~~Fixed ~~purchase~~Account ~~payments~~Option. We orwill ~~transfer~~credit ~~amounts~~interest ~~under~~to aeach ~~Contract~~amount ~~into~~allocated to the ~~MVA~~Guaranteed Maturity Fixed Account Option. ~~Each~~at ~~such~~a ~~allocation~~specified ~~establishes~~rate for a specified Guarantee Period. ~~Account~~You ~~within~~select the ~~MVA~~Guarantee ~~Fixed~~Period ~~Account~~for ~~Option~~each ~~(“MVA~~amount ~~Fixed~~that you allocate to this option. We will declare the interest rate that we will guarantee to credit to that amount for that Guarantee Period. ~~Account”),~~Each ~~which~~amount isallocated ~~defined~~to bya ~~the~~Guarantee ~~date~~Period ofunder this option must be at least $500. We reserve the ~~allocation~~right ~~and~~to limit the ~~length~~number of ~~the~~additional ~~initial~~Purchase ~~interest~~Payments ~~rate~~that ~~guarantee~~may ~~period~~be ~~(“MVA~~allocated to this option.We will tell you what interest rates and Guarantee ~~Period”)~~Periods we are offering at a particular time. ~~You~~We may ~~not~~offer ~~allocate~~Guarantee aPeriods ~~purchase~~ranging ~~payment~~from orone ~~transfer~~to ten years in length. We will decide in our discretion which Guarantee Periods to ~~any~~offer. ~~existing~~Currently, we offer Guarantee ~~Period~~Periods ~~Account~~of one, three, five, seven and ten years. ~~Each~~In ~~purchase~~the ~~payment~~future we may offer Guarantee Periods of different lengths or ~~transfer~~stop ~~allocated~~offering tosome anGuarantee ~~MVA~~Periods.We have no specific formula for determining the rate of interest that we will declare initially or in the future. We will set those interest rates based on relevant factors such as then current interest rates, regulatory and tax requirements, our sales commission and administrative expenses, general economic trends, and competitive factors. For current interest rate information, please contact us at 1-800-457-7617.WE WILL DETERMINE THE INTEREST RATES TO BE DECLARED IN OUR SOLE DISCRETION. WE CAN NEITHER PREDICT NOR GUARANTEE WHAT THOSE RATES WILL BE IN THE FUTURE.At the end of each Guarantee Period, ~~Account~~we iswill ~~subject~~mail toyou a ~~minimum~~notice ~~amount~~asking asyou ~~set~~what ~~forth~~to indo with the ~~Contract’s~~relevant ~~prospectus~~amount, including the accrued interest. During the 30-day period after the end of the Guarantee Period, you may:

At1.take ~~the~~no ~~time~~action. ~~you~~If ~~allocate a purchase payment or transfer amount to the MVA Fixed Account Option~~so, ~~you~~we ~~must~~will ~~select~~automatically ~~the~~keep ~~Guarantee Period for that allocation from among~~ the ~~Guarantee~~relevant ~~Periods~~amount ~~available for the MVA Fixed Account Option. We currently offer MVA Guarantee Periods of 1, 3, 5, 7, and 10 years. We may offer other Guarantee Periods~~ in the ~~future.~~Guaranteed IfMaturity ~~you allocate a purchase payment to the MVA~~ Fixed Account Option,. ~~but~~The ~~do not select an MVA Guarantee Period for the~~ new ~~MVA Fixed~~ Guarantee Period ~~Account, we~~ will ~~allocate~~be the ~~purchase payment or transfer to a new MVA Guarantee Period Account with the~~ same ~~MVA~~length ~~Guarantee Period~~ as the ~~MVA~~expiring Guarantee Period ~~Account~~and ofwill ~~your~~begin ~~most~~on ~~recent~~the ~~purchase~~day ~~payment or transfer. If we no longer offer that MVA Guarantee Period, then we will allocate~~ the ~~purchase~~previous ~~payment or transfer to a new MVA~~ Guarantee Period ~~Account with the next shortest term currently offered~~ends. IfThe ~~you~~new ~~have~~interest ~~not~~rate ~~made~~will abe ~~prior~~our ~~allocation to an MVA Fixed Guarantee Period Account,~~ then wecurrent ~~will~~declared ~~allocate~~rate ~~the~~for ~~purchase payment or transfer to a new MVA~~ Guarantee ~~Period~~Periods ~~Account~~ of ~~the shortest MVA Guarantee Period we are offering at~~ that ~~time.~~length; ~~The MVA Fixed Account Option is not available in all states. Please check with your representative for availability.~~ or

~~The~~2.allocate ~~amount~~the ~~you~~relevant ~~allocate~~Contract Value to anone ~~MVA~~or ~~Guarantee~~more ~~Period~~new ~~Account~~Guarantee ~~will~~Periods ~~earn~~of ~~interest~~your atchoice in the ~~interest~~Guaranteed ~~rate~~Maturity inFixed ~~effect~~Account ~~for~~Option. ~~that~~The ~~MVA~~new Guarantee Period(s) atwill ~~the~~begin ~~time~~on of the ~~allocation.~~day ~~Interest rates may differ depending on~~ the ~~type~~previous ofGuarantee ~~Contract~~Period ~~you~~ends. ~~have~~The ~~and~~new ~~may~~interest ~~also~~rate ~~differ from those available for other Fixed Account Options. We~~ will ~~tell~~be ~~you~~our ~~what~~then ~~interest~~current ~~rates~~declared ~~and~~rate ~~MVA~~for those Guarantee Periods; ~~we are offering at a particular time.~~or

We3.instruct ~~have~~us noto ~~specific~~transfer ~~formula~~all ~~for~~or ~~determining~~a ~~the~~portion ~~rate~~ of ~~interest~~the ~~that~~relevant weamount ~~will~~to ~~declare~~one ~~initially~~ or inmore ~~the future~~Subaccounts. We will ~~set~~effect ~~those~~the ~~interest~~transfer ~~rates based~~ on ~~investment returns available at~~ the ~~time~~day ~~of the determination. In addition,~~ we ~~may~~receive ~~consider~~your ~~various other factors in determining interest rates including regulatory and tax requirements, our sales commission and administrative expenses, general economic trends, and competitive factors~~instructions. We ~~determine the interest rates to be declared in our sole discretion. We can neither predict nor guarantee what those rates~~ will benot inadjust the ~~future.~~amount ~~For~~transferred ~~current~~to ~~interest~~include ~~rate~~a ~~information,~~Market ~~please~~Value ~~contact~~Adjustment; ~~your representative~~ or ~~LBL at 1-800-457-7617.~~

~~Withdrawals~~4.withdraw ~~and~~all ~~transfers~~or ~~from~~a anportion ~~MVA~~of ~~Guarantee~~the ~~Period~~relevant ~~Account~~amount ~~may~~through ~~be subject to~~ a ~~Market~~partial ~~Value~~withdrawal. ~~Adjustment~~You asmay ~~set~~be ~~forth~~required into ~~the~~pay ~~applicable~~a ~~Contract's~~Withdrawal ~~prospectus.~~Charge A(except ~~Market~~with ~~Value~~respect ~~Adjustment may also apply~~ to ~~amounts in~~ the ~~MVA~~Consultant ~~Fixed~~II ~~Account~~Contract), ~~Option~~but if we ~~pay~~will ~~Death~~not ~~Proceeds~~adjust ~~or if~~ the ~~Payout~~amount ~~Start~~withdrawn ~~Date~~to ~~begins~~include on a ~~day~~Market ~~other~~Value ~~than~~Adjustment. ~~during~~The ~~the~~amount ~~30-day~~withdrawn ~~period after such MVA Guarantee Period Account expires (“30-Day MVA Window”). We~~ will ~~not~~be ~~make~~deemed ato ~~Market~~have ~~Value~~been ~~Adjustment~~withdrawn ifon ~~you~~the ~~make~~day ~~a transfer or withdrawal during~~ the ~~30-Day~~Guarantee ~~MVA~~Period ~~Window~~ends.

WeUnder ~~apply~~our aAutomatic ~~Market~~Laddering ~~Value~~Program, ~~Adjustment~~you tomay ~~reflect~~choose, ~~changes~~ in ~~interest~~advance, ~~rates~~to ~~from~~use Guarantee Periods of the ~~time~~same ~~you~~length ~~first~~for ~~allocate~~all ~~money~~renewals toin athe ~~MVA~~Guaranteed ~~Guarantee~~Maturity ~~Period~~Fixed Account toOption. ~~the~~You can select this program at any time during the ~~money~~Accumulation isPeriod, ~~taken~~including ~~out~~on ofthe ~~that~~Issue ~~MVA~~Date. ~~Guarantee~~We ~~Period~~will ~~Account~~apply ~~under~~renewals to Guarantee Periods of the ~~circumstances~~selected ~~described~~length ~~above~~until you direct us in writing to stop. We ~~use~~may ~~the~~stop Uoffering this program at any time.SMarket Value Adjustment. ~~Treasury~~We ~~Note~~may ~~Constant~~increase ~~Maturity~~or ~~Yield~~decrease asthe ~~reported~~amount inof ~~Federal~~some ~~Reserve~~transactions ~~Statistical~~involving ~~Release~~your ~~H.15~~investment ~~(“Treasury~~in ~~Rate”)~~the Guaranteed Maturity Fixed Account Option to ~~calculate~~include ~~the~~a Market Value Adjustment. WeThe doformula sofor bydetermining ~~comparing~~Market ~~the~~Value ~~Treasury~~Adjustments ~~Rate~~reflects ~~for~~changes ain ~~maturity~~interest ~~equal~~rates tosince the ~~MVA~~beginning of the relevant Guarantee Period. atAs a result, you will bear some of the ~~time~~risk associated with changes in interest rates on amounts allocated to the ~~MVA~~Guaranteed ~~Guarantee~~Maturity ~~Period~~Fixed Account isOption. ~~established~~If ~~with~~interest ~~the~~rates ~~Treasury~~have ~~Rate~~increased ~~for~~since the ~~same~~establishment ~~maturity~~of ata Guarantee Period, the ~~time~~Market Value Adjustment, together with any applicable withdrawal charges, premium taxes and income tax withholdings could reduce the ~~money~~amount isyou ~~taken~~receive upon a full withdrawal from a Guarantee Period to an amount less than the ~~MVA~~purchase payment use to establish that Guarantee Period. See “Risks Related to the Guaranteed Maturity Fixed Account. Option.”

The Market Value Adjustment may be positive or negative, depending on changes in interest rates. As such, you bear the investment risk associated with changes in interest rates. If interest rates have increased since the establishment of a MVA Guarantee Period Account, the Market Value Adjustment, together with any applicable withdrawal charges, premium taxes, and income tax withholdings could reduce the amount you receive upon full withdrawal from a MVA Guarantee Period Account to an amount less than the purchase payment used to establish that MVA Guarantee Period Account.

Generally, if at the time you establish a MVA Guarantee Period Account, the Treasury Rate for a maturity equal to that MVA Guarantee Period is higher than the applicable Treasury Rate at the time money is to be taken from the MVA Guarantee Period Account, the Market Value Adjustment will be positive. Conversely, if at the time you establish a MVA Guarantee

~~Period~~As ~~Account,~~a ~~the~~general ~~applicable~~rule, ~~Treasury~~we ~~Rate~~will isapply ~~lower~~a ~~than~~Market ~~the~~Value ~~applicable~~Adjustment ~~Treasury~~to ~~Rate at~~ the ~~time~~following ~~the~~transactions ~~money~~involving isyour toFixed ~~be taken from the MVA Guarantee Period~~ Account, ~~the Market Value Adjustment will be negative.~~ balance:

1.For ~~example,~~Consultant ~~assume~~I ~~that you purchase a Contract~~ and ~~allocate~~Premier ~~part~~Planner, ofwhen ~~the~~you ~~initial~~withdraw ~~purchase~~funds ~~payment~~from ~~(and Credit Enhancements for Consultant Solutions Plus Contracts) to~~ the ~~MVA~~Guaranteed Maturity Fixed Account Option toin ~~establish~~an aamount ~~5-year~~greater ~~MVA~~than ~~Guarantee Period Account. Assume that~~ the ~~5-year~~Free ~~Treasury~~Withdrawal ~~Rate at that time is 4.50%. Next~~Amount, ~~assume~~and ~~that~~for atConsultant ~~the end of the 3rd year~~II, when you withdraw ~~money~~funds from the ~~MVA~~Guaranteed ~~Guarantee~~Maturity ~~Period~~Fixed Account. If, at that time, the 5-year Treasury Rate is 4.20%, then the Market Value Adjustment will be positive. Conversely, if the 5-year Treasury Rate at that time is 4.80%, then the Market Value Adjustment will be negative. Option;

~~The~~2.when ~~formula~~you ~~used~~transfer tofunds ~~calculate~~from the ~~Market~~Guaranteed ~~Value~~Maturity ~~Adjustment~~Fixed ~~and~~Account ~~numerical~~Option ~~examples~~to ~~illustrating~~the ~~its application are shown in Appendix I of this prospectus.~~ Sub-Accounts;

At3.when ~~the~~you ~~end~~allocate part of ayour ~~MVA~~balance ~~Guarantee~~in ~~Period,~~ the ~~MVA~~Guaranteed ~~Guarantee~~Maturity ~~Period~~Fixed Account ~~expires~~Option ~~and we will automatically transfer the money from such Guarantee Period Account~~ to ~~establish~~ a new ~~MVA~~ Guarantee Period ~~Account~~before ~~with~~ the ~~same~~end ~~MVA Guarantee Period, unless you notify us otherwise. The new MVA Guarantee Period Account will be established as~~ of the ~~day~~existing ~~immediately following the expiration date of the expiring Market Value Adjusted~~ Guarantee Period Account (“New Account Start Date.”) If the MVA Guarantee Period is no longer being offered, we will establish a new MVA Guarantee Period Account with the next shortest MVA Guarantee Period available. Prior to the expiration date, we will send you a notice, which will outline the options available to you. During the 30-Day MVA Window a Market Value Adjustment will not be applied to transfers and withdrawals from the expiring MVA Guarantee Period Account and you may elect to:;

~~•transfer~~4.when ~~all~~you orannuitize ~~part~~your ~~of the money from the MVA Guarantee Period Account to establish a new Guarantee Period Account within the MVA Fixed Account Option~~Contract; orand

~~•transfer~~5.when ~~all~~we orpay ~~part~~a ofdeath ~~the money from the MVA Guarantee Period Account to other investment alternatives available at the time; or~~benefit.

~~•withdraw~~We ~~all~~will ornot ~~part~~apply ofa ~~the~~Market ~~money~~Value ~~from~~Adjustment ~~the~~to ~~MVA~~a ~~Guarantee~~transaction, ~~Period~~to ~~Account.~~the ~~Withdrawal~~extent ~~charges and taxes may apply.~~that:

The money in the MVA Guarantee Period Account will earn interest at the interest rate declared for the new MVA Guarantee Period Account from the New Account Start Date until the date we receive notification of your election1.it Ifoccurs wewithin ~~receive~~30 ~~notification~~days ofafter ~~your election to make a transfer or withdrawal from an expiring MVA Guarantee Period Account on or before~~ the ~~New~~end ~~Account Start Date, the transfer or withdrawal will be deemed to have occurred on the New Account Start Date. If we receive notification~~ of ~~your election to make~~ a ~~transfer or withdrawal from the expiring MVA~~ Guarantee Period ~~Account~~applicable ~~after the New Account Start Date, but before the expiration of the 30-Day MVA Window, the transfer or withdrawal will be deemed~~ to ~~have occurred on~~ the ~~day~~funds weinvolved receive such notice. Any remaining balance not withdrawn or transferred will earn interest for the term of the new MVA Guarantee Period Account, at the interest rate declared for such Account. If we do not receive notification from you within the 30-Day Window, we will assume that you have elected to transfer the amount in the expiring MVA Guarantee Period Account to establish a new MVA Guarantee Period Account with the same MVA Guarantee Period, and the amount in the new MVA Guarantee Period Account will continue to earn interest at the interest rate declared for the new MVA Guarantee Period Account, and will be subject to all restrictions of the MVA Fixed Account Option. If we no longer offer that MVA Guarantee Period, the MVA Guarantee Period for the new MVA Guarantee Period Account will be the next shortest term length we offer for the MVA Fixed Account Option at that time, and the interest rate will be the rate declared by us at that time for such term.transaction;

~~The~~2.you ~~formula~~make ~~for~~a ~~calculating~~withdrawal ~~Market~~to ~~Value~~satisfy ~~Adjustments~~the isIRS’ ~~set~~required ~~forth~~minimum indistribution ~~Appendix~~rules Ifor to this ~~prospectus,~~Contract; ~~which also contains additional examples of the application of the Market Value Adjustment.~~or

3.it is a transfer that is part of a Dollar Cost Averaging program.

The formula for calculating Market Value Adjustments is set forth in Appendix I to this prospectus, which also contains additional examples of the application of the Market Value Adjustment as it applies to each of the Contracts. This formula primarily compares:

1.the Treasury Rate at the time of the relevant transaction for a maturity equal in length to the relevant Guarantee Period; and

2.the Treasury Rate at the beginning of the Guarantee Period for a maturity equal in length to the Guarantee Period.

Generally, if the Treasury Rate at the beginning of the Guarantee Period is higher than the corresponding current Treasury Rate, then the Market Value Adjustment will increase the amount payable to you or transferred. Similarly, if the Treasury Rate at the beginning of the Guarantee Period is lower than the corresponding current Treasury Rate, then the Market Value Adjustment will reduce the amount payable to you or transferred.

For example, assume that you purchased a Contract and selected an initial Guarantee Period of five years and the five-year Treasury Rate for that duration is 4.50%. Assume that at the end of three years, you make a partial withdrawal. If, at that later time, the current five-year Treasury Rate is 4.20%, then the Market Value Adjustment will be positive, which will result in an increase in the amount payable to you. Similarly, if the current five-year Treasury Rate is 4.80%, then the Market Value Adjustment will be negative, which will result in a decrease in the amount payable to you.

The formula for calculating Market Value Adjustments is set forth in Appendix I to this prospectus, which also contains additional examples of the application of the Market Value Adjustment.

Distribution of the Contracts

The ~~MVA~~Guaranteed Maturity Fixed Account Option is available only under certain variable annuity contracts issued by LBL, as identified above. Information about the arrangements for distributing the variable annuity contracts is included under “Distribution” in the appropriate variable annuity contract prospectus and in the statement of additional information that relates to that prospectus. All of that information applies, regardless of whether you choose to allocate Contract Value to the ~~MVA~~Guaranteed Maturity Fixed Account Option, and there is no additional plan of distribution or sales compensation with respect to the ~~MVA~~Guaranteed Maturity Fixed Account Option. Also as described in the appropriate variable annuity contract prospectus, the principal underwriter and distributor for all of the Contracts is Everlake Distributors, LLC ("Everlake Distributors"), formerly known as Allstate Distributors, L.L.C., a wholly-owned subsidiary of Everlake Life, formerly known as Allstate Life. Everlake Distributors is a registered broker-dealer under the Securities and Exchange Act of 1934, as amended ("Exchange Act") and is a member of FINRA. The underwriting agreement with Everlake Distributors provides that we will reimburse Everlake Distributors for any liability to Contract owners arising out of services rendered or Contracts issued.

Risks Related to the MVA Fixed Account

Reliance on the Company's Financial Strength and Claims-Paying Ability. The Company's general obligations such as insurance and annuity obligations and any guaranteed benefits under the Contracts (including Guarantee Periods) are supported by our General Account and are subject to the Company's claims-paying ability. The Guaranteed Maturity Fixed Account Options is part of our General Account. Our General Account consists of our general assets other than those in segregated asset accounts. An Owner should look to the financial strength of the Company for its claims-paying ability. If we experience financial distress, we may not be able to meet our obligations to you. For more information about the Company, including our financial statements and risks related to the Company and its industry, see Appendix II.

Withdrawals and transfers may be subject to Market Value Adjustment. Withdrawals and transfers from Guaranteed Maturity Fixed Account Options may be subject to a Market Value Adjustment as set forth in the applicable Contract's prospectus. A Market Value Adjustment may also apply to amounts in the Guaranteed Maturity Fixed Account Options if we pay Death Proceeds or if the Payout Start Date begins on a day other than during the 30-day period after such Guaranteed Maturity Fixed Account Options expires. The Market Value Adjustment may be positive or negative, depending on changes in interest rates. As such, you bear the investment risk associated with changes in interest rates. See also "Market Value Adjustment Risk" below.

Market Value Adjustment Risk. A Market Value Adjustment may be positive or negative, depending on changes in interest rates. As such, you bear the investment risk associated with changes in interest rates. If interest rates increase from the first day of a Guarantee Period, the Market Value Adjustment could reduce the value of your investment to an amount that is less than the amount you invested in a Guarantee Period. Your losses could be significant.

Declared Interest Rate Risk. We may declare new interest rates for new Guarantee Periods. We will not change the interest rate that we credit to a particular allocation until the end of the relevant Guarantee Period. We determine the interest rates to be declared in our sole discretion. We can neither predict nor guarantee what those rates will be in the future. For current interest rate information, please contact your representative or Lincoln Benefit at 1-800-457-7617.

Additional Information

Experts

The consolidated financial statements of Lincoln Benefit Life Company at [December 31, 2021] and December 31, 2020, and for the years then ended, appearing in this Prospectus and Registration Statement have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their respective reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firms as experts in accounting and auditing.

[The financial statements included in this Prospectus as of and for the year then ended December 31, 2019 of Lincoln Benefit Life Company, have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing herein and elsewhere in the Registration Statement. Such financial statements are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.]

Legal Matters

Matters of Nebraska law pertaining to the Contract, including the validity of the Contract and our right to issue the Contract under Nebraska law, have been passed upon by Lamson Dugan & Murray LLP, Omaha, Nebraska.

Administration

We have primary responsibility for all administration of the Contracts and the Variable Account. We entered into an administrative services agreement with Everlake Life. Everlake Life entered into an administrative services agreement with The Prudential Insurance Company of America (“PICA”) pursuant to which PICA or an affiliate provides administrative services to the Variable Account and the Contracts on our behalf. In addition, PICA entered into a master services agreement with SE2, LLC, of 5801 SW 6th Avenue, Topeka, Kansas 66636, whereby SE2, LLC provides certain business process outsourcing services with respect to the Contracts. SE2, LLC may engage other service providers to provide certain administrative functions. These service providers may change over time, and as of December 31, 2020, consisted of the following: Donnelley Financial Solutions, formerly an RR Donnelley company (compliance printing and mailing) located at 35 West Wacker Drive, Chicago, IL 60601; Iron Mountain Information Management, LLC (file storage and document destruction) located at 1 Federal Street, Boston, MA 02110; TierPoint, LLC (disaster recovery) located at 9394 West Dodge Rd, Suite 100, Omaha, NE 68114; SOVOS Compliance (withholding calculations and tax statement mailing) located at 3650 Annapolis Lane, Suite 190, Plymouth, MN 55447; Records Center of Topeka, a division of Underground Vaults & Storage, Inc. (back-up tapes storage) located at 1540 NW Gage Blvd. #6, Topeka, KS 66618; Venio LLC, d/b/a Keane (lost shareholder search) located at PO Box 1508, Southeastern, PA 19399-1508; Broadridge Output Solutions, Inc. (printing and mailing anniversary statements, financial confirmations, automated letters and quarterly statements) located at 2600 Southwest Blvd., Kansas City, MO 64108.

In administering the Contracts, the following services are provided, among others:

•maintenance of Contract Owner records;

•Contract Owner services;

•calculation of unit values;

•maintenance of the Variable Account; and

•preparation of Contract Owner reports.

We will send you Contract statements at least annually. We will also send you transaction confirmations. You should notify us promptly in writing of any address change. You should read your statements and confirmations carefully and verify their accuracy. You should contact us promptly if you have a question about a periodic statement or a confirmation. We will investigate all complaints and make any necessary adjustments retroactively, but you must notify us of a potential error within a reasonable time after the date of the questioned statement. If you wait too long, we will make the adjustment as of the date that we receive notice of the potential error. Correspondence you send by regular mail to our service center should be sent to P.O. Box 758543, Topeka, KS 66675-8566. Your correspondence will be picked up at this address and then delivered to our service center. Your correspondence is not considered received by us until it is received at our service center. Where this prospectus refers to the day when we receive a purchase payment, request, election, notice, transfer or any other transaction request from you, we mean the day on which that item (or the last requirement needed for us to process that item) arrives in complete and proper form at our service center or via the appropriate telephone or fax number if the item is a type we accept by those means. There are two main exceptions: if the item arrives at our service center (1) on a day that is not a business day, or (2) after the close of a business day, then, in each case, we are deemed to have received that item on the next business day.

We will also provide you with additional periodic and other reports, information and prospectuses as may be required by federal securities laws.

Reliance on Rule 12h-7

Rule 12h-7 under the Exchange Act exempts an insurance company from filing reports under the Exchange Act when the insurance company issues certain types of insurance products that are registered under the Securities Act of 1933 and such products are regulated under state law. The ~~MVA~~Guaranteed Maturity Fixed Account Options described in this prospectus fall within the exemption provided under Rule 12h-7. The Company will rely on the exemption provided under Rule 12h-7 and will not file reports under the Exchange Act.

Appendix I: Market Value Adjustment Examples

Consultant ~~Solutions~~I Variable Annuities

The Market Value Adjustment is based on the following:


Purchase Payment:			$40,000.00
Guarantee Period:			5 years
Guaranteed Interest Rate:			5% Annual Effective Rate
5-year Treasury Rate at Time of Purchase Payment:			6%

IThe =following ~~the~~examples ~~Treasury~~illustrate ~~Rate~~how ~~for~~the aMarket ~~maturity~~Value ~~equal~~Adjustment toand the ~~term~~Withdrawal ~~length~~Charge ofmay affect the ~~Guarantee~~values ~~Period~~of ~~for~~a Contract upon a withdrawal. The 5% assumed Guaranteed Interest Rate is the ~~week~~rate ~~preceding~~required to be used in the ~~establishment~~“Summary of Expenses.” In these examples, the ~~MVA~~withdrawal ~~Guarantee~~occurs ~~Period~~one ~~Account;~~year after the Issue Date. The Market Value Adjustment operates in a similar manner for transfers, except that there is no free amount for transfers. No Withdrawal Charge applies to transfers.

JAssuming =that the ~~Treasury~~entire ~~Rate~~$40,000.00 ~~for~~Purchase aPayment ~~maturity~~is ~~equal~~allocated to the ~~term~~Guaranteed ~~length~~Maturity ofFixed ~~the~~Account ~~MVA~~for the Guarantee Period ~~Account~~specified ~~for~~above, at the ~~week~~end ~~preceding~~of the ~~date~~five-year ~~amounts~~Guarantee ~~are~~Period ~~transferred~~the orContract ~~withdrawn~~Value ~~from~~would ~~the~~be ~~MVA~~$51,051.26. ~~Guarantee~~After ~~Period~~one ~~Account~~year, when the ~~date~~withdrawals weoccur ~~determine~~in these examples, the ~~Death~~Contract ~~Proceeds~~Value would be $42,000.00. orWe ~~the~~have ~~Payout~~assumed ~~Start~~that ~~Date,~~no asprior ~~the~~partial ~~case~~withdrawals ~~may~~or betransfers (“have occurred. The Market Value Adjustment ~~Date”)~~and the Withdrawal Charge only apply to the portion of a withdrawal that is greater than the Free Withdrawal Amount. Accordingly, the first step is to calculate the Free Withdrawal Amount.

NThe =Free ~~the~~Withdrawal ~~number~~Amount ofis ~~whole~~equal ~~and partial years from the Market Value Adjustment Date~~ to ~~the expiration of the term length of the MVA Guarantee Period Account.~~:

~~Treasury~~(a) ~~Rate means~~ the ~~U.S.~~greater Treasury Note Constant Maturity yield as reported in Federal Reserve Board Statistical Release H.15. If such yields cease to be available in Federal Reserve Board Statistical Release H.15, then we will use an alternate source for such information in our discretion.of:

~~The~~• ~~Market~~earnings ~~Value~~not ~~Adjustment~~previously ~~factor~~withdrawn; isor• ~~determined~~15% ~~from~~of your total Purchase Payments in the ~~following~~most ~~formula:~~recent seven years; plus

.9(b) ×an ~~[I-(J~~amount +equal ~~.0025)]~~to ×your Ntotal Purchase Payments made more than seven years ago, to the extent not previously withdrawn.

~~The~~Here, ~~numerator of the MVA formula includes~~ (a) ~~factor,~~equals ~~currently equal to 0~~$6,000.~~0025~~00, orbecause 2515% ~~basis points. The factor is an adjustment that is applied when an MVA is assessed (regardless~~ of ~~whether~~ the ~~MVA~~total isPurchase ~~positive~~Payments orin ~~negative)~~the ~~and,~~most ~~relative~~recent toseven ~~when~~years ~~no factor is applied~~($6,000.00 ~~will~~= ~~reduce~~15% ~~the amount being surrendered or transferred from the MVA Fixed Guarantee Period Account.~~×

~~To determine the Market Value Adjustment~~$40,000.00) weis ~~will~~greater ~~multiply~~than the ~~Market~~earnings ~~Value~~not ~~Adjustment~~previously ~~factor~~withdrawn ~~by the amount transferred~~($2,000.00). ~~withdrawn,~~(b) ~~paid~~equals ~~as Death Proceeds~~$0, orbecause ~~applied~~all toof ~~an Income Plan from a MVA Guarantee Period Account at any time other than during~~ the ~~30-day~~Purchase ~~period after such Guarantee Period Account expires. NOTE: These examples assume that premium taxes are not applicable.~~Payments

Examples of Market Value Adjustment
Purchase Payment:			$10,000 allocated to a MVA Guarantee Period Account
Guarantee Period:			5 years
Interest Rate:			4.50%
Full Withdrawal:			End of Contract Year 3
Contract:			Consultant Solutions Classic*

were made less than seven years age. Accordingly, the Free Withdrawal Amount is $6,000.00.

Example 1: (Assumes Declining Interest Rates)
Step 1: Calculate Contract Value at End of Contract Year 3:	=	$10,000.00 x (1.045)3 = $11,411.66
Step 2: Calculate the Free Withdrawal Amount:	=	.15 x $10,000 = $1,500
Step 3: Calculate the Withdrawal Charge:	=	.06 x ($10,000 - $1,500) = $510
Step 4: Calculate the Market Value Adjustment:	I	= 4.50%
	J	= 4.20%
	N	= 730 DAYS	= 2
		365
	Market Value Adjustment Factor: .9 x [I - (J + .0025)] x N
	=	.9 x [.045 - (.042 + .0025)] x 2 = .0009
	Market Value Adjustment = Market Value Adjustment Factor x Amount Subject to Market Value Adjustment:
	=	.0009 x $11,411.66 = $10.27
Step 5: Calculate the amount received by Contract owner as a result of full withdrawal at the end of Contract Year 3:	=	$11,411.66 - $510 + $10.27 = $10,911.93

The formula that we use to determine the amount of the Market Value Adjustment is:

.9 × (I - J) × N

where: I = the Treasury Rate for a maturity equal to the relevant Guarantee Period for the week preceding the beginning of the

Guarantee Period;

J = the Treasury Rate for a maturity equal to the relevant Guarantee Period for the week preceding our receipt of your withdrawal

request, death benefit request, transfer request, or annuity option request; and

N = the number of whole and partial years from the date we receive your request until the end of the relevant Guarantee Period.

We will base the Market Value Adjustment on the current Treasury Rate for a maturity corresponding in length to the relevant

Guarantee Period. These examples also show the Withdrawal Charge (if any), which would be calculated separately from the Market

Value Adjustment.

Example 2: (Assumes Rising Interest Rates)
Step 1: Calculate Contract Value at End of Contract Year 3:	=	$10,000.00 x (1.045)3 = $11,411.66
Step 2: Calculate the Free Withdrawal Amount:	=	.15 x $10,000 = $1,500
Step 3: Calculate the Withdrawal Charge:	=	.06 x ($10,000 - $1,500) = $510
Step 4: Calculate the Market Value Adjustment:	I	= 4.50%
	J	= 4.80%
	N	= 730 DAYS	= 2
		365
	Market Value Adjustment Factor: .9 x [I - (J + .0025)] x N
	=	.9 x [(.045 - (.048 + .0025)] x (2) = -.0099
	Market Value Adjustment = Market Value Adjustment Factor x Amount Subject to Market Value Adjustment:
	=	-.0099 x $11,411.66 = -($112.98)
Step 5: Calculate the amount received by Contract owner as a result of full withdrawal at the end of Contract Year 3:	=	$11,411.66 - $510 - $112.98 = $10,788.68

Example of a Downward Market Value Adjustment:

A downward Market Value Adjustment results from a full or partial withdrawal that occurs when interest rates have increased. Assume interest rates have increased one year after the Purchase Payment, such that the five-year Treasury Rate is now 6.5%. Upon a withdrawal, the market value adjustment factor would be:

*.9 ~~These~~× ~~examples~~(.06 ~~assume~~- ~~the election of the Consultant Solutions Classic Contract for the purpose of illustrating the Market Value Adjustment calculation~~.065) ~~The~~× ~~amounts~~4 ~~would~~= ~~be different under Consultant Solutions Plus, Consultant Solutions Elite Contracts, and Consultant Solutions Select Contracts which have different expenses and withdrawal charges~~-.0180

The Market Value Adjustment is a reduction of $648.00 from the amount withdrawn:

$ - 648.00 = -.0180 × ($42,000.00 - $6,000.00)

A Withdrawal Charge of 7% would be assessed against the Purchase Payments withdrawn that are less than seven years old and are not eligible for free withdrawal. Under the Contract, earnings are deemed to be withdrawn before Purchase Payments. Accordingly, in this example, the amount of the Purchase Payment eligible for free withdrawal would equal the Free Withdrawal Amount less the interest credited or $4,000.00 ($6,000.00 - $2,000.00).

Therefore, the Withdrawal Charge would be:

$2,520.00 = 7% × (40,000.00 - $4,000.00)

As a result, the net amount payable to you would be:

$38,832.00 = $42,000.00-$648.00 - $2,520.00

Example of an Upward Market Value Adjustment:

An upward Market Value Adjustment results from a withdrawal that occurs when interest rates have decreased. Assume interest rates have decreased one year after the Purchase Payment, such that the five-year Treasury Rate is now 5.5%. Upon a withdrawal, the market value adjustment factor would be:

.9 × (.06 - .055) × 4 = .0180

The Market Value Adjustment would increase the amount withdrawn by $648.00, as follows:

$648.00 = .0180 × ($42,000.00 - $6,000.00)

As above, in this example, the amount of the Purchase Payment eligible for free withdrawal would equal the Free Withdrawal Amount less the interest credited or $4,000.00 ($6,000.00 - $2,000.00). Therefore, the Withdrawal Charge would be:

$2,520.00 = 7% × ($40,000.00 - $4,000.00)

As a result, the net amount payable to you would be:

$40,128.00 = $42,000.00 + $648.00 - $2,520.00

Example of a Partial Withdrawal:

If you request a partial withdrawal from a Guarantee Period, we can either (1) withdraw the specified amount of Contract Value and pay you that amount as adjusted by any applicable Market Value Adjustment or (2) pay you the amount requested, and subtract an amount from your Contract Value that equals the requested amount after application of the Market Value Adjustment and Withdrawal Charge. Unless you instruct us otherwise, when you request a partial withdrawal we will assume that you wish to receive the amount requested. We will make the necessary calculations and on your request provide you with a statement showing our calculations.

For example, if in the first example you wished to receive $20,000.00 as a partial withdrawal, the Market Value Adjustment and

Withdrawal Charge would be calculated as follows:

Let: AW = the total amount to be withdrawn from your Contract Value

MVA = Market Value Adjustment

WC = Withdrawal Charge

AW’ = amount subject to Market Value Adjustment and Withdrawal Charge

Then AW -$20,000.00 = WC - MVA

Since neither the Market Value Adjustment nor the Withdrawal Charge apply to the free withdrawal amount, we can solve directly for

the amount subject to the Market Value Adjustment and the Withdrawal Charge (i.e., AW’), which equals AW - $6,000.00. Then, AW =

AW’ + $6,000, and AW’ + $6,000.00 - $20,000.00 = WC - MVA.

LBL Advantage Variable Annuities


MVA	=	-.018 x AW'
WC	=	.07 x AW'
WC - MVA	=	.088AW'
AW' - $14,000.00	=	.088AW'
AW'	=	$14,000.00 / (1 - .088) = $15,350.88
MVA	=	-.018 x $15,350.88 = - $276.32
WC	=	.07 x $15,350.88 = $1,074.56

~~The~~AW ~~Market~~= ~~Value~~Total ~~Adjustment~~amount iswithdrawn ~~based~~= on$15,350.88 ~~the~~+ ~~following:~~$6,000.00 = $21,350.88

IYou =receive $20,000.00; the ~~Treasury~~total ~~Rate~~amount ~~for~~subtracted afrom ~~maturity~~your ~~equal~~contract tois ~~the~~$21,350.88; ~~Guarantee Period for~~ the ~~week~~Market ~~preceding~~Value ~~the~~Adjustment ~~establishment~~is ~~of the Guarantee Period~~$276.32; and

~~J =~~ the ~~Treasury~~Withdrawal ~~Rate~~Charge ~~for~~is ~~a maturity equal to the term length of the Guarantee Period Account for the week preceding the date amounts are transferred or withdrawn from the Guarantee Period Account~~$1,074.56. ~~the~~Your ~~date~~remaining weContract ~~determine the Death Proceeds, or the Payout Start Date, as the case may be (“Market~~ Value ~~Adjustment~~is ~~Date”)~~$20,649.12.

NIf, =however, ~~the~~in ~~number of whole and partial years from~~ the ~~date~~same ~~we receive the withdrawal~~example, ~~transfer,~~you orwished ~~death~~to ~~benefit~~withdraw ~~request~~$20,000.00 or from ~~the~~your ~~Payout~~Contract ~~State~~Value ~~Date~~and toreceive the ~~end~~adjusted ofamount, the ~~Guarantee Period.~~

~~Treasury~~calculations ~~Rate~~would ~~means~~be ~~the U.S. Treasury Note Constant Maturity yield~~ as ~~reported in Federal Reserve Bulletin Release H.15.~~ follows:

~~The~~By ~~Market~~definition, ~~Value~~AW ~~Adjustment~~= ~~factor~~total isamount ~~determined~~withdrawn from ~~the~~your ~~following~~Contract ~~formula:~~Value = $20,000.00

.9 × [I-(J + .0025)] × N


AW'	=	amount that MVA & WC are applied to
	=	amount withdrawn in excess of Free Amount = $20,000.00 - $6,000.00 = $14,000.00
MVA	=	-.018 x $14,000.00 = - $252.00
WC	=	.07 x $14,000.00 = $980.00

ToYou ~~determine~~would ~~the~~receive ~~Market Value Adjustment~~$20,000.00 we- ~~will~~$252.00 ~~multiply~~- ~~the~~$980.00 ~~Market~~= ~~Value~~$18,768.00; ~~Adjustment factor by~~ the total amount ~~transferred,~~subtracted ~~withdrawn, paid as a death benefit, or applied to an Income Plan~~ from ayour ~~Guarantee~~Contract ~~Period~~Value atis ~~any time other than during the 30-day period after such Guarantee Period expires~~$20,000.00.

Examples Of Market Value Adjustment
Purchase Payment:			$10,000 allocated to a Guarantee Period
Guarantee Period:			5 years
Interest Rate:			4.50%
Full Withdrawal:			End of Contract Year 3
I (5-Year Treasury Rate):			4.50%

Your remaining Contract Value would be $22,000.00.

~~NOTE:~~Example ~~These~~of ~~examples~~Free ~~assume~~Withdrawal ~~that premium taxes are not applicable and that previous withdrawals have not been taken.~~Amount

Example 1: (Assumes Declining Interest Rates)
Step 1: Calculate Contract Value at End of Contract Year 3:	=	$10,000.00 x (1.045)3 = $11,411.66
Step 2: Calculate the Free Withdrawal Amount:	=	.15 x ($10,000) = $1,500.00 (greater than $1,411.66 earnings in the Contract)
Step 3: Calculate the Withdrawal Charge:
Under the Contract, earnings are deemed to be withdrawn before Purchase Payments. Accordingly, in this example, the amount of the Purchase Payment eligible for free withdrawal would equal the Free Withdrawal Amount less the interest credited or $88.34 ($1,500.00 - $1,411.66). Therefore, the Withdrawal Charge would be:	=	.07 x ($10,000 - $88.34) = $693.82
Step 4: Calculate the Market Value Adjustment:	I	= 4.50%
	J	= 4.20% (5-Year Treasury Rate at time of withdrawal)
	N	= 730 DAYS	= 2
		365 DAYS
	Market Value Adjustment Factor: .9 x [I - (J + .0025)] x N
	=	.9 x [.045 - (.042 + .0025)] x 2 = .0009
	Market Value Adjustment = Market Value Adjustment Factor x Amount Subject to Market Value Adjustment:
	=	.0009 x $11,411.66 = $10.27
Step 5: Calculate the amount received by Contract owner as a result of full withdrawal at the end of Contract Year 3:	=	$11,411.66 - $693.82 + $10.27 = $10,728.11

Assume that in the foregoing example, after four years $8,620.25 in interest had been credited and that the Contract Value in the Fixed

Account equaled $48,620.25. In this example, if no prior withdrawals have been made, you could withdraw up to $8,620.25 without

incurring a Market Value Adjustment or a Withdrawal Charge. The Free Withdrawal Amount would be $8,620.25, because the interest

credited ($8,620.25) is greater than 15% of the Total Purchase Payments in the most recent seven years ($40,000.00 × .15 = $6,000.00).

Example 2: (Assumes rising interest rates)
Step 1: Calculate Contract Value at End of Contract Year 3:	=	$10,000.00 x (1.045)3 = $11,411.66
Step 2: Calculate the Free Withdrawal Amount:	=	.15 x ($10,000.00) = $1,500.00 (greater than $1,411.66 in earnings)
Step 3: Calculate the Withdrawal Charge:
As above, in this example, the amount of the Purchase Payment eligible for free withdrawal would equal the Free Withdrawal Amount less the interest credited or $88.34 ($1,500.00 - $1,411.66). Therefore, the Withdrawal Charge would be:	=	.07 x ($10,000.00 - $88.34) = $693.82
Step 4: Calculate the Market Value Adjustment:	J	= 4.80% (5-Year Treasury Rate at time of withdrawal)
	N	= 730 DAYS	= 2
		365 DAYS
	Market Value Adjustment Factor: .9 x [I - (J + .0025)] x N
	=	.9 x [(.045 - (.048 + .0025)] x (2) = -.0099
	Market Value Adjustment = Market Value Adjustment Factor x Amount Subject to Market Value Adjustment:
	=	-.0099 x $11,411.66 = -($112.98)
Step 5: Calculate the amount received by Contract owner as a result of full withdrawal at the end of Contract Year 3:	=	$11,411.66 - $693.82 - $112.98 = $10,604.86

Consultant II Variable Annuities


Purchase Payment:			$40,000.00
Guarantee Period:			5 years
Guaranteed Interest Rate:			5% Annual Effective Rate
5-year Treasury Rate at Time of Purchase Payment:			6%

The following examples illustrate how the Market Value Adjustment and the Withdrawal Charge may affect the values of a Contract upon a withdrawal. The 5% assumed Guaranteed Interest Rate is the rate required to be used in the “Summary of Expenses.” In these examples, the withdrawal occurs one year after the Issue Date. The Market Value Adjustment operates in a similar manner for transfers, except that there is no free amount for transfers. No Withdrawal Charge applies to transfers.

Assuming that the entire $40,000.00 Purchase Payment is allocated to the Guaranteed Maturity Fixed Account for the Guarantee Period specified above, at the end of the five-year Guarantee Period the Contract Value would be $51,051.26. After one year, when the withdrawals occur in these examples, the Contract Value would be $42,000.00. We have assumed that no prior partial withdrawals or transfers have occurred.

The formula that we use to determine the amount of the Market Value Adjustment is:

.9 × (I - J) × N

where: I = the Treasury Rate for a maturity equal to the relevant Guarantee Period for the week preceding the beginning of the

Guarantee Period;

J = the Treasury Rate for a maturity equal to the relevant Guarantee Period for the week preceding our receipt of your withdrawal

request, death benefit request, transfer request, or annuity option request; and

N = the number of whole and partial years from the date we receive your request until the end of the relevant Guarantee Period.

We will base the Market Value Adjustment on the current Treasury Rate for a maturity corresponding in length to the relevant

Guarantee Period.

Example of a Downward Market Value Adjustment:

A downward Market Value Adjustment results from a full or partial withdrawal that occurs when interest rates have increased. Assume interest rates have increased one year after the Purchase Payment, such that the five-year Treasury Rate is now 6.5%. Upon a withdrawal, the market value adjustment factor would be:

.9 × (.06 - .065) × 4 = -.0180

The Market Value Adjustment is a reduction of $756.00 from the amount withdrawn:

$ - 756.00 = -.0180 × $42,000.00

As a result, the net amount payable to you would be:

$41,244.00 = $42,000.00-$756.00

.9 × (.06 - .055) × 4 = .0180 (1)

The Market Value Adjustment would increase the amount withdrawn by $756.00, as follows:

$756.00 = .0180 × $42,000.00

(1) Actual calculation utilizes ten decimal places.

Example of a Partial Withdrawal:

If you request a partial withdrawal from a Guarantee Period, we can either (1) withdraw the specified amount of Contract Value and pay you that amount as adjusted by any applicable Market Value Adjustment or (2) pay you the amount requested, and subtract an amount from your Contract Value that equals the requested amount after application of the Market Value Adjustment. Unless you instruct us otherwise, when you request a partial withdrawal we will assume that you wish to receive the amount requested. We will make the necessary calculations and on your request provide you with a statement showing our calculations.

For example, if in the first example you wished to receive $20,000.00 as a partial withdrawal, we would perform the following calculations:


Let:	A	=	the amount to be withdrawn from your Contract Value; and
	B	=	the amount of the applicable Market Value Adjustment
Then	A+B	=	$20,000.00

-.0180 x A = B

A = $20,000.00/(1-.0180) = $20,366.60

Accordingly, we would pay you $20,000.00 and subtract $20,366.60 from your Contract Value. The Market Value Adjustment would be a subtraction of $366.60.

If, however, in the same example, you wished to withdraw $20,000.00 from your Contract Value and receive the adjusted amount, we would perform the following calculations:


Let:	A	=	the amount to be paid to you; and
	B	=	the amount of the applicable Market Value Adjustment
Then $20,000.00 + B = A

-.0180 X $20,000.00 = $-360.00 = B
and A = $20,000.00 - $360.00 = $19,640.00

Accordingly, we would pay you $19,640.00 and subtract $20,000.00 from your Contract Value. The Market Value Adjustment would be a subtraction of $360.00.

Premier Planner Variable Annuities


Purchase Payment:			$40,000.00
Credit Enhancement:			1,600.00
Guarantee Period:			5 years
Guaranteed Interest Rate:			5% Annual Effective Rate
5-year Treasury Rate at Time of Purchase Payment:			6%

The following examples illustrate how the Market Value Adjustment and the Withdrawal Charge may affect the values of a Contract upon a withdrawal. The 5% assumed Guaranteed Interest Rate is the rate required to be used in the “Summary of Expenses.” In these examples, the withdrawal occurs one year after (in the second Contract Year) the Issue Date. The Market Value Adjustment operates in a similar manner for transfers, except that there is no free amount for transfers. No Withdrawal Charge applies to transfers.

Assuming that the entire $40,000.00 Purchase Payment and $1,600.00 Credit Enhancement are allocated to the Guaranteed Maturity Fixed Account for the Guarantee Period specified above, at the end of the five-year Guarantee Period the Contract Value would be $53,093.31. After one year, when the withdrawals occur in these examples, the Contract Value would be $43,680.00. We have assumed that no prior partial withdrawals or transfers have occurred.

The Market Value Adjustment and the Withdrawal Charge only apply to the portion of a withdrawal that is greater than the Free Withdrawal Amount. Accordingly, the first step is to calculate the Free Withdrawal Amount.

The Free Withdrawal Amount is equal to:

(a) the greater of:

• earnings not previously withdrawn; or
• 15% of your total Purchase Payments in the most recent seven years; plus

(b) an amount equal to your total Purchase Payments made more than eight years ago, to the extent not previously withdrawn.

Here, (a) equals $6,000.00, because 15% of the total Purchase Payments in the most recent eight years ($6,000.00 = 15% ×

$40,000.00) is greater than the earnings not previously withdrawn ($3,680.00). (b) equals $0, because all of the Purchase Payments

were made less than eight years age. Accordingly, the Free Withdrawal Amount is $6,000.00.

The formula that we use to determine the amount of the Market Value Adjustment is:

.9 × (I - J) × N

where: I = the Treasury Rate for a maturity equal to the relevant Guarantee Period for the week preceding the beginning of the

Guarantee Period;

J = the Treasury Rate for a maturity equal to the relevant Guarantee Period for the week preceding our receipt of your withdrawal

request, death benefit request, transfer request, or annuity option request; and

N = the number of whole and partial years from the date we receive your request until the end of the relevant Guarantee Period.

We will base the Market Value Adjustment on the current Treasury Rate for a maturity corresponding in length to the relevant

Guarantee Period. These examples also show the Withdrawal Charge (if any), which would be calculated separately from the Market

Value Adjustment.

.9 × (.06 - .065) × 4 = -.0180

The Market Value Adjustment is a reduction of $678.24 from the amount withdrawn:

$ - 678.24 = -.0180 × ($43,680.00 - $6,000.00)

A Withdrawal Charge of 7% (assuming the Withdrawal occurs at the start of the second Contract year) would be assessed against the Purchase Payments withdrawn that are less than eight years old and are not eligible for free withdrawal. Under the Contract, earnings are deemed to be withdrawn before Purchase Payments. Accordingly, in this example, the amount of the Purchase Payment eligible for free withdrawal would equal the Free Withdrawal Amount less the interest credited or $2,320.00 ($6,000.00 - $3,680.00).

Therefore, the Withdrawal Charge would be:

$2,637.60 = 7% × (40,000.00 - $2,320.00)

As a result, the net amount payable to you would be:

$40,364.16 = $43,680.00-$678.24 - $2,637.60

.9 × (.06 - .055) × 4 = .0180

The Market Value Adjustment would increase the amount withdrawn by $648.00, as follows:

$678.24 = .0180 × ($43,680.00 - $6,000.00)

As above, in this example, the amount of the Purchase Payment eligible for free withdrawal would equal the Free Withdrawal Amount less the interest credited or $2,320.00 ($6,000.00 - $3,680.00). Therefore, the Withdrawal Charge would be:

$2,637.60 = 7% × ($40,000.00 - $2,320.00)

As a result, the net amount payable to you would be:

$41,720.64 = $43,680.00 + $678.24 - $2,637.60

For example, if in the first example you wished to receive $20,000.00 as a partial withdrawal, the Market Value Adjustment and

Withdrawal Charge would be calculated as follows:

Let: AW = the total amount to be withdrawn from your Contract Value

MVA = Market Value Adjustment

WC = Withdrawal Charge

AW’ = amount subject to Market Value Adjustment and Withdrawal Charge

Then AW - $20,000.00 = WC - MVA

Since neither the Market Value Adjustment nor the Withdrawal Charge apply to the free withdrawal amount, we can solve directly for

the amount subject to the Market Value Adjustment and the Withdrawal Charge (i.e., AW’), which equals AW - $6,000.00. Then, AW = AW’ + $6,000, and AW’ + $6,000.00 - $20,000.00 = WC - MVA.


MVA	=	-.018 x AW'
WC	=	.07 x AW'
WC - MVA	=	.088AW'
AW' - $14,000.00	=	.088AW'
AW'	=	$14,000.00 / (1 - .088) = $15,350.88
MVA	=	-.018 x $15,350.88 = - $276.32
WC	=	.07 x $15,350.88 = $1,074.56

AW = Total amount withdrawn = $15,350.88 + $6,000.00 = $21,350.88

You receive $20,000.00; the total amount subtracted from your contract is $21,350.88; the Market Value Adjustment is $276.32; and

the Withdrawal Charge is $1,074.56. Your remaining Contract Value is $20,649.12.

If, however, in the same example, you wished to withdraw $20,000.00 from your Contract Value and receive the adjusted amount, the

calculations would be as follows:

By definition, AW = total amount withdrawn from your Contract Value = $20,000.00


AW'	=	amount that MVA & WC are applied to
	=	amount withdrawn in excess of Free Amount = $20,000.00 - $6,000.00 = $14,000.00
MVA	=	-.018 x $14,000.00 = - $252.00
WC	=	.07 x $14,000.00 = $980.00

You would receive $20,000.00 - $252.00 - $980.00 = $18,768.00; the total amount subtracted from your Contract Value is $20,000.00.

Your remaining Contract Value would be $22,000.00.

Example of Free Withdrawal Amount

Assume that in the foregoing example, after four years $10,565.06 in earnings; including the Credit Enhancement had been credited and that the Contract Value in the Fixed Account equaled $50,565.06. In this example, if no prior withdrawals have been made, you could withdraw up to $10,565.06 without incurring a Market Value Adjustment or a Withdrawal Charge. The Free Withdrawal Amount would be $10,565.06, because the interest credited ($10,565.06) is greater than 15% of the Total Purchase Payments in the most recent eight years ($40,000.00 × .15 = $6,000.00).

APPENDIX II. INFORMATION ABOUT LINCOLN BENEFIT LIFE COMPANY

INDEX

	Page
Item 3(c)	Risk Factors	15
Risk Factors Associated with Lincoln Benefit Life and its Industry		19
Item 11 (a)	Description of Business	29
Description of Business		33
Item 11 (b)	Description of Property	29
Description of Property		33
Item 11 (c)	Legal Proceedings	29
Legal Proceedings		33
Item 11 (e)	Financial Statements and Notes to Financial Statements	30
Financial Statements and Notes to Financial Statements		34
Item 11 (f)	Selected Financial Data	83
Selected Financial Data		96
Item 11 (h)	Management's Discussion and Analysis of Financial Condition and Results of Operations	84
Management's Discussion and Analysis of Financial Condition and Results of Operations		97
Item 11 (i)	Changes in or Disagreements with Accountants	97
Changes in or Disagreements with Accountants		110
Item 11 (j)	Quantitative and Qualitative Disclosures About Market Risk	97
Quantitative and Qualitative Disclosures About Market Risk		110
Item 11 (k)	Directors and Executive Officers	97
Directors and Executive Officers		110
Item 11 (l)	Executive Compensation	98
Executive Compensation		111
Item 11 (m)	Security Ownership of Certain Beneficial Owners and Management	99
Security Ownership of Certain Beneficial Owners and Management		112
Item 11 (n)	Transactions with Related Persons, Promoters and Certain Control Persons	101
Transactions with Related Persons, Promoters and Certain Control Persons		114

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~~Item 3(c).~~ Risk Factors Associated with Lincoln Benefit Life and its Industry

LINCOLN BENEFIT LIFE RISK FACTORS

This document contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We assume no obligation to update any forward-looking statements as a result of new information or future events or developments.

These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. These statements may address, among other things, our strategy for growth, investment results, regulatory approvals, market position, expenses, financial results, litigation and reserves. We believe that these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements.

In addition to the normal risks of business, we are subject to significant risks and uncertainties, including those listed below, which apply to us as an insurer. These risks constitute our cautionary statements under the Private Securities Litigation Reform Act of 1995 and readers should carefully review such cautionary statements as they identify certain important factors that could cause actual results to differ materially from those in the forward-looking statements and historical trends. These cautionary statements are not exclusive and are in addition to other factors discussed elsewhere in this document, in our filings with the SEC or in materials incorporated therein by reference.

Changes in actual experience could materially and adversely affect the Company’s financial condition.

Our liability pricing includes long-term assumptions regarding investment returns, mortality, morbidity, persistency and operating costs and expenses of our business. We establish target returns based upon these factors and the average amount of capital that we must hold to support in-force contracts taking into account rating agencies and regulatory requirements. Profitability emerges over a period of years depending on the nature and life of the product and is subject to variability as actual results may differ from pricing assumptions. Additionally, many of our products have fixed or guaranteed terms that limit our ability to increase revenues or reduce benefits, including credited interest, once the product has been issued.

Our financial condition depends in part on the adequacy of investment spreads, the management of market and credit risks associated with investments, the sufficiency of premiums and contract charges to cover mortality and morbidity benefits, the persistency of policies, and the management of operating costs and expenses within anticipated pricing allowances. We may face losses if there are significant deviations from our assumptions regarding the future persistency of our insurance policies and annuity contracts. The prices and expected future profitability of our life insurance, deferred annuity and long-term care products are based in part upon assumptions related to persistency. Economic and market dislocations may occur and future consumer persistency behaviors could vary materially from the past. The effect of persistency on profitability varies for different products. For example, continued activity in the viatical, stranger-owned, and/or life settlement industry could cause the Company’s level of lapses to differ from its assumptions, which could negatively impact the Company’s financial condition and cash flow. Assumptions and estimates involve judgment, and by their nature are imprecise and subject to changes and revisions over time. Accordingly, the Company’s results may be affected, positively or negatively, from time to time, by actual results differing from assumptions by changes in estimates, and by changes resulting from implementing new systems and procedures that facilitate the calculation of more precise estimates. Legislation and regulation of the insurance marketplace and products could also affect the profitability of our business, which in turn could adversely affect our financial condition.

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Changes in reserve estimates may adversely affect our operating results.

We establish and hold reserves to pay future policy benefits and claims. The reserve for policy benefits is computed on a prescribed basis. Our reserves do not represent an exact calculation of liability, but rather are actuarial or statistical estimates based on data and models that include many assumptions and projections, which are inherently uncertain and involve the exercise of significant judgment. We periodically review the adequacy of these reserves and the underlying assumptions. We cannot, however, determine with precision the amounts that we will pay for, or the timing of payment of, actual benefits, claims and expenses or whether the assets supporting our policy liabilities, together with future premiums, will grow to the level assumed prior to the payment of benefits or claims. If actual experience differs significantly from assumptions or estimates, reserves may not be adequate. If we conclude that our reserves, together with future premiums, are insufficient to cover future policy benefits and claims, we would be required to increase our reserves and incur income statement charges for the period in which we make the determination, which could materially and adversely affect our cash flow, results of operations and financial condition.

Changes in market interest rates and/or credit spreads may lead to a significant decrease in the profitability of our spread-based products and may adversely impact investment income.

We are subject to the risk that we will incur losses due to adverse changes in interest rates or credit spreads.

Adverse changes to these rates and spreads may occur due to changes in fiscal policy and the economic climate, the liquidity of a market or market segment, insolvency or financial distress of key market makers or participants, or changes in market perceptions of creditworthiness and/or risk tolerance. We are subject to risks associated with potential declines in credit quality related to specific issuers or specific industries and a general weakening in the economy, which are typically reflected through credit spreads. Credit spread is the additional yield on fixed income securities above the risk-free rate (typically referenced as the yield on U.S. Treasury securities) that market participants require to compensate them for assuming credit, liquidity and/or prepayment risks. Credit spreads vary (i.e., increase or decrease) in response to the market’s perception of risk and liquidity in a specific issuer or specific sector and are influenced by the credit ratings, and the reliability of those ratings, published by external rating agencies. A decline in the quality of our investment portfolio as a result of changes in market interest rates, adverse economic conditions or otherwise could cause additional realized and unrealized losses on securities in our investment portfolio. Similarly, a ratings downgrade affecting a security we hold could indicate the credit quality of that security has deteriorated and could increase the capital we must hold to support that security to maintain our risk-based capital levels. Levels of writedowns and impairments are impacted by intent to sell, or our assessment of the likelihood that we will be required to sell, fixed maturity securities. Realized losses or impairments on these securities may have a material adverse effect on our net income in a particular period, which in turn could materially and adversely affect our cash flow, results of operations and financial condition.

Our ability to manage our fixed annuities and interest-sensitive life products is dependent upon maintaining profitable spreads between investment yields and interest crediting rates. When market interest rates decrease or remain at relatively low levels, cash flows from renewal premium or investments that have matured or have been prepaid or sold may be reinvested at lower yields, reducing investment spread. Lowering interest crediting rates on some products in such an environment can partially offset decreases in investment yield. However, these changes could be limited by market conditions, regulatory minimum rates or contractual minimum rate guarantees on many contracts and may not match the timing or magnitude of changes in investment yields.

Decreases in the interest crediting rates offered on products could make those products less attractive, leading to changes in the level of policy loans, surrenders and withdrawals. This process may lead to a flow of cash out of our business. These outflows may require investment assets to be sold at a time when the prices of those assets are lower because of the increase in market interest rates, which may result in realized investment losses. For certain products, principally fixed annuity and interest-sensitive life products, the earned rate on assets could lag behind rising market yields. We may react to market conditions by increasing crediting rates, which could narrow spreads and reduce profitability on our business. Additionally, an increase in market interest rates or credit spreads could have an adverse effect on the value of our investment portfolio by decreasing the fair values of the fixed income securities that comprise a substantial majority of our investment portfolio.

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Guarantees within certain of our products may decrease our earnings, increase the volatility of our results, result in higher risk management costs and expose us to increased counterparty risk.

Certain of our products include guaranteed benefits. These guarantees are designed to protect contractholders against significant downturns in equity markets and interest rates. Any such periods of significant and sustained downturns in equity markets, increased equity volatility or reduced interest rates could result in an increase in the valuation of our liabilities associated with those products. An increase in these liabilities would result in a decrease in our net income. We use hedging and risk management strategies to mitigate the liability exposure and the volatility of net income associated with these liabilities. These strategies involve the use of reinsurance and derivatives, which may not be completely effective. In addition, hedging instruments may not effectively offset the costs of guarantees or may otherwise be insufficient in relation to our obligations.

Furthermore, we are subject to the risk that changes in contractholder behavior or mortality, combined with adverse market events, produce economic losses not addressed by the risk management techniques employed. These, individually or collectively, may have a material adverse effect on our results of operations, including net income, cash flow, financial condition or liquidity.

We may not be able to mitigate the capital impact associated with statutory reinsurance reserving requirements, potentially adversely impacting the profitability of our business.

To support statutory reserves for certain term and universal life insurance products with secondary guarantees, we currently utilize reinsurance and capital markets solutions for financing a portion of our statutory reserve requirements deemed to be non-economic. If we are not able to maintain sufficient financing as a result of market conditions or otherwise, this could potentially adversely impact the profitability of our business, which could materially and adversely effect our financial condition, cash flow and results of operations.

Changes in tax laws and the interpretations thereof may decrease the profitability of our products and could adversely affect the Company.

The U.S. Congress has, from time to time, considered legislation that could increase or adversely impact the manner of taxing the products the Company sells and of calculating the amount of taxes paid by life insurance companies or other corporations, including the Company.

The attractiveness to the Company’s customers of many of the Company’s products may be due, in part, to favorable tax treatment. Current U.S. federal income tax laws generally permit the tax-deferred accumulation of earnings on the premiums paid by the holders of life insurance and annuity products. Taxes, if any, are payable generally on income attributable to a distribution under the contract for the year in which the distribution is made. Congress has, from time to time, considered legislation that could have the effect of reducing or eliminating the benefit of such income tax deferral of taxation or otherwise affect the taxation of life insurance or annuity products. As a result, demand for certain of the Company’s life insurance and annuity products that offer income tax deferral could be negatively impacted. To the extent that legislation is enacted in the future to reduce the tax deferred status of life insurance or annuity products, limit the exclusion of death benefits from income, or reduce the taxation of competing products, all life insurance companies, including ours, could be adversely affected. Likewise, reductions in individual tax rates could reduce the attractiveness of tax deferral to the Company’s potential customers.

The Company’s taxes could increase as a result of changes in laws or regulations or in the interpretation of applicable tax laws and regulations. Furthermore, the value of deferred tax assets could be affected by the Company’s future earnings levels. There is a risk that the current administration could change rates or laws and negatively impact the Company’s earnings.

Regulations defining fiduciary could cause some changes to the manner in which we deliver products and services, as well as changes in the nature and amount of compensation and fees.

The Department of Labor, the Securities and Exchange Commission and the National Association of Insurance Commissioners (“NAIC”) have announced proposals to develop fiduciary standards that would apply to recommendations made by certain financial advisors. Furthermore, several states have either issued their own

1721

fiduciary rules or are considering doing so and those rules may extend to certain types of products (e.g. insurance and annuities, financial planning, etc.) or may broadly cover all recommendations made by financial advisors.

Additionally, self-regulatory bodies such as the Certified Financial Planner Board are developing a fiduciary standard that would apply to their members, such as financial advisors who hold a Certified Financial Planner designation.

Depending on the span and substance of any fiduciary rules and regulations and timing of their applicability, the scope of any implementation should not materially impact the way we compensate our advisors, particularly with respect to our closed block annuity business. However, compliance with prohibited transactions exemptions, when fully phased in, would likely require additional supervision with the possibility of overlapping or competing requirements from other regulators and increase litigation risk, all of which could adversely impact our business, results of operations and/or financial condition.

The Company is dependent on the performance of others.

The Company relies on third parties to provide various services that are important to our business operations. Certain of these third parties may act on behalf of the Company or represent the Company in various capacities, including but not limited to the administration of our contractholders’ activities or the management of our invested assets on a day-to-day basis. If a third party fails to perform its obligations or acts inappropriately with respect to the Company or its products, it could materially adversely affect the Company’s financial condition, results of operations and cash flows. Additionally, the Company’s operations are dependent on various technologies, some of which are provided and/or maintained by third parties. Any of the third parties that the Company depends upon may default on their services or obligations to the Company, including due to bankruptcy, insolvency, lack of liquidity, adverse economic conditions, operational failure, fraud or other reasons. Further, the Company may be held responsible for obligations that arise from the acts or omissions of these third parties. Such defaults could have a material adverse effect on the Company’s financial condition and results of operations.

If our internal controls are ineffective, our operating results could be adversely affected.

Our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls or fraud. Even effective internal controls can provide only reasonable assurance with respect to the preparation and fair presentation of financial statements. If we fail to maintain the adequacy of our internal controls, including any failure to implement required new or improved controls, or if we experience difficulties in their implementation, our business and operating results could be harmed and we could fail to meet our financial reporting obligations.

If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected.

The preparation of financial statements in conformity with statutory accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, as provided in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The results of these estimates form the basis for making judgments about the carrying values of assets, liabilities and equity, and the amount of revenue and expenses that are not readily apparent from other sources. Our operating results may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our operating results to fall below our expectations.

1822

We may be unable to retain our highly qualified employees.

Our business depends on our ability to attract, motivate and retain highly skilled and often highly specialized technical, actuarial, managerial and executive personnel, and there is no assurance that we will be able to do so. We compete with other financial services companies for employees primarily on the basis of compensation and financial position. Our reputation, operations and internal controls could be materially adversely affected if we are unsuccessful in recruiting and retaining highly qualified employees.

Risks Relating to Investments

The determination of the fair value of our fixed income securities is subjective and could materially impact our operating results and financial condition.

In determining fair values, we principally use the market approach which utilizes market transaction data for the same or similar instruments. The degree of management judgment involved in determining fair values is inversely related to the availability of market observable information. The fair value of assets may differ from the actual amount received upon sale of an asset in an orderly transaction between market participants at the measurement date. Moreover, the use of different valuation assumptions may have a material effect on the assets’ fair values. Changing market conditions could materially affect the determination of the fair value of securities and unrealized net capital gains and losses could vary significantly, which could materially and adversely affect our cash flows.

Concentration of our investment portfolio in any particular segment of the economy may have adverse effects on our operating results and financial condition.

Our investment portfolio is and may in the future be concentrated in a certain industry, collateral type, group of related industries, geographic sector or risk type. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations — Debt securities by Industry” and “— Commercial Mortgage Loans.” Any such current or future concentrations could have an adverse effect on our investment portfolio and consequently on our results of operations and financial condition. Events or developments that have a negative impact on any particular industry, group of related industries or geographic region may have a greater adverse effect on the investment portfolio to the extent that the portfolio is concentrated, rather than diversified.

The determination of the amount of other-than-temporary-impairments of our investments is subjective and could materially impact our operating results and financial condition.

The determination of the amount of realized capital losses recorded for impairments varies by investment type and is based on our ongoing 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. We update our evaluations regularly and reflect changes in other-than-temporary impairments in our results of operations. The assessment of whether other-than-temporary impairments have occurred is based on our case-by-case evaluation of the underlying reasons for the decline in fair value. We define fair value generally as the price that would be received to sell an asset or paid to transfer a liability. Our conclusions on such assessments are judgmental and include assumptions and projections of future cash flows which may ultimately prove to be incorrect as assumptions, facts and circumstances change. Furthermore, historical trends may not be indicative of future impairments and additional impairments may need to be recorded in the future.

Defaults or deteriorating credit of securities collateralized by residential and commercial mortgage loans, and collateralized corporate loans may lead to write-downs and impact our results of operations and financial condition.

Changes in residential or commercial mortgage delinquencies, loss severities or recovery rates, declining residential or commercial real estate prices, corporate loan delinquencies or recovery rates, changes in credit or bond insurer strength ratings and the quality of service provided by service providers on securities in our

1923

portfolio could lead us to determine that write-downs are necessary in the future, and could materially adversely affect our cash flow, results of operations and financial condition. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations — Commercial Mortgage Loans.”

Our investment strategies may not adequately protect against adverse developments in the financial markets.

While our investment management strategies are designed to protect asset value even in challenging market conditions, the Company cannot guarantee that such strategies would be successful, especially if there are unexpected developments in the financial markets. Slowing of global growth, tightening monetary policy in the

U.S. and increasing political uncertainty remain key challenges for markets. There may be a limited market for certain investments we hold in our investment portfolio, making them relatively illiquid. These include corporate bonds, privately-placed fixed maturity securities, mortgage loans and policy loans. If we were forced to sell certain of our investments during periods of market volatility or disruption, market prices may be lower than our carrying value in such investments. Even in the absence of a market downturn, we are exposed to substantial risk of loss due to market volatility.

Uncertainty relating to the potential phasing out of LIBOR after 2021 may adversely affect the value of the Company’s investment portfolio, the value of embedded derivatives and the Company’s ability to issue funding agreements.

Regulators and law enforcement agencies in the UK and elsewhere are conducting civil and criminal investigations into whether the banks that contribute to the British Bankers’ Association (“BBA”) in connection with the calculation of the daily London InterBank Offered Rate (“LIBOR”) may have been under-reporting or otherwise manipulating or attempting to manipulate LIBOR. A number of BBA member banks have entered into settlements with their regulators and law enforcement agencies with respect to this alleged manipulation of LIBOR.

Actions by the BBA, regulators or law enforcement agencies may result in changes to the manner in which LIBOR is determined or the establishment of alternative reference rates. For example, on July 27, 2017, the UK Financial Conduct Authority announced that it intends to stop persuading or compelling banks to submit LIBOR quotes after 2021. Uncertainty as to the nature of such potential changes, alternative reference rates or other reforms may adversely affect the trading market for LIBOR-based securities, including those held in the Company’s investment portfolio or used in the valuation of certain embedded derivatives. However, for U.S. dollar LIBOR, it now appears that the relevant date may be deferred to June 30, 2023 for the most common tenors (overnight and one, three, six and 12 months). An extension to 2023 would mean that many legacy U.S. dollar LIBOR contracts would terminate before related LIBOR rates cease to be published. However, regulators have emphasized that despite any continued publication of U.S. dollar LIBOR through June 30, 2023, no new contracts using U.S. dollar LIBOR should be entered into after December 31, 2021. Although the foregoing may provide some sense of timing, there is no assurance that LIBOR, of any particular currency and tenor, will continue to be published until any particular date.

Following the discontinuation of LIBOR, many of the Company’s investments may reset to an alternative rate. Such reset could adversely affect the Company’s current asset liability strategies. The establishment of alternative reference rates or implementation of any other potential changes relating to LIBOR phase-out may adversely affect the Company’s reserves, net investment income and cost of capital. The Company is continuing to evaluate the potential impact of the potential LIBOR transition and the establishment of an alternative rate, and the Company cannot predict what impact any such changes may have on the Company’s business, results of operations and financial condition.

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Risks Relating to the Insurance Industry

Difficult conditions in the global economy and capital markets generally could adversely affect our business and operating results.

Our business and results of operations are materially affected by conditions in the global capital markets and the economy generally. Stressed conditions, volatility and disruptions in global capital markets, particular markets, or financial asset classes can have an adverse effect on us, in part because we have a large investment portfolio and certain of our insurance liabilities are sensitive to changing market factors. Market factors, including interest rates, credit spreads, equity prices, real estate markets, consumer spending, business investment, government spending, the volatility and strength of the capital markets, deflation and inflation, all affect the business and economic environment and, ultimately, the amount and profitability of our business.

Disruptions in one market or asset class can also spread to other markets or asset classes. Upheavals in the financial markets can also affect our business through their effects on general levels of economic activity, employment and customer behavior. Financial markets have also been affected periodically by concerns over

U.S.fiscal policy. These issues could, on their own, or combined with the possible slowing of the global economy generally, have severe repercussions to the U.S. and global credit and financial markets, further exacerbate concerns over sovereign debt of other countries and disrupt economic activity in the U.S. and elsewhere.

General economic conditions could also adversely affect us in the form of consumer behavior and pressure investment results. Holders of some of our interest-sensitive life insurance and annuity products may engage in an elevated level of discretionary withdrawals of contractholder funds. Our contractholders may choose to defer paying insurance premium or stop paying insurance premiums altogether. Our investment results could be adversely affected as deteriorating financial and business conditions affect the issuers of the securities in our investment portfolio.

Losses from legal and regulatory actions may be material to our operating results or cash flows and may result in harm to our reputation.

We are involved in various legal actions in the ordinary course of business, the results of which we cannot predict with certainty. We are also subject to various regulatory actions and inquiries, such as information requests, market conduct examinations and books and record examinations from state and federal regulators and other authorities. A substantial legal liability or significant regulatory action against us, as well as regulatory inquiries or investigations, could harm our reputation, result in material fines or penalties, result in significant legal costs and otherwise have a material adverse effect on our business, financial condition and results of operations. Even if we ultimately prevail in the litigation, regulatory actions or investigation, our ability to retain our current contractholders and recruit and retain employees could be materially and adversely impacted. In addition, in some class action and other lawsuits, financial services companies have made material settlement payments. The Company may incur substantial defense costs, settlements or judgments in any such future claims or actions, which could adversely affect the Company’s business and results of operations.

We are subject to extensive regulation and potential further restrictive regulation may increase our operating costs.

As an insurance company, we are subject to extensive laws and regulations.

The extent of regulation varies, but generally the Company is governed by state statutes. These statutes delegate regulatory, supervisory and administrative authority to state insurance departments. This system of supervision and regulation covers, among other things, standards of minimum capital requirements and solvency, including risk-based capital measurements, restrictions on certain transactions, licensing status, reserving, payment of policy benefits, etc. State insurance regulators and the NAIC regularly re-examine existing laws and regulations applicable to insurance companies and their products. Changes in these laws and regulations, or in interpretations thereof, sometimes lead to additional expense for the insurer and, thus, could have a material adverse effect on our financial condition and results of operations.

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Regulatory authorities have relatively broad discretion to grant, renew or revoke licenses and approvals. If we do not have the requisite licenses and approvals or do not comply with applicable regulatory requirements, the insurance regulatory authorities could preclude or temporarily suspend us from carrying on some or all of our activities or impose substantial fines. Further, insurance regulatory authorities have relatively broad discretion to issue orders of supervision, which permit such authorities to supervise the business and operations of an insurance company.

Failure of the Company to maintain its licenses in each jurisdiction could have a material adverse effect on our results of operations or financial condition.

As an insurance company with separate accounts that are regulated as investment companies, we are also subject to laws and regulations administered and enforced by a number of different governmental authorities, each of which exercises a degree of interpretive latitude, including state insurance regulators, state securities administrators, state attorneys general, and federal agencies including the SEC, the FINRA and the U.S. Department of Justice. Failure to comply with these laws and regulations could result in material fines or other penalties, as well as unexpected costs in remedying any such failure. In addition, we are subject to the risk that compliance with any particular regulator’s or enforcement authority’s interpretation of a legal issue may not result in compliance with another’s interpretation of the same issue. Further, there is risk that any particular regulator’s or enforcement authority’s interpretation of a legal issue may change over time to our detriment, or that changes in the overall legal environment may, even absent any particular regulator’s or enforcement authority’s interpretation of a legal issue, result in material fines or penalties or increased costs, which could in turn negatively impact our financial condition, cash flow and results of operations.

Regulatory reforms, and the more stringent application of existing regulations, may make it more expensive for us to conduct our business and increase our capital requirements.

Over the last decade, the federal government enacted comprehensive regulatory reforms for financial services entities. As part of a larger effort to strengthen the regulation of the financial services market, certain reforms are applicable to the insurance industry, including the Federal Insurance Office (“FIO”) established within the Treasury Department.

As the state insurance regulatory framework has come under public scrutiny, members of Congress have discussed proposals to provide for federal chartering of insurance companies, and the FIO and Financial Stability Oversight Council were established. We can make no assurances regarding the potential impact of state or federal measures that may change the nature or scope of insurance and financial regulation. Regulatory reforms and legislative change or regulatory requirements imposed upon us in connection with the federal government’s regulatory reform of the financial services industry, and any more stringent enforcement of existing regulations by federal authorities, may make it more expensive for us to conduct our business.

The Company is subject to insurance guaranty fund laws, rules and regulations that could adversely affect the Company’s financial condition or results of operations.

Under insurance guaranty fund laws in most states, insurance companies doing business therein can be assessed up to prescribed limits for contractholder or policyholder losses incurred by insolvent companies. From time to time, companies may be asked to contribute amounts beyond prescribed limits. It is possible that the Company could be assessed with respect to product lines not offered by the Company. In addition, legislation may be introduced in various states with respect to guaranty fund assessment laws related to insurance products, including long term care insurance and other specialty products, that alters future premium tax offsets received in connection with guaranty fund assessments. The Company cannot predict the amount, nature or timing of any future assessments or legislation, any of which could have a material and adverse impact on the Company’s financial condition or results of operations.

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Reinsurance may be unavailable at current levels and prices.

Market conditions beyond our control impact the availability and cost of the reinsurance we secure to lessen our risk with respect to the contracts and policies we have issued. No assurances can be made that reinsurance will remain continuously available to us to the same extent and on the same terms and rates as is currently available. We review retention limits for continued appropriateness and they may be changed in the future.

Prolonged or severe adverse mortality or morbidity experience could result in increased reinsurance costs or, ultimately, reinsurers unwilling to offer coverage. If we were unable to renew or purchase reinsurance protection in amounts that we consider sufficient and at prices that we consider acceptable, we may have to accept an increase in risk exposure, seek other alternatives, or accept reduced profitability.

Reinsurance subjects us to the credit risk of our reinsurers and may not be adequate to protect us against losses arising from ceded insurance, which could have a material effect on our operating results.

The collectability of reinsurance recoverables is subject to uncertainty arising from a number of factors, including changes in market conditions, whether insured losses meet the qualifying conditions of the reinsurance contract and whether reinsurers, or their affiliates, have the financial capacity and willingness to make payments under the terms of a reinsurance treaty or contract. While we aim to avoid overexposure by entering into reinsurance agreements with varied counterparties, the liabilities for certain products, including the Contracts, are reinsured exclusively to one or a small group of reinsurers. Our inability to collect a material recovery from one or more reinsurers could have a material adverse effect on our operating results, financial condition and cash flows.

Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs or our ability to obtain credit on acceptable terms.

In periods of extreme volatility and disruption in the capital and credit markets, liquidity and credit capacity may be severely restricted. In such circumstances, our ability to obtain capital to fund operating expenses, financing costs, satisfy statutory capital requirements and meet liquidity needs may be limited. Our access to additional financing will depend on a variety of factors such as market conditions, the general availability of credit, the overall availability of credit to our industry, our credit ratings and credit capacity, as well as lenders’ perception of our long- or short-term financial prospects. Similarly, our access to funds may be impaired if regulatory authorities or rating agencies take negative actions against us. If a combination of these factors were to occur, our internal sources of liquidity may prove to be insufficient, and in such case, we may not be able to successfully obtain additional financing on favorable terms. Our results of operations, financial condition, cash flows and statutory capital position could be materially adversely affected by disruptions in the capital markets.

A downgrade or a potential downgrade in our financial strength or credit rating could result in a loss of business and materially affect our financial condition and results of operations.

Financial strength ratings are published by various Nationally Recognized Statistical Rating Organizations (“NRSRO”) and similar entities not formally recognized as NRSROs. They indicate the NRSROs’ opinion regarding an insurance company’s ability to meet contractholder obligations and can be important to maintaining public confidence in our products and our competitive position.

In view of the difficulties experienced by many financial institutions as a result of the financial crisis and ensuing global recession, including certain members in the insurance industry, NRSROs continue to implement changes to their internal models that have the effect of increasing or decreasing the amount of statutory capital we must hold in order to maintain our current ratings. Our ratings could be downgraded at any time and without notice by any NRSRO. In addition, these reforms may also increase our minimum capital requirements.

Downgrades in our financial strength ratings could have a material adverse effect on our financial condition and results of operations in many ways, including materially increasing the number or amount of policy surrenders and withdrawals by contractholders and adversely affecting our ability to obtain reinsurance at reasonable prices or at all.

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The occurrence of a catastrophe, including the continued threat of terrorism or military actions may have an adverse effect on the level of claim losses we incur, the value of our investment portfolio, our competitive position, liquidity, operating results and attractiveness of product offering.

Any catastrophic event, such as the continued threat of terrorism within the United States and abroad, or military and other actions, and heightened security measures in response to these types of threats, may cause significant volatility and losses in our investment portfolio from changes, and result in loss of life, disruptions to commerce and reduced economic activity. Some of the assets in our investment portfolio may be adversely affected by reduced economic activity caused by the continued threat of terrorism. Additionally, a terrorist act could have a material effect on renewal premium, profitability, competitiveness, liquidity, operating results and attractiveness of product offering.

The ongoing COVID-19 pandemic could adversely affect the Company’s business, including revenues, profitability, results of operations and/or cash flows, in a manner and to a degree that cannot be predicted but could be material.

The global COVID-19 pandemic has resulted in and is expected to continue to result in significant disruptions in economic activity and financial markets. COVID-19 has directly and indirectly adversely affected the Company and may continue to do so for an uncertain period of time. The cumulative effects of COVID-19 on the Company cannot be predicted at this time, but could include, without limitation:

•Reduced demand for the Company’s products due to reduced economic activity which could negatively impact the Company’s revenues,

•Reduced cash flows from the Company’s policyholders delaying premium payments,

•Increased claims, losses, litigation, and related expenses,

•Increased losses due to legislative, regulatory and judicial actions in response to COVID-19, including, but not limited to, actions prohibiting the Company from cancelling insurance policies in accordance with such policies’ terms, requiring the Company to cover losses when policies did not provide coverage or excluded coverage, ordering the Company to provide premium refunds, granting extended grace periods for payment of premiums, and providing for extended periods of time to pay past due premiums,

•An increase in the demand and frequency of reporting by regulators that could place stress on the Company’s ability to accurately and timely meet those and existing demands, and a delay or denial in regulatory rate approvals could contribute to financial stress,

•A negative impact on the Company’s ability to timely and properly pay claims and establish reserves due to uncertainty around claims patterns, including impediments to adjusting claims in the field,

•Volatility and declines in financial markets which have reduced, and could continue to reduce, the fair market value of, or result in the impairment of, certain invested assets held by the Company,

•An increase in loss costs and, as such, the need to strengthen reserves for losses and loss adjustment expenses due to higher than anticipated inflation as a result of recent actions taken by the federal government and the Federal Reserve,

•Decline in interest rates which could reduce future investment results,

•Erosion of capital and an increase in the cost of reinsurance as well as an increase in counterparty credit risk,

•Decreased access to capital, if needed, and the cost of external capital could be elevated,

•Disruptions in the Company’s operations due to difficulties experienced by its partners and outsourced providers that may, among other items, adversely impact its ability to manage claims,

•Increased costs of operations due to the remote working environments of the Company’s employees, and

•Increased vulnerability to cyberthreats or other disruption in its operations while most of its workforce is continuing to work remotely.

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Climate change may adversely affect our results of operations and financial condition.

Global climate change could have an impact on our investment portfolio resulting in realized or unrealized losses which could have a material financial impact on the Company. Additionally, there could be social and/or regulatory impacts in response to climate change which could have a material financial impact on the Company.

Changes in accounting standards issued by standard-setting bodies may adversely affect our results of operations and financial condition.

Our financial statements are subject to the application of statutory accounting principles, which are periodically revised, interpreted and/or expanded. Accordingly, we may be required to adopt new guidance or interpretations, or could be subject to existing guidance as we enter into new transactions, which may have a material effect on our results of operations and financial condition that is either unexpected or has a greater impact than expected.

Any changes in the method of calculating reserves for our life insurance and annuity products under statutory accounting principles may result in increased or decreased reserve requirements. The NAIC has announced focused industry inquiries on certain matters that could have an impact on the Company’s financial condition and results of operations. Such inquiries concern, for example, insurer use of captive reinsurance companies, variable annuity reserves and capital treatment, reinsurance, cybersecurity practices and risk-based capital calculations. In addition, the NAIC continues to consider various initiatives to change and modernize its financial and solvency requirements and regulations. It has adopted principles-based reserving methodologies for life insurance and annuity reserves, but additional formulas and/or guidance relevant to the new standard are being developed. The NAIC is also considering changes to accounting regulations, governance practices of insurers and other items. The Company cannot currently estimate what impact these more focused inquiries or proposed changes, if they occur, will have on reserve and capital requirements, financial condition or results of operations.

For a description of changes in accounting standards that are currently pending and, if known, our estimates of their expected impact, see Note 2 to the financial statements.

The Company depends on the performance of its third-party service providers, and their failure to perform in a satisfactory manner could adversely affect the Company’s business.

A number of elements of the Company’s operations are managed on an outsourced basis, in particular with two counterparties. These arrangements create performance risks for the Company’s business and, to a lesser extent, create the risk that the Company’s operating expenses will increase. Failure in or poor performance by any of the aforementioned third-party service providers, including, for example, if the third party fails to meet contractual requirements, fails to comply with applicable laws and regulations, suffers a cyber-attack or other security breach, fails to provide the Company or its policyholders with timely and accurate information or fails to maintain adequate internal controls, could have a material adverse effect on the Company’s business, results of operations and financial condition. If the Company elects to replace any of these third-party service providers due to such failures or poor performance, the Company may incur costs in connection with finding, retaining and operationalizing suitable replacement providers.

With respect to third-party service providers who perform policy administration services, failures in, or poor performance by, these third-party administrators could result in an increase in customer complaints and regulatory intervention. Poor performance by third-party administrators may also have a negative impact on the Company’s wholesaler, agent and distribution partner relationships. If any of these third-party administrators or their employees are found to have made material misrepresentations to the Insurance Subsidiaries’ policyholders and customers, violated applicable insurance, privacy or other laws and regulations or otherwise engaged in misconduct, the Insurance Subsidiaries could be held liable for their actions, which could adversely affect the Company’s reputation and business prospects, may lead to regulatory sanctions or litigation and could result in financial harm. The precautions taken to prevent and detect this activity may not be effective in all cases. Although

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the Insurance Subsidiaries employ controls and procedures designed to monitor vendors and to prevent the Company’s or them from taking excessive or inappropriate risks, employees of the Company’s vendors may take such risks regardless of such controls and procedures. Any such failures or poor performance by the Company’s third-party service providers could adversely affect the Company’s business, operating results and financial condition.

Controls and disaster recovery plans surrounding the Company’s information technology (“IT”) could fail or security could be compromised, which could damage the Company’s business and adversely affect the Company’s financial condition and results of operations.

The Company’s business is highly dependent upon the effective operation of the Company’s IT and that of third-party providers. The Company relies on IT throughout its business for a variety of functions, including processing claims, transactions and applications, providing information to policyholders and distributors, performing actuarial analyses and maintaining financial records. Despite the implementation of security policies, procedures, automation and backup plans designed to prevent or limit the effect of any infiltration, failure or disruption, the Company’s IT may be vulnerable to physical or electronic intrusions, computer viruses or other attacks, programming errors, disruptions or breaches as a result of natural disasters, man-made disasters, human error, criminal activity, or other events beyond the Company’s control. The failure of controls and/or disaster recovery plans surrounding the Company’s IT for any reason could cause significant interruptions to the Company’s operations, which could result in an adverse effect on the Company’s business, financial condition or results of operations. The Company plans to continue to make significant investments in IT to support the growth of its business.

The Company also retains confidential and proprietary information on its computer systems and those of its third-party providers. The Company and its third-party providers rely on sophisticated technologies to maintain the security of such information. Such computer systems may be subject to computer viruses or other malicious codes, unauthorized access, cyber-attacks or other computer-related penetrations. While, to date, the Company is not aware of having experienced a material data breach, administrative, physical and technical controls and other preventive actions taken to reduce the risk of cyber-incidents and protect the Company’s data and technology may be insufficient to prevent physical and electronic break-ins, cyber-attacks or other security breaches. In some cases, such physical and electronic break-ins, cyber-attacks or other security breaches may not be immediately detected. This may impede or interrupt the Company’s business operations, could result in regulatory fines and enforcement, class action lawsuits or reputational harm, and could adversely affect the Company’s business, financial condition and results of operations. In addition, the availability and cost of insurance for operational and other risks relating to the Company’s business and systems may change and any such change may affect the Company’s results of operations.

In the event of a disaster such as a natural catastrophe, epidemic, industrial accident, blackout, computer virus, terrorist attack, cyberattack or war, unanticipated problems with the Company’s disaster recovery systems could have a material adverse impact on the Company’s ability to conduct business and on the Company’s results of operations and financial position, particularly if those problems affect the Company’s computer-based data processing, transmission, storage and retrieval systems and destroy valuable data. In addition, in the event that a significant number of the Company’s managers, or employees were unavailable following a disaster, the Company’s ability to effectively conduct business could be severely compromised. These interruptions also may interfere with the Company’s suppliers’ ability to provide goods and services and the Company’s employees’ ability to perform their job responsibilities.

Any failure to protect the confidentiality of client information could adversely affect the Company’s reputation and have a material adverse effect on the Company’s business, financial condition and results of operations.

Pursuant to U.S. federal and state laws, and laws of other jurisdictions in which the Company operates, various government agencies have established rules protecting the privacy and security of personal information,

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including personally identifiable policyholder information. In addition, most U.S. states and a number of jurisdictions outside the United States, have enacted laws, which vary significantly from jurisdiction to jurisdiction, to safeguard the privacy and security of personal information, including personally identifiable policyholder information. Further, the Gramm-Leach-Bliley Act of 1999, or the (“GLB Act”), imposes privacy requirements on financial institutions, including obligations to protect and safeguard consumers’ nonpublic personal information and records, and limits the ability to share and reuse such information. Additionally, The NAIC has adopted the Insurance Data Security Model Law which established the standards for data security and investigation and notification of a breach of data security for insurance companies, and an increasing number of states require that affected persons be notified if a security breach results in the disclosure of their personally identifiable information. Any compromise of the security of our computer systems that results in the inappropriate disclosure of personally identifiable customer information could damage our reputation in the marketplace, subject us to significant civil and criminal liability and require us to incur significant technical, legal and other expenses. Many regulators have indicated an intention to take more aggressive enforcement actions regarding cybersecurity and data privacy matters, and private litigation resulting from such matters is increasing and resulting in progressively larger judgments and settlements.

Many of the Company’s employees have access to, and routinely process, personal information of clients through a variety of media, including IT systems. The Company relies on various internal processes and controls to protect the confidentiality of client information that is accessible to, or in the possession of, the Company and its employees. It is possible that an employee could, intentionally or unintentionally, disclose or misappropriate confidential client information, including personally identifiable policyholder information, or the Company’s data could be the subject of a cybersecurity attack. If the Company fails to maintain adequate internal controls or if the Company’s employees fail to comply with the Company’s policies and procedures, misappropriation or intentional or unintentional inappropriate disclosure or misuse of client information, including personally identifiable policyholder information, could occur. Such internal control inadequacies or non-compliance could materially damage the Company’s reputation or lead to civil or criminal penalties, which, in turn, could have a material adverse effect on the Company’s business, financial condition and results of operations. Further, the Company’s third-party service providers, including third parties to whom the Company outsources certain of its functions, are also subject to the risks outlined above, any one of which could result in damage to the company’s reputation, or the Company incurring substantial costs or other negative consequences to the Company. If the Company or any of the Company’s third-party service providers fail to protect the confidentiality of client information, it could have a material adverse effect on the Company’s business, financial condition and results of operations.

The technology the Company licenses may subject it to claims of infringement or invalidity from third parties.

The Company’s reliance on technology subjects it to the risk that other parties may assert, rightly or wrongly, that its intellectual property rights are invalid or violate the rights of those parties, as well as the risk that the Company’s intellectual property rights will be infringed upon by third parties. In general, defending intellectual property rights in litigation is expensive. The Company’s involvement in litigation of this type would likely have a material and adverse effect on its business and results of operation. In addition, any outcome that invalidates its intellectual property rights or otherwise diminishes the competitive advantages obtained, at least in part, through the use of those rights could have a material and adverse effect on the Company’s overall success. The magnitude of this risk to the Company’s business generally rises if and as it become more successful in employing and relying on the technology. Any such claims would be complex and costly, and adverse outcomes could undermine the competitive advantages that the Company seeks to gain.

Our risk management policies and procedures may leave us exposed to unidentified or unanticipated risk, which could negatively affect our business.

We have devoted significant resources to develop and periodically update our risk management policies and procedures to reflect ongoing review of our risks and expect to continue to do so in the future. Nonetheless, our policies and procedures may not be comprehensive and may not identify every risk to which we are exposed.

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Many of our methods for managing risk and exposures are based upon the use of observed historical market behavior or statistics based on historical models. As a result, these methods may not fully predict future exposures, which can be significantly greater than our historical measures indicate. Other risk management methods depend upon the evaluation of information regarding markets, clients, catastrophe occurrence or other matters that is publicly available or otherwise accessible to us. This information may not always be accurate, complete, up-to-date or properly evaluated. In addition, more extensive and perhaps different risk management policies and procedures might have to be implemented under pending regulations. Any such unforeseen risk, as well as the implementation of any additional risk management policies and procedures may result in material costs to the Company, which could materially adversely affect the Company’s financial condition, cash flow and results of operations.

The effectiveness of our actuarial and other financial models may adversely affect our financial results, capitalization and financial condition.

Actuarial and other financial models are used primarily to determine reserve levels for our in-force block and to provide information to key internal stakeholders for planning, asset / liability management, and risk / stress testing analysis purposes. The models are subject to extensive internal controls which promote repeatability and sustainability, and are also subject to continual review regarding effectiveness, logic, assumptions and underlying product mechanics and refinements may be implemented based on these reviews. Refinements are subject to a rigorous change management process and are agreed upon with key internal stakeholders prior to implementation. While models are continually improving as a result of these refinements, there are still inherent limitations. First, no assurances can be given that all necessary refinements will be identified and/or implemented in our actuarial models. Also, due to the nature of the underlying risks and the uncertainty associated with prospective modeling techniques and the application of such techniques, these models may not accurately capture the evolution of the in-force block, as we cannot determine precisely the actual experience, policyholder behavior and investment income. Variations in any of the foregoing from estimates in our models may result in the need to post additional reserves, which could have a material adverse effect on the Company’s financial condition including by adversely affecting the Company’s capital adequacy ratios utilized by NRSROs to assign credit ratings.

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~~Item 11(a).~~ Description of Business

Lincoln Benefit Life Company (referred to in this document as “we,” “Lincoln Benefit,” “our,” “us” or the “Company”) was incorporated under the laws of the State of Nebraska in 1938. Lincoln Benefit is a wholly- owned subsidiary of LBL HoldCo II, Inc., a Delaware corporation, which is a wholly-owned subsidiary of LBL HoldCo, Inc. (“HoldCo Parent”). HoldCo Parent is a wholly-owned subsidiary of GILICO. Prior to December 31, 2019, HoldCo Parent was a wholly-owned subsidiary of RL LP and RL (Parallel) Partnership.

Prior to July 18, 2013, we sold interest-sensitive, traditional and variable life insurance, and fixed annuities including deferred and immediate, through independent master brokerage agencies and the Allstate exclusive agency channel. In July 2013, we ceased soliciting and selling new policies through our independent agent channel. In 2017, we ceased soliciting and selling new policies through the Allstate exclusive agency channel.

In 2015, the administration of our retained deferred annuity and life business was outsourced to unaffiliated third-party service providers, SE2, LLC and Alliance–One Services, Inc. Everlake Life Insurance Company ("Everlake"), formerly known as Allstate Life Insurance Company (“ALIC”), continues to reinsure and administer business sold through the Allstate exclusive agency channel and certain life, immediate and payout annuity contracts. LifeCare Assurance Company administers the Company’s long-term care business.

Lincoln Benefit’s variable annuity business is reinsured by Everlake under an existing reinsurance agreement between Lincoln Benefit and Everlake, formerly known as ALIC. In 2006, ALIC disposed of substantially all of its variable annuity business through reinsurance agreements with The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. The Company was not a direct party to this agreement and its reinsurance agreement with Everlake remains unchanged.

In our reports, we occasionally refer to statutory financial information. All domestic U.S. insurance companies are required to prepare statutory-basis financial statements. As a result, industry data is available that enables comparisons between insurance companies, including competitors that are not subject to the requirement to prepare financial statements in conformity with accounting principles generally accepted in the United States of America. We frequently use industry publications containing statutory financial information to assess our competitive position.

Lincoln Benefit is subject to extensive regulation, primarily at the state level. The method, extent and substance of such regulation varies by state but generally has its source in statutes that establish standards and requirements for conducting the business of insurance and that delegate regulatory authority to a state agency. These rules have a substantial effect on our business and relate to a wide variety of matters, including insurer solvency, reserve adequacy, insurance company licensing and examination, agent licensing, policy forms, rate setting, the nature and amount of investments, claims practices, participation in guaranty funds, transactions with affiliates, the payment of dividends, underwriting standards, statutory accounting methods, trade practices and corporate governance.

~~Item 11(b).~~ Description of Property

Lincoln Benefit occupies leased office space in Lincoln, Nebraska and Rosemont, Illinois.

~~Item 11(c).~~ Legal Proceedings

Lincoln Benefit is engaged in routine lawsuits, which, in management’s judgment, are not of material importance to its total assets or business prospects.

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~~Item 11(e)~~ Financial Statements and Notes to Financial Statements Lincoln Benefit Life Company

(A Wholly-Owned subsidiary of LBL HoldCo II, Inc.) Index

December 31, 2021

			Page(s)
REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS			XX36
STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL STOCK AND SURPLUS			3140
STATUTORY STATEMENTS OF OPERATIONS			3241
STATUTORY STATEMENTS OF CHANGES IN CAPITAL STOCK AND SURPLUS			3342
STATUTORY STATEMENTS OF CASH FLOWS			3443
NOTES TO STATUTORY STATEMENTS			3544

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Lincoln Benefit Life Company

(A Wholly-Owned Subsidiary of LBL HoldCo II, Inc.)

Independent Auditors’ Reports and

Statutory Financial Statements

December 31, 2021 and 2020

Report of Independent Auditors

The Board of Directors

Lincoln Benefit Life Company

Opinion

We have audited the statutory-basis financial statements of Lincoln Benefit Life Company (the Company), which comprise the balance sheets as of December 31, 2021 and 2020, and the related statements of operations, changes in capital stock and surplus and cash flows for the years then ended, and the related notes to the financial statements (collectively referred to as the “financial statements”).

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended, on the basis of accounting described in Note 1.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company at December 31, 2021 and 2020, or the results of its operations or its cash flows for the years then ended.

Basis for Opinion

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

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 1 to the financial statements, the Company prepared these financial statements using accounting practices prescribed or permitted by the Nebraska Department of Insurance, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between these statutory accounting practices described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material and pervasive.

Responsibilities of Management for the Financial Statements

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

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

A member firm of Ernst & Young Global Limited

Auditor’s Responsibilities for the Audit of the Financial Statements

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

In performing an audit in accordance with GAAS, we:

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

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

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

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

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

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

/s/ERNST&YOUNG

March 31, 2022

A member firm of Ernst & Young Global Limited

INDEPENDENT AUDITORS’ REPORT

To the Shareholders and Board of Directors of

Lincoln Benefit Life Company

Rosemont, Illinois

We have audited the accompanying statutory financial statements of Lincoln Benefit Life Company (the "Company"), a wholly-owned subsidiary of LBL HoldCo II, Inc., which comprise the statutory statement of admitted assets, liabilities and capital stock and surplus as of December 31, 2019, and the related statutory statements of operations, changes in capital stock and surplus, and cash flows for the year ended December 31, 2019, and the related notes to the statutory financial statements (collectively referred to as the "statutory financial statements").

Management's Responsibility for the Statutory Financial Statements

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

Auditors' Responsibility

Our responsibility is to express an opinion on these statutory financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statutory financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statutory financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the statutory financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the statutory financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the statutory financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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

As described in Note 1 to the statutory financial statements, the statutory financial statements are prepared by Lincoln Benefit Life Company using the accounting practices prescribed or permitted by the Insurance Department of the State of Nebraska, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the Insurance Department of the State of Nebraska.

The effects on the statutory financial statements of the variances between the statutory basis of accounting described in Note 1 to the statutory financial statements and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

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

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America paragraph, the statutory financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of Lincoln Benefit Life Company as of December 31, 2019, or the results of its operations or its cash flows for the year ended December 31, 2019.

Opinion on Statutory Basis of Accounting

In our opinion, the statutory financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities and capital and surplus of Lincoln Benefit Life Company as of December 31, 2019, and the results of its operations and its cash flows for the year ended December 31, 2019 in accordance with accounting practices prescribed or permitted by the Insurance Department of the State of Nebraska as described in Note 1 to the statutory financial statements.

/s/ DELOITTE & TOUCHE LLP

Chicago, Illinois

March 30, 2020


LINCOLN BENEFIT LIFE COMPANY STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES, AND CAPITAL STOCK AND SURPLUS DECEMBER 31, 2021 AND 2020 ($’S IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

	December 31, 2021		December 31, 2020
Admitted Assets
Bonds	$	—8,068,303	$	8,074,319
Preferred stocks	—305,949		122,120
Common stocks	—60,918		46,472
Mortgage loans	—840,699		721,238
Contract loans	—34,539		35,744
Other investments	—282,075		194,742
Receivables for securities	—2,554		19
Cash, cash equivalents and short-term investments	—372,907		562,782
Total cash and invested assets	—9,967,944		9,757,436
Due and accrued investment income	—74,243		72,823
Current income tax recoverable	—40,565		13,291
Net deferred tax asset	—33,495		33,165
Deferred premium and other assets, net	—135,745		83,371
Separate account assets	—1,815,358		1,671,786
Total Admitted Assets	$	—12,067,350	$	11,631,872
Liabilities, Capital Stock and Surplus
Reserves for policy benefits	—4,878,228		5,278,258
Reinsurance payable	—16,591		5,847
Interest maintenance reserve	—141,196		76,439
Asset valuation reserve	—85,076		62,612
Funds held under coinsurance	—4,327,204		4,064,012
Other liabilities	—128,987		56,635
Separate account liabilities	—		1,671,786
Repurchase liability	237,887		—
Total Liabilities	$	—	$	11,215,589
Separate account liabilities	1,815,358		1,671,786
Total Liabilities	$	11,630,527	$	11,215,589
Capital Stock and Surplus
Common capital stock, $100 par value,
30,000 shares authorized and 25,000 shares outstanding	—2,500		2,500
Gross paid in and contributed surplus	—320,739		255,739
Unassigned funds	—113,584		158,044
Total Capital Stock and Surplus	$	—436,823	$	416,283
Total Liabilities, Capital Stock and Surplus	$	—12,067,350	$	11,631,872

See Notes to the Statutory Financial Statements

3140


LINCOLN BENEFIT LIFE COMPANY STATUTORY STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019 ($'S IN THOUSANDS)

	2021		2020		2019
Revenue
Premiums	$	—(156,446)	$	277,662	$	(913,357)
Net investment income	—377,490		425,548		382,333
Commissions and expense allowance	—56,155		74,255		84,423
Reserve adjustments on reinsurance ceded	—(87,188)		(77,318)		(686,158)
Other income	—2,768		7,493		34,628
Total revenue	—192,779		707,640		(1,098,131)
Benefits and expenses
Benefit payments to policyholders and beneficiaries	$	—378,774	$	~~414~~428,~~931~~029	$	389,734
Net change to policy benefit reserves	—(401,180)		(5,119)		(1,707,830)
Net transfers from separate accounts	—(75,251)		(45,228)		(63,167)
Commissions and operating expenses	—262,769		~~320~~307,~~328~~230		270,576
Total benefits and expenses	—165,112		684,912		(1,110,687)
Gain from operations before dividends and taxes	—27,667		22,728		12,556
Policyholder dividends	—28		30		31
Gain from operations before taxes	—27,639		22,698		12,525
Income tax expense (benefit)	—		(24,822)		—
Income tax benefit	(15,223)		(24,822)		—
Net gain from operations	—42,862		47,520		12,525
Net realized capital gains (losses)	—13,657		(2,301)		21,624
Net income	$	—56,519	$	45,219	$	34,149

See Notes to the Statutory Financial Statements

3241


LINCOLN BENEFIT LIFE COMPANY STATUTORY STATEMENTS OF CHANGES IN CAPITAL STOCK AND SURPLUS FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019 ($'S IN THOUSANDS)

				Additional				Total
				Paid-In		Unassigned		Capital Stock
	Common Capital Stock			Capital		Funds		and Surplus
Balance, December 31, 2018	25,000	$	2,500	$	171,003	$	206,427	$	379,930
Change in paid-in capital	—	—		25,776		—		25,776
Net income	—	—		—		34,149		34,149
Change in net unrealized capital gains (losses)	—	—		—		(45,874)		(45,874)
Change in net deferred income tax	—	—		—		(5,802)		(5,802)
Change in nonadmitted assets	—	—		—		19,704		19,704
Dividends to stockholder	—	—		—		(40,000)		(40,000)
Change in unauthorized reinsurance	—	—		—		(4,606)		(4,606)
Change in asset valuation reserve	—	—		—		5,397		5,397
Deferral of ceding commission	—	—		—		(16,064)		(16,064)
Balance, December 31, 2019	25,000	$	2,500	$	196,779	$	153,331	$	352,610
Change in paid-in capital	—	—		58,960		—		58,960
Net income	—	—		—		45,219		45,219
Change in net unrealized capital gains (losses)	—	—		—		(71,678)		(71,678)
Change in net deferred income tax	—	—		—		27,044		27,044
Change in nonadmitted assets	—	—		—		(35,296)		(35,296)
Change in unauthorized reinsurance	—	—		—		1,077		1,077
Change in asset valuation reserve	—	—		—		(10,319)		(10,319)
Deferral of ceding commission	—	—		—		48,666		48,666
Balance, December 31, 2020	25,000	$	2,500	$	255,739	$	158,044	$	416,283
Change in paid-in capital	—	—		—65,000		—		—65,000
Net income	—	—		—		—56,519		—56,519
Change in net unrealized capital gains (losses)	—	—		—		—(60,311)		—(60,311)
Change in net deferred income tax	—	—		—		—12,432		—12,432
Change in nonadmitted assets	—	—		—		—(19,805)		—(19,805)
Change in liability for reinsurance in unauthorized and certified companies	—	—		—		—3,530		—3,530
Change in asset valuation reserve	—	—		—		—		—
Change in reserve on account of change in valuation basis, (increase) or decrease	—	—		—		5,766		5,766
Deferral of ceding commission	—	—		—		—		—
Change in asset valuation reserve	—	—		—		(22,464)		(22,464)
Balance, December 31, 2021	—	$	—	$	—	$	—	$	—
Deferral of ceding commission	—	—		—		(20,128)		(20,128)
Balance, December 31, 2021	25,000	$	2,500	$	320,739	$	113,584	$	436,823

See Notes to the Statutory Financial Statements

3342


LINCOLN BENEFIT LIFE COMPANY STATUTORY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019 ($'S IN THOUSANDS)

	2021		2020		2019
Cash Flows from Operating Activities:
Cash flows from operating activities:
Premiums and other income received	$	—119,031	$	686,775	$	35,727
Investment income received	—349,304		316,851		430,113
Benefit payments to policyholders and beneficiaries, including net transfers to separate accounts	—(394,387)		(470,295)		(706,381)
Commissions, expenses and taxes paid	—(292,818)		(249,078)		(200,532)
Net Cash (Used in) Provided by Operating Activities	—(218,870)		284,253		(441,073)
Cash Flows from Investing Activities:
Cash flows from investing activities:
Proceeds from investments sold, matured, repaid or received
Bonds	$	—2,692,020	$	3,263,486	$	1,176,624
Mortgage loans	—230,722		124,885		277,171
Other investments	—		23,217		48,813
Repurchase agreement	237,925		—		—
Subtotal Proceeds from Investments	—		3,411,588		1,502,608
Other investments	50,826		23,217		48,813
Cost of Investments Acquired:
Subtotal proceeds from investments	3,211,493		3,411,588		1,502,608
Bonds	—		4,859,995		936,205
Cost of investments acquired:
Stocks	—		227,274		51,519
Bonds	2,556,186		4,859,995		936,205
Mortgage loans	—		124,568		141,078
Stocks	229,605		227,274		51,519
Other investments	—		152,638		20,452
Mortgage loans	351,123		124,568		141,078
Subtotal Investments Acquired	—		5,364,475		1,149,254
Other investments	97,126		152,638		20,452
Net Increase (Decrease) in Contract Loans	—		2,170		(7,694)
Subtotal investments acquired	3,234,040		5,364,475		1,149,254
Net Cash (Used in) Provided by Investing Activities	—		(1,955,057)		361,048
Net Increase (Decrease) in Contract Loans	(910)		2,170		(7,694)
Cash Flows from Financing and Miscellaneous Sources:
Net Cash (Used in) Provided by Investing Activities	(21,637)		(1,955,057)		361,048
Net inflows on deposit-type contracts	$	—	$	904,797	$	80,479
Cash flows from financing and miscellaneous sources:
Net inflows on deposit-type contracts	$	12,882	$	904,797	$	80,479
Dividend to stockholders	—		—		(40,000)
Funds held under coinsurance	—62,766		965,642		67,847
Other cash provided	—		112,337		11,269
Other cash provided (applied)	(25,017)		112,337		11,269
Net Cash Provided by Financing and Miscellaneous Sources	—50,631		1,982,776		119,595
Net Increase in Cash and Short-term Investments	—(189,876)		311,972		39,570
Cash, Cash Equivalents and Short-term Investments, Beginning of Year	$	—	$	250,810	$	211,240
Cash, Cash Equivalents and Short-term Investments, Beginning of year	$	562,783	$	250,811	$	211,240
Cash, Cash Equivalents and Short-term Investments, End of Year	$	—372,907	$	562,~~782~~783	$	250,810
Supplemental Disclosures of Cash Flow Information for Non-cash Transactions:
Supplemental disclosures of cash flow information for non-cash transactions:
Change of intercompany note payable and receivable	$	—36,325	$	252,675	$	(55,500)
Bonds, policy loans and other non-cash assets remitted for reinsurance premium settlement	$200,426	—	$321,394	~~321,394~~	$1,444,046	~~1,444,046~~
Recapture of modified coinsurance	$	—	$	—	$	539,191
IMR cession	5,000		81,743		33,277
IMR cession	$	—	$	81,744	$	33,277
Recapture of modified coinsurance	—		—		539,191
Surplus Note Commitment	35,000		—		—
Assets contributed from parent	15,000		—		—
Capital Contribution Payable	50,162		—		—

See Notes to the Statutory Financial Statements

3443

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

GENERAL

Lincoln Benefit Life Company (the “Company” or “Lincoln Benefit”) is a stock insurance company domiciled in the State of Nebraska. It is a wholly-owned subsidiary of LBL HoldCo II, Inc. (“HoldCo”), which in turn is a wholly-owned subsidiary of LBL HoldCo, Inc. (“Holdings”).

On December 31, 2019, Guaranty Income Life Insurance Company (“GILICO”), an Iowa-domiciled insurance company, completed the acquisition (the “Transaction”) of Holdings and its subsidiaries (including the Company). Prior to December 31, 2019, Holdings was a wholly-owned subsidiary of RL LP (formerly Resolution Life LP) and RL Parallel LP (formerly Resolution Life (Parallel) LP).

Lancaster Re Captive Insurance Company (“Lancaster Re”), a Nebraska domiciled captive insurance company, became a wholly-owned subsidiary of Lincoln Benefit on April 1, 2014.

The Company is authorized to sell life insurance and retirement products in all states ~~except New York,~~ as well as, in the District of Columbia, the U.S. Virgin Islands and Guam with the exception of New York. Prior to July 18, 2013, the Company sold interest-sensitive, traditional and variable life insurance products through both exclusive agencies (“Allstate Sales channel”) and independent master brokerage agencies. Effective July 17, 2013, sales through the independent master brokerage agencies ceased. Sales through the Allstate Sales channel ceased in 2017.

Allstate Life Insurance Company (“ALIC”), now known as Everlake Life Insurance Company ("Everlake"), continues to administer and reinsure all life insurance business written by Lincoln Benefit through the Allstate Sales channel, all immediate annuities written by Lincoln Benefit prior to April 1, 2014, certain term life policies written by Lincoln Benefit, and Lincoln Benefit’s variable annuity business.

BASIS OF PRESENTATION

The accompanying statutory financial statements of the Company are presented on the basis of accounting principles prescribed or permitted by the Nebraska Department of Insurance (“NE DOI” or the “Department”). The NE DOI requires insurance companies domiciled in the State of Nebraska to prepare their statutory financial statements in accordance with the National Association of Insurance Commissioners (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”). Prescribed statutory accounting practices include a variety of publications of the NAIC, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. There are no deviations from NAIC SAP in the Company’s statutory financial statements as presented for December 31, 2021, 2020 or 2019.

DIFFERENCES BETWEEN NAIC SAP AND U.S. GAAP

Accounting principles and procedures of the NAIC as prescribed or permitted by the Department comprise a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America (“U.S. GAAP”). NAIC SAP differs from U.S. GAAP in several respects, which causes differences in reported assets, liabilities, stockholder’s equity (statutory capital and surplus), net income, and cash flows. The principal differences between NAIC SAP and U.S. GAAP include:

•Investments in bonds are generally carried at amortized cost; under U.S. GAAP, investments in bonds, other than those classified as held-to-maturity, are carried at fair value. For bonds held as available-for-sale, changes in fair value are recorded in accumulated other comprehensive income.

•The changes in the unrealized gains or losses on certain investments are recorded as increases or decreases in statutory surplus; under U.S. GAAP, such unrealized gains and losses are recorded as a component of comprehensive income.

•Investments in insurance subsidiaries are generally carried on a statutory equity basis with equity in the earnings of subsidiaries reflected in unassigned surplus; under U.S. GAAP, subsidiaries are consolidated and results of operations are included in net income.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

•Minority ownership interests in partnerships are generally carried on an equity method basis with changes in equity reflected in unassigned surplus; under U.S. GAAP, minority ownership interests in partnerships are subject to lower thresholds and are generally carried at cost. Larger ownership interests are carried on an equity method basis with changes in equity reflected in net income. Controlling interests may be considered affiliated and require consolidation.

•Derivative instruments used as economic hedges are recorded at fair value and the changes in fair value are recorded as unrealized gains and losses in statutory surplus. Under U.S. GAAP, these derivatives are recorded at fair value and changes in fair value are recorded in net income.

•Embedded derivatives are carried consistently with the host instruments. Under U.S. GAAP, the embedded derivatives that are not clearly and closely related to the host are generally bifurcated and accounted for like any other freestanding derivative.

•Interest Maintenance Reserve (“IMR”) represents the deferral of interest-related realized gains and losses, net of tax, on primarily fixed maturity investments which are amortized into income over the remaining life of the investment sold. No such reserve is required under U.S. GAAP.

•Asset Valuation Reserve (“AVR”) represents a contingency reserve for credit related risk on most invested assets of the Company and is charged to statutory surplus. No such reserve is required under U.S. GAAP, but mortgage loans are recorded net of allowances for estimated uncollectible amounts.

•Certain assets, principally prepaid expenses, agents’ balances, and certain deferred tax assets have been designated as nonadmitted assets and excluded from assets by a charge to statutory surplus. Under U.S. GAAP, such amounts are carried with an appropriate valuation allowance, when necessary.

•Intangible assets such as present value of future profits and other adjustments, resulting from the Company’s acquisitions, are not recorded for statutory purposes. Intangible assets such as goodwill are recorded for statutory purposes with limitations and amortized. Under U.S. GAAP, the present value of future profits is recorded and amortized and goodwill is recorded at cost and tested for impairment using a fair value methodology at least annually.

•A provision is established for unsecured reinsurance recoverable balances from unauthorized reinsurers. The change in this provision is credited or charged to unassigned statutory surplus. Under U.S. GAAP, a provision is established for uncollectible reinsurance balances with any changes to this provision reflected in earnings for the period.

•Aggregate reserves for a majority of life insurance and fixed annuity contracts are based on statutory mortality and interest requirements without consideration for anticipated withdrawals. Variable annuity contracts are reserved for using a prescribed principles-based approach. Under U.S. GAAP reserves for term life and fixed annuities are based on the present value of future benefits less the present value of future net premiums based on mortality, morbidity and other assumptions, which were appropriate at the time the policies were issued or acquired. Reserves for universal life and deferred annuities are recognized by establishing a liability equal to the current account value of the policyholders’ contracts, with an additional reserve for certain guaranteed benefits.

•Reserves are reported net of ceded reinsurance; under U.S. GAAP, reserves relating to business in which the ceding company is not legally relieved of its liability are reported gross with an offsetting reinsurance receivable.

•Certain annuity contracts which do not pass through all investment gains to the contract holders are maintained in the separate accounts, whereas U.S. GAAP reports these contracts in the general account of the Company.

•Policy acquisition costs are expensed as incurred; under U.S. GAAP, these costs are related to the successful acquisition of new and renewal insurance policies and investment contracts which are deferred and recognized over either the expected premium paying period or the expected gross profits.

•The cumulative effect of changes in accounting principles are recorded as increases or decreases in statutory surplus; under U.S. GAAP, cumulative effects of changes in accounting principles generally affect equity and net income.

•Premiums of universal life and deferred annuity contracts including policy charges are recorded as revenue when due. Under U.S. GAAP, policy charges are recorded as revenue when due, and the premiums are recorded as policyholder account balances.

•Federal income taxes are provided for in the Company’s estimated current and deferred taxes. Income taxes incurred include current year estimates of Federal income taxes due or refundable, based on tax returns for the current year and all prior years to the extent not previously provided. Deferred taxes are provided for differences between the statutory financial statement basis and the tax basis of assets and liabilities. Changes in deferred tax assets ("DTAs") and deferred tax liabilities ("DTLs") are recognized as a separate component of gains and losses in statutory unassigned surplus, while under U.S. GAAP, these changes are included in income tax expense or benefit. Under U.S. GAAP and NAIC SAP, gross deferred tax assets are

3645

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

to the extent not previously provided. Deferred taxes are provided for differences between the statutory financial statement basis and the tax basis of assets and liabilities. Changes in deferred tax assets ("DTAs") and deferred tax liabilities ("DTLs") are recognized as a separate component of gains and losses in statutory unassigned surplus, while under U.S. GAAP, these changes are included in income tax expense or benefit. Under U.S. GAAP and NAIC SAP, gross deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the assets will not be realized. The remaining adjusted gross deferred tax asset not meeting certain criteria outlined in Statement of Statutory Accounting Principle (“SSAP”) No. 101, “Income Taxes” (“SSAP No. 101”), are not admitted.

•The Statutory Statements of Cash Flows differ in certain respects from the presentation required by U.S. GAAP, including the presentation of the changes in cash and short-term investments instead of cash and cash equivalents. Short-term investments include securities with maturities of one year or less at the time of acquisition. For statutory purposes, there is no reconciliation between net income and cash from operations.

•NAIC SAP does not require the presentation of a Statement of Comprehensive Income; under U.S. GAAP such a statement is required.

The effects on the Company’s financial statements attributable to the differences between NAIC SAP and U.S. GAAP are unknown and are presumed to be material.

USE OF ESTIMATES

The preparation of financial statements in conformity with statutory accounting principles prescribed or permitted by the State of Nebraska requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. The most significant estimates are those used in determining the fair value of financial instruments, allowance for loan losses, aggregate reserves for life policies and contracts, deferred income taxes, provision for income taxes and other-than-temporary impairments (“OTTI”) of investments.

FINANCIAL INSTRUMENTS

In the normal course of business, the Company enters into transactions involving various types of financial instruments, including cash equivalents, short-term investments, debt and equity securities and mortgage loans. These instruments involve credit risk and also may be subject to risk of loss due to interest rate ~~fluctuation~~fluctuations. The Company evaluates and monitors each financial instrument individually and, when appropriate, obtains collateral or other security to minimize losses.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Company in preparing the accompanying statutory-based financial statements:

INVESTMENTS

Cash, cash equivalents and short-term investments

Cash, cash equivalents and short-term investments are highly liquid securities. The Company’s cash equivalents primarily include cash, commercial paper and certain money market investments which have an original term to maturity of less than three months. Short-term investments include debt instruments with a term to maturity exceeding three months, but less than one year on the date of acquisition. Cash equivalents and short-term investments are carried at estimated fair value or amortized cost, which approximates fair value.

Bonds

Investments in debt securities including bonds, mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”) are stated at amortized cost using the interest method. Where the NAIC rating has fallen to 6 and the fair value has fallen below amortized cost, they are stated at fair value. The ratings for certain residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”) were determined by comparing the insurer’s carrying value divided by remaining par value to price ranges modeled by a third-party vendor chosen by the NAIC that correspond to each NAIC designation. Comparisons were initially made to the model based on amortized cost. Where the resulting rating was a NAIC 6 per the model, further comparison based on fair value was required which, in some cases, resulted in a higher final NAIC rating.

3746

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

amortized cost, they are stated at fair value. The ratings for certain residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”) were determined by comparing the insurer’s carrying value divided by remaining par value to price ranges modeled by a third-party vendor chosen by the NAIC that correspond to each NAIC designation. Comparisons were initially made to the model based on amortized cost. Where the resulting rating was a NAIC 6 per the model, further comparison based on fair value was required which, in some cases, resulted in a higher final NAIC rating.

Amortization of the premium or discount from the purchase of these securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single-class and multi-class MBS and ABS are estimated by management using inputs obtained from third-party specialists and based on management's knowledge of the current market. For prepayment-sensitive securities such as interest-only and principal-only strips, inverse floaters and credit-sensitive MBS and ABS securities, which represent beneficial interests in securitized financial assets that are not of high credit quality or that have been credit impaired, the effective yield is recalculated on a prospective basis. For all other MBS and ABS, the effective yield is recalculated on a retrospective basis. If the collection of all contractual cash flows is not probable, an OTTI may be indicated. The process of analyzing securities for an OTTI adjustment is further described in Note 3.

Common Stocks

The Company holds unaffiliated common stock. Common stock is held at fair value, while shares of Federal Home Loan Bank of Chicago (“FHLB”) stock are reported at cost which approximates fair value.

Preferred Stocks

The Company holds unaffiliated redeemable and non-redeemable preferred stock. Preferred stocks are reported at amortized cost based on credit rating as prescribed in Statement of Statutory Accounting Principle (“SSAP”) No. 32, “Preferred Stock”. Effective January 2021, with early adoption permitted, the NAIC revised SSAP No. 32 to SSAP No. 32R in order to update guidance for perpetual preferred stocks. For reporting entities that maintain an Asset Valuation Reserve ("AVR"), perpetual preferred stocks are valued at fair value, not to exceed any currently effective call price. This limitation results only when the call is 1) currently exercisable by the issuer, or 2) the issuer has announced that the instruments will be redeemed/called. Previously, these securities were carried based on NAIC credit rating with designations of NAIC 1 to NAIC 3 carried at amortized cost and NAIC 4 to NAIC 6 carried at the lower of amortized cost or fair value.

Investments in Subsidiaries

Investments in insurance subsidiaries are carried based on the underlying statutory equity of the subsidiary. The Company’s investment in Lancaster Re is fully nonadmitted as of December 31, 2021 and 2020. The Company’s book/carrying values and nonadmitted value of its investment in Lancaster Re were $~~XXX~~174.X5 million and $168.0 million as of December 31, 2021 and 2020, respectively.

Mortgage Loans

Mortgage loans are stated at unpaid principal balances, net of provisions for estimated losses. Mortgage loans acquired at a premium or discount are stated at amortized cost using the effective interest rate method, net of provisions for estimated losses. Purchases and sales of mortgage loans are recognized or derecognized in the Company’s Statutory Statements of Admitted Assets, Liabilities and Capital Stock on the loan’s settlement date, which is the date that the Company cash settles the purchase or sale of the loan. Transaction costs on mortgage loans are capitalized on initial recognition and are recognized in the Company’s Statutory Statements of Operations using the effective interest rate method. Mortgage loans, which primarily include commercial first lien mortgages, are diversified by property type and geographic area throughout the United States. Mortgage loans are collateralized by the related properties and generally are no more than 75% of the property’s value at the time that the original loan is made. The Company regularly assesses the value of the collateral.

A mortgage loan is considered impaired when it is probable that the principal or interest is not collectible in accordance with the contractual terms of the loan. When a mortgage loan is classified as impaired, allowances for credit losses are established to adjust the carrying value of the loan to its net recoverable amount. 47

The allowance for credit losses are estimated using the present value of expected cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral dependent. A specific allowance for loan loss is established for an impaired loan if the present value of expected cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral less cost to sell, is less than the recorded amount of the loan. The full extent of impairment in the mortgage portfolio cannot be assessed solely by reviewing these loans individually. A general allowance for loan loss is established based on an assessment of past loss experience on groups of loans with similar characteristics and current economic conditions. While management believes that it uses the best information available to establish the loan loss allowances, future adjustments may become necessary if economic conditions differ from the assumptions used in calculating them.

It is the Company's policy to cease to carry accrued interest on commercial mortgage loans in default if deemed uncollectible or over 180 days past due. The Company held no investments in non-accrual status as of December 31, 2020. The Company held

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

XXA ~~investments~~mortgage loan is considered impaired when it is probable that the principal or interest is not collectible in ~~non-accrual~~accordance ~~status~~with asthe ofcontractual ~~December~~terms ~~31,~~of ~~2021~~the loan. ~~Interest~~ ~~income~~When a mortgage loan is ~~recognized~~classified onas impaired, ~~mortgage~~allowances ~~loans~~for ~~upon~~credit ~~receipt~~losses are established to adjust the carrying value of the loan to its net recoverable amount.

Changes in allowances for losses are recorded as changes in unrealized gains and losses to surplus. Once the conditions causing impairment improve and future payments are reasonably assured, the mortgages are no longer classified as impaired and the Company resumes accrual of income. However, if the original terms of the contract have been changed resulting in the Company providing an economic concession to the borrower at below market rates, then the mortgage is reclassified as restructured.

If the conditions causing impairment do not improve and future payments remain unassured, the Company typically derecognizes the asset through disposition or foreclosure. Uncollectible collateral-dependent loans are written off through realized losses for any difference between the carrying value and amount received for the underlying property at the time of disposition or foreclosure.

Contract Loans

Contract loans are carried at the amount of outstanding principal balance. Contract loans are collateralized by the related insurance policy and do not exceed the net cash surrender value of such policy.

Other Investments

Other investments include investments in surplus notes, interests in limited partnerships, derivatives ~~(see below)~~ and collateral loans. Investments in surplus notes that are rated NAIC 1 or NAIC 2 are carried at amortized cost. Investments in limited partnerships that lack a controlling ownership interest are reported under the equity method. Collateral loans are reported at outstanding balance with a corresponding non-admitted asset for any amounts which are in excess of the fair value of the pledged collateral.

The Company did not report any Low Income House Tax Credit (LIHTC) investments as of December 31, 2021 and 2020.

Derivatives

Derivative instruments used in hedging transactions that meet the criteria of a highly effective hedge are valued and reported consistently with the hedged items. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge are valued at fair value with the changes in fair value recorded as unrealized gains and losses in statutory surplus. Realized investment gains and losses from derivatives that qualify for hedge accounting are reduced by amounts transferred to IMR.

Derivative financial instruments acquired by the Company were used to economically hedge the risks with certain assets and liabilities arising from potential adverse impacts from changes in risk-free interest rates and equity markets related to the Company’s equity indexed annuity and life contracts. The Company does not use derivatives for speculative purposes. Derivatives may include index option contracts and futures and interest rate swaps and are included in Other Investments on the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus. The notional amounts specified in the contracts are ~~used to calculate contractual payments under the agreements and are generally not representative of the potential for gain or loss on these contracts.~~

~~The Company did not report any derivatives as accounting hedges as of December 31, 2020. The Company did/did not report any derivatives as accounting hedges as of December 31, 2021.~~48

ASSET VALUATION RESERVE AND INTEREST MAINTENANCE RESERVE

The AVR is established as a liability based upon a formula prescribed by the NAIC to offset potential credit-related investment losses on all invested assets, with changes in the AVR charged or credited directly to surplus. The IMR is established as a liability to capture realized gains and losses, net of income tax, on the sale of fixed income investments, principally bonds and mortgage loans, resulting from changes in the general level of interest rates, and is amortized into income over the remaining years to expected maturity of the assets sold. Should the deferral of realized losses, net of income tax, result in a debit balance IMR, that amount is presented as an asset and nonadmitted.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

used to calculate contractual payments under the agreements and are generally not representative of the potential for gain or loss on these contracts.

The Company did not report any derivatives as accounting hedges as of December 31, 2021 and 2020.

ASSET VALUATION RESERVE AND INTEREST MAINTENANCE RESERVE

INVESTMENT INCOME DUE AND ACCRUED

Accrued investment income consists primarily of interest and dividends. Interest is recognized on an accrual basis and dividends are recorded as earned on the ex-dividend date. Due and accrued income is not recorded on: (a) bonds in default, (b) bonds delinquent more than 90 days or where collection of interest is improbable and (c) mortgage loans in default if deemed uncollectible or over 180 days past due. As of December 31, ~~2020~~2021, the Company’s had $0.1 million of nonadmitted investment income due and accrued ~~was zero~~. As of December 31, ~~2021~~2020, the Company'’s nonadmitted investment income due and accrued was XXzero.

POLICY AND CONTRACT RESERVES

Policy reserves on annuity and supplementary contracts are calculated using the Commissioners’ Annuity Reserve Valuation Method, except variable annuities which use the Commissioners’ Annuity Reserve Valuation Method for Variable Annuities. The valuation interest assumptions follow the Standard Valuation Law and vary by the contracts’ characteristics and issue year.

Policy reserves on life contracts are based on statutory mortality and valuation interest rates using the Commissioner’s Reserve Valuation Method without consideration of withdrawals. The valuation interest and mortality assumptions follow the Standard Valuation Law and vary by the contracts’ characteristics and issue year.

Valuation methods provide, in the aggregate, reserves that are greater than or equal to the minimum of guaranteed policy cash values or the amount required by law.

Accident and health benefit reserves are developed by actuarial methods and are determined based on published tables using specified statutory interest rates and mortality. Morbidity and lapse assumptions are based on Company experience.

Liability for deposit-type contracts represents contracts without significant mortality or morbidity risk. Payments received from sales of deposit-type contracts are recognized by providing a liability equal to the current value of the policyholders’ contracts. Interest rates credited to these contracts are based on the applicable terms of the respective contract.LIABILITY FOR POLICY AND CONTRACT CLAIMS

LIABILITY FOR POLICY AND CONTRACT CLAIMS

Liabilities for unpaid claims consist of the estimated amount payable for claims reported but not yet settled and an estimate of claims incurred but not reported. The amounts reported are based upon actual pending claim amounts and historical experience, adjusted for trends and current circumstances. Revisions of these estimates are included in the Company’s Statutory Statements of Operations in the year such adjustments are determined to be required.

INCOME TAXES

The Company accounts for current and deferred income taxes and recognizes reserves for income tax contingencies in accordance with SSAP No. 101. Under the applicable asset and liability method for recording deferred income taxes, deferred taxes are recognized when assets and liabilities have different values for financial statement and tax reporting purposes, using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in the period that includes the enactment date. Valuation allowances on DTAs are estimated ~~based on the Company’s assessment of the realizability of such amounts. Refer to Note 13 of the Company’s financial statements for further discussion of the Company’s income taxes.~~

~~REINSURANCE~~49

Policy and contract liabilities ceded have been reported as a reduction of the related reserves. Premiums, commissions, expense reimbursement, claims, and claim adjustment expenses related to reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and with the terms of the reinsurance contracts and are reported net of amounts ceded to other companies.

A liability has been provided for unsecured policy reserves on reinsurance ceded to companies not authorized to assume business in the state of domicile and is included in funds held under reinsurance treaties with unauthorized companies. Changes in this liability are reported directly in unassigned surplus.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

based on the Company’s assessment of the realizability of such amounts. Refer to Note 13 of the Company’s financial statements for further discussion of the Company’s income taxes.

REINSURANCE

EXPERIENCE REFUNDS

Experience refunds are calculated in accordance with the applicable reinsurance agreements. Experience refunds are primarily determined by claims experience on the ceded blocks, in addition to numerous factors that include profitability of the Company during the period covered by the refund and capitalization levels of the Company. Experience refunds are recorded directly in the Company’s Statutory Statements of Operations.

GUARANTY ASSOCIATION ASSESSMENTS

The Company is required by law to participate in the guaranty associations of the various states in which it is licensed to do business. The state guaranty associations ensure payment of guaranteed benefits, with certain restrictions, to policyholders of impaired or insolvent insurance companies by assessing all other companies involved in similar lines of business. Certain guaranty fund assessments paid by the Company are recoverable through premium tax credits over time.

RECOGNITION OF REVENUE AND RELATED EXPENSES

Scheduled life, accident and health insurance premiums and annuity considerations are recognized as revenue when due. Premiums for universal life and single premium contracts are recognized as revenue when collected. Benefits, surrenders and withdrawals are expensed as incurred. All acquisition costs and maintenance expenses are charged to the Company’s Statutory Statements of Operations as incurred.

OTHER INCOME

Other income primarily consists of various insurance policy charges. In 2021 and 2020, other income also includes IMR ceded as part of the Company’s reinsurance program described in Note 8.

SEPARATE ACCOUNTS

The Company has established unitized Separate Accounts applicable to various classes of contracts providing for variable benefits. Contracts for which funds are invested in the variable Separate Accounts include individual and group life and annuity contracts.

Net investment income, capital gains and losses, and changes in mutual fund asset values on the variable Separate Accounts are allocated to policyholders and therefore do not affect the operating results of the Company. Assets held in the variable Separate Accounts are carried at fair value. The investment risk of such securities is retained by the contractholder. The Company earns separate account fees for providing administrative services and bearing the mortality risks related to contracts for which funds are invested in variable Separate Accounts.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The activity of the variable Separate Accounts is not reflected in the Company’s financial statements except for the following:

•The fees that the Company receives, which are assessed periodically and recognized as revenue when assessed.

•The activity related to the guaranteed minimum death benefit, guaranteed minimum accumulation benefit and guaranteed minimum withdrawal benefit with offsetting transfers to/from the variable Separate Accounts are reflected in the Company’s financial statements.

•Premiums and withdrawals with offsetting transfers to/from the variable Separate Accounts are reflected in the Statutory Company’s Statement of Operations.

•Transfers from the variable Separate Accounts due and accrued, which include accrued expense allowances receivable from the variable Separate Accounts.

•The dividends-received-deduction (“DRD”), which is included in the Company’s income tax expense, is calculated based upon the variable Separate Accounts’ assets held in connection with variable contracts.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The results of variable annuity contracts and certain variable life policies are reinsured to Everlake, formerly ALIC, pursuant to a modified coinsurance agreement.

NONADMITTED ASSETS

Certain assets are designated as “nonadmitted” under NAIC SAP. Such assets, principally related to amounts advanced to or due from financial representatives, prepaid expenses, aged reinsurance recoverables, deferred tax assets in excess of statutory limits and the Company’s investment in Lancaster Re are excluded from assets and surplus in the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus as of December 31, 2021 and 2020.

RECLASSIFICATIONS

Certain prior year amounts have been reclassified to conform with the current year financial statement presentation.

ACCOUNTING PRONOUNCEMENTS

Effective December 2021, the NAIC revised SSAP No. 43R that 1) on Modeled RMBS/CMBS tranches that do not have expected losses will be assigned an NAIC 1 Designation and a NAIC 1.A. Designation Category and 2) financial modeling for "legacy" RMBS/CMBS securities, should continue to utilize the insurer's carrying value for said modeling. For non-legacy RMBS/CMBS (those that closed after December 31, 2012) the NAIC designation and NAIC designation category assigned by the NAIC Securities Valuation Office must be used. The impact of this revision did not have a significant impact on the financial statements as of December 31, 2021. On March 15, 2021, the NAIC adopted, as final, the exposed revisions to SSAP No. 43R, “Loan-Backed and Structures Securities” to incorporate minor scope modifications to reflect recent changes to the Freddie Mac Structured Agency Credit Risk (STACR) and Fannie Mae Connecticut Avenue Securities (CAS) programs. The edits allow credit risk transfer securities from Freddie Mac and Fannie Mae to remain in scope of SSAP No. 43R when a REMIC structure is used. The adoption of these revisions did not have a significant impact on the financial statements of the Company.Effective January 2021 with early adoption permitted, the NAIC revised SSAP No. 32, “Preferred Stocks” to SSAP No. 32R in order to update guidance for perpetual preferred stocks. For reporting entities that maintain an Asset Valuation Reserve (“AVR”), perpetual preferred stocks are valued at fair value, not to exceed any currently effective call price. Previously, these securities were carried based on NAIC credit rating with designations of NAIC 1 to NAIC 3 carried at amortized cost and NAIC 4 to NAIC 6 carried at the lower of amortized cost or fair value. The adoption of this revision resulted in $X4.X5 million unrealized gain/(loss) to be recorded through unassigned surplus as of December 31, 2021.

Effective January 2021 with early adoption permitted, the NAIC revised SSAP No. 26R, “Bonds” related to perpetual bonds which are now reported at fair value, not to exceed any currently effective call price. For perpetual bonds with an effective call option, any applicable premium is amortized utilizing the yield-to-worst method. The adoption of these revisions did not have an impact on the financial statements of the Company.51

On March 15, 2021, the NAIC adopted, as final, the exposed revisions to SSAP No. 43R, “Loan-Backed and Structures Securities” to incorporate minor scope modifications to reflect recent changes to the Freddie Mac Structured Agency Credit Risk (STACR) and Fannie Mae Connecticut Avenue Securities (CAS) programs. The edits allow credit risk transfer securities from Freddie Mac and Fannie Mae to remain in scope of SSAP No. 43R when a REMIC structure is used. The adoption of these revisions did not have a significant impact on the financial statements of the Company.

Effective January 2021 with early adoption preferred, the NAIC additionally revised SSAP No. 26R, “Bonds” related to disclosures for prepayment or acceleration fees. The revisions expanded the called bond disclosures to include tender offers. The adoption of this revision did not have a significant impact on the financial statements of the Company.

Effective January 2020 with early adoption permitted, the NAIC revised Statement of Statutory Accounting Principle (“SSAP”) No. 22, “Leases” to SSAP No. 22R, “Leases - Revised” in order to update guidance on leases, including leveraged leases and sale-leaseback transactions. The substantive revisions to SSAP No. 22 were the result of U. S. GAAP based changes by the Financial Accounting Standards Board (“FASB”) through issuance of Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”. The adoption of these revisions is not expected to have an impact on the financial statements of the Company as the “operating lease” approach without recognition of a right-to-use asset or lease liability is still used under NAIC SAP for lessees.

Effective January 2020 with early adoption permitted, the NAIC revised SSAP No. 100R, “Fair Value”, as a result of the issuance of ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement”. This ASU was issued in August 2018 as part of a FASB project to improve the effectiveness of U.S. GAAP disclosures. The adoption of these revisions is not expected to have a significant impact on the financial statements of the Company and disclosures will be updated in Note 12.

Effective December 2019 with early adoption permitted, the NAIC revised SSAP No. 69, “Cash Flows”, as a result of the issuance of ASU 2016-18, “Statement of Cash Flows: Restricted Cash”. This ASU required restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning and ending balances shown on the

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

~~Statutory~~Effective ~~Statements~~January of2021 ~~Cash~~with ~~Flows.~~early ~~This~~adoption ~~revision~~permitted, isthe toNAIC berevised ~~shown~~SSAP ~~retrospectively~~No. 26R, ~~allowing~~“Bonds” ~~for~~related ~~comparative~~to ~~cash~~perpetual ~~flow~~bonds ~~statements.~~which ~~The~~are ~~adoption~~now ofreported ~~this~~at ~~revision~~fair isvalue, ~~included~~not asto aexceed ~~reclass~~any ~~between~~currently ~~line~~effective ~~items~~call ofprice. ~~the~~For ~~Statutory~~perpetual ~~Statements~~bonds ofwith ~~Admitted~~an ~~Assets,~~effective ~~Liabilities~~call ~~and~~option, ~~Capital~~any ~~and~~applicable ~~Surplus~~premium ~~and~~is ~~related~~amortized ~~adjustments~~utilizing the yield-to-worst ~~the~~method. ~~Statutory~~The ~~Statements~~adoption of ~~Cash~~these ~~Flows~~revisions ~~with~~did ~~immaterial~~not ~~overall~~have an impact toon the financial statements of the Company.

Effective January 2020 with early adoption permitted, the NAIC revised Statement of Statutory Accounting Principle (“SSAP”) No. 22, “Leases” to SSAP No. 22R, “Leases - Revised” in order to update guidance on leases, including leveraged leases and sale-leaseback transactions. The substantive revisions to SSAP No. 22 were the result of U. S. GAAP based changes by the Financial Accounting Standards Board (“FASB”) through issuance of Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”. The adoption of these revisions did not have an impact on the financial statements of the Company as the “operating lease” approach without recognition of a right-to-use asset or lease liability is still used under NAIC SAP for lessees.

Effective January 2020 with early adoption permitted, the NAIC revised SSAP No. 100R, “Fair Value”, as a result of the issuance of ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement”. This ASU was issued in August 2018 as part of a FASB project to improve the effectiveness of U.S. GAAP disclosures. The adoption of these revisions did not have a significant impact on the financial statements of the Company and disclosures in Note 12.

2.RELATED PARTY TRANSACTIONS

The Company has significant transactions with affiliates. Intercompany revenues and expenses recognized under these agreements may not necessarily be indicative of costs that would be incurred if the Company operated on a stand-alone basis and if these transactions were with unrelated parties. Below is a summary of significant transactions with affiliates.

Capital Contributions and Dividends

During 2021, 2020 and 2019, the Company received capital contributions in the amount of $~~XX million from GILICO~~65.0 ~~During 2020~~million, ~~the Company received capital contributions in the amount of~~ $55.0 million ~~from~~and ~~GILICO~~$20.0 ~~On December 31~~million, ~~2019~~respectively, ~~the Company received a capital contribution~~ from GILICO ~~for $20 million~~.

After receiving prior approval from the NE DOI, the Company paid extraordinary dividends of $40.0 million in 2019. The Company did not pay any extraordinary dividends in 2021 or 2020.

For the year ended December 31, 2021, the Company contributed $XX76.2 million to Lancaster Re, of which, $50.2 million was recorded as a contribution payable at December 31, 2021. For the year ended December 31, 2020, the Company contributed $82.0 million to Lancaster Re. In 2019, the Company contributed $50.0 million to Lancaster Re.

Reinsurance Related Agreements

As more fully described in Note 8, the Company is party to various reinsurance transactions with affiliates.

Effective April 1, 2020, the Company entered into a stop loss agreement with Kuvare Life Re Ltd., a Bermuda affiliate, to cover excess losses associated with life policies reinsured with Lancaster Re. The Company had a net ~~receivable/~~payable of $~~X.X million and a net payable of $~~0.3 million at December 31, 2021 and December 31, 2020~~, respectively~~.

Effective October 1, 2020, amended on July 1, 2021 the Company entered into a coinsurance agreement with Kuvare Bermuda Re Ltd., resulting in the transfer of certain fixed annuity contracts. The Company ~~initially~~ ceded ~~assets of $1.2 billion and~~ statutory reserves of $1,224.20 ~~billion~~million for which amounts are collateralized with a funds withheld account. ~~and~~The ~~IMR.~~Company ~~Effective~~amended the agreement effective July 1, 2021, to increase the ~~Company~~quota ~~ceded~~share anfrom ~~additional~~35% ~~$X.X~~to ~~billion~~50% ofon ~~assets~~certain ~~and~~annuities ~~statutory~~ceding ~~reserves~~an ofadditional $X200.X4 ~~billion~~million of reserves. The Company had a ~~receivable/~~payable of $X4.X7 million at December 31, 2021 and a receivable of $1.3 million at December 31, ~~2021 and December 31,~~ 2020~~, respectively~~.

On December 31, 2019, the Company entered into a coinsurance agreement with GILICO, resulting in the transfer of certain life and annuity contracts. The Company ceded statutory reserves of $1.3 billion in return for a ceding commission of $27.0 million, which was recorded in the Statutory Statements of Operations. The Company had a net receivable/payable of $XX.X million from GILICO and a net receivable of $11.1 million due to GILICO under terms of the coinsurance agreement at December 31, 2021 and December 31, 2020, respectively. 52

Effective April 1, 2014, amended and restated on April 1, 2020, the Company entered into an indemnity reinsurance agreement on a combination coinsurance and coinsurance funds withheld basis with Lancaster Re, resulting in the transfer of XXX and AXXX reserves associated with certain term and universal life policies. In April 2014, the Company ceded statutory reserves of $2.7 billion in return for a ceding commission, which was deferred net of tax into unassigned surplus in accordance with NAIC SAP. Amortization of $XX.X million, $16.3 million and $16.1 million was recorded during the years ended December 31, 2021, 2020 and 2019, resulting in an unamortized balance in surplus at December 31, 2021, 2020 and 2019 of $XXX.X million, $214.2 million and $230.5 million, respectively. The deferred ceding commission is amortized into income over the period under which earnings emerge from the business reinsured. The Company had a net reinsurance receivable from Lancaster Re of $XX.X million and $22.0 million at December 31, 2021 and 2020, respectively.

There is no reported risk-based capital or Primary Security shortfall associated with these agreements.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

On December 31, 2019, the Company entered into a coinsurance agreement with GILICO, resulting in the transfer of certain life and annuity contracts. The Company ceded statutory reserves of $1,253.9 million in return for a ceding commission of $27.0 million, which was recorded in the Statutory Statements of Operations. The Company had a net receivable of $9.5 million and $11.1 million from GILICO under terms of the coinsurance agreement at December 31, 2021 and December 31, 2020, respectively.

Effective April 1, 2014, amended and restated on April 1, 2020, the Company entered into an indemnity reinsurance agreement on a combination coinsurance and coinsurance funds withheld basis with Lancaster Re, resulting in the transfer of XXX and AXXX reserves associated with certain term and universal life policies. In April 2014, the Company ceded statutory reserves of $2,773.2 million in return for a ceding commission, which was deferred net of tax into unassigned surplus in accordance with NAIC SAP. Amortization of $16.0 million, $16.3 million and $16.1 million was recorded during the years ended December 31, 2021, 2020 and 2019, resulting in an unamortized balance in surplus at December 31, 2021, 2020 and 2019 of $198.2 million, $214.2 million and $230.5 million, respectively. The deferred ceding commission is amortized into income over the period under which earnings emerge from the business reinsured. The Company had a net reinsurance receivable from Lancaster Re of $24.7 million and $22.0 million at December 31, 2021 and 2020, respectively.

There is no reported risk-based capital or Primary Security shortfall associated with these agreements.

Administrative Service Agreements and Other

The Company and HoldCo have entered into a Services Agreement to provide certain administrative and other services to each other. Total expenses incurred under this agreement to HoldCo were $XX9.X7 million, $8.7 million and $13.5 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company and Lancaster Re have entered into a Services Agreement to provide certain administrative and other services to Lancaster Re. The Company and Lancaster Re also entered into an Investment Services Agreement pursuant to which the Company will provide investment management services with respect to assets of Lancaster Re. The Investment Services Agreement does not apply to the Funds Withheld Account held at Lincoln Benefit. Assets may be added to or withdrawn from the accounts at any time by Lancaster Re. Management and administrative fees are payable quarterly and totaled approximately $~~X.X million and $~~1.3 million for the years ended December 31, 2021 and 2020, respectively.

Effective December 31, 2019, the Company entered into a Cost Sharing and Services Agreement with Kuvare US Holdings, Inc. (“Kuvare”) and Kuvare Insurance Services LP (“KIS”) whereby Kuvare and KIS have agreed to provide certain management and administrative services to Lincoln Benefit, including management, reinsurance, legal, audit, administration, financial planning and other services. Lincoln Benefit reimburses Kuvare and KIS at cost for services provided by Kuvare and KIS pursuant to this agreement. Total expenses incurred under this agreement to the Company were $X6.X4 million and $5.1 million for the year ended December 31, 2021 and December 31, 2020, respectively.

On December 31, 2019, Lincoln Benefit entered into an Investment Management Agreement with KIS, whereby KIS has agreed to provide certain investment advisory and management services to Lincoln Benefit. ~~Expenses~~Total ofexpenses ~~$23.7 million were~~ incurred under this agreement ~~during~~to the ~~year~~Company ~~ended~~were ~~December~~$24.5 ~~31,~~million ~~2020~~and ~~while expenses of~~ $XX23.X7 million ~~were~~for ~~incurred during~~ the year ended December 31, 2021 and December 31, 2020, respectively.

The Company and Lancaster Re have entered into a Tax Allocation Agreement. Refer to Note 13 for more information related to this agreement.

Effective April 1, 2014, the Company entered into a Fee Letter (the “Fee Letter”) with Lanis LLC ("Lanis") pursuant to which the Company will pay Lanis the risk spread due on the Credit-Linked Note issued by Lanis to Lancaster Re. A reserve had been established on the balance sheet for these payments through April 1, 2019. The reserve was based on a former letter agreement between the Company and Holdco which was terminated effective April 1, 2020. The fee letter also provided reimbursement in cash for any risk spread fees paid by the Company. During 2020, Holdco contributed capital of $2.0 million to the Company in line with the Fee Letter.

Effective November 4, 2016, the Company entered into an intercompany note receivable and note payable agreement with Lancaster Re in equal amounts (initially $100 million, and up to $500 million). The consideration for each note is offset, and interest is paid quarterly based on rates defined in the agreement. The gross amounts as of December 31, 2021 and 2020 were $— million and $463.7 million, respectively.53

The maturities of the outstanding intercompany note receivable and payable as of December 31, 2021 and 2020 were as follows:

($'s thousands)	December 31, 2021		December 31, 2020
2021	—		105,000
2022	—		103,425
2023	—		62,000
2024	—		42,000
2025	—		151,250
Total	$	—	$	463,675

Interest expense incurred on the note payable and interest income earned on the note receivable for the year ended December 31, 2021 were $X.X million and $X.X million, respectively. Interest expense incurred on the note payable and interest income earned on the note receivable for the year ended December 31, 2020 were $5.9 million and $3.9 million, respectively. Interest expense

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

~~incurred~~Effective onNovember 4, 2016, the Company entered into an intercompany note receivable and note payable agreement with Lancaster Re in equal amounts (initially $100 million, and ~~interest~~up ~~income~~to ~~earned~~$500 onmillion). ~~the~~The consideration for each note ~~receivable~~is ~~for~~offset, and interest is paid quarterly based on rates defined in the ~~year~~agreement. The ~~ended~~gross amounts as of December 31, ~~2019~~2021 and 2020 were $10500.60 million and $4463.7 million, respectively.

The maturities of the outstanding intercompany note receivable and payable as of December 31, 2021 and 2020 were as follows:


($'s thousands)	December 31, 2021		December 31, 2020

2021	—		105,000
2022	164,825		103,425
2023	91,925		62,000
2024	60,000		42,000
2025	159,250		151,250
2028	4,000		—
2031	20,000		—
Total	$	500,000	$	463,675

Interest expense incurred on the note payable and interest income earned on the note receivable for the year ended December 31, 2021 were $20.0 million and $4.1 million, respectively. Interest expense incurred on the note payable and interest income earned on the note receivable for the year ended December 31, 2020 were $5.9 million and $3.9 million, respectively. Interest expense incurred on the note payable and interest income earned on the note receivable for the year ended December 31, 2019 were $10.6 million and $4.7 million, respectively.

Amounts Due To or From Affiliates

The Company reported the following receivables/(payables) to affiliates as of December 31, 2021 and 2020 excluding amounts related to taxes (see Note 13) and reinsurance agreements:

($'s in thousands)	December 31, 2021		December 31, 2020
HoldCo	$	—(2,711)	$	(1,~~651~~652)
Lancaster Re	—(3,406)		474
Lanis	—		—
Kuvare	—		(8,578)
United Life Insurance Company	5		—
Guaranty Income Life Insurance Company	14		—
Kuvare	(7,749)		(8,578)

Intercompany receivable and payable balances are evaluated on an individual company basis. Intercompany balances are generally settled quarterly.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

3.INVESTMENTS

The statement value and fair value of the Company’s debt securities as of December 31, 2021 and 2020 were as follows:

December 31, 2021
($'s in thousands)	Statement Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. governments	$	—185,440	$	—1,744	$	—(5,930)	$	—181,254
All other governments	—23,403		—319		—(404)		—23,318
U.S. states, territories and possessions	—4,676		—384		—		—5,060
U.S. political subdivisions	—58,694		—3,053		—(94)		—61,653
Special revenue	—1,236,462		—52,864		—(13,283)		—1,276,043
Industrial and miscellaneous	—6,448,291		—427,283		—(47,801)		—6,827,773
Hybrids	—111,337		—5,589		—(1,044)		—115,882
Total bonds	$	—8,068,303	$	—491,236	$	—(68,556)	$	—8,490,983


December 31, 2020
($'s in thousands)	Statement Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

U.S. governments	$	638,836	$	4,850	$	(497)	$	643,189
All other governments	12,776		452		—		13,228
U.S. states, territories and possessions	19,982		4,021		—		24,003
U.S. political subdivisions	72,500		8,132		(42)		80,590
Special revenue	1,085,852		110,757		(1,134)		1,195,475
Industrial and miscellaneous	6,098,527		657,746		(26,313)		6,729,960
Hybrids	145,846		8,817		(2,447)		152,216
Total bonds	$	8,074,319	$	794,775	$	(30,433)	$	8,838,661

4555

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The statement value and estimated fair value as of December 31, 2021 by maturity periods for debt securities, other than ABS and MBS were as shown below:

December 31, 2021
($'s in thousands)	Statement Value		Fair Value
Due in one year or less	$	—32,575	$	—33,138
Due after one through five years	—664,424		—684,659
Due after five through ten years	—848,068		—873,909
Due after ten years	—4,485,545		—4,840,174
Total before asset and mortgage-backed securities	—6,030,612		—6,431,880
Asset and mortgage-backed securities	—2,037,691		—2,059,103
Total bonds	$	—8,068,303	$	—8,490,983

Actual maturities may differ from contractual maturities on ABS and MBS because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; accordingly, the contractual maturities for those securities are not shown.

Proceeds from sales of investments in debt securities for the years ended December 31, 2021, 2020 and 2019 were $X2.X0 billion, $2.9 billion and $0.9 billion, respectively; gross gains for the years ended December 31, 2021, 2020 and 2019 were $~~XXX~~140.X4 million, $232.0 million and $47.4 million, respectively, and gross losses for the years ended December 31, 2021, 2020 and 2019 were $XX18.X8 million, $16.1 million and $19.3 million, respectively. Investment grade debt securities were XX96.X1% and 97.4% of the Company’s total debt securities as of December 31, 2021 and 2020, respectively.

The Company held the following 5GI securities at December 31, 2021 and December 31, 2020:

The Company held XX 5* securities as of December 31, 2021 and no 5* securities as of December 31, 2020.


($'s in thousands, except # of securities)	Number of 5GI Securities		Aggregate BACV				Aggregate Fair Value
	2021	2020	2021		2020		2021		2020
Bonds - AC	—	—	$	—	$	—	$	—	$	—
LB&SS - AC	—	—	—		—		—		—
Preferred Stock - AC	2	—	20,475		—		21,114		—
Preferred Stock - FV	—	—	—		—		—		—
Total	2	—	20,475		—		21,114		—

5GI securities are securities that have an NAIC 5 designation while "GI" refers to General Interrogatory and distinguishes NAIC 5GI securities from an NAIC 5 Designation.

For securities sold, redeemed or otherwise disposed as a result of a callable feature (including make whole call provisions), the number of CUSIPs and amount of investment income for the years ended December 31, 2021, 2020 and 2019 were as follows:

($'s in thousands, except # of securities)
	December 31, 2021				December 31, 2020				December 31, 2019
Type	General Account		Separate Account		General Account		Separate Account		General Account		Separate Account
Number of CUSIPs	—15		—		19		—		22		—
Aggregate Amount of Investment Income	$	—1,803	$	—	$	8,057	$	—	$	3,785	$	—

~~Pricing~~ 56

Non-U.S. government fixed income holdings are valued on the basis of the quotes provided by pricing services, which are subject to pricing validation reviews and a pricing vendor challenge process. Valuations provided by vendors are generally based on the actual trade information as substantially all of the Company’s non-U.S. government holdings are traded in a transparent and liquid market.

Corporate debt securities mainly include investment grade positions, which are priced on the basis of quotes provided by third-party pricing vendors and first utilize valuation inputs from actively traded securities, such as bid prices, bid spreads to Treasury securities, Treasury curves, and same or comparable issuer curves and spreads. Issuer spreads are determined from actual quotes and traded prices and incorporate considerations of credit/default, sector composition, liquidity and call features. Where market data is not available valuations are developed based on the modeling techniques that utilize observable inputs and option adjusted spreads and incorporate considerations of the security’s seniority, maturity and the issuer’s corporate structure.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

Pricing

Values of RMBS, CMBS and ABS are obtained from third-party pricing vendors and through quoted prices, some of which may be based on the prices of comparable securities with similar structural and collateral features. Pricing inputs for ABS which are primarily comprised of debt securitized by credit card; student loan and auto receivables; focus on capturing collateral quality and performance, payment patterns, and delinquencies. Values of certain ABS for which there are no significant observable inputs are developed using benchmarks to similar transactions or indices.

For both CMBS and RMBS, cash flows are derived based on the transaction-specific information which incorporates priority in the capital structure and are generally adjusted to reflect benchmark yields, market prepayment data, collateral performance (default rates and loss severity) for specific vintage and geography, credit enhancements, and ratings. For certain RMBS and CMBS with low levels of market liquidity, judgments may be required to determine comparable securities based on the loan type and deal-specific performance. CMBS terms may also incorporate lock-out periods that restrict borrowers from prepaying the loans or provide disincentives to prepay and therefore reduce prepayment risk of these securities, as compared to RMBS. The factors specifically considered in valuation of CMBS include borrower-specific statistics in a specific region, such as debt service coverage and loan-to-value ratios, as well as the type of commercial property.

Other-than-temporary impairments

The Company recognizes and measures OTTI for ABS and MBS in accordance with SSAP No. 43R, “Loan-Backed and Structured Securities”. In accordance with SSAP No. 43R, if the fair value of a structured security is less than its amortized cost basis at the balance sheet date, the Company assesses whether the impairment is an OTTI. When an OTTI has occurred, the amount of OTTI recognized in earnings is the difference between the amortized cost basis of the security and the present value of its expected future cash flows discounted at the effective interest rate implicit in the security.

If the Company intends to sell the structured security, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis, an OTTI is considered to have occurred. The amount of the OTTI recognized in earnings is the difference between the amortized cost basis and the fair value of the security.

If the Company does not intend to sell the structured security, or it is not more likely than not that it will be required to sell the security before recovery of its amortized cost basis, the Company performs cash flow testing to determine if the present value of its expected future cash flows discounted at the effective interest rate implicit in the security is less than its amortized cost basis.

Estimating future cash flows is a quantitative and qualitative process that incorporates information received from third parties, along with assumptions and judgments about the future performance of the underlying collateral. Losses incurred on the respective portfolios are based on loss models using assumptions about key systemic risks such as unemployment rates and housing prices and loan specific information such as delinquency rates and loan-to-value ratios.

If the fair value of a debt security, other than those subject to SSAP No. 43R, is less than its amortized cost basis at the balance sheet date, the Company assesses whether the impairment is an OTTI. When an OTTI has occurred, the amount of OTTI recognized in earnings is the difference between the amortized cost basis of the security and its fair value.

If the Company intends to sell the debt security, or it is more likely that it will be required to sell the security before recovery of its amortized cost basis, an OTTI is considered to have occurred. If the Company does not intend to sell the debt security, or it is not more likely than not that it will be required to sell the security before recovery of its amortized cost basis, the Company employs a portfolio monitoring process to identify securities that are OTTI. 57

The Company has an Investment Committee comprised of investment and finance professionals which meets at least quarterly to review individual issues or issuers that may be of concern. In determining whether a security is OTTI, the Investment Committee considers the factors described below. The process involves a quarterly screening of all securities where fair value is less than the amortized cost basis. Discrete credit events, such as a ratings downgrade, are also used to identify securities that may be OTTI. The securities identified are then evaluated based on issuer-specific facts and circumstances, such as the issuer’s ability to meet current and future interest and principal payments, an evaluation of the issuer’s financial position and its near-term recovery prospects, difficulties being experienced by an issuer’s parent or affiliate, and management’s assessment of the outlook for the issuer’s sector.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

As a supplement to the qualitative assessment, independent screenings are performed to help identify securities that should be carefully scrutinized for inclusion on the watchlist and in the proper category. These include things like market value to book value ratio, highest unrealized losses, length of time at an unrealized loss and stress test results for structured securities. In making these evaluations, the Credit Committee exercises considerable judgment. Based on this evaluation, issues or issuers are considered for inclusion on one of the Company’s following watchlists: Monitor, Concern, High Concern, or Default.

“Monitor List”- Management has concluded that the Company’s amortized cost will be recovered through timely collection of all contractually specified cash flows, but that changes in issuer-specific facts and circumstances require monitoring on a quarterly basis. The likelihood of future non‐repayment is considered not probable. For loan‐backed and structured securities, a principal loss would be projected under a significant stress model scenario. No OTTI charge is recorded in the Company’s Statutory Statements of Operations for unrealized loss on securities related to these issuers.

“Concern List”- Management has concluded that the Company’s amortized cost will be recovered through timely collection of all contractually specified cash flows, but that changes in issuer-specific facts and circumstances require monitoring on a quarterly basis. The likelihood of future non‐repayment is considered above average but not probable. For loan‐backed and structured securities, a principal loss would be projected under a stress model scenario. No OTTI charge is recorded in the Company’s Statutory Statements of Operations for unrealized loss on securities related to these issuers.

“High Concern”- Management has concluded that the Company’s amortized cost will be recovered through timely collection of all contractually specified cash flows, but that changes in issuer-specific facts and circumstances require continued monitoring. A security is moved from the Concern List to the High Concern List when changes in issuer-specific facts and circumstances increase the possibility that a security may become impaired. The likelihood of future non‐repayment is considered probable. For loan‐backed and structured securities, a principal loss would be projected under a base case model scenario. No OTTI charge is recorded in the Company’s Statutory Statements of Operations for unrealized loss on securities related to these issuers.

“Default List”- A security that is not current with respect to principal and interest or was issued by a company that has entered bankruptcy subsequent to acquisition or experienced a significant credit downgrade. Management has concluded the amortized cost basis of the security may not be recovered due to expected delays or shortfalls in the contractually specified cash flows. For these investments, the amount of OTTI recognized in the Company’s Statutory Statements of Operations is the difference between the amortized cost basis of the security and its fair value or present value of discounted cash flows dependent on the degree of impairment.

Should it be determined that a security is other than temporarily impaired, the Company records a loss through an appropriate adjustment in carrying value. During the year ended December 31, 2021, ~~the Company... During the year ended~~ and December 31, 2020, the Company did not incur any OTTI.

There are inherent risks and uncertainties in management’s evaluation of securities for OTTI. These risks and uncertainties include factors both external and internal to the Company, such as general economic conditions, an issuer’s financial condition or near-term recovery prospects, market interest rates, unforeseen events which affect one or more issuers or industry sectors, and portfolio management parameters, including asset mix, interest rate risk, portfolio diversification, duration matching, and greater than expected liquidity needs. All of these factors could impact management’s evaluation of securities for OTTI.

4858

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

~~Temporary~~portfolio ~~impairments~~management parameters, including asset mix, interest rate risk, portfolio diversification, duration matching, and greater than expected liquidity needs. All of these factors could impact management’s evaluation of securities for OTTI.

The gross unrealized losses and fair value of investments, ~~which have been deemed temporarily impaired,~~ aggregated by investment category, number of securities and length of time that securities have been in an unrealized loss position at December 31, 2021 and 2020 were as follows:

December 31, 2021	Less than 12 months					12 months or more						Total
($'s in thousands, except # of securities)	#	Fair Value		Unrealized Losses		#		Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses
U.S. governments	—10	$	—117,613	$	—(5,930)	—2		$	—2	$	—	—12	$	—117,615	$	—(5,930)
U.S. political subdivisions	—	—		—		—		—		—		—	—		—
All other governments	1	3,596		(404)		—		—		—		1	3,596		(404)
Special revenue	—	—		—		—		—		—		—	—		—
U.S. political subdivisions	4	7,607		(94)		—		—		—		4	7,607		(94)
Industrial and miscellaneous	—	—		—		—		—		—		—	—		—
Special revenue	115	554,998		(10,969)		13		34,909		(2,314)		128	589,907		(13,283)
Hybrids	—	—		—		—		—		—		—	—		—
Industrial and miscellaneous	504	1,625,710		(35,348)		91		236,784		(12,453)		595	1,862,494		(47,801)
Total bonds	—	$	—	$	—	—	—	$	—	$	—	—	$	—	$	—
Hybrids	6	7,996		(88)		2		17,507		(956)		8	25,503		(1,044)
Total bonds	640	$	2,317,520	$	(52,833)	108		$	289,202	$	(15,723)	748	$	2,606,722	$	(68,556)


December 31, 2020	Less than 12 months					12 months or more					Total
($'s in thousands, except # of securities)	#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses

U.S. governments	12	$	499,226	$	(497)	—	$	—	$	—	12	$	499,226	$	(497)
All other governments	—	—		—		—	—		—		—	—		—
U.S. political subdivisions	3	9,395		(42)		—	—		—		3	9,395		(42)
Special revenue	37	89,577		(1,132)		12	103		(2)		49	89,680		(1,134)
Industrial and miscellaneous	246	599,410		(21,058)		21	57,188		(5,255)		267	656,598		(26,313)
Hybrids	12	42,526		(1,209)		1	8,663		(1,238)		13	51,189		(2,447)
Total bonds	310	$	1,240,134	$	(23,938)	34	$	65,954	$	(6,495)	344	$	1,306,088	$	(30,433)

~~Exposure~~Repurchase Agreements In 2021, the Company entered into repurchase agreements. Repurchase agreements are accounted for as secured borrowings within the liabilities section of the financial statements. In a repurchase agreement, the company receives cash and incurs a liability to ~~Subprime~~return those funds, plus interest, at a specified future date. These agreements are normally short term in nature and ~~Alt-A~~assets ~~mortgages~~are restricted as collateral. All transactions are documented under Master Repurchase Agreements (MRA) or Global MRA and are accounted for in the Company's books and records. In order to mitigate the credit risk and replacement risk associated with such agreements, repurchase transactions are diversified across multiple counterparties. Each counterparty is approved through a formal credit process, monitored daily, and reviewed periodically via Goldman Sachs Asset Management (GSAM) Counterparty Risk Committee.Repurchase transactions are generally collateralized by Treasuries, Agency Debentures, Agency MBS, IG Corporates and Municipals with a haircut at or below 5% in favor of the counterparties. The securities posted as collateral are priced daily and if the need arises margin is moved the same day to maintain a proper collateralization. The holdings of the investment portfolio are monitored closely to ensure adequate excess of eligible collateral for the margining process.

Subprime mortgages are residential loans to borrowers with weak credit profiles. Alt-A mortgages are residential loans to borrowers who generally have credit profiles above subprime but do not conform to traditional (“prime”) mortgage underwriting guidelines. The Company has invested in certain mortgage-backed and structured securities that include exposure to subprime and other below-prime mortgage loans. These investments are included in bonds in the Statutory Statements of Admitted Assets and are generally reported at amortized cost.59

The Company has a comprehensive portfolio monitoring process. No impairments were recorded in the subprime or Alt-A portfolio in 2020 or 2019. X impairments were recorded in the subprime or Alt-A portfolio in 2021. The Company’s practice for acquiring and monitoring subprime and Alt-A securities takes into consideration the quality of the originator, quality of the servicer, security credit rating, underlying characteristics of the mortgages, borrower characteristics, level of credit enhancement in the transaction, and bond insurer strength, where applicable. The originators and servicers of the underlying mortgage loans are primarily subsidiaries of large banks and brokers.

The Company had no indirect exposure to subprime and Alt-A loans as of December 31, 2020. The Company had/had no exposure to subprime and Alt-A loans as of December 31, 2021.

4. MORTGAGE LOANS

The Company invests in commercial first lien mortgage loans throughout the United States. Investments are diversified by property type and geographic area. The Company monitors the condition of the mortgage loans in its portfolio. In those cases where mortgages have been restructured, appropriate allowances for losses have been made. In those cases where, in management’s judgment, the mortgage loans’ values are impaired, appropriate losses are recorded.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

These repurchase agreements are Tri-party between Lincoln Benefit, GSAM, and bank counterparties. The following table describes the maximum and ending balance for each maturity time frame:

The geographical distribution of the statement value of the mortgage loans portfolio as of December 31, 2021 and 2020 was as follows:


($'s in thousands)	Unaudited First Quarter		Unaudited Second Quarter		Unaudited Third Quarter		Fourth Quarter
At December 31, 2021
Maximum Amount
Open – No Maturity	$	—	$	—	$	—	$	—
Overnight	—		—		—		—
2 Days to 1 Week	—		—		—		—
> 1 Week to 1 Month	—		—		—		—
> 1 Month to 3 Months	—		—		—		—
> 3 Months to 1 Year	49,569		129,407		156,946		244,987
> 1 Year	—		—		—		—

Ending Balance
Open – No Maturity	$	—	$	—	$	—	$	—
Overnight	—		—		—		—
2 Days to 1 Week	—		—		—		—
> 1 Week to 1 Month	—		—		—		—
> 1 Month to 3 Months	—		—		—		—
> 3 Months to 1 Year	47,561		129,407		143,409		237,887
> 1 Year	—		—		—		—
Total Ending Balance	$	47,561	$	129,407	$	143,409	$	237,887

There were no repurchase agreements outstanding for Lincoln Benefit in 2020.

($'s in thousands)	December 31, 2021		December 31, 2020
Alabama	$	—	$	—
Arizona	—		35,159
California	—		128,227
Colorado	—		91,680
Florida	—		63,703
Georgia	—		27,300
Hawaii	—		1,505
Illinois	—		55,093
Iowa	—		—
Massachusetts	—		15,102
Minnesota	—		22,060
Nevada	—		13,119
New Jersey	—		32,487
New York	—		46,703
North Carolina	—		29,887
Ohio	—		11,846
Pennsylvania	—		70,340
South Carolina	—		23,717
Texas	—		53,310
General Allowance	—		—
Total mortgage loans	$	—	$	721,238

Outstanding commitments on certain mortgage loans held in the investment portfolio to finance property improvements on underlying real estate totaled $XX.X million and $65.9 million at December 31, 2021 and 2020, respectively.

During 2021, the maximum and minimum lending rates were X.XX% and X.XX%, respectively. The maximum and minimum lending rates for commercial mortgage loans during 2020 were 4.96% and 3.01%, respectively. During the year ended December 31, 2020, the Company did not reduce interest rates on any outstanding mortgage loans. During the year ended December 31, 2021, the Company did/did not reduce rates on any outstanding mortgage loans. Mortgage loans are collateralized by the related properties and did not exceed XX% of the properties’ value at the time the original loan was made in 2021 and 74% in 2020.

A loan is considered impaired when it is probable that the principal or interest is not collectible in accordance with the contractual terms of the loan. The allowance for credit losses is estimated using the present value of expected cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral dependent. A specific allowance for loan loss is established for an impaired loan if the present value of expected cash flows discounted at the loan’s effective interest rate, or the fair value of the loan collateral, less cost to sell, is less than the recorded amount of the loan. During the year ended December 31, 2020, no loans were impaired or past due. During the year ended December 31, 2021, XX loans were impaired or past due.

A general allowance for loan loss is established based on an assessment of past loss experience on groups of loans with similar characteristics and current economic conditions. While management believes that it uses the best information available to establish the allowances, future adjustments may become necessary if economic conditions differ from the assumptions used in calculating them. There was XX general allowance for loan loss at December 31, 2021 and no general allowance for loan loss at December 31, 2020.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The following table details the securities "sold" under repurchase agreements:

As of December 31, 2020, the Company held no restructured loans. As of December 31, 2021, the Company held/did not hold any restructured loans. Should the Company hold any troubled debt, the Company may modify the terms of a loan by adjusting the interest rate, extending the maturity date, or both.

($'s in thousands)

Unaudited First Quarter

Unaudited Second Quarter

Unaudited Third Quarter

Fourth
Quarter

At December 31, 2021

Maximum Amount:

Book Adjusted Carry Value

XXX

Non-admitted

XXX

Fair Value

52,883

132,451

144,311

241,940

Ending Balance:

Book Adjusted Carry Value

XXX

Non-admitted

XXX

Fair Value

49,275

132,451

144,311

241,940

There were no securities "sold" under repurchase agreements in 2020.

The following table details the type and designation for securities "sold" under repurchase agreements:

The Company accrues interest income on impaired loans to the extent it is deemed collectible, assuming it is delinquent less than 180 days and the loan continues to perform under its original or restructured contractual terms. Interest income is recognized on impaired mortgage loans upon receipt.


	NAIC 1		NAIC 2		Total
At December 31, 2021
Bonds – Book Adjusted Carry Value	$	145,117	$	92,391	$	237,508
Bonds – FV	$	149,695	$	92,245	$	241,940

There were no securities "sold" under repurchase agreements in 2020.

The credit quality indicator for the Company’s mortgage loans is a risk-rated measure based on the borrowers’ ability to pay and the value of the underlying collateral. The Commercial Mortgage Loan risk rating is related to an increasing likelihood of loss, with lower quality ratings representing the category in which losses may be expected. It is used in measuring relative risk for the Asset Valuation Reserve calculation. The statement value of the Company’s mortgage loans, net of allowances for credit losses, by credit quality indicator as of December 31, 2021 and 2020 was as follows:61

($'s in thousands)	December 31, 2021		December 31, 2020
CM1 - Highest Quality	$	—	$	459,851
CM2 - High Quality	—		197,068
CM3 - Medium Quality	—		34,431
Total commercial mortgage loans	$	—	$	691,350
Residential mortgage loans	—		29,888
Total mortgage loans	$	—	$	721,238

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

4. MORTGAGE LOANS

The Company invests in first lien commercial mortgage loans throughout the United States. Investments are diversified by property type and geographic area. The Company monitors the condition of the mortgage loans in its portfolio. In those cases where mortgages have been restructured, appropriate allowances for losses have been made. In those cases where, in management’s judgment, the mortgage loans’ values are impaired, appropriate losses are recorded.

The geographical distribution of the statement value of the mortgage loans portfolio as of December 31, 2021 and 2020 was as follows:


($'s in thousands)	December 31, 2021		December 31, 2020


Arizona	34,253		35,159
California	77,960		128,227
Colorado	51,009		91,680
Florida	23,228		63,703
Georgia	106,405		27,300
Hawaii	218		1,505
Illinois	54,114		55,093

Massachusetts	14,604		15,102
Minnesota	37,560		22,060
Nevada	13,860		13,119
New Jersey	52,676		32,487
New York	89,807		46,703
North Carolina	178,920		29,887
Ohio	—		11,846
Pennsylvania	71,060		70,340
South Carolina	23,325		23,717
Texas	11,700		53,310

Total mortgage loans	$	840,699	$	721,238

Outstanding commitments on certain mortgage loans held in the investment portfolio to finance property improvements on underlying real estate totaled $66.2 million and $65.9 million at December 31, 2021 and 2020, respectively.

During 2021, the maximum and minimum lending rates were 10.48% and 2.54%, respectively. The maximum and minimum lending rates for commercial mortgage loans during 2020 were 4.96% and 3.01%, respectively. During the years ended December 31, 2021 and 2020, the Company did not reduce interest rates on any outstanding mortgage loans. Mortgage loans are collateralized by the related properties and did not exceed 73% and 74% of the properties’ value at the time the original loan was made in 2021 and 2020, respectively.

A loan is considered impaired when it is probable that the principal or interest is not collectible in accordance with the contractual terms of the loan. The allowance for credit losses is estimated using the present value of expected cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral dependent. A specific allowance for loan loss is established for an impaired loan if the present value of expected cash flows discounted at the loan’s effective interest rate, or the fair value of the loan collateral, less cost to sell, is less than the recorded amount of the loan. During the years ended December 31, 2021 and 2020, no loans were impaired or past due.

A general allowance for loan loss is established based on an assessment of past loss experience on groups of loans with similar characteristics and current economic conditions. While management believes that it uses the best information available to establish the allowances, future adjustments may become necessary if economic conditions differ from the assumptions used in calculating them. There was no general allowance for loan loss at December 31, 2021 or 2020.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

As of December 31, 2021, and 2020, the Company held no restructured loans. Should the Company hold any troubled debt, the Company may modify the terms of a loan by adjusting the interest rate, extending the maturity date, or both.

The credit quality indicator for the Company’s mortgage loans is a risk-rated measure based on the borrowers’ ability to pay and the value of the underlying collateral. The commercial mortgage loan risk rating is related to an increasing likelihood of loss, with lower quality ratings representing the category in which losses may be expected. It is used in measuring relative risk for the Asset Valuation Reserve calculation. The statement value of the Company’s mortgage loans, net of allowances for credit losses, by credit quality indicator as of December 31, 2021 and 2020 was as follows:


($'s in thousands)	December 31, 2021		December 31, 2020

CM1 - Highest Quality	$	414,497	$	459,851
CM2 - High Quality	196,696		197,068
CM3 - Medium Quality	62,386		34,431
Total commercial mortgage loans	$	673,579	$	691,350

Residential mortgage loans	167,120		29,888
Total mortgage loans	$	840,699	$	721,238

5. INVESTMENT GAINS AND LOSSES

Realized capital gains and losses on debt securities, mortgages and derivatives which relate to changes in levels of interest rates are charged or credited to the IMR, net of tax, and amortized into income over the remaining contractual life of the security sold. Realized gains and losses from the remaining investments are reported, net of tax, on the Statutory Statements of Operations, but are not included in the computation of net gain from operations. Realized capital gains and losses are recognized on a specific identification basis.

Net realized gains and losses recognized through the Statutory Statements of Operations for the years ended December 31, 2021, 2020 and 2019 were comprised of the following:

($'s in thousands)		2021		2020		2019
Debt securities		$	—125,693	$	218,768	$	115,958
Mortgage loans		—62		1,032		474
Cash, cash equivalents and short-term investments		—29		27		(1)
Derivative instruments		—6,928		9,573		8,268
Other invested assets		—701		825		267
Subtotal		—133,413		230,225		124,966
Capital gains tax expense		—20,979		58,265		344
Net realized gains (losses)		—112,434		171,960		124,622
Gains transferred to IMR (net of taxes)		—(98,777)		(174,261)		(102,998)
	Total	$	—13,657	$	(2,301)	$	21,624

Realized capital gains and losses ~~for 2021… Realized capital gains and losses~~ did not include any OTTI for 2021 or 2020. Realized capital gains and losses included $3.1 million of other than temporary impairment losses related to debt securities for the year ended December 31, 2019.

Changes in unrealized gains and losses from investments are reported as a component of Capital and Surplus, net of deferred income taxes, and were as follows for the years ended December 31, 2021, 2020 and 2019:63

($'s in thousands)	2021		2020		2019
Common stock	$	—	$	40	$	—
Common stocks of affiliates	—		(70,778)		(61,355)
Derivative instruments	—		(2,745)		15,281
Other invested assets	—		1,805		200
Total	$	—	$	(71,678)	$	(45,874)

There was no deferred tax netted in the above for the years ended December 31, 2021, 2020 or 2019.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021


($'s in thousands)	2021		2020		2019

Common stock	$	377	$	40	$	—
Common stocks of affiliates	(69,665)		(70,778)		(61,355)
Preferred stock	4,510		—		—
Derivative instruments	(1,029)		(2,745)		15,281
Other invested assets	5,496		1,805		200
Total	$	(60,311)	$	(71,678)	$	(45,874)

6.NET INVESTMENT INCOME

Net investment income for the years ended December 31, 2021, 2020 and 2019 consisted of:

($'s in thousands)	2021		2020		2019
Debt securities	$	—321,509	$	284,535	$	322,129
Equity securities	—12,839		2,890		—
Mortgage loans	—36,954		28,384		37,239
Contract loans	—1,702		1,738		6,245
Cash, cash equivalents and short-term investments	—2,541		2,500		4,041
Other invested assets	—13,570		8,785		7,933
Gross investment income	—389,115		328,832		377,587
Interest expenses	—19,974		5,880		10,637
Third party administration costs	—30,939		30,400		13,150
Other investment expenses	—(268)		502		434
Net investment income before IMR amortization	—338,470		292,050		353,366
IMR amortization	—39,020		133,498		28,967
Total net investment income	$	—377,490	$	425,548	$	382,333

The Company’s policy is to exclude investment income due and accrued with amounts that are over 90 days past due for investments other than mortgage loans and over 180 days past due for mortgage loans or where the collection of interest is uncertain. NoInvestment ~~investment~~ income due and accrued of $0.1 million was excluded from surplus at December 31, ~~2020~~2021. No XX investment income due and accrued was excluded from surplus at ~~December 31, 2021~~2020.

7. DERIVATIVES

Derivative financial instruments utilized by the Company included index options, futures contracts and interest rate swaps. The notional amounts specified in the contracts are used to calculate contractual payments under the agreements and are generally not representative of the potential for gain or loss on these contracts.

Market risk is the risk that the Company will incur losses due to adverse changes in market prices or rates. Market risk exists for all of the derivatives that the Company holds. To limit this risk, the Company's senior management has established risk control limits.

Counterparty credit risk relates to the Company's potential loss if counterparties concurrently fail to perform under the contractual terms of the contracts. The Company manages its exposure to counterparty credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master agreements and obtaining collateral where appropriate. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. The above derivatives are traded on organized exchanges, which require margin deposits and guarantee the execution of trades, thereby mitigating potential credit risk. At December 31, 2021, the Company had $XXX cash collateral from counterparties related to organized exchanges. At December 31, 2020, the Company had negligible cash collateral from counterparties related to organized exchanges.64

The Company uses derivatives to economically hedge the risks with certain assets and liabilities arising from potential adverse impacts from changes in risk-free interest rates and equity markets. The Company does not use derivatives for speculative purposes.

The paragraphs below describe the derivatives the Company uses, including the objectives, cash requirements and accounting policies.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

Counterparty credit risk relates to the Company's potential loss if counterparties concurrently fail to perform under the contractual terms of the contracts. The Company manages its exposure to counterparty credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master agreements and obtaining collateral where appropriate. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. The derivatives are traded on organized exchanges, which require margin deposits and guarantee the execution of trades, thereby mitigating potential credit risk. At December 31, 2021, the Company had $0.1 million in cash collateral from counterparties related to organized exchanges. At December 31, 2020, the Company had negligible cash collateral from counterparties related to organized exchanges.

The paragraphs below describe the derivatives the Company uses, including the objectives, cash requirements and accounting policies.

Futures

The Company utilizes equity index futures contracts. Futures contracts are defined as commitments to buy or sell designated financial instruments based on specified prices, yields or indexes. Futures contracts provide returns based upon a specified index or interest rate applied to a notional amount. The Company uses futures to hedge exposures in annuity and life contracts. Daily cash settlement of variation margins is required for futures contracts and is based on the changes in daily prices. The final settlement of futures contracts is in cash.

Options

The Company also uses equity index options. Index option contracts provide returns at specified or optional dates based on a specified index applied to the option's notional amount. The Company purchases and writes (sells) option contracts primarily to reduce market risk associated with certain annuity and life contracts. When the Company purchases/sells option contracts at specific prices, it is required to pay/receive a premium to/from the counterparties. The amount of premium paid/received is based on the number of contracts purchased/sold, the specified price and the maturity date of the contract. The Company pays/receives cash equal to the premium of purchased/written options when the contract is established. Premiums paid are reported as a derivative asset and premiums received are reported as a derivative liability. The change in the fair value of option contracts is reported as change in surplus, with an adjustment to derivatives. If the option is exercised, the Company receives/pays cash equal to the product of the number of contracts and the specified price in the contract with the gain or loss on settlement reported in realized gain or loss. If the options are not exercised and the contracts expire, then no additional cash is exchanged and the remaining book value is offset to realized gain or loss.

Swaps

The Company employs interest rate swaps to hedge interest rate risk related to investments purchased to support annuity contracts. An interest rate swap is an agreement between two counterparties in which one stream of future interest payments is exchanged for another. Interest rate swaps usually involve the exchange of a fixed interest rate for a floating rate, or vice versa, to reduce or increase exposure to fluctuations in interest rates, or to obtain a marginally lower interest rate. Swaps provide returns at the reset dates based on respective interest rates applied to the notional amount with the net difference in resulting interest payments settled between the counterparties. The Company purchases/sells swap contracts at specific prices and pays/receives a premium to/from the counterparties. The amount of premium paid/received is based on the number of contracts purchased/sold and the specified price based on the interest rates used and other terms of the contract. The Company pays/receives cash equal to the premium of the purchased/written swap when the contract is established. Premiums paid are reported as a derivative asset and premiums received are reported as a derivative liability. The change in the fair value of the swap is reported as change in surplus, with an adjustment to derivatives. Cash flows received/paid at the reset dates are reported in net investment income and consist of any differences in the amounts of contractual interest calculated due to the respective counterparties based on changes in interest rates. Swaps usually terminate upon expiration and the remaining book value is offset to realized gain or loss. If terminated ~~through sale, the difference between consideration received or paid and the remaining book value is recorded to realized gain or loss.~~

~~The Company did not report any derivatives as accounting hedges as of December 31, 2020. The Company did/did not report any derivatives as accounting hedges as of December 31, 2021.~~ 65

All derivative transactions are covered under standardized contractual agreements with counterparties, all of which include credit-related contingent features. Certain counterparty relationships also may include supplementary agreements with tailored terms, such as additional triggers for early terminations, acceptable practices related to cross-transaction netting, and minimum thresholds for determining collateral. Credit-related triggers include failure to pay or deliver on an obligation past certain grace periods, bankruptcy or the downgrade of credit ratings to below a stipulated level. These triggers apply to both the Company and its counterparty.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

through sale, the difference between consideration received or paid and the remaining book value is recorded to realized gain or loss.

The Company did not report any derivatives as accounting hedges as of December 31, 2021, 2020 or 2019.

Derivatives are carried in accordance with SSAP No. 86, “Derivatives.” The Company’s underlying notional or principal amounts and gross fair values as of December 31, 2021 and 2020 were as follows:

		December 31, 2021								December 31, 2020
		Notional				Gross Fair Value				Notional				Gross Fair Value
($'s in thousands)		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
	Options	$	—84,000	$	—78,355	$	—9,088	$	—4,441	$	99,725	$	96,200	$	17,949	$	(9,032)

8. REINSURANCE

Reinsurance ceded contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreement. To minimize its exposure to significant losses from reinsurer insolvencies, the Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of credit risk. Management believes that any liability arising from this contingency is unlikely. Everlake, formerly ALIC, represents over ~~XX% and~~ 41% of the Company’s ceded reserves as of December 31, 2021 and December 31, 2020, respectively.

The Company has agreements with several unrelated companies, which provide for reinsurance of portions of the net-amount-at-risk under certain policies. These amounts are reinsured on either a yearly renewable term, coinsurance or modified coinsurance basis. The Company’s modified coinsurance reserves (general account only) were $~~XXX~~224.X0 million and $319.9 million as of December 31, 2021 and 2020, respectively.

The existing reinsurance agreements are subject to risk transfer as defined under SSAP No. 61R Life, Deposit-Type and Accident and Health Reinsurance and supplemented by A-791 Life and Health Reinsurance Agreements. The Company has not entered into any reinsurance contracts that would limit the reinsurer’s assumption of significant risk or contain provisions that delay recording or reimbursement of losses. All contracts settle quarterly, at a minimum. There is one modified coinsurance – monthly renewable term agreement with Hannover covering certain life and annuity business that provides protection over excess losses effectuated through an experience refund mechanism. Reinsurance accounting has been applied with a credit recorded for reserves. In establishing the reserve credit, the Company has considered all underlying business assumptions including contract terms that could limit the assumed liability by the reinsurer. While there is sufficient risk transfer for SAP, the likelihood of GAAP net risk transfer is small enough to merit the differential accounting treatment with GAAP reporting this treaty under deposit accounting.

On December 10, 2020, the Company recorded the receipt of an initial ceding commission of $82.3 million (before taxes of $17.3 million) as a result of an indemnity reinsurance agreement between the Company and COUNTRY Life Insurance Company, a life insurance company domiciled in Illinois. This amount was deferred in surplus in accordance with statutory accounting principles as defined in Account Practices and Procedures Manual Appendix A-791, paragraph 3 which limits the first year of recognition to the effective tax rate or 21%, resulting in an unamortized balance of $65.0 million in surplus at December 31, 2020. Amortization of $4.1 million was recorded in 2021 resulting in an unamortized balance in surplus of $60.9 million at December 31, 2021. The deferred ceding commission is amortized over the period under which earnings emerge from the business reinsured.

5566

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The effects of reinsurance were as follows for the years ended December 31, 2021, 2020 and 2019:

($'s in thousands)	2021		2020		2019
Insurance and other individual policy benefits and claims*:
Direct	$	—1,405,473	$	1,358,482	$	1,395,622
Assumed	—53,608		9,981		5,957
Ceded	—(1,298,319)		(1,189,042)		(1,285,691)
Net policy benefits and claims	$	—160,762	$	179,421	$	115,888
*Excludes surrender benefits
($'s in thousands)	2021		2020		2019
Premiums and annuity considerations:
Direct	$	—1,263,057	$	1,107,254	$	1,256,891
Assumed	—42,987		1,462,753		4,949
Ceded - affiliated	—(225,024)		(1,193,599)		(1,423,211)
Ceded - other non-affiliated	—(1,237,466)		(1,098,747)		(751,986)
Net premiums and annuity considerations	$	—(156,446)	$	277,661	$	(913,357)

The Company ~~wrote~~did not write off any uncollectible reinsurance balances ofdue ~~$X.X million~~ for the year ended December 31, 2021. The Company wrote off uncollectible reinsurance balances of $2.0 million for the year ended December 31, 2020. The Company did not write off any uncollectible reinsurance balances due for the year ended December 31, 2019.

On March 6, 2019, Scottish Re was put into receivership by the Delaware Department of Insurance (the “Receiver”). The Receiver filed a petition for approval of a rehabilitation plan on June 30, 2020 which remains under review by all interested parties including the courts. Our reserve credit with respect to Scottish Re treaties is approximately $X2.X5 million as of December 31, 2021. The Company has not established an allowance or written off any amounts with respect to these treaties during ~~2020.~~2021 ~~The Company has/has not established an allowance~~ or ~~written off any amounts with respect to these treaties during 2021~~2020. Reinsurance premium due to Scottish Re has been offset against the outstanding claim recoverables. A nonadmitted asset of approximately $X7.X4 million has been recorded with regards to reinsurance recoverables as of December 31, 2021 and $6.5 million as of December 31, 2020.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

For the years ended December 31, 2021, 2020 and 2019, the Company had the following experience as a result of the commutation/recapture of ceded reinsurance:

($'s in thousands)	2021		2020		2019
(1) Claims incurred	$	—17,813	$	2,317	$	—
(2) Claims adjustment expenses incurred	—		—		—
(3) Premiums earned	—(15,233)		(6,400)		539,191
(4) Other	—		—		—
Reserve Adjustment on Reinsurance Ceded	—(2,517)		13,661		(539,191)
Commission and expense allowance	—$	579	56$	56	—$	—
	$	642	$	9,635	$	—
(5) Company
Hannover Life Reassurance Company of America	$	(29)	$	(32)	$	—
RGA Reinsurance Company	—		9,667		—
SCOR SE	671		—		—
	$	642	$	9,635	$	—

5668

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

9.RESERVES FOR LIFE CONTRACTS AND DEPOSIT TYPE CONTRACTS

The reserves for life insurance and annuity contracts are computed in accordance with presently accepted actuarial standards, and are based on actuarial assumptions and methods (including use of published mortality tables and prescribed interest rates and methodologies) which produce reserves at least as great as those required by law and contract provisions.

Deduction of deferred fractional premiums upon death of the insured and return of any portion of the final premium for the period beyond the date of death are not applicable to the business of the Company. Surrender values are not promised in excess of reserves legally computed.

For traditional life contracts, the cost of additional mortality for each policy is assumed to equal the additional premium charged for that policy period and is reserved accordingly. Additional premiums are collected for policies issued on substandard lives. Reserves are held in a manner consistent with traditional policies. For interest-sensitive policies, substandard mortality is reflected in the cost of insurance charges.

As of December 31, 2021, 2020 and 2019, the Company had $X4,123.X5 ~~billion~~million, $4,351.41 ~~billion~~million and $4,737.78 ~~billion~~million of direct insurance in force for which gross premiums were less than the net premiums according to the standard of valuation required by the State of Nebraska, respectively. Deficiency reserves above base contract reserves as of December 31, 2021 and 2020 totaled $XX72.X9 million and $72.03 million, respectively.

The Tabular Interest has been determined by formula as described in the NAIC instructions, except for some business for which the Tabular Interest is determined from basic policy data for reserving. The Tabular less Actual Reserve Released has been determined by formula as described in the NAIC instructions. The Tabular Cost has been determined by formula as described in the NAIC instructions, except for universal life products which use cost of insurance and some business which uses basic policy data for reserving. The Tabular Interest on funds not involving life contingencies was determined from the interest credited to the deposits, except for certain guaranteed interest contracts for which Tabular Interest on funds is determined by formula as described in the instructions.

~~The~~There ~~Company~~were ~~did~~no ~~not record an~~ additional ~~reserve~~reserves ~~related~~recorded ~~to additional capital requirements~~ for ~~life business for~~ the ~~years~~year ended December 31, ~~2020.~~2021 ~~The~~or ~~Company did/did not record an additional reserve of $XX related to additional capital requirements for life business for the years ended~~ December 31, ~~2021~~2020.

The Company recorded no premium deficiency reserves related to accident and health contracts for the years ended December 31, 2021 and 2020.

Other reserve changes in 2021 were as follows:

The Company recorded no premium deficiency reserves related to accident and health contracts for the year ended December 31, 2020. The Company recorded/did not record a premium deficiency reserve related to accident and health contracts for the year ended December 31, 2021.


2021					Ordinary								Group
Item	Total		Industrial Life		Life Insurance		Individual Annuities		Supplementary Contracts		Credit Life Group and Individual		Life Insurance		Annuities
DA MVAA Change in Reserve Methodology	$	(5,766)	$	—			$	(2,901)	$	—	$	—	$	—	$	(2,866)

3106999 Total	$	(5,766)	$	—	$	—	$	(2,901)	$	—	$	—	$	—	$	(2,866)

There were no other reserve changes in 2020.

5769

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The withdrawal characteristics of general account and separate account life reserves and deposits as of December 31, 2021 and 2020 were as follows:

	December 31, 2021
	($'s in thousands)
A.	General Account			Account Value		Cash Value		Reserve
	(1)	Subject to discretionary withdrawal, surrender values or policy loans:
		a.	Term policies with cash value	$	—	$	—17,397	$	—54,763
		b.	Universal life	—851,706		—851,619		—860,016
		c.	Universal life with secondary guarantees	—3,728,318		—3,119,469		—6,746,883
		d.	Indexed universal life	—65,573		—56,422		—60,888
		e.	Indexed universal life with secondary guarantees	—680,367		—472,510		—559,558
		f.	Indexed life	—		—		—
		g.	Other permanent cash value life insurance	—		—45,700		—60,218
		h.	Variable life	—		—		—
		i.	Variable universal life	—108,205		—107,088		—117,413
		j.	Miscellaneous reserves	—		—		—72,387
	(2)	Not subject to discretionary withdrawal or no cash values
		a.	Term policies without cash value	XXX		XXX		—3,286,376
		b.	Accidental death benefits	XXX		XXX		—141
		c.	Disability - active lives	XXX		XXX		—866
		d.	Disability - disabled lives	XXX		XXX		—27,372
		e.	Miscellaneous reserves	XXX		XXX		—54,090
	(3)	Total (gross: direct + assumed)		—5,434,169		—4,670,205		—11,900,971
	(4)	Reinsurance ceded		—5,155,299		—4,395,062		—11,610,893
	(5)	Total (net) (3 minus 4)		$	—278,870	$	—275,143	$	—290,078
B.	Separate Account with Guarantees			Account Value		Cash Value		Reserve
	(1)	Subject to discretionary withdrawal, surrender values or policy loans:
		a.	Term policies with cash value	$	—	$	—	$	—
		b.	Universal life	—		—		—
		c.	Universal life with secondary guarantees	—		—		—
		d.	Indexed universal life	—		—		—
		e.	Indexed universal life with secondary guarantees	—		—		—
		f.	Indexed life	—		—		—
		g.	Other permanent cash value life insurance	—		—		—
		h.	Variable life	—		—		—
		i.	Variable universal life	—		—		—
		j.	Miscellaneous reserves	—		—		—
	(2)	Not subject to discretionary withdrawal or no cash values
		a.	Term policies without cash value	XXX		XXX		—
		b.	Accidental death benefits	XXX		XXX		—
		c.	Disability - active lives	XXX		XXX		—
		d.	Disability - disabled lives	XXX		XXX		—
		e.	Miscellaneous reserves	XXX		XXX		—
	(3)	Total (gross: direct + assumed)		—		—		—
	(4)	Reinsurance ceded		—		—		—
	(5)	Total (net) (3 minus 4)		$	—	$	—	$	—

5870

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

C.	Separate Account Nonguaranteed			Account Value		Cash Value		Reserve
	(1)	Subject to discretionary withdrawal, surrender values or policy loans:
		a.	Term policies with cash value	$	—	$	—	$	—
		b.	Universal life	—		—		—
		c.	Universal life with secondary guarantees	—		—		—
		d.	Indexed universal life	—		—		—
		e.	Indexed universal life with secondary guarantees	—		—		—
		f.	Indexed life	—		—		—
		g.	Other permanent cash value life insurance	—		—		—
		h.	Variable life	—		—		—
		i.	Variable universal life	—1,301,107		—1,286,676		—1,297,569
		j.	Miscellaneous reserves	—		—		—
	(2)	Not subject to discretionary withdrawal or no cash values
		a.	Term policies without cash value	XXX		XXX		—
		b.	Accidental death benefits	XXX		XXX		—
		c.	Disability - active lives	XXX		XXX		—
		d.	Disability - disabled lives	XXX		XXX		—
		e.	Miscellaneous reserves	XXX		XXX		—
	(3)	Total (gross: direct + assumed)		—1,301,107		—1,286,676		—1,297,569
	(4)	Reinsurance ceded		—		—		—
	(5)	Total (net) (3 minus 4)		$	—1,301,107	$	—1,286,676	$	—1,297,569
D.				Amount
	Life and Accident and Health Annual Statement:
	1.	Exhibit 5, Life Insurance Section, Total (net)		$	—287,992
	2	Exhibit 5, Accidental Death Benefits Section, Total (net)		—3
	3	Exhibit 5, Disability - Active Lives Section, Total (net)		—1
	4	Exhibit 5, Disability - Disabled Lives Section, Total (net)		—481
	5	Exhibit 5, Miscellaneous Reserves Section, Total (net)		—1,601
	6	Subtotal		—290,078
	Separate Accounts Annual Statement:
	7	Exhibit 3,line 0199999, Column 2		—1,297,569
	8	Exhibit 3,line 0499999, Column 2		—
	9	Exhibit 3,line 0599999, Column 2		—
	10	Subtotal (Lines 7 through 9)		—1,297,569
	11	Combined Total (Lines 6 plus 10)		$	—1,587,647

5971

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021


	December 31, 2020
	($'s in thousands)
A.	General Account			Account Value		Cash Value		Reserve
	(1)	Subject to discretionary withdrawal, surrender values or policy loans:
		a.	Term policies with cash value	$	—	$	14,772	$	52,105
		b.	Universal life	878,962		878,841		886,288
		c.	Universal life with secondary guarantees	3,742,939		3,026,759		6,466,111
		d.	Indexed universal life	63,616		53,455		58,240
		e.	Indexed universal life with secondary guarantees	622,424		393,754		499,851
		f.	Indexed life	—		—		—
		g.	Other permanent cash value life insurance	—		6,206		9,038
		h.	Variable life	—		—		—
		i.	Variable universal life	103,299		89,204		112,688
		j.	Miscellaneous reserves	—		34,052		121,412
	(2)	Not subject to discretionary withdrawal or no cash values
		a.	Term policies without cash value	XXX		XXX		3,418,123
		b.	Accidental death benefits	XXX		XXX		145
		c.	Disability - active lives	XXX		XXX		969
		d.	Disability - disabled lives	XXX		XXX		27,204
		e.	Miscellaneous reserves	XXX		XXX		53,197
	(3)	Total (gross: direct + assumed)		5,411,240		4,497,043		11,705,371
	(4)	Reinsurance ceded		5,128,702		4,219,635		11,412,363
	(5)	Total (net) (3 minus 4)		$	282,538	$	277,408	$	293,008

B.	Separate Account with Guarantees			Account Value		Cash Value		Reserve
	(1)	Subject to discretionary withdrawal, surrender values or policy loans:
		a.	Term policies with cash value	$	—	$	—	$	—
		b.	Universal life	—		—		—
		c.	Universal life with secondary guarantees	—		—		—
		d.	Indexed universal life	—		—		—
		e.	Indexed universal life with secondary guarantees	—		—		—
		f.	Indexed life	—		—		—
		g.	Other permanent cash value life insurance	—		—		—
		h.	Variable life	—		—		—
		i.	Variable universal life	—		—		—
		j.	Miscellaneous reserves	—		—		—
	(2)	Not subject to discretionary withdrawal or no cash values
		a.	Term policies without cash value	XXX		XXX		—
		b.	Accidental death benefits	XXX		XXX		—
		c.	Disability - active lives	XXX		XXX		—
		d.	Disability - disabled lives	XXX		XXX		—
		e.	Miscellaneous reserves	XXX		XXX		—
	(3)	Total (gross: direct + assumed)		—		—		—
	(4)	Reinsurance ceded		—		—		—
	(5)	Total (net) (3 minus 4)		$	—	$	—	$	—

C.	Separate Account Nonguaranteed			Account Value		Cash Value		Reserve
	(1)	Subject to discretionary withdrawal, surrender values or policy loans:
		a.	Term policies with cash value	$	—	$	—	$	—
		b.	Universal life	—		—		—
		c.	Universal life with secondary guarantees	—		—		—
		d.	Indexed universal life	—		—		—
		e.	Indexed universal life with secondary guarantees	—		—		—
		f.	Indexed life	—		—		—
		g.	Other permanent cash value life insurance	—		—		—
		h.	Variable life	—		—		—
		i.	Variable universal life	1,159,152		1,153,234		1,153,784
		j.	Miscellaneous reserves	—		—		—
	(2)	Not subject to discretionary withdrawal or no cash values
		a.	Term policies without cash value	XXX		XXX		—
		b.	Accidental death benefits	XXX		XXX		—
		c.	Disability - active lives	XXX		XXX		—
		d.	Disability - disabled lives	XXX		XXX		—
		e.	Miscellaneous reserves	XXX		XXX		—
	(3)	Total (gross: direct + assumed)		1,159,152		1,153,234		1,153,784
	(4)	Reinsurance ceded		—		—		—
	(5)	Total (net) (3 minus 4)		$	1,159,152	$	1,153,234	$	1,153,784

6072

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021


D.			Amount
	Life and Accident and Health Annual Statement:
	1.	Exhibit 5, Life Insurance Section, Total (net)	$	290,701
	2	Exhibit 5, Accidental Death Benefits Section, Total (net)	3
	3	Exhibit 5, Disability - Active Lives Section, Total (net)	1
	4	Exhibit 5, Disability - Disabled Lives Section, Total (net)	568
	5	Exhibit 5, Miscellaneous Reserves Section, Total (net)	1,735
	6	Subtotal	293,008

	Separate Accounts Annual Statement:
	7	Exhibit 3,line 0199999, Column 2	1,153,784
	8	Exhibit 3,line 0499999, Column 2	—
	9	Exhibit 3,line 0599999, Column 2	—
	10	Subtotal (Lines 7 through 9)	1,153,784
	11	Combined Total (Lines 6 plus 10)	$	1,446,791

6173

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

10.WITHDRAWAL CHARACTERISTICS OF ANNUITY RESERVES AND DEPOSIT LIABILITIES

The withdrawal characteristics of general account and separate account annuity reserves and deposits as of December 31, 2021 and 2020 were as follows:

December 31, 2021
($'s in thousands)
				General Account		Separate Accounts with Guarantees		Separate Accounts Nonguaranteed		Total		% of Total
A.		INDIVIDUAL ANNUITIES:
	1.	Subject to discretionary withdrawal:
		a.	With market value adjustment	$	—207,771	$	—35,521	$	—	$	—243,292	04.07	%
		b.	At book value less current surrender charge of 5% or more	—92,614		—		—		—92,614		01.08	%
		c.	At fair value	—19,910		—		—477,984		—497,894		09.06	%
		d.	Total with market value adjustment or at fair value (Total of a through c)	—320,295		—35,521		—477,984		—833,800		016.01	%
		e.	At book value without adjustment (minimal or no charge or adjustment)	—3,978,368		—		—		—3,978,368		076.08	%
	2.	Not subject to discretionary withdrawal		—365,399		—		—4,868		—370,267		07.01	%
	3.	Total (gross: direct + assumed)		—4,664,062		—35,521		—482,852		—5,182,435		0100.0	%
	4.	Reinsurance ceded		—2,143,065		—35,521		—		—2,178,586
	5.	Total (net) (line 3 minus 4)		$	—2,520,997	$	—	$	—482,852	$	—3,003,849
	6.	Amount included in A.1.b. above that will move to A.1.e.
		for the first time within the year after the statement date		$	—31,541	$	—	$	—	$	—31,541
				General Account		Separate Accounts with Guarantees		Separate Accounts Nonguaranteed		Total		% of Total
B.		GROUP ANNUITIES:
	1.	Subject to discretionary withdrawal:
		a.	With market value adjustment	$	—194,029	$	—124	$	—	$	—194,153	063.01	%
		b.	At book value less current surrender charge of 5% or more	—280		—		—		—280		0.01	%
		c.	At fair value	—		—		—30,755		—30,755		010.0	%
		d.	Total with market value adjustment or at fair value (Total of a through c)	—194,309		—124		—30,755		—225,188		073.01	%
		e.	At book value without adjustment (minimal or no charge or adjustment)	—50,054		—		—		—50,054		016.03	%
	2.	Not subject to discretionary withdrawal		—32,574		—		—104		—32,678		010.06	%
	3.	Total (gross: direct + assumed)		—276,937		—124		—30,859		—307,920		0100.0	%
	4.	Reinsurance ceded		—54,496		—124		—		—54,620
	5.	Total (net) (line 3 minus 4)		$	—222,441	$	—	$	—30,859	$	—253,300
	6.	Amount included in B.1.b. above that will move to B.1.e.
		for the first time within the year after the statement date		$	—16,494	$	—124	$	—	$	—16,618
				General Account		Separate Accounts with Guarantees		Separate Accounts Nonguaranteed		Total		% of Total
C.		DEPOSIT TYPE CONTRACTS
	1.	Subject to discretionary withdrawal:
		a.	With market value adjustment	$	—	$	—	$	—	$	—	0.0	%
		b.	At book value less current surrender charge of 5% or more	—		—		—		—		0.0	%
		c.	At fair value	—1,470		—		—		—1,470		0.01	%
		d.	Total with market value adjustment or at fair value (Total of a through c)	—1,470		—		—		—1,470		0.01	%
		e.	At book value without adjustment (minimal or no charge or adjustment)	—66,697		—		—		—66,697		04.05	%
	2.	Not subject to discretionary withdrawal		—1,411,523		—		—		—1,411,523		095.04	%
	3.	Total (gross: direct + assumed)		—1,479,690		—		—		—1,479,690		0100.0	%
	4.	Reinsurance ceded		—91,539		—		—		—91,539
	5.	Total (net) (line 3 minus 4)		$	—1,388,151	$	—	$	—	$	—1,388,151
	6.	Amount included in C.1.b. above that will move to C.1.e.
		for the first time within the year after the statement date		$	—	$	—	$	—	$	—

6274

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

D.			Amount
	Life and Accident and Health Annual Statement:
	1.	Exhibit 5, Annuities Section, Total (net)	$	—2,743,438
	2.	Exhibit 5, Supplementary Contracts With Life Contingencies (net)	—
	3.	Exhibit 7, Deposit-Type contracts, Line 14, Column 1	—1,388,151
	4.	Subtotal	—4,131,589
	Separate Accounts Annual Statement:
	5.	Exhibit 3,line 0299999, Column 2	—513,711
	6.	Exhibit 3,line 0399999, Column 2	—
	7.	Policyholder dividend and coupon accumulations	—
	8.	Policyholder premiums	—
	9.	Guaranteed interest contracts	—
	10.	Other contract deposit funds	—
	11.	Subtotal	—513,711
	12.	Combined Total	$	—4,645,300

6375

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021


December 31, 2020
($'s in thousands)
				General Account		Separate Accounts with Guarantees		Separate Accounts Nonguaranteed		Total		% of Total
A.		INDIVIDUAL ANNUITIES:

	1.	Subject to discretionary withdrawal:
		a.	With market value adjustment	$	237,852	$	34,361	$	—	$	272,213	5.0	%
		b.	At book value less current surrender charge of 5% or more	158,246		—		—		158,246		2.9	%
		c.	At fair value	21,401		—		478,650		500,051		9.1	%
		d.	Total with market value adjustment or at fair value (Total of a through c)	417,499		34,361		478,650		930,510		17.0	%
		e.	At book value without adjustment (minimal or no charge or adjustment)	4,122,496		—		—		4,122,496		75.2	%
	2	Not subject to discretionary withdrawal		424,044		—		4,519		428,563		7.8	%
	3	Total (gross: direct + assumed)		4,964,039		34,361		483,169		5,481,569		100.0	%
	4	Reinsurance ceded		2,036,843		34,361		—		2,071,204
	5	Total (net) (line 3 minus 4)		$	2,927,196	$	—	$	483,169	$	3,410,365
	6	Amount included in A.1.b. above that will move to A.1.e.
		for the first time within the year after the statement date		$	10,713	$	—	$	—	$	10,713

				General Account		Separate Accounts with Guarantees		Separate Accounts Nonguaranteed		Total		% of Total
B.		GROUP ANNUITIES:

	1.	Subject to discretionary withdrawal:
		a.	With market value adjustment	$	214,683	$	121	$	—	$	214,804	64.4	%
		b.	At book value less current surrender charge of 5% or more	570		—		—		570		0.2	%
		c.	At fair value	—		—		28,647		28,647		8.6	%
		d.	Total with market value adjustment or at fair value (Total of a through c)	215,253		121		28,647		244,021		73.1	%
		e.	At book value without adjustment (minimal or no charge or adjustment)	52,732		—		—		52,732		15.8	%
	2	Not subject to discretionary withdrawal		36,793		—		107		36,900		11.1	%
	3	Total (gross: direct + assumed)		304,778		121		28,754		333,653		100.0	%
	4	Reinsurance ceded		58,300		121		—		58,421
	5	Total (net) (line 3 minus 4)		$	246,478	$	—	$	28,754	$	275,232
	6	Amount included in B.1.b. above that will move to B.1.e.
		for the first time within the year after the statement date		$	116	$	—	$	—	$	116

				General Account		Separate Accounts with Guarantees		Separate Accounts Nonguaranteed		Total		% of Total
C.		DEPOSIT TYPE CONTRACTS

	1.	Subject to discretionary withdrawal:
		a.	With market value adjustment	$	—	$	—	$	—	$	—	0.0	%
		b.	At book value less current surrender charge of 5% or more	—		—		—		—		0.0	%
		c.	At fair value	1,941		—		—		1,941		0.1	%
		d.	Total with market value adjustment or at fair value (Total of a through c)	1,941		—		—		1,941		0.1	%
		e.	At book value without adjustment (minimal or no charge or adjustment)	62,489		—		—		62,489		4.3	%
	2	Not subject to discretionary withdrawal		1,405,279		—		—		1,405,279		95.6	%
	3	Total (gross: direct + assumed)		1,469,709		—		—		1,469,709		100.0	%
	4	Reinsurance ceded		94,440		—		—		94,440
	5	Total (net) (line 3 minus 4)		$	1,375,269	$	—	$	—	$	1,375,269
	6	Amount included in C.1.b. above that will move to C.1.e.
		for the first time within the year after the statement date		$	—	$	—	$	—	$	—

6476

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021


D.			Amount
	Life and Accident and Health Annual Statement:
	1.	Exhibit 5, Annuities Section, Total (net)	$	3,173,673
	2	Exhibit 5, Supplementary Contracts With Life Contingencies (net)	—
	3	Exhibit 7, Deposit-Type contracts, Line 14, Column 1	1,375,269
	4	Subtotal	4,548,942

	Separate Accounts Annual Statement:
	5	Exhibit 3,line 0299999, Column 2	511,923
	6	Exhibit 3,line 0399999, Column 2	—
	7	Policyholder dividend and coupon accumulations	—
	8	Policyholder premiums	—
	9	Guaranteed interest contracts	—
	10	Other contract deposit funds	—
	11	Subtotal	511,923
	12	Combined Total	$	5,060,865

6577

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

11. SEPARATE ACCOUNTS

The Company continues to have variable life policies and variable annuity contracts in-force, however, it stopped issuing new business on these products in 2017 and 2006, respectively. The assets and liabilities of variable life policies and variable annuity contracts are recorded as assets and liabilities of the Separate Accounts and are legally insulated from the General Account, excluding any purchase payments or transfers directed by the contract holder to earn a fixed rate of return which are included in the Company’s General Account assets. The legal insulation of the Separate Accounts assets prevents such assets from being generally available to satisfy claims resulting from the General Account. Separate Accounts which contain variable annuity and variable life business are unit investment trusts registered with the Securities and Exchange Commission (“SEC”). The results of the Separate Accounts related to variable annuity and certain variable life business are reinsured to Everlake, formerly ALIC, pursuant to a modified coinsurance agreement. Other variable life business has been separately reinsured to GILICO pursuant to a modified coinsurance agreement and certain variable life mortality risks have been reinsured to another counterparty pursuant to a Monthly Renewable Term (“MRT”) agreement.

The Separate Accounts allow the contract holder to accumulate funds within a variety of portfolios, at rates which depend upon the return achieved from the types of investments chosen. The net investment experience of the Separate Accounts is credited directly to the contract holder and can be favorable or unfavorable. The assets of each portfolio are held separately from the other portfolios and each has distinct investment objectives and policies. Absent any contract provision wherein the Company provides a guarantee, the contract holders of the variable annuity and variable life products bear the investment risk that Separate Accounts’ funds may not meet their stated investment objectives.

The assets legally insulated and not legally insulated from the general account as of December 31, 2021 and 2020 were attributed to the following products/transactions:

($'s in thousands)	December 31, 2021				December 31, 2020
Product/transaction	Legally insulated assets		Separate Account Assets (Not legally insulated)		Legally insulated assets		Separate Account Assets (Not legally insulated)
Variable annuity contracts	$	—514,305	$	—	$	512,634	$	—
Variable life policies	—1,301,054		—		1,159,152		—
Total	$	—1,815,358	$	—	$	1,671,786	$	—

Some of the Separate Account liabilities are guaranteed by the General Account. To compensate the General Account for the risk taken on variable annuity products, the Separate Accounts paid risk charges of $X1.X1 million, $1.0 million and $1.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. All such guarantees and the related risk charges are reinsured to Everlake, formerly ALIC. The risk charges related to variable life products are not explicit, but rather embedded within the cost of insurance.

The amounts paid by the General Account for Separate Account guarantees for the years ended December 31, 2021, 2020 and 2019 were $X1.X1 million, $1.6 million and $1.2 million, respectively. Certain of these guarantees and the related risk charges are reinsured to Everlake, formerly ALIC.

The Company did not have securities lending transactions within the Separate Accounts at December 31, ~~2020.~~2021 ~~The~~or ~~Company did/did not have securities lending transactions within the Separate Accounts at December 31, 2021~~2020.

6678

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

An analysis of the Separate Account reserves as of December 31, 2021 was as follows:

	($'s in thousands)		Index		Nonindexed Guarantee Less Than/Equal to 4%		Nonindexed Guarantee More than 4%		Non-Guaranteed Separate Accounts		Total
1	Premiums, considerations or deposits for the year ended 12/31/21		$	—	$	—	$	—	$	—62,397	$	—62,397
	Reserves at 12/31/21
2	For accounts with assets at:
	a.	Fair value	—		—		—		—1,811,280		—1,811,280
	b.	Amortized cost	—		—		—		—		—
	c.	Total Reserves	$	—	$	—	$	—	$	—1,811,280	$	—1,811,280
3	By withdrawal characteristics:
	a.	Subject to discretionary withdrawal	$	—	$	—	$	—	$	—	$	—
	b.	With market value adjustment	—		—		—		—		—
	c.	At book value without market value adjustment and with current surrender charge of 5% or more	—		—		—		—		—
	d.	At fair value	—		—		—		—1,806,307		—1,806,307
	e.	At book Value without market value adjustment and with current surrender charge less than 5%	—		—		—		—		—
	f.	Subtotal	—		—		—		—1,806,307		—1,806,307
	g.	Not subject to discretionary withdrawal	—		—		—		—4,973		—4,973
	h.	Total Reserves	$	—	$	—	$	—	$	—1,811,280	$	—1,811,280
4	Reserves for Asset Default Risk in Lieu of AVR		$	—	$	—	$	—	$	—	$	—

An analysis of the Separate Account reserves as of December 31, 2020 was as follows:


	($'s in thousands)		Index		Nonindexed Guarantee Less Than/Equal to 4%		Nonindexed Guarantee More than 4%		Non-Guaranteed Separate Accounts		Total

1	Premiums, considerations or deposits for the year ended 12/31/20		$	—	$	—	$	—	$	64,370	$	64,370

	Reserves at 12/31/20
2	For accounts with assets at:
	a.	Fair value	—		—		—		1,665,706		1,665,706
	b.	Amortized cost	—		—		—		—		—
	c.	Total Reserves	$	—	$	—	$	—	$	1,665,706	$	1,665,706

3	By withdrawal characteristics:
	a.	Subject to discretionary withdrawal	$	—	$	—	$	—	$	—	$	—
	b.	With market value adjustment	—		—		—		—		—
	c.	At book value without market value adjustment and with current surrender charge of 5% or more	—		—		—		—		—
	d.	At fair value	—		—		—		1,661,081		1,661,081
	e.	At book Value without market value adjustment and with current surrender charge less than 5%	—		—		—		—		—
	f.	Subtotal	—		—		—		1,661,081		1,661,081
	g.	Not subject to discretionary withdrawal	—		—		—		4,625		4,625
	h.	Total Reserves	$	—	$	—	$	—	$	1,665,706	$	1,665,706

4	Reserves for Asset Default Risk in Lieu of AVR		$	—	$	—	$	—	$	—	$	—

6779

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The reconciliation of Net Transfers from Separate Accounts (from) to the Statement of Operations of the Separate Account Statement to the Statutory Statement of Operations of the Company for the years ended December 31, 2021, 2020 and 2019 was as follows:

($'s in thousands)	2021		2020		2019
Transfers as reported in the Summary of Operations of the Separate Accounts Statements
Transfers to Separate Accounts	$	—62,397	$	64,370	$	68,061
Transfers from Separate Accounts	—(137,648)		(109,598)		(131,228)
Net transfers to or (from) Separate Accounts	$	—(75,251)	$	(45,228)	$	(63,167)

12.FAIR VALUE OF FINANCIAL INSTRUMENTS

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 hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1 Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2 Assets and liabilities whose values are based on the following:

(a) Quoted prices for similar assets or liabilities in active markets;

(b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or

(c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3 Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities.

The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments.

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance with accounting standards. For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models.

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third-party valuation sources for selected securities. The Company performs ongoing price validation procedures such as backtesting of actual sales, which corroborate the various inputs used in internal models to market observable data. When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions. There were no significant changes made in valuation techniques during ~~2020.~~2021 ~~There~~or ~~were/weren't significant changes made in valuation techniques during 2021~~2020.

The Company may reclassify assets reported at fair value between levels of the SSAP No. 100 fair value hierarchy if appropriate based on changes in the quality of valuation inputs available during a reporting period. The policy governing when these transfers are recognized did~~/did~~ not change during 2021 ~~and~~or ~~did not change during~~ 2020. There are no transfers between Level 2 and Level 3 during ~~2020~~2021 ~~and~~or ~~there~~2020 ~~were/weren't transfers between Level 2 and Level 3 during 2021~~ for assets measured at fair value.

The Company’s assets and liabilities by classification measured at fair value as of December 31, 2021 were as follows:

($'s in thousands)	Level 1		Level 2		Level 3		Net Asset Value(NAV)		Total
Assets at fair value:
Options	$	—9,088	$	—	$	—	$	—	$	—9,088
Separate account assets	—1,815,358		—		—		—		—1,815,358
Total assets at fair value	$	—	$	—	$	—	$	—	$	—
Perpetual preferred stock	—		249,919		—		—		249,919
Total assets at fair value	$	1,824,446	$	249,919	$	—	$	—	$	2,074,365
Liabilities at fair value:
Derivatives
Options	$	—4,411	$	—	$	—	$	—	$	—4,411
	$	—4,411	$	—	$	—	$	—	$	—4,411
Separate account liabilities	$1,815,358	—	$—	—	$—	—	$—	—	$—1,815,358
Total liabilities at fair value	$	—1,819,769	$	—	$	—	$	—	$	—1,819,769

The Company’s assets and liabilities by classification measured at fair value as of December 31, 2020 were as follows:

($'s in thousands)	Level 1		Level 2		Level 3		Net Asset Value(NAV)		Total
Assets at fair value:
Options	$	17,949	$	—	$	—	$	—	$	17,949
Separate account assets	1,671,786		—		—		—		1,671,786
Total assets at fair value	$	1,689,735	$	—	$	—	$	—	$	1,689,735
Liabilities at fair value:
Derivatives
Options	$	9,032	$	—	$	—	$	—	$	9,032
	$	9,032	$	—	$	—	$	—	$	9,032
Separate account liabilities	$1,671,786	~~1,671,786~~	$—	—	$—	—	$—	—	$1,671,786	~~1,671,786~~
Total liabilities at fair value	$	1,680,818	$	—	$	—	$	—	$	1,680,818

6981

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2021 were as follows:

($'s in thousands)	Aggregate Fair Value		Admitted Assets		Level 1		Level 2		Level 3		Net Asset Value(NAV)		Not Practicable (Carrying Value)
Assets at fair value:
Bonds	$	—8,490,982	$	—8,068,303	$	—103,923	$	—8,387,059	$	—	$	—	$	—
Preferred Stock	—307,968		—305,949		—		—290,468		—17,500		—		—
Common Stock	—60,918		—60,918		—		—		—		—24,820		—36,098
Mortgage loans	—848,769		—840,699		—		—		—848,769		—		—
Other Invested Assets	—287,030		—277,398		—		—182,906		—62,848		—41,276		—
Policy loans	—34,539		—34,539		—		—		—34,539		—		—
Derivative assets	—4,677		—4,677		—4,677		—		—		—		—
Cash and short-term investments	—372,906		—372,907		—305,391		—67,515		—		—		—
Derivatives collateral	—		—		—		—		—		—		—
Separate account assets	1,815,358		1,815,358		1,815,358		—		—		—		—
Separate account assets	—		—		—		—		—		—		—
Liabilities at fair value:
Deposit Type Contracts	$	—1,388,580	$	—1,388,151	$	—	$	—	$	—1,388,580	$	—	$	—
Separate account liabilities	—1,815,358		—1,815,358		—1,815,358		—		—		—		—

The carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2020 was as follows:

($'s in thousands)	Aggregate Fair Value		Admitted Assets		Level 1		Level 2		Level 3		Net Asset Value(NAV)		Not Practicable (Carrying Value)
Assets at fair value:
Bonds	$	8,838,661	$	8,074,319	$	582,707	$	8,204,724	$	3,960	$	47,269	$	—
Preferred Stock	128,492		122,120		—		117,492		11,000		—		—
Common Stock	46,472		46,472		—		—		—		10,484		35,988
Mortgage loans	727,860		721,238		—		—		727,860		—		—
Other Invested Assets	195,618		185,825		—		79,450		61,684		54,485		—
Policy loans	35,744		35,744		—		—		35,744		—		—
Derivative assets	8,917		8,917		8,917		—		—		—		—
Cash and short-term investments	562,~~782~~783		562,~~782~~783		562,~~782~~783		—		—		—		—
Derivatives collateral	—		—		—		—		—		—		—
Separate account assets	1,671,786		1,671,786		1,671,786		—		—		—		—
Liabilities at fair value:
Deposit Type Contracts	$	1,399,118	$	1,375,269	$	—	$	—	$	1,399,118	$	—	$	—
Separate account liabilities	1,671,786		1,671,786		1,671,786		—		—		—		—

The methods and assumptions that the Company uses in determining the estimated fair value of its financial instruments are summarized below:

Cash, cash equivalents and short-term investments – The Company believes that due to the short-term nature of certain assets, the carrying value approximates fair value. Cash, cash equivalents and short-term investments include money market instruments, highly liquid debt instruments and certain other investments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1.

Bonds and redeemable preferred stock – The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, market activity or other inputs observable in the market. The Company may challenge the price through a

7082

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2.

Indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, pricing overrides may be used. Internally developed valuations are generally included in Level 3 in the fair value hierarchy.

The fair value of private fixed maturities and redeemable preferred stock, which are comprised of investments in private placement securities are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including observed prices and spreads for similar publicly traded or privately traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made.

Common stocks – The Company’s investment in FHLB stock is not practicable to measure fair value due to the redemption provisions. Therefore, carrying value approximates fair value. Reference “Other invested assets” below for discussion surrounding NAV.

Mortgage loans – The fair value of most commercial mortgage loans is based upon the present value of the expected future cash flows discounted at the appropriate U.S. Treasury rate plus an appropriate credit spread for similar quality loans.

Derivatives - The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives.

Other invested assets – The Company’s other invested assets consist of investments in surplus notes as well as limited partnerships and collateral loans. Investments in surplus notes are 144A institutionally traded private placements. Pricing is readily available from multiple pricing sources and therefore these are reflected in Level 2. Collateral loans are shown as Level 3 based on discounted cash flows and value of underlying collateral which may utilize unobservable inputs. Limited partnerships are reported at NAV, where available, or Level 3 based on their reliance on unobservable inputs.

Certain investments are measured at fair value using the NAV per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. Invested assets using NAV as a practical expedient consist of certain limited partnership and collateral loan interests in real estate, common stock, hedge, insurance and other funds. All of these investments have individually varying investment strategies which also have a variety of redemption terms and conditions including certain fund interests that are restricted until maturity. The Company believes that using NAV as a practical expedient for these investments is a fair and close approximation of the investment’s liquidation value.

Contract loans - The fair value of contract loans is determined by estimating future policy loan cash flows and discounting the cash flows at the current loan coupon rate. As a result, the carrying value of the contract loans approximates the fair value.

Separate Accounts – Separate account assets and liabilities consist principally of investments in mutual fund shares. The fair values are based on quoted market prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy.

Deposit Liabilities – Only the portion of deposit liabilities with defined or contractual maturities are reflected in the table above. The fair value is based upon the present value of the expected future cash flows.

7183

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

13. FEDERAL INCOME TAXES

The Company and Lancaster Re file a consolidated life insurance federal income tax return. The method of allocation among the companies is subject to a written agreement approved by the NE DOI and the Board of Directors (the “Tax Allocation Agreement”). The Company and Lancaster Re determine their respective income tax expense or benefit and related liability or recoverable as if they each filed separate company tax returns. Neither the Company nor Lancaster Re is required to make any payments with respect to utilization of any losses or other tax attributes that reduce the overall consolidated tax liability until such time the member with such losses or tax attributes could have otherwise used its losses or tax attributes on a separate company basis. In this regard, any benefit of filing a consolidated tax return as compared to the sum of the tax liabilities computed on a separate entity basis shall reside at the Company until such time as payment is required under the Tax Allocation Agreement. The Company is also responsible for preparing the group's tax returns and controlling tax audits. Intercompany tax balances are settled on a quarterly basis and a final true up is made after the filing of the federal income tax return, as prescribed by the terms of the Tax Allocation Agreement.

The Company does not believe it has any uncertain tax positions for its federal income tax return that would be material to its financial condition, results of income, or cash flows. Therefore, the Company did~~/did~~ not record a liability for unrecognized tax contingencies/benefits at December 31, 2021 ~~and~~or ~~did not record a liability for unrecognized tax contingencies at December 31,~~ 2020. As of December 31, 2021, there were~~/were~~ ~~not~~no ~~any~~ uncertain tax positions for which management believes it is reasonably possible that the total amounts of tax contingencies will significantly increase within 12 months of the reporting date. No amounts have been accrued for interest or penalties.

The application of SSAP No. 101 requires a company to evaluate the recoverability of DTAs and to establish a valuation allowance if necessary to reduce the DTAs to an amount which is more likely than not to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors including: (1) the nature of the DTAs and DTLs; (2) whether they are ordinary or capital; (3) the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time carryovers can be utilized; (6) unique tax rules that would impact the utilization of the DTAs and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused.

The components of the Company’s net DTAs and DTLs as of December 31, 2021 and 2020 were as follows:

($'s in thousands)		12/31/2021						12/31/2020						Change
		(1)		(2)		(3)		(4)		(5)		(6)		(7)		(8)		(9)
		Ordinary		Capital		(Col. 1 + 2) Total		Ordinary		Capital		(Col. 4 + 5) Total		(Col. 1 - 4) Ordinary		(Col. 2-5) Capital		(Col. 7 + 8) Total
a.	Gross Deferred Tax Assets	$	—104,606	$	—486	$	—105,092	$	93,225	$	455	$	93,680	$	~~(93~~11,~~225)~~381	$	~~(455)~~31	$	~~(93~~11,~~680)~~412
b.	Statutory Valuation Allowance Adjustment	—		—		—		—		—		—		—		—		—
c.	Adjusted Gross Deferred Tax Assets (a - b)	—104,606		—486		—105,092		93,225		455		93,680		~~(93~~11,~~225)~~381		~~(455)~~31		~~(93~~11,~~680)~~412
d.	Deferred Tax Assets Nonadmitted	—67,099		—		—67,099		54,997		—		54,997		~~(54~~12,~~997)~~102		—		~~(54~~12,~~997)~~102
e.	Subtotal Net Admitted Deferred Tax Asset (c - d)	—37,507		—486		—37,993		38,228		455		38,683		(~~38,228~~721)		~~(455)~~31		(~~38,683~~690)
f.	Deferred Tax Liabilities	—(4,012)		—(486)		—(4,498)		(5,063)		(455)		(5,518)		51,~~063~~051		~~455~~(31)		51,~~518~~020
g.	Net Admitted Deferred Tax Asset/(Net Deferred Tax Liability) (e - f)	$	—33,495	$	—	$	—33,495	$	33,165	$	—	$	33,165	$	~~(33,165)~~330	$	—	$	~~(33,165)~~330

7284

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The component amounts of the Company's net admitted DTAs by tax character as of December 31, 2021 and 2020 were as follows:

~~($'s in thousands)~~	($'s in thousands)	December 31, 2021						December 31, 2020						Change
		(1)		(2)		(3)		(4)		(5)		(6)		(7)		(8)		(9)
		Ordinary		Capital		(Col. 1 + 2) Total		Ordinary		Capital		(Col. 4 + 5) Total		(Col. 1 - 4) Ordinary		(Col. 2-5) Capital		(Col. 7 + 8) Total
	Admission Calculation Components SSAP No. 101
a.	Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
b.	Adjusted Gross Tax Assets Expected to Be Realized (Excluding the Amount of Deferred Tax Assets from a) above) After Application of the Threshold Limitation. (The Lesser of (b)1 and (b)2 Below)	—33,495		—		—33,495		33,165		—		33,165		~~(33,165)~~330		—		~~(33,165)~~330
	1. Adjusted Gross Deferred Tax Assets Expected To Be Realized Following the Balance Sheet Date	—33,495		—		—33,495		33,165		—		33,165		~~(33,165)~~330		—		~~(33,165)~~330
	2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold	xxx		xxx		—69,277		xxx		xxx		57,468		xxx		xxx		~~(57~~11,~~468)~~809
c.	Adjusted Gross Deferred Tax Assets (Excluding the Amount of Deferred Tax Assets from a) and b) above) Offset by Gross Deferred Tax Liabilities	—4,012		—486		—4,498		5,063		455		5,518		(51,~~063~~051)		~~(455)~~31		(51,~~518~~020)
d	Total Admitted under 11a) through 11c)	$	—37,507	$	—486	$	—37,993	$	38,228	$	455	$	38,683	$	(~~38,228~~721)	$	~~(455)~~31	$	(~~38,683~~690)

The recovery period and threshold limitation information as of December 31, 2021 and December 31, 2020 were as follows:

($'s in thousands)	2021		2020
Ratio Percentage Used to Determine Recovery Period and Threshold Amount Limitation	0759.01	%	715.9	%
Amount of Adjusted Capital and Surplus Used to Determine Recovery Period and Threshold Limitation in (b)2 above.	$—489,639		$446,575

The impact of tax planning strategies, as used in the Company's SSAP No. 101 calculation, on adjusted gross and net admitted DTAs as of December 31, 2021 and 2020 were as follows:

($'s in thousands)		December 31, 2021				December 31, 2020				Change
		(1)		(2)		(3)		(4)		(5)		(6)
		Ordinary		Capital		Ordinary		Capital		(Col. 1 - 3) Ordinary		(Col. 2-4) Capital
Impact of Tax Planning Strategies
	Determination of adjusted gross deferred tax assets and net admitted deferred tax assets, by tax character as a percentage
	1. Adjusted Gross DTAs Amount	$—104,606		$—486		$93,225		$455		$~~(93~~11,~~225)~~381		$~~(455)~~31
	2. Percentage of Adjusted Gross DTAs by Tax Character Attributable to the Impact of Tax Planning Strategies	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
	3. Net admitted Adjusted Gross DTAs amount	$—37,507		$—486		$38,228		$455		$(~~38,228~~721)		$~~(455)~~31
	4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Admitted Because of the Impact of Tax Planning Strategies	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%

The Company did not utilize tax planning strategies related to reinsurance.

The Company has an investment in Lancaster Re for which it has not recorded deferred taxes at this time. The amount of any deferred tax balance attributable to this investment has not yet been quantified. Aside from the Company’s investment in Lancaster Re, the Company has no temporary differences for which deferred taxes have not been established as of December 31, ~~2020.~~2021 ~~There~~or ~~were/were not any temporary differences for which deferred taxes have not been established as of December 31, 2021~~2020.

7385

LINCOLN BENEFIT LIFE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

DECEMBER 31, 2021

The Company's significant components of income taxes incurred for the years ended December 31, 2021, 2020 and 2019 were as follows:

($'s in thousands)		2021		2020		2019
Current Income Tax:		$	—(15,223)	$	(24,822)	$	(31,140)
	Federal income tax on net capital gains (losses)	—20,979		58,264		31,484
	Federal and foreign income taxes incurred (benefit)	$	—5,756	$	33,442	$	344

The Company's significant components of the Company’s DTAs and DTLs as of December 31, 2021 and 2020 were as follows:

($'s in thousands)			December 31, 2021		December 31, 2020		Change
Deferred Tax Assets:
	Ordinary:
		Policyholder reserves	$	—6,551	$	8,867	$	(82,~~867~~316)
		Investments	—		—		—
		Deferred acquisition costs	—96,209		80,989		~~(80~~15,~~989)~~220
		Receivables -- nonadmitted	—1,721		2,201		(~~2,201~~480)
		Other (including items<5% of total ordinary tax assets)	—125		1,~~168~~169		(1,~~168~~044)
		Subtotal	—104,606		93,225		~~(93~~11,~~225)~~381
	Statutory valuation allowance adjustment		—		—		—
	Nonadmitted		—67,099		54,997		~~(54~~12,~~997)~~102
	Admitted ordinary deferred tax assets		—37,507		38,228		(~~38,228~~721)
	Capital:
		Investments	—486		455		~~(455)~~31
		Other (unrealized gains)	—		—		—

Filing Compare · LINCOLN BENEFIT LIFE CO