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As Of Filer Filing For·On·As Docs:Size Issuer Agent 6/16/15 Lincoln Life & Annuity Flexibl… M N-6/A 3:12M Merrill Corp-MD/FA → Lincoln Life & Annuity Flexible Premium Variable Life Account M ⇒ Lincoln AssetEdge EXEC VUL 2015 |
— Document/Exhibit Description Pages Size
1: N-6/A Pre-Effective Amendment to Registration Statement HTML 6.55M
for a Separate Account (Unit Investment
Trust)
2: EX-99.B(K) Miscellaneous Exhibit HTML 10K
3: EX-99.B(N) Miscellaneous Exhibit HTML 6K
| • | AIM Variable Insurance Funds (Invesco Variable Insurance Funds) |
| • | AllianceBernstein Variable Products Series Fund |
| • | American Funds Insurance Series® |
| • | BlackRock Variable Series Funds, Inc. |
| • | Delaware VIP® Trust |
| • | Deutsche Variable Series II |
| • | Fidelity® Variable Insurance Products |
| • | Franklin Templeton Variable Insurance Products Trust |
| • | JPMorgan Insurance Trust |
| • | Legg Mason Partners Variable Equity Trust |
| • | Lincoln Variable Insurance Products Trust |
| • | MFS® Variable Insurance Trust |
| • | PIMCO Variable Insurance Trust |
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| Table I: Transaction Fees | ||
| Charge | When Charge is Deducted | Amount Deducted |
| Maximum Sales Charge as a percentage of Premiums paid (Premium Load). Note: Includes 3.0% charge for state and federal tax obligations. | When you pay a Premium. | 6.0%1 |
| Surrender Charge*2 | ||
| A dollar amount per $1,000 of Specified Amount | For up to 8 years from the Policy Date and up to 8 years from the Effective Date of each increase in Specified Amount, a Surrender Charge will be deducted at the time you effect a Full Surrender of your Policy. For up to 8 years from the Policy Date or up to 8 years from the Effective Date of each increase in Specified Amount, a Surrender Charge will be deducted at the time you effect a Reduction in Specified Amount. | |
| Maximum Charge | $43.52 per $1,000. | |
| Minimum Charge | $0.00 per $1,000. | |
| Maximum Charge for a Representative Insured: male, age 45, standard non-tobacco, in year one. | $26.16 per $1,000. | |
| Transfer Fee | Applied to any transfer request in excess of 24 made during any Policy Year. | $25 |
| * | These charges and costs vary based on individual characteristics. The charges and costs shown in the table may not be representative of the charges and costs that a particular Owner will pay. You may obtain more information about the particular charges that would apply to you by requesting a personalized policy illustration from your financial advisor. |
| 1 | The Maximum Sales Charge Imposed on Premiums is anticipated to cover the Company's costs for sales expenses and any policy-related state and federal tax liabilities. Policy-related taxes imposed by states range from 0.0% to 5.0%. In considering policy-related state taxes component of the sales charge, the Company considers the average of the taxes imposed by the states rather than any taxes specifically imposed by the state in which the Owner resides. We use an average of 3% to account for state and federal tax obligations. |
| 2 | During the life of the Policy, you may request one or more Partial Surrenders, each of which may not exceed 90% of your Policy's Surrender Value as of the date of your request. If you wish to surrender more than 90% of your Policy's Surrender Value, you must request a Full Surrender of your Policy, which is subject to the Surrender Charge reflected in the table above. (See section headed “Partial Surrenders” for a discussion of Partial Surrenders of your Policy.) |
| Table II: Periodic Charges Other Than Fund Operating Expenses | ||
| Charge | When Charge is Deducted | Amount Deducted |
| Cost of Insurance* | Monthly | |
| A dollar amount per $1,000 of Net Amount at Risk | ||
| Maximum Charge1 | $83.33 per $1,000. | |
| Minimum Charge | $0.00 per $1,000. | |
| Maximum Charge for a Representative Insured: male, age 45, standard non-tobacco, in year one. | $0.13 per $1,000. | |
| Mortality and Expense Risk Charge (“M&E”) | At the end of each Valuation Period | |
| A percentage of the value of the Separate Account, calculated daily. | ||
| Maximum Charge | 0.20% (effective annual rate) | |
| Administrative Fee* Comprising of: | Monthly | |
| 1) Flat Fee | $10 | |
| Plus: | ||
| 2) For the first 10 Policy Years from Policy Date or increase in Specified Amount, a monthly fee per $1,000 of Initial Specified Amount or increase in Specified Amount: | ||
| Maximum Charge | $1.97 per $1,000. | |
| Minimum Charge | $0.01 per $1,000. | |
| Maximum Charge for a Representative Insured: male, age 45, standard non-tobacco | $0.34 per $1,000. | |
| Plus: | ||
| 3) Indexed Account Charge | ||
| Table II: Periodic Charges Other Than Fund Operating Expenses (continued) | ||
| Charge | When Charge is Deducted | Amount Deducted |
| A percentage of the Holding Account Value and Indexed Account Value. | ||
| Maximum Charge | 0.15% (effective annual rate) | |
| Policy Loan Interest2 | Annually | |
| Fixed Loan | ||
| A percentage of the amount held in the Loan Account. | 4.0% | |
| Participating Loan | ||
| A percentage of the loaned amount held against the Holding Account Value and the Indexed Account Value. | 6.0% | |
| Exec Enhanced Surrender Value Rider – Multi-Life Basis (Lincoln AssetEdge® Exec VUL 2015) | Monthly (in Policy Years 2-5 only) | |
| A dollar amount per $1,000 of Initial Specified Amount. | ||
| Option 1 | $0.05 per $1,000.3 | |
| Option 2 | $0.075 per $1,000.3 | |
| Overloan Protection Rider | One-time charge when benefit is elected | |
| A percentage of the then current Accumulation Value | ||
| Maximum Charge | 5.0% | |
| Optional Rider Charges | Individualized based on whether optional Rider(s) selected. | |
| Change of Insured Rider | N/A | There is no charge for this rider. |
| Waiver of Monthly Deduction Rider4 | Monthly | |
| A percentage of all other covered monthly charges. | ||
| Maximum Charge | 12.0% | |
| Table II: Periodic Charges Other Than Fund Operating Expenses (continued) | ||
| Charge | When Charge is Deducted | Amount Deducted |
| Minimum Charge | 2.0% | |
| Maximum Charge for a Representative Insured: male, age 45, standard non-tobacco. | 3.5% | |
| * | These charges and costs vary based on individual characteristics. The charges and costs shown in the table may not be representative of the charges and costs that a particular Owner will pay. You may obtain more information about the particular charges, cost of insurance, and the cost of certain riders that would apply to you by requesting a personalized policy illustration from your financial advisor. |
| 1 | Individuals with a higher mortality risk than standard issue individuals can be charged from 125% to 800% of the standard rate. However, under no circumstances would it be higher than the maximum amount shown in the table above. |
| 2 | Interest on Fixed Loans accrues daily at an effective annual rate of 4.0% in years 1-10 and 3.0% thereafter. Interest on Participating Loans accrues daily at an effective annual rate of 6.0% in years 1-10, 5.0% in years 11 through attained age 121, 3.0% thereafter. See the section headed “Policy Loans” for a more detailed discussion. |
| 3 | This rider is required and will automatically be issued for policies applied for on a multi-life basis (Lincoln AssetEdge® Exec VUL 2015) and the Owner of the Policy will have the opportunity to elect a higher Exec Enhanced Surrender Value (Option 2). See section headed “Exec Enhanced Surrender Value Rider - Multi-Life Basis” in the Riders section of this prospectus for a more detailed discussion. |
| 4 | These charges and costs vary based on individual characteristics. The charges and costs shown in the tables may not be representative of the charges and costs that a particular Owner will pay. “Covered monthly charges” are the Monthly Deductions under the Policy: the Cost of Insurance Charge, Administrative Fee, and the cost of any riders. You may obtain more information about the particular charges, cost of insurance, and the cost of certain riders that would apply to you by requesting a personalized policy illustration from your financial advisor. |
| Table III: Total Annual Fund Operating Expenses (expenses that are deducted from fund assets) | ||
| Total Annual Operating Expense | Maximum | Minimum |
| Total management fees, distribution and/or service (12b-1) fees, and other expenses. | 2.40% 1 | 0.21% |
| 1 | The Total Annual Operating Expenses shown in the table do not reflect waivers and reductions. Underlying Funds may offer waivers and reductions to lower their fees. Currently such waivers and reductions range from 0.00% to 1.71%. These waivers and reductions generally extend through April 30, 2016 but may be terminated at any time by the Underlying Fund. Refer to the Underlying Fund’s prospectus for specific information on any waivers or reductions in effect. The minimum and maximum percentages shown in the table include Fund Operating Expenses of mutual funds, if any, which may be acquired by the Underlying Funds which operate as Fund of Funds. Refer to such Underlying Fund’s prospectus for details concerning Fund Operating Expenses of mutual fund shares acquired by it, if any. In addition, certain Underlying Funds have reserved the right to impose fees when fund shares are redeemed within a specified period of time of purchase (“Redemption Fees”) not reflected in the table above. As of the date of this prospectus, none have done so. Redemption Fees are discussed in the Market Timing section of this prospectus and further information about Redemption Fees is contained in the prospectus for such Underlying Fund, copies of which accompany this prospectus or may be obtained by calling 1-800-487-1485. |
| • | Invesco V.I. International Growth Fund (Series I Shares): Long-term growth of capital. |
| • | AB VPS Global Thematic Growth Portfolio (Class A): Long-term growth of capital. |
| • | AB VPS Small/Mid Cap Value Portfolio (Class A): Long-term growth of capital. |
| • | Global Growth Fund (Class 2): Long-term growth of capital. |
| • | Global Small Capitalization Fund (Class 2): Long-term capital growth. |
| • | Growth Fund (Class 2): Capital growth. |
| • | Growth-Income Fund (Class 2): Long-term growth of capital and income. |
| • | International Fund (Class 2): Long-term growth of capital. |
| • | Global Allocation V.I. Fund (Class I): High total investment return. |
| • | Diversified Income Series (Standard Class): Maximum long-term total return consistent with reasonable risk. |
| • | Emerging Markets Series (Standard Class): Long-term capital appreciation. |
| • | Limited-Term Diversified Income Series (Standard Class): Maximum total return, consistent with reasonable risk. |
| • | REIT Series (Standard Class): Maximum long-term total return, with capital appreciation as a secondary objective. |
| • | Small Cap Value Series (Standard Class): Capital appreciation. |
| • | Smid Cap Growth Series (Standard Class): Long-term capital appreciation. |
| • | U. S. Growth Series (Standard Class): Long-term capital appreciation. |
| • | Value Series (Standard Class): Long-term capital appreciation. |
| • | Deutsche Alternative Asset Allocation VIP Portfolio (Class A)(2): Capital appreciation. |
| • | Contrafund® Portfolio (Service Class): Long-term capital appreciation. |
| • | Growth Portfolio (Service Class): To achieve capital appreciation. |
| • | Mid Cap Portfolio (Service Class): Long-term growth of capital. |
| • | Franklin Income VIP Fund (Class 1): To maximize income while maintaining prospects for capital appreciation. |
| • | Franklin Mutual Shares VIP Fund (Class 1): Capital appreciation; income is a secondary consideration. |
| • | Templeton Global Bond VIP Fund (Class 1): High current income consistent with preservation of capital; capital appreciation is a secondary objective. |
| • | JPMorgan Insurance Trust Global Allocation Portfolio (Class 1): Maximize long-term total return. |
| • | ClearBridge Variable Mid Cap Core Portfolio (Class I): Long-term growth of capital. |
| • | LVIP Baron Growth Opportunities Fund (Service Class): Capital appreciation. |
| • | LVIP BlackRock Emerging Markets Managed Volatility Fund (Standard Class): To invest primarily in securities included in a broad-based emerging markets index and to seek to approximate as closely as possible, before fees and expenses, the performance of that index while seeking to control the level of portfolio volatility. |
| • | LVIP BlackRock Equity Dividend Managed Volatility Fund (Standard Class): Reasonable income by investing primarily in income-producing equity securities. |
| • | LVIP BlackRock Inflation Protected Bond Fund (Standard Class): To maximize real return, consistent with preservation of real capital and prudent investment management. |
| • | LVIP BlackRock U.S. Opportunities Managed Volatility Fund (Standard Class): Long-term capital appreciation. |
| • | LVIP Clarion Global Real Estate Fund (Standard Class): Total return through a combination of current income and long-term capital appreciation. |
| • | LVIP ClearBridge Large Cap Managed Volatility Fund (Standard Class)(2): Long-term capital appreciation. |
| • | LVIP Delaware Bond Fund (Standard Class)*: Maximum current income (yield) consistent with a prudent investment strategy. |
| • | LVIP Delaware Diversified Floating Rate Fund (Standard Class)*: Total return. |
| • | LVIP Delaware Social Awareness Fund (Standard Class)*: To maximize long-term capital appreciation. |
| • | LVIP Delaware Special Opportunities Fund (Standard Class)*: To maximize long-term capital appreciation. |
| • | LVIP Dimensional International Core Equity Fund (Standard Class): Long-term capital appreciation. |
| • | LVIP Dimensional International Core Equity Managed Volatility Fund (Standard Class)(2): Long-term capital appreciation. |
| • | LVIP Dimensional U.S. Core Equity 2 Fund (Standard Class): Long-term capital appreciation. |
| • | LVIP Dimensional U.S. Core Equity 2 Managed Volatility Fund (Standard Class)(2): Long-term capital appreciation. |
| • | LVIP Dimensional/Vanguard Total Bond Fund (Standard Class)(2): Total return consistent with the preservation of capital. |
| • | LVIP Global Conservative Allocation Managed Risk Fund (Standard Class)(2): A high level of current income with some consideration given to growth of capital. |
| • | LVIP Global Growth Allocation Managed Risk Fund (Standard Class)(2): A balance between a high level of current income and growth of capital, with a greater emphasis on growth of capital. |
| • | LVIP Global Income Fund (Standard Class): Current income consistent with the preservation of capital. |
| • | LVIP Global Moderate Allocation Managed Risk Fund (Standard Class)(2): A balance between a high level of current income and growth of capital, with an emphasis on growth of capital. |
| • | LVIP Invesco Diversified Equity-Income Managed Volatility Fund (Standard Class)(2): Capital appreciation and current income. |
| • | LVIP Ivy Mid Cap Growth Managed Volatility Fund (Standard Class): Capital appreciation. |
| • | LVIP JPMorgan High Yield Fund (Standard Class): A high level of current income; capital appreciation is the secondary objective. |
| • | LVIP JPMorgan Mid Cap Value Managed Volatility Fund (Standard Class): Long-term capital appreciation. |
| • | LVIP MFS International Growth Fund (Standard Class): Long-term capital appreciation. |
| • | LVIP MFS Value Fund (Standard Class): Capital appreciation. |
| • | LVIP Mondrian International Value Fund (Standard Class): Long-term capital appreciation as measured by the change in the value of fund shares over a period of three years or longer. |
| • | LVIP Money Market Fund (Standard Class): To maximize current income while maintaining a stable value of your shares (providing stability of net asset value) and preserving the value of your initial investment (preservation of capital). |
| • | LVIP Multi-Manager Global Equity Managed Volatility Fund (Standard Class)(2): Long-term growth of capital. |
| • | LVIP SSgA Bond Index Fund (Standard Class): To match as closely as practicable, before fees and expenses, the performance of the Barclays Capital U.S. Aggregate Index. |
| • | LVIP SSgA Conservative Index Allocation Fund (Standard Class)(2): A high level of current income, with some consideration given to growth of capital. |
| • | LVIP SSgA Conservative Structured Allocation Fund: (Standard Class)(2): A high level of current income, with some consideration given to growth of capital. |
| • | LVIP SSgA Developed International 150 Fund (Standard Class): To maximize long-term capital appreciation. |
| • | LVIP SSgA Emerging Markets 100 Fund (Standard Class): To maximize long-term capital appreciation. |
| • | LVIP SSgA Global Tactical Allocation Managed Volatility Fund (Standard Class)(2): Long-term growth of capital. |
| • | LVIP SSgA International Index Fund (Standard Class): To approximate as closely as practicable, before fees and expenses, the performance of a broad market index of non-U.S. foreign securities. |
| • | LVIP SSgA Large Cap 100 Fund (Standard Class): To maximize long-term capital appreciation. |
| • | LVIP SSgA Moderate Index Allocation Fund (Standard Class)(2): A balance between a high level of current income and growth of capital, with a greater emphasis on growth of capital. |
| • | LVIP SSgA Moderate Structured Allocation Fund (Standard Class)(2): A balance between a high level of current income and growth of capital, with an emphasis on growth of capital. |
| • | LVIP SSgA Moderately Aggressive Index Allocation Fund (Standard Class)(2): A balance between high level of current income and growth of capital, with a greater emphasis on growth of capital. |
| • | LVIP SSgA Moderately Aggressive Structured Allocation Fund (Standard Class)(2): A balance between high level of current income and growth of capital, with a greater emphasis on growth of capital. |
| • | LVIP SSgA S&P 500 Index Fund (Standard Class)(1): To approximate as closely as practicable, before fees and expenses, the total rate of return of common stocks publicly traded in the United States, as represented by the S&P 500 Index. |
| • | LVIP SSgA Small-Cap Index Fund (Standard Class): To approximate as closely as practicable, before fees and expenses, the performance of the Russell 2000® Index, which emphasizes stocks of small U.S. companies. |
| • | LVIP SSgA Small-Mid Cap 200 Fund (Standard Class): To maximize long-term capital appreciation. |
| • | LVIP T. Rowe Price Growth Stock Fund (Standard Class): Long-term capital growth. |
| • | LVIP T. Rowe Price Structured Mid-Cap Growth Fund (Standard Class): To maximize capital appreciation. |
| • | LVIP Templeton Growth Managed Volatility Fund (Standard Class): Long-term capital growth. |
| • | LVIP U.S. Growth Allocation Managed Risk Fund (Standard Class)(2): High level of current income and growth of capital, with an emphasis on growth of capital. |
| • | LVIP UBS Large Cap Growth Managed Volatility Fund (Standard Class): Long-term growth of capital in a manner consistent with the preservation of capital. |
| • | LVIP Vanguard Domestic Equity ETF Fund (Standard Class)(2): Long-term capital appreciation. |
| • | LVIP Vanguard International Equity ETF Fund (Standard Class)(2): Long-term capital appreciation. |
| • | LVIP VIP Mid Cap Managed Volatility Portfolio (Standard Class)(2): Capital appreciation. |
| • | LVIP Wellington Capital Growth Fund (Standard Class): Capital growth. |
| • | LVIP Wellington Mid-Cap Value Fund (Standard Class): Long-term capital appreciation. |
| • | Growth Series (Initial Class): Capital appreciation. |
| • | Utilities Series (Initial Class): Total return. |
| • | PIMCO VIT CommodityRealReturn® Strategy Portfolio (Administrative Class): Maximum real return. |
| * | Investments in Delaware Investments VIP Series, Delaware Funds, LVIP Delaware Funds or Lincoln Life accounts |
| managed by Delaware Investment Advisors, a series of Delaware Management Business Trust, are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46008 583 542 and its holding companies, including their subsidiaries or related companies, and are subject to investment risk, including possible delays in prepayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Series or Funds or accounts, the repayment of capital from the Series or Funds or account, or any particular rate of return. | |
| (1) | The Index this portfolio is managed to (the “Index”) is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by one or more of the portfolio’s service providers (“Licensee”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI. S&P®, S&P GSCI® and the Index are trademarks of S&P and have been licensed for use by SPDJI and its affiliates and sublicensed for certain purposes by Licensee. The Index is not owned, endorsed, or approved by or associated with any additional third party. Licensee’s product(s) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, or their third party licensors and none of SPDJI, Dow Jones, S&P nor their respective affiliates or third party licensors make any representation regarding the advisability of investing in such product(s). |
| (2) | These are “Fund of Funds” and as such purchase shares of other mutual funds rather than directly investing in debt and equity securities. As a result, Fund of Funds may have higher expenses than mutual funds which invest directly in debt and equity securities. |
| 1) | the shares of any Underlying Fund should no longer be available for investment by the Separate Account; or |
| 2) | the Sub-Account has not attracted significant Owner allocations; or |
| 3) | in our judgment, further investment in such shares ceases to be appropriate in view of the purpose of the Separate Account, legal, regulatory or federal income tax restrictions, or for any other reason. |
| • | change the investment objective of the Separate Account; |
| • | operate the Separate Account as a management investment company, unit investment trust, or any other form permitted under applicable securities laws; |
| • | deregister the Separate Account; or |
| • | combine the Separate Account with another separate account. |
| Crediting Rate by Indexed Account Option | |||
| Hypothetical Index Return | 1 Year PTP Capped Indexed Account Option Cap: 9.5% Participation Rate: 100% | 1 Year PTP Uncapped Indexed Account Option Cap: N/A Participation Rate: 52.5% | 1 Year PTP High Participation Indexed Account Option Cap: 8% Participation Rate: 140% |
| -4% | 1% | 1% | 1% |
| 6% | 6% | 3.15% | 8% |
| 8% | 8% | 4.2% | 8% |
| 15% | 9.5% | 7.87% | 8% |
| 32% | 9.5% | 16.8% | 8% |
| Based on the assumptions shown, performs best when Index returns approximately: | 8% to 18.09% | 18.09% and up | 0.72% to 8% |
| 1) | occurs after the tenth Policy Anniversary following Policy issue or increase in Specified Amount; or |
| 2) | is caused by a Partial Surrender. |
| 1) | is the amount of the decrease; |
| 2) | is the Initial Specified Amount; and |
| 3) | is the then applicable Surrender Charge from the schedule in the Policy. |
| 1) | initial death benefit amount , death benefit option, and death benefit qualification test; |
| 2) | optional riders; |
| 3) | the amount and frequency of Premium Payments; and |
| 4) | the amount of Net Premium Payment to be allocated to the selected Sub-Accounts , the Fixed Account, or the Indexed Account. |
| 1) | 25% of the Fixed Account Value as of the immediately preceding Policy Anniversary, or |
| 2) | the total dollar amount transferred from the Fixed Account in the immediately preceding Policy Year. |
| 1) | if the value in the money market Sub-Account or on a limited basis from the Fixed Account is insufficient to complete the next transfer; |
| 2) | seven calendar days after our Administrative Office receives a request for termination in writing or by telephone, with adequate authentication; |
| 3) | after 12 or 24 months (as elected by you); or |
| 4) | if your Policy is surrendered or otherwise terminates. |
| 1) | the Policy's Accumulation Value; minus |
| 2) | Indebtedness |
| (a) | if the Policy is fully surrendered during the first five Policy Years of the Exec Enhanced Surrender Value Period, the Enhanced Surrender Value payable on the date your Policy is surrendered will equal: |
| 1) | the Policy's Accumulation Value; minus |
| 2) | Indebtedness; plus |
| (A) | the lesser of (i) the Initial Specified Amount or (ii) the current Specified Amount, multiplied by |
| (B) | the Enhanced Surrender Value Per Thousand Adjustment Rate, shown in your Policy Specifications. Note: The result of this calculation provides a credit against a portion of the monthly Administrative Fees imposed during this period and will provide an offset against those charges described in the Administrative Fees section of “Table II: Periodic Charges Other Than Fund Operating Expenses” as a monthly fee per dollar of Initial Specified Amount or increase in Specified Amount. |
| (b) | if the Policy is fully surrendered at any time after the fifth Policy Year and before the end of the Exec Enhanced Surrender Value Period, the Enhanced Surrender Value payable on the date your Policy is surrendered will equal: |
| 1) | the Policy's Accumulation Value; minus |
| 2) | Indebtedness |
| • | Insured: Male Standard Non-tobacco, age 55 |
| • | Duration of Policy's Surrender Charge at issue: 6 years |
| • | Specified Amount: $2,500,000 |
| • | Benefit Selection Option: Not Elected |
| • | Death Benefit Option: 1 (Level) |
| • | Planned annual Premium Payment: $60,000 |
| • | No Indebtedness |
| • | Assumed Investment Return: 8.00% gross (7.35% net)* |
| • | For this case, the Enhanced Surrender Value Per Thousand Adjustment Rate is $4.39 per $1,000 of Specified Amount for Option 2 |
| Without Exec ESV Rider | With Exec ESV Rider – Option 1 | With Exec ESV Rider – Option 2 | ||||||||||
| End of Year | Accumulation Value | Surrender Value | Accumulation Value | Enhanced Surrender Value | Accumulation Value | Enhanced Surrender Value | ||||||
| 1 | $38,911 | $0 | $38,911 | $38,911 | $38,911 | $49,886 | ||||||
| 2 | $80,760 | $0 | $79,199 | $79,199 | $78,419 | $89,394 | ||||||
| 3 | $125,770 | $61,020 | $122,531 | $122,531 | $120,911 | $131,886 | ||||||
| 4 | $174,179 | $125,629 | $169,134 | $169,134 | $166,612 | $177,587 | ||||||
| 5 | $226,244 | $193,894 | $219,258 | $219,258 | $215,765 | $226,740 | ||||||
| 6 | $282,241 | $266,091 | $274,727 | $274,727 | $270,970 | $270,970 | ||||||
| * | The Assumed Investment Return shown is illustrative only. Your investment return may be higher or lower than the rate used to create this table. The table is intended to illustrate the effect(s) of the application of the Exec ESV Rider on policy values and is not intended to imply that a purchaser can expect to achieve the values shown. |
| 1) | we will no longer accept Premium Payments; |
| 2) | we will make no further deductions; |
| 3) | policy values held in the Separate Account and Holding Account will be transferred to the Fixed Account; |
| 4) | we will continue to credit interest to the Fixed Account; |
| 5) | we will no longer transfer amounts to the Sub-Accounts; |
| 6) | we will no longer allow any new Segments to be opened and the value of each Maturing Segment will be transferred to the Fixed Account on the Segment Maturity Date; |
| 7) | we will convert a Participating Loan to a Fixed Loan; and |
| 8) | we will continue to charge loan interest. |
| Male, 55 Year Old, Standard Non-tobacco | |||
| Benefit Selection Option | Monthly Administrative Expense Fee | Continuation of Coverage Specified Amount | Result |
| Election: None | $0.42167 per thousand of Specified Amount (higher) | 100% of Specified Amount (higher) | This option offers the full Specified Amount during Continuation of Coverage. The price of the protection is reflected in the higher Monthly Administrative Expense Fee. |
| Election: 50% | $0.26084 per thousand of Specified Amount (lower) | 50% of Specified Amount (lower) | This option offers less than the full Specified Amount during Continuation of Coverage. The Monthly Administrative Expense Fee is reduced in exchange. Therefore, this option allows somewhat more money to be invested in the Sub-Accounts or allocated to the Fixed Account and Indexed Account while providing a part of the Specified Amount during Continuation of Coverage. |
| Election: 100% | $0.10000 per thousand of Specified Amount (lowest) | 0% of Specified Amount (lowest) | This option offers no Continuation of Coverage Specified Amount. The Monthly Administrative Expense Fee is reduced in exchange. Therefore, this option allows more money to be invested in the Sub-Accounts or allocated to the Fixed Account and Indexed Account. |
| 1) | Full Surrender of the Policy; |
| 2) | death of the Insured; or |
| 3) | failure to pay the necessary amount of Premium to keep your Policy in force. |
| 1) | Net Premium Payments made; |
| 1) | the total value of Underlying Fund shares held in the Sub-Account is calculated by multiplying the number of Underlying Fund shares owned by the Sub-Account at the beginning of the Valuation Period by the net asset value per share of the Underlying Fund at the end of the Valuation Period, and adding any dividend or other distribution of the Underlying Fund made during the Valuation Period; minus |
| 2) | the liabilities of the Sub-Account at the end of the Valuation Period. Such liabilities include daily charges imposed on the Sub-Account, and may include a charge or credit with respect to any taxes paid or reserved for by Lincoln Life that we determine result from the operations of the Separate Account; and |
| 3) | the result of (1) minus (2) is divided by the number of Variable Accumulation Units for that Sub-Account outstanding at the beginning of the Valuation Period. |
| 1) | the amount determined by the death benefit option (see below) in effect on the date of the death of the Insured, less any Indebtedness; or |
| 2) | an amount equal to the Accumulation Value on the date of death plus any interest credited to a Segment that has not reached maturity on the date of the Insured's death at the guaranteed annual interest of 1.0% applied on a prorated basis multiplied by the applicable percentage shown in the Corridor Percentages Table in the Policy Specifications, less any Indebtedness. (Please note that the investment performance of the Sub-Accounts you have chosen will impact the Accumulation Value and therefore may affect the amount of Death Benefit Proceeds payable.) |
| Option | Death Benefit Proceeds Equal to the | Variability |
| 1 | Specified Amount (a minimum of $100,000) level death benefit, less any Partial Surrenders after the date of death. | None; level death benefit |
| 2 | The greater of: a) the sum of the Specified Amount plus the Accumulation Value as of the date of the Insured’s death, less any Partial Surrenders after the date of death; or b) the Specified Amount as of the date of the Insured's death, multiplied by 115%, less any Partial Surrenders after the date of death. For all other Policies, only a) applies. | May increase or decrease over time, depending on the amount of Premium paid and the investment performance of the Sub-Accounts or the interest credited to the Fixed Account and Indexed Account. |
| 3 | Sum of the Specified Amount plus the accumulated Premiums, up to the Death Benefit Option 3 limit as shown on the Policy Specifications less any Partial Surrenders after the date of death. | Will generally increase, depending on the amount of Premium paid. |
| Option change | Impact |
| 2 to 1 | The Specified Amount will be increased by the greater of: a) the Accumulation Value as of the effective date of change; or b) the Specified Amount as of the Monthly Anniversary Day on or next following the date we receive the request for a change, multiplied by 15%. (This changes the death benefit under the Policy from one that may increase over time by the growth in the Accumulation Value to a level death benefit.) |
| 3 to 1 | The Specified Amount will be increased by accumulated Premiums up to the Death Benefit Option 3 limit as shown on the Policy Specifications as of the effective date of the change. |
| Death Benefit Option in Effect | Impact of Partial Surrender |
| 1 | The Specified Amount will be reduced by the greater of: a. zero; or b. an amount equal to the amount of the Partial Surrender minus the greater of i) zero and ii) the result of [(1) minus (2)] divided by (3) where: (1) is an amount equal to the Accumulation Value on the Valuation Day immediately prior to the Partial Surrender multiplied by the applicable percentage shown in the Corridor Percentages Table in the Policy Specifications; (2) is the Specified Amount immediately prior to the Partial Surrender; and (3) is the applicable percentage shown in the Corridor Percentages Table in the Policy Specifications. |
| 2 | Will reduce the Accumulation Value, but not the Specified Amount. |
| 3 | Will reduce the accumulated Premiums, and the Specified Amount to the extent that the amount of the Partial Surrender exceeds the accumulated Premiums. |
| a. | Allocate the Net Premium Payment or loan repayment to the Fixed Account, and |
| b. | Restrict transfers from the Fixed Account or the Sub-Accounts into the Holding Account for allocation to the Indexed Account. |
| a. | the Policy’s Surrender Value; or |
| b. | the sum of the Holding Account Value plus Indexed Account Value. |
| 1) | the Surrender Value of the Policy is insufficient to pay the Monthly Deduction, and |
| 2) | the No-Lapse Provision of the Policy is not preventing the termination of the Policy, then all coverage will terminate. This is referred to as Policy Lapse. |
| 1) | because it has been exhausted by earlier deductions; |
| 2) | as a result of poor investment performance; |
| 3) | due to Partial Surrenders; |
| 4) | due to Indebtedness for Policy Loans; or |
| 5) | because of a combination of any of these factors. |
| If, on the Policy Date, the Insured is: | The No-Lapse period is: |
| • Ages 0-50, | 20 years |
| • Age 51, | 19 years |
| • Age 52, | 18 years |
| • Age 53, | 17 years |
| • Age 54, | 16 years |
| • Age 55, | 15 years |
| • Age 56, | 14 years |
| • Age 57, | 13 years |
| • Age 58, | 12 years |
| • Age 59, | 11 years |
| • Age 60 and above | 10 years |
| 1) | it has not been surrendered; |
| 2) | there is an application for reinstatement in writing; |
| 3) | satisfactory evidence of insurability of the Insured is furnished to us and we agree to accept the risk for the Insured; |
| 4) | we receive a payment sufficient to keep your Policy in force for at least two months; and |
| 5) | any accrued loan interest is paid and any remaining Indebtedness is either paid or reinstated. |
| GENERAL INFORMATION | |
| Lincoln Life | |
| Capital Markets | |
| Registration Statement | |
| Changes of Investment Policy | |
| Principal Underwriter | |
| Disaster Plan | |
| Advertising & Ratings | |
| Unclaimed Property | |
| SERVICES | |
| Independent Registered Public Accounting Firm | |
| Accounting Services | |
| Checkbook Service for Disbursements | |
| Administrative Services |
| POLICY INFORMATION | |
| Corporate and Group Purchasers and Case Exceptions | |
| Assignment | |
| Transfer of Ownership | |
| Beneficiary | |
| Right to Convert Contract | |
| Change of Plan | |
| Settlement Options | |
| Deferment of Payments | |
| Incontestability | |
| Misstatement of Age or Gender | |
| Suicide | |
| PERFORMANCE DATA | |
| FINANCIAL STATEMENTS | |
| Separate Account | |
| Company |
| Contents | Page | |
| 2 | ||
| 2 | ||
| 2 | ||
| 2 | ||
| 2 | ||
| 3 | ||
| 3 | ||
| 3 | ||
| 4 | ||
| 4 | ||
| 4 | ||
| 5 | ||
| 5 | ||
| 5 | ||
| 5 | ||
| 5 |
| • | an annual reduction for fund management fees and expenses, and |
| • | a policy level mortality and expense charge applied on a daily equivalent basis, but |
| • | no deductions for additional policy expenses (i.e., Premium Loads, Administrative Fees, and Cost of Insurance Charges), which, if included, would have resulted in lower performance. |
| a) | calculating the change in unit value for the base period (the 7-day period ended December 31, of the previous year); then |
| b) | dividing this figure by the unit value at the beginning of the period; then |
| c) | annualizing this result by the factor of 365/7. |
| Where: | P = a hypothetical initial purchase payment of $1,000 |
| T = average annual total return for the period in question | |
| n = number of years | |
| ERV = ending redeemable value (as of the end of the period in question) of a hypothetical $1,000 purchase payment made at the beginning of the 1-year, 3-year, 5-year, or 10-year period in question (or fractional period thereof) |
| (1) | all recurring fees have been charged to the Owner’s accounts; and |
| (2) | there will be a complete redemption upon the anniversary of the 1-year, 3-year, 5-year, or 10-year period in question. |
Lincoln Life & Annuity Company of New York
Lincoln Life & Annuity Company of New York
Financial Statements
December 31, 2014 and 2013
Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholder of
Lincoln Life & Annuity Company of New York
We have audited the accompanying balance sheets of Lincoln Life & Annuity Company of New York (the Company) as of December 31, 2014 and 2013, and the related statements of comprehensive income (loss), stockholder’s equity, and cash flows for each of the three years in the period ended December 31, 2014. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lincoln Life & Annuity Company of New York at December 31, 2014 and 2013, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2014, in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
1
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
BALANCE SHEETS
(in millions, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|||||
|
|
|
|
|
2013 |
|
|||
|
ASSETS |
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
Available-for-sale securities, at fair value: |
|
|
|
|
|
|
|
|
|
Fixed maturity securities (amortized cost: 2014 – $6,947; 2013 – $6,880) |
|
$ |
7,665 |
|
|
$ |
7,259 |
|
|
Mortgage loans on real estate |
|
|
551 |
|
|
|
521 |
|
|
Policy loans |
|
|
361 |
|
|
|
382 |
|
|
Total investments |
|
|
8,577 |
|
|
|
8,162 |
|
|
Cash and invested cash |
|
|
64 |
|
|
|
10 |
|
|
Deferred acquisition costs and value of business acquired |
|
|
466 |
|
|
|
586 |
|
|
Premiums and fees receivable |
|
|
9 |
|
|
|
8 |
|
|
Accrued investment income |
|
|
104 |
|
|
|
103 |
|
|
Reinsurance recoverables |
|
|
434 |
|
|
|
478 |
|
|
Reinsurance related embedded derivatives |
|
|
11 |
|
|
|
8 |
|
|
Goodwill |
|
|
60 |
|
|
|
60 |
|
|
Other assets |
|
|
235 |
|
|
|
150 |
|
|
Separate account assets |
|
|
4,684 |
|
|
|
4,099 |
|
|
Total assets |
|
$ |
14,644 |
|
|
$ |
13,664 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDER’S EQUITY |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Future contract benefits |
|
$ |
1,508 |
|
|
$ |
1,439 |
|
|
Other contract holder funds |
|
|
5,641 |
|
|
|
5,708 |
|
|
Short-term debt |
|
|
- |
|
|
|
11 |
|
|
Income taxes payable |
|
|
452 |
|
|
|
362 |
|
|
Other liabilities |
|
|
97 |
|
|
|
64 |
|
|
Separate account liabilities |
|
|
4,684 |
|
|
|
4,099 |
|
|
Total liabilities |
|
|
12,382 |
|
|
|
11,683 |
|
|
|
|
|
|
|
|
|
|
|
|
Contingencies and Commitments (See Note 10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholder’s Equity |
|
|
|
|
|
|
|
|
|
Common stock – 132,000 shares authorized, issued and outstanding |
|
|
941 |
|
|
|
941 |
|
|
Retained earnings |
|
|
1,054 |
|
|
|
907 |
|
|
Accumulated other comprehensive income (loss) |
|
|
267 |
|
|
|
133 |
|
|
Total stockholder’s equity |
|
|
2,262 |
|
|
|
1,981 |
|
|
Total liabilities and stockholder’s equity |
|
$ |
14,644 |
|
|
$ |
13,664 |
|
See accompanying Notes to Financial Statements
2
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in millions)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Insurance premiums |
$ |
167 |
|
$ |
151 |
|
$ |
139 |
|
|
Fee income |
|
288 |
|
|
273 |
|
|
275 |
|
|
Net investment income |
|
421 |
|
|
419 |
|
|
421 |
|
|
Realized gain (loss): |
|
|
|
|
|
|
|
|
|
|
Total other-than-temporary impairment losses on securities |
|
(5 |
) |
|
(10 |
) |
|
(22 |
) |
|
Portion of loss recognized in other comprehensive income |
|
2 |
|
|
2 |
|
|
10 |
|
|
Net other-than-temporary impairment losses on securities recognized in earnings |
|
(3 |
) |
|
(8 |
) |
|
(12 |
) |
|
Realized gain (loss), excluding other-than-temporary impairment losses on securities |
|
(9 |
) |
|
(7 |
) |
|
(7 |
) |
|
Total realized gain (loss) |
|
(12 |
) |
|
(15 |
) |
|
(19 |
) |
|
Other revenues |
|
62 |
|
|
- |
|
|
- |
|
|
Total revenues |
|
926 |
|
|
828 |
|
|
816 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
Interest credited |
|
203 |
|
|
204 |
|
|
207 |
|
|
Benefits |
|
316 |
|
|
292 |
|
|
265 |
|
|
Commissions and other expenses |
|
191 |
|
|
204 |
|
|
191 |
|
|
Total expenses |
|
710 |
|
|
700 |
|
|
663 |
|
|
Income (loss) from continuing operations before taxes |
|
216 |
|
|
128 |
|
|
153 |
|
|
Federal income tax expense (benefit) |
|
69 |
|
|
37 |
|
|
59 |
|
|
Net income (loss) |
|
147 |
|
|
91 |
|
|
94 |
|
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on available-for-sale securities |
|
131 |
|
|
(202 |
) |
|
83 |
|
|
Unrealized other-than-temporary impairment on available-for-sale securities |
|
3 |
|
|
3 |
|
|
(1 |
) |
|
Total other comprehensive income (loss), net of tax |
|
134 |
|
|
(199 |
) |
|
82 |
|
|
Comprehensive income (loss) |
$ |
281 |
|
$ |
(108 |
) |
$ |
176 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements
3
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
STATEMENTS OF STOCKHOLDER’S EQUITY
(in millions)
|
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|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
|
|
|
|
|
|
|
|
Balance as of beginning-of-year |
$ |
941 |
|
$ |
941 |
|
$ |
941 |
|
|
Stock compensation/issued for benefit plans |
|
- |
|
|
- |
|
|
- |
|
|
Balance as of end-of-year |
|
941 |
|
|
941 |
|
|
941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained Earnings |
|
|
|
|
|
|
|
|
|
|
Balance as of beginning-of-year |
|
907 |
|
|
816 |
|
|
722 |
|
|
Net income (loss) |
|
147 |
|
|
91 |
|
|
94 |
|
|
Balance as of end-of-year |
|
1,054 |
|
|
907 |
|
|
816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) |
|
|
|
|
|
|
|
|
|
|
Balance as of beginning-of-year |
|
133 |
|
|
332 |
|
|
250 |
|
|
Other comprehensive income (loss), net of tax |
|
134 |
|
|
(199 |
) |
|
82 |
|
|
Balance as of end-of-year |
|
267 |
|
|
133 |
|
|
332 |
|
|
Total stockholder’s equity as of end-of-year |
$ |
2,262 |
|
$ |
1,981 |
|
$ |
2,089 |
|
See accompanying Notes to Financial Statements
4
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
STATEMENTS OF CASH FLOWS
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Cash Flows from Operating Activities |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
147 |
|
$ |
91 |
|
$ |
94 |
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
Deferred acquisition costs, value of business acquired, deferred sales inducements |
|
|
|
|
|
|
|
|
|
|
and deferred front-end loads deferrals and interest, net of amortization |
|
16 |
|
|
24 |
|
|
21 |
|
|
Change in premiums and fees receivable |
|
(1 |
) |
|
(7 |
) |
|
4 |
|
|
Change in accrued investment income |
|
(1 |
) |
|
(4 |
) |
|
(2 |
) |
|
Change in future contract benefits and other contract holder funds |
|
(84 |
) |
|
(196 |
) |
|
(178 |
) |
|
Change in reinsurance related assets and liabilities |
|
(4 |
) |
|
(8 |
) |
|
32 |
|
|
Change in federal income tax accruals |
|
17 |
|
|
19 |
|
|
51 |
|
|
Realized (gain) loss |
|
12 |
|
|
15 |
|
|
19 |
|
|
Other |
|
(79 |
) |
|
(21 |
) |
|
(13 |
) |
|
Net cash provided by (used in) operating activities |
|
23 |
|
|
(87 |
) |
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities |
|
|
|
|
|
|
|
|
|
|
Purchases of available-for-sale securities |
|
(502 |
) |
|
(785 |
) |
|
(664 |
) |
|
Sales of available-for-sale securities |
|
83 |
|
|
50 |
|
|
38 |
|
|
Maturities of available-for-sale securities |
|
354 |
|
|
561 |
|
|
567 |
|
|
Purchases of other investments |
|
(122 |
) |
|
(170 |
) |
|
(335 |
) |
|
Sales or maturities of other investments |
|
114 |
|
|
89 |
|
|
197 |
|
|
Net cash provided by (used in) investing activities |
|
(73 |
) |
|
(255 |
) |
|
(197 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities |
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in short-term debt |
|
(11 |
) |
|
11 |
|
|
- |
|
|
Deposits of fixed account values, including the fixed portion of variable |
|
656 |
|
|
654 |
|
|
611 |
|
|
Withdrawals of fixed account values, including the fixed portion of variable |
|
(373 |
) |
|
(238 |
) |
|
(311 |
) |
|
Transfers to and from separate accounts, net |
|
(166 |
) |
|
(127 |
) |
|
(94 |
) |
|
Common stock issued for benefit plans and excess tax benefits |
|
(2 |
) |
|
(2 |
) |
|
- |
|
|
Net cash provided by (used in) financing activities |
|
104 |
|
|
298 |
|
|
206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and invested cash |
|
54 |
|
|
(44 |
) |
|
37 |
|
|
Cash and invested cash as of beginning-of-year |
|
10 |
|
|
54 |
|
|
17 |
|
|
Cash and invested cash as of end-of-year |
$ |
64 |
|
$ |
10 |
|
$ |
54 |
|
See accompanying Notes to Financial Statements
5
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
1. Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies
Nature of Operations
Lincoln Life & Annuity Company of New York (“LLANY” or the “Company”, which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of The Lincoln National Life Insurance Company (“LNL”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Ultimate Parent”), is domiciled in the state of New York. LLANY is principally engaged in the sale of individual life insurance products, individual annuity products and worksite and group non-medical products (primarily term life and disability). These products are marketed primarily through personal-producing general agents and brokers throughout the U.S. LLANY is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 19 for additional information.
Basis of Presentation
The accompanying financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below.
Summary of Significant Accounting Policies
Accounting Estimates and Assumptions
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain invested assets and derivatives, other-than-temporary impairment (“OTTI”) and asset valuation allowances, deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”), goodwill, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”), pension plans, income taxes and the potential effects of resolving litigated matters.
Business Combinations
We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The financial statements include the results of operations of any acquired company since the acquisition date.
Fair Value Measurement
Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk (“NPR”), which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”),
we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows:
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Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; |
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Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and |
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Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. |
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of
the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment.
When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources.
Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs
Securities classified as available-for-sale (“AFS”) consist of fixed maturity and equity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI, future contract benefits, other contract holder funds and deferred income taxes.
We measure the fair value of our securities classified as AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity or equity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy.
The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value.
The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our AFS securities discussed above:
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Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance EngineTM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. |
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Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLOs”) and collateralized debt obligations (“CDOs”). |
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State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. |
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Hybrid and redeemable preferred and equity securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred and equity securities. |
In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next.
AFS Securities – Evaluation for Recovery of Amortized Cost
We regularly review our AFS securities for declines in fair value that we determine to be other-than-temporary. For an equity security, if we do not have the ability and intent to hold the security for a sufficient period of time to allow for a recovery in value, we conclude that an OTTI has occurred and the amortized cost of the equity security is written down to the current fair value, with a corresponding charge to realized gain (loss) on our Statements of Comprehensive Income (Loss). When assessing our ability and intent to hold the equity
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security to recovery, we consider, among other things, the severity and duration of the decline in fair value of the equity security as well as the cause of the decline, a fundamental analysis of the liquidity, and business prospects and overall financial condition of the issuer.
For our fixed maturity AFS securities (also referred to as “debt securities”), we generally consider the following to determine whether our unrealized losses are other-than-temporarily impaired:
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The estimated range and average period until recovery; |
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The estimated range and average holding period to maturity; |
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Remaining payment terms of the security; |
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Current delinquencies and nonperforming assets of underlying collateral; |
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Expected future default rates; |
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Collateral value by vintage, geographic region, industry concentration or property type; |
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Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and |
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Contractual and regulatory cash obligations. |
For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to realized gain (loss) on our Statements of Comprehensive Income (Loss), as this amount is deemed the credit portion of the OTTI. The remainder of the decline to fair value is recorded in other comprehensive income (“OCI”) to unrealized OTTI on AFS securities on our Statements of Stockholder’s Equity, as this amount is considered a noncredit (i.e., recoverable) impairment.
When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, which we use to determine the amount of a credit loss.
Our conclusion that it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis, the estimated future cash flows are equal to or greater than the amortized cost basis of the debt securities, or we have the ability to hold the equity AFS securities for a period of time sufficient for recovery is based upon our asset-liability management process. Management considers the following as part of the evaluation:
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The current economic environment and market conditions; |
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Our business strategy and current business plans; |
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The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; |
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Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; |
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The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; |
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The capital risk limits approved by management; and |
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Our current financial condition and liquidity demands. |
To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following:
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Historical and implied volatility of the security; |
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Length of time and extent to which the fair value has been less than amortized cost; |
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Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; |
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Failure, if any, of the issuer of the security to make scheduled payments; and |
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Recoveries or additional declines in fair value subsequent to the balance sheet date. |
In periods subsequent to the recognition of an OTTI, the AFS security is accounted for as if it had been purchased on the measurement date of the OTTI. Therefore, for the fixed maturity AFS security, the original discount or reduced premium is reflected in net investment income over the contractual term of the investment in a manner that produces a constant effective yield.
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To determine recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following:
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Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; |
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Fundamentals of the industry in which the issuer operates; |
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Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; |
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Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); |
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Expectations regarding defaults and recovery rates; |
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Changes to the rating of the security by a rating agency; and |
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Additional market information (e.g., if there has been a replacement of the corporate debt security). |
Each quarter we review the cash flows for the MBS to determine whether or not they are sufficient to provide for the recovery of our amortized cost. We revise our cash flow projections only for those securities that are at most risk for impairment based on current credit enhancement and trends in the underlying collateral performance. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following:
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Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; |
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Level of creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; |
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Susceptibility to fair value fluctuations for changes in the interest rate environment; |
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Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; |
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Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; |
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Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and |
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Susceptibility to variability of prepayments. |
When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include type of underlying collateral (e.g., prime, Alt-A or subprime), geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required.
Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then impairment is recognized.
We further monitor the cash flows of all of our AFS securities backed by pools on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our AFS securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment of the security.
Mortgage Loans on Real Estate
Mortgage loans on real estate are carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of valuation allowances. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred.
Our commercial loan portfolio is comprised of long-term loans secured by existing commercial real estate. As such, it does not exhibit risk characteristics unique to mezzanine, construction, residential, agricultural, land or other types of real estate loans. We believe all of
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the loans in our portfolio share three primary risks: borrower creditworthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods for monitoring and assessing credit risk are consistent for our entire portfolio. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a valuation allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Valuation allowances are maintained at a level we believe is adequate to absorb estimated probable credit losses of each specific loan. Our periodic evaluation of the adequacy of the allowance for losses is based on our past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) an allowance for credit losses. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase loss reserves for a specific loan based upon this analysis. Our process for determining past due or delinquency status begins when a payment date is missed, at which time the borrower is contacted. After the grace period expiration that may last up to 10 days, we send a default notice. The default notice generally provides a short time period to cure the default. Our policy is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectable are charged against the allowance for losses, and subsequent recoveries, if any, are credited to the allowance for losses. All mortgage loans that are impaired have an established allowance for credit losses. Changes in valuation allowances are reported in realized gain (loss) on our Statements of Comprehensive Income (Loss).
We measure and assess the credit quality of our mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan.
Policy Loans
Policy loans represent loans we issue to contract holders that use the cash surrender value of their life insurance policy as collateral. Policy loans are carried at unpaid principal balances.
Derivative Instruments
We have certain variable annuity products with guaranteed withdrawal benefits (“GWB”) and guaranteed income benefits (“GIB”) features that are embedded derivatives and reported as either assets or liabilities on our Balance Sheets. These embedded derivatives are carried at fair value with changes in fair value recognized in net income during the period of change.
Cash and Invested Cash
Cash and invested cash is carried at cost and includes all highly liquid debt instruments purchased with an original maturity of three months or less.
DAC, VOBA, DSI and DFEL
Acquisition costs directly related to successful contract acquisitions or renewals of universal life insurance (“UL”), variable universal life insurance (“VUL”), traditional life insurance, annuities and other investment contracts have been deferred (i.e., DAC) to the extent recoverable. VOBA is an intangible asset that reflects the estimated fair value of in-force contracts in a life insurance company acquisition and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the business in force at the acquisition date. Bonus credits and excess interest for dollar cost averaging contracts are considered DSI. Contract sales charges that are collected in the early years of an insurance contract are deferred (i.e., DFEL), and the unamortized balance is reported in other contract holder funds on our Balance Sheets.
Both DAC and VOBA amortization, excluding amounts reported in realized gain (loss), is reported within commissions and other expenses on our Statements of Comprehensive Income (Loss). DSI amortization, excluding amounts reported in realized gain (loss), is reported in interest credited on our Statements of Comprehensive Income (Loss). The amortization of DFEL, excluding amounts reported in realized gain (loss), is reported within fee income on our Statements of Comprehensive Income (Loss). The methodology for determining the amortization of DAC, VOBA, DSI and DFEL varies by product type. For all insurance contracts, amortization is based
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on assumptions consistent with those used in the development of the underlying contract adjusted for emerging experience and expected trends.
Acquisition costs for UL and VUL and investment-type products, which include fixed and variable deferred annuities, are generally amortized over the lives of the policies in relation to the incidence of estimated gross profits (“EGPs”) from surrender charges, investment, mortality net of reinsurance ceded and expense margins and actual realized gain (loss) on investments. Contract lives for UL and VUL policies are estimated to be 30 to 40 years based on the expected lives of the contracts. Contract lives for fixed and variable deferred annuities are generally between 13 and 30 years, while some of our fixed multi-year guarantee products have amortization periods equal to the guarantee period. The front-end load annuity product has an assumed life of 25 years. Longer lives are assigned to those blocks that have demonstrated favorable lapse experience.
Acquisition costs for all traditional contracts, including traditional life insurance contracts, such as individual whole life, group business and term life insurance, are amortized over the expected premium-paying period that ranges from 7 to 77 years. Acquisition costs are either amortized on a straight-line basis or as a level percent of premium of the related policies depending on the block of business. There is currently no DAC, VOBA, DSI or DFEL balance or related amortization for fixed and variable payout annuities.
We account for modifications of insurance contracts that result in a substantially unchanged contract as a continuation of the replaced contract. We account for modifications of insurance contracts that result in a substantially changed contract as an extinguishment of the replaced contract.
The carrying amounts of DAC, VOBA, DSI and DFEL are adjusted for the effects of realized and unrealized gains and losses on securities classified as AFS and certain derivatives and embedded derivatives. Amortization expense of DAC, VOBA, DSI and DFEL reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, we recognize a true-up to our DAC, VOBA, DSI and DFEL amortization within realized gain (loss) on our Statements of Comprehensive Income (Loss) reflecting the incremental effect of actual versus expected credit-related investment losses. These actual to expected amortization adjustments can create volatility from period to period in realized gain (loss).
During the third quarter of each year, we conduct our annual comprehensive review of the assumptions and the projection models used for our estimates of future gross profits underlying the amortization of DAC, VOBA, DSI and DFEL and the calculations of the embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees. These assumptions include investment margins, mortality, retention, rider utilization and maintenance expenses (costs associated with maintaining records relating to insurance and individual and group annuity contracts, and with the processing of premium collections, deposits, withdrawals and commissions). Based on our review, the cumulative balances of DAC, VOBA, DSI and DFEL included on our Balance Sheets are adjusted with an offsetting benefit or charge to revenue or amortization expense to reflect such change related to our expectations of future EGPs (“unlocking”). We may have unlocking in other quarters as we become aware of information that warrants updating assumptions outside of our annual comprehensive review. We may also identify and implement actuarial modeling refinements that result in increases or decreases to the carrying values of DAC, VOBA, DSI, DFEL, embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees.
DAC, VOBA, DSI and DFEL are reviewed to ensure that the unamortized portion does not exceed the expected recoverable amounts.
Reinsurance
We enter into reinsurance agreements with other companies in the normal course of business. Assets and liabilities and premiums and benefits from certain reinsurance contracts that grant statutory surplus relief to other insurance companies are netted on our Balance Sheets and Statements of Comprehensive Income (Loss), respectively, because there is a right of offset. All other reinsurance agreements are reported on a gross basis on our Balance Sheets as an asset for amounts recoverable from reinsurers or as a component of other liabilities for amounts, such as premiums, owed to the reinsurers, with the exception of modified coinsurance (“Modco”) agreements for which the right of offset also exists. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums, benefits and DAC are reported net of insurance ceded.
Goodwill
We recognize the excess of the purchase price, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed at least annually for indications of value impairment, with consideration given to financial performance and other relevant factors. We perform a two-step test in our evaluation of the carrying value of goodwill for each of our reporting units, if qualitative factors determine it is necessary to complete the two-step goodwill impairment test. The results of one test on one reporting unit cannot subsidize the results of another reporting unit. In Step 1 of the evaluation, the fair value of each reporting unit is determined and compared to the carrying value of the reporting unit. If the fair value is greater than the carrying value, then the carrying value of the reporting unit is deemed to be recoverable, and Step 2 is not required. If the fair value estimate is less than the carrying value, it is an indicator that impairment may exist, and Step 2 is required. In Step 2, the implied fair value of goodwill is determined for the reporting unit. The reporting unit’s fair value as determined in Step 1 is assigned to all of its net assets (recognized and unrecognized) as if the reporting unit were acquired in a business combination as of the date of the impairment test. If the implied fair value of the reporting unit’s goodwill is lower than its carrying amount, goodwill is
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impaired and written down to its fair value; and a charge is reported in impairment of intangibles on our Statements of Comprehensive Income (Loss).
Other Assets and Other Liabilities
Other assets consist primarily of DSI, specifically identifiable intangible assets, property and equipment owned by the Company, balances associated with corporate-owned and bank-owned life insurance, certain reinsurance assets, receivables resulting from sales of securities that had not yet settled as of the balance sheet date and other prepaid expenses. Other liabilities consist primarily of employee benefit liabilities, certain reinsurance payables, payables resulting from purchases of securities that had not yet settled as of the balance sheet date and other accrued expenses.
Other assets and other liabilities on our Balance Sheets include GLB features and remaining guaranteed interest and similar contracts that are carried at fair value, which may be reported in either other assets or other liabilities. The fair value of these items represents approximate exit price including an estimate for our NPR. Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We classify these GLB reserves embedded derivatives in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” We report the insurance portion of the reserves in future contract benefits.
The carrying values of specifically identifiable intangible assets are reviewed at least annually for indicators of impairment in value that are other-than-temporary, including unexpected or adverse changes in the following: the economic or competitive environments in which the company operates; profitability analyses; cash flow analyses; and the fair value of the relevant business operation. If there was an indication of impairment, then the discounted cash flow method would be used to measure the impairment, and the carrying value would be adjusted as necessary and reported in impairment of intangibles on our Statements of Comprehensive Income (Loss). Sales force intangibles are attributable to the value of the new business distribution system acquired through business combinations. These assets are amortized on a straight-line basis over their useful life of 25 years.
Property and equipment owned for company use is carried at cost less allowances for depreciation. Provisions for depreciation of investment real estate and property and equipment owned for company use are computed principally on the straight-line method over the estimated useful lives of the assets, which include buildings, computer hardware and software and other property and equipment. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value.
Long-lived assets to be disposed of by abandonment or in an exchange for a similar productive long-lived asset are classified as held-for-use until they are disposed. Long-lived assets to be sold are classified as held-for-sale and are no longer depreciated. Certain criteria have to be met in order for the long-lived asset to be classified as held-for-sale, including that a sale is probable and expected to occur within one year. Long-lived assets classified as held-for-sale are recorded at the lower of their carrying amount or fair value less cost to sell.
Separate Account Assets and Liabilities
We maintain separate account assets, which are reported at fair value. The related liabilities are reported at an amount equivalent to the separate account assets. Investment risks associated with market value changes are borne by the contract holders, except to the extent of minimum guarantees made by the Company with respect to certain accounts.
We issue variable annuity contracts through our separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities). We also issue variable annuity and life contracts through separate accounts that include various types of guaranteed death benefit (“GDB”), GWB and GIB features. The GDB features include those where we contractually guarantee to the contract holder either: return of no less than total deposits made to the contract less any partial withdrawals (“return of net deposits”); total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”); or the highest contract value on any contract anniversary date through age 80 minus any payments or withdrawals following the contract anniversary (“anniversary contract value”).
As discussed in Note 4, certain features of these guarantees are accounted for as embedded derivative reserves, whereas other guarantees are accounted for as benefit reserves. Other guarantees contain characteristics of both and are accounted for under an approach that calculates the value of the embedded derivative reserve and the benefit reserve based on the specific characteristics of each GLB feature. We use derivative instruments to hedge our exposure to the risks and earnings volatility that result from the embedded derivatives for living benefits in certain of our variable annuity products. The change in fair value of these instruments tends to move in the opposite direction of the change in the value of the associated reserves. The net impact of these changes is reported as a component of realized gain (loss) on our Statements of Comprehensive Income (Loss).
11
The “market consistent scenarios” used in the determination of the fair value of the GLB liability are similar to those used by an investment bank to value derivatives for which the pricing is not transparent and the aftermarket is nonexistent or illiquid. We use risk-neutral Monte Carlo simulations in our calculation to value the entire block of guarantees, which involve 100 unique scenarios per policy or approximately 46 million scenarios. The market consistent scenario assumptions, as of each valuation date, are those we view to be appropriate for a hypothetical market participant. The market consistent inputs include assumptions for the capital markets (e.g., implied volatilities, correlation among indices, risk-free swap curve, etc.), policyholder behavior (e.g., policy lapse, benefit utilization, mortality, etc.), risk margins, administrative expenses and a margin for profit. We believe these assumptions are consistent with those that would be used by a market participant; however, as the related markets develop we will continue to reassess our assumptions. It is possible that different valuation techniques and assumptions could produce a materially different estimate of fair value.
Future Contract Benefits and Other Contract Holder Funds
Future contract benefits represent liability reserves that we have established and carry based on estimates of how much we will need to pay for future benefits and claims. Other contract holder funds represent liabilities for fixed account values, including the fixed portion of variable, dividends payable, premium deposit funds, undistributed earnings on participating business and other contract holder funds as well the carrying value of DFEL discussed above.
The liabilities for future contract benefits and claim reserves for UL and VUL policies consist of contract account balances that accrue to the benefit of the contract holders, excluding surrender charges. The liabilities for future insurance contract benefits and claim reserves for traditional life policies are computed using assumptions for investment yields, mortality and withdrawals based principally on generally accepted actuarial methods and assumptions at the time of contract issue. Investment yield assumptions for traditional direct individual life reserves for all contracts range from 2.25% to 7.75% depending on the time of contract issue. The investment yield assumptions for immediate and deferred paid-up annuities range from 1.50% to 10.00%. These investment yield assumptions are intended to represent an estimation of the interest rate experience for the period that these contract benefits are payable.
The liabilities for future claim reserves for variable annuity products containing GDB features are calculated by estimating the present value of total expected benefit payments over the life of the contract from inception divided by the present value of total expected assessments over the life of the contract (“benefit ratio”) multiplied by the cumulative assessments recorded from the contract inception through the balance sheet date less the cumulative GDB payments plus interest on the liability. The change in the liability for a period is the benefit ratio multiplied by the assessments recorded for the period less GDB claims paid in the period plus interest. As experience or assumption changes result in a change in expected benefit payments or assessments, the benefit ratio is unlocked, that is, recalculated using the updated expected benefit payments and assessments over the life of the contract since inception. The revised benefit ratio is then applied to the liability calculation described above, with the resulting change in liability reported in benefits on our Statements of Comprehensive Income (Loss).
With respect to our future contract benefits and other contract holder funds, we continually review overall reserve position, reserving techniques and reinsurance arrangements. As experience develops and new information becomes known, liabilities are adjusted as deemed necessary. The effects of changes in estimates are included in the operating results for the period in which such changes occur.
The business written or assumed by us includes participating life insurance contracts, under which the contract holder is entitled to share in the earnings of such contracts via receipt of dividends. The dividend scale for participating policies is reviewed annually and may be adjusted to reflect recent experience and future expectations. As of December 31, 2014 and 2013, participating policies comprised approximately 4% of the face amount of insurance in force, and dividend expenses were $21 million, $18 million and $21 million for the years ended December 31, 2014, 2013 and 2012, respectively.
Liabilities for the secondary guarantees on UL-type products are calculated by multiplying the benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes in a manner similar to the unlocking of DAC, VOBA, DFEL and DSI. The accounting for secondary guarantee benefits impacts, and is impacted by, EGPs used to calculate amortization of DAC, VOBA, DFEL and DSI.
Certain of our variable annuity contracts reported within future contract benefits contain GLB reserves embedded derivatives, a portion of which may be reported in either other assets or other liabilities, and include guaranteed interest and similar contracts, that are carried at fair value on our Balance Sheets, which represents approximate exit price including an estimate for our NPR. Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We classify these GLB reserves embedded derivatives items in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” We report the insurance portion of the reserves in future contract benefits.
The fair value of our indexed annuity contracts is based on their approximate surrender values.
Contingencies and Commitments
Contingencies arising from environmental remediation costs, regulatory judgments, claims, assessments, guarantees, litigation, recourse reserves, fines, penalties and other sources are recorded when deemed probable and reasonably estimable.
12
Fee Income
Fee income for investment and interest-sensitive life insurance contracts consist of asset-based fees, cost of insurance charges, percent of premium charges, contract administration charges and surrender charges that are assessed against contract holder account balances. Investment products consist primarily of individual and group variable and fixed deferred annuities. Interest-sensitive life insurance products include UL, VUL and other interest-sensitive life insurance policies. These products include life insurance sold to individuals, corporate-owned life insurance and bank-owned life insurance.
In bifurcating the embedded derivative of our GLB features on our variable annuity products, we attribute to the embedded derivative the portion of total fees collected from the contract holder that relate to the GLB riders (the “attributed fees”), which are not reported within fee income on our Statements of Comprehensive Income (Loss). These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract plus a margin that a theoretical market participant would include for risk/profit and are reported within realized gain (loss) on our Statements of Comprehensive Income (Loss).
The timing of revenue recognition as it relates to fees assessed on investment contracts is determined based on the nature of such fees. Asset-based fees, cost of insurance and contract administration charges are assessed on a daily or monthly basis and recognized as revenue when assessed and earned. Percent of premium charges are assessed at the time of premium payment and recognized as revenue when assessed and earned. Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are recognized upon surrender of a contract by the contract holder in accordance with contractual terms.
For investment and interest-sensitive life insurance contracts, the amounts collected from contract holders are considered deposits and are not included in revenue.
Insurance Premiums
Our insurance premiums for traditional life insurance and group insurance products are recognized as revenue when due from the contract holder. Our traditional life insurance products include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance, limited-payment life insurance, term life insurance and certain annuities with life contingencies. Our group non-medical insurance products consist primarily of term life, disability and dental.
Net Investment Income
Dividends and interest income, recorded in net investment income, are recognized when earned. Amortization of premiums and accretion of discounts on investments in debt securities are reflected in net investment income over the contractual terms of the investments in a manner that produces a constant effective yield.
For CLOs and MBS, included in the AFS fixed maturity securities portfolios, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and a catch up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Any adjustments resulting from changes in effective yield are reflected in net investment income on our Statements of Comprehensive Income (Loss).
Realized Gain (Loss)
Realized gain (loss) on our Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for OTTIs of investments, certain derivative and embedded derivative gains and losses and net gains and losses on reinsurance embedded derivatives. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation.
Other Revenues
Other revenues consists primarily of proceeds from reinsurance recaptures.
13
Interest Credited
Interest credited includes interest credited to contract holder account balances. Interest crediting rates associated with funds invested in our general account during 2012 through 2014 ranged from 1% to 7%.
Benefits
Benefits for UL and other interest-sensitive life insurance products include benefit claims incurred during the period in excess of contract account balances. Benefits also include the change in reserves for life insurance products with secondary guarantee benefits, annuity products with guaranteed death and living benefits and certain annuities with life contingencies. For traditional life, group health and disability income products, benefits are recognized when incurred in a manner consistent with the related premium recognition policies.
Pension and Other Postretirement Benefit Plans
Our employees participate in the pension and post-retirement benefit plans that are sponsored by LNC and LNL. Pursuant to the accounting rules for our obligations to employees and agents under our various pension and other postretirement benefit plans, we are required to make a number of assumptions to estimate related liabilities and expenses. The mortality assumption is based on actual and anticipated plan experience, determined using acceptable actuarial methods. We use assumptions for the weighted-average discount rate and expected return on plan assets to estimate pension expense. The discount rate assumptions are determined using an analysis of current market information and the projected benefit flows associated with these plans. The expected long-term rate of return on plan assets is based on historical and projected future rates of return on the funds invested in the plan. The calculation of our accumulated postretirement benefit obligation also uses an assumption of weighted-average annual rate of increase in the per capita cost of covered benefits, which reflects a health care cost trend rate.
Stock-Based Compensation
In general, we expense the fair value of stock awards included in our incentive compensation plans. As of the date LNC’s Board of Directors approves our stock awards, the fair value of stock options is determined using a Black-Scholes options valuation methodology, and the fair value of other stock awards is based upon the market value of the stock. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to common stock in stockholder’s equity. We classify certain stock awards as liabilities. For these awards, the settlement value is classified as a liability on our Balance Sheets, and the liability is marked-to-market through net income at the end of each reporting period. Stock-based compensation expense is reflected in commissions and other expenses on our Statements of Comprehensive Income (Loss).
Income Taxes
We file a U.S. consolidated income tax return with LNC and its subsidiaries. Pursuant to an inter-company tax sharing agreement with LNC, we provide for income taxes on a separate return filing basis. The tax sharing agreement also provides that we will receive benefit for net operating losses, capital losses and tax credits that are not usable on a separate return basis to the extent such items may be utilized in the consolidated income tax returns of LNC. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required.
14
2. New Accounting Standards
Adoption of New Accounting Standards
The following table provides a description of our adoption of new Accounting Standard Updates (“ASUs”) issued by the FASB and the impact of the adoption on our financial statements:
|
Standard |
Description |
Date of Adoption |
Effect on Financial Statements or Other Significant Matters |
|
ASU 2011-06, Fees Paid to the Federal Government by Health Insurer |
This standard addresses the recognition and classification of fees mandated by the Patient Protection and Affordable Care Act. The annual fee is imposed on health insurers for each calendar year beginning on or after January 1, 2014, and is payable no later than September 30 of the applicable year. If a fee payment is required, the insurer is required to record the liability in full with a corresponding deferred cost that is amortized to expense using a straight-line method of allocation over the applicable year. The ASU indicates that the annual fee does not meet the definition of an acquisition cost. |
The amendments in this ASU did not have a material effect on our financial condition and results of operations. |
|
|
ASU 2013-08, Amendments to the Scope, Measurement, and Disclosure Requirements (Topic 946, Investment Companies) |
This standard provides comprehensive accounting guidance for assessing whether an entity is an investment company through the use of a new two-tiered approach; considering the entity’s purpose and design to determine whether the entity is an investment company. Upon adoption, all entities must be re-evaluated against the new investment company criteria to determine if investment company classification is permitted. |
The adoption of this ASU did not have an effect on our financial condition and results of operations. |
|
|
ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists |
This standard requires an entity to present unrecognized tax benefits as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The standard defines specific exceptions when the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. |
The adoption of this ASU did not have an effect on the deferred tax asset or liability classification on our balance sheet and did not result in any additional disclosures to our financial statements. |
|
|
ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity |
This standard changes the requirements for reporting discontinued operations. The disposal of a component of an entity must be reported as a discontinued operation if the disposal represents a strategic shift that has a major effect on an entity’s operations and financial results. The amendments also require entities to provide new disclosures about a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation. Early adoption is permitted, but only for disposals that have not been reported in financial statements previously issued or available for issuance. |
Early adopted as of October 1, 2014 |
The adoption of this ASU did not have an effect on our financial condition and results of operations. |
15
Future Adoption of New Accounting Standards
The following table provides a description of future adoptions of new accounting standards that may have an impact on our financial statements when adopted:
|
|
|
|
|
|
Standard |
Description |
Projected Date of Adoption |
Effect on Financial Statements or Other Significant Matters |
|
ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects |
Under current GAAP, the use of the effective yield method for investments in qualified affordable housing projects is limited, and may result in certain investments being accounted for under a method of accounting that may not fairly represent the economics of the investment. This standard permits an entity to make an accounting policy election to use the proportional amortization method of accounting if certain conditions are met. The amendments are to be applied retrospectively for interim and annual reporting periods. |
We are currently evaluating the impact of adopting this standard, and do not expect the adoption to have a material effect on our financial condition and results of operations. |
|
|
ASU 2014-09, Revenue from Contracts with Customers |
This standard establishes the core principle of recognizing revenue to depict the transfer of promised goods and services. The amendments define a five-step process that systematically identifies the various components of the revenue recognition process, culminating with the recognition of revenue upon satisfaction of an entity’s performance obligation. Retrospective application is required, and early adoption is not permitted. |
We will adopt the accounting guidance in this standard for non-insurance related products and services, and are currently evaluating the impact of adoption on our financial condition and results of operations. |
|
|
ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings and |
This standard eliminates a distinction in current GAAP related to certain repurchase agreements, and amends current GAAP to require repurchase-to-maturity transactions and linked repurchase financings to be accounted for as secured borrowings; consistent with the accounting for other repurchase agreements. The standard also includes new disclosure requirements related to transfers accounted for as sales that are economically similar to repurchase agreements. The new disclosures are not required for comparative periods before the effective date. |
We are currently evaluating the impact of adopting this standard on our financial condition and results of operations and will provide the required disclosures, as necessary, in our 2015 financial statements. |
|
|
ASU 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity |
This standard clarifies that when considering the nature of the host contract in a hybrid financial instrument issued in the form of a share; an entity must consider all of the stated and implied substantive terms of the hybrid instrument, including the embedded derivative feature that is being considered for separate accounting from the host contract. Early adoption of this standard is permitted and application is under a modified retrospective basis to existing hybrid financial instruments that are within the scope of the standard. |
We are currently evaluating the impact of adopting this standard on our financial condition and results of operations. |
|
|
ASU 2015-02, Amendments to the Consolidation Analysis |
This standard is intended to improve consolidation accounting guidance related to limited partnerships (“LPs”), limited liability corporations, and securitization structures. The new standard includes changes to existing consolidation models that will eliminate the presumption that a general partner should consolidate an LP, clarify when fees paid to a decision maker should be a factor in the variable interest entities (“VIE”) consolidation evaluation and reduce the VIE consolidation models from two to one by eliminating the indefinite deferral for certain investment funds. Early adoption is permitted including adoption in an interim period. |
We are currently evaluating the impact of adopting this standard on our financial condition and results of operations. |
16
3. Investments
AFS Securities
Pursuant to the Fair Value Measurements and Disclosures Topic of the FASB ASC, we have categorized AFS securities into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3), as described in Note 1, which also includes additional disclosures regarding our fair value measurements.
The amortized cost, gross unrealized gains, losses and OTTI and fair value of AFS securities (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014 |
|
|||||||||||||
|
|
Amortized |
|
Gross Unrealized |
|
Fair |
|
|||||||||
|
|
Cost |
|
Gains |
|
Losses |
|
OTTI |
|
Value |
|
|||||
|
Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
5,926 |
|
$ |
654 |
|
$ |
50 |
|
$ |
- |
|
$ |
6,530 |
|
|
ABS |
|
155 |
|
|
10 |
|
|
5 |
|
|
7 |
|
|
153 |
|
|
U.S. government bonds |
|
28 |
|
|
5 |
|
|
- |
|
|
- |
|
|
33 |
|
|
Foreign government bonds |
|
40 |
|
|
6 |
|
|
- |
|
|
- |
|
|
46 |
|
|
RMBS |
|
374 |
|
|
35 |
|
|
- |
|
|
1 |
|
|
408 |
|
|
CMBS |
|
39 |
|
|
2 |
|
|
- |
|
|
1 |
|
|
40 |
|
|
CLOs |
|
11 |
|
|
- |
|
|
- |
|
|
- |
|
|
11 |
|
|
State and municipal bonds |
|
288 |
|
|
59 |
|
|
1 |
|
|
- |
|
|
346 |
|
|
Hybrid and redeemable preferred securities |
|
86 |
|
|
14 |
|
|
2 |
|
|
- |
|
|
98 |
|
|
Total fixed maturity AFS securities |
$ |
6,947 |
|
$ |
785 |
|
$ |
58 |
|
$ |
9 |
|
$ |
7,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013 |
|
|||||||||||||
|
|
Amortized |
|
Gross Unrealized |
|
Fair |
|
|||||||||
|
|
Cost |
|
Gains |
|
Losses |
|
OTTI |
|
Value |
|
|||||
|
Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
5,732 |
|
$ |
435 |
|
$ |
101 |
|
$ |
- |
|
$ |
6,066 |
|
|
ABS |
|
188 |
|
|
8 |
|
|
13 |
|
|
10 |
|
|
173 |
|
|
U.S. government bonds |
|
28 |
|
|
4 |
|
|
- |
|
|
- |
|
|
32 |
|
|
Foreign government bonds |
|
41 |
|
|
4 |
|
|
- |
|
|
- |
|
|
45 |
|
|
RMBS |
|
455 |
|
|
33 |
|
|
- |
|
|
4 |
|
|
484 |
|
|
CMBS |
|
49 |
|
|
2 |
|
|
1 |
|
|
1 |
|
|
49 |
|
|
CLOs |
|
18 |
|
|
- |
|
|
- |
|
|
- |
|
|
18 |
|
|
State and municipal bonds |
|
282 |
|
|
18 |
|
|
2 |
|
|
- |
|
|
298 |
|
|
Hybrid and redeemable preferred securities |
|
87 |
|
|
10 |
|
|
3 |
|
|
- |
|
|
94 |
|
|
Total fixed maturity securities |
$ |
6,880 |
|
$ |
514 |
|
$ |
120 |
|
|
15 |
|
$ |
7,259 |
|
The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2014, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized |
|
Fair |
|
||
|
|
Cost |
|
Value |
|
||
|
Due in one year or less |
$ |
163 |
|
$ |
166 |
|
|
Due after one year through five years |
|
1,672 |
|
|
1,845 |
|
|
Due after five years through ten years |
|
1,456 |
|
|
1,516 |
|
|
Due after ten years |
|
3,232 |
|
|
3,679 |
|
|
Subtotal |
|
6,523 |
|
|
7,206 |
|
|
MBS |
|
413 |
|
|
448 |
|
|
CLOs |
|
11 |
|
|
11 |
|
|
Total fixed maturity AFS securities |
$ |
6,947 |
|
$ |
7,665 |
|
Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations.
17
The fair value and gross unrealized losses, including the portion of OTTI recognized in OCI, of AFS securities (dollars in millions), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014 |
|
|||||||||||||||||
|
|
Less Than or Equal |
|
Greater Than |
|
|
|
|
|
|
|
|
||||||||
|
|
to Twelve Months |
|
Twelve Months |
|
Total |
|
|||||||||||||
|
|
|
|
Gross |
|
|
|
Gross |
|
|
|
|
|
Gross |
|
|||||
|
|
|
Unrealized |
|
Unrealized |
|
|
|
Unrealized |
|||||||||||
|
|
Fair |
Losses and |
Fair |
Losses and |
Fair |
|
Losses and |
||||||||||||
|
|
Value |
|
OTTI |
|
Value |
|
OTTI |
|
Value |
|
|
OTTI |
|
||||||
|
Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
322 |
|
$ |
21 |
|
$ |
322 |
|
$ |
29 |
|
$ |
644 |
|
|
$ |
50 |
|
|
ABS |
|
5 |
|
|
- |
|
|
76 |
|
|
12 |
|
|
81 |
|
|
|
12 |
|
|
RMBS |
|
9 |
|
|
- |
|
|
11 |
|
|
1 |
|
|
20 |
|
|
|
1 |
|
|
CMBS |
|
7 |
|
|
- |
|
|
1 |
|
|
1 |
|
|
8 |
|
|
|
1 |
|
|
State and municipal bonds |
|
- |
|
|
- |
|
|
4 |
|
|
1 |
|
|
4 |
|
|
|
1 |
|
|
Hybrid and redeemable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
preferred securities |
|
- |
|
|
- |
|
|
14 |
|
|
2 |
|
|
14 |
|
|
|
2 |
|
|
Total fixed maturity AFS securities |
$ |
343 |
|
$ |
21 |
|
$ |
428 |
|
$ |
46 |
|
$ |
771 |
|
|
$ |
67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total number of AFS securities in an unrealized loss position |
|
|
|
|
|
|
|
|
|
|
|
|
190 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013 |
|
|||||||||||||||||
|
|
Less Than or Equal |
|
Greater Than |
|
|
|
|
|
|
|
|
||||||||
|
|
to Twelve Months |
|
Twelve Months |
|
Total |
|
|||||||||||||
|
|
|
|
Gross |
|
|
|
Gross |
|
|
|
|
|
Gross |
|
|||||
|
|
|
Unrealized |
|
Unrealized |
|
|
|
Unrealized |
|||||||||||
|
|
Fair |
Losses and |
Fair |
Losses and |
Fair |
|
Losses and |
||||||||||||
|
|
Value |
|
OTTI |
|
Value |
|
OTTI |
|
Value |
|
|
OTTI |
|
||||||
|
Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
1,315 |
|
$ |
84 |
|
$ |
107 |
|
$ |
17 |
|
$ |
1,422 |
|
|
$ |
101 |
|
|
ABS |
|
17 |
|
|
1 |
|
|
85 |
|
|
22 |
|
|
102 |
|
|
|
23 |
|
|
Foreign government bonds |
|
2 |
|
|
- |
|
|
- |
|
|
- |
|
|
2 |
|
|
|
- |
|
|
RMBS |
|
59 |
|
|
1 |
|
|
24 |
|
|
3 |
|
|
83 |
|
|
|
4 |
|
|
CMBS |
|
8 |
|
|
1 |
|
|
3 |
|
|
1 |
|
|
11 |
|
|
|
2 |
|
|
CLOs |
|
18 |
|
|
- |
|
|
- |
|
|
- |
|
|
18 |
|
|
|
- |
|
|
State and municipal bonds |
|
39 |
|
|
1 |
|
|
5 |
|
|
1 |
|
|
44 |
|
|
|
2 |
|
|
Hybrid and redeemable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
preferred securities |
|
10 |
|
|
- |
|
|
13 |
|
|
3 |
|
|
23 |
|
|
|
3 |
|
|
Total fixed maturity AFS securities |
$ |
1,468 |
|
$ |
88 |
|
$ |
237 |
|
$ |
47 |
|
$ |
1,705 |
|
|
$ |
135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total number of AFS securities in an unrealized loss position |
|
|
|
|
|
|
|
|
|
|
|
|
380 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
The fair value, gross unrealized losses, the portion of OTTI recognized in OCI (in millions) and number of AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Number |
|
|
|
|
Fair |
|
Gross Unrealized |
|
|
of |
|
||||||
|
|
Value |
|
Losses |
|
OTTI |
|
Securities (1) |
||||||
|
Less than six months |
$ |
11 |
|
$ |
3 |
|
$ |
- |
|
|
|
2 |
|
|
Six months or greater, but less than nine months |
|
3 |
|
|
2 |
|
|
- |
|
|
|
1 |
|
|
Twelve months or greater |
|
61 |
|
|
21 |
|
|
6 |
|
|
|
19 |
|
|
Total |
$ |
75 |
|
$ |
26 |
|
$ |
6 |
|
|
|
22 |
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Number |
|
|
|
|
Fair |
|
Gross Unrealized |
|
|
of |
|
||||||
|
|
Value |
|
Losses |
|
OTTI |
|
Securities (1) |
||||||
|
Less than six months |
$ |
1 |
|
$ |
- |
|
$ |
- |
|
|
|
1 |
|
|
Twelve months or greater |
|
71 |
|
|
22 |
|
|
9 |
|
|
|
30 |
|
|
Total |
$ |
72 |
|
$ |
22 |
|
$ |
9 |
|
|
|
31 |
|
|
(1) |
We may reflect a security in more than one aging category based on various purchase dates. |
We regularly review our investment holdings for OTTI. Our gross unrealized losses, including the portion of OTTI recognized in OCI, on AFS securities decreased $68 million for the year ended December 31, 2014. As discussed further below, we believe the unrealized loss position as of December 31, 2014, did not represent OTTI as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; (iii) the estimated future cash flows were equal to or greater than the amortized cost basis of the debt securities; and (iv) we had the ability and intent to hold equity AFS securities for a period of time sufficient for recovery.
Based upon this evaluation as of December 31, 2014, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums and fees and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our temporarily-impaired securities.
As of December 31, 2014, the unrealized losses associated with our corporate bond securities were attributable primarily to widening credit spreads and rising interest rates since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost for each security.
As of December 31, 2014, the unrealized losses associated with our MBS and ABS were attributable primarily to collateral losses and credit spreads. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts, sector credit ratings and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost basis of each temporarily impaired security.
As of December 31, 2014, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each security.
Changes in the amount of credit loss of OTTI recognized in net income (loss) where the portion related to other factors was recognized in OCI (in millions) on fixed maturity AFS securities were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Balance as of beginning-of-year |
$ |
47 |
|
$ |
53 |
|
$ |
61 |
|
|
Increases attributable to: |
|
|
|
|
|
|
|
|
|
|
Credit losses on securities for which an OTTI was not previously recognized |
|
1 |
|
|
5 |
|
|
9 |
|
|
Credit losses on securities for which an OTTI was previously recognized |
|
3 |
|
|
4 |
|
|
5 |
|
|
Decreases attributable to: |
|
|
|
|
|
|
|
|
|
|
Securities sold, paid down or matured |
|
(8 |
) |
|
(15 |
) |
|
(22 |
) |
|
Balance as of end-of-year |
$ |
43 |
|
$ |
47 |
|
$ |
53 |
|
During 2014, 2013 and 2012, we recorded credit losses on securities for which an OTTI was not previously recognized as we determined the cash flows expected to be collected would not be sufficient to recover the entire amortized cost basis of the debt security. The credit losses we recorded on securities for which an OTTI was not previously recognized were attributable primarily to one or a combination of the following reasons:
|
· |
Failure of the issuer of the security to make scheduled payments; |
|
· |
Deterioration of creditworthiness of the issuer; |
|
· |
Deterioration of conditions specifically related to the security; |
19
|
· |
Deterioration of fundamentals of the industry in which the issuer operates; and |
|
· |
Deterioration of the rating of the security by a rating agency. |
We recognize the OTTI attributed to the noncredit portion as a separate component in OCI referred to as unrealized OTTI on AFS securities.
Mortgage Loans on Real Estate
Mortgage loans on real estate principally involve commercial real estate. The commercial loans are geographically diversified throughout the U.S. with the largest concentrations in New York, which accounted for 75% and 71% of mortgage loans on real estate as of December 31, 2014 and 2013, respectively.
The following provides the current and past due composition of our mortgage loans on real estate (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
||||
|
|
|
2013 |
|
|||
|
Current |
$ |
551 |
|
$ |
521 |
|
|
Unamortized premium (discount) |
|
- |
|
|
- |
|
|
Total carrying value |
$ |
551 |
|
$ |
521 |
|
|
|
|
|
|
|
|
|
|
|
There were no impaired mortgage loans on real estate as of December 31, 2014 and 2013.
As described in Note 1, we use the loan-to-value and debt-service coverage ratios as credit quality indicators for our mortgage loans, which were as follows (dollars in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014 |
|
As of December 31, 2013 |
|
||||||||||
|
|
|
|
|
|
|
Debt- |
|
|
|
|
|
|
Debt- |
|
|
|
|
|
|
|
|
Service |
|
|
|
|
|
|
Service |
|
|
|
Carrying |
|
% of |
|
Coverage |
|
Carrying |
|
% of |
|
Coverage |
|
||
|
|
Value |
|
Total |
|
Ratio |
|
Value |
|
Total |
|
Ratio |
|
||
|
Less than 65% |
$ |
533 |
|
96.7% |
|
2.40 |
|
$ |
498 |
|
95.6% |
|
2.15 |
|
|
65% to 74% |
|
13 |
|
2.4% |
|
1.65 |
|
|
13 |
|
2.5% |
|
1.59 |
|
|
75% to 100% |
|
5 |
|
0.9% |
|
0.63 |
|
|
10 |
|
1.9% |
|
0.61 |
|
|
Total mortgage loans on real estate |
$ |
551 |
|
100.0% |
|
|
|
$ |
521 |
|
100.0% |
|
|
|
Net Investment Income
The major categories of net investment income (in millions) on our Statements of Comprehensive Income (Loss) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Fixed maturity AFS securities |
$ |
374 |
|
$ |
377 |
|
$ |
381 |
|
|
Mortgage loans on real estate |
|
25 |
|
|
22 |
|
|
18 |
|
|
Policy loans |
|
21 |
|
|
21 |
|
|
24 |
|
|
Commercial mortgage loan prepayment and bond make-whole premiums |
|
8 |
|
|
6 |
|
|
5 |
|
|
Investment income |
|
428 |
|
|
426 |
|
|
428 |
|
|
Investment expense |
|
(7 |
) |
|
(7 |
) |
|
(7 |
) |
|
Net investment income |
$ |
421 |
|
$ |
419 |
|
$ |
421 |
|
20
Realized Gain (Loss) Related to Certain Investments
The detail of the realized gain (loss) related to certain investments (in millions) was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
Gross gains |
$ |
4 |
|
$ |
1 |
|
$ |
1 |
|
|
Gross losses |
|
(5 |
) |
|
(10 |
) |
|
(17 |
) |
|
Associated amortization of DAC, VOBA, DSI and DFEL |
|
|
|
|
|
|
|
|
|
|
and changes in other contract holder funds |
|
(3 |
) |
|
(2 |
) |
|
- |
|
|
Total realized gain (loss) related to certain investments |
$ |
(4 |
) |
$ |
(11 |
) |
$ |
(16 |
) |
Details underlying write-downs taken as a result of OTTI (in millions) that were recognized in net income (loss) and included in realized gain (loss) on AFS securities above, and the portion of OTTI recognized in OCI (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
OTTI Recognized in Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities: |
|
|
|
|
|
|
|
|
|
|
ABS |
$ |
(3 |
) |
$ |
(3 |
) |
$ |
(6 |
) |
|
RMBS |
|
(1 |
) |
|
(4 |
) |
|
(3 |
) |
|
CMBS |
|
- |
|
|
(2 |
) |
|
(5 |
) |
|
Gross OTTI recognized in net income (loss) |
|
(4 |
) |
|
(9 |
) |
|
(14 |
) |
|
Associated amortization of DAC, VOBA, DSI, and DFEL |
|
1 |
|
|
1 |
|
|
2 |
|
|
Net OTTI recognized in net income (loss), pre-tax |
$ |
(3 |
) |
$ |
(8 |
) |
$ |
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Portion of OTTI Recognized in OCI |
|
|
|
|
|
|
|
|
|
|
Gross OTTI recognized in OCI |
$ |
2 |
|
$ |
2 |
|
$ |
11 |
|
|
Change in DAC, VOBA, DSI and DFEL |
|
- |
|
|
- |
|
|
(1 |
) |
|
Net portion of OTTI recognized in OCI, pre-tax |
$ |
2 |
|
$ |
2 |
|
$ |
10 |
|
Determination of Credit Losses on ABS
As of December 31, 2014 and 2013, we reviewed our ABS portfolios for potential shortfall in contractual principal and interest based on numerous subjective and objective inputs. The factors used to determine the amount of credit loss for each individual security, include, but are not limited to, near term risk, substantial discrepancy between book and market value, sector or company-specific volatility, negative operating trends and trading levels wider than peers.
Determination of Credit Losses on MBS
As of December 31, 2014 and 2013, default rates were projected by considering underlying MBS loan performance and collateral type. Projected default rates on existing delinquencies vary between 10% to 100% depending on loan type and severity of delinquency status. In addition, we estimate the potential contributions of currently performing loans that may become delinquent in the future based on the change in delinquencies and loan liquidations experienced in the recent history. Finally, we develop a default rate timing curve by aggregating the defaults for all loans in the pool (delinquent loans, foreclosure and real estate owned and new delinquencies from currently performing loans) and the associated loan-level loss severities.
We use certain available loan characteristics such as lien status, loan sizes and occupancy to estimate the loss severity of loans. Second lien loans are assigned 100% severity, if defaulted. For first lien loans, we assume a minimum of 30% severity with higher severity assumed for investor properties and further adjusted by housing price assumptions. With the default rate timing curve and loan-level severity, we derive the future expected credit losses.
Investment Commitments
As of December 31, 2014, our investment commitments were $18 million, which included $11 million of private placement securities and $7 million of mortgage loans on real estate.
21
Concentrations of Financial Instruments
As of December 31, 2014 and 2013, our most significant investments in one issuer were our investments in securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $248 million and $284 million, respectively, or 3% and 4% of our invested assets portfolio, respectively, and our investments in securities issued by Fannie Mae with a fair value of $118 million and $136 million, respectively, or 1% and 2%, respectively, of our invested assets portfolio. These investments are included in corporate bonds in the tables above.
As of December 31, 2014 and 2013, our most significant investments in one industry were our investment securities in the utilities industry with a fair value of $1.2 billion and $1.0 billion, respectively, or 14% and 12% of our invested assets portfolio, respectively, and our investment securities in the consumer non-cyclical industry with a fair value of $1.1 billion and $1.0 billion, respectively, or 13% and 12% of our invested assets portfolio, respectively.
Assets on Deposit
The Company had investment assets on deposit with regulatory agencies with a fair market value of $13 million as of December 31, 2014 and 2013.
4. Derivative Instruments
Embedded Derivatives
We have embedded derivatives that include:
GLB Reserves Embedded Derivatives
We transfer the liability for our GWB and GIB features to LNL, who uses a hedging strategy designed to mitigate the risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with these features. The hedging strategy is designed such that changes in the value of the hedge contracts due to changes in equity markets, interest rates and implied volatilities move in the opposite direction of the changes in embedded derivative GLB reserves caused by those same factors. The hedge positions are re-balanced based upon changes in these factors as needed. While the hedge positions are actively managed, these hedge positions may not be totally effective in offsetting changes in the embedded derivative reserve due to, among other things, differences in timing between when a market exposure changes and corresponding changes to the hedge positions, extreme swings in the equity markets and interest rates, market volatility, contract holder behavior, divergence between the performance of the underlying funds and the hedging indices, divergence between the actual and expected performance of the hedge instruments and the ability to purchase hedging instruments at prices consistent with the desired risk and return trade-off.
Certain features of these guarantees have elements of both insurance benefits accounted for under the Financial Services – Insurance – Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB ASC (“benefit reserves”) and embedded derivatives accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative reserves”). We calculate the value of the embedded derivative reserve and the benefit reserve based on the specific characteristics of each GLB feature.
Reinsurance Related Embedded Derivatives
We have certain Modco arrangements and coinsurance with funds withheld reinsurance arrangements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance arrangements.
Indexed Annuity Contracts Embedded Derivatives
We use indexed annuity contracts that permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500 Index®. Contract holders may elect to rebalance index options at renewal dates, either annually or biannually. As of each renewal date, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees.
22
Embedded derivative instruments with off-balance-sheet risks (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014 |
|
As of December 31, 2013 |
|
||||||||||||||
|
|
Notional |
|
Fair Value |
|
Notional |
|
Fair Value |
|
||||||||||
|
|
Amounts |
|
Asset |
|
Liability |
|
Amounts |
|
Asset |
|
Liability |
|
||||||
|
GLB reserves (1) |
$ |
- |
|
$ |
34 |
|
$ |
- |
|
$ |
- |
|
$ |
36 |
|
$ |
- |
|
|
GLB reserves (2) |
|
- |
|
|
- |
|
|
34 |
|
|
- |
|
|
- |
|
|
36 |
|
|
Reinsurance related (3) |
|
- |
|
|
11 |
|
|
- |
|
|
- |
|
|
8 |
|
|
- |
|
|
Indexed annuity contracts (4) |
|
- |
|
|
- |
|
|
2 |
|
|
- |
|
|
- |
|
|
- |
|
|
Total embedded derivative instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments |
$ |
- |
|
$ |
45 |
|
$ |
36 |
|
$ |
- |
|
$ |
44 |
|
$ |
36 |
|
|
(1) |
Reported in other assets on our Balance Sheets. |
|
(2) |
Reported in other liabilities on our Balance Sheets. |
|
(3) |
Reported in reinsurance related embedded derivatives on our Balance Sheets. |
|
(4) |
Reported in future contract benefits on our Balance Sheets. |
The gains (losses) on embedded derivative instruments (in millions) recorded within income (loss) from continuing operations on our Statements of Comprehensive Income (Loss) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Other assets - GLB reserves (1) |
$ |
70 |
|
$ |
(88 |
) |
$ |
- |
|
|
Other liabilities - GLB reserves (1) |
|
(70 |
) |
|
88 |
|
|
50 |
|
|
Reinsurance related (1) |
|
- |
|
|
1 |
|
|
- |
|
|
Total embedded derivative instruments |
$ |
- |
|
$ |
1 |
|
$ |
50 |
|
|
(1) |
Reported in realized gain (loss) on our Statements of Comprehensive Income (Loss). |
Balance Sheet Offsetting
There is no offsetting on our Balance Sheets associated with our embedded derivative instruments.
5. Federal Income Taxes
The federal income tax expense (benefit) on continuing operations (in millions) was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Current |
$ |
65 |
|
$ |
38 |
|
$ |
11 |
|
|
Deferred |
|
4 |
|
|
(1 |
) |
|
48 |
|
|
Federal income tax expense (benefit) |
$ |
69 |
|
$ |
37 |
|
$ |
59 |
|
A reconciliation of the effective tax rate differences (in millions) was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Tax rate times pre-tax income |
$ |
76 |
|
$ |
45 |
|
$ |
54 |
|
|
Effect of: |
|
|
|
|
|
|
|
|
|
|
Separate account dividend |
|
|
|
|
|
|
|
|
|
|
received deduction |
|
(6 |
) |
|
(6 |
) |
|
(5 |
) |
|
Tax credits |
|
- |
|
|
(1 |
) |
|
(1 |
) |
|
Goodwill |
|
- |
|
|
- |
|
|
- |
|
|
Change in uncertain tax positions |
|
(1 |
) |
|
- |
|
|
(4 |
) |
|
Other items |
|
- |
|
|
(1 |
) |
|
15 |
|
|
Federal income tax expense (benefit) |
$ |
69 |
|
$ |
37 |
|
$ |
59 |
|
|
Effective tax rate |
|
32% |
|
|
29% |
|
|
38% |
|
23
The effective tax rate is the ratio of tax expense over pre-tax income (loss). The benefit for tax credits in 2013 and 2012 is attributable to foreign tax credits.
The federal income tax asset (liability) (in millions) was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
||||
|
|
|
2013 |
|
|||
|
Current |
$ |
(61 |
) |
$ |
(48 |
) |
|
Deferred |
|
(391 |
) |
|
(314 |
) |
|
Total federal income tax asset (liability) |
$ |
(452 |
) |
$ |
(362 |
) |
Significant components of our deferred tax assets and liabilities (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
||||
|
|
|
2013 |
|
|||
|
Deferred Tax Assets |
|
|
|
|
|
|
|
Future contract benefits and other contract holder funds |
$ |
8 |
|
$ |
27 |
|
|
Other |
|
1 |
|
|
2 |
|
|
Total deferred tax assets |
|
9 |
|
|
29 |
|
|
Deferred Tax Liabilities |
|
|
|
|
|
|
|
DAC |
|
97 |
|
|
123 |
|
|
VOBA |
|
31 |
|
|
67 |
|
|
Net unrealized gain on AFS securities |
|
253 |
|
|
134 |
|
|
Investments |
|
4 |
|
|
2 |
|
|
Other |
|
15 |
|
|
17 |
|
|
Total deferred tax liabilities |
|
400 |
|
|
343 |
|
|
Net deferred tax asset (liability) |
$ |
(391 |
) |
$ |
(314 |
) |
Although realization is not assured, management believes that it is more likely than not that the Company will realize the benefits of its deferred tax assets, and, accordingly, no valuation allowance has been recorded.
As of December 31, 2014 and 2013, zero and $1 million, respectively, of our unrecognized tax benefits presented below, if recognized, would have affected our income tax expense and our effective tax rate. The Company is not aware of any events for which it is likely that unrecognized tax benefits will significantly increase or decrease within the next year. A reconciliation of the unrecognized tax benefits (in millions) was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
||||
|
|
|
|||||
|
|
|
2013 |
|
|||
|
Balance as of beginning-of-year |
$ |
8 |
|
$ |
8 |
|
|
Increases for prior year tax positions |
|
1 |
|
|
- |
|
|
Decreases for prior year tax positions |
|
(1 |
) |
|
- |
|
|
Decreases for settlements with taxing authorities |
|
(8 |
) |
|
- |
|
|
Balance as of end-of-year |
$ |
- |
|
$ |
8 |
|
We recognize interest and penalties accrued, if any, related to unrecognized tax benefits as a component of tax expense. For the years ended December 31, 2014, 2013 and 2012, we recognized interest and penalty expense (benefit) related to uncertain tax positions of $(2) million, zero and $(3) million, respectively. We had accrued interest and penalty expense related to the unrecognized tax benefits of zero and $2 million as of December 31, 2014 and 2013, respectively.
The Company is subject to examination by U.S. federal, state, local and non-U.S. income authorities. The Company is currently under examination by the Internal Revenue Service (“IRS”) for tax years 2009 through 2011. The IRS concluded its examination of tax years 2007 and 2008 on January 18, 2013. The Company has protested the final assessment, which is being combined with tax years 2005 and 2006 in IRS Appeals.
24
6. DAC, VOBA, DSI and DFEL
Changes in DAC (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Balance as of beginning-of-year |
$ |
393 |
|
$ |
304 |
|
$ |
321 |
|
|
Deferrals |
|
72 |
|
|
80 |
|
|
68 |
|
|
Amortization, net of interest: |
|
|
|
|
|
|
|
|
|
|
Amortization, excluding unlocking, net of interest |
|
(51 |
) |
|
(45 |
) |
|
(42 |
) |
|
Unlocking |
|
5 |
|
|
4 |
|
|
(7 |
) |
|
Adjustment related to realized (gains) losses |
|
(4 |
) |
|
(3 |
) |
|
(3 |
) |
|
Adjustment related to unrealized (gains) losses |
|
(38 |
) |
|
53 |
|
|
(33 |
) |
|
Balance as of end-of-year |
$ |
377 |
|
$ |
393 |
|
$ |
304 |
|
Changes in VOBA (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Balance as of beginning-of-year |
$ |
193 |
|
$ |
148 |
|
$ |
200 |
|
|
Deferrals |
|
1 |
|
|
1 |
|
|
- |
|
|
Amortization: |
|
|
|
|
|
|
|
|
|
|
Amortization, excluding unlocking |
|
(50 |
) |
|
(31 |
) |
|
(41 |
) |
|
Unlocking |
|
(1 |
) |
|
(36 |
) |
|
(6 |
) |
|
Accretion of interest (1) |
|
13 |
|
|
15 |
|
|
17 |
|
|
Adjustment related to unrealized (gains) losses |
|
(67 |
) |
|
96 |
|
|
(22 |
) |
|
Balance as of end-of-year |
$ |
89 |
|
$ |
193 |
|
$ |
148 |
|
|
(1) |
The interest accrual rates utilized to calculate the accretion of interest ranged from 4.02% to 7.05%. |
Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2014, was as follows:
|
|
|
|
|
|
|
|
|
|
|
2015 |
$ |
11 |
|
|
2016 |
|
10 |
|
|
2017 |
|
10 |
|
|
2018 |
|
9 |
|
|
2019 |
|
9 |
|
Changes in DSI (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Balance as of beginning-of-year |
$ |
11 |
|
$ |
9 |
|
$ |
12 |
|
|
Deferrals |
|
1 |
|
|
1 |
|
|
1 |
|
|
Amortization, net of interest: |
|
|
|
|
|
|
|
|
|
|
Amortization, excluding unlocking, net of interest |
|
(2 |
) |
|
(1 |
) |
|
(2 |
) |
|
Adjustment related to unrealized (gains) losses |
|
- |
|
|
2 |
|
|
(2 |
) |
|
Balance as of end-of-year |
$ |
10 |
|
$ |
11 |
|
$ |
9 |
|
25
Changes in DFEL (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Balance as of beginning-of-year |
$ |
126 |
|
$ |
74 |
|
$ |
82 |
|
|
Deferrals |
|
22 |
|
|
26 |
|
|
29 |
|
|
Amortization, net of interest: |
|
|
|
|
|
|
|
|
|
|
Amortization, excluding unlocking, net of interest |
|
(17 |
) |
|
(12 |
) |
|
(15 |
) |
|
Unlocking |
|
(1 |
) |
|
(2 |
) |
|
(6 |
) |
|
Adjustment related to unrealized (gains) losses |
|
(45 |
) |
|
40 |
|
|
(16 |
) |
|
Balance as of end-of-year |
$ |
85 |
|
$ |
126 |
|
$ |
74 |
|
7. Reinsurance
The following summarizes reinsurance amounts (in millions) recorded on our Statements of Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Direct insurance premiums and fee income |
$ |
640 |
|
$ |
605 |
|
$ |
578 |
|
|
Reinsurance ceded |
|
(185 |
) |
|
(181 |
) |
|
(164 |
) |
|
Total insurance premiums and fee income |
$ |
455 |
|
$ |
424 |
|
$ |
414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct insurance benefits |
$ |
497 |
|
$ |
541 |
|
$ |
472 |
|
|
Reinsurance recoveries netted against benefits |
|
(181 |
) |
|
(249 |
) |
|
(207 |
) |
|
Total benefits |
$ |
316 |
|
$ |
292 |
|
$ |
265 |
|
We cede insurance to other companies. The portion of our life insurance and annuity risks exceeding our retention limit is reinsured with other insurers. We seek reinsurance coverage to limit our exposure to mortality losses and to enhance our capital management.
Under our reinsurance program, we reinsure 20% to 25% of the mortality risk on newly issued life insurance contracts. Our policy for this program is to retain no more than $20 million on a single insured life. Portions of our deferred annuity business have been reinsured on a Modco basis with other companies to limit our exposure to interest rate risks. As of December 31, 2014, the reserves associated with these reinsurance arrangements totaled $4 million.
Our amounts recoverable from reinsurers represent receivables from and reserves ceded to reinsurers. The amounts recoverable from reinsurers were $434 million and $478 million as of December 31, 2014 and 2013, respectively. We focus on obtaining reinsurance from a diverse group of reinsurers, and we monitor concentration as well as financial strength ratings of our reinsurers.
During the fourth quarter of 2014, we entered into an agreement to recapture certain traditional and interest sensitive business under several yearly renewable term reinsurance treaties that were originally ceded to a reinsurer. As part of this agreement, we received cash consideration of $72 million, of which $11 million represented reimbursement for prepaid reinsurance premiums related to the recaptured treaties. We recognized a one-time gain of $7 million, after-tax, related to this recapture with the remaining difference between the proceeds and the gain being driven primarily by increases in reserves of $26 million and a reduction of DAC of $21 million.
Reinsurance contracts do not relieve an insurer from its primary obligation to policyholders. Therefore, the failure of a reinsurer to discharge its reinsurance obligations could result in a loss to us. We regularly evaluate the financial condition of our reinsurers and monitor concentrations of credit risk related to reinsurance activities.
26
8. Goodwill and Specifically Identifiable Intangible Assets
The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2014 |
|
|||||||||||||
|
|
Acquisition |
Cumulative |
|
|
|
|
|
|
||||||||
|
|
Balance |
Impairment |
|
|
|
|
|
|
|
|
||||||
|
|
as of |
as of |
|
|
|
|
Balance |
|
||||||||
|
|
Beginning- |
Beginning- |
|
|
|
|
as of End- |
|
||||||||
|
|
|
of-Year |
|
|
of-Year |
|
|
Impairment |
|
|
of-Year |
|
||||
|
Annuities |
|
$ |
26 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
26 |
|
|
Life Insurance |
|
|
136 |
|
|
|
(102 |
) |
|
|
- |
|
|
|
34 |
|
|
Total goodwill |
|
$ |
162 |
|
|
$ |
(102 |
) |
|
$ |
- |
|
|
$ |
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2013 |
|
|||||||||||||
|
|
Acquisition |
Cumulative |
|
|
|
|
|
|
||||||||
|
|
Balance |
Impairment |
|
|
|
|
|
|
|
|
||||||
|
|
as of |
as of |
|
|
|
|
Balance |
|
||||||||
|
|
Beginning- |
Beginning- |
|
|
|
|
as of End- |
|
||||||||
|
|
|
of-Year |
|
|
of-Year |
|
|
Impairment |
|
|
of-Year |
|
||||
|
Annuities |
|
$ |
26 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
26 |
|
|
Life Insurance |
|
|
136 |
|
|
|
(102 |
) |
|
|
- |
|
|
|
34 |
|
|
Total goodwill |
|
$ |
162 |
|
|
$ |
(102 |
) |
|
$ |
- |
|
|
$ |
60 |
|
We perform a Step 1 goodwill impairment analysis on all of our reporting units at least annually on October 1. To determine the implied fair value for our reporting units, we utilize primarily a discounted cash flow valuation technique (“income approach”), although limited available market data is also considered. In determining the estimated fair value, we consider discounted cash flow calculations, the level of LNC’s share price and assumptions that market participants would make in valuing the reporting unit. This analysis requires us to make judgments about revenues, earnings projections, capital market assumptions and discount rates.
As of October 1, 2014, 2013 and 2012 our Annuities reporting unit passed the Step 1 analysis. Given the Step 1 results, we performed a Step 2 analysis for our Life Insurance reporting unit. Based upon our Step 2 analysis for Life Insurance, we determined that there was no impairment due to the implied fair value of goodwill being in excess of the carrying value of goodwill.
The gross carrying amounts and accumulated amortization (in millions) for the major specifically identifiable intangible asset class by reportable segment were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
As of December 31, 2014 |
|
|
As of December 31, 2013 |
|
|
||||||||||
|
|
Gross |
|
|
|
|
|
|
Gross |
|
|
|
|
|
|||
|
|
Carrying |
|
Accumulated |
|
Carrying |
|
Accumulated |
|
||||||||
|
|
Amount |
|
Amortization |
|
Amount |
|
Amortization |
|
||||||||
|
Life Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales force |
$ |
7 |
|
|
$ |
2 |
|
|
$ |
7 |
|
|
$ |
2 |
|
|
Future estimated amortization of the specifically identifiable intangible assets was immaterial as of December 31, 2014.
27
9. Guaranteed Benefit Features
Information on the GDB features outstanding (dollars in millions) was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|||||
|
|
|
2014 (1) |
|
|
2013 (1) |
|
|
||
|
Return of Net Deposits |
|
|
|
|
|
|
|
|
|
|
Total account value |
|
$ |
3,585 |
|
|
$ |
3,102 |
|
|
|
Net amount at risk (2) |
|
|
6 |
|
|
|
3 |
|
|
|
Average attained age of contract holders |
|
|
58 years |
|
|
|
57 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minimum Return |
|
|
|
|
|
|
|
|
|
|
Average attained age of contract holders |
|
|
83 years |
|
|
|
81 years |
|
|
|
Guaranteed minimum return |
|
|
5% |
|
|
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anniversary Contract Value |
|
|
|
|
|
|
|
|
|
|
Total account value |
|
$ |
1,234 |
|
|
$ |
1,174 |
|
|
|
Net amount at risk (2) |
|
|
12 |
|
|
|
8 |
|
|
|
Average attained age of contract holders |
|
|
67 years |
|
|
|
67 years |
|
|
(1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive.
(2) Represents the amount of death benefit in excess of the account balance that is subject to market volatility.
The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDBs (in millions), which were recorded in future contract benefits on our Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|
|||||||
|
|
|
2013 |
|
2012 |
|
|
||||
|
Balance as of beginning-of-year |
$ |
2 |
|
$ |
2 |
|
$ |
2 |
|
|
|
Changes in reserves |
|
- |
|
|
- |
|
|
1 |
|
|
|
Benefits paid |
|
- |
|
|
- |
|
|
(1 |
) |
|
|
Balance as of end-of-year |
$ |
2 |
|
$ |
2 |
|
$ |
2 |
|
|
Variable Annuity Contracts
Account balances of variable annuity contracts with guarantees (in millions) were invested in separate account investment options as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|||||
|
|
|
|
|
2013 |
|
|
|||
|
Asset Type |
|
|
|
|
|
|
|
|
|
|
Domestic equity |
|
$ |
1,638 |
|
|
$ |
1,452 |
|
|
|
International equity |
|
|
689 |
|
|
|
634 |
|
|
|
Bonds |
|
|
1,066 |
|
|
|
899 |
|
|
|
Money market |
|
|
525 |
|
|
|
409 |
|
|
|
Total |
|
$ |
3,918 |
|
|
$ |
3,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent of total variable annuity |
|
|
|
|
|
|
|
|
|
|
separate account values |
|
|
92% |
|
|
|
91% |
|
|
Secondary Guarantee Products
Future contract benefits and other contract holder funds include reserves for our secondary guarantee products sold through our Life Insurance segment. These UL and VUL products with secondary guarantees represented 28% of total life insurance in-force reserves as of December 31, 2014.
28
10. Contingencies and Commitments
Contingencies
Regulatory and Litigation Matters
Regulatory bodies, such as state insurance departments, the Securities and Exchange Commission, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws and unclaimed property laws.
From time to time we may have various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some cases, very large and/or indeterminate amounts, including punitive and treble damages, could be sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LLANY in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.
Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.
We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of December 31, 2014. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material adverse effect on LLANY’s financial condition.
Commitments
Vulnerability from Concentrations
As of December 31, 2014, we did not have a concentration of business transactions with a particular customer or lender or sources of supply of labor or services used in the business. However, we do have a concentration in a market and geographic area in which business is conducted. For the year ended December 31, 2014, approximately 96% of the premiums, on the basis of statutory accounting principles (“SAP”), were generated in New York.
Other Contingency Matters
State guaranty funds assess insurance companies to cover losses to contract holders of insolvent or rehabilitated companies. Mandatory assessments may be partially recovered through a reduction in future premium taxes in some states. We have accrued for expected assessments and the related reductions in future state premium taxes, which net to assessments (recoveries) of $(8) million and $1 million as of December 31, 2014 and 2013, respectively.
29
11. Shares and Stockholder’s Equity
All authorized and issued shares of LLANY are owned by LNL.
AOCI
The following summarizes the components and changes in AOCI (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Unrealized Gain (Loss) on AFS Securities |
|
|
|
|
|
|
|
|
|
|
Balance as of beginning-of-year |
$ |
139 |
|
$ |
341 |
|
$ |
258 |
|
|
Unrealized holding gains (losses) arising during the year |
|
332 |
|
|
(508 |
) |
|
226 |
|
|
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds |
|
(134 |
) |
|
186 |
|
|
(139 |
) |
|
Income tax benefit (expense) |
|
(70 |
) |
|
113 |
|
|
(14 |
) |
|
Less: |
|
|
|
|
|
|
|
|
|
|
Reclassification adjustment for gains (losses) included in net income (loss) |
|
(1 |
) |
|
(9 |
) |
|
(16 |
) |
|
Associated amortization of DAC, VOBA, DSI and DFEL |
|
(3 |
) |
|
(2 |
) |
|
- |
|
|
Income tax benefit (expense) |
|
1 |
|
|
4 |
|
|
6 |
|
|
Balance as of end-of-year |
$ |
270 |
|
$ |
139 |
|
$ |
341 |
|
|
Unrealized OTTI on AFS Securities |
|
|
|
|
|
|
|
|
|
|
Balance as of beginning-of-year |
$ |
(7 |
) |
$ |
(10 |
) |
$ |
(9 |
) |
|
(Increases) attributable to: |
|
|
|
|
|
|
|
|
|
|
Gross OTTI recognized in OCI during the year |
|
(2 |
) |
|
(2 |
) |
|
(11 |
) |
|
Change in DAC, VOBA, DSI and DFEL |
|
- |
|
|
- |
|
|
1 |
|
|
Income tax benefit (expense) |
|
1 |
|
|
1 |
|
|
3 |
|
|
Decreases attributable to: |
|
|
|
|
|
|
|
|
|
|
Sales, maturities or other settlements of AFS securities |
|
8 |
|
|
7 |
|
|
13 |
|
|
Change in DAC, VOBA, DSI and DFEL |
|
(2 |
) |
|
(1 |
) |
|
(3 |
) |
|
Income tax benefit (expense) |
|
(2 |
) |
|
(2 |
) |
|
(4 |
) |
|
Balance as of end-of-year |
$ |
(4 |
) |
$ |
(7 |
) |
$ |
(10 |
) |
|
Unrealized Gain (Loss) on Derivative Instruments |
|
|
|
|
|
|
|
|
|
|
Balance as of beginning-of-year |
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
|
Balance as of end-of-year |
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Statements of Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
For The Years Ended |
|
|
|||||
|
|
|
|
||||||
|
|
|
|
2013 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
Unrealized Gain (Loss) on AFS Securities |
|
|
|
|
|
|
|
|
|
Gross reclassification |
$ |
(1 |
) |
|
$ |
(9 |
) |
Total realized gain (loss) |
|
Associated amortization of DAC, |
|
|
|
|
|
|
|
|
|
VOBA, DSI and DFEL |
|
(3 |
) |
|
|
(2 |
) |
Total realized gain (loss) |
|
Reclassification before income |
|
|
|
|
|
|
|
|
|
tax benefit (expense) |
|
(4 |
) |
|
|
(11 |
) |
Income (loss) from continuing operations before taxes |
|
Income tax benefit (expense) |
|
1 |
|
|
|
4 |
|
Federal income tax expense (benefit) |
|
Reclassification, net of income tax |
$ |
(3 |
) |
|
$ |
(7 |
) |
Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Unrealized OTTI on AFS Securities |
|
|
|
|
|
|
|
|
|
Gross reclassification |
$ |
8 |
|
|
$ |
7 |
|
Total realized gain (loss) |
|
Change in DAC, VOBA, DSI and DFEL |
|
(2 |
) |
|
|
(1 |
) |
Total realized gain (loss) |
|
Reclassification before income |
|
|
|
|
|
|
|
|
|
tax benefit (expense) |
|
6 |
|
|
|
6 |
|
Income (loss) from continuing operations before taxes |
|
Income tax benefit (expense) |
|
(2 |
) |
|
|
(2 |
) |
Federal income tax expense (benefit) |
|
Reclassification, net of income tax |
$ |
4 |
|
|
$ |
4 |
|
Net income (loss) |
12. Realized Gain (Loss)
30
Details underlying realized gain (loss) (in millions) reported on our Statements of Comprehensive Income (Loss) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Total realized gain (loss) related to certain investments (1) |
$ |
(4 |
) |
$ |
(11 |
) |
$ |
(16 |
) |
|
Variable annuity net derivatives results: (2) |
|
|
|
|
|
|
|
|
|
|
Gross gain (loss) |
|
(7 |
) |
|
(3 |
) |
|
(1 |
) |
|
Associated amortization of DAC, VOBA, DSI and DFEL |
|
(1 |
) |
|
(1 |
) |
|
(2 |
) |
|
Total realized gain (loss) |
$ |
(12 |
) |
$ |
(15 |
) |
$ |
(19 |
) |
|
(1) |
See “Realized Gain (Loss) Related to Certain Investments” section in Note 3. |
|
(2) |
Includes the net difference in the change in embedded derivative reserves of our GLB products. |
13. Commissions and Other Expenses
Details underlying commissions and other expenses (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Commissions |
$ |
96 |
|
$ |
97 |
|
$ |
82 |
|
|
General and administrative expenses |
|
74 |
|
|
78 |
|
|
79 |
|
|
DAC and VOBA deferrals and interest, net of amortization |
|
11 |
|
|
12 |
|
|
11 |
|
|
Taxes, licenses and fees |
|
10 |
|
|
17 |
|
|
19 |
|
|
Total |
$ |
191 |
|
$ |
204 |
|
$ |
191 |
|
14. Pension, Postretirement Health Care and Life Insurance Benefit Plans
LNC and LNL maintain qualified funded defined benefit pension plans in which many of our employees are participants. LNC and LNL also maintain non-qualified, unfunded defined benefit pension plans for certain employees. In addition, for certain former employees we have supplemental retirement plans that provide defined benefit pension benefits in excess of limits imposed by federal tax law. All of our defined benefit pension plans are frozen, and there are no new participants and no future accruals of benefits from the date of the freeze.
LNC and LNL also sponsor a voluntary employees’ beneficiary association (“VEBA”) trust that provides postretirement medical, dental and life insurance benefits to retired full-time employees and agents who, depending on the plan, have worked for us for at least 10 years and attained age 55 (age 60 for agents). VEBAs are a special type of tax-exempt trust used to provide benefits that are subject to preferential tax treatment under the Internal Revenue Code. Medical and dental benefits are available to spouses and other eligible dependents of retired employees and agents. Retirees may be required to contribute toward the cost of these benefits. Eligibility and the amount of required contribution for these benefits varies based upon a variety of factors including years of service and year of retirement.
15. Defined Contribution and Deferred Compensation Plans
Defined Contribution Plans
LNC and LNL sponsor defined contribution plans, which include 401(k) and money purchase plans, for eligible employees and agents, including those of LLANY. LNC and LNL make contributions and matching contributions to each of the active plans in accordance with the plan documents and various limitations under Section 401(a) of the Internal Revenue Code of 1986, as amended. Our expenses for these plans were $3 million for the years ended December 31, 2014, 2013 and 2012.
Deferred Compensation Plans
LNC and LNL sponsor six separate non-qualified, unfunded, deferred compensation plans for employees, agents and non-employee directors. LLANY participates in five of these deferred compensation plans. Our associated liability for these plans was $3 million as of December 31, 2014 and 2013, which is reported in other liabilities on our Balance Sheets.
Deferred Compensation Plan for Employees
Participants may elect to defer a portion of their compensation as defined by the plan. Participants may select from prescribed “phantom” investment options that are used as measures for calculating the returns that are notionally credited to their accounts. Under the terms of the plan, LNC agrees to pay out amounts based upon the aggregate performance of the investment measures selected by the participants. LNC makes matching contributions based upon amounts placed into the plan by individuals after participants have exceeded applicable limits of the Internal Revenue Code applicable to 401(k) plans. The amounts of LNC contributions are calculated in
31
accordance with the plan document. Our expenses for this plan were less than $1 million for the years ended December 31, 2014, 2013 and 2012.
Deferred Compensation Plans for Agents
LNL sponsors three deferred compensation plans for certain eligible agents. Participants may elect to defer a portion of their compensation as defined by the respective plan. Participants may select from prescribed “phantom” investment options that are used as measures for calculating the returns that are notionally credited to their accounts. Under the terms of these plans, LNL agrees to pay out amounts based upon the aggregate performance of the investment measures selected by the participants. The amounts of LNL’s contributions are calculated and made in accordance with the plans’ documents. Our expenses for these plans were not significant for the years ended December 31, 2014, 2013 and 2012.
16. Stock-Based Incentive Compensation Plans
Our employees and agents are included in LNC’s various incentive plans that provide for the issuance of stock options, performance shares (performance-vested shares as opposed to time-vested shares), stock appreciation rights and restricted stock units. LNC issues new shares to satisfy option exercises. Total compensation expense for stock-based incentive compensation plans was not material for the years ended December 31, 2014, 2013 and 2012.
17. Statutory Information and Restrictions
We prepare financial statements in accordance with statutory accounting principles (“SAP”) prescribed or permitted by the New York Department of Insurance, which may vary materially from GAAP.
Prescribed SAP includes the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between statutory financial statements and financial statements prepared in accordance with GAAP are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted.
We are subject to the applicable laws and regulations of our state of domicile. Changes in these laws and regulations could change capital levels or capital requirements for the Company.
Specified statutory information (in millions) was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
||||
|
|
|
2013 |
|
|||
|
U.S. capital and surplus |
$ |
653 |
|
$ |
713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
U.S. net gain (loss) from operations, after-tax |
$ |
41 |
|
$ |
166 |
|
$ |
82 |
|
|
U.S. net income (loss) |
|
39 |
|
|
161 |
|
|
74 |
|
The decrease in statutory net income (loss) when comparing 2014 to 2013 was due primarily to unfavorable reserve development in variable annuities due to lower forward interest rates.
The increase in statutory net income (loss) when comparing 2013 to 2012 was due primarily to an increase in favorable tax items over prior year and favorable reserve development in variable annuities due to improvements in the equity market and higher forward interest rates.
Our state of domicile, New York, has adopted certain prescribed accounting practices that differ from those found in NAIC SAP. These prescribed practices are the use of continuous Commissioners Annuity Reserve Valuation Method (“CARVM”) in the calculation of reserves and the use of a more conservative valuation interest rate on certain annuities.
32
The favorable (unfavorable) effects on statutory surplus compared to NAIC statutory surplus from the use of these prescribed practices (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
||||
|
|
|
2013 |
|
|||
|
Calculation of reserves using continuous CARVM |
|
(1 |
) |
|
(2 |
) |
|
Conservative valuation rate on certain annuities |
|
(2 |
) |
|
(1 |
) |
During the third quarter of 2013, the New York State Department of Financial Services (“NYDFS”) announced that it would not recognize the NAIC revisions to Actuarial Guideline 38 in applying the New York law governing the reserves to be held for UL and VUL products containing secondary guarantees. The change, effective December 31, 2013, impacts the Company. The Company discontinued the sale of these products in early 2013, but the change affects those policies sold prior to that time. We began phasing in the increase in reserves over five years beginning in 2013. As of December 31, 2014, we have increased reserves by $180 million. The additional increase in reserves over the next three years is subject to ongoing discussions with the NYDFS. However, we do not expect the amount for each of the remaining years to exceed $90 million per year.
The NAIC has adopted risk-based capital (“RBC”) requirements for life insurance companies to evaluate the adequacy of statutory capital and surplus in relation to investment and insurance risks. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. Under RBC requirements, regulatory compliance is determined by the ratio of a company’s total adjusted capital, as defined by the NAIC, to its company action level of RBC (known as the “RBC ratio”), also as defined by the NAIC. The company action level may be triggered if the RBC ratio is between 75% and 100%, which would require the insurer to submit a plan to the regulator detailing corrective action it proposes to undertake. As of December 31, 2014, the Company’s RBC ratio was approximately five times the aforementioned company action level.
We are subject to certain insurance department regulatory restrictions as to the transfer of funds and payment of dividends to LNL. Under New York laws and regulations, we may pay dividends to LNL without prior approval of the Superintendent of the New York Department of Insurance provided such dividend, along with all other dividends paid within the preceding 12 consecutive months, would not exceed the statutory limitation. The current statutory limitation is the lesser of 10% of surplus to contract holders as of the immediately preceding calendar year or net gain from operations for the immediately preceding calendar year, not including realized capital gains. We expect we could pay dividends of approximately $41 million in 2015 without New York Department of Insurance approval.
18. Fair Value of Financial Instruments
The carrying values and estimated fair values of our financial instruments (in millions) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014 |
|
As of December 31, 2013 |
|
||||||||
|
|
Carrying |
|
Fair |
|
Carrying |
|
Fair |
|
||||
|
|
Value |
|
Value |
|
Value |
|
Value |
|
||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
AFS securities – Fixed maturity securities |
$ |
7,665 |
|
$ |
7,665 |
|
$ |
7,259 |
|
$ |
7,259 |
|
|
Mortgage loans on real estate |
|
551 |
|
|
576 |
|
|
521 |
|
|
511 |
|
|
Cash and invested cash |
|
64 |
|
|
64 |
|
|
10 |
|
|
10 |
|
|
Reinsurance related embedded derivatives |
|
11 |
|
|
11 |
|
|
8 |
|
|
8 |
|
|
Other assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinsurance recoverable |
|
34 |
|
|
34 |
|
|
- |
|
|
- |
|
|
GLB reserves embedded derivatives (1) |
|
- |
|
|
- |
|
|
36 |
|
|
36 |
|
|
Separate account assets |
|
4,684 |
|
|
4,684 |
|
|
4,099 |
|
|
4,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Future contract benefits – indexed annuity and |
|
|
|
|
|
|
|
|
|
|
|
|
|
IUL contracts embedded derivatives |
|
(2 |
) |
|
(2 |
) |
|
- |
|
|
- |
|
|
Other contract holder funds: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Remaining guaranteed interest and similar contracts |
|
(48 |
) |
|
(48 |
) |
|
(54 |
) |
|
(54 |
) |
|
Account values of certain investment contracts |
|
(1,327 |
) |
|
(1,530 |
) |
|
(1,385 |
) |
|
(1,440 |
) |
|
Short-term debt |
|
- |
|
|
- |
|
|
(11 |
) |
|
(11 |
) |
|
Other liabilities – GLB reserves embedded derivatives (1) |
|
(34 |
) |
|
(34 |
) |
|
(36 |
) |
|
(36 |
) |
|
(1) |
GLB reserves embedded derivatives are fully ceded to LNL.
33 |
Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value
The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on our Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments.
Mortgage Loans on Real Estate
The fair value of mortgage loans on real estate is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 2 within the fair value hierarchy.
Other Contract Holder Funds
Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of December 31, 2014 and 2013, the remaining guaranteed interest and similar contracts carrying value approximated fair value. The fair value of the account values of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of our other contract holder funds are classified as Level 3 within the fair value hierarchy.
Short-Term Debt
The carrying value of short-term debt approximates fair value. The inputs used to measure the fair value of our short-term debt are classified as Level 2 within the fair value hierarchy.
Financial Instruments Carried at Fair Value
We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2014 or 2013, and we noted no changes in our valuation methodologies between these periods.
34
The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels described above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014 |
|
|||||||||||||
|
|
|
Quoted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in Active |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Markets for |
Significant |
Significant |
|
|
|
|
|||||||||
|
|
|
Identical |
|
Observable |
Unobservable |
|
Total |
|
||||||||
|
|
|
Assets |
|
|
Inputs |
|
|
Inputs |
|
|
Fair |
|
||||
|
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
|
Value |
|
||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
$ |
6 |
|
|
$ |
6,458 |
|
|
$ |
66 |
|
|
$ |
6,530 |
|
|
ABS |
|
|
- |
|
|
|
153 |
|
|
|
- |
|
|
|
153 |
|
|
U.S. government bonds |
|
|
31 |
|
|
|
2 |
|
|
|
- |
|
|
|
33 |
|
|
Foreign government bonds |
|
|
- |
|
|
|
44 |
|
|
|
2 |
|
|
|
46 |
|
|
RMBS |
|
|
- |
|
|
|
408 |
|
|
|
- |
|
|
|
408 |
|
|
CMBS |
|
|
- |
|
|
|
39 |
|
|
|
1 |
|
|
|
40 |
|
|
CLOs |
|
|
- |
|
|
|
- |
|
|
|
11 |
|
|
|
11 |
|
|
State and municipal bonds |
|
|
- |
|
|
|
346 |
|
|
|
- |
|
|
|
346 |
|
|
Hybrid and redeemable preferred securities |
|
|
- |
|
|
|
98 |
|
|
|
- |
|
|
|
98 |
|
|
Cash and invested cash |
|
|
- |
|
|
|
64 |
|
|
|
- |
|
|
|
64 |
|
|
Other assets – Reinsurance recoverable |
|
|
- |
|
|
|
- |
|
|
|
34 |
|
|
|
34 |
|
|
Separate account assets |
|
|
74 |
|
|
|
4,610 |
|
|
|
- |
|
|
|
4,684 |
|
|
Total assets |
|
$ |
111 |
|
|
$ |
12,222 |
|
|
$ |
114 |
|
|
$ |
12,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future contract benefits – indexed annuity and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IUL contracts embedded derivatives |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(2 |
) |
|
$ |
(2 |
) |
|
Other liabilities – GLB reserves embedded derivatives |
|
|
- |
|
|
|
- |
|
|
|
(34 |
) |
|
|
(34 |
) |
|
Total liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(36 |
) |
|
$ |
(36 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013 |
|
|||||||||||||
|
|
|
Quoted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in Active |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Markets for |
Significant |
Significant |
|
|
|
|
|||||||||
|
|
|
Identical |
|
Observable |
Unobservable |
|
Total |
|
||||||||
|
|
|
Assets |
|
|
Inputs |
|
|
Inputs |
|
|
Fair |
|
||||
|
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
|
Value |
|
||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
|
$ |
5 |
|
|
$ |
5,988 |
|
|
$ |
73 |
|
|
$ |
6,066 |
|
|
ABS |
|
|
- |
|
|
|
173 |
|
|
|
- |
|
|
|
173 |
|
|
U.S. government bonds |
|
|
31 |
|
|
|
1 |
|
|
|
- |
|
|
|
32 |
|
|
Foreign government bonds |
|
|
- |
|
|
|
43 |
|
|
|
2 |
|
|
|
45 |
|
|
RMBS |
|
|
- |
|
|
|
484 |
|
|
|
- |
|
|
|
484 |
|
|
CMBS |
|
|
- |
|
|
|
47 |
|
|
|
2 |
|
|
|
49 |
|
|
CLOs |
|
|
- |
|
|
|
7 |
|
|
|
11 |
|
|
|
18 |
|
|
State and municipal bonds |
|
|
- |
|
|
|
298 |
|
|
|
- |
|
|
|
298 |
|
|
Hybrid and redeemable preferred securities |
|
|
- |
|
|
|
93 |
|
|
|
1 |
|
|
|
94 |
|
|
Cash and invested cash |
|
|
- |
|
|
|
10 |
|
|
|
- |
|
|
|
10 |
|
|
Separate account assets |
|
|
78 |
|
|
|
4,021 |
|
|
|
- |
|
|
|
4,099 |
|
|
Reinsurance related embedded derivatives |
|
|
- |
|
|
|
8 |
|
|
|
- |
|
|
|
8 |
|
|
Other assets – GLB reserves embedded |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
derivatives |
|
|
- |
|
|
|
- |
|
|
|
36 |
|
|
|
36 |
|
|
Total assets |
|
$ |
114 |
|
|
$ |
11,173 |
|
|
$ |
125 |
|
|
$ |
11,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities – GLB embedded derivatives |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(36 |
) |
|
$ |
(36 |
) |
|
Total liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(36 |
) |
|
$ |
(36 |
) |
36
The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2014 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Purchases, |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
Gains |
Issuances, |
Transfers |
|
|
|
|
|||||
|
|
|
|
|
Items |
|
(Losses) |
Sales, |
Into or |
|
|
|
|
||||||
|
|
|
|
|
Included |
|
in |
Maturities, |
Out |
|
|
|
|
||||||
|
|
Beginning |
|
in |
|
OCI |
Settlements, |
of |
|
Ending |
|
||||||||
|
|
Fair |
|
Net |
|
and |
|
Calls, |
|
Level 3, |
|
Fair |
|
||||||
|
|
Value |
|
Income |
|
Other (1) |
|
Net |
|
Net (1)(2) |
|
Value |
|
||||||
|
Investments: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
73 |
|
$ |
4 |
|
$ |
- |
|
$ |
23 |
|
$ |
(34 |
) |
$ |
66 |
|
|
Foreign government bonds |
|
2 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2 |
|
|
CMBS |
|
2 |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
- |
|
|
1 |
|
|
CLOs |
|
11 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
11 |
|
|
Hybrid and redeemable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
preferred securities |
|
1 |
|
|
- |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
- |
|
|
Other assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLB reserves embedded derivatives (4) |
|
36 |
|
|
(70 |
) |
|
- |
|
|
- |
|
|
34 |
|
|
- |
|
|
Reinsurance recoverable |
|
- |
|
|
34 |
|
|
- |
|
|
- |
|
|
- |
|
|
34 |
|
|
Future contract benefits – indexed annuity and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IUL contracts embedded derivatives |
|
- |
|
|
(1 |
) |
|
- |
|
|
(1 |
) |
|
- |
|
|
(2 |
) |
|
Other liabilities – GLB reserves |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
embedded derivatives (4) |
|
(36 |
) |
|
36 |
|
|
- |
|
|
- |
|
|
(34 |
) |
|
(34 |
) |
|
Total, net |
$ |
89 |
|
$ |
3 |
|
$ |
- |
|
$ |
21 |
|
$ |
(35 |
) |
$ |
78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2013 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Purchases, |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
Gains |
Issuances, |
Transfers |
|
|
|
|
|||||
|
|
|
|
|
Items |
|
(Losses) |
Sales, |
Into or |
|
|
|
|
||||||
|
|
|
|
|
Included |
|
in |
Maturities, |
Out |
|
|
|
|
||||||
|
|
Beginning |
|
in |
|
OCI |
Settlements, |
of |
|
Ending |
|
||||||||
|
|
Fair |
|
Net |
|
and |
|
Calls, |
|
Level 3, |
|
Fair |
|
||||||
|
|
Value |
|
Income |
|
Other (1) |
|
Net |
|
Net (1)(2) |
|
Value |
|
||||||
|
Investments: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
83 |
|
$ |
4 |
|
$ |
3 |
|
$ |
(1 |
) |
$ |
(16 |
) |
$ |
73 |
|
|
ABS |
|
- |
|
|
- |
|
|
- |
|
|
5 |
|
|
(5 |
) |
|
- |
|
|
Foreign government bonds |
|
- |
|
|
- |
|
|
- |
|
|
2 |
|
|
- |
|
|
2 |
|
|
CMBS |
|
3 |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
- |
|
|
2 |
|
|
CLOs |
|
6 |
|
|
- |
|
|
- |
|
|
5 |
|
|
- |
|
|
11 |
|
|
Hybrid and redeemable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
preferred securities |
|
4 |
|
|
- |
|
|
(1 |
) |
|
(2 |
) |
|
- |
|
|
1 |
|
|
Other assets – GLB reserves |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
embedded derivatives (4) |
|
51 |
|
|
(87 |
) |
|
- |
|
|
- |
|
|
72 |
|
|
36 |
|
|
Other liabilities – GLB reserves |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
embedded derivatives (4) |
|
(51 |
) |
|
87 |
|
|
- |
|
|
- |
|
|
(72 |
) |
|
(36 |
) |
|
Total, net |
$ |
96 |
|
$ |
4 |
|
$ |
2 |
|
$ |
8 |
|
$ |
(21 |
) |
$ |
89 |
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2012 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Purchases, |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
Gains |
Issuances, |
Transfers |
|
|
|
|
|||||
|
|
|
|
|
Items |
|
(Losses) |
Sales, |
Into or |
|
|
|
|
||||||
|
|
|
|
|
Included |
|
in |
Maturities, |
Out |
|
|
|
|
||||||
|
|
Beginning |
|
in |
|
OCI |
Settlements, |
of |
|
Ending |
|
||||||||
|
|
Fair |
|
Net |
|
and |
|
Calls, |
|
Level 3, |
|
Fair |
|
||||||
|
|
Value |
|
Income |
|
Other (1) |
|
Net |
|
Net (1) |
|
Value |
|
||||||
|
Investments: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
140 |
|
$ |
4 |
|
$ |
(2 |
) |
$ |
(5 |
) |
$ |
(54 |
) |
$ |
83 |
|
|
U.S. government bonds |
|
1 |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
- |
|
|
- |
|
|
RMBS |
|
2 |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
(1 |
) |
|
- |
|
|
CMBS |
|
4 |
|
|
(1 |
) |
|
1 |
|
|
- |
|
|
(1 |
) |
|
3 |
|
|
CLOs |
|
3 |
|
|
- |
|
|
- |
|
|
6 |
|
|
(3 |
) |
|
6 |
|
|
Hybrid and redeemable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
preferred securities |
|
10 |
|
|
- |
|
|
1 |
|
|
- |
|
|
(7 |
) |
|
4 |
|
|
Other liabilities – GLB reserves |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
embedded derivatives (4) |
|
(101 |
) |
|
50 |
|
|
- |
|
|
- |
|
|
- |
|
|
(51 |
) |
|
Total, net |
$ |
59 |
|
$ |
53 |
|
$ |
- |
|
$ |
(1 |
) |
$ |
(66 |
) |
$ |
45 |
|
|
(1) |
Transfers into or out of Level 3 for AFS are displayed at amortized cost as of the beginning-of-year. For AFS securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in prior years. |
|
(2) |
Transfers into or out of Level 3 for GLB reserves embedded derivatives between future contract benefits, other assets and other liabilities on our Balance Sheets. |
|
(3) |
Amortization and accretion of premiums and discounts are included in net investment income on our Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Statements of Comprehensive Income (Loss). |
|
(4) |
Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Statements of Comprehensive Income (Loss). |
The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, (in millions) as reported above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2014 |
|
||||||||||||||||
|
|
Issuances |
|
Sales |
|
Maturities |
Settlements |
Calls |
|
Total |
|
||||||||
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
25 |
|
$ |
(1 |
) |
$ |
- |
|
$ |
(1 |
) |
$ |
- |
|
$ |
23 |
|
|
CMBS |
|
- |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
- |
|
|
(1 |
) |
|
Future contract benefits – indexed annuity and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IUL contracts embedded derivatives |
|
(1 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
Total, net |
$ |
24 |
|
$ |
(1 |
) |
$ |
- |
|
$ |
(2 |
) |
$ |
- |
|
$ |
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2013 |
|
||||||||||||||||
|
|
Issuances |
|
Sales |
|
Maturities |
Settlements |
Calls |
|
Total |
|
||||||||
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
14 |
|
$ |
- |
|
$ |
(13 |
) |
$ |
(2 |
) |
$ |
- |
|
$ |
(1 |
) |
|
ABS |
|
5 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5 |
|
|
Foreign government bonds |
|
2 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2 |
|
|
CMBS |
|
- |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
- |
|
|
(1 |
) |
|
CLOs |
|
5 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5 |
|
|
Hybrid and redeemable preferred |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
securities |
|
- |
|
|
(2 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(2 |
) |
|
Total, net |
$ |
26 |
|
$ |
(2 |
) |
$ |
(13 |
) |
$ |
(3 |
) |
$ |
- |
|
$ |
8 |
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2012 |
|
||||||||||||||||
|
|
Issuances |
|
Sales |
|
Maturities |
Settlements |
Calls |
|
Total |
|
||||||||
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
(3 |
) |
$ |
(2 |
) |
$ |
(5 |
) |
|
U.S. government bonds |
|
- |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
- |
|
|
(1 |
) |
|
RMBS |
|
- |
|
|
- |
|
|
(1 |
) |
|
- |
|
|
- |
|
|
(1 |
) |
|
CLOs |
|
6 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
6 |
|
|
Total, net |
$ |
6 |
|
$ |
- |
|
$ |
(1 |
) |
$ |
(4 |
) |
$ |
(2 |
) |
$ |
(1 |
) |
The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Other assets – GLB reserves embedded derivatives (1) |
$ |
52 |
|
$ |
(100 |
) |
$ |
- |
|
|
Other liabilities – GLB reserves embedded derivatives (1) |
|
(52 |
) |
|
100 |
|
|
58 |
|
|
Total, net |
$ |
- |
|
$ |
- |
|
$ |
58 |
|
|
(1) |
Included in realized gain (loss) on our Statements of Comprehensive Income (Loss). |
The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2014 |
|
|||||||
|
|
Transfers |
|
Transfers |
|
|
|
|
||
|
|
Into |
|
Out of |
|
|
|
|
||
|
|
Level 3 |
|
Level 3 |
|
Total |
|
|||
|
Investments: |
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities – Corporate bonds |
$ |
16 |
|
$ |
(50 |
) |
$ |
(34 |
) |
|
Hybrid and redeemable preferred securities |
|
- |
|
|
(1 |
) |
|
(1 |
) |
|
Other assets – GLB reserves |
|
|
|
|
|
|
|
|
|
|
embedded derivatives |
|
34 |
|
|
- |
|
|
34 |
|
|
Other liabilities – GLB reserves |
|
|
|
|
|
|
|
|
|
|
embedded derivatives |
|
- |
|
|
(34 |
) |
|
(34 |
) |
|
Total, net |
$ |
50 |
|
$ |
(85 |
) |
$ |
(35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2013 |
|
|||||||
|
|
Transfers |
|
Transfers |
|
|
|
|
||
|
|
Into |
|
Out of |
|
|
|
|
||
|
|
Level 3 |
|
Level 3 |
|
Total |
|
|||
|
Investments: |
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
8 |
|
$ |
(24 |
) |
$ |
(16 |
) |
|
ABS |
|
|
|
|
(5 |
) |
|
(5 |
) |
|
Hybrid and redeemable preferred securities |
|
1 |
|
|
(1 |
) |
|
- |
|
|
Total, net |
$ |
9 |
|
$ |
(30 |
) |
$ |
(21 |
) |
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2012 |
|
|||||||
|
|
Transfers |
|
Transfers |
|
|
|
|
||
|
|
Into |
|
Out of |
|
|
|
|
||
|
|
Level 3 |
|
Level 3 |
|
Total |
|
|||
|
Investments: |
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS securities: |
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
2 |
|
$ |
(56 |
) |
$ |
(54 |
) |
|
RMBS |
|
- |
|
|
(1 |
) |
|
(1 |
) |
|
CMBS |
|
- |
|
|
(1 |
) |
|
(1 |
) |
|
CLOs |
|
- |
|
|
(3 |
) |
|
(3 |
) |
|
Hybrid and redeemable preferred securities |
|
3 |
|
|
(10 |
) |
|
(7 |
) |
|
Total, net |
$ |
5 |
|
$ |
(71 |
) |
$ |
(66 |
) |
Transfers into and out of Level 3 are generally the result of observable market information on a security no longer being available or becoming available to our pricing vendors. For the years ended December 31, 2014, 2013 and 2012 transfers into and out of were attributable primarily to the securities’ observable market information no longer being available or becoming available. Transfers into and out for GLB reserves embedded derivatives represent reclassifications between future contract benefits and other assets or other liabilities. Transfers into and out of Levels 1 and 2 are generally the result of a change in the type of input used to measure the fair value of an asset or liability at the end of the reporting period. When quoted prices in active markets become available, transfers from Level 2 to Level 1 will result. When quoted prices in active markets become unavailable, but we are able to employ a valuation methodology using significant observable inputs, transfers from Level 1 to Level 2 will result. For the years ended December 31, 2014, 2013 and 2012 the transfers between Levels 1 and 2 of the fair value hierarchy were less than $1 million for our financial instruments carried at fair value.
40
The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair |
|
Valuation |
|
Significant |
|
Assumption or |
|
||||||||
|
|
Value |
|
Technique |
|
Unobservable Inputs |
|
Input Ranges |
|
||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity AFS and trading |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds |
$ |
62 |
|
Discounted cash flow |
|
Liquidity/duration adjustment (1) |
|
1.5 |
% |
|
- |
7.4 |
% |
|
||
|
Foreign government bonds |
|
2 |
|
Discounted cash flow |
|
Liquidity/duration adjustment (1) |
|
3.5 |
% |
|
- |
3.5 |
% |
|
||
|
Other assets – Reinsurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
recoverable |
|
34 |
|
Discounted cash flow |
|
Long-term lapse rate (2) |
|
1 |
% |
|
- |
30 |
% |
|
||
|
|
|
|
|
|
|
|
Utilization of guaranteed withdrawals (3) |
90 |
% |
|
- |
100 |
% |
|
||
|
|
|
|
|
|
|
|
Claims utilization factor (4) |
|
60 |
% |
|
- |
100 |
% |
|
|
|
|
|
|
|
|
|
|
Premiums utilization factor (4) |
|
70 |
% |
|
- |
140 |
% |
|
|
|
|
|
|
|
|
|
|
NPR (5) |
|
0.00 |
% |
|
- |
0.35 |
% |
|
|
|
|
|
|
|
|
|
|
Mortality rate (6) |
|
|
|
|
|
(8) |
|
|
|
|
|
|
|
|
|
|
|
Volatility (7) |
|
1 |
% |
|
- |
28 |
% |
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future contract benefits – indexed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
annuity and IUL contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
embedded derivatives |
|
(2 |
) |
Discounted cash flow |
|
Lapse rate (2) |
|
1 |
% |
|
- |
15 |
% |
|
||
|
|
|
|
|
|
|
|
Mortality rate (6) |
|
|
|
|
|
(9) |
|
|
|
|
Other liabilities – GLB reserves |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
embedded derivatives |
|
(34 |
) |
Discounted cash flow |
|
Long-term lapse rate (2) |
|
1 |
% |
|
- |
30 |
% |
|
||
|
|
|
|
|
|
|
|
Utilization of guaranteed withdrawals (3) |
90 |
% |
|
- |
100 |
% |
|
||
|
|
|
|
|
|
|
|
Claims utilization factor (4) |
|
60 |
% |
|
- |
100 |
% |
|
|
|
|
|
|
|
|
|
|
Premiums utilization factor (4) |
|
70 |
% |
|
- |
140 |
% |
|
|
|
|
|
|
|
|
|
|
NPR (5) |
|
0.00 |
% |
|
- |
0.35 |
% |
|
|
|
|
|
|
|
|
|
|
Mortality rate (6)(8) |
|
|
|
|
|
(9) |
|
|
|
|
|
|
|
|
|
|
|
Volatility (7) |
|
1 |
% |
|
- |
28 |
% |
|
|
|
(1) |
The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. |
|
(2) |
The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity and IUL contracts represents the lapse rates during the surrender charge period. |
|
(3) |
The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. |
|
(4) |
The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. |
|
(5) |
The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. |
|
(6) |
The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. |
|
(7) |
The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. |
|
(8) |
The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. |
|
(9) |
Based on the “Annuity 2000 Mortality Table” developed by the Society of Actuaries Committee on Life Insurance Research that was adopted by the NAIC in 1996 for our mortality input. |
From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or
41
decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement.
Changes in any of the significant inputs presented in the table above may result in a significant change in the fair value measurement of the asset or liability as follows:
|
· |
Investments – An increase in the liquidity/duration adjustment input would result in a decrease in the fair value measurement. |
|
· |
Indexed annuity and IUL contracts embedded derivatives – An increase in the lapse rate or mortality rate inputs would result in a decrease in the fair value measurement. |
|
· |
GLB reserves embedded derivatives – Assuming our GLB reserves embedded derivatives are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would result in a decrease in the fair value measurement; and an increase in the utilization of guarantee withdrawal or volatility inputs would result in an increase in the fair value measurement. |
For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input will not affect the other inputs.
As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary. For more information, see “Summary of Significant Accounting Policies” above.
19. Segment Information
We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. The following is a brief description of these segments and Other Operations.
The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering fixed (including indexed) and variable annuities.
The Retirement Plan Services segment provides employer-sponsored defined benefit and individual retirement accounts, as well as individual and group variable annuities, group fixed annuities and mutual-fund based programs in the retirement plan marketplace.
The Life Insurance segment focuses in the creation and protection of wealth through life insurance products, including term insurance, a linked-benefit product (which is a UL policy linked with riders that provide for long-term care costs), indexed UL and both single and survivorship versions of UL and VUL, including corporate-owned UL and VUL insurance and bank-owned UL and VUL insurance products.
The Group Protection segment offers principally group non-medical insurance products, including term life, universal life, disability, dental, vision, accident and critical illness insurance to the employer market place through various forms of contributory and non-contributory plans. Its products are marketed primarily through a national distribution system of regional group offices. These offices develop business through employee benefit brokers, third-party administrators and other employee benefit firms.
Other Operations includes investments related to excess capital; other corporate investments; benefit plan net liability; the results of certain disability income business; and debt costs.
Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:
|
· |
Realized gains and losses associated with the following (“excluded realized gain (loss)”): |
|
§ |
Sales or disposals and impairments of securities; |
|
§ |
Changes in the fair value of embedded derivatives within certain reinsurance arrangements; and |
|
§ |
Changes in the fair value of the embedded derivatives of our GLB riders accounted for at fair value, net of the change in the fair value of the derivatives we own to hedge them; |
|
· |
Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders; |
|
· |
Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; |
|
· |
Gains (losses) on early extinguishment of debt; |
|
· |
Losses from the impairment of intangible assets; |
|
· |
Income (loss) from discontinued operations; and |
|
· |
Income (loss) from the initial adoption of new accounting standards. |
42
Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:
|
· |
Excluded realized gain (loss); |
|
· |
Revenue adjustments from the initial adoption of new accounting standards; |
|
· |
Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and |
|
· |
Amortization of deferred gains arising from reserve changes on business sold through reinsurance. |
We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure. Operating revenues and income (loss) from operations do not replace revenues and net income as the GAAP measures of our results of operations.
Segment information (in millions) was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
Annuities |
$ |
141 |
|
$ |
127 |
|
$ |
119 |
|
|
Retirement Plan Services |
|
61 |
|
|
60 |
|
|
57 |
|
|
Life Insurance |
|
637 |
|
|
561 |
|
|
577 |
|
|
Group Protection |
|
103 |
|
|
95 |
|
|
82 |
|
|
Other Operations |
|
2 |
|
|
6 |
|
|
4 |
|
|
Excluded realized gain (loss), pre-tax |
|
(18 |
) |
|
(21 |
) |
|
(23 |
) |
|
Total revenues |
$ |
926 |
|
$ |
828 |
|
$ |
816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations: |
|
|
|
|
|
|
|
|
|
|
Annuities |
$ |
43 |
|
$ |
34 |
|
$ |
24 |
|
|
Retirement Plan Services |
|
3 |
|
|
4 |
|
|
3 |
|
|
Life Insurance |
|
110 |
|
|
61 |
|
|
94 |
|
|
Group Protection |
|
- |
|
|
(1 |
) |
|
(4 |
) |
|
Other Operations |
|
3 |
|
|
7 |
|
|
(8 |
) |
|
Excluded realized gain (loss), after-tax |
|
(12 |
) |
|
(14 |
) |
|
(15 |
) |
|
Net income (loss) |
$ |
147 |
|
$ |
91 |
|
$ |
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Net Investment Income |
|
|
|
|
|
|
|
|
|
|
Annuities |
$ |
54 |
|
$ |
59 |
|
$ |
63 |
|
|
Retirement Plan Services |
|
55 |
|
|
55 |
|
|
52 |
|
|
Life Insurance |
|
301 |
|
|
291 |
|
|
294 |
|
|
Group Protection |
|
9 |
|
|
8 |
|
|
8 |
|
|
Other Operations |
|
2 |
|
|
6 |
|
|
4 |
|
|
Total net investment income |
$ |
421 |
|
$ |
419 |
|
$ |
421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Amortization of DAC and VOBA, Net of Interest |
|
|
|
|
|
|
|
|
|
|
Annuities |
$ |
13 |
|
$ |
13 |
|
$ |
13 |
|
|
Retirement Plan Services |
|
1 |
|
|
- |
|
|
1 |
|
|
Life Insurance |
|
68 |
|
|
77 |
|
|
63 |
|
|
Group Protection |
|
2 |
|
|
3 |
|
|
2 |
|
|
Total amortization of DAC and VOBA, net of interest |
$ |
84 |
|
$ |
93 |
|
$ |
79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Federal Income Tax Expense (Benefit) |
|
|
|
|
|
|
|
|
|
|
Annuities |
$ |
13 |
|
$ |
10 |
|
$ |
7 |
|
|
Retirement Plan Services |
|
- |
|
|
1 |
|
|
1 |
|
|
Life Insurance |
|
58 |
|
|
32 |
|
|
48 |
|
|
Group Protection |
|
- |
|
|
(1 |
) |
|
(1 |
) |
|
Other Operations |
|
4 |
|
|
2 |
|
|
11 |
|
|
Excluded realized gain (loss) |
|
(6 |
) |
|
(7 |
) |
|
(7 |
) |
|
Total federal income tax expense (benefit) |
$ |
69 |
|
$ |
37 |
|
$ |
59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
||||
|
|
|
2013 |
|
|||
|
Assets |
|
|
|
|
|
|
|
Annuities |
$ |
5,273 |
|
$ |
4,651 |
|
|
Retirement Plan Services |
|
1,806 |
|
|
1,674 |
|
|
Life Insurance |
|
7,281 |
|
|
7,010 |
|
|
Group Protection |
|
193 |
|
|
175 |
|
|
Other Operations |
|
91 |
|
|
154 |
|
|
Total assets |
$ |
14,644 |
|
$ |
13,664 |
|
20. Supplemental Disclosures of Cash Flow Data
The following summarizes our supplemental cash flow data (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|||||||
|
|
|
2013 |
|
2012 |
|
||||
|
Income taxes paid (received) |
$ |
52 |
|
$ |
18 |
|
$ |
8 |
|
21. Transactions with Affiliates
The following summarizes transactions with affiliates (in millions) and the associated line item on our Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
|||
|
Assets with affiliates: |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Service agreement receivable |
$ |
81 |
|
$ |
(4 |
) |
Other assets |
||||||||||
|
|
Ceded reinsurance contracts |
|
28 |
|
|
31 |
|
Reinsurance recoverables |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinsurance related embedded |
|||
|
|
Ceded reinsurance contracts |
|
11 |
|
|
8 |
|
derivatives |
||||||||||
|
|
Ceded reinsurance contracts |
|
44 |
|
|
- |
|
Other assets |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities with affiliates: |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Service agreement payable |
|
3 |
|
|
- |
|
Other liabilities |
||||||||||
|
|
Ceded reinsurance contracts |
|
3 |
|
|
43 |
|
Other liabilities |
||||||||||
44
The following summarizes transactions with affiliates (in millions) and the associated line item on our Statements of Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
2012 |
|
|
||||
|
Revenues with affiliates: |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Premiums paid on ceded reinsurance contracts |
$ |
(9 |
) |
$ |
(16 |
) |
$ |
(14 |
) |
Insurance premiums |
|||||||
|
|
Fees for management of general account |
|
(6 |
) |
|
(6 |
) |
|
(6 |
) |
Net investment income |
|||||||
|
|
Realized gains (losses) on ceded reinsurance contracts: |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
GLB reserves embedded derivatives |
|
70 |
|
|
(86 |
) |
|
- |
|
Realized gain (loss) |
||||||
|
|
|
Other gains (losses) |
|
(78 |
) |
|
82 |
|
|
- |
|
Realized gain (loss) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses with affiliates: |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Benefits on assumed (recoveries on ceded) reinsurance |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
contracts |
|
5 |
|
|
- |
|
|
- |
|
Benefits |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions and |
|
|
Service agreement payments |
|
70 |
|
|
74 |
|
|
74 |
|
other expenses |
|||||||
Service Agreement
In accordance with service agreements with LNL and certain of its affiliates for personnel and facilities usage, general management services and investment management services, we receive services from and provide services to affiliated companies and also receive an allocation of corporate overhead from LNC. Corporate overhead expenses are allocated based on specific methodologies for each function. The majority of the expenses are allocated based on the following methodologies: investments by product, assets under management, weighted policies in force, headcount and sales.
Ceded Reinsurance Contracts
We cede business to two affiliated companies, LNL and Lincoln National Reinsurance Company (Barbados) Ltd (“LNBAR”). As discussed in Note 4, we cede the GLB reserves embedded derivatives and the related hedge results to LNL.
45
Lincoln Life & Annuity Flexible Premium Variable Life Account M
M-1
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of assets and liabilities
|
Subaccount |
Investments |
Contract Purchases Due From Lincoln Life & Annuity Company of New York |
Total Assets |
Contract Redemptions Due To Lincoln Life & Annuity Company of New York |
Mortality & Expense Guarantee Charges Payable To Lincoln Life & Annuity Company of New York |
Net Assets |
|||||||||||||||||||||
|
ABVPSF Global Thematic Growth Class A |
$ |
585,755 |
$ |
138 |
$ |
585,893 |
$ |
— |
$ |
8 |
$ |
585,885 |
|||||||||||||||
|
ABVPSF Growth and Income Class A |
848,538 |
— |
848,538 |
— |
14 |
848,524 |
|||||||||||||||||||||
|
ABVPSF International Value Class A |
454,850 |
— |
454,850 |
31 |
5 |
454,814 |
|||||||||||||||||||||
|
ABVPSF Large Cap Growth Class A |
131,818 |
— |
131,818 |
— |
2 |
131,816 |
|||||||||||||||||||||
|
ABVPSF Small/Mid Cap Value Class A |
1,281,871 |
— |
1,281,871 |
— |
18 |
1,281,853 |
|||||||||||||||||||||
|
American Century VP Inflation Protection Class I |
779,105 |
— |
779,105 |
— |
11 |
779,094 |
|||||||||||||||||||||
|
American Funds Global Growth Class 2 |
1,920,723 |
467 |
1,921,190 |
— |
25 |
1,921,165 |
|||||||||||||||||||||
|
American Funds Global Small Capitalization Class 2 |
2,015,739 |
845 |
2,016,584 |
— |
25 |
2,016,559 |
|||||||||||||||||||||
|
American Funds Growth Class 2 |
7,378,734 |
478 |
7,379,212 |
— |
103 |
7,379,109 |
|||||||||||||||||||||
|
American Funds Growth-Income Class 2 |
7,738,572 |
2,395 |
7,740,967 |
— |
95 |
7,740,872 |
|||||||||||||||||||||
|
American Funds International Class 2 |
3,998,383 |
2,521 |
4,000,904 |
— |
51 |
4,000,853 |
|||||||||||||||||||||
|
BlackRock Global Allocation V.I. Class I |
2,966,613 |
277 |
2,966,890 |
— |
43 |
2,966,847 |
|||||||||||||||||||||
|
Delaware VIP Diversified Income Standard Class |
1,914,191 |
— |
1,914,191 |
— |
26 |
1,914,165 |
|||||||||||||||||||||
|
Delaware VIP Emerging Markets Standard Class |
1,895,033 |
— |
1,895,033 |
— |
27 |
1,895,006 |
|||||||||||||||||||||
|
Delaware VIP High Yield Standard Class |
1,241,721 |
— |
1,241,721 |
— |
19 |
1,241,702 |
|||||||||||||||||||||
|
Delaware VIP Limited-Term Diversified Income Standard Class |
1,041,801 |
1,521 |
1,043,322 |
— |
10 |
1,043,312 |
|||||||||||||||||||||
|
Delaware VIP REIT Standard Class |
1,649,742 |
— |
1,649,742 |
— |
23 |
1,649,719 |
|||||||||||||||||||||
|
Delaware VIP Small Cap Value Standard Class |
2,248,703 |
— |
2,248,703 |
— |
30 |
2,248,673 |
|||||||||||||||||||||
|
Delaware VIP Smid Cap Growth Standard Class |
1,440,101 |
— |
1,440,101 |
— |
18 |
1,440,083 |
|||||||||||||||||||||
|
Delaware VIP U.S. Growth Standard Class |
837,028 |
1,027 |
838,055 |
— |
7 |
838,048 |
|||||||||||||||||||||
|
Delaware VIP Value Standard Class |
1,440,031 |
— |
1,440,031 |
— |
23 |
1,440,008 |
|||||||||||||||||||||
|
Deutsche Alternative Asset Allocation VIP Class A |
266,086 |
— |
266,086 |
— |
2 |
266,084 |
|||||||||||||||||||||
|
Deutsche Equity 500 Index VIP Class A |
2,966,251 |
— |
2,966,251 |
— |
42 |
2,966,209 |
|||||||||||||||||||||
|
Deutsche Small Cap Index VIP Class A |
806,848 |
— |
806,848 |
— |
11 |
806,837 |
|||||||||||||||||||||
|
Fidelity VIP Asset Manager Initial Class |
171,988 |
— |
171,988 |
— |
3 |
171,985 |
|||||||||||||||||||||
|
Fidelity VIP Contrafund Service Class |
3,158,000 |
138 |
3,158,138 |
— |
46 |
3,158,092 |
|||||||||||||||||||||
|
Fidelity VIP Equity-Income Initial Class |
116,714 |
— |
116,714 |
— |
2 |
116,712 |
|||||||||||||||||||||
|
Fidelity VIP Equity-Income Service Class |
326,894 |
— |
326,894 |
— |
5 |
326,889 |
|||||||||||||||||||||
|
Fidelity VIP Growth Service Class |
976,036 |
— |
976,036 |
— |
13 |
976,023 |
|||||||||||||||||||||
|
Fidelity VIP Growth Opportunities Service Class |
147,724 |
— |
147,724 |
— |
2 |
147,722 |
|||||||||||||||||||||
|
Fidelity VIP High Income Service Class |
72,030 |
— |
72,030 |
— |
1 |
72,029 |
|||||||||||||||||||||
|
Fidelity VIP Investment Grade Bond Initial Class |
155,163 |
— |
155,163 |
— |
2 |
155,161 |
|||||||||||||||||||||
|
Fidelity VIP Mid Cap Service Class |
1,228,501 |
273 |
1,228,774 |
— |
14 |
1,228,760 |
|||||||||||||||||||||
|
Fidelity VIP Overseas Service Class |
328,615 |
— |
328,615 |
— |
4 |
328,611 |
|||||||||||||||||||||
|
Franklin Income VIP Class 1 |
3,510,881 |
1,197 |
3,512,078 |
— |
43 |
3,512,035 |
|||||||||||||||||||||
|
Franklin Mutual Shares VIP Class 1 |
1,144,966 |
1,010 |
1,145,976 |
— |
11 |
1,145,965 |
|||||||||||||||||||||
|
Franklin Small-Mid Cap Growth VIP Class 1 |
602,098 |
— |
602,098 |
— |
10 |
602,088 |
|||||||||||||||||||||
|
Invesco V.I. American Franchise Series I |
738,080 |
— |
738,080 |
— |
10 |
738,070 |
|||||||||||||||||||||
|
Invesco V.I. Core Equity Series I |
1,241,102 |
— |
1,241,102 |
— |
15 |
1,241,087 |
|||||||||||||||||||||
|
Invesco V.I. Diversified Income Series I |
147,480 |
— |
147,480 |
— |
2 |
147,478 |
|||||||||||||||||||||
|
Invesco V.I. International Growth Series I |
164,091 |
— |
164,091 |
— |
3 |
164,088 |
|||||||||||||||||||||
|
Janus Aspen Balanced Institutional Class |
193,801 |
— |
193,801 |
— |
2 |
193,799 |
|||||||||||||||||||||
|
Janus Aspen Balanced Service Class |
341,181 |
— |
341,181 |
— |
6 |
341,175 |
|||||||||||||||||||||
|
Janus Aspen Enterprise Service Class |
130,341 |
— |
130,341 |
— |
2 |
130,339 |
|||||||||||||||||||||
|
Janus Aspen Global Research Institutional Class |
400,989 |
— |
400,989 |
— |
4 |
400,985 |
|||||||||||||||||||||
|
Janus Aspen Global Research Service Class |
48,349 |
— |
48,349 |
— |
1 |
48,348 |
|||||||||||||||||||||
|
Janus Aspen Global Technology Service Class |
11,588 |
— |
11,588 |
— |
— |
11,588 |
|||||||||||||||||||||
|
LVIP Baron Growth Opportunities Standard Class |
245,125 |
— |
245,125 |
— |
4 |
245,121 |
|||||||||||||||||||||
See accompanying notes.
M-2
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of assets and liabilities (continued)
|
Subaccount |
Investments |
Contract Purchases Due From Lincoln Life & Annuity Company of New York |
Total Assets |
Contract Redemptions Due To Lincoln Life & Annuity Company of New York |
Mortality & Expense Guarantee Charges Payable To Lincoln Life & Annuity Company of New York |
Net Assets |
|||||||||||||||||||||
|
LVIP Baron Growth Opportunities Service Class |
$ |
642,265 |
$ |
— |
$ |
642,265 |
$ |
— |
$ |
8 |
$ |
642,257 |
|||||||||||||||
|
LVIP BlackRock Emerging Markets RPM Standard Class |
186,680 |
— |
186,680 |
— |
1 |
186,679 |
|||||||||||||||||||||
|
LVIP BlackRock Equity Dividend RPM Standard Class |
370,437 |
— |
370,437 |
— |
3 |
370,434 |
|||||||||||||||||||||
|
LVIP BlackRock Inflation Protected Bond Standard Class |
567,355 |
— |
567,355 |
— |
5 |
567,350 |
|||||||||||||||||||||
|
LVIP Capital Growth Standard Class |
480,803 |
— |
480,803 |
35 |
3 |
480,765 |
|||||||||||||||||||||
|
LVIP Clarion Global Real Estate Standard Class |
573,202 |
— |
573,202 |
— |
9 |
573,193 |
|||||||||||||||||||||
|
LVIP Columbia Small-Mid Cap Growth RPM Standard Class |
26,292 |
— |
26,292 |
— |
— |
26,292 |
|||||||||||||||||||||
|
LVIP Delaware Bond Standard Class |
4,438,788 |
3,382 |
4,442,170 |
— |
53 |
4,442,117 |
|||||||||||||||||||||
|
LVIP Delaware Diversified Floating Rate Standard Class |
547,527 |
— |
547,527 |
— |
4 |
547,523 |
|||||||||||||||||||||
|
LVIP Delaware Foundation Aggressive Allocation Standard Class |
137,204 |
— |
137,204 |
— |
2 |
137,202 |
|||||||||||||||||||||
|
LVIP Delaware Growth and Income Standard Class |
222,085 |
— |
222,085 |
— |
3 |
222,082 |
|||||||||||||||||||||
|
LVIP Delaware Social Awareness Standard Class |
371,308 |
— |
371,308 |
— |
6 |
371,302 |
|||||||||||||||||||||
|
LVIP Delaware Special Opportunities Standard Class |
331,636 |
— |
331,636 |
— |
2 |
331,634 |
|||||||||||||||||||||
|
LVIP Dimensional Non-U.S. Equity RPM Standard Class |
211,387 |
— |
211,387 |
— |
3 |
211,384 |
|||||||||||||||||||||
|
LVIP Dimensional U.S. Equity RPM Standard Class |
402,709 |
— |
402,709 |
— |
6 |
402,703 |
|||||||||||||||||||||
|
LVIP Dimensional/Vanguard Total Bond Standard Class |
307,947 |
— |
307,947 |
— |
4 |
307,943 |
|||||||||||||||||||||
|
LVIP Global Income Standard Class |
488,497 |
— |
488,497 |
— |
5 |
488,492 |
|||||||||||||||||||||
|
LVIP JPMorgan High Yield Standard Class |
1,037,015 |
1,042 |
1,038,057 |
— |
13 |
1,038,044 |
|||||||||||||||||||||
|
LVIP JPMorgan Mid Cap Value RPM Standard Class |
297,630 |
— |
297,630 |
— |
3 |
297,627 |
|||||||||||||||||||||
|
LVIP Managed Risk Profile 2020 Standard Class |
76,527 |
— |
76,527 |
— |
1 |
76,526 |
|||||||||||||||||||||
|
LVIP Managed Risk Profile 2030 Standard Class |
199,438 |
— |
199,438 |
— |
3 |
199,435 |
|||||||||||||||||||||
|
LVIP Managed Risk Profile 2040 Standard Class |
140,210 |
— |
140,210 |
— |
2 |
140,208 |
|||||||||||||||||||||
|
LVIP Managed Risk Profile Conservative Standard Class |
1,493,660 |
692 |
1,494,352 |
— |
19 |
1,494,333 |
|||||||||||||||||||||
|
LVIP Managed Risk Profile Growth Standard Class |
3,495,050 |
230 |
3,495,280 |
— |
48 |
3,495,232 |
|||||||||||||||||||||
|
LVIP Managed Risk Profile Moderate Standard Class |
3,604,140 |
— |
3,604,140 |
— |
45 |
3,604,095 |
|||||||||||||||||||||
|
LVIP MFS International Growth Standard Class |
373,132 |
— |
373,132 |
28 |
3 |
373,101 |
|||||||||||||||||||||
|
LVIP MFS Value Standard Class |
1,649,864 |
1,918 |
1,651,782 |
— |
17 |
1,651,765 |
|||||||||||||||||||||
|
LVIP Mid-Cap Value Standard Class |
298,477 |
— |
298,477 |
— |
2 |
298,475 |
|||||||||||||||||||||
|
LVIP Mondrian International Value Standard Class |
837,749 |
— |
837,749 |
— |
11 |
837,738 |
|||||||||||||||||||||
|
LVIP Money Market Standard Class |
3,309,059 |
— |
3,309,059 |
— |
51 |
3,309,008 |
|||||||||||||||||||||
|
LVIP SSgA Bond Index Standard Class |
336,516 |
— |
336,516 |
— |
3 |
336,513 |
|||||||||||||||||||||
|
LVIP SSgA Conservative Index Allocation Standard Class |
140,858 |
— |
140,858 |
— |
1 |
140,857 |
|||||||||||||||||||||
|
LVIP SSgA Conservative Structured Allocation Standard Class |
5,741 |
— |
5,741 |
— |
— |
5,741 |
|||||||||||||||||||||
|
LVIP SSgA Developed International 150 Standard Class |
66,518 |
— |
66,518 |
— |
1 |
66,517 |
|||||||||||||||||||||
See accompanying notes.
M-3
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of assets and liabilities (continued)
|
Subaccount |
Investments |
Contract Purchases Due From Lincoln Life & Annuity Company of New York |
Total Assets |
Contract Redemptions Due To Lincoln Life & Annuity Company of New York |
Mortality & Expense Guarantee Charges Payable To Lincoln Life & Annuity Company of New York |
Net Assets |
|||||||||||||||||||||
|
LVIP SSgA Emerging Markets 100 Standard Class |
$ |
219,699 |
$ |
— |
$ |
219,699 |
$ |
— |
$ |
2 |
$ |
219,697 |
|||||||||||||||
|
LVIP SSgA Global Tactical Allocation RPM Standard Class |
1,009,381 |
— |
1,009,381 |
— |
13 |
1,009,368 |
|||||||||||||||||||||
|
LVIP SSgA International Index Standard Class |
63,491 |
— |
63,491 |
— |
1 |
63,490 |
|||||||||||||||||||||
|
LVIP SSgA Large Cap 100 Standard Class |
438,721 |
— |
438,721 |
— |
3 |
438,718 |
|||||||||||||||||||||
|
LVIP SSgA Moderate Index Allocation Standard Class |
411,973 |
— |
411,973 |
— |
6 |
411,967 |
|||||||||||||||||||||
|
LVIP SSgA Moderate Structured Allocation Standard Class |
635,082 |
— |
635,082 |
— |
5 |
635,077 |
|||||||||||||||||||||
|
LVIP SSgA Moderately Aggressive Index Allocation Standard Class |
235,910 |
— |
235,910 |
— |
3 |
235,907 |
|||||||||||||||||||||
|
LVIP SSgA Moderately Aggressive Structured Allocation Standard Class |
1,036,474 |
230 |
1,036,704 |
— |
12 |
1,036,692 |
|||||||||||||||||||||
|
LVIP SSgA S&P 500 Index Standard Class |
1,748,964 |
— |
1,748,964 |
— |
20 |
1,748,944 |
|||||||||||||||||||||
|
LVIP SSgA Small-Cap Index Standard Class |
267,675 |
— |
267,675 |
— |
4 |
267,671 |
|||||||||||||||||||||
|
LVIP SSgA Small-Mid Cap 200 Standard Class |
221,273 |
— |
221,273 |
— |
2 |
221,271 |
|||||||||||||||||||||
|
LVIP T. Rowe Price Growth Stock Standard Class |
468,187 |
— |
468,187 |
— |
7 |
468,180 |
|||||||||||||||||||||
|
LVIP T. Rowe Price Structured Mid-Cap Growth Standard Class |
237,707 |
— |
237,707 |
— |
3 |
237,704 |
|||||||||||||||||||||
|
LVIP Templeton Growth RPM Standard Class |
160,404 |
— |
160,404 |
— |
2 |
160,402 |
|||||||||||||||||||||
|
LVIP UBS Large Cap Growth RPM Standard Class |
237,630 |
— |
237,630 |
— |
3 |
237,627 |
|||||||||||||||||||||
|
LVIP Vanguard Domestic Equity ETF Standard Class |
77,521 |
— |
77,521 |
— |
1 |
77,520 |
|||||||||||||||||||||
|
LVIP Vanguard International Equity ETF Standard Class |
167,808 |
— |
167,808 |
— |
3 |
167,805 |
|||||||||||||||||||||
|
M Capital Appreciation |
4,542 |
— |
4,542 |
— |
— |
4,542 |
|||||||||||||||||||||
|
M International Equity |
5,960 |
— |
5,960 |
— |
— |
5,960 |
|||||||||||||||||||||
|
M Large Cap Growth |
8,798 |
— |
8,798 |
— |
— |
8,798 |
|||||||||||||||||||||
|
M Large Cap Value |
8,636 |
— |
8,636 |
— |
— |
8,636 |
|||||||||||||||||||||
|
MFS VIT Core Equity Initial Class |
7,034 |
— |
7,034 |
— |
— |
7,034 |
|||||||||||||||||||||
|
MFS VIT Growth Initial Class |
825,037 |
754 |
825,791 |
— |
9 |
825,782 |
|||||||||||||||||||||
|
MFS VIT Total Return Initial Class |
1,402,392 |
— |
1,402,392 |
— |
18 |
1,402,374 |
|||||||||||||||||||||
|
MFS VIT Utilities Initial Class |
1,435,378 |
— |
1,435,378 |
— |
20 |
1,435,358 |
|||||||||||||||||||||
|
NB AMT Large Cap Value I Class |
163,210 |
— |
163,210 |
— |
2 |
163,208 |
|||||||||||||||||||||
|
NB AMT Mid Cap Growth I Class |
1,034,620 |
— |
1,034,620 |
— |
15 |
1,034,605 |
|||||||||||||||||||||
|
NB AMT Mid Cap Intrinsic Value I Class |
456,252 |
— |
456,252 |
— |
5 |
456,247 |
|||||||||||||||||||||
|
PIMCO VIT CommodityRealReturn Strategy Administrative Class |
669,371 |
— |
669,371 |
— |
8 |
669,363 |
|||||||||||||||||||||
|
Putnam VT Global Health Care Class IB |
141,592 |
— |
141,592 |
— |
2 |
141,590 |
|||||||||||||||||||||
|
Putnam VT Growth & Income Class IB |
27,715 |
— |
27,715 |
— |
— |
27,715 |
|||||||||||||||||||||
|
Templeton Foreign VIP Class 1 |
256,309 |
— |
256,309 |
— |
4 |
256,305 |
|||||||||||||||||||||
|
Templeton Foreign VIP Class 2 |
117,922 |
— |
117,922 |
— |
1 |
117,921 |
|||||||||||||||||||||
|
Templeton Global Bond VIP Class 1 |
873,367 |
— |
873,367 |
— |
14 |
873,353 |
|||||||||||||||||||||
|
Templeton Growth VIP Class 1 |
391,572 |
— |
391,572 |
— |
6 |
391,566 |
|||||||||||||||||||||
|
Templeton Growth VIP Class 2 |
37,061 |
— |
37,061 |
— |
— |
37,061 |
|||||||||||||||||||||
See accompanying notes.
M-4
[THIS PAGE INTENTIONALLY LEFT BLANK]
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of operations
Year Ended December 31, 2014
|
Subaccount |
Dividends from Investment Income |
Mortality and Expense Guarantee Charges |
Net Investment Income (Loss) |
Net Realized Gain (Loss) on Investments |
|||||||||||||||
|
ABVPSF Global Thematic Growth Class A |
$ |
— |
$ |
(5,909 |
) |
$ |
(5,909 |
) |
$ |
123,563 |
|||||||||
|
ABVPSF Growth and Income Class A |
10,959 |
(6,535 |
) |
4,424 |
152,868 |
||||||||||||||
|
ABVPSF International Value Class A |
17,207 |
(2,468 |
) |
14,739 |
15,166 |
||||||||||||||
|
ABVPSF Large Cap Growth Class A |
— |
(655 |
) |
(655 |
) |
11,119 |
|||||||||||||
|
ABVPSF Small/Mid Cap Value Class A |
8,207 |
(5,987 |
) |
2,220 |
25,792 |
||||||||||||||
|
American Century VP Inflation Protection Class I |
10,955 |
(4,085 |
) |
6,870 |
(5,421 |
) |
|||||||||||||
|
American Funds Global Growth Class 2 |
23,087 |
(10,259 |
) |
12,828 |
89,357 |
||||||||||||||
|
American Funds Global Small Capitalization Class 2 |
2,510 |
(11,488 |
) |
(8,978 |
) |
216,639 |
|||||||||||||
|
American Funds Growth Class 2 |
57,736 |
(39,986 |
) |
17,750 |
472,414 |
||||||||||||||
|
American Funds Growth-Income Class 2 |
94,798 |
(31,705 |
) |
63,093 |
327,748 |
||||||||||||||
|
American Funds International Class 2 |
57,105 |
(20,698 |
) |
36,407 |
201,784 |
||||||||||||||
|
BlackRock Global Allocation V.I. Class I |
65,396 |
(14,113 |
) |
51,283 |
30,016 |
||||||||||||||
|
ClearBridge Variable Mid Cap Core Class I |
— |
(5 |
) |
(5 |
) |
(311 |
) |
||||||||||||
|
Delaware VIP Diversified Income Standard Class |
40,130 |
(9,398 |
) |
30,732 |
4,612 |
||||||||||||||
|
Delaware VIP Emerging Markets Standard Class |
16,349 |
(12,488 |
) |
3,861 |
133,425 |
||||||||||||||
|
Delaware VIP High Yield Standard Class |
85,026 |
(7,279 |
) |
77,747 |
7,091 |
||||||||||||||
|
Delaware VIP Limited-Term Diversified Income Standard Class |
15,002 |
(3,395 |
) |
11,607 |
(991 |
) |
|||||||||||||
|
Delaware VIP REIT Standard Class |
20,305 |
(7,825 |
) |
12,480 |
81,865 |
||||||||||||||
|
Delaware VIP Small Cap Value Standard Class |
12,029 |
(10,767 |
) |
1,262 |
67,645 |
||||||||||||||
|
Delaware VIP Smid Cap Growth Standard Class |
945 |
(6,654 |
) |
(5,709 |
) |
46,718 |
|||||||||||||
|
Delaware VIP U.S. Growth Standard Class |
1,396 |
(2,646 |
) |
(1,250 |
) |
60,040 |
|||||||||||||
|
Delaware VIP Value Standard Class |
22,890 |
(8,070 |
) |
14,820 |
84,022 |
||||||||||||||
|
Deutsche Alternative Asset Allocation VIP Class A |
2,974 |
(500 |
) |
2,474 |
655 |
||||||||||||||
|
Deutsche Equity 500 Index VIP Class A |
46,924 |
(13,307 |
) |
33,617 |
279,866 |
||||||||||||||
|
Deutsche Small Cap Index VIP Class A |
6,672 |
(3,817 |
) |
2,855 |
115,250 |
||||||||||||||
|
Fidelity VIP Asset Manager Initial Class |
2,608 |
(1,001 |
) |
1,607 |
3,471 |
||||||||||||||
|
Fidelity VIP Contrafund Service Class |
26,429 |
(16,118 |
) |
10,311 |
169,395 |
||||||||||||||
|
Fidelity VIP Equity-Income Initial Class |
3,282 |
(659 |
) |
2,623 |
4,288 |
||||||||||||||
|
Fidelity VIP Equity-Income Service Class |
8,897 |
(1,881 |
) |
7,016 |
5,806 |
||||||||||||||
|
Fidelity VIP Growth Service Class |
896 |
(4,852 |
) |
(3,956 |
) |
60,591 |
|||||||||||||
|
Fidelity VIP Growth Opportunities Service Class |
163 |
(568 |
) |
(405 |
) |
6,686 |
|||||||||||||
|
Fidelity VIP High Income Service Class |
4,226 |
(290 |
) |
3,936 |
318 |
||||||||||||||
|
Fidelity VIP Investment Grade Bond Initial Class |
3,370 |
(910 |
) |
2,460 |
(1,034 |
) |
|||||||||||||
|
Fidelity VIP Mid Cap Service Class |
1,951 |
(4,655 |
) |
(2,704 |
) |
12,043 |
|||||||||||||
|
Fidelity VIP Overseas Service Class |
4,361 |
(1,556 |
) |
2,805 |
2,481 |
||||||||||||||
|
Franklin Income VIP Class 1 |
71,994 |
(10,107 |
) |
61,887 |
14,812 |
||||||||||||||
|
Franklin Mutual Shares VIP Class 1 |
25,359 |
(4,061 |
) |
21,298 |
21,139 |
||||||||||||||
|
Franklin Small-Mid Cap Growth VIP Class 1 |
— |
(3,525 |
) |
(3,525 |
) |
18,665 |
|||||||||||||
|
Invesco V.I. American Franchise Series I |
297 |
(3,528 |
) |
(3,231 |
) |
21,806 |
|||||||||||||
|
Invesco V.I. Core Equity Series I |
10,520 |
(5,335 |
) |
5,185 |
29,632 |
||||||||||||||
|
Invesco V.I. Diversified Income Series I |
7,673 |
(854 |
) |
6,819 |
589 |
||||||||||||||
|
Invesco V.I. International Growth Series I |
2,369 |
(1,286 |
) |
1,083 |
58,387 |
||||||||||||||
|
Janus Aspen Balanced Institutional Class |
3,249 |
(675 |
) |
2,574 |
915 |
||||||||||||||
|
Janus Aspen Balanced Service Class |
5,079 |
(2,075 |
) |
3,004 |
7,332 |
||||||||||||||
|
Janus Aspen Enterprise Service Class |
42 |
(804 |
) |
(762 |
) |
7,178 |
|||||||||||||
|
Janus Aspen Global Research Institutional Class |
4,096 |
(1,332 |
) |
2,764 |
6,953 |
||||||||||||||
|
Janus Aspen Global Research Service Class |
475 |
(393 |
) |
82 |
2,792 |
||||||||||||||
|
Janus Aspen Global Technology Service Class |
— |
(43 |
) |
(43 |
) |
1,069 |
|||||||||||||
|
LVIP Baron Growth Opportunities Standard Class |
1,006 |
(1,275 |
) |
(269 |
) |
1,415 |
|||||||||||||
|
LVIP Baron Growth Opportunities Service Class |
1,151 |
(2,926 |
) |
(1,775 |
) |
25,509 |
|||||||||||||
|
LVIP BlackRock Emerging Markets RPM Standard Class |
2,206 |
(202 |
) |
2,004 |
380 |
||||||||||||||
|
LVIP BlackRock Equity Dividend RPM Standard Class |
7,555 |
(2,296 |
) |
5,259 |
44,791 |
||||||||||||||
|
LVIP BlackRock Inflation Protected Bond Standard Class |
8,121 |
(1,913 |
) |
6,208 |
(2,445 |
) |
|||||||||||||
|
LVIP Capital Growth Standard Class |
821 |
(1,062 |
) |
(241 |
) |
8,142 |
|||||||||||||
|
LVIP Clarion Global Real Estate Standard Class |
15,322 |
(3,191 |
) |
12,131 |
21,212 |
||||||||||||||
|
LVIP Columbia Small-Mid Cap Growth RPM Standard Class |
— |
(102 |
) |
(102 |
) |
217 |
|||||||||||||
|
LVIP Delaware Bond Standard Class |
90,054 |
(19,203 |
) |
70,851 |
15,812 |
||||||||||||||
See accompanying notes.
M-6
|
Subaccount |
Dividends from Net Realized Gain on Investments |
Total Net Realized Gain (Loss) on Investments |
Net Change in Unrealized Appreciation or Depreciation on Investments |
Net Increase (Decrease) in Net Assets Resulting from Operations |
|||||||||||||||
|
ABVPSF Global Thematic Growth Class A |
$ |
— |
$ |
123,563 |
$ |
(70,536 |
) |
$ |
47,118 |
||||||||||
|
ABVPSF Growth and Income Class A |
— |
152,868 |
(79,465 |
) |
77,827 |
||||||||||||||
|
ABVPSF International Value Class A |
— |
15,166 |
(63,936 |
) |
(34,031 |
) |
|||||||||||||
|
ABVPSF Large Cap Growth Class A |
— |
11,119 |
5,704 |
16,168 |
|||||||||||||||
|
ABVPSF Small/Mid Cap Value Class A |
135,363 |
161,155 |
(63,581 |
) |
99,794 |
||||||||||||||
|
American Century VP Inflation Protection Class I |
18,135 |
12,714 |
1,768 |
21,352 |
|||||||||||||||
|
American Funds Global Growth Class 2 |
211,546 |
300,903 |
(280,112 |
) |
33,619 |
||||||||||||||
|
American Funds Global Small Capitalization Class 2 |
11,816 |
228,455 |
(176,029 |
) |
43,448 |
||||||||||||||
|
American Funds Growth Class 2 |
383,836 |
856,250 |
(307,873 |
) |
566,127 |
||||||||||||||
|
American Funds Growth-Income Class 2 |
311,798 |
639,546 |
(22,417 |
) |
680,222 |
||||||||||||||
|
American Funds International Class 2 |
— |
201,784 |
(363,714 |
) |
(125,523 |
) |
|||||||||||||
|
BlackRock Global Allocation V.I. Class I |
225,191 |
255,207 |
(269,471 |
) |
37,019 |
||||||||||||||
|
ClearBridge Variable Mid Cap Core Class I |
— |
(311 |
) |
— |
(316 |
) |
|||||||||||||
|
Delaware VIP Diversified Income Standard Class |
— |
4,612 |
46,678 |
82,022 |
|||||||||||||||
|
Delaware VIP Emerging Markets Standard Class |
9,567 |
142,992 |
(283,327 |
) |
(136,474 |
) |
|||||||||||||
|
Delaware VIP High Yield Standard Class |
20,244 |
27,335 |
(114,730 |
) |
(9,648 |
) |
|||||||||||||
|
Delaware VIP Limited-Term Diversified Income Standard Class |
— |
(991 |
) |
1,320 |
11,936 |
||||||||||||||
|
Delaware VIP REIT Standard Class |
— |
81,865 |
285,684 |
380,029 |
|||||||||||||||
|
Delaware VIP Small Cap Value Standard Class |
185,295 |
252,940 |
(136,964 |
) |
117,238 |
||||||||||||||
|
Delaware VIP Smid Cap Growth Standard Class |
130,734 |
177,452 |
(134,681 |
) |
37,062 |
||||||||||||||
|
Delaware VIP U.S. Growth Standard Class |
43,265 |
103,305 |
(14,689 |
) |
87,366 |
||||||||||||||
|
Delaware VIP Value Standard Class |
— |
84,022 |
78,285 |
177,127 |
|||||||||||||||
|
Deutsche Alternative Asset Allocation VIP Class A |
954 |
1,609 |
223 |
4,306 |
|||||||||||||||
|
Deutsche Equity 500 Index VIP Class A |
84,192 |
364,058 |
(83,199 |
) |
314,476 |
||||||||||||||
|
Deutsche Small Cap Index VIP Class A |
37,999 |
153,249 |
(131,188 |
) |
24,916 |
||||||||||||||
|
Fidelity VIP Asset Manager Initial Class |
8,543 |
12,014 |
(4,068 |
) |
9,553 |
||||||||||||||
|
Fidelity VIP Contrafund Service Class |
61,859 |
231,254 |
78,486 |
320,051 |
|||||||||||||||
|
Fidelity VIP Equity-Income Initial Class |
1,569 |
5,857 |
1,536 |
10,016 |
|||||||||||||||
|
Fidelity VIP Equity-Income Service Class |
4,418 |
10,224 |
6,665 |
23,905 |
|||||||||||||||
|
Fidelity VIP Growth Service Class |
— |
60,591 |
30,614 |
87,249 |
|||||||||||||||
|
Fidelity VIP Growth Opportunities Service Class |
137 |
6,823 |
9,357 |
15,775 |
|||||||||||||||
|
Fidelity VIP High Income Service Class |
— |
318 |
(3,696 |
) |
558 |
||||||||||||||
|
Fidelity VIP Investment Grade Bond Initial Class |
65 |
(969 |
) |
7,034 |
8,525 |
||||||||||||||
|
Fidelity VIP Mid Cap Service Class |
25,847 |
37,890 |
30,457 |
65,643 |
|||||||||||||||
|
Fidelity VIP Overseas Service Class |
77 |
2,558 |
(34,467 |
) |
(29,104 |
) |
|||||||||||||
|
Franklin Income VIP Class 1 |
— |
14,812 |
(74,063 |
) |
2,636 |
||||||||||||||
|
Franklin Mutual Shares VIP Class 1 |
5,862 |
27,001 |
22,903 |
71,202 |
|||||||||||||||
|
Franklin Small-Mid Cap Growth VIP Class 1 |
109,640 |
128,305 |
(83,567 |
) |
41,213 |
||||||||||||||
|
Invesco V.I. American Franchise Series I |
— |
21,806 |
35,156 |
53,731 |
|||||||||||||||
|
Invesco V.I. Core Equity Series I |
5,874 |
35,506 |
48,787 |
89,478 |
|||||||||||||||
|
Invesco V.I. Diversified Income Series I |
— |
589 |
3,876 |
11,284 |
|||||||||||||||
|
Invesco V.I. International Growth Series I |
— |
58,387 |
(52,061 |
) |
7,409 |
||||||||||||||
|
Janus Aspen Balanced Institutional Class |
4,847 |
5,762 |
6,073 |
14,409 |
|||||||||||||||
|
Janus Aspen Balanced Service Class |
8,362 |
15,694 |
6,660 |
25,358 |
|||||||||||||||
|
Janus Aspen Enterprise Service Class |
8,683 |
15,861 |
(1,280 |
) |
13,819 |
||||||||||||||
|
Janus Aspen Global Research Institutional Class |
— |
6,953 |
15,951 |
25,668 |
|||||||||||||||
|
Janus Aspen Global Research Service Class |
— |
2,792 |
236 |
3,110 |
|||||||||||||||
|
Janus Aspen Global Technology Service Class |
726 |
1,795 |
(820 |
) |
932 |
||||||||||||||
|
LVIP Baron Growth Opportunities Standard Class |
1,361 |
2,776 |
8,569 |
11,076 |
|||||||||||||||
|
LVIP Baron Growth Opportunities Service Class |
4,048 |
29,557 |
703 |
28,485 |
|||||||||||||||
|
LVIP BlackRock Emerging Markets RPM Standard Class |
— |
380 |
(15,108 |
) |
(12,724 |
) |
|||||||||||||
|
LVIP BlackRock Equity Dividend RPM Standard Class |
— |
44,791 |
(34,528 |
) |
15,522 |
||||||||||||||
|
LVIP BlackRock Inflation Protected Bond Standard Class |
— |
(2,445 |
) |
13,957 |
17,720 |
||||||||||||||
|
LVIP Capital Growth Standard Class |
735 |
8,877 |
38,642 |
47,278 |
|||||||||||||||
|
LVIP Clarion Global Real Estate Standard Class |
— |
21,212 |
37,781 |
71,124 |
|||||||||||||||
|
LVIP Columbia Small-Mid Cap Growth RPM Standard Class |
— |
217 |
(1,917 |
) |
(1,802 |
) |
|||||||||||||
|
LVIP Delaware Bond Standard Class |
23,639 |
39,451 |
111,749 |
222,051 |
|||||||||||||||
M-7
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of operations (continued)
Year Ended December 31, 2014
|
Subaccount |
Dividends from Investment Income |
Mortality and Expense Guarantee Charges |
Net Investment Income (Loss) |
Net Realized Gain (Loss) on Investments |
|||||||||||||||
|
LVIP Delaware Diversified Floating Rate Standard Class |
$ |
7,615 |
$ |
(1,228 |
) |
$ |
6,387 |
$ |
248 |
||||||||||
|
LVIP Delaware Foundation Aggressive Allocation Standard Class |
3,198 |
(2,455 |
) |
743 |
93,159 |
||||||||||||||
|
LVIP Delaware Growth and Income Standard Class |
4,201 |
(1,333 |
) |
2,868 |
23,941 |
||||||||||||||
|
LVIP Delaware Social Awareness Standard Class |
5,357 |
(2,075 |
) |
3,282 |
10,098 |
||||||||||||||
|
LVIP Delaware Special Opportunities Standard Class |
4,392 |
(663 |
) |
3,729 |
2,241 |
||||||||||||||
|
LVIP Dimensional Non-U.S. Equity RPM Standard Class |
4,590 |
(1,109 |
) |
3,481 |
2,528 |
||||||||||||||
|
LVIP Dimensional U.S. Equity RPM Standard Class |
3,780 |
(1,918 |
) |
1,862 |
5,430 |
||||||||||||||
|
LVIP Dimensional/Vanguard Total Bond Standard Class |
4,901 |
(1,319 |
) |
3,582 |
19 |
||||||||||||||
|
LVIP Global Income Standard Class |
2,851 |
(1,770 |
) |
1,081 |
1,319 |
||||||||||||||
|
LVIP JPMorgan High Yield Standard Class |
44,864 |
(3,502 |
) |
41,362 |
1,377 |
||||||||||||||
|
LVIP JPMorgan Mid Cap Value RPM Standard Class |
2,365 |
(1,055 |
) |
1,310 |
4,346 |
||||||||||||||
|
LVIP Managed Risk Profile 2020 Standard Class |
1,484 |
(503 |
) |
981 |
11,389 |
||||||||||||||
|
LVIP Managed Risk Profile 2030 Standard Class |
4,137 |
(1,243 |
) |
2,894 |
8,366 |
||||||||||||||
|
LVIP Managed Risk Profile 2040 Standard Class |
3,181 |
(742 |
) |
2,439 |
9,486 |
||||||||||||||
|
LVIP Managed Risk Profile Conservative Standard Class |
29,505 |
(3,122 |
) |
26,383 |
1,037 |
||||||||||||||
|
LVIP Managed Risk Profile Growth Standard Class |
70,833 |
(16,233 |
) |
54,600 |
36,405 |
||||||||||||||
|
LVIP Managed Risk Profile Moderate Standard Class |
70,226 |
(15,610 |
) |
54,616 |
44,312 |
||||||||||||||
|
LVIP MFS International Growth Standard Class |
4,008 |
(1,106 |
) |
2,902 |
1,739 |
||||||||||||||
|
LVIP MFS Value Standard Class |
38,254 |
(5,771 |
) |
32,483 |
36,921 |
||||||||||||||
|
LVIP Mid-Cap Value Standard Class |
756 |
(715 |
) |
41 |
4,474 |
||||||||||||||
|
LVIP Mondrian International Value Standard Class |
34,851 |
(4,439 |
) |
30,412 |
25,849 |
||||||||||||||
|
LVIP Money Market Standard Class |
1,455 |
(30,810 |
) |
(29,355 |
) |
— |
|||||||||||||
|
LVIP SSgA Bond Index Standard Class |
6,247 |
(1,302 |
) |
4,945 |
1,816 |
||||||||||||||
|
LVIP SSgA Conservative Index Allocation Standard Class |
2,517 |
(488 |
) |
2,029 |
2,397 |
||||||||||||||
|
LVIP SSgA Conservative Structured Allocation Standard Class |
140 |
(25 |
) |
115 |
18 |
||||||||||||||
|
LVIP SSgA Developed International 150 Standard Class |
2,056 |
(186 |
) |
1,870 |
360 |
||||||||||||||
|
LVIP SSgA Emerging Markets 100 Standard Class |
6,627 |
(909 |
) |
5,718 |
(1,718 |
) |
|||||||||||||
|
LVIP SSgA Global Tactical Allocation RPM Standard Class |
22,634 |
(4,191 |
) |
18,443 |
3,763 |
||||||||||||||
|
LVIP SSgA International Index Standard Class |
1,788 |
(287 |
) |
1,501 |
1,102 |
||||||||||||||
|
LVIP SSgA Large Cap 100 Standard Class |
10,153 |
(816 |
) |
9,337 |
13,674 |
||||||||||||||
|
LVIP SSgA Moderate Index Allocation Standard Class |
8,347 |
(2,061 |
) |
6,286 |
2,518 |
||||||||||||||
|
LVIP SSgA Moderate Structured Allocation Standard Class |
17,183 |
(1,894 |
) |
15,289 |
5,899 |
||||||||||||||
|
LVIP SSgA Moderately Aggressive Index Allocation Standard Class |
5,011 |
(965 |
) |
4,046 |
2,561 |
||||||||||||||
|
LVIP SSgA Moderately Aggressive Structured Allocation Standard Class |
29,908 |
(3,104 |
) |
26,804 |
1,226 |
||||||||||||||
|
LVIP SSgA S&P 500 Index Standard Class |
31,734 |
(6,364 |
) |
25,370 |
42,489 |
||||||||||||||
|
LVIP SSgA Small-Cap Index Standard Class |
2,190 |
(1,179 |
) |
1,011 |
8,402 |
||||||||||||||
|
LVIP SSgA Small-Mid Cap 200 Standard Class |
7,114 |
(577 |
) |
6,537 |
(74 |
) |
|||||||||||||
|
LVIP T. Rowe Price Growth Stock Standard Class |
— |
(2,175 |
) |
(2,175 |
) |
20,742 |
|||||||||||||
|
LVIP T. Rowe Price Structured Mid-Cap Growth Standard Class |
552 |
(2,233 |
) |
(1,681 |
) |
142,860 |
|||||||||||||
|
LVIP Templeton Growth RPM Standard Class |
2,391 |
(769 |
) |
1,622 |
1,535 |
||||||||||||||
|
LVIP UBS Large Cap Growth RPM Standard Class |
— |
(1,153 |
) |
(1,153 |
) |
6,924 |
|||||||||||||
|
LVIP Vanguard Domestic Equity ETF Standard Class |
1,364 |
(319 |
) |
1,045 |
1,149 |
||||||||||||||
|
LVIP Vanguard International Equity ETF Standard Class |
3,442 |
(897 |
) |
2,545 |
433 |
||||||||||||||
|
M Capital Appreciation |
— |
(20 |
) |
(20 |
) |
61 |
|||||||||||||
|
M International Equity |
144 |
(28 |
) |
116 |
21 |
||||||||||||||
|
M Large Cap Growth |
3 |
(39 |
) |
(36 |
) |
261 |
|||||||||||||
|
M Large Cap Value |
98 |
(39 |
) |
59 |
121 |
||||||||||||||
|
MFS VIT Core Equity Initial Class |
53 |
(23 |
) |
30 |
410 |
||||||||||||||
|
MFS VIT Growth Initial Class |
811 |
(3,619 |
) |
(2,808 |
) |
56,738 |
|||||||||||||
|
MFS VIT Total Return Initial Class |
24,576 |
(6,441 |
) |
18,135 |
67,600 |
||||||||||||||
|
MFS VIT Utilities Initial Class |
29,200 |
(7,332 |
) |
21,868 |
39,768 |
||||||||||||||
|
NB AMT Large Cap Value I Class |
1,167 |
(546 |
) |
621 |
2,109 |
||||||||||||||
|
NB AMT Mid Cap Growth I Class |
— |
(5,897 |
) |
(5,897 |
) |
141,562 |
|||||||||||||
|
NB AMT Mid Cap Intrinsic Value I Class |
4,634 |
(2,287 |
) |
2,347 |
49,922 |
||||||||||||||
|
PIMCO VIT CommodityRealReturn Strategy Administrative Class |
2,689 |
(3,311 |
) |
(622 |
) |
(25,652 |
) |
||||||||||||
|
Putnam VT Global Health Care Class IB |
276 |
(677 |
) |
(401 |
) |
1,860 |
|||||||||||||
|
Putnam VT Growth & Income Class IB |
348 |
(118 |
) |
230 |
209 |
||||||||||||||
See accompanying notes.
M-8
|
Subaccount |
Dividends from Net Realized Gain on Investments |
Total Net Realized Gain (Loss) on Investments |
Net Change in Unrealized Appreciation or Depreciation on Investments |
Net Increase (Decrease) in Net Assets Resulting from Operations |
|||||||||||||||
|
LVIP Delaware Diversified Floating Rate Standard Class |
$ |
— |
$ |
248 |
$ |
(6,580 |
) |
$ |
55 |
||||||||||
|
LVIP Delaware Foundation Aggressive Allocation Standard Class |
— |
93,159 |
(74,803 |
) |
19,099 |
||||||||||||||
|
LVIP Delaware Growth and Income Standard Class |
11,117 |
35,058 |
(12,015 |
) |
25,911 |
||||||||||||||
|
LVIP Delaware Social Awareness Standard Class |
17,758 |
27,856 |
15,298 |
46,436 |
|||||||||||||||
|
LVIP Delaware Special Opportunities Standard Class |
12,772 |
15,013 |
(1,508 |
) |
17,234 |
||||||||||||||
|
LVIP Dimensional Non-U.S. Equity RPM Standard Class |
— |
2,528 |
(21,318 |
) |
(15,309 |
) |
|||||||||||||
|
LVIP Dimensional U.S. Equity RPM Standard Class |
— |
5,430 |
6,768 |
14,060 |
|||||||||||||||
|
LVIP Dimensional/Vanguard Total Bond Standard Class |
196 |
215 |
6,368 |
10,165 |
|||||||||||||||
|
LVIP Global Income Standard Class |
676 |
1,995 |
5,813 |
8,889 |
|||||||||||||||
|
LVIP JPMorgan High Yield Standard Class |
3,408 |
4,785 |
(39,046 |
) |
7,101 |
||||||||||||||
|
LVIP JPMorgan Mid Cap Value RPM Standard Class |
— |
4,346 |
13,795 |
19,451 |
|||||||||||||||
|
LVIP Managed Risk Profile 2020 Standard Class |
— |
11,389 |
(9,216 |
) |
3,154 |
||||||||||||||
|
LVIP Managed Risk Profile 2030 Standard Class |
— |
8,366 |
(3,821 |
) |
7,439 |
||||||||||||||
|
LVIP Managed Risk Profile 2040 Standard Class |
— |
9,486 |
(6,745 |
) |
5,180 |
||||||||||||||
|
LVIP Managed Risk Profile Conservative Standard Class |
17,593 |
18,630 |
(10,739 |
) |
34,274 |
||||||||||||||
|
LVIP Managed Risk Profile Growth Standard Class |
— |
36,405 |
(2,374 |
) |
88,631 |
||||||||||||||
|
LVIP Managed Risk Profile Moderate Standard Class |
— |
44,312 |
17,861 |
116,789 |
|||||||||||||||
|
LVIP MFS International Growth Standard Class |
— |
1,739 |
(24,847 |
) |
(20,206 |
) |
|||||||||||||
|
LVIP MFS Value Standard Class |
— |
36,921 |
83,750 |
153,154 |
|||||||||||||||
|
LVIP Mid-Cap Value Standard Class |
— |
4,474 |
11,142 |
15,657 |
|||||||||||||||
|
LVIP Mondrian International Value Standard Class |
— |
25,849 |
(81,572 |
) |
(25,311 |
) |
|||||||||||||
|
LVIP Money Market Standard Class |
— |
— |
— |
(29,355 |
) |
||||||||||||||
|
LVIP SSgA Bond Index Standard Class |
164 |
1,980 |
14,535 |
21,460 |
|||||||||||||||
|
LVIP SSgA Conservative Index Allocation Standard Class |
911 |
3,308 |
622 |
5,959 |
|||||||||||||||
|
LVIP SSgA Conservative Structured Allocation Standard Class |
68 |
86 |
32 |
233 |
|||||||||||||||
|
LVIP SSgA Developed International 150 Standard Class |
1,225 |
1,585 |
(4,344 |
) |
(889 |
) |
|||||||||||||
|
LVIP SSgA Emerging Markets 100 Standard Class |
— |
(1,718 |
) |
(11,913 |
) |
(7,913 |
) |
||||||||||||
|
LVIP SSgA Global Tactical Allocation RPM Standard Class |
— |
3,763 |
7,017 |
29,223 |
|||||||||||||||
|
LVIP SSgA International Index Standard Class |
— |
1,102 |
(6,724 |
) |
(4,121 |
) |
|||||||||||||
|
LVIP SSgA Large Cap 100 Standard Class |
13,684 |
27,358 |
21,979 |
58,674 |
|||||||||||||||
|
LVIP SSgA Moderate Index Allocation Standard Class |
1,311 |
3,829 |
3,846 |
13,961 |
|||||||||||||||
|
LVIP SSgA Moderate Structured Allocation Standard Class |
5,476 |
11,375 |
1,336 |
28,000 |
|||||||||||||||
|
LVIP SSgA Moderately Aggressive Index Allocation Standard Class |
878 |
3,439 |
(753 |
) |
6,732 |
||||||||||||||
|
LVIP SSgA Moderately Aggressive Structured Allocation Standard Class |
11,460 |
12,686 |
(15,397 |
) |
24,093 |
||||||||||||||
|
LVIP SSgA S&P 500 Index Standard Class |
12,986 |
55,475 |
103,900 |
184,745 |
|||||||||||||||
|
LVIP SSgA Small-Cap Index Standard Class |
6,672 |
15,074 |
(5,070 |
) |
11,015 |
||||||||||||||
|
LVIP SSgA Small-Mid Cap 200 Standard Class |
7,939 |
7,865 |
(5,641 |
) |
8,761 |
||||||||||||||
|
LVIP T. Rowe Price Growth Stock Standard Class |
— |
20,742 |
14,628 |
33,195 |
|||||||||||||||
|
LVIP T. Rowe Price Structured Mid-Cap Growth Standard Class |
12,507 |
155,367 |
(123,572 |
) |
30,114 |
||||||||||||||
|
LVIP Templeton Growth RPM Standard Class |
— |
1,535 |
(7,826 |
) |
(4,669 |
) |
|||||||||||||
|
LVIP UBS Large Cap Growth RPM Standard Class |
— |
6,924 |
5,503 |
11,274 |
|||||||||||||||
|
LVIP Vanguard Domestic Equity ETF Standard Class |
235 |
1,384 |
4,036 |
6,465 |
|||||||||||||||
|
LVIP Vanguard International Equity ETF Standard Class |
— |
433 |
(12,743 |
) |
(9,765 |
) |
|||||||||||||
|
M Capital Appreciation |
432 |
493 |
(17 |
) |
456 |
||||||||||||||
|
M International Equity |
— |
21 |
(626 |
) |
(489 |
) |
|||||||||||||
|
M Large Cap Growth |
1,049 |
1,310 |
(512 |
) |
762 |
||||||||||||||
|
M Large Cap Value |
908 |
1,029 |
(418 |
) |
670 |
||||||||||||||
|
MFS VIT Core Equity Initial Class |
— |
410 |
163 |
603 |
|||||||||||||||
|
MFS VIT Growth Initial Class |
51,734 |
108,472 |
(40,970 |
) |
64,694 |
||||||||||||||
|
MFS VIT Total Return Initial Class |
34,206 |
101,806 |
(16,340 |
) |
103,601 |
||||||||||||||
|
MFS VIT Utilities Initial Class |
51,209 |
90,977 |
37,044 |
149,889 |
|||||||||||||||
|
NB AMT Large Cap Value I Class |
— |
2,109 |
11,461 |
14,191 |
|||||||||||||||
|
NB AMT Mid Cap Growth I Class |
410,816 |
552,378 |
(489,883 |
) |
56,598 |
||||||||||||||
|
NB AMT Mid Cap Intrinsic Value I Class |
12,275 |
62,197 |
(9,997 |
) |
54,547 |
||||||||||||||
|
PIMCO VIT CommodityRealReturn Strategy Administrative Class |
— |
(25,652 |
) |
(108,643 |
) |
(134,917 |
) |
||||||||||||
|
Putnam VT Global Health Care Class IB |
10,018 |
11,878 |
16,752 |
28,229 |
|||||||||||||||
|
Putnam VT Growth & Income Class IB |
— |
209 |
2,153 |
2,592 |
|||||||||||||||
M-9
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of operations (continued)
Year Ended December 31, 2014
|
Subaccount |
Dividends from Investment Income |
Mortality and Expense Guarantee Charges |
Net Investment Income (Loss) |
Net Realized Gain (Loss) on Investments |
|||||||||||||||
|
Templeton Foreign VIP Class 1 |
$ |
5,861 |
$ |
(1,554 |
) |
$ |
4,307 |
$ |
4,627 |
||||||||||
|
Templeton Foreign VIP Class 2 |
2,278 |
(471 |
) |
1,807 |
2,029 |
||||||||||||||
|
Templeton Global Bond VIP Class 1 |
43,252 |
(5,197 |
) |
38,055 |
2,912 |
||||||||||||||
|
Templeton Growth VIP Class 1 |
6,658 |
(2,590 |
) |
4,068 |
27,184 |
||||||||||||||
|
Templeton Growth VIP Class 2 |
704 |
(170 |
) |
534 |
5,653 |
||||||||||||||
See accompanying notes.
M-10
|
Subaccount |
Dividends from Net Realized Gain on Investments |
Total Net Realized Gain (Loss) on Investments |
Net Change in Unrealized Appreciation or Depreciation on Investments |
Net Increase (Decrease) in Net Assets Resulting from Operations |
|||||||||||||||
|
Templeton Foreign VIP Class 1 |
$ |
— |
$ |
4,627 |
$ |
(42,137 |
) |
$ |
(33,203 |
) |
|||||||||
|
Templeton Foreign VIP Class 2 |
— |
2,029 |
(18,508 |
) |
(14,672 |
) |
|||||||||||||
|
Templeton Global Bond VIP Class 1 |
— |
2,912 |
(29,100 |
) |
11,867 |
||||||||||||||
|
Templeton Growth VIP Class 1 |
— |
27,184 |
(44,490 |
) |
(13,238 |
) |
|||||||||||||
|
Templeton Growth VIP Class 2 |
— |
5,653 |
(6,901 |
) |
(714 |
) |
|||||||||||||
M-11
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of changes in net assets
Years Ended December 31, 2013 and 2014
|
ABVPSF Global Thematic Growth Class A Subaccount |
ABVPSF Growth and Income Class A Subaccount |
ABVPSF International Value Class A Subaccount |
ABVPSF Large Cap Growth Class A Subaccount |
ABVPSF Small/Mid Cap Value Class A Subaccount |
American Century VP Inflation Protection Class I Subaccount |
American Funds Global Growth Class 2 Subaccount |
|||||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
745,752 |
$ |
770,618 |
$ |
498,588 |
$ |
120,127 |
$ |
752,793 |
$ |
766,031 |
$ |
1,511,241 |
|||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
(2,908 |
) |
6,230 |
33,198 |
(611 |
) |
763 |
8,695 |
14,343 |
||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
3,622 |
16,868 |
1,209 |
10,547 |
90,191 |
30,748 |
28,401 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
192,538 |
254,305 |
81,129 |
30,724 |
188,650 |
(106,484 |
) |
408,373 |
|||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
193,252 |
277,403 |
115,536 |
40,660 |
279,604 |
(67,041 |
) |
451,117 |
|||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
161,128 |
93,920 |
88,371 |
8,406 |
127,830 |
67,810 |
206,080 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(30,890 |
) |
(60,651 |
) |
(41,124 |
) |
(23,236 |
) |
(79,086 |
) |
(164,165 |
) |
(83,761 |
) |
|||||||||||||||||
|
• Contract transfers |
48,655 |
113,511 |
(28,310 |
) |
(8,446 |
) |
23,393 |
91,463 |
15,657 |
||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
178,893 |
146,780 |
18,937 |
(23,276 |
) |
72,137 |
(4,892 |
) |
137,976 |
||||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
372,145 |
424,183 |
134,473 |
17,384 |
351,741 |
(71,933 |
) |
589,093 |
|||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
1,117,897 |
1,194,801 |
633,061 |
137,511 |
1,104,534 |
694,098 |
2,100,334 |
||||||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
(5,909 |
) |
4,424 |
14,739 |
(655 |
) |
2,220 |
6,870 |
12,828 |
||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
123,563 |
152,868 |
15,166 |
11,119 |
161,155 |
12,714 |
300,903 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(70,536 |
) |
(79,465 |
) |
(63,936 |
) |
5,704 |
(63,581 |
) |
1,768 |
(280,112 |
) |
|||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
47,118 |
77,827 |
(34,031 |
) |
16,168 |
99,794 |
21,352 |
33,619 |
|||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
154,252 |
54,593 |
75,143 |
6,204 |
165,354 |
68,369 |
191,883 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(42,815 |
) |
(59,750 |
) |
(41,881 |
) |
(26,927 |
) |
(68,865 |
) |
(51,978 |
) |
(84,903 |
) |
|||||||||||||||||
|
• Contract transfers |
(690,567 |
) |
(418,947 |
) |
(177,478 |
) |
(1,140 |
) |
(18,964 |
) |
47,253 |
(319,768 |
) |
||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(579,130 |
) |
(424,104 |
) |
(144,216 |
) |
(21,863 |
) |
77,525 |
63,644 |
(212,788 |
) |
|||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
(532,012 |
) |
(346,277 |
) |
(178,247 |
) |
(5,695 |
) |
177,319 |
84,996 |
(179,169 |
) |
|||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
585,885 |
$ |
848,524 |
$ |
454,814 |
$ |
131,816 |
$ |
1,281,853 |
$ |
779,094 |
$ |
1,921,165 |
|||||||||||||||||
See accompanying notes.
M-12
|
American Funds Global Small Capitalization Class 2 Subaccount |
American Funds Growth Class 2 Subaccount |
American Funds Growth-Income Class 2 Subaccount |
American Funds International Class 2 Subaccount |
BlackRock Global Allocation V.I. Class I Subaccount |
ClearBridge Variable Mid Cap Core Class I Subaccount |
||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
1,786,756 |
$ |
5,692,315 |
$ |
4,554,797 |
$ |
3,421,511 |
$ |
1,781,916 |
$ |
— |
|||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
7,216 |
27,594 |
47,993 |
33,513 |
16,846 |
— |
|||||||||||||||||||||
|
• Net realized gain (loss) on investments |
21,011 |
181,075 |
148,511 |
50,154 |
109,224 |
— |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
485,282 |
1,487,637 |
1,299,886 |
645,977 |
160,824 |
— |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
513,509 |
1,696,306 |
1,496,390 |
729,644 |
286,894 |
— |
|||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
245,159 |
544,926 |
562,840 |
434,249 |
537,492 |
— |
|||||||||||||||||||||
|
• Contract withdrawals |
(74,588 |
) |
(416,768 |
) |
(415,533 |
) |
(341,917 |
) |
(233,185 |
) |
— |
||||||||||||||||
|
• Contract transfers |
2,549 |
106,769 |
(74,041 |
) |
73,748 |
121,637 |
— |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
173,120 |
234,927 |
73,266 |
166,080 |
425,944 |
— |
|||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
686,629 |
1,931,233 |
1,569,656 |
895,724 |
712,838 |
— |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
2,473,385 |
7,623,548 |
6,124,453 |
4,317,235 |
2,494,754 |
— |
|||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
(8,978 |
) |
17,750 |
63,093 |
36,407 |
51,283 |
(5 |
) |
|||||||||||||||||||
|
• Net realized gain (loss) on investments |
228,455 |
856,250 |
639,546 |
201,784 |
255,207 |
(311 |
) |
||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(176,029 |
) |
(307,873 |
) |
(22,417 |
) |
(363,714 |
) |
(269,471 |
) |
— |
||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
43,448 |
566,127 |
680,222 |
(125,523 |
) |
37,019 |
(316 |
) |
|||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
291,057 |
561,560 |
682,081 |
542,534 |
373,176 |
— |
|||||||||||||||||||||
|
• Contract withdrawals |
(101,051 |
) |
(361,334 |
) |
(403,757 |
) |
(615,843 |
) |
(219,985 |
) |
(48 |
) |
|||||||||||||||
|
• Contract transfers |
(690,280 |
) |
(1,010,792 |
) |
657,873 |
(117,550 |
) |
281,883 |
364 |
||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(500,274 |
) |
(810,566 |
) |
936,197 |
(190,859 |
) |
435,074 |
316 |
||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
(456,826 |
) |
(244,439 |
) |
1,616,419 |
(316,382 |
) |
472,093 |
— |
||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
2,016,559 |
$ |
7,379,109 |
$ |
7,740,872 |
$ |
4,000,853 |
$ |
2,966,847 |
$ |
— |
|||||||||||||||
M-13
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of changes in net assets (continued)
Years Ended December 31, 2013 and 2014
|
Delaware VIP Diversified Income Standard Class Subaccount |
Delaware VIP Emerging Markets Standard Class Subaccount |
Delaware VIP High Yield Standard Class Subaccount |
Delaware VIP Limited-Term Diversified Income Standard Class Subaccount |
Delaware VIP REIT Standard Class Subaccount |
Delaware VIP Small Cap Value Standard Class Subaccount |
Delaware VIP Smid Cap Growth Standard Class Subaccount |
|||||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
1,622,679 |
$ |
2,078,791 |
$ |
1,174,624 |
$ |
598,864 |
$ |
1,240,350 |
$ |
1,481,764 |
$ |
1,015,118 |
|||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
27,472 |
25,043 |
82,335 |
7,368 |
12,688 |
3,163 |
(5,316 |
) |
|||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
27,040 |
23,112 |
13,062 |
(3,137 |
) |
43,335 |
128,475 |
98,558 |
|||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(82,687 |
) |
170,389 |
6,080 |
(13,205 |
) |
(31,118 |
) |
368,929 |
306,498 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
(28,175 |
) |
218,544 |
101,477 |
(8,974 |
) |
24,905 |
500,567 |
399,740 |
||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
258,349 |
358,396 |
99,717 |
244,239 |
185,299 |
225,873 |
95,850 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(216,826 |
) |
(191,938 |
) |
(124,642 |
) |
(59,319 |
) |
(160,848 |
) |
(175,900 |
) |
(105,901 |
) |
|||||||||||||||||
|
• Contract transfers |
19,081 |
22,823 |
21,289 |
54,114 |
50,262 |
144,385 |
57,455 |
||||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
60,604 |
189,281 |
(3,636 |
) |
239,034 |
74,713 |
194,358 |
47,404 |
|||||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
32,429 |
407,825 |
97,841 |
230,060 |
99,618 |
694,925 |
447,144 |
||||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
1,655,108 |
2,486,616 |
1,272,465 |
828,924 |
1,339,968 |
2,176,689 |
1,462,262 |
||||||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
30,732 |
3,861 |
77,747 |
11,607 |
12,480 |
1,262 |
(5,709 |
) |
|||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
4,612 |
142,992 |
27,335 |
(991 |
) |
81,865 |
252,940 |
177,452 |
|||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
46,678 |
(283,327 |
) |
(114,730 |
) |
1,320 |
285,684 |
(136,964 |
) |
(134,681 |
) |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
82,022 |
(136,474 |
) |
(9,648 |
) |
11,936 |
380,029 |
117,238 |
37,062 |
||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
306,012 |
211,608 |
63,596 |
268,543 |
142,408 |
116,988 |
66,053 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(149,987 |
) |
(115,942 |
) |
(69,212 |
) |
(63,020 |
) |
(96,964 |
) |
(141,678 |
) |
(70,826 |
) |
|||||||||||||||||
|
• Contract transfers |
21,010 |
(550,802 |
) |
(15,499 |
) |
(3,071 |
) |
(115,722 |
) |
(20,564 |
) |
(54,468 |
) |
||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
177,035 |
(455,136 |
) |
(21,115 |
) |
202,452 |
(70,278 |
) |
(45,254 |
) |
(59,241 |
) |
|||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
259,057 |
(591,610 |
) |
(30,763 |
) |
214,388 |
309,751 |
71,984 |
(22,179 |
) |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
1,914,165 |
$ |
1,895,006 |
$ |
1,241,702 |
$ |
1,043,312 |
$ |
1,649,719 |
$ |
2,248,673 |
$ |
1,440,083 |
|||||||||||||||||
See accompanying notes.
M-14
|
Delaware VIP U.S. Growth Standard Class Subaccount |
Delaware VIP Value Standard Class Subaccount |
Deutsche Alternative Asset Allocation VIP Class A Subaccount |
Deutsche Equity 500 Index VIP Class A Subaccount |
Deutsche Small Cap Index VIP Class A Subaccount |
Fidelity VIP Asset Manager Initial Class Subaccount |
||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
346,105 |
$ |
997,441 |
$ |
38,889 |
$ |
2,181,059 |
$ |
860,798 |
$ |
186,815 |
|||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
(856 |
) |
13,205 |
601 |
31,311 |
11,414 |
1,818 |
||||||||||||||||||||
|
• Net realized gain (loss) on investments |
50,617 |
74,374 |
87 |
176,459 |
108,439 |
2,156 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
100,829 |
234,438 |
1,495 |
463,849 |
188,414 |
22,127 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
150,590 |
322,017 |
2,183 |
671,619 |
308,267 |
26,101 |
|||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
119,067 |
87,415 |
77,152 |
121,261 |
28,295 |
1,226 |
|||||||||||||||||||||
|
• Contract withdrawals |
(35,960 |
) |
(71,367 |
) |
(13,772 |
) |
(160,015 |
) |
(76,785 |
) |
(25,906 |
) |
|||||||||||||||
|
• Contract transfers |
12,927 |
(57,874 |
) |
55,031 |
(26,779 |
) |
(36,111 |
) |
184 |
||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
96,034 |
(41,826 |
) |
118,411 |
(65,533 |
) |
(84,601 |
) |
(24,496 |
) |
|||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
246,624 |
280,191 |
120,594 |
606,086 |
223,666 |
1,605 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
592,729 |
1,277,632 |
159,483 |
2,787,145 |
1,084,464 |
188,420 |
|||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
(1,250 |
) |
14,820 |
2,474 |
33,617 |
2,855 |
1,607 |
||||||||||||||||||||
|
• Net realized gain (loss) on investments |
103,305 |
84,022 |
1,609 |
364,058 |
153,249 |
12,014 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(14,689 |
) |
78,285 |
223 |
(83,199 |
) |
(131,188 |
) |
(4,068 |
) |
|||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
87,366 |
177,127 |
4,306 |
314,476 |
24,916 |
9,553 |
|||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
147,724 |
84,207 |
120,694 |
111,715 |
48,251 |
1,226 |
|||||||||||||||||||||
|
• Contract withdrawals |
(40,641 |
) |
(103,940 |
) |
(20,234 |
) |
(500,449 |
) |
(428,682 |
) |
(27,257 |
) |
|||||||||||||||
|
• Contract transfers |
50,870 |
4,982 |
1,835 |
253,322 |
77,888 |
43 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
157,953 |
(14,751 |
) |
102,295 |
(135,412 |
) |
(302,543 |
) |
(25,988 |
) |
|||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
245,319 |
162,376 |
106,601 |
179,064 |
(277,627 |
) |
(16,435 |
) |
|||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
838,048 |
$ |
1,440,008 |
$ |
266,084 |
$ |
2,966,209 |
$ |
806,837 |
$ |
171,985 |
|||||||||||||||
M-15
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of changes in net assets (continued)
Years Ended December 31, 2013 and 2014
|
Fidelity VIP Contrafund Service Class Subaccount |
Fidelity VIP Equity-Income Initial Class Subaccount |
Fidelity VIP Equity-Income Service Class Subaccount |
Fidelity VIP Growth Service Class Subaccount |
Fidelity VIP Growth Opportunities Service Class Subaccount |
Fidelity VIP High Income Service Class Subaccount |
Fidelity VIP Investment Grade Bond Initial Class Subaccount |
|||||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
2,085,409 |
$ |
115,897 |
$ |
235,214 |
$ |
595,862 |
$ |
99,565 |
$ |
71,741 |
$ |
197,924 |
|||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
10,564 |
1,906 |
4,871 |
(2,512 |
) |
(245 |
) |
3,623 |
3,207 |
||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
90,914 |
11,847 |
21,988 |
26,899 |
3,431 |
667 |
1,665 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
529,116 |
12,559 |
36,352 |
193,728 |
33,650 |
(591 |
) |
(9,295 |
) |
||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
630,594 |
26,312 |
63,211 |
218,115 |
36,836 |
3,699 |
(4,423 |
) |
|||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
363,477 |
9,446 |
9,116 |
105,941 |
9,017 |
6,063 |
7,122 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(272,528 |
) |
(48,036 |
) |
(12,684 |
) |
(83,407 |
) |
(7,966 |
) |
(7,151 |
) |
(30,641 |
) |
|||||||||||||||||
|
• Contract transfers |
(109,749 |
) |
3,117 |
(2,370 |
) |
8,299 |
(1,925 |
) |
(3,634 |
) |
5,227 |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(18,800 |
) |
(35,473 |
) |
(5,938 |
) |
30,833 |
(874 |
) |
(4,722 |
) |
(18,292 |
) |
||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
611,794 |
(9,161 |
) |
57,273 |
248,948 |
35,962 |
(1,023 |
) |
(22,715 |
) |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
2,697,203 |
106,736 |
292,487 |
844,810 |
135,527 |
70,718 |
175,209 |
||||||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
10,311 |
2,623 |
7,016 |
(3,956 |
) |
(405 |
) |
3,936 |
2,460 |
||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
231,254 |
5,857 |
10,224 |
60,591 |
6,823 |
318 |
(969 |
) |
|||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
78,486 |
1,536 |
6,665 |
30,614 |
9,357 |
(3,696 |
) |
7,034 |
|||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
320,051 |
10,016 |
23,905 |
87,249 |
15,775 |
558 |
8,525 |
||||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
240,970 |
9,453 |
10,871 |
41,147 |
8,528 |
2,583 |
5,292 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(203,487 |
) |
(22,189 |
) |
(9,874 |
) |
(89,216 |
) |
(10,415 |
) |
(5,623 |
) |
(26,305 |
) |
|||||||||||||||||
|
• Contract transfers |
103,355 |
12,696 |
9,500 |
92,033 |
(1,693 |
) |
3,793 |
(7,560 |
) |
||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
140,838 |
(40 |
) |
10,497 |
43,964 |
(3,580 |
) |
753 |
(28,573 |
) |
|||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
460,889 |
9,976 |
34,402 |
131,213 |
12,195 |
1,311 |
(20,048 |
) |
|||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
3,158,092 |
$ |
116,712 |
$ |
326,889 |
$ |
976,023 |
$ |
147,722 |
$ |
72,029 |
$ |
155,161 |
|||||||||||||||||
See accompanying notes.
M-16
|
Fidelity VIP Mid Cap Service Class Subaccount |
Fidelity VIP Overseas Service Class Subaccount |
Franklin Income VIP Class 1 Subaccount |
Franklin Mutual Shares VIP Class 1 Subaccount |
Franklin Small-Mid Cap Growth VIP Class 1 Subaccount |
Invesco V.I. American Franchise Series I Subaccount |
||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
694,304 |
$ |
283,627 |
$ |
889,266 |
$ |
621,800 |
$ |
453,082 |
$ |
533,344 |
|||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
165 |
2,191 |
53,846 |
15,263 |
(3,114 |
) |
(382 |
) |
|||||||||||||||||||
|
• Net realized gain (loss) on investments |
132,399 |
9,972 |
13,362 |
9,638 |
50,138 |
9,416 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
128,513 |
61,837 |
64,440 |
163,593 |
115,648 |
192,898 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
261,077 |
74,000 |
131,648 |
188,494 |
162,672 |
201,932 |
|||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
175,132 |
31,746 |
320,778 |
200,115 |
53,121 |
52,352 |
|||||||||||||||||||||
|
• Contract withdrawals |
(71,238 |
) |
(70,804 |
) |
(191,184 |
) |
(62,595 |
) |
(38,026 |
) |
(82,317 |
) |
|||||||||||||||
|
• Contract transfers |
(26,021 |
) |
(9,035 |
) |
88,180 |
(14,494 |
) |
(52,971 |
) |
(2,248 |
) |
||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
77,873 |
(48,093 |
) |
217,774 |
123,026 |
(37,876 |
) |
(32,213 |
) |
||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
338,950 |
25,907 |
349,422 |
311,520 |
124,796 |
169,719 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
1,033,254 |
309,534 |
1,238,688 |
933,320 |
577,878 |
703,063 |
|||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
(2,704 |
) |
2,805 |
61,887 |
21,298 |
(3,525 |
) |
(3,231 |
) |
||||||||||||||||||
|
• Net realized gain (loss) on investments |
37,890 |
2,558 |
14,812 |
27,001 |
128,305 |
21,806 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
30,457 |
(34,467 |
) |
(74,063 |
) |
22,903 |
(83,567 |
) |
35,156 |
||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
65,643 |
(29,104 |
) |
2,636 |
71,202 |
41,213 |
53,731 |
||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
162,741 |
27,952 |
752,450 |
244,083 |
35,947 |
61,702 |
|||||||||||||||||||||
|
• Contract withdrawals |
(75,690 |
) |
(16,735 |
) |
(187,566 |
) |
(102,284 |
) |
(37,236 |
) |
(74,605 |
) |
|||||||||||||||
|
• Contract transfers |
42,812 |
36,964 |
1,705,827 |
(356 |
) |
(15,714 |
) |
(5,821 |
) |
||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
129,863 |
48,181 |
2,270,711 |
141,443 |
(17,003 |
) |
(18,724 |
) |
|||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
195,506 |
19,077 |
2,273,347 |
212,645 |
24,210 |
35,007 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
1,228,760 |
$ |
328,611 |
$ |
3,512,035 |
$ |
1,145,965 |
$ |
602,088 |
$ |
738,070 |
|||||||||||||||
M-17
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of changes in net assets (continued)
Years Ended December 31, 2013 and 2014
|
Invesco V.I. Core Equity Series I Subaccount |
Invesco V.I. Diversified Income Series I Subaccount |
Invesco V.I. International Growth Series I Subaccount |
Janus Aspen Balanced Institutional Class Subaccount |
Janus Aspen Balanced Service Class Subaccount |
Janus Aspen Enterprise Service Class Subaccount |
Janus Aspen Global Research Institutional Class Subaccount |
|||||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
1,011,781 |
$ |
182,202 |
$ |
454,898 |
$ |
178,488 |
$ |
274,564 |
$ |
104,176 |
$ |
324,451 |
|||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
10,464 |
6,802 |
3,778 |
1,917 |
2,174 |
(294 |
) |
2,843 |
|||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
41,629 |
364 |
97,423 |
10,363 |
19,163 |
4,749 |
7,800 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
225,110 |
(8,148 |
) |
(18,435 |
) |
18,570 |
30,993 |
27,100 |
73,069 |
||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
277,203 |
(982 |
) |
82,766 |
30,850 |
52,330 |
31,555 |
83,712 |
|||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
77,485 |
2,542 |
7,968 |
9,192 |
26,079 |
3,984 |
18,820 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(153,201 |
) |
(25,861 |
) |
(28,981 |
) |
(40,285 |
) |
(25,680 |
) |
(13,051 |
) |
(44,813 |
) |
|||||||||||||||||
|
• Contract transfers |
(15,717 |
) |
948 |
3,176 |
2,276 |
(590 |
) |
(1,490 |
) |
(11,316 |
) |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(91,433 |
) |
(22,371 |
) |
(17,837 |
) |
(28,817 |
) |
(191 |
) |
(10,557 |
) |
(37,309 |
) |
|||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
185,770 |
(23,353 |
) |
64,929 |
2,033 |
52,139 |
20,998 |
46,403 |
|||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
1,197,551 |
158,849 |
519,827 |
180,521 |
326,703 |
125,174 |
370,854 |
||||||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
5,185 |
6,819 |
1,083 |
2,574 |
3,004 |
(762 |
) |
2,764 |
|||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
35,506 |
589 |
58,387 |
5,762 |
15,694 |
15,861 |
6,953 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
48,787 |
3,876 |
(52,061 |
) |
6,073 |
6,660 |
(1,280 |
) |
15,951 |
||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
89,478 |
11,284 |
7,409 |
14,409 |
25,358 |
13,819 |
25,668 |
||||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
64,677 |
2,952 |
5,404 |
9,253 |
19,087 |
4,219 |
23,815 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(100,554 |
) |
(25,897 |
) |
(384,066 |
) |
(11,415 |
) |
(47,566 |
) |
(11,959 |
) |
(24,224 |
) |
|||||||||||||||||
|
• Contract transfers |
(10,065 |
) |
290 |
15,514 |
1,031 |
17,593 |
(914 |
) |
4,872 |
||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(45,942 |
) |
(22,655 |
) |
(363,148 |
) |
(1,131 |
) |
(10,886 |
) |
(8,654 |
) |
4,463 |
||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
43,536 |
(11,371 |
) |
(355,739 |
) |
13,278 |
14,472 |
5,165 |
30,131 |
||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
1,241,087 |
$ |
147,478 |
$ |
164,088 |
$ |
193,799 |
$ |
341,175 |
$ |
130,339 |
$ |
400,985 |
|||||||||||||||||
See accompanying notes.
M-18
|
Janus Aspen Global Research Service Class Subaccount |
Janus Aspen Global Technology Service Class Subaccount |
LVIP Baron Growth Opportunities Standard Class Subaccount |
LVIP Baron Growth Opportunities Service Class Subaccount |
LVIP BlackRock Emerging Markets RPM Standard Class Subaccount |
LVIP BlackRock Equity Dividend RPM Standard Class Subaccount |
||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
72,295 |
$ |
10,917 |
$ |
37,266 |
$ |
369,657 |
$ |
— |
$ |
222,561 |
|||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
85 |
(43 |
) |
202 |
49 |
678 |
3,922 |
||||||||||||||||||||
|
• Net realized gain (loss) on investments |
9,841 |
497 |
18,244 |
67,382 |
103 |
4,656 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
3,598 |
3,125 |
19,157 |
99,288 |
1,470 |
42,828 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
13,524 |
3,579 |
37,603 |
166,719 |
2,251 |
51,406 |
|||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
4,522 |
1,101 |
27,421 |
169,141 |
50,803 |
93,225 |
|||||||||||||||||||||
|
• Contract withdrawals |
(7,170 |
) |
(2,100 |
) |
(7,303 |
) |
(50,300 |
) |
(5,584 |
) |
(32,092 |
) |
|||||||||||||||
|
• Contract transfers |
(33,829 |
) |
(243 |
) |
137,620 |
(26,060 |
) |
48,902 |
79,110 |
||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(36,477 |
) |
(1,242 |
) |
157,738 |
92,781 |
94,121 |
140,243 |
|||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
(22,953 |
) |
2,337 |
195,341 |
259,500 |
96,372 |
191,649 |
||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
49,342 |
13,254 |
232,607 |
629,157 |
96,372 |
414,210 |
|||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
82 |
(43 |
) |
(269 |
) |
(1,775 |
) |
2,004 |
5,259 |
||||||||||||||||||
|
• Net realized gain (loss) on investments |
2,792 |
1,795 |
2,776 |
29,557 |
380 |
44,791 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
236 |
(820 |
) |
8,569 |
703 |
(15,108 |
) |
(34,528 |
) |
||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
3,110 |
932 |
11,076 |
28,485 |
(12,724 |
) |
15,522 |
||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
4,624 |
1,112 |
2,218 |
93,510 |
104,350 |
158,674 |
|||||||||||||||||||||
|
• Contract withdrawals |
(8,391 |
) |
(3,492 |
) |
(8,448 |
) |
(48,499 |
) |
(16,447 |
) |
(32,627 |
) |
|||||||||||||||
|
• Contract transfers |
(337 |
) |
(218 |
) |
7,668 |
(60,396 |
) |
15,128 |
(185,345 |
) |
|||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(4,104 |
) |
(2,598 |
) |
1,438 |
(15,385 |
) |
103,031 |
(59,298 |
) |
|||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
(994 |
) |
(1,666 |
) |
12,514 |
13,100 |
90,307 |
(43,776 |
) |
||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
48,348 |
$ |
11,588 |
$ |
245,121 |
$ |
642,257 |
$ |
186,679 |
$ |
370,434 |
|||||||||||||||
M-19
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of changes in net assets (continued)
Years Ended December 31, 2013 and 2014
|
LVIP BlackRock Inflation Protected Bond Standard Class Subaccount |
LVIP Capital Growth Standard Class Subaccount |
LVIP Clarion Global Real Estate Standard Class Subaccount |
LVIP Columbia Small-Mid Cap Growth RPM Standard Class Subaccount |
LVIP Delaware Bond Standard Class Subaccount |
LVIP Delaware Diversified Floating Rate Standard Class Subaccount |
LVIP Delaware Foundation Aggressive Allocation Standard Class Subaccount |
|||||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
419,076 |
$ |
184,896 |
$ |
379,314 |
$ |
16,915 |
$ |
3,518,769 |
$ |
182,800 |
$ |
374,291 |
|||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
1,220 |
(708 |
) |
(2,517 |
) |
(83 |
) |
52,250 |
1,752 |
5,612 |
|||||||||||||||||||||
|
• Net realized gain (loss) on investments |
11,951 |
3,563 |
19,149 |
697 |
53,395 |
52 |
3,504 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(53,731 |
) |
78,301 |
(8,177 |
) |
3,729 |
(205,455 |
) |
(377 |
) |
68,943 |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
(40,560 |
) |
81,156 |
8,455 |
4,343 |
(99,810 |
) |
1,427 |
78,059 |
||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
145,114 |
118,073 |
85,566 |
5,376 |
575,062 |
87,667 |
47,655 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(47,122 |
) |
(24,647 |
) |
(25,889 |
) |
(1,905 |
) |
(448,868 |
) |
(23,134 |
) |
(23,448 |
) |
|||||||||||||||||
|
• Contract transfers |
93,510 |
(7,367 |
) |
74,995 |
(308 |
) |
256,055 |
82,911 |
86,141 |
||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
191,502 |
86,059 |
134,672 |
3,163 |
382,249 |
147,444 |
110,348 |
||||||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
150,942 |
167,215 |
143,127 |
7,506 |
282,439 |
148,871 |
188,407 |
||||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
570,018 |
352,111 |
522,441 |
24,421 |
3,801,208 |
331,671 |
562,698 |
||||||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
6,208 |
(241 |
) |
12,131 |
(102 |
) |
70,851 |
6,387 |
743 |
||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
(2,445 |
) |
8,877 |
21,212 |
217 |
39,451 |
248 |
93,159 |
|||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
13,957 |
38,642 |
37,781 |
(1,917 |
) |
111,749 |
(6,580 |
) |
(74,803 |
) |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
17,720 |
47,278 |
71,124 |
(1,802 |
) |
222,051 |
55 |
19,099 |
|||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
116,637 |
126,057 |
62,031 |
3,118 |
620,538 |
249,540 |
40,781 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(45,527 |
) |
(30,197 |
) |
(30,254 |
) |
(1,996 |
) |
(301,996 |
) |
(57,633 |
) |
(6,583 |
) |
|||||||||||||||||
|
• Contract transfers |
(91,498 |
) |
(14,484 |
) |
(52,149 |
) |
2,551 |
100,316 |
23,890 |
(478,793 |
) |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(20,388 |
) |
81,376 |
(20,372 |
) |
3,673 |
418,858 |
215,797 |
(444,595 |
) |
|||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
(2,668 |
) |
128,654 |
50,752 |
1,871 |
640,909 |
215,852 |
(425,496 |
) |
||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
567,350 |
$ |
480,765 |
$ |
573,193 |
$ |
26,292 |
$ |
4,442,117 |
$ |
547,523 |
$ |
137,202 |
|||||||||||||||||
See accompanying notes.
M-20
|
LVIP Delaware Growth and Income Standard Class Subaccount |
LVIP Delaware Social Awareness Standard Class Subaccount |
LVIP Delaware Special Opportunities Standard Class Subaccount |
LVIP Dimensional Non-U.S. Equity RPM Standard Class Subaccount |
LVIP Dimensional U.S. Equity RPM Standard Class Subaccount |
LVIP Dimensional/ Vanguard Total Bond Standard Class Subaccount |
||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
162,930 |
$ |
125,761 |
$ |
26,880 |
$ |
5,312 |
$ |
6,110 |
$ |
112,404 |
|||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
2,684 |
2,450 |
1,421 |
2,128 |
1,748 |
2,146 |
|||||||||||||||||||||
|
• Net realized gain (loss) on investments |
10,714 |
7,374 |
11,955 |
411 |
1,385 |
(596 |
) |
||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
39,304 |
47,799 |
13,234 |
7,189 |
23,542 |
(6,922 |
) |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
52,702 |
57,623 |
26,610 |
9,728 |
26,675 |
(5,372 |
) |
||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
10,914 |
30,343 |
73,852 |
6,272 |
9,496 |
145,554 |
|||||||||||||||||||||
|
• Contract withdrawals |
(12,284 |
) |
(9,661 |
) |
(10,860 |
) |
(5,497 |
) |
(9,238 |
) |
(92,001 |
) |
|||||||||||||||
|
• Contract transfers |
21,997 |
129,844 |
53,907 |
131,695 |
233,085 |
65,835 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
20,627 |
150,526 |
116,899 |
132,470 |
233,343 |
119,388 |
|||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
73,329 |
208,149 |
143,509 |
142,198 |
260,018 |
114,016 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
236,259 |
333,910 |
170,389 |
147,510 |
266,128 |
226,420 |
|||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
2,868 |
3,282 |
3,729 |
3,481 |
1,862 |
3,582 |
|||||||||||||||||||||
|
• Net realized gain (loss) on investments |
35,058 |
27,856 |
15,013 |
2,528 |
5,430 |
215 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(12,015 |
) |
15,298 |
(1,508 |
) |
(21,318 |
) |
6,768 |
6,368 |
||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
25,911 |
46,436 |
17,234 |
(15,309 |
) |
14,060 |
10,165 |
||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
23,900 |
15,644 |
166,202 |
44,632 |
86,920 |
29,167 |
|||||||||||||||||||||
|
• Contract withdrawals |
(8,539 |
) |
(11,270 |
) |
(28,692 |
) |
(16,513 |
) |
(28,818 |
) |
(15,976 |
) |
|||||||||||||||
|
• Contract transfers |
(55,449 |
) |
(13,418 |
) |
6,501 |
51,064 |
64,413 |
58,167 |
|||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(40,088 |
) |
(9,044 |
) |
144,011 |
79,183 |
122,515 |
71,358 |
|||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
(14,177 |
) |
37,392 |
161,245 |
63,874 |
136,575 |
81,523 |
||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
222,082 |
$ |
371,302 |
$ |
331,634 |
$ |
211,384 |
$ |
402,703 |
$ |
307,943 |
|||||||||||||||
M-21
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of changes in net assets (continued)
Years Ended December 31, 2013 and 2014
|
LVIP Global Income Standard Class Subaccount |
LVIP JPMorgan High Yield Standard Class Subaccount |
LVIP JPMorgan Mid Cap Value RPM Standard Class Subaccount |
LVIP Managed Risk Profile 2010 Standard Class Subaccount |
LVIP Managed Risk Profile 2020 Standard Class Subaccount |
LVIP Managed Risk Profile 2030 Standard Class Subaccount |
LVIP Managed Risk Profile 2040 Standard Class Subaccount |
|||||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
330,130 |
$ |
257,123 |
$ |
133,916 |
$ |
89,061 |
$ |
283,581 |
$ |
211,413 |
$ |
110,092 |
|||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
(237 |
) |
20,564 |
225 |
(151 |
) |
667 |
1,471 |
695 |
||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
296 |
1,550 |
9,648 |
24,327 |
36,026 |
7,834 |
5,600 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(11,922 |
) |
(500 |
) |
26,140 |
(20,287 |
) |
(17,919 |
) |
16,786 |
8,718 |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
(11,863 |
) |
21,614 |
36,013 |
3,889 |
18,774 |
26,091 |
15,013 |
|||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
179,230 |
171,974 |
18,162 |
— |
1,200 |
14,377 |
3,822 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(59,015 |
) |
(33,078 |
) |
(10,564 |
) |
(93,167 |
) |
(183,642 |
) |
(38,569 |
) |
(5,488 |
) |
|||||||||||||||||
|
• Contract transfers |
71,126 |
73,269 |
56,757 |
217 |
(217 |
) |
507 |
(17,306 |
) |
||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
191,341 |
212,165 |
64,355 |
(92,950 |
) |
(182,659 |
) |
(23,685 |
) |
(18,972 |
) |
||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
179,478 |
233,779 |
100,368 |
(89,061 |
) |
(163,885 |
) |
2,406 |
(3,959 |
) |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
509,608 |
490,902 |
234,284 |
— |
119,696 |
213,819 |
106,133 |
||||||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
1,081 |
41,362 |
1,310 |
— |
981 |
2,894 |
2,439 |
||||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
1,995 |
4,785 |
4,346 |
— |
11,389 |
8,366 |
9,486 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
5,813 |
(39,046 |
) |
13,795 |
— |
(9,216 |
) |
(3,821 |
) |
(6,745 |
) |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
8,889 |
7,101 |
19,451 |
— |
3,154 |
7,439 |
5,180 |
||||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
156,786 |
143,290 |
62,269 |
— |
1,800 |
10,969 |
8,019 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(55,321 |
) |
(40,588 |
) |
(17,406 |
) |
— |
(4,989 |
) |
(33,400 |
) |
(8,635 |
) |
||||||||||||||||||
|
• Contract transfers |
(131,470 |
) |
437,339 |
(971 |
) |
— |
(43,135 |
) |
608 |
29,511 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(30,005 |
) |
540,041 |
43,892 |
— |
(46,324 |
) |
(21,823 |
) |
28,895 |
|||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
(21,116 |
) |
547,142 |
63,343 |
— |
(43,170 |
) |
(14,384 |
) |
34,075 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
488,492 |
$ |
1,038,044 |
$ |
297,627 |
$ |
— |
$ |
76,526 |
$ |
199,435 |
$ |
140,208 |
|||||||||||||||||
See accompanying notes.
M-22
|
LVIP Managed Risk Profile Conservative Standard Class Subaccount |
LVIP Managed Risk Profile Growth Standard Class Subaccount |
LVIP Managed Risk Profile Moderate Standard Class Subaccount |
LVIP MFS International Growth Standard Class Subaccount |
LVIP MFS Value Standard Class Subaccount |
LVIP Mid-Cap Value Standard Class Subaccount |
||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
214,294 |
$ |
2,467,361 |
$ |
2,619,721 |
$ |
168,047 |
$ |
787,134 |
$ |
90,333 |
|||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
4,461 |
34,902 |
37,865 |
1,305 |
15,965 |
(329 |
) |
||||||||||||||||||||
|
• Net realized gain (loss) on investments |
4,361 |
33,672 |
49,474 |
1,449 |
37,284 |
17,130 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
12,184 |
266,030 |
213,432 |
24,734 |
265,654 |
22,219 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
21,006 |
334,604 |
300,771 |
27,488 |
318,903 |
39,020 |
|||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
44,462 |
335,305 |
442,944 |
65,482 |
386,452 |
42,247 |
|||||||||||||||||||||
|
• Contract withdrawals |
(13,653 |
) |
(208,750 |
) |
(335,361 |
) |
(24,512 |
) |
(87,742 |
) |
(15,045 |
) |
|||||||||||||||
|
• Contract transfers |
4,516 |
13,387 |
45,058 |
45,108 |
(68,220 |
) |
6,448 |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
35,325 |
139,942 |
152,641 |
86,078 |
230,490 |
33,650 |
|||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
56,331 |
474,546 |
453,412 |
113,566 |
549,393 |
72,670 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
270,625 |
2,941,907 |
3,073,133 |
281,613 |
1,336,527 |
163,003 |
|||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
26,383 |
54,600 |
54,616 |
2,902 |
32,483 |
41 |
|||||||||||||||||||||
|
• Net realized gain (loss) on investments |
18,630 |
36,405 |
44,312 |
1,739 |
36,921 |
4,474 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(10,739 |
) |
(2,374 |
) |
17,861 |
(24,847 |
) |
83,750 |
11,142 |
||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
34,274 |
88,631 |
116,789 |
(20,206 |
) |
153,154 |
15,657 |
||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
69,529 |
310,573 |
442,842 |
113,758 |
332,291 |
38,865 |
|||||||||||||||||||||
|
• Contract withdrawals |
(25,413 |
) |
(215,003 |
) |
(278,477 |
) |
(30,544 |
) |
(108,659 |
) |
(14,013 |
) |
|||||||||||||||
|
• Contract transfers |
1,145,318 |
369,124 |
249,808 |
28,480 |
(61,548 |
) |
94,963 |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
1,189,434 |
464,694 |
414,173 |
111,694 |
162,084 |
119,815 |
|||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
1,223,708 |
553,325 |
530,962 |
91,488 |
315,238 |
135,472 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
1,494,333 |
$ |
3,495,232 |
$ |
3,604,095 |
$ |
373,101 |
$ |
1,651,765 |
$ |
298,475 |
|||||||||||||||
M-23
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of changes in net assets (continued)
Years Ended December 31, 2013 and 2014
|
LVIP Mondrian International Value Standard Class Subaccount |
LVIP Money Market Standard Class Subaccount |
LVIP SSgA Bond Index Standard Class Subaccount |
LVIP SSgA Conservative Index Allocation Standard Class Subaccount |
LVIP SSgA Conservative Structured Allocation Standard Class Subaccount |
LVIP SSgA Developed International 150 Standard Class Subaccount |
LVIP SSgA Emerging Markets 100 Standard Class Subaccount |
|||||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
672,952 |
$ |
7,230,080 |
$ |
387,017 |
$ |
315,182 |
$ |
1,047 |
$ |
18,024 |
$ |
143,247 |
|||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
14,188 |
(43,386 |
) |
6,856 |
1,368 |
66 |
588 |
3,760 |
|||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
6,115 |
— |
636 |
6,344 |
7 |
1,224 |
(5,748 |
) |
|||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
118,711 |
— |
(19,540 |
) |
7,253 |
100 |
2,169 |
(1,009 |
) |
||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
139,014 |
(43,386 |
) |
(12,048 |
) |
14,965 |
173 |
3,981 |
(2,997 |
) |
|||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
55,430 |
3,929,302 |
93,242 |
1,435 |
3,541 |
21,524 |
107,947 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(81,762 |
) |
(946,030 |
) |
(63,478 |
) |
(15,498 |
) |
(855 |
) |
(13,984 |
) |
(53,797 |
) |
|||||||||||||||||
|
• Contract transfers |
7,379 |
(2,377,604 |
) |
(454 |
) |
(142,640 |
) |
87 |
196 |
8,255 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(18,953 |
) |
605,668 |
29,310 |
(156,703 |
) |
2,773 |
7,736 |
62,405 |
||||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
120,061 |
562,282 |
17,262 |
(141,738 |
) |
2,946 |
11,717 |
59,408 |
|||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
793,013 |
7,792,362 |
404,279 |
173,444 |
3,993 |
29,741 |
202,655 |
||||||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
30,412 |
(29,355 |
) |
4,945 |
2,029 |
115 |
1,870 |
5,718 |
|||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
25,849 |
— |
1,980 |
3,308 |
86 |
1,585 |
(1,718 |
) |
|||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(81,572 |
) |
— |
14,535 |
622 |
32 |
(4,344 |
) |
(11,913 |
) |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
(25,311 |
) |
(29,355 |
) |
21,460 |
5,959 |
233 |
(889 |
) |
(7,913 |
) |
||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
79,112 |
526,272 |
31,235 |
223 |
2,430 |
24,635 |
30,202 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(43,415 |
) |
(4,495,155 |
) |
(32,611 |
) |
(8,588 |
) |
(974 |
) |
(5,093 |
) |
(11,661 |
) |
|||||||||||||||||
|
• Contract transfers |
34,339 |
(485,116 |
) |
(87,850 |
) |
(30,181 |
) |
59 |
18,123 |
6,414 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
70,036 |
(4,453,999 |
) |
(89,226 |
) |
(38,546 |
) |
1,515 |
37,665 |
24,955 |
|||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
44,725 |
(4,483,354 |
) |
(67,766 |
) |
(32,587 |
) |
1,748 |
36,776 |
17,042 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
837,738 |
$ |
3,309,008 |
$ |
336,513 |
$ |
140,857 |
$ |
5,741 |
$ |
66,517 |
$ |
219,697 |
|||||||||||||||||
See accompanying notes.
M-24
|
LVIP SSgA Global Tactical Allocation RPM Standard Class Subaccount |
LVIP SSgA International Index Standard Class Subaccount |
LVIP SSgA Large Cap 100 Standard Class Subaccount |
LVIP SSgA Moderate Index Allocation Standard Class Subaccount |
LVIP SSgA Moderate Structured Allocation Standard Class Subaccount |
LVIP SSgA Moderately Aggressive Index Allocation Standard Class Subaccount |
||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
1,055,708 |
$ |
18,075 |
$ |
233,869 |
$ |
98,667 |
$ |
270,328 |
$ |
87,279 |
|||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
11,307 |
736 |
6,909 |
3,653 |
9,606 |
2,103 |
|||||||||||||||||||||
|
• Net realized gain (loss) on investments |
33,124 |
268 |
23,793 |
1,170 |
9,387 |
1,369 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
34,934 |
4,646 |
58,020 |
17,680 |
26,292 |
15,482 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
79,365 |
5,650 |
88,722 |
22,503 |
45,285 |
18,954 |
|||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
109,067 |
8,989 |
72,715 |
218,392 |
198,589 |
85,730 |
|||||||||||||||||||||
|
• Contract withdrawals |
(50,569 |
) |
(2,526 |
) |
(24,214 |
) |
(42,167 |
) |
(51,472 |
) |
(25,860 |
) |
|||||||||||||||
|
• Contract transfers |
(408,569 |
) |
26,732 |
655 |
25,135 |
17,632 |
21,398 |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(350,071 |
) |
33,195 |
49,156 |
201,360 |
164,749 |
81,268 |
||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
(270,706 |
) |
38,845 |
137,878 |
223,863 |
210,034 |
100,222 |
||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
785,002 |
56,920 |
371,747 |
322,530 |
480,362 |
187,501 |
|||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
18,443 |
1,501 |
9,337 |
6,286 |
15,289 |
4,046 |
|||||||||||||||||||||
|
• Net realized gain (loss) on investments |
3,763 |
1,102 |
27,358 |
3,829 |
11,375 |
3,439 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
7,017 |
(6,724 |
) |
21,979 |
3,846 |
1,336 |
(753 |
) |
|||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
29,223 |
(4,121 |
) |
58,674 |
13,961 |
28,000 |
6,732 |
||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
121,751 |
11,616 |
63,751 |
112,858 |
212,432 |
60,988 |
|||||||||||||||||||||
|
• Contract withdrawals |
(54,082 |
) |
(3,679 |
) |
(29,074 |
) |
(49,210 |
) |
(86,661 |
) |
(28,977 |
) |
|||||||||||||||
|
• Contract transfers |
127,474 |
2,754 |
(26,380 |
) |
11,828 |
944 |
9,663 |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
195,143 |
10,691 |
8,297 |
75,476 |
126,715 |
41,674 |
|||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
224,366 |
6,570 |
66,971 |
89,437 |
154,715 |
48,406 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
1,009,368 |
$ |
63,490 |
$ |
438,718 |
$ |
411,967 |
$ |
635,077 |
$ |
235,907 |
|||||||||||||||
M-25
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of changes in net assets (continued)
Years Ended December 31, 2013 and 2014
|
LVIP SSgA Moderately Aggressive Structured Allocation Standard Class Subaccount |
LVIP SSgA S&P 500 Index Standard Class Subaccount |
LVIP SSgA Small-Cap Index Standard Class Subaccount |
LVIP SSgA Small-Mid Cap 200 Standard Class Subaccount |
LVIP T. Rowe Price Growth Stock Standard Class Subaccount |
LVIP T. Rowe Price Structured Mid-Cap Growth Standard Class Subaccount |
LVIP Templeton Growth RPM Standard Class Subaccount |
|||||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
25,460 |
$ |
676,593 |
$ |
96,282 |
$ |
36,590 |
$ |
267,443 |
$ |
342,524 |
$ |
75,482 |
|||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
10,486 |
15,409 |
597 |
3,658 |
(1,705 |
) |
(2,578 |
) |
1,034 |
||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
798 |
26,571 |
15,464 |
11,278 |
11,009 |
13,138 |
1,500 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
13,342 |
217,498 |
35,289 |
8,377 |
94,399 |
121,148 |
15,752 |
||||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
24,626 |
259,478 |
51,350 |
23,313 |
103,703 |
131,708 |
18,286 |
||||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
333,925 |
304,054 |
71,018 |
97,089 |
42,024 |
117,885 |
42,658 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(32,908 |
) |
(100,323 |
) |
(14,704 |
) |
(10,598 |
) |
(22,980 |
) |
(16,526 |
) |
(14,542 |
) |
|||||||||||||||||
|
• Contract transfers |
131,039 |
234,929 |
7,688 |
15,292 |
(18,136 |
) |
942 |
6,296 |
|||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
432,056 |
438,660 |
64,002 |
101,783 |
908 |
102,301 |
34,412 |
||||||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
456,682 |
698,138 |
115,352 |
125,096 |
104,611 |
234,009 |
52,698 |
||||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
482,142 |
1,374,731 |
211,634 |
161,686 |
372,054 |
576,533 |
128,180 |
||||||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
26,804 |
25,370 |
1,011 |
6,537 |
(2,175 |
) |
(1,681 |
) |
1,622 |
||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
12,686 |
55,475 |
15,074 |
7,865 |
20,742 |
155,367 |
1,535 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(15,397 |
) |
103,900 |
(5,070 |
) |
(5,641 |
) |
14,628 |
(123,572 |
) |
(7,826 |
) |
|||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
24,093 |
184,745 |
11,015 |
8,761 |
33,195 |
30,114 |
(4,669 |
) |
|||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
198,669 |
222,460 |
53,736 |
56,542 |
37,654 |
34,367 |
44,191 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(36,356 |
) |
(96,268 |
) |
(16,311 |
) |
(12,748 |
) |
(17,785 |
) |
(20,097 |
) |
(14,756 |
) |
|||||||||||||||||
|
• Contract transfers |
368,144 |
63,276 |
7,597 |
7,030 |
43,062 |
(383,213 |
) |
7,456 |
|||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
530,457 |
189,468 |
45,022 |
50,824 |
62,931 |
(368,943 |
) |
36,891 |
|||||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
554,550 |
374,213 |
56,037 |
59,585 |
96,126 |
(338,829 |
) |
32,222 |
|||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
1,036,692 |
$ |
1,748,944 |
$ |
267,671 |
$ |
221,271 |
$ |
468,180 |
$ |
237,704 |
$ |
160,402 |
|||||||||||||||||
See accompanying notes.
M-26
|
LVIP UBS Large Cap Growth RPM Standard Class Subaccount |
LVIP Vanguard Domestic Equity ETF Standard Class Subaccount |
LVIP Vanguard International Equity ETF Standard Class Subaccount |
M Capital Appreciation Subaccount |
M International Equity Subaccount |
M Large Cap Growth Subaccount |
||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
182,286 |
$ |
9,699 |
$ |
9,791 |
$ |
2,650 |
$ |
4,017 |
$ |
4,996 |
|||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
(1,012 |
) |
369 |
2,390 |
(16 |
) |
91 |
4 |
|||||||||||||||||||
|
• Net realized gain (loss) on investments |
4,299 |
425 |
662 |
408 |
65 |
517 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
42,741 |
5,861 |
10,297 |
608 |
583 |
1,396 |
|||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
46,028 |
6,655 |
13,349 |
1,000 |
739 |
1,917 |
|||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
15,068 |
30,489 |
137,656 |
581 |
871 |
1,162 |
|||||||||||||||||||||
|
• Contract withdrawals |
(15,792 |
) |
(5,564 |
) |
(13,625 |
) |
(191 |
) |
(280 |
) |
(375 |
) |
|||||||||||||||
|
• Contract transfers |
3,413 |
8,193 |
(700 |
) |
(461 |
) |
(187 |
) |
(215 |
) |
|||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
2,689 |
33,118 |
123,331 |
(71 |
) |
404 |
572 |
||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
48,717 |
39,773 |
136,680 |
929 |
1,143 |
2,489 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
231,003 |
49,472 |
146,471 |
3,579 |
5,160 |
7,485 |
|||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
(1,153 |
) |
1,045 |
2,545 |
(20 |
) |
116 |
(36 |
) |
||||||||||||||||||
|
• Net realized gain (loss) on investments |
6,924 |
1,384 |
433 |
493 |
21 |
1,310 |
|||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
5,503 |
4,036 |
(12,743 |
) |
(17 |
) |
(626 |
) |
(512 |
) |
|||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
11,274 |
6,465 |
(9,765 |
) |
456 |
(489 |
) |
762 |
|||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
12,271 |
19,835 |
14,034 |
581 |
872 |
1,164 |
|||||||||||||||||||||
|
• Contract withdrawals |
(16,657 |
) |
(6,865 |
) |
(7,106 |
) |
(188 |
) |
(275 |
) |
(378 |
) |
|||||||||||||||
|
• Contract transfers |
(264 |
) |
8,613 |
24,171 |
114 |
692 |
(235 |
) |
|||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(4,650 |
) |
21,583 |
31,099 |
507 |
1,289 |
551 |
||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
6,624 |
28,048 |
21,334 |
963 |
800 |
1,313 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
237,627 |
$ |
77,520 |
$ |
167,805 |
$ |
4,542 |
$ |
5,960 |
$ |
8,798 |
|||||||||||||||
M-27
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of changes in net assets (continued)
Years Ended December 31, 2013 and 2014
|
M Large Cap Value Subaccount |
MFS VIT Core Equity Initial Class Subaccount |
MFS VIT Growth Initial Class Subaccount |
MFS VIT Total Return Initial Class Subaccount |
MFS VIT Utilities Initial Class Subaccount |
NB AMT Large Cap Value I Class Subaccount |
NB AMT Mid Cap Growth I Class Subaccount |
|||||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
5,093 |
$ |
1,739 |
$ |
645,320 |
$ |
1,173,837 |
$ |
916,299 |
$ |
123,153 |
$ |
1,180,974 |
|||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
135 |
26 |
(1,571 |
) |
15,823 |
18,758 |
1,148 |
(6,683 |
) |
||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
736 |
28 |
46,919 |
33,355 |
44,175 |
2,421 |
217,675 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
888 |
804 |
159,836 |
162,286 |
126,398 |
33,541 |
149,389 |
||||||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
1,759 |
858 |
205,184 |
211,464 |
189,331 |
37,110 |
360,381 |
||||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
1,162 |
2,177 |
67,622 |
104,124 |
124,695 |
1,165 |
49,245 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(377 |
) |
(281 |
) |
(62,152 |
) |
(181,885 |
) |
(100,513 |
) |
(5,494 |
) |
(85,317 |
) |
|||||||||||||||||
|
• Contract transfers |
(372 |
) |
— |
(41,244 |
) |
52,795 |
96,907 |
(2,960 |
) |
(70,797 |
) |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
413 |
1,896 |
(35,774 |
) |
(24,966 |
) |
121,089 |
(7,289 |
) |
(106,869 |
) |
||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
2,172 |
2,754 |
169,410 |
186,498 |
310,420 |
29,821 |
253,512 |
||||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
7,265 |
4,493 |
814,730 |
1,360,335 |
1,226,719 |
152,974 |
1,434,486 |
||||||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||||||
|
• Net investment income (loss) |
59 |
30 |
(2,808 |
) |
18,135 |
21,868 |
621 |
(5,897 |
) |
||||||||||||||||||||||
|
• Net realized gain (loss) on investments |
1,029 |
410 |
108,472 |
101,806 |
90,977 |
2,109 |
552,378 |
||||||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(418 |
) |
163 |
(40,970 |
) |
(16,340 |
) |
37,044 |
11,461 |
(489,883 |
) |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
670 |
603 |
64,694 |
103,601 |
149,889 |
14,191 |
56,598 |
||||||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||||||
|
• Contract purchases |
1,162 |
2,298 |
116,396 |
115,928 |
207,995 |
915 |
60,528 |
||||||||||||||||||||||||
|
• Contract withdrawals |
(375 |
) |
(360 |
) |
(82,053 |
) |
(161,619 |
) |
(123,099 |
) |
(5,675 |
) |
(515,529 |
) |
|||||||||||||||||
|
• Contract transfers |
(86 |
) |
— |
(87,985 |
) |
(15,871 |
) |
(26,146 |
) |
803 |
(1,478 |
) |
|||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
701 |
1,938 |
(53,642 |
) |
(61,562 |
) |
58,750 |
(3,957 |
) |
(456,479 |
) |
||||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
1,371 |
2,541 |
11,052 |
42,039 |
208,639 |
10,234 |
(399,881 |
) |
|||||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
8,636 |
$ |
7,034 |
$ |
825,782 |
$ |
1,402,374 |
$ |
1,435,358 |
$ |
163,208 |
$ |
1,034,605 |
|||||||||||||||||
See accompanying notes.
M-28
|
NB AMT Mid Cap Intrinsic Value I Class Subaccount |
PIMCO VIT Commodity- RealReturn Strategy Administrative Class Subaccount |
Putnam VT Global Health Care Class IB Subaccount |
Putnam VT Growth & Income Class IB Subaccount |
Templeton Foreign VIP Class 1 Subaccount |
Templeton Foreign VIP Class 2 Subaccount |
||||||||||||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
329,722 |
$ |
506,945 |
$ |
71,972 |
$ |
19,070 |
$ |
239,887 |
$ |
120,369 |
|||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
2,078 |
6,743 |
440 |
262 |
5,116 |
2,498 |
|||||||||||||||||||||
|
• Net realized gain (loss) on investments |
11,182 |
(9,177 |
) |
3,767 |
109 |
2,773 |
2,920 |
||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
96,809 |
(96,043 |
) |
25,548 |
6,289 |
45,543 |
20,169 |
||||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
110,069 |
(98,477 |
) |
29,755 |
6,660 |
53,432 |
25,587 |
||||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
23,942 |
224,565 |
5,354 |
271 |
19,372 |
9,327 |
|||||||||||||||||||||
|
• Contract withdrawals |
(31,797 |
) |
(68,905 |
) |
(3,732 |
) |
(512 |
) |
(22,138 |
) |
(19,082 |
) |
|||||||||||||||
|
• Contract transfers |
(21,689 |
) |
185,373 |
(1,205 |
) |
— |
(1,050 |
) |
(7,618 |
) |
|||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(29,544 |
) |
341,033 |
417 |
(241 |
) |
(3,816 |
) |
(17,373 |
) |
|||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
80,525 |
242,556 |
30,172 |
6,419 |
49,616 |
8,214 |
|||||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
410,247 |
749,501 |
102,144 |
25,489 |
289,503 |
128,583 |
|||||||||||||||||||||
|
Changes From Operations: |
|||||||||||||||||||||||||||
|
• Net investment income (loss) |
2,347 |
(622 |
) |
(401 |
) |
230 |
4,307 |
1,807 |
|||||||||||||||||||
|
• Net realized gain (loss) on investments |
62,197 |
(25,652 |
) |
11,878 |
209 |
4,627 |
2,029 |
||||||||||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(9,997 |
) |
(108,643 |
) |
16,752 |
2,153 |
(42,137 |
) |
(18,508 |
) |
|||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
54,547 |
(134,917 |
) |
28,229 |
2,592 |
(33,203 |
) |
(14,672 |
) |
||||||||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||||||||||||||
|
• Contract purchases |
27,712 |
133,409 |
4,437 |
184 |
18,068 |
11,102 |
|||||||||||||||||||||
|
• Contract withdrawals |
(24,219 |
) |
(55,293 |
) |
(4,391 |
) |
(550 |
) |
(23,120 |
) |
(14,030 |
) |
|||||||||||||||
|
• Contract transfers |
(12,040 |
) |
(23,337 |
) |
11,171 |
— |
5,057 |
6,938 |
|||||||||||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(8,547 |
) |
54,779 |
11,217 |
(366 |
) |
5 |
4,010 |
|||||||||||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
46,000 |
(80,138 |
) |
39,446 |
2,226 |
(33,198 |
) |
(10,662 |
) |
||||||||||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
456,247 |
$ |
669,363 |
$ |
141,590 |
$ |
27,715 |
$ |
256,305 |
$ |
117,921 |
|||||||||||||||
M-29
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Statements of changes in net assets (continued)
Years Ended December 31, 2013 and 2014
|
Templeton Global Bond VIP Class 1 Subaccount |
Templeton Growth VIP Class 1 Subaccount |
Templeton Growth VIP Class 2 Subaccount |
|||||||||||||
|
NET ASSETS AT JANUARY 1, 2013 |
$ |
871,651 |
$ |
341,147 |
$ |
60,749 |
|||||||||
|
Changes From Operations: |
|||||||||||||||
|
• Net investment income (loss) |
34,135 |
8,527 |
1,121 |
||||||||||||
|
• Net realized gain (loss) on investments |
24,151 |
11,272 |
5,474 |
||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(46,573 |
) |
80,437 |
6,324 |
|||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
11,713 |
100,236 |
12,919 |
||||||||||||
|
Change From Unit Transactions: |
|||||||||||||||
|
• Contract purchases |
49,035 |
34,632 |
5,886 |
||||||||||||
|
• Contract withdrawals |
(111,246 |
) |
(29,631 |
) |
(25,090 |
) |
|||||||||
|
• Contract transfers |
19,601 |
(24,624 |
) |
(1,595 |
) |
||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
(42,610 |
) |
(19,623 |
) |
(20,799 |
) |
|||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
(30,897 |
) |
80,613 |
(7,880 |
) |
||||||||||
|
NET ASSETS AT DECEMBER 31, 2013 |
840,754 |
421,760 |
52,869 |
||||||||||||
|
Changes From Operations: |
|||||||||||||||
|
• Net investment income (loss) |
38,055 |
4,068 |
534 |
||||||||||||
|
• Net realized gain (loss) on investments |
2,912 |
27,184 |
5,653 |
||||||||||||
|
• Net change in unrealized appreciation or depreciation on investments |
(29,100 |
) |
(44,490 |
) |
(6,901 |
) |
|||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
11,867 |
(13,238 |
) |
(714 |
) |
||||||||||
|
Change From Unit Transactions: |
|||||||||||||||
|
• Contract purchases |
54,966 |
24,144 |
6,815 |
||||||||||||
|
• Contract withdrawals |
(40,647 |
) |
(45,306 |
) |
(9,837 |
) |
|||||||||
|
• Contract transfers |
6,413 |
4,206 |
(12,072 |
) |
|||||||||||
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM UNIT TRANSACTIONS |
20,732 |
(16,956 |
) |
(15,094 |
) |
||||||||||
|
TOTAL INCREASE (DECREASE) IN NET ASSETS |
32,599 |
(30,194 |
) |
(15,808 |
) |
||||||||||
|
NET ASSETS AT DECEMBER 31, 2014 |
$ |
873,353 |
$ |
391,566 |
$ |
37,061 |
|||||||||
See accompanying notes.
M-30
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements
1. Accounting Policies and Variable Account Information
The Variable Account: Lincoln Life & Annuity Flexible Premium Variable Life Account M (the Variable Account) is a segregated investment account of Lincoln Life & Annuity Company of New York (the Company) and is registered as a unit investment trust with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended. The operations of the Variable Account, which commenced on May 18, 1999, are part of the operations of the Company. The Variable Account consists of fifteen products as follows:
|
• VUL-I • Lincoln VULCV • Lincoln VULCV-II • Lincoln VULCV-III • Lincoln VULCV-IV • Lincoln VULDB • Lincoln VULDB-II • Lincoln VULDB-IV • Lincoln VULONE |
• Lincoln Momentum VULONE • Lincoln VULONE 2005 • Lincoln Momentum VULONE 2005 • Lincoln VULONE 2007 • Lincoln AssetEdge VUL • Lincoln VULONE 2010 |
||||||
The assets of the Variable Account are owned by the Company. The Variable Account's assets support the variable life policies and may not be used to satisfy liabilities arising from any other business of the Company.
Basis of Presentation: The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for unit investment trusts.
Accounting Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts as of the date of the financial statements. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts that require use of estimates is the fair value of certain assets.
Investments: The assets of the Variable Account are divided into variable subaccounts, each of which may be invested in shares of one of one hundred twenty-three mutual funds (the Funds) of eighteen diversified, open-ended management investment companies, each Fund with its own investment objective. The Funds are:
AllianceBernstein Variable Products Series Fund, Inc. (ABVPSF):
ABVPSF Global Thematic Growth Class A Portfolio
ABVPSF Growth and Income Class A Portfolio
ABVPSF International Value Class A Portfolio
ABVPSF Large Cap Growth Class A Portfolio
ABVPSF Small/Mid Cap Value Class A Portfolio
American Century Variable Portfolios, Inc. (American Century VP):
American Century VP Inflation Protection Class I Portfolio
American Funds Insurance Series (American Funds):
American Funds Global Growth Class 2 Fund
American Funds Global Small Capitalization Class 2 Fund
American Funds Growth Class 2 Fund
American Funds Growth-Income Class 2 Fund
American Funds International Class 2 Fund
BlackRock Variable Series Funds, Inc. (BlackRock):
BlackRock Global Allocation V.I. Class I Fund
Delaware VIP Trust (Delaware VIP):
Delaware VIP Diversified Income Standard Class Series
Delaware VIP Emerging Markets Standard Class Series
Delaware VIP High Yield Standard Class Series
Delaware VIP Limited-Term Diversified Income Standard Class Series
Delaware VIP REIT Standard Class Series
Delaware VIP Small Cap Value Standard Class Series
Delaware VIP Smid Cap Growth Standard Class Series
Delaware VIP U.S. Growth Standard Class Series
Delaware VIP Value Standard Class Series
Deutsche Variable Series II (Deutsche):
Deutsche Alternative Asset Allocation VIP Class A Portfolio
Deutsche Investments VIT Funds (Deutsche):
Deutsche Equity 500 Index VIP Class A Portfolio
Deutsche Small Cap Index VIP Class A Portfolio
Fidelity Variable Insurance Products Fund (Fidelity VIP):
Fidelity VIP Asset Manager Initial Class Portfolio
Fidelity VIP Contrafund Service Class Portfolio
Fidelity VIP Equity-Income Initial Class Portfolio
Fidelity VIP Equity-Income Service Class Portfolio
Fidelity VIP Growth Service Class Portfolio
Fidelity VIP Growth Opportunities Service Class Portfolio
Fidelity VIP High Income Service Class Portfolio
Fidelity VIP Investment Grade Bond Initial Class Portfolio
Fidelity VIP Mid Cap Service Class Portfolio
Fidelity VIP Overseas Service Class Portfolio
Franklin Templeton Variable Insurance Products Trust:
Franklin Income VIP Class 1 Fund
Franklin Mutual Shares VIP Class 1 Fund
Franklin Small-Mid Cap Growth VIP Class 1 Fund
Templeton Foreign VIP Class 1 Fund
Templeton Foreign VIP Class 2 Fund
Templeton Global Bond VIP Class 1 Fund
Templeton Growth VIP Class 1 Fund
Templeton Growth VIP Class 2 Fund
Invesco Variable Insurance Funds, Inc. (Invesco V.I.):
Invesco V.I. American Franchise Series I Fund
Invesco V.I. Core Equity Series I Fund
Invesco V.I. Diversified Income Series I Fund
Invesco V.I. International Growth Series I Fund
M-31
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
1. Accounting Policies and Variable Account Information (continued)
Janus Aspen Series:
Janus Aspen Balanced Institutional Class Portfolio
Janus Aspen Balanced Service Class Portfolio
Janus Aspen Enterprise Service Class Portfolio
Janus Aspen Global Research Institutional Class Portfolio
Janus Aspen Global Research Service Class Portfolio
Janus Aspen Global Technology Service Class Portfolio
Legg Mason Partners Variable Equity Trust:
ClearBridge Variable Mid Cap Core Class I Portfolio**
Lincoln Variable Insurance Products Trust (LVIP)*:
LVIP Baron Growth Opportunities Standard Class Fund
LVIP Baron Growth Opportunities Service Class Fund
LVIP BlackRock Emerging Markets RPM Standard Class Fund
LVIP BlackRock Equity Dividend RPM Standard Class Fund
LVIP BlackRock Inflation Protected Bond Standard Class Fund
LVIP Capital Growth Standard Class Fund
LVIP Clarion Global Real Estate Standard Class Fund
LVIP Columbia Small-Mid Cap Growth RPM Standard Class Fund
LVIP Delaware Bond Standard Class Fund
LVIP Delaware Diversified Floating Rate Standard Class Fund
LVIP Delaware Foundation Aggressive Allocation Standard Class Fund
LVIP Delaware Growth and Income Standard Class Fund
LVIP Delaware Social Awareness Standard Class Fund
LVIP Delaware Special Opportunities Standard Class Fund
LVIP Dimensional Non-U.S. Equity RPM Standard Class Fund
LVIP Dimensional U.S. Equity RPM Standard Class Fund
LVIP Dimensional/Vanguard Total Bond Standard Class Fund
LVIP Global Income Standard Class Fund
LVIP Invesco Diversified Equity Income RPM Standard Class Fund**
LVIP JPMorgan High Yield Standard Class Fund
LVIP JPMorgan Mid Cap Value RPM Standard Class Fund
LVIP Managed Risk Profile 2010 Standard Class Fund**
LVIP Managed Risk Profile 2020 Standard Class Fund
LVIP Managed Risk Profile 2030 Standard Class Fund
LVIP Managed Risk Profile 2040 Standard Class Fund
LVIP Managed Risk Profile Conservative Standard Class Fund
LVIP Managed Risk Profile Growth Standard Class Fund
LVIP Managed Risk Profile Moderate Standard Class Fund
LVIP MFS International Growth Standard Class Fund
LVIP MFS Value Standard Class Fund
LVIP Mid-Cap Value Standard Class Fund
LVIP Mondrian International Value Standard Class Fund
LVIP Money Market Standard Class Fund
LVIP Multi-Manager Global Equity RPM Standard Class Fund**
LVIP SSgA Bond Index Standard Class Fund
LVIP SSgA Conservative Index Allocation Standard Class Fund
LVIP SSgA Conservative Structured Allocation Standard Class Fund
LVIP SSgA Developed International 150 Standard Class Fund
LVIP SSgA Emerging Markets 100 Standard Class Fund
LVIP SSgA Global Tactical Allocation RPM Standard Class Fund
LVIP SSgA International Index Standard Class Fund
LVIP SSgA Large Cap 100 Standard Class Fund
LVIP SSgA Moderate Index Allocation Standard Class Fund
LVIP SSgA Moderate Structured Allocation Standard Class Fund
LVIP SSgA Moderately Aggressive Index Allocation Standard Class Fund
LVIP SSgA Moderately Aggressive Structured Allocation Standard Class Fund
LVIP SSgA S&P 500 Index Standard Class Fund
LVIP SSgA Small-Cap Index Standard Class Fund
LVIP SSgA Small-Mid Cap 200 Standard Class Fund
LVIP T. Rowe Price Growth Stock Standard Class Fund
LVIP T. Rowe Price Structured Mid-Cap Growth Standard Class Fund
LVIP Templeton Growth RPM Standard Class Fund
LVIP UBS Large Cap Growth RPM Standard Class Fund
LVIP Vanguard Domestic Equity ETF Standard Class Fund
LVIP Vanguard International Equity ETF Standard Class Fund
LVIP VIP Mid Cap RPM Standard Class Fund**
M Fund, Inc. (M):
M Capital Appreciation Fund
M International Equity Fund
M Large Cap Growth Fund
M Large Cap Value Fund
M-32
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
1. Accounting Policies and Variable Account Information (continued)
MFS Variable Insurance Trust (MFS VIT):
MFS VIT Core Equity Initial Class Series
MFS VIT Growth Initial Class Series
MFS VIT Total Return Initial Class Series
MFS VIT Utilities Initial Class Series
Neuberger Berman Advisers Management Trust (NB AMT):
NB AMT Large Cap Value I Class Portfolio
NB AMT Mid Cap Growth I Class Portfolio
NB AMT Mid Cap Intrinsic Value I Class Portfolio
PIMCO Variable Insurance Trust (PIMCO VIT):
PIMCO VIT CommodityRealReturn Strategy Administrative Class Fund
Putnam Variable Trust (Putnam VT):
Putnam VT Global Health Care Class IB Fund
Putnam VT Growth & Income Class IB Fund
* Denotes an affiliate of the Company.
** Available fund with no money invested at December 31, 2014.
Investments in the Funds are stated at fair value as determined by the closing net asset value per share on December 31, 2014. The difference between cost and net asset value is reflected as unrealized appreciation or depreciation of investments.
The Variable Account's investments in the Funds are valued in accordance with the Fair Value Measurements and Disclosure Topic of the Financial Accounting Standards Board Accounting Standards Codification (Topic). The Topic defines fair value as the price that the Variable Account would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Topic also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assessment regarding the assumptions market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The Variable Account's investments in the Funds are assigned a level based
upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
Level 1 - inputs to the valuation methodology are quoted prices in active markets
Level 2 - inputs to the valuation methodology are observable, directly or indirectly
Level 3 - inputs to the valuation methodology are unobservable and reflect assumptions on the part of the reporting entity
The Variable Account's investments in the Funds are valued within the fair value hierarchy as Level 2. Net asset value is quoted by the Funds as derived by the fair value of the Funds' underlying investments. The Funds are not considered Level 1 as they are not traded in the open market; rather the Company sells and redeems shares at net asset value with the Funds.
Investment transactions are accounted for on a trade-date basis. The cost of investments sold is determined by the average cost method.
ASU 2013-08, Amendments to the Scope, Measurement, and Disclosure Requirements (Topic 946, Investment Companies) provides accounting guidance for assessing whether an entity is an investment company; considering the entity's purpose and design to determine whether the entity is an investment company. The standard also adds additional disclosure requirements regarding contractually required commitments to investees. Management has evaluated the criteria in the standard and concluded that the Variable Account qualifies as an investment company and therefore will continue to apply the accounting requirements of ASC 946. The adoption of this ASU did not have an effect on our financial condition and results of operations
Dividends: Dividends paid to the Variable Account are automatically reinvested in shares of the Funds on the payable date. Dividend income is recorded on the ex-dividend date.
Federal Income Taxes: Operations of the Variable Account form a part of and are taxed with operations of the Company, which is taxed as a "life insurance company" under the Internal Revenue Code. The Variable Account will not be taxed as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended. Under current federal income tax law, no federal income taxes are payable or receivable with respect to the Variable Account's net investment income and the net realized gain (loss) on investments.
Investment Fund Changes: During 2013, the LVIP BlackRock Emerging Markets RPM Standard Class Fund became available as an investment option for account contract owners. Accordingly, for the subaccount that commenced operations during 2013, the 2013 statements of changes in net assets and total return and investment income ratios in note 3 are for the period from the commencement of operations to December 31, 2013.
M-33
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
1. Accounting Policies and Variable Account Information (continued)
Also during 2013, the following funds changed their names:
|
Previous Fund Name |
New Fund Name |
||||||
|
Invesco Van Kampen V.I. American Franchise Series I Fund |
Invesco V.I. American Franchise Series I Fund |
||||||
|
Janus Aspen Series Worldwide Institutional Class Portfolio |
Janus Aspen Global Research Institutional Class Portfolio |
||||||
|
Janus Aspen Series Worldwide Service Class Portfolio |
Janus Aspen Global Research Service Class Portfolio |
||||||
|
LVIP Dimensional Non-U.S. Equity Standard Class Fund |
LVIP Dimensional Non-U.S. Equity RPM Standard Class Fund |
||||||
|
LVIP Dimensional U.S. Equity Standard Class Fund |
LVIP Dimensional U.S. Equity RPM Standard Class Fund |
||||||
|
LVIP Protected Profile 2010 Standard Class Fund |
LVIP Managed Risk Profile 2010 Standard Class Fund |
||||||
|
LVIP Protected Profile 2020 Standard Class Fund |
LVIP Managed Risk Profile 2020 Standard Class Fund |
||||||
|
LVIP Protected Profile 2030 Standard Class Fund |
LVIP Managed Risk Profile 2030 Standard Class Fund |
||||||
|
LVIP Protected Profile 2040 Standard Class Fund |
LVIP Managed Risk Profile 2040 Standard Class Fund |
||||||
|
LVIP Protected Profile Conservative Standard Class Fund |
LVIP Managed Risk Profile Conservative Standard Class Fund |
||||||
|
LVIP Protected Profile Growth Standard Class Fund |
LVIP Managed Risk Profile Growth Standard Class Fund |
||||||
|
LVIP Protected Profile Moderate Standard Class Fund |
LVIP Managed Risk Profile Moderate Standard Class Fund |
||||||
|
M Business Opportunity Value Fund |
M Large Cap Value Fund |
||||||
During 2014, the following funds became available as investment options for account contract owners. Accordingly, for the subaccounts that commenced operations during 2014, the 2014 statements of operations and statements of changes in net assets and total return and investment income ratios in note 3 are for the period from the commencement of operations to December 31, 2014:
|
ClearBridge Variable Mid Cap Core Class I Portfolio |
LVIP Multi-Manager Global Equity RPM Standard Class Fund |
||||||
|
LVIP Invesco Diversified Equity Income RPM Standard Class Fund |
LVIP VIP Mid Cap RPM Standard Class Fund |
||||||
Also during 2014, the following funds changed their names:
|
Previous Fund Name |
New Fund Name |
||||||
|
FTVIPT Franklin Income Securities Class 1 Fund |
Franklin Income VIP Class 1 Fund |
||||||
|
FTVIPT Franklin Small-Mid Cap Growth Securities Class 1 Fund |
Franklin Small-Mid Cap Growth VIP Class 1 Fund |
||||||
|
FTVIPT Mutual Shares Securities Class 1 Fund |
Franklin Mutual Shares VIP Class 1 Fund |
||||||
|
FTVIPT Templeton Foreign Securities Class 1 Fund |
Templeton Foreign VIP Class 1 Fund |
||||||
|
FTVIPT Templeton Foreign Securities Class 2 Fund |
Templeton Foreign VIP Class 2 Fund |
||||||
|
FTVIPT Templeton Global Bond Securities Class 1 Fund |
Templeton Global Bond VIP Class 1 Fund |
||||||
|
FTVIPT Templeton Growth Securities Class 1 Fund |
Templeton Growth VIP Class 1 Fund |
||||||
|
FTVIPT Templeton Growth Securities Class 2 Fund |
Templeton Growth VIP Class 2 Fund |
||||||
Also during 2014, the DWS Variable Series II (DWS) family of funds changed its name to the Deutsche Variable Series II (Deutsche) and the DWS Investments VIT Funds (DWS) family of funds changed its name to Deutsche Investments VIT Funds (Deutsche).
2. Mortality and Expense Guarantees and Other Transactions with Affiliates
Amounts are paid to the Company for mortality and expense guarantees at a percentage of the current value of the Variable Account each day. The mortality and expense risk charges for each of the variable subaccounts are reported in the statement of operations. The rates are as follows for the fifteen policy types within the Variable Account:
• VUL-I - annual rate of .80% for policy years one through twelve and .55% thereafter.
• Lincoln VULCV - annual rate of .75% for policy years one through ten, .35% for policy years eleven through twenty and .20% thereafter.
• Lincoln VULCV-II - annual rate of .75% for policy years one through ten, .35% for policy years eleven through twenty and .20% thereafter.
• Lincoln VULCV-III - annual rate of .75% for policy years one through ten, .35% for policy years eleven through twenty and .20% thereafter.
• Lincoln VULCV-IV - annual rate of .60% for policy years one through ten and .20% thereafter.
• Lincoln VULDB - annual rate of .90% for policy years one through nineteen and .20% thereafter.
• Lincoln VULDB-II - annual rate of .90% for policy years one through nineteen and .20% thereafter.
• Lincoln VULDB-IV - annual rate of .90% for policy years one through nineteen and .20% thereafter.
• Lincoln VULONE - annual rate of .50% for policy years one through ten and .20% thereafter.
• Lincoln Momentum VULONE - annual rate of .50% for policy years one through ten and .20% thereafter.
• Lincoln VULONE 2005 - annual rate of .50% for policy years one through ten and .20% thereafter.
M-34
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
2. Mortality and Expense Guarantees and Other Transactions with Affiliates (continued)
• Lincoln Momentum VULONE 2005 - annual rate of .50% for policy years one through ten and .20% thereafter.
• Lincoln VULONE 2007 - annual rate of .60% for policy years one through ten, .20% for policy years eleven through twenty and 0.00% thereafter.
• Lincoln AssetEdge VUL - annual rate of .10% for policy years one through twenty and 0.00% thereafter for policies issued before 11/02/09. For policies issued on or after 11/02/09 an annual rate of .15% is charged for policy years one through fifteen and 0.00% thereafter.
• Lincoln VULONE 2010. - annual rate of .60% for policy years one through ten, .20% for policy years eleven through twenty and 0.00% thereafter.
The Company deducts a premium load, based on product, to cover state taxes and federal income tax liabilities and a portion of the sales expenses incurred by the Company. Refer to the product prospectuses for the applicable rate. The premium loads for the years ended December 31, 2014 and 2013, amounted to $610,310 and $906,871, respectively.
The Company charges a monthly administrative fee which varies by product and policy year. Refer to the product prospectus for applicable fees. This charge is for items such as premium billing and collection, policy value calculation, confirmations and periodic reports. Administrative fees for the years ended December 31, 2014 and 2013, totaled $1,859,391 and $1,568,000, respectively.
The Company assumes responsibility for providing the insurance benefits included in the policy. On a monthly basis, a cost of insurance charge is deducted proportionately from the value of each variable subaccount and/or fixed account funding option. The fixed account is part of the general account of the Company and is not included in these financial statements. The cost of insurance charge depends on the attained age, risk classification, gender classification (in accordance with state law) and the current net amount at risk. The cost of insurance charges for the years ended December 31, 2014 and 2013, amounted to $3,820,767 and $3,569,999, respectively.
Under certain circumstances, the Company reserves the right to charge a transfer fee of up to $25 for transfers between variable subaccounts. For the years ended December 31, 2014 and 2013, no transfer fees were deducted from the variable subaccounts.
The Company, upon full surrender of a policy, may assess a surrender charge. This charge is in part a deferred sales charge and in part a recovery of certain first year administrative costs. The amount of the surrender charge, if any, will depend on the amount of the death benefit, the amount of premium payments made during the first two policy years and the age of the policy. In no event will the surrender charge exceed the maximum allowed by state or federal law. No surrender charge is imposed on partial surrenders for Lincoln VULONE 2007, Lincoln AssetEdge VUL and Lincoln VULONE 2010. For all other products, an administrative fee of $25 (not to exceed 2% of the amount withdrawn) is imposed, allocated pro-rata among the variable subaccounts (and, where applicable, the fixed account) from which the partial surrender proceeds are taken. For the years ended December 31, 2014 and 2013, surrender charges and partial surrender administrative charges totaled $93,945 and $390,573, respectively.
Premium load, cost of insurance, administrative, surrender and transfer fees are included within Contract withdrawals on the Statements of Changes in Net Assets.
3. Financial Highlights
A summary of the fee rates, unit values, units outstanding, net assets and total return and investment income ratios for variable life contracts as of and for each year or period in the five years ended December 31, 2014, follows:
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
ABVPSF Global Thematic Growth Class A |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
$ |
11.53 |
$ |
17.51 |
39,209 |
$ |
585,885 |
4.12 |
% |
4.93 |
% |
0.00 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
10.69 |
19.73 |
78,957 |
1,117,897 |
22.16 |
% |
23.09 |
% |
0.28 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
8.93 |
16.13 |
64,549 |
745,752 |
12.50 |
% |
13.38 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
7.87 |
14.32 |
52,259 |
541,066 |
-23.92 |
% |
-23.33 |
% |
0.60 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
10.27 |
18.79 |
41,410 |
565,931 |
17.87 |
% |
18.87 |
% |
2.04 |
% |
|||||||||||||||||||||||||||||||||
M-35
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
ABVPSF Growth and Income Class A |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
$ |
14.00 |
$ |
23.81 |
42,722 |
$ |
848,524 |
8.56 |
% |
9.38 |
% |
1.04 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
12.85 |
23.89 |
64,674 |
1,194,801 |
33.76 |
% |
34.76 |
% |
1.27 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
9.58 |
17.83 |
56,026 |
770,618 |
16.47 |
% |
17.35 |
% |
1.64 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
8.20 |
15.29 |
50,136 |
605,368 |
5.36 |
% |
6.20 |
% |
1.35 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
7.75 |
14.49 |
47,833 |
551,128 |
12.08 |
% |
13.09 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
ABVPSF International Value Class A |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
6.60 |
13.49 |
47,802 |
454,814 |
-7.05 |
% |
-6.35 |
% |
2.97 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
7.08 |
14.44 |
62,054 |
633,061 |
21.90 |
% |
22.82 |
% |
6.37 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
5.79 |
10.33 |
60,104 |
498,588 |
13.51 |
% |
14.36 |
% |
1.88 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
5.08 |
9.04 |
48,763 |
338,722 |
-19.98 |
% |
-19.27 |
% |
4.64 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
6.33 |
8.17 |
40,701 |
337,146 |
3.66 |
% |
4.59 |
% |
3.38 |
% |
|||||||||||||||||||||||||||||||||
|
ABVPSF Large Cap Growth Class A |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
16.78 |
22.64 |
7,289 |
131,816 |
13.12 |
% |
13.78 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
14.83 |
20.02 |
8,551 |
137,511 |
36.12 |
% |
36.87 |
% |
0.07 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.34 |
15.43 |
9,798 |
120,127 |
15.33 |
% |
15.98 |
% |
0.30 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
10.70 |
13.36 |
9,149 |
105,487 |
-3.91 |
% |
-3.52 |
% |
0.33 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.90 |
% |
11.14 |
13.88 |
8,966 |
108,899 |
9.11 |
% |
9.55 |
% |
0.48 |
% |
|||||||||||||||||||||||||||||||||
|
ABVPSF Small/Mid Cap Value Class A |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
15.51 |
39.49 |
59,244 |
1,281,853 |
8.22 |
% |
9.03 |
% |
0.71 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
14.25 |
36.44 |
54,950 |
1,104,534 |
36.82 |
% |
37.85 |
% |
0.60 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
10.90 |
26.59 |
52,509 |
752,793 |
17.68 |
% |
18.57 |
% |
0.55 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
9.24 |
22.56 |
44,878 |
649,444 |
-9.21 |
% |
-8.48 |
% |
0.47 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
10.14 |
24.81 |
39,193 |
644,863 |
25.76 |
% |
26.85 |
% |
0.41 |
% |
|||||||||||||||||||||||||||||||||
|
American Century VP Inflation Protection Class I |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
9.72 |
15.24 |
57,881 |
779,094 |
2.65 |
% |
3.46 |
% |
1.48 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
11.19 |
14.78 |
50,761 |
694,098 |
-9.04 |
% |
-8.33 |
% |
1.79 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
12.24 |
16.19 |
50,921 |
766,031 |
6.58 |
% |
7.44 |
% |
2.63 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
11.42 |
15.13 |
52,516 |
738,801 |
11.09 |
% |
11.99 |
% |
4.24 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
11.06 |
13.56 |
57,728 |
740,187 |
4.42 |
% |
5.26 |
% |
1.84 |
% |
|||||||||||||||||||||||||||||||||
|
American Funds Global Growth Class 2 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
13.91 |
25.14 |
94,797 |
1,921,165 |
1.39 |
% |
2.17 |
% |
1.13 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.64 |
24.70 |
99,364 |
2,100,334 |
28.02 |
% |
29.04 |
% |
1.32 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.05 |
19.22 |
92,051 |
1,511,241 |
21.46 |
% |
22.38 |
% |
0.99 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
9.03 |
15.76 |
74,842 |
1,042,047 |
-9.71 |
% |
-9.01 |
% |
1.38 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
9.92 |
17.38 |
64,313 |
1,008,246 |
10.74 |
% |
11.74 |
% |
1.55 |
% |
|||||||||||||||||||||||||||||||||
|
American Funds Global Small Capitalization Class 2 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
11.49 |
36.67 |
107,903 |
2,016,559 |
1.21 |
% |
1.97 |
% |
0.11 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
11.32 |
36.18 |
124,075 |
2,473,385 |
27.13 |
% |
28.09 |
% |
0.87 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
8.88 |
28.41 |
111,748 |
1,786,756 |
17.12 |
% |
18.00 |
% |
1.35 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
7.56 |
24.22 |
99,788 |
1,430,664 |
-19.87 |
% |
-19.21 |
% |
1.32 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
9.40 |
30.18 |
85,240 |
1,578,851 |
21.32 |
% |
22.39 |
% |
1.74 |
% |
|||||||||||||||||||||||||||||||||
|
American Funds Growth Class 2 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
14.43 |
29.30 |
381,806 |
7,379,109 |
7.54 |
% |
8.40 |
% |
0.76 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.38 |
27.21 |
405,557 |
7,623,548 |
28.94 |
% |
29.95 |
% |
0.96 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
10.34 |
21.07 |
385,388 |
5,692,315 |
16.83 |
% |
17.77 |
% |
0.81 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
8.83 |
18.01 |
373,590 |
4,891,356 |
-5.14 |
% |
-4.38 |
% |
0.62 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
9.26 |
18.95 |
380,500 |
5,164,737 |
17.62 |
% |
18.57 |
% |
0.74 |
% |
|||||||||||||||||||||||||||||||||
|
American Funds Growth-Income Class 2 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
14.41 |
27.11 |
409,677 |
7,740,872 |
9.64 |
% |
10.53 |
% |
1.38 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.10 |
24.69 |
342,412 |
6,124,453 |
32.30 |
% |
33.36 |
% |
1.40 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
9.87 |
18.63 |
335,267 |
4,554,797 |
16.43 |
% |
17.36 |
% |
1.67 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
8.46 |
15.98 |
321,220 |
3,831,681 |
-2.71 |
% |
-1.94 |
% |
1.60 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
8.66 |
16.40 |
305,129 |
3,792,386 |
10.43 |
% |
11.34 |
% |
1.52 |
% |
|||||||||||||||||||||||||||||||||
|
American Funds International Class 2 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
10.87 |
28.04 |
256,064 |
4,000,853 |
-3.53 |
% |
-2.75 |
% |
1.35 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
11.18 |
29.02 |
254,075 |
4,317,235 |
20.55 |
% |
21.51 |
% |
1.42 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
9.20 |
24.04 |
221,936 |
3,421,511 |
16.85 |
% |
17.79 |
% |
1.61 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
7.81 |
20.54 |
183,504 |
2,592,527 |
-14.74 |
% |
-14.05 |
% |
1.85 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
9.09 |
24.05 |
160,200 |
2,728,011 |
6.27 |
% |
7.13 |
% |
2.14 |
% |
|||||||||||||||||||||||||||||||||
M-36
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
BlackRock Global Allocation V.I. Class I |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
$ |
11.94 |
$ |
15.99 |
198,974 |
$ |
2,966,847 |
1.19 |
% |
1.96 |
% |
2.37 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
11.73 |
15.68 |
170,480 |
2,494,754 |
13.73 |
% |
14.58 |
% |
1.28 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.72 |
13.69 |
138,330 |
1,781,916 |
9.29 |
% |
10.23 |
% |
2.58 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
11.31 |
12.42 |
59,121 |
703,733 |
-4.36 |
% |
-3.54 |
% |
2.79 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
12.70 |
12.76 |
37,390 |
474,129 |
9.07 |
% |
9.40 |
% |
1.48 |
% |
|||||||||||||||||||||||||||||||||
|
Delaware VIP Diversified Income Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
10.75 |
18.84 |
124,883 |
1,914,165 |
4.37 |
% |
5.20 |
% |
2.21 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
10.80 |
17.98 |
108,170 |
1,655,108 |
-2.15 |
% |
-1.35 |
% |
2.25 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.76 |
18.30 |
100,818 |
1,622,679 |
6.23 |
% |
7.09 |
% |
3.12 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
11.01 |
17.16 |
89,383 |
1,366,888 |
5.44 |
% |
6.27 |
% |
3.84 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
12.69 |
16.21 |
75,462 |
1,129,048 |
7.09 |
% |
7.94 |
% |
4.54 |
% |
|||||||||||||||||||||||||||||||||
|
Delaware VIP Emerging Markets Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
9.25 |
44.24 |
117,847 |
1,895,006 |
-8.88 |
% |
-8.14 |
% |
0.70 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
10.10 |
48.55 |
126,344 |
2,486,616 |
9.15 |
% |
10.04 |
% |
1.65 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
9.20 |
44.48 |
117,681 |
2,078,791 |
13.42 |
% |
14.34 |
% |
0.95 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
8.05 |
39.22 |
80,135 |
1,472,084 |
-20.50 |
% |
-19.86 |
% |
2.02 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
10.04 |
49.33 |
67,914 |
1,827,002 |
17.43 |
% |
18.38 |
% |
0.65 |
% |
|||||||||||||||||||||||||||||||||
|
Delaware VIP High Yield Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
11.97 |
29.62 |
69,449 |
1,241,702 |
-1.18 |
% |
-0.41 |
% |
6.62 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
12.25 |
30.47 |
65,510 |
1,272,465 |
8.24 |
% |
9.12 |
% |
7.28 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
13.13 |
28.10 |
63,330 |
1,174,624 |
16.77 |
% |
17.72 |
% |
8.48 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
11.18 |
24.03 |
56,887 |
991,286 |
1.46 |
% |
2.27 |
% |
9.07 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
12.43 |
23.65 |
53,993 |
939,073 |
14.28 |
% |
15.23 |
% |
7.66 |
% |
|||||||||||||||||||||||||||||||||
|
Delaware VIP Limited-Term Diversified Income Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
10.08 |
13.17 |
92,517 |
1,043,312 |
0.78 |
% |
1.60 |
% |
1.59 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
10.21 |
13.02 |
74,240 |
828,924 |
-1.95 |
% |
-1.17 |
% |
1.52 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
10.72 |
13.22 |
50,367 |
598,864 |
1.85 |
% |
2.65 |
% |
1.69 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
10.99 |
12.93 |
31,485 |
374,035 |
1.99 |
% |
2.76 |
% |
1.82 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
11.62 |
12.63 |
17,267 |
206,369 |
3.50 |
% |
4.43 |
% |
2.23 |
% |
|||||||||||||||||||||||||||||||||
|
Delaware VIP REIT Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
14.11 |
38.28 |
78,129 |
1,649,719 |
28.30 |
% |
29.27 |
% |
1.35 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
11.81 |
29.83 |
75,114 |
1,339,968 |
1.23 |
% |
1.99 |
% |
1.52 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.61 |
29.47 |
66,407 |
1,240,350 |
15.89 |
% |
16.78 |
% |
1.44 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
12.26 |
27.78 |
65,341 |
1,098,678 |
9.96 |
% |
10.80 |
% |
1.57 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
12.24 |
25.22 |
63,369 |
996,824 |
25.85 |
% |
26.35 |
% |
2.73 |
% |
|||||||||||||||||||||||||||||||||
|
Delaware VIP Small Cap Value Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
14.85 |
37.35 |
114,079 |
2,248,673 |
4.92 |
% |
5.82 |
% |
0.55 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
14.07 |
35.55 |
110,465 |
2,176,689 |
32.31 |
% |
33.39 |
% |
0.68 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.33 |
29.92 |
98,683 |
1,481,764 |
12.88 |
% |
13.78 |
% |
0.55 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
10.01 |
26.48 |
87,350 |
1,387,432 |
-2.22 |
% |
-1.45 |
% |
0.51 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
10.21 |
27.06 |
71,604 |
1,414,000 |
31.09 |
% |
31.61 |
% |
0.62 |
% |
|||||||||||||||||||||||||||||||||
|
Delaware VIP Smid Cap Growth Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
14.79 |
33.47 |
72,206 |
1,440,083 |
2.22 |
% |
2.99 |
% |
0.07 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
14.56 |
34.80 |
68,940 |
1,462,262 |
40.06 |
% |
41.11 |
% |
0.02 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
13.35 |
24.81 |
66,244 |
1,015,118 |
10.03 |
% |
10.86 |
% |
0.23 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
10.63 |
22.52 |
53,287 |
843,893 |
7.16 |
% |
7.75 |
% |
0.95 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
10/8/10 |
0.35 |
% |
0.90 |
% |
9.91 |
20.98 |
55,045 |
785,041 |
13.54 |
% |
13.68 |
% |
0.00 |
% |
||||||||||||||||||||||||||||||||
|
Delaware VIP U.S. Growth Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
16.14 |
24.82 |
40,318 |
838,048 |
11.77 |
% |
12.65 |
% |
0.20 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
16.43 |
24.04 |
29,183 |
592,729 |
33.55 |
% |
34.59 |
% |
0.32 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
12.21 |
17.97 |
21,997 |
346,105 |
15.19 |
% |
16.09 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
10.52 |
15.58 |
11,509 |
162,547 |
6.66 |
% |
7.50 |
% |
0.25 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
10.94 |
14.59 |
10,260 |
134,057 |
12.88 |
% |
13.48 |
% |
0.08 |
% |
|||||||||||||||||||||||||||||||||
|
Delaware VIP Value Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
14.83 |
30.41 |
68,742 |
1,440,008 |
12.97 |
% |
13.82 |
% |
1.66 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
13.08 |
26.87 |
66,184 |
1,277,632 |
32.49 |
% |
33.49 |
% |
1.76 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
9.85 |
20.25 |
63,564 |
997,441 |
13.70 |
% |
14.56 |
% |
2.19 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
8.63 |
17.79 |
58,506 |
788,547 |
8.56 |
% |
9.38 |
% |
1.86 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.90 |
% |
7.93 |
16.36 |
54,403 |
687,096 |
14.59 |
% |
15.06 |
% |
2.33 |
% |
|||||||||||||||||||||||||||||||||
M-37
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
Deutsche Alternative Asset Allocation VIP Class A |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.60 |
% |
$ |
12.38 |
$ |
14.50 |
20,146 |
$ |
266,084 |
2.83 |
% |
3.40 |
% |
1.52 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.60 |
% |
12.03 |
14.02 |
12,456 |
159,483 |
0.31 |
% |
0.87 |
% |
1.14 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.60 |
% |
11.99 |
13.90 |
2,949 |
38,889 |
9.06 |
% |
9.80 |
% |
3.28 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.60 |
% |
11.56 |
12.66 |
4,911 |
60,633 |
-3.45 |
% |
-2.96 |
% |
1.30 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.60 |
% |
12.94 |
12.94 |
2,479 |
31,878 |
11.80 |
% |
11.80 |
% |
0.26 |
% |
|||||||||||||||||||||||||||||||||
|
Deutsche Equity 500 Index VIP Class A |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.20 |
% |
0.90 |
% |
16.29 |
24.12 |
163,140 |
2,966,209 |
12.37 |
% |
12.99 |
% |
1.77 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
14.48 |
23.29 |
161,425 |
2,787,145 |
30.74 |
% |
31.47 |
% |
1.77 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
11.01 |
17.79 |
158,343 |
2,181,059 |
14.66 |
% |
15.29 |
% |
1.65 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
9.13 |
15.49 |
198,981 |
2,430,601 |
0.92 |
% |
1.48 |
% |
1.69 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
9.04 |
15.32 |
213,550 |
2,477,826 |
13.68 |
% |
14.13 |
% |
1.90 |
% |
|||||||||||||||||||||||||||||||||
|
Deutsche Small Cap Index VIP Class A |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.20 |
% |
0.90 |
% |
15.14 |
30.29 |
45,299 |
806,837 |
3.80 |
% |
4.38 |
% |
0.81 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
14.50 |
32.23 |
63,202 |
1,084,464 |
37.40 |
% |
38.15 |
% |
1.65 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.48 |
23.42 |
56,478 |
860,798 |
15.21 |
% |
15.84 |
% |
0.87 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
10.77 |
20.30 |
52,520 |
787,267 |
-5.27 |
% |
-4.75 |
% |
0.86 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
13.39 |
21.40 |
50,571 |
819,123 |
25.26 |
% |
25.76 |
% |
0.88 |
% |
|||||||||||||||||||||||||||||||||
|
Fidelity VIP Asset Manager Initial Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.55 |
% |
0.55 |
% |
14.67 |
14.67 |
11,725 |
171,985 |
5.25 |
% |
5.25 |
% |
1.43 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.55 |
% |
0.55 |
% |
13.94 |
13.94 |
13,520 |
188,420 |
15.07 |
% |
15.07 |
% |
1.53 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.55 |
% |
0.55 |
% |
12.11 |
12.11 |
15,424 |
186,815 |
11.87 |
% |
11.87 |
% |
1.49 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.55 |
% |
0.80 |
% |
13.52 |
13.52 |
17,302 |
188,613 |
-3.34 |
% |
-3.34 |
% |
1.89 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.80 |
% |
0.80 |
% |
13.99 |
13.99 |
15,458 |
216,287 |
13.36 |
% |
13.36 |
% |
1.68 |
% |
|||||||||||||||||||||||||||||||||
|
Fidelity VIP Contrafund Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
15.54 |
30.73 |
153,825 |
3,158,092 |
10.81 |
% |
11.70 |
% |
0.90 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.94 |
27.69 |
139,505 |
2,697,203 |
29.97 |
% |
31.01 |
% |
1.01 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
10.68 |
21.27 |
138,064 |
2,085,409 |
15.27 |
% |
16.19 |
% |
1.28 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
9.19 |
18.43 |
137,971 |
1,891,303 |
-3.51 |
% |
-2.73 |
% |
0.93 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
9.45 |
19.07 |
131,673 |
1,945,423 |
16.06 |
% |
17.00 |
% |
1.18 |
% |
|||||||||||||||||||||||||||||||||
|
Fidelity VIP Equity-Income Initial Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.55 |
% |
0.55 |
% |
17.89 |
17.89 |
6,526 |
116,712 |
8.12 |
% |
8.12 |
% |
2.74 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.55 |
% |
0.55 |
% |
16.54 |
16.54 |
6,453 |
106,736 |
27.44 |
% |
27.44 |
% |
2.37 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.55 |
% |
0.80 |
% |
12.98 |
14.18 |
8,925 |
115,897 |
16.37 |
% |
16.66 |
% |
1.94 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.55 |
% |
0.80 |
% |
12.19 |
12.19 |
39,565 |
445,513 |
0.17 |
% |
0.17 |
% |
2.52 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.80 |
% |
0.80 |
% |
12.17 |
12.17 |
38,126 |
463,864 |
14.23 |
% |
14.23 |
% |
1.82 |
% |
|||||||||||||||||||||||||||||||||
|
Fidelity VIP Equity-Income Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.20 |
% |
0.90 |
% |
15.14 |
22.08 |
18,827 |
326,889 |
7.67 |
% |
8.27 |
% |
2.85 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
13.98 |
22.68 |
17,462 |
292,487 |
26.84 |
% |
27.56 |
% |
2.45 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
13.10 |
17.85 |
16,598 |
235,214 |
16.14 |
% |
16.59 |
% |
3.09 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.50 |
% |
0.90 |
% |
11.28 |
15.34 |
15,091 |
205,134 |
-0.05 |
% |
0.36 |
% |
2.48 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.90 |
% |
11.29 |
15.33 |
14,665 |
199,166 |
14.05 |
% |
14.51 |
% |
1.40 |
% |
|||||||||||||||||||||||||||||||||
|
Fidelity VIP Growth Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
15.28 |
23.66 |
49,552 |
976,023 |
10.19 |
% |
11.02 |
% |
0.10 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.76 |
23.27 |
46,018 |
844,810 |
34.98 |
% |
36.04 |
% |
0.20 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
10.12 |
17.21 |
44,191 |
595,862 |
13.52 |
% |
14.37 |
% |
0.50 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
6.98 |
15.14 |
41,423 |
491,188 |
-0.76 |
% |
0.00 |
% |
0.27 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
7.02 |
15.23 |
43,959 |
481,962 |
22.95 |
% |
24.03 |
% |
0.19 |
% |
|||||||||||||||||||||||||||||||||
|
Fidelity VIP Growth Opportunities Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
19.17 |
22.04 |
6,813 |
147,722 |
11.10 |
% |
11.71 |
% |
0.12 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
17.26 |
19.73 |
6,977 |
135,527 |
36.55 |
% |
37.30 |
% |
0.20 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.64 |
14.37 |
7,033 |
99,565 |
18.39 |
% |
19.05 |
% |
0.31 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
10.68 |
12.07 |
7,216 |
85,888 |
1.26 |
% |
1.82 |
% |
0.05 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
8.09 |
10.54 |
7,985 |
84,886 |
22.55 |
% |
22.73 |
% |
0.10 |
% |
|||||||||||||||||||||||||||||||||
|
Fidelity VIP High Income Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
13.67 |
20.76 |
5,119 |
72,029 |
0.16 |
% |
0.72 |
% |
5.74 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
13.57 |
20.73 |
5,071 |
70,718 |
4.93 |
% |
5.50 |
% |
5.65 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.87 |
19.75 |
5,357 |
71,741 |
13.17 |
% |
13.80 |
% |
5.79 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
11.31 |
17.46 |
5,031 |
63,498 |
2.99 |
% |
3.55 |
% |
6.33 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
13.98 |
16.95 |
4,806 |
67,047 |
12.77 |
% |
12.94 |
% |
7.88 |
% |
|||||||||||||||||||||||||||||||||
M-38
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
Fidelity VIP Investment Grade Bond Initial Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.55 |
% |
0.55 |
% |
$ |
11.94 |
$ |
11.94 |
12,995 |
$ |
155,161 |
5.25 |
% |
5.25 |
% |
2.04 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.55 |
% |
0.55 |
% |
11.34 |
11.34 |
15,446 |
175,209 |
-2.32 |
% |
-2.32 |
% |
2.28 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.55 |
% |
0.55 |
% |
11.61 |
11.61 |
17,043 |
197,924 |
5.32 |
% |
5.32 |
% |
2.07 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.55 |
% |
0.80 |
% |
19.06 |
19.06 |
21,821 |
275,035 |
6.48 |
% |
6.48 |
% |
3.19 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.80 |
% |
0.80 |
% |
17.90 |
17.90 |
15,351 |
274,845 |
6.95 |
% |
6.95 |
% |
3.50 |
% |
|||||||||||||||||||||||||||||||||
|
Fidelity VIP Mid Cap Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
14.04 |
24.45 |
58,225 |
1,228,760 |
5.23 |
% |
6.09 |
% |
0.17 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.27 |
23.14 |
51,863 |
1,033,254 |
34.81 |
% |
35.92 |
% |
0.44 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.22 |
17.09 |
46,854 |
694,304 |
13.71 |
% |
14.64 |
% |
0.52 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
9.79 |
14.97 |
44,166 |
616,373 |
-11.62 |
% |
-10.80 |
% |
0.15 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
10.97 |
16.85 |
39,316 |
621,567 |
27.55 |
% |
28.59 |
% |
0.28 |
% |
|||||||||||||||||||||||||||||||||
|
Fidelity VIP Overseas Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
9.63 |
23.06 |
21,871 |
328,611 |
-8.99 |
% |
-8.16 |
% |
1.35 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
10.55 |
25.30 |
18,788 |
309,534 |
29.20 |
% |
30.32 |
% |
1.27 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
8.11 |
19.54 |
22,201 |
283,627 |
19.46 |
% |
20.54 |
% |
1.95 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
6.73 |
16.32 |
21,244 |
243,637 |
-17.97 |
% |
-17.23 |
% |
1.42 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
8.13 |
19.86 |
18,419 |
259,312 |
11.98 |
% |
12.99 |
% |
1.53 |
% |
|||||||||||||||||||||||||||||||||
|
Franklin Income VIP Class 1 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
13.86 |
17.21 |
210,872 |
3,512,035 |
3.98 |
% |
4.82 |
% |
3.27 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.28 |
16.43 |
79,873 |
1,238,688 |
13.09 |
% |
14.11 |
% |
5.86 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.70 |
14.41 |
65,264 |
889,266 |
11.76 |
% |
12.82 |
% |
6.21 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
10.43 |
12.78 |
53,430 |
640,748 |
1.77 |
% |
2.61 |
% |
5.70 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
10.21 |
12.48 |
43,142 |
509,593 |
11.83 |
% |
12.74 |
% |
6.17 |
% |
|||||||||||||||||||||||||||||||||
|
Franklin Mutual Shares VIP Class 1 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
12.66 |
18.79 |
67,053 |
1,145,965 |
6.41 |
% |
7.28 |
% |
2.34 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
11.86 |
17.52 |
59,520 |
933,320 |
27.37 |
% |
28.40 |
% |
2.37 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
9.28 |
13.65 |
51,628 |
621,800 |
13.58 |
% |
14.48 |
% |
2.31 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
8.15 |
11.93 |
45,291 |
463,738 |
-1.70 |
% |
-0.90 |
% |
2.65 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
8.26 |
10.26 |
37,433 |
380,414 |
10.47 |
% |
11.35 |
% |
1.84 |
% |
|||||||||||||||||||||||||||||||||
|
Franklin Small-Mid Cap Growth VIP Class 1 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
14.58 |
31.58 |
29,775 |
602,088 |
6.81 |
% |
7.68 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.58 |
29.52 |
28,744 |
577,878 |
37.26 |
% |
38.41 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
9.84 |
21.48 |
30,721 |
453,082 |
10.12 |
% |
10.97 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
9.82 |
19.47 |
30,176 |
420,402 |
-5.45 |
% |
-4.74 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
10.74 |
20.56 |
28,859 |
435,795 |
26.79 |
% |
27.82 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
Invesco V.I. American Franchise Series I |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
12.36 |
19.00 |
42,183 |
738,070 |
7.47 |
% |
8.06 |
% |
0.04 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
11.50 |
19.13 |
43,223 |
703,063 |
38.88 |
% |
39.65 |
% |
0.44 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
4/27/12 |
0.35 |
% |
0.90 |
% |
8.28 |
13.76 |
45,674 |
533,344 |
-3.09 |
% |
-2.73 |
% |
0.00 |
% |
||||||||||||||||||||||||||||||||
|
Invesco V.I. Capital Appreciation Series I |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
3.96 |
12.31 |
89,775 |
916,907 |
-8.74 |
% |
-8.23 |
% |
0.15 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
4.33 |
13.47 |
125,240 |
1,039,884 |
14.46 |
% |
14.63 |
% |
0.77 |
% |
|||||||||||||||||||||||||||||||||
|
Invesco V.I. Core Equity Series I |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
14.58 |
16.90 |
75,685 |
1,241,087 |
7.18 |
% |
7.77 |
% |
0.86 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
13.53 |
22.60 |
78,520 |
1,197,551 |
28.09 |
% |
28.80 |
% |
1.38 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
10.82 |
17.62 |
85,490 |
1,011,781 |
12.86 |
% |
13.48 |
% |
0.87 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
7.87 |
15.58 |
141,711 |
1,500,187 |
-0.96 |
% |
-0.41 |
% |
0.96 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
7.93 |
15.71 |
171,742 |
1,593,445 |
8.57 |
% |
8.77 |
% |
0.97 |
% |
|||||||||||||||||||||||||||||||||
|
Invesco V.I. Diversified Income Series I |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.55 |
% |
0.55 |
% |
13.20 |
13.20 |
11,172 |
147,478 |
7.43 |
% |
7.43 |
% |
4.94 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.55 |
% |
0.55 |
% |
12.29 |
12.29 |
12,928 |
158,849 |
-0.50 |
% |
-0.50 |
% |
4.58 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.55 |
% |
0.55 |
% |
12.35 |
12.35 |
14,755 |
182,202 |
10.10 |
% |
10.10 |
% |
4.55 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.55 |
% |
0.80 |
% |
13.17 |
13.17 |
16,470 |
187,064 |
6.17 |
% |
6.17 |
% |
5.15 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.80 |
% |
0.80 |
% |
12.41 |
12.41 |
15,734 |
195,213 |
9.17 |
% |
9.17 |
% |
5.80 |
% |
|||||||||||||||||||||||||||||||||
M-39
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
Invesco V.I. International Growth Series I |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
$ |
13.48 |
$ |
26.66 |
10,160 |
$ |
164,088 |
-0.57 |
% |
-0.02 |
% |
0.89 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
13.48 |
29.99 |
39,088 |
519,827 |
17.95 |
% |
18.61 |
% |
1.23 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.75 |
25.39 |
22,492 |
454,898 |
14.50 |
% |
15.13 |
% |
1.46 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
11.07 |
22.14 |
23,605 |
423,751 |
-7.58 |
% |
-7.06 |
% |
1.51 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
12.02 |
23.92 |
23,170 |
445,157 |
11.85 |
% |
12.02 |
% |
2.30 |
% |
|||||||||||||||||||||||||||||||||
|
Janus Aspen Balanced Institutional Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
15.95 |
22.76 |
12,052 |
193,799 |
7.52 |
% |
8.13 |
% |
1.76 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
14.75 |
21.16 |
12,138 |
180,521 |
19.09 |
% |
19.73 |
% |
1.50 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.32 |
17.77 |
14,389 |
178,488 |
12.61 |
% |
13.22 |
% |
2.88 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
10.88 |
15.78 |
13,773 |
154,099 |
0.74 |
% |
1.28 |
% |
2.46 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
14.65 |
15.66 |
11,447 |
161,685 |
7.43 |
% |
7.58 |
% |
2.68 |
% |
|||||||||||||||||||||||||||||||||
|
Janus Aspen Balanced Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
13.93 |
23.98 |
19,895 |
341,175 |
7.27 |
% |
7.86 |
% |
1.49 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
12.98 |
23.27 |
20,002 |
326,703 |
18.73 |
% |
19.38 |
% |
1.34 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
17.18 |
19.57 |
19,838 |
274,564 |
12.36 |
% |
12.69 |
% |
2.50 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.60 |
% |
0.90 |
% |
15.25 |
17.39 |
18,143 |
296,865 |
0.45 |
% |
0.75 |
% |
2.11 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.60 |
% |
0.90 |
% |
15.14 |
17.28 |
21,724 |
353,508 |
7.15 |
% |
7.47 |
% |
2.48 |
% |
|||||||||||||||||||||||||||||||||
|
Janus Aspen Enterprise Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.20 |
% |
0.90 |
% |
15.68 |
39.57 |
5,553 |
130,339 |
11.24 |
% |
11.85 |
% |
0.03 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
14.01 |
35.52 |
5,806 |
125,174 |
30.86 |
% |
31.58 |
% |
0.37 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
13.71 |
27.10 |
6,509 |
104,176 |
15.94 |
% |
16.58 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
11.76 |
23.33 |
4,948 |
93,282 |
-2.53 |
% |
-2.00 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
16.62 |
23.90 |
5,219 |
100,407 |
24.39 |
% |
24.90 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
Janus Aspen Global Research Institutional Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
12.62 |
16.54 |
24,343 |
400,985 |
6.46 |
% |
7.07 |
% |
1.08 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
11.86 |
15.44 |
24,036 |
370,854 |
27.31 |
% |
27.98 |
% |
1.20 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
9.31 |
12.07 |
26,929 |
324,451 |
19.04 |
% |
19.66 |
% |
0.87 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
5.70 |
10.09 |
30,556 |
294,363 |
-14.53 |
% |
-14.04 |
% |
0.60 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
6.66 |
9.15 |
39,827 |
322,383 |
14.79 |
% |
14.97 |
% |
0.60 |
% |
|||||||||||||||||||||||||||||||||
|
Janus Aspen Global Research Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
13.64 |
17.65 |
3,100 |
48,348 |
6.22 |
% |
6.81 |
% |
0.95 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
12.77 |
16.62 |
3,364 |
49,342 |
26.93 |
% |
27.62 |
% |
0.94 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
11.48 |
14.54 |
6,237 |
72,295 |
18.79 |
% |
18.97 |
% |
0.80 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.75 |
% |
0.90 |
% |
9.66 |
12.22 |
5,841 |
58,312 |
-14.76 |
% |
-14.63 |
% |
0.50 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.75 |
% |
0.90 |
% |
11.33 |
14.32 |
5,415 |
63,295 |
14.49 |
% |
14.66 |
% |
0.50 |
% |
|||||||||||||||||||||||||||||||||
|
Janus Aspen Global Technology Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
15.21 |
18.89 |
621 |
11,588 |
8.37 |
% |
8.96 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
14.03 |
17.34 |
772 |
13,254 |
34.18 |
% |
34.92 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
10.46 |
12.85 |
856 |
10,917 |
18.08 |
% |
18.73 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
8.86 |
10.82 |
1,615 |
17,411 |
-9.48 |
% |
-8.98 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
5.08 |
9.79 |
5,746 |
33,614 |
23.28 |
% |
23.47 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Baron Growth Opportunities Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.50 |
% |
0.90 |
% |
19.12 |
25.75 |
9,777 |
245,121 |
4.18 |
% |
4.60 |
% |
0.43 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.50 |
% |
0.90 |
% |
18.36 |
24.61 |
9,703 |
232,607 |
39.15 |
% |
39.72 |
% |
0.74 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.50 |
% |
0.90 |
% |
13.19 |
17.62 |
2,369 |
37,266 |
17.46 |
% |
17.97 |
% |
1.31 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.50 |
% |
0.90 |
% |
11.23 |
14.93 |
2,590 |
31,787 |
3.35 |
% |
3.78 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.90 |
% |
10.86 |
14.39 |
2,040 |
25,899 |
25.56 |
% |
26.07 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Baron Growth Opportunities Service Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
16.41 |
31.37 |
29,742 |
642,257 |
3.91 |
% |
4.74 |
% |
0.17 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
15.71 |
30.19 |
30,047 |
629,157 |
38.81 |
% |
40.00 |
% |
0.47 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
12.32 |
21.75 |
25,133 |
369,657 |
17.16 |
% |
18.16 |
% |
1.29 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
10.48 |
18.56 |
20,328 |
255,228 |
3.09 |
% |
3.92 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
10.14 |
18.00 |
16,475 |
229,221 |
25.22 |
% |
26.23 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP BlackRock Emerging Markets RPM Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
8.87 |
8.93 |
20,909 |
186,679 |
-5.44 |
% |
-5.03 |
% |
1.72 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
7/24/13 |
0.15 |
% |
0.60 |
% |
9.38 |
9.40 |
10,250 |
96,372 |
3.85 |
% |
4.44 |
% |
1.02 |
% |
||||||||||||||||||||||||||||||||
M-40
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
LVIP BlackRock Equity Dividend RPM Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
$ |
13.14 |
$ |
17.59 |
22,084 |
$ |
370,434 |
2.56 |
% |
3.33 |
% |
1.70 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
12.81 |
17.02 |
26,578 |
414,210 |
17.15 |
% |
18.14 |
% |
1.88 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
10.93 |
14.41 |
17,447 |
222,561 |
15.94 |
% |
16.81 |
% |
0.69 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
9.43 |
11.21 |
16,078 |
177,536 |
-3.46 |
% |
-2.94 |
% |
1.02 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
11.02 |
12.19 |
13,593 |
159,113 |
17.05 |
% |
17.34 |
% |
1.82 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP BlackRock Inflation Protected Bond Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
11.21 |
11.45 |
50,069 |
567,350 |
2.45 |
% |
2.91 |
% |
1.40 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
10.94 |
11.12 |
51,581 |
570,018 |
-8.92 |
% |
-8.51 |
% |
0.58 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.75 |
% |
12.01 |
12.16 |
34,616 |
419,076 |
5.87 |
% |
6.35 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.60 |
% |
11.35 |
11.43 |
18,441 |
209,956 |
11.47 |
% |
11.97 |
% |
2.82 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
5/21/10 |
0.15 |
% |
0.60 |
% |
10.18 |
10.21 |
9,365 |
95,408 |
1.29 |
% |
1.92 |
% |
1.35 |
% |
||||||||||||||||||||||||||||||||
|
LVIP Capital Growth Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.60 |
% |
15.59 |
21.43 |
23,537 |
480,765 |
10.69 |
% |
11.28 |
% |
0.19 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.60 |
% |
14.01 |
19.27 |
19,348 |
352,111 |
35.16 |
% |
35.92 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.60 |
% |
10.31 |
14.19 |
13,956 |
184,896 |
18.35 |
% |
18.92 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.60 |
% |
8.67 |
11.94 |
5,982 |
69,732 |
-9.55 |
% |
-9.15 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.60 |
% |
9.93 |
9.93 |
1,808 |
21,882 |
18.25 |
% |
18.25 |
% |
0.08 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Clarion Global Real Estate Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
9.80 |
17.51 |
48,529 |
573,193 |
12.87 |
% |
13.79 |
% |
2.68 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
8.69 |
15.40 |
51,016 |
522,441 |
2.38 |
% |
3.21 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
8.48 |
14.93 |
39,023 |
379,314 |
23.56 |
% |
24.54 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
6.87 |
11.99 |
40,022 |
287,010 |
-9.49 |
% |
-8.75 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
7.59 |
9.00 |
34,176 |
263,645 |
16.92 |
% |
17.84 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Columbia Small-Mid Cap Growth RPM Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
11.53 |
16.26 |
1,972 |
26,292 |
-7.87 |
% |
-7.44 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
12.51 |
17.57 |
1,697 |
24,421 |
24.03 |
% |
24.63 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.60 |
% |
10.08 |
14.10 |
1,490 |
16,915 |
5.80 |
% |
6.30 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
9.40 |
9.57 |
6,574 |
63,706 |
-8.42 |
% |
-8.05 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.90 |
% |
10.37 |
10.41 |
7,247 |
75,111 |
26.49 |
% |
26.61 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Delaware Bond Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
10.65 |
19.56 |
321,246 |
4,442,117 |
5.03 |
% |
5.87 |
% |
2.12 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
10.08 |
18.62 |
280,415 |
3,801,208 |
-3.18 |
% |
-2.40 |
% |
1.93 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.82 |
19.23 |
248,270 |
3,518,769 |
5.65 |
% |
6.50 |
% |
2.24 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
11.13 |
19.99 |
188,381 |
2,735,968 |
6.67 |
% |
7.53 |
% |
3.39 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
12.33 |
18.72 |
167,972 |
2,539,992 |
7.52 |
% |
8.39 |
% |
3.47 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Delaware Diversified Floating Rate Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
10.41 |
10.63 |
51,865 |
547,523 |
0.01 |
% |
0.47 |
% |
1.76 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
10.41 |
10.58 |
31,501 |
331,671 |
0.15 |
% |
0.60 |
% |
1.06 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.60 |
% |
10.40 |
10.52 |
17,451 |
182,800 |
3.60 |
% |
4.06 |
% |
1.96 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.60 |
% |
10.03 |
10.05 |
7,547 |
75,854 |
-0.84 |
% |
-0.74 |
% |
2.25 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
9/20/10 |
0.50 |
% |
0.60 |
% |
10.12 |
10.13 |
3,050 |
30,869 |
0.09 |
% |
1.08 |
% |
0.69 |
% |
||||||||||||||||||||||||||||||||
|
LVIP Delaware Foundation Aggressive Allocation Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
15.56 |
21.04 |
7,581 |
137,202 |
3.41 |
% |
3.98 |
% |
0.79 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
14.97 |
20.34 |
32,236 |
562,698 |
19.09 |
% |
19.82 |
% |
1.88 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.49 |
17.08 |
25,747 |
374,291 |
12.28 |
% |
12.89 |
% |
1.92 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
12.47 |
15.20 |
20,848 |
268,778 |
-2.91 |
% |
-2.51 |
% |
2.09 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.90 |
% |
12.38 |
15.65 |
20,028 |
266,644 |
11.48 |
% |
11.92 |
% |
2.95 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Delaware Growth and Income Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
14.77 |
21.59 |
11,758 |
222,082 |
12.50 |
% |
13.07 |
% |
1.84 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.75 |
% |
13.13 |
19.09 |
13,947 |
236,259 |
32.26 |
% |
33.14 |
% |
2.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.75 |
% |
9.91 |
14.34 |
12,773 |
162,930 |
14.45 |
% |
15.13 |
% |
1.11 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.75 |
% |
8.65 |
12.45 |
13,014 |
144,771 |
0.59 |
% |
0.99 |
% |
1.19 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.60 |
% |
8.60 |
11.34 |
10,626 |
117,435 |
12.26 |
% |
12.37 |
% |
1.04 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Delaware Social Awareness Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
15.64 |
27.92 |
17,023 |
371,302 |
14.17 |
% |
14.80 |
% |
1.55 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
17.07 |
26.55 |
17,121 |
333,910 |
34.47 |
% |
35.22 |
% |
1.79 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.62 |
19.71 |
8,208 |
125,761 |
14.25 |
% |
14.88 |
% |
0.80 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
10.99 |
17.23 |
7,931 |
106,117 |
-0.26 |
% |
0.29 |
% |
0.78 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
10.28 |
17.25 |
7,998 |
104,766 |
10.57 |
% |
11.04 |
% |
0.65 |
% |
|||||||||||||||||||||||||||||||||
M-41
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
LVIP Delaware Special Opportunities Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
$ |
14.63 |
$ |
22.24 |
16,338 |
$ |
331,634 |
6.67 |
% |
7.47 |
% |
1.87 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
13.71 |
20.69 |
9,197 |
170,389 |
32.60 |
% |
33.59 |
% |
1.94 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
10.34 |
15.49 |
2,306 |
26,880 |
13.91 |
% |
14.77 |
% |
0.45 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
9.08 |
13.50 |
5,880 |
57,280 |
-6.07 |
% |
-5.35 |
% |
0.33 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.90 |
% |
9.79 |
9.80 |
2,792 |
30,924 |
29.99 |
% |
30.08 |
% |
1.11 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Dimensional Non-U.S. Equity RPM Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
10.39 |
10.55 |
20,293 |
211,384 |
-8.06 |
% |
-7.65 |
% |
2.40 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
11.30 |
11.42 |
13,048 |
147,510 |
14.43 |
% |
14.92 |
% |
3.66 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.60 |
% |
9.88 |
9.94 |
537 |
5,312 |
18.07 |
% |
18.50 |
% |
2.38 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
10/6/11 |
0.15 |
% |
0.60 |
% |
8.36 |
8.39 |
604 |
5,062 |
1.17 |
% |
3.39 |
% |
0.27 |
% |
||||||||||||||||||||||||||||||||
|
LVIP Dimensional U.S. Equity RPM Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
14.70 |
14.94 |
27,298 |
402,703 |
4.07 |
% |
4.54 |
% |
1.11 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
14.12 |
14.29 |
18,829 |
266,128 |
28.40 |
% |
28.99 |
% |
2.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.60 |
% |
11.03 |
11.08 |
554 |
6,110 |
16.89 |
% |
17.16 |
% |
1.56 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
12/22/11 |
0.15 |
% |
0.50 |
% |
9.43 |
9.45 |
282 |
2,664 |
-0.06 |
% |
0.74 |
% |
0.00 |
% |
||||||||||||||||||||||||||||||||
|
LVIP Dimensional/Vanguard Total Bond Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
10.81 |
10.99 |
28,336 |
307,943 |
4.01 |
% |
4.48 |
% |
1.92 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
10.39 |
10.52 |
21,747 |
226,420 |
-3.34 |
% |
-2.90 |
% |
1.81 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.60 |
% |
10.75 |
10.83 |
10,441 |
112,404 |
3.11 |
% |
3.58 |
% |
3.17 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
10/3/11 |
0.15 |
% |
0.60 |
% |
10.43 |
10.46 |
1,504 |
15,730 |
0.25 |
% |
1.59 |
% |
0.10 |
% |
||||||||||||||||||||||||||||||||
|
LVIP Global Income Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.60 |
% |
11.31 |
12.69 |
40,301 |
488,492 |
1.33 |
% |
1.84 |
% |
0.54 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.60 |
% |
11.17 |
12.46 |
42,661 |
509,608 |
-3.40 |
% |
-2.91 |
% |
0.29 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.60 |
% |
11.56 |
12.83 |
26,614 |
330,130 |
7.04 |
% |
7.58 |
% |
2.20 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.60 |
% |
11.37 |
11.93 |
17,217 |
200,343 |
0.48 |
% |
0.98 |
% |
5.94 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.60 |
% |
11.81 |
11.81 |
2,081 |
24,220 |
9.58 |
% |
9.58 |
% |
3.61 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP JPMorgan High Yield Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
13.57 |
14.05 |
74,968 |
1,038,044 |
1.92 |
% |
2.69 |
% |
6.09 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
13.32 |
13.68 |
36,318 |
490,902 |
5.61 |
% |
6.41 |
% |
6.02 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
12.71 |
12.86 |
20,194 |
257,123 |
14.23 |
% |
14.75 |
% |
7.04 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.60 |
% |
11.13 |
11.21 |
6,525 |
72,827 |
2.17 |
% |
2.63 |
% |
6.89 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
6/9/10 |
0.15 |
% |
0.60 |
% |
10.89 |
10.92 |
792 |
8,642 |
5.71 |
% |
12.08 |
% |
4.40 |
% |
||||||||||||||||||||||||||||||||
|
LVIP JPMorgan Mid Cap Value RPM Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
13.62 |
20.02 |
18,143 |
297,627 |
7.14 |
% |
8.02 |
% |
0.90 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
12.96 |
18.55 |
15,930 |
234,284 |
23.25 |
% |
24.04 |
% |
0.60 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.60 |
% |
10.50 |
14.96 |
12,155 |
133,916 |
13.08 |
% |
13.64 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.60 |
% |
9.29 |
13.17 |
12,388 |
120,525 |
-2.37 |
% |
-1.90 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.60 |
% |
9.51 |
10.43 |
8,963 |
88,159 |
24.01 |
% |
24.64 |
% |
0.08 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Managed Risk Profile 2010 Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2012 |
0.60 |
% |
0.60 |
% |
11.84 |
11.84 |
7,524 |
89,061 |
7.89 |
% |
7.89 |
% |
2.21 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.60 |
% |
0.60 |
% |
10.97 |
10.97 |
7,865 |
86,279 |
0.64 |
% |
0.64 |
% |
0.78 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.60 |
% |
0.60 |
% |
10.90 |
10.90 |
8,182 |
89,180 |
10.80 |
% |
10.80 |
% |
1.08 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Managed Risk Profile 2020 Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.60 |
% |
0.60 |
% |
12.88 |
12.88 |
5,940 |
76,526 |
3.76 |
% |
3.76 |
% |
1.77 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.60 |
% |
0.60 |
% |
12.42 |
12.42 |
9,641 |
119,696 |
10.47 |
% |
10.47 |
% |
1.01 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.50 |
% |
0.60 |
% |
11.24 |
11.30 |
25,191 |
283,581 |
7.73 |
% |
7.84 |
% |
2.11 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.50 |
% |
0.60 |
% |
10.43 |
10.48 |
24,007 |
250,733 |
-0.41 |
% |
-0.31 |
% |
0.75 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.60 |
% |
10.48 |
10.51 |
23,786 |
249,343 |
11.36 |
% |
11.47 |
% |
0.96 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Managed Risk Profile 2030 Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.50 |
% |
0.60 |
% |
12.72 |
12.82 |
15,672 |
199,435 |
3.54 |
% |
3.64 |
% |
1.98 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.50 |
% |
0.60 |
% |
12.28 |
12.37 |
17,398 |
213,819 |
13.06 |
% |
13.18 |
% |
1.29 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.50 |
% |
0.60 |
% |
10.86 |
10.93 |
19,450 |
211,413 |
7.25 |
% |
7.36 |
% |
1.82 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.50 |
% |
0.60 |
% |
10.13 |
10.18 |
20,957 |
212,376 |
-1.16 |
% |
-1.06 |
% |
0.64 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.60 |
% |
10.25 |
10.29 |
21,592 |
221,352 |
11.87 |
% |
11.99 |
% |
0.80 |
% |
|||||||||||||||||||||||||||||||||
M-42
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
LVIP Managed Risk Profile 2040 Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.60 |
% |
$ |
12.06 |
$ |
14.27 |
10,878 |
$ |
140,208 |
2.86 |
% |
3.12 |
% |
2.10 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.60 |
% |
11.72 |
13.84 |
9,013 |
106,133 |
15.84 |
% |
16.09 |
% |
1.25 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.60 |
% |
10.12 |
11.92 |
10,844 |
110,092 |
6.48 |
% |
6.79 |
% |
1.71 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.60 |
% |
9.50 |
11.16 |
10,862 |
103,499 |
-2.05 |
% |
-1.76 |
% |
0.59 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.60 |
% |
9.70 |
9.74 |
10,905 |
106,102 |
12.98 |
% |
13.10 |
% |
0.41 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Managed Risk Profile Conservative Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
12.45 |
17.01 |
89,878 |
1,494,333 |
4.75 |
% |
5.54 |
% |
3.98 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.36 |
16.23 |
18,950 |
270,625 |
8.77 |
% |
9.59 |
% |
2.24 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
12.22 |
14.93 |
16,438 |
214,294 |
8.79 |
% |
9.61 |
% |
4.21 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
11.55 |
14.08 |
11,401 |
135,450 |
2.76 |
% |
3.55 |
% |
2.54 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
11.15 |
13.65 |
7,897 |
100,895 |
9.51 |
% |
10.50 |
% |
5.03 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Managed Risk Profile Growth Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
12.13 |
16.44 |
224,962 |
3,495,232 |
2.54 |
% |
3.36 |
% |
2.20 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
11.80 |
15.97 |
195,571 |
2,941,907 |
12.53 |
% |
13.43 |
% |
1.79 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
10.45 |
14.13 |
185,265 |
2,467,361 |
8.17 |
% |
9.03 |
% |
2.51 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
9.63 |
13.01 |
206,527 |
2,526,786 |
-0.90 |
% |
-0.10 |
% |
1.99 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
9.69 |
13.08 |
201,216 |
2,489,451 |
11.71 |
% |
12.61 |
% |
2.93 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Managed Risk Profile Moderate Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
13.36 |
17.22 |
232,807 |
3,604,095 |
3.21 |
% |
4.04 |
% |
2.09 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
12.90 |
16.62 |
206,715 |
3,073,133 |
10.85 |
% |
11.74 |
% |
1.85 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.60 |
14.93 |
195,749 |
2,619,721 |
8.61 |
% |
9.48 |
% |
3.34 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
10.62 |
13.70 |
180,222 |
2,206,929 |
0.26 |
% |
1.07 |
% |
1.85 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
10.51 |
13.61 |
157,580 |
1,951,586 |
10.96 |
% |
11.85 |
% |
3.27 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP MFS International Growth Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
9.15 |
13.70 |
29,976 |
373,101 |
-5.90 |
% |
-5.14 |
% |
1.20 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
9.65 |
14.45 |
21,986 |
281,613 |
12.72 |
% |
13.50 |
% |
0.97 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
8.50 |
12.74 |
15,310 |
168,047 |
18.31 |
% |
19.28 |
% |
0.81 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
7.13 |
10.69 |
15,663 |
136,856 |
-10.72 |
% |
-9.96 |
% |
3.06 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
8.56 |
8.69 |
13,497 |
122,524 |
12.09 |
% |
12.54 |
% |
0.82 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP MFS Value Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.60 |
% |
14.97 |
20.78 |
86,766 |
1,651,765 |
9.84 |
% |
10.40 |
% |
2.51 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.60 |
% |
13.63 |
18.83 |
78,356 |
1,336,527 |
35.15 |
% |
35.82 |
% |
1.88 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.60 |
% |
10.08 |
13.87 |
63,677 |
787,134 |
15.63 |
% |
16.22 |
% |
1.61 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.60 |
% |
8.72 |
11.94 |
37,096 |
368,573 |
-0.70 |
% |
-0.20 |
% |
1.74 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.60 |
% |
8.78 |
9.25 |
21,601 |
203,762 |
10.92 |
% |
11.47 |
% |
1.55 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Mid-Cap Value Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
13.95 |
22.25 |
15,676 |
298,475 |
7.32 |
% |
8.18 |
% |
0.36 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.00 |
20.57 |
10,030 |
163,003 |
32.95 |
% |
34.02 |
% |
0.23 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
9.78 |
15.36 |
8,296 |
90,333 |
23.01 |
% |
23.99 |
% |
0.43 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
7.95 |
12.39 |
3,481 |
32,025 |
-10.14 |
% |
-9.41 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
8.85 |
11.13 |
2,752 |
25,905 |
22.78 |
% |
23.78 |
% |
0.30 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Mondrian International Value Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
9.51 |
25.36 |
58,661 |
837,738 |
-3.42 |
% |
-2.54 |
% |
4.17 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
9.81 |
26.22 |
47,492 |
793,013 |
20.69 |
% |
21.84 |
% |
2.55 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
8.10 |
21.68 |
48,115 |
672,952 |
8.63 |
% |
9.67 |
% |
2.88 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
7.44 |
19.93 |
46,332 |
617,346 |
-5.07 |
% |
-4.31 |
% |
3.19 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
7.81 |
20.96 |
41,727 |
598,401 |
1.52 |
% |
1.97 |
% |
3.45 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Money Market Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
9.73 |
11.08 |
326,046 |
3,309,008 |
-0.87 |
% |
-0.12 |
% |
0.03 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
9.78 |
11.14 |
759,105 |
7,792,362 |
-0.87 |
% |
-0.08 |
% |
0.02 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
9.87 |
11.19 |
688,615 |
7,230,080 |
-0.87 |
% |
-0.07 |
% |
0.03 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
9.95 |
12.27 |
540,846 |
5,787,277 |
-0.87 |
% |
-0.07 |
% |
0.03 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
9.99 |
12.37 |
442,354 |
4,881,701 |
-0.85 |
% |
-0.05 |
% |
0.05 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP SSgA Bond Index Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
11.66 |
13.08 |
27,542 |
336,513 |
4.80 |
% |
5.64 |
% |
1.58 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
11.09 |
12.38 |
34,503 |
404,279 |
-3.45 |
% |
-2.67 |
% |
2.12 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.45 |
12.72 |
31,797 |
387,017 |
2.91 |
% |
3.75 |
% |
3.31 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
11.51 |
12.26 |
15,707 |
188,183 |
6.42 |
% |
7.29 |
% |
4.22 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
11.18 |
11.42 |
11,529 |
129,487 |
5.00 |
% |
5.86 |
% |
2.31 |
% |
|||||||||||||||||||||||||||||||||
M-43
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
LVIP SSgA Conservative Index Allocation Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
$ |
12.98 |
$ |
13.24 |
10,723 |
$ |
140,857 |
4.10 |
% |
4.57 |
% |
1.73 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.75 |
% |
12.41 |
12.66 |
13,816 |
173,444 |
6.00 |
% |
6.64 |
% |
1.01 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
3/20/12 |
0.15 |
% |
0.75 |
% |
11.70 |
11.87 |
26,773 |
315,182 |
0.64 |
% |
4.27 |
% |
2.29 |
% |
||||||||||||||||||||||||||||||||
|
LVIP SSgA Conservative Structured Allocation Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
12.98 |
13.22 |
440 |
5,741 |
4.90 |
% |
5.28 |
% |
2.81 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
12.38 |
12.38 |
321 |
3,993 |
6.43 |
% |
6.43 |
% |
2.84 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
5/14/12 |
0.60 |
% |
0.60 |
% |
11.63 |
11.63 |
90 |
1,047 |
5.67 |
% |
5.67 |
% |
5.10 |
% |
||||||||||||||||||||||||||||||||
|
LVIP SSgA Developed International 150 Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
10.00 |
14.61 |
5,699 |
66,517 |
0.31 |
% |
0.76 |
% |
4.60 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
9.97 |
13.38 |
2,470 |
29,741 |
19.59 |
% |
20.11 |
% |
3.08 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.75 |
% |
8.28 |
11.19 |
1,941 |
18,024 |
12.80 |
% |
13.45 |
% |
1.12 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.75 |
% |
7.34 |
9.70 |
6,099 |
46,128 |
-12.76 |
% |
-12.28 |
% |
2.47 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.75 |
% |
8.45 |
8.45 |
5,284 |
45,780 |
6.62 |
% |
6.62 |
% |
1.41 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP SSgA Emerging Markets 100 Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
8.62 |
13.56 |
18,356 |
219,697 |
-4.23 |
% |
-3.37 |
% |
3.12 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
8.95 |
14.03 |
16,403 |
202,655 |
-3.70 |
% |
-2.69 |
% |
2.59 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
12.38 |
14.42 |
10,525 |
143,247 |
11.64 |
% |
12.54 |
% |
2.26 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
12.44 |
12.81 |
13,559 |
169,301 |
-15.70 |
% |
-14.89 |
% |
2.62 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
14.81 |
15.06 |
9,313 |
138,053 |
26.82 |
% |
27.64 |
% |
1.41 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP SSgA Global Tactical Allocation RPM Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
13.85 |
15.10 |
67,486 |
1,009,368 |
3.04 |
% |
3.82 |
% |
2.46 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
13.40 |
14.60 |
54,350 |
785,002 |
8.94 |
% |
9.64 |
% |
1.68 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
12.26 |
13.36 |
79,438 |
1,055,708 |
10.15 |
% |
10.98 |
% |
3.65 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
11.77 |
12.08 |
64,442 |
773,158 |
-0.66 |
% |
0.07 |
% |
1.35 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.90 |
% |
11.84 |
12.11 |
52,313 |
633,412 |
7.76 |
% |
8.19 |
% |
1.10 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP SSgA International Index Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
8.85 |
13.43 |
5,236 |
63,490 |
-6.68 |
% |
-5.98 |
% |
2.95 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
9.49 |
14.13 |
4,436 |
56,920 |
19.90 |
% |
20.80 |
% |
2.80 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
7.91 |
11.69 |
1,794 |
18,075 |
17.07 |
% |
17.95 |
% |
1.90 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
6.76 |
9.91 |
1,781 |
15,357 |
-13.16 |
% |
-12.51 |
% |
1.65 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.90 |
% |
7.78 |
7.84 |
1,217 |
11,689 |
6.08 |
% |
6.41 |
% |
2.38 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP SSgA Large Cap 100 Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
16.46 |
23.99 |
18,899 |
438,718 |
15.74 |
% |
16.55 |
% |
2.62 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
15.08 |
20.58 |
18,919 |
371,747 |
34.63 |
% |
35.65 |
% |
2.55 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
11.20 |
15.17 |
16,066 |
233,869 |
11.22 |
% |
12.05 |
% |
2.70 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
10.07 |
13.54 |
6,891 |
72,442 |
1.42 |
% |
2.19 |
% |
1.70 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.90 |
% |
9.93 |
10.01 |
6,334 |
63,404 |
18.12 |
% |
18.48 |
% |
1.75 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP SSgA Moderate Index Allocation Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
12.43 |
14.27 |
29,389 |
411,967 |
3.79 |
% |
4.26 |
% |
2.21 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
13.48 |
13.69 |
23,889 |
322,530 |
11.79 |
% |
12.30 |
% |
2.68 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.75 |
% |
12.19 |
12.19 |
8,158 |
98,667 |
11.54 |
% |
11.54 |
% |
3.52 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
3/30/11 |
0.15 |
% |
0.15 |
% |
10.93 |
10.93 |
2,109 |
23,054 |
-3.41 |
% |
-3.41 |
% |
0.45 |
% |
||||||||||||||||||||||||||||||||
|
LVIP SSgA Moderate Structured Allocation Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
12.48 |
14.27 |
44,852 |
635,077 |
4.93 |
% |
5.40 |
% |
3.05 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
13.33 |
13.54 |
35,752 |
480,362 |
12.13 |
% |
12.64 |
% |
3.05 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.75 |
% |
11.89 |
12.02 |
22,564 |
270,328 |
9.88 |
% |
10.37 |
% |
5.06 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
3/29/11 |
0.15 |
% |
0.60 |
% |
10.82 |
10.89 |
13,080 |
142,307 |
-5.32 |
% |
-2.61 |
% |
0.34 |
% |
||||||||||||||||||||||||||||||||
|
LVIP SSgA Moderately Aggressive Index Allocation Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
12.53 |
14.59 |
16,473 |
235,907 |
3.39 |
% |
3.85 |
% |
2.36 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
13.83 |
14.05 |
13,526 |
187,501 |
14.12 |
% |
14.64 |
% |
2.03 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.75 |
% |
12.25 |
12.25 |
7,156 |
87,279 |
12.69 |
% |
12.69 |
% |
3.32 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
8/2/11 |
0.15 |
% |
0.15 |
% |
10.87 |
10.87 |
3,177 |
34,544 |
-3.54 |
% |
-3.54 |
% |
0.09 |
% |
||||||||||||||||||||||||||||||||
|
LVIP SSgA Moderately Aggressive Structured Allocation Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
12.54 |
14.82 |
70,868 |
1,036,692 |
4.65 |
% |
5.12 |
% |
4.19 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
13.89 |
14.10 |
34,584 |
482,142 |
14.46 |
% |
14.98 |
% |
7.48 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.75 |
% |
12.13 |
12.27 |
2,084 |
25,460 |
10.72 |
% |
11.21 |
% |
5.67 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
6/1/11 |
0.15 |
% |
0.60 |
% |
10.96 |
11.03 |
918 |
10,097 |
-6.14 |
% |
0.19 |
% |
0.37 |
% |
||||||||||||||||||||||||||||||||
M-44
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
LVIP SSgA S&P 500 Index Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
$ |
14.89 |
$ |
21.97 |
90,332 |
$ |
1,748,944 |
12.41 |
% |
13.26 |
% |
2.12 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
13.21 |
19.39 |
81,066 |
1,374,731 |
30.82 |
% |
31.80 |
% |
2.05 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
10.07 |
14.71 |
53,944 |
676,593 |
14.61 |
% |
15.47 |
% |
1.16 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
8.76 |
12.74 |
37,945 |
386,401 |
0.94 |
% |
1.70 |
% |
1.04 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.90 |
% |
8.65 |
10.69 |
25,283 |
259,480 |
13.70 |
% |
14.16 |
% |
1.53 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP SSgA Small-Cap Index Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
14.48 |
21.68 |
15,351 |
267,671 |
3.74 |
% |
4.52 |
% |
0.94 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
13.96 |
20.74 |
12,986 |
211,634 |
36.68 |
% |
37.70 |
% |
0.88 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
10.21 |
15.06 |
9,077 |
96,282 |
14.86 |
% |
15.80 |
% |
0.67 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
8.89 |
13.01 |
11,935 |
107,921 |
-5.42 |
% |
-4.55 |
% |
0.33 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.90 |
% |
9.40 |
9.54 |
11,891 |
113,278 |
25.05 |
% |
25.56 |
% |
0.60 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP SSgA Small-Mid Cap 200 Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
15.90 |
22.20 |
11,816 |
221,271 |
3.67 |
% |
4.14 |
% |
4.08 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
18.49 |
21.32 |
8,062 |
161,686 |
33.68 |
% |
34.29 |
% |
4.84 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.75 |
% |
13.83 |
15.88 |
2,419 |
36,590 |
13.11 |
% |
13.66 |
% |
2.60 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.60 |
% |
12.33 |
13.97 |
2,674 |
36,130 |
-2.80 |
% |
-2.36 |
% |
1.75 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.60 |
% |
12.68 |
12.75 |
2,548 |
35,295 |
26.93 |
% |
27.36 |
% |
3.00 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP T. Rowe Price Growth Stock Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
16.01 |
23.07 |
24,956 |
468,180 |
7.74 |
% |
8.55 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
14.86 |
21.25 |
21,106 |
372,054 |
37.80 |
% |
38.84 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
10.78 |
15.31 |
20,907 |
267,443 |
17.25 |
% |
18.13 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
9.19 |
12.96 |
8,594 |
88,543 |
-2.56 |
% |
-1.80 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.90 |
% |
9.54 |
9.58 |
3,593 |
36,187 |
16.03 |
% |
16.15 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP T. Rowe Price Structured Mid-Cap Growth Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
16.16 |
26.53 |
10,398 |
237,704 |
10.63 |
% |
11.42 |
% |
0.13 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
15.84 |
30.06 |
26,269 |
576,533 |
33.82 |
% |
34.59 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
11.82 |
22.46 |
20,273 |
342,524 |
15.34 |
% |
16.20 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
10.23 |
19.46 |
15,610 |
225,631 |
-4.71 |
% |
-3.91 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.90 |
% |
10.70 |
20.40 |
12,484 |
190,521 |
27.22 |
% |
27.73 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Templeton Growth RPM Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
10.86 |
15.82 |
12,856 |
160,402 |
-2.86 |
% |
-2.14 |
% |
1.62 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.90 |
% |
11.18 |
16.17 |
10,358 |
128,180 |
18.89 |
% |
19.77 |
% |
1.54 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.90 |
% |
9.41 |
13.50 |
7,776 |
75,482 |
20.32 |
% |
21.08 |
% |
2.05 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.15 |
% |
0.90 |
% |
7.82 |
11.15 |
7,759 |
62,376 |
-4.02 |
% |
-3.23 |
% |
1.93 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.15 |
% |
0.90 |
% |
8.15 |
8.26 |
8,926 |
74,352 |
5.61 |
% |
6.04 |
% |
1.99 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP UBS Large Cap Growth RPM Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
13.30 |
20.70 |
13,605 |
237,627 |
4.40 |
% |
5.22 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
12.64 |
19.83 |
13,895 |
231,003 |
24.37 |
% |
25.38 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
10.08 |
16.93 |
13,719 |
182,286 |
15.35 |
% |
16.23 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
8.68 |
14.65 |
12,429 |
141,995 |
-6.53 |
% |
-5.83 |
% |
0.24 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
6.74 |
15.65 |
11,363 |
133,639 |
10.35 |
% |
11.16 |
% |
0.80 |
% |
|||||||||||||||||||||||||||||||||
|
LVIP Vanguard Domestic Equity ETF Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
15.61 |
15.87 |
4,938 |
77,520 |
11.54 |
% |
12.03 |
% |
2.29 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
14.00 |
14.00 |
3,534 |
49,472 |
29.74 |
% |
29.74 |
% |
1.95 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
2/16/12 |
0.60 |
% |
0.60 |
% |
10.79 |
10.79 |
899 |
9,699 |
5.45 |
% |
5.45 |
% |
2.00 |
% |
||||||||||||||||||||||||||||||||
|
LVIP Vanguard International Equity ETF Standard Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.60 |
% |
10.78 |
10.96 |
15,408 |
167,805 |
-5.21 |
% |
-4.79 |
% |
2.15 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.15 |
% |
0.60 |
% |
11.38 |
11.51 |
12,864 |
146,471 |
14.06 |
% |
14.55 |
% |
3.04 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.15 |
% |
0.60 |
% |
9.98 |
9.98 |
981 |
9,791 |
18.64 |
% |
18.64 |
% |
6.53 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
8/24/11 |
0.60 |
% |
0.60 |
% |
8.41 |
8.41 |
166 |
1,400 |
-5.53 |
% |
-5.53 |
% |
0.00 |
% |
||||||||||||||||||||||||||||||||
|
M Capital Appreciation |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.50 |
% |
0.50 |
% |
28.62 |
28.62 |
159 |
4,542 |
11.85 |
% |
11.85 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.50 |
% |
0.50 |
% |
25.59 |
25.59 |
140 |
3,579 |
38.48 |
% |
38.48 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.50 |
% |
0.50 |
% |
18.48 |
18.48 |
143 |
2,650 |
16.84 |
% |
16.84 |
% |
0.36 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.50 |
% |
0.50 |
% |
15.81 |
15.81 |
118 |
1,867 |
-7.68 |
% |
-7.68 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.50 |
% |
17.13 |
17.13 |
95 |
1,632 |
26.43 |
% |
26.43 |
% |
0.17 |
% |
|||||||||||||||||||||||||||||||||
M-45
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
M International Equity |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.50 |
% |
0.50 |
% |
$ |
13.52 |
$ |
13.52 |
441 |
$ |
5,960 |
-7.51 |
% |
-7.51 |
% |
2.53 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.50 |
% |
0.50 |
% |
14.61 |
14.61 |
353 |
5,160 |
15.75 |
% |
15.75 |
% |
2.50 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.50 |
% |
0.50 |
% |
12.62 |
12.62 |
318 |
4,017 |
20.09 |
% |
20.09 |
% |
2.29 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.50 |
% |
0.50 |
% |
10.51 |
10.51 |
258 |
2,709 |
-13.99 |
% |
-13.99 |
% |
3.77 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.50 |
% |
12.22 |
12.22 |
174 |
2,130 |
4.03 |
% |
4.03 |
% |
3.86 |
% |
|||||||||||||||||||||||||||||||||
|
M Large Cap Growth |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.50 |
% |
0.50 |
% |
22.97 |
22.97 |
383 |
8,798 |
9.66 |
% |
9.66 |
% |
0.04 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.50 |
% |
0.50 |
% |
20.95 |
20.95 |
357 |
7,485 |
35.49 |
% |
35.49 |
% |
0.56 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.50 |
% |
0.50 |
% |
15.46 |
15.46 |
323 |
4,996 |
18.72 |
% |
18.72 |
% |
0.04 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.50 |
% |
0.50 |
% |
13.02 |
13.02 |
283 |
3,687 |
-1.29 |
% |
-1.29 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.50 |
% |
13.19 |
13.19 |
230 |
3,035 |
22.46 |
% |
22.46 |
% |
0.26 |
% |
|||||||||||||||||||||||||||||||||
|
M Large Cap Value |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.50 |
% |
0.50 |
% |
18.85 |
18.85 |
458 |
8,636 |
9.13 |
% |
9.13 |
% |
1.26 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.50 |
% |
0.50 |
% |
17.28 |
17.28 |
420 |
7,265 |
33.56 |
% |
33.56 |
% |
2.72 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.50 |
% |
0.50 |
% |
12.93 |
12.93 |
394 |
5,093 |
16.71 |
% |
16.71 |
% |
0.74 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.50 |
% |
0.50 |
% |
11.08 |
11.08 |
343 |
3,803 |
-4.58 |
% |
-4.58 |
% |
0.33 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.50 |
% |
11.61 |
11.61 |
267 |
3,103 |
8.74 |
% |
8.74 |
% |
0.53 |
% |
|||||||||||||||||||||||||||||||||
|
MFS VIT Core Equity Initial Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.35 |
% |
16.07 |
19.33 |
433 |
7,034 |
10.85 |
% |
10.89 |
% |
0.92 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.75 |
% |
14.49 |
17.44 |
248 |
4,493 |
34.10 |
% |
34.13 |
% |
1.31 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.35 |
% |
13.00 |
13.00 |
160 |
1,739 |
15.82 |
% |
15.82 |
% |
1.04 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.75 |
% |
11.23 |
16.12 |
337 |
5,012 |
-1.84 |
% |
-1.37 |
% |
0.76 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.75 |
% |
12.59 |
16.40 |
1,103 |
17,662 |
16.34 |
% |
16.37 |
% |
1.00 |
% |
|||||||||||||||||||||||||||||||||
|
MFS VIT Growth Initial Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
16.04 |
29.77 |
41,647 |
825,782 |
7.97 |
% |
8.83 |
% |
0.10 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
15.22 |
29.87 |
42,297 |
814,730 |
35.63 |
% |
36.77 |
% |
0.23 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.23 |
21.99 |
48,165 |
645,320 |
16.33 |
% |
17.26 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
6.35 |
18.88 |
48,964 |
543,039 |
-1.22 |
% |
-0.47 |
% |
0.20 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
6.41 |
19.08 |
55,505 |
539,206 |
14.30 |
% |
15.16 |
% |
0.12 |
% |
|||||||||||||||||||||||||||||||||
|
MFS VIT Total Return Initial Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
13.76 |
20.35 |
86,867 |
1,402,374 |
7.53 |
% |
8.34 |
% |
1.82 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
12.72 |
19.79 |
87,737 |
1,360,335 |
17.98 |
% |
18.87 |
% |
1.75 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
10.80 |
16.75 |
89,258 |
1,173,837 |
10.26 |
% |
11.09 |
% |
2.62 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
9.76 |
15.73 |
97,777 |
1,216,199 |
0.86 |
% |
1.62 |
% |
2.61 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
9.65 |
15.58 |
96,405 |
1,242,437 |
8.94 |
% |
9.75 |
% |
2.59 |
% |
|||||||||||||||||||||||||||||||||
|
MFS VIT Utilities Initial Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
14.74 |
52.56 |
62,555 |
1,435,358 |
11.72 |
% |
12.66 |
% |
2.13 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
13.12 |
46.98 |
58,115 |
1,226,719 |
19.44 |
% |
20.42 |
% |
2.32 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
11.14 |
39.27 |
51,803 |
916,299 |
12.47 |
% |
13.42 |
% |
5.73 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
9.82 |
34.87 |
92,356 |
1,421,990 |
5.83 |
% |
6.69 |
% |
3.25 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
9.20 |
32.90 |
68,744 |
1,366,816 |
12.79 |
% |
13.65 |
% |
3.17 |
% |
|||||||||||||||||||||||||||||||||
|
NB AMT Large Cap Value I Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.35 |
% |
16.64 |
16.64 |
9,808 |
163,208 |
9.47 |
% |
9.47 |
% |
0.75 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.35 |
% |
15.20 |
15.20 |
10,064 |
152,974 |
30.68 |
% |
30.68 |
% |
1.17 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.35 |
% |
11.63 |
11.63 |
10,587 |
123,153 |
16.19 |
% |
16.19 |
% |
0.43 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.35 |
% |
10.01 |
10.01 |
10,920 |
109,326 |
-11.67 |
% |
-11.67 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.75 |
% |
13.10 |
13.10 |
9,857 |
124,964 |
14.80 |
% |
14.80 |
% |
0.69 |
% |
|||||||||||||||||||||||||||||||||
|
NB AMT Mid Cap Growth I Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.20 |
% |
0.90 |
% |
14.71 |
32.29 |
49,554 |
1,034,605 |
6.62 |
% |
7.21 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
13.72 |
30.24 |
79,307 |
1,434,486 |
31.42 |
% |
32.15 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
10.41 |
22.97 |
69,885 |
1,180,974 |
11.41 |
% |
12.02 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
8.34 |
20.59 |
77,785 |
1,229,619 |
-0.43 |
% |
0.12 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
8.36 |
20.65 |
83,971 |
1,274,162 |
27.94 |
% |
28.58 |
% |
0.00 |
% |
|||||||||||||||||||||||||||||||||
|
NB AMT Mid Cap Intrinsic Value I Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.20 |
% |
0.90 |
% |
15.58 |
31.51 |
27,395 |
456,247 |
12.81 |
% |
13.44 |
% |
1.07 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
17.03 |
29.59 |
19,938 |
410,247 |
35.80 |
% |
36.57 |
% |
1.18 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.47 |
21.76 |
20,125 |
329,722 |
14.49 |
% |
15.12 |
% |
0.62 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
10.83 |
18.97 |
20,337 |
290,620 |
-7.38 |
% |
-6.83 |
% |
0.67 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
12.93 |
20.44 |
19,099 |
300,796 |
25.04 |
% |
25.55 |
% |
0.74 |
% |
|||||||||||||||||||||||||||||||||
M-46
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
|
Subaccount |
Year |
Commencement Date(1) |
Minimum Fee Rate(2) |
Maximum Fee Rate(2) |
Minimum Unit Value(3) |
Maximum Unit Value(3) |
Units Outstanding |
Net Assets |
Minimum Total Return(4) |
Maximum Total Return(4) |
Investment Income Ratio(5) |
||||||||||||||||||||||||||||||||||||
|
PIMCO VIT CommodityRealReturn Strategy Administrative Class |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.10 |
% |
0.90 |
% |
$ |
7.28 |
$ |
10.61 |
70,860 |
$ |
669,363 |
-19.16 |
% |
-18.51 |
% |
0.36 |
% |
||||||||||||||||||||||||||||||
|
2013 |
0.10 |
% |
0.90 |
% |
10.27 |
13.01 |
64,120 |
749,501 |
-15.46 |
% |
-14.77 |
% |
1.53 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.10 |
% |
0.90 |
% |
12.11 |
15.27 |
36,367 |
506,945 |
4.45 |
% |
5.30 |
% |
2.82 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.10 |
% |
0.90 |
% |
12.99 |
14.50 |
21,856 |
301,643 |
-8.39 |
% |
-7.65 |
% |
14.15 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.10 |
% |
0.90 |
% |
15.50 |
15.57 |
7,345 |
112,882 |
23.41 |
% |
23.78 |
% |
16.33 |
% |
|||||||||||||||||||||||||||||||||
|
Putnam VT Global Health Care Class IB |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
18.88 |
29.35 |
6,335 |
141,590 |
26.50 |
% |
27.20 |
% |
0.23 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
14.84 |
23.20 |
5,758 |
102,144 |
40.40 |
% |
41.17 |
% |
1.08 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.69 |
16.52 |
5,700 |
71,972 |
21.17 |
% |
21.84 |
% |
1.25 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
11.32 |
13.64 |
5,032 |
60,424 |
-2.06 |
% |
-1.92 |
% |
0.82 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.75 |
% |
0.90 |
% |
11.56 |
13.92 |
4,583 |
58,040 |
1.55 |
% |
1.70 |
% |
1.99 |
% |
|||||||||||||||||||||||||||||||||
|
Putnam VT Growth & Income Class IB |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
15.98 |
19.11 |
1,685 |
27,715 |
9.74 |
% |
10.35 |
% |
1.31 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
14.48 |
17.42 |
1,708 |
25,489 |
34.46 |
% |
35.20 |
% |
1.61 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.60 |
12.95 |
1,727 |
19,070 |
18.07 |
% |
18.72 |
% |
1.68 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
10.61 |
11.15 |
1,462 |
16,262 |
-5.48 |
% |
-4.97 |
% |
1.23 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
11.61 |
11.78 |
1,483 |
17,427 |
13.35 |
% |
13.52 |
% |
1.52 |
% |
|||||||||||||||||||||||||||||||||
|
Templeton Foreign VIP Class 1 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.55 |
% |
0.55 |
% |
13.54 |
13.54 |
18,931 |
256,305 |
-11.38 |
% |
-11.38 |
% |
2.08 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.55 |
% |
0.55 |
% |
15.28 |
15.28 |
18,950 |
289,503 |
22.60 |
% |
22.60 |
% |
2.53 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.55 |
% |
0.80 |
% |
12.46 |
15.89 |
19,243 |
239,887 |
17.66 |
% |
17.95 |
% |
3.02 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.55 |
% |
0.80 |
% |
13.51 |
13.51 |
21,299 |
251,068 |
-11.16 |
% |
-11.16 |
% |
1.95 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.80 |
% |
0.80 |
% |
15.21 |
15.21 |
18,664 |
283,818 |
7.81 |
% |
7.81 |
% |
2.09 |
% |
|||||||||||||||||||||||||||||||||
|
Templeton Foreign VIP Class 2 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
13.50 |
15.88 |
8,665 |
117,921 |
-11.93 |
% |
-11.44 |
% |
1.84 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
15.24 |
18.03 |
8,365 |
128,583 |
21.86 |
% |
22.54 |
% |
2.41 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.44 |
14.80 |
9,606 |
120,369 |
17.17 |
% |
17.82 |
% |
3.01 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
10.56 |
12.63 |
9,594 |
102,092 |
-11.44 |
% |
-10.95 |
% |
1.73 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
13.15 |
14.26 |
8,772 |
115,250 |
7.43 |
% |
7.60 |
% |
1.86 |
% |
|||||||||||||||||||||||||||||||||
|
Templeton Global Bond VIP Class 1 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.15 |
% |
0.90 |
% |
11.35 |
20.74 |
45,194 |
873,353 |
1.21 |
% |
1.83 |
% |
5.12 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
11.14 |
20.41 |
42,037 |
840,754 |
0.98 |
% |
1.57 |
% |
4.70 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
16.94 |
20.13 |
44,046 |
871,651 |
14.28 |
% |
14.74 |
% |
6.40 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.50 |
% |
0.90 |
% |
14.78 |
17.54 |
43,275 |
748,123 |
-1.50 |
% |
-1.10 |
% |
5.63 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.90 |
% |
14.96 |
17.74 |
44,351 |
777,164 |
13.68 |
% |
14.15 |
% |
1.54 |
% |
|||||||||||||||||||||||||||||||||
|
Templeton Growth VIP Class 1 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.20 |
% |
0.90 |
% |
13.15 |
20.32 |
24,218 |
391,566 |
-3.41 |
% |
-2.87 |
% |
1.59 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
13.54 |
23.55 |
23,789 |
421,760 |
29.87 |
% |
30.59 |
% |
2.89 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.44 |
18.11 |
24,484 |
341,147 |
20.31 |
% |
20.79 |
% |
2.29 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.50 |
% |
0.90 |
% |
10.30 |
15.03 |
26,245 |
311,325 |
-7.63 |
% |
-7.26 |
% |
1.56 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.50 |
% |
0.90 |
% |
11.10 |
16.25 |
23,783 |
310,975 |
6.77 |
% |
7.29 |
% |
1.66 |
% |
|||||||||||||||||||||||||||||||||
|
Templeton Growth VIP Class 2 |
|||||||||||||||||||||||||||||||||||||||||||||||
|
2014 |
0.35 |
% |
0.90 |
% |
16.07 |
17.15 |
2,302 |
37,061 |
-3.68 |
% |
-3.15 |
% |
1.50 |
% |
|||||||||||||||||||||||||||||||||
|
2013 |
0.35 |
% |
0.90 |
% |
16.60 |
17.81 |
3,180 |
52,869 |
29.64 |
% |
30.36 |
% |
2.69 |
% |
|||||||||||||||||||||||||||||||||
|
2012 |
0.35 |
% |
0.90 |
% |
12.73 |
13.74 |
4,768 |
60,749 |
19.98 |
% |
20.64 |
% |
2.02 |
% |
|||||||||||||||||||||||||||||||||
|
2011 |
0.35 |
% |
0.90 |
% |
10.55 |
11.81 |
4,840 |
51,377 |
-7.81 |
% |
-7.30 |
% |
1.32 |
% |
|||||||||||||||||||||||||||||||||
|
2010 |
0.35 |
% |
0.90 |
% |
12.42 |
12.80 |
4,398 |
55,150 |
6.44 |
% |
6.59 |
% |
1.32 |
% |
|||||||||||||||||||||||||||||||||
(1) Reflects less than a full year of activity. Funds were first received in this option on the commencement date noted or the option was inactive at the date funds were received thereby a succeeding commencement date is disclosed.
(2) These amounts represent the annualized minimum and maximum contract expenses of the separate account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds have been excluded.
(3) As the unit value is presented as a range of minimum to maximum values for only those subaccounts which existed for the entire year, some individual contract unit values may not be within the ranges presented as a result of partial year activity.
M-47
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
3. Financial Highlights (continued)
(4) These amounts represent the total return, including changes in value of mutual funds, and reflect deductions for all items included in the fee rate. The total return does not include contract charges deducted directly from policy account values. The total return is not annualized. As the total return is presented as a range of minimum to maximum values, for only those subaccounts which existed for the entire year, some individual contract total returns may not be within the ranges presented as a result of partial year activity.
(5) These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense guarantee charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest. Investment income ratios are not annualized.
Note: Fee rate, unit value and total return minimum and maximum are the same where there is only one active contract level charge for the subaccount.
4. Purchases and Sales of Investments
The aggregate cost of investments purchased and the aggregate proceeds from investments sold were as follows for 2014:
|
Subaccount |
Aggregate Cost of Purchases |
Aggregate Proceeds from Sales |
|||||||||
|
ABVPSF Global Thematic Growth Class A |
$ |
146,370 |
$ |
731,557 |
|||||||
|
ABVPSF Growth and Income Class A |
90,902 |
510,435 |
|||||||||
|
ABVPSF International Value Class A |
110,244 |
239,692 |
|||||||||
|
ABVPSF Large Cap Growth Class A |
5,254 |
27,772 |
|||||||||
|
ABVPSF Small/Mid Cap Value Class A |
288,968 |
73,858 |
|||||||||
|
American Century VP Inflation Protection Class I |
140,150 |
51,501 |
|||||||||
|
American Funds Global Growth Class 2 |
409,390 |
398,167 |
|||||||||
|
American Funds Global Small Capitalization Class 2 |
317,018 |
815,273 |
|||||||||
|
American Funds Growth Class 2 |
820,388 |
1,228,018 |
|||||||||
|
American Funds Growth-Income Class 2 |
1,845,272 |
534,868 |
|||||||||
|
American Funds International Class 2 |
590,988 |
747,926 |
|||||||||
|
BlackRock Global Allocation V.I. Class I |
949,944 |
238,341 |
|||||||||
|
ClearBridge Variable Mid Cap Core Class I |
3,391 |
3,080 |
|||||||||
|
Delaware VIP Diversified Income Standard Class |
377,203 |
169,397 |
|||||||||
|
Delaware VIP Emerging Markets Standard Class |
359,373 |
801,090 |
|||||||||
|
Delaware VIP High Yield Standard Class |
179,271 |
102,396 |
|||||||||
|
Delaware VIP Limited-Term Diversified Income Standard Class |
260,063 |
47,376 |
|||||||||
|
Delaware VIP REIT Standard Class |
179,466 |
235,584 |
|||||||||
|
Delaware VIP Small Cap Value Standard Class |
314,519 |
173,216 |
|||||||||
|
Delaware VIP Smid Cap Growth Standard Class |
228,163 |
162,318 |
|||||||||
|
Delaware VIP U.S. Growth Standard Class |
259,677 |
60,706 |
|||||||||
|
Delaware VIP Value Standard Class |
158,803 |
158,732 |
|||||||||
|
Deutsche Alternative Asset Allocation VIP Class A |
124,880 |
19,156 |
|||||||||
|
Deutsche Equity 500 Index VIP Class A |
502,363 |
519,963 |
|||||||||
|
Deutsche Small Cap Index VIP Class A |
163,079 |
424,770 |
|||||||||
|
Fidelity VIP Asset Manager Initial Class |
12,361 |
28,199 |
|||||||||
|
Fidelity VIP Contrafund Service Class |
554,418 |
341,543 |
|||||||||
|
Fidelity VIP Equity-Income Initial Class |
32,959 |
28,807 |
|||||||||
|
Fidelity VIP Equity-Income Service Class |
32,770 |
10,839 |
|||||||||
|
Fidelity VIP Growth Service Class |
151,332 |
111,324 |
|||||||||
|
Fidelity VIP Growth Opportunities Service Class |
13,122 |
16,970 |
|||||||||
|
Fidelity VIP High Income Service Class |
11,497 |
5,187 |
|||||||||
|
Fidelity VIP Investment Grade Bond Initial Class |
16,696 |
42,745 |
|||||||||
|
Fidelity VIP Mid Cap Service Class |
212,194 |
59,459 |
|||||||||
|
Fidelity VIP Overseas Service Class |
61,273 |
10,210 |
|||||||||
|
Franklin Income VIP Class 1 |
2,506,232 |
174,804 |
|||||||||
|
Franklin Mutual Shares VIP Class 1 |
263,907 |
96,261 |
|||||||||
|
Franklin Small-Mid Cap Growth VIP Class 1 |
142,515 |
53,403 |
|||||||||
|
Invesco V.I. American Franchise Series I |
51,620 |
73,575 |
|||||||||
M-48
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
4. Purchases and Sales of Investments (continued)
|
Subaccount |
Aggregate Cost of Purchases |
Aggregate Proceeds from Sales |
|||||||||
|
Invesco V.I. Core Equity Series I |
$ |
61,321 |
$ |
92,961 |
|||||||
|
Invesco V.I. Diversified Income Series I |
10,046 |
25,882 |
|||||||||
|
Invesco V.I. International Growth Series I |
35,542 |
397,610 |
|||||||||
|
Janus Aspen Balanced Institutional Class |
16,322 |
10,032 |
|||||||||
|
Janus Aspen Balanced Service Class |
45,406 |
44,926 |
|||||||||
|
Janus Aspen Enterprise Service Class |
12,260 |
12,993 |
|||||||||
|
Janus Aspen Global Research Institutional Class |
38,777 |
29,929 |
|||||||||
|
Janus Aspen Global Research Service Class |
4,851 |
8,873 |
|||||||||
|
Janus Aspen Global Technology Service Class |
1,577 |
3,492 |
|||||||||
|
LVIP Baron Growth Opportunities Standard Class |
15,332 |
12,801 |
|||||||||
|
LVIP Baron Growth Opportunities Service Class |
195,013 |
208,124 |
|||||||||
|
LVIP BlackRock Emerging Markets RPM Standard Class |
118,204 |
13,168 |
|||||||||
|
LVIP BlackRock Equity Dividend RPM Standard Class |
151,618 |
205,660 |
|||||||||
|
LVIP BlackRock Inflation Protected Bond Standard Class |
142,554 |
156,734 |
|||||||||
|
LVIP Capital Growth Standard Class |
110,645 |
28,675 |
|||||||||
|
LVIP Clarion Global Real Estate Standard Class |
80,421 |
88,661 |
|||||||||
|
LVIP Columbia Small-Mid Cap Growth RPM Standard Class |
4,778 |
1,207 |
|||||||||
|
LVIP Delaware Bond Standard Class |
670,571 |
158,627 |
|||||||||
|
LVIP Delaware Diversified Floating Rate Standard Class |
246,043 |
23,858 |
|||||||||
|
LVIP Delaware Foundation Aggressive Allocation Standard Class |
44,301 |
488,160 |
|||||||||
|
LVIP Delaware Growth and Income Standard Class |
46,774 |
72,878 |
|||||||||
|
LVIP Delaware Social Awareness Standard Class |
53,346 |
41,350 |
|||||||||
|
LVIP Delaware Special Opportunities Standard Class |
200,688 |
40,175 |
|||||||||
|
LVIP Dimensional Non-U.S. Equity RPM Standard Class |
139,600 |
56,935 |
|||||||||
|
LVIP Dimensional U.S. Equity RPM Standard Class |
208,531 |
84,152 |
|||||||||
|
LVIP Dimensional/Vanguard Total Bond Standard Class |
113,136 |
37,999 |
|||||||||
|
LVIP Global Income Standard Class |
168,752 |
197,000 |
|||||||||
|
LVIP JPMorgan High Yield Standard Class |
622,664 |
38,889 |
|||||||||
|
LVIP JPMorgan Mid Cap Value RPM Standard Class |
65,580 |
20,378 |
|||||||||
|
LVIP Managed Risk Profile 2020 Standard Class |
3,093 |
48,437 |
|||||||||
|
LVIP Managed Risk Profile 2030 Standard Class |
14,536 |
33,465 |
|||||||||
|
LVIP Managed Risk Profile 2040 Standard Class |
74,798 |
43,464 |
|||||||||
|
LVIP Managed Risk Profile Conservative Standard Class |
1,251,252 |
18,517 |
|||||||||
|
LVIP Managed Risk Profile Growth Standard Class |
698,039 |
178,968 |
|||||||||
|
LVIP Managed Risk Profile Moderate Standard Class |
715,063 |
246,269 |
|||||||||
|
LVIP MFS International Growth Standard Class |
127,052 |
12,428 |
|||||||||
|
LVIP MFS Value Standard Class |
297,874 |
105,127 |
|||||||||
|
LVIP Mid-Cap Value Standard Class |
144,480 |
24,624 |
|||||||||
|
LVIP Mondrian International Value Standard Class |
154,034 |
53,587 |
|||||||||
|
LVIP Money Market Standard Class |
1,043,960 |
5,527,373 |
|||||||||
|
LVIP SSgA Bond Index Standard Class |
37,805 |
121,923 |
|||||||||
|
LVIP SSgA Conservative Index Allocation Standard Class |
3,625 |
39,232 |
|||||||||
|
LVIP SSgA Conservative Structured Allocation Standard Class |
2,050 |
352 |
|||||||||
|
LVIP SSgA Developed International 150 Standard Class |
52,670 |
11,909 |
|||||||||
|
LVIP SSgA Emerging Markets 100 Standard Class |
55,041 |
24,017 |
|||||||||
|
LVIP SSgA Global Tactical Allocation RPM Standard Class |
246,355 |
32,766 |
|||||||||
|
LVIP SSgA International Index Standard Class |
22,555 |
10,363 |
|||||||||
|
LVIP SSgA Large Cap 100 Standard Class |
98,151 |
66,832 |
|||||||||
|
LVIP SSgA Moderate Index Allocation Standard Class |
114,837 |
31,763 |
|||||||||
|
LVIP SSgA Moderate Structured Allocation Standard Class |
212,248 |
64,768 |
|||||||||
|
LVIP SSgA Moderately Aggressive Index Allocation Standard Class |
70,942 |
24,343 |
|||||||||
|
LVIP SSgA Moderately Aggressive Structured Allocation Standard Class |
602,318 |
33,821 |
|||||||||
|
LVIP SSgA S&P 500 Index Standard Class |
368,722 |
140,894 |
|||||||||
|
LVIP SSgA Small-Cap Index Standard Class |
98,532 |
45,826 |
|||||||||
|
LVIP SSgA Small-Mid Cap 200 Standard Class |
83,390 |
18,033 |
|||||||||
|
LVIP T. Rowe Price Growth Stock Standard Class |
103,310 |
42,552 |
|||||||||
|
LVIP T. Rowe Price Structured Mid-Cap Growth Standard Class |
59,256 |
417,378 |
|||||||||
|
LVIP Templeton Growth RPM Standard Class |
46,098 |
7,585 |
|||||||||
|
LVIP UBS Large Cap Growth RPM Standard Class |
13,954 |
19,757 |
|||||||||
|
LVIP Vanguard Domestic Equity ETF Standard Class |
44,649 |
21,702 |
|||||||||
|
LVIP Vanguard International Equity ETF Standard Class |
47,954 |
14,281 |
|||||||||
M-49
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
4. Purchases and Sales of Investments (continued)
|
Subaccount |
Aggregate Cost of Purchases |
Aggregate Proceeds from Sales |
|||||||||
|
M Capital Appreciation |
$ |
1,191 |
$ |
272 |
|||||||
|
M International Equity |
1,582 |
177 |
|||||||||
|
M Large Cap Growth |
2,428 |
864 |
|||||||||
|
M Large Cap Value |
2,176 |
508 |
|||||||||
|
MFS VIT Core Equity Initial Class |
2,234 |
266 |
|||||||||
|
MFS VIT Growth Initial Class |
157,684 |
161,534 |
|||||||||
|
MFS VIT Total Return Initial Class |
212,801 |
222,022 |
|||||||||
|
MFS VIT Utilities Initial Class |
263,398 |
129,625 |
|||||||||
|
NB AMT Large Cap Value I Class |
2,965 |
6,300 |
|||||||||
|
NB AMT Mid Cap Growth I Class |
465,800 |
517,364 |
|||||||||
|
NB AMT Mid Cap Intrinsic Value I Class |
36,190 |
30,116 |
|||||||||
|
PIMCO VIT CommodityRealReturn Strategy Administrative Class |
284,705 |
230,549 |
|||||||||
|
Putnam VT Global Health Care Class IB |
26,757 |
5,923 |
|||||||||
|
Putnam VT Growth & Income Class IB |
429 |
565 |
|||||||||
|
Templeton Foreign VIP Class 1 |
30,640 |
26,328 |
|||||||||
|
Templeton Foreign VIP Class 2 |
17,623 |
11,806 |
|||||||||
|
Templeton Global Bond VIP Class 1 |
128,694 |
69,907 |
|||||||||
|
Templeton Growth VIP Class 1 |
34,356 |
47,245 |
|||||||||
|
Templeton Growth VIP Class 2 |
8,683 |
23,244 |
|||||||||
5. Investments
The following is a summary of investments owned at December 31, 2014:
|
Subaccount |
Shares Owned |
Net Asset Value |
Fair Value of Shares |
Cost of Shares |
|||||||||||||||
|
ABVPSF Global Thematic Growth Class A |
26,870 |
$ |
21.80 |
$ |
585,755 |
$ |
473,133 |
||||||||||||
|
ABVPSF Growth and Income Class A |
28,247 |
30.04 |
848,538 |
623,149 |
|||||||||||||||
|
ABVPSF International Value Class A |
33,618 |
13.53 |
454,850 |
476,377 |
|||||||||||||||
|
ABVPSF Large Cap Growth Class A |
2,700 |
48.83 |
131,818 |
81,627 |
|||||||||||||||
|
ABVPSF Small/Mid Cap Value Class A |
58,399 |
21.95 |
1,281,871 |
1,061,374 |
|||||||||||||||
|
American Century VP Inflation Protection Class I |
74,699 |
10.43 |
779,105 |
816,768 |
|||||||||||||||
|
American Funds Global Growth Class 2 |
70,356 |
27.30 |
1,920,723 |
1,611,373 |
|||||||||||||||
|
American Funds Global Small Capitalization Class 2 |
78,617 |
25.64 |
2,015,739 |
1,676,005 |
|||||||||||||||
|
American Funds Growth Class 2 |
92,419 |
79.84 |
7,378,734 |
5,514,303 |
|||||||||||||||
|
American Funds Growth-Income Class 2 |
147,654 |
52.41 |
7,738,572 |
6,095,445 |
|||||||||||||||
|
American Funds International Class 2 |
197,062 |
20.29 |
3,998,383 |
3,617,147 |
|||||||||||||||
|
BlackRock Global Allocation V.I. Class I |
182,786 |
16.23 |
2,966,613 |
3,042,623 |
|||||||||||||||
|
Delaware VIP Diversified Income Standard Class |
176,586 |
10.84 |
1,914,191 |
1,880,472 |
|||||||||||||||
|
Delaware VIP Emerging Markets Standard Class |
96,982 |
19.54 |
1,895,033 |
1,895,049 |
|||||||||||||||
|
Delaware VIP High Yield Standard Class |
218,999 |
5.67 |
1,241,721 |
1,268,991 |
|||||||||||||||
|
Delaware VIP Limited-Term Diversified Income Standard Class |
105,553 |
9.87 |
1,041,801 |
1,053,420 |
|||||||||||||||
|
Delaware VIP REIT Standard Class |
106,435 |
15.50 |
1,649,742 |
1,272,343 |
|||||||||||||||
|
Delaware VIP Small Cap Value Standard Class |
55,896 |
40.23 |
2,248,703 |
1,893,668 |
|||||||||||||||
|
Delaware VIP Smid Cap Growth Standard Class |
47,685 |
30.20 |
1,440,101 |
1,223,072 |
|||||||||||||||
|
Delaware VIP U.S. Growth Standard Class |
60,875 |
13.75 |
837,028 |
698,191 |
|||||||||||||||
|
Delaware VIP Value Standard Class |
49,249 |
29.24 |
1,440,031 |
1,002,932 |
|||||||||||||||
|
Deutsche Alternative Asset Allocation VIP Class A |
19,170 |
13.88 |
266,086 |
262,372 |
|||||||||||||||
|
Deutsche Equity 500 Index VIP Class A |
145,333 |
20.41 |
2,966,251 |
2,266,476 |
|||||||||||||||
|
Deutsche Small Cap Index VIP Class A |
46,585 |
17.32 |
806,848 |
671,432 |
|||||||||||||||
|
Fidelity VIP Asset Manager Initial Class |
10,028 |
17.15 |
171,988 |
153,555 |
|||||||||||||||
|
Fidelity VIP Contrafund Service Class |
84,824 |
37.23 |
3,158,000 |
2,342,950 |
|||||||||||||||
|
Fidelity VIP Equity-Income Initial Class |
4,809 |
24.27 |
116,714 |
101,562 |
|||||||||||||||
|
Fidelity VIP Equity-Income Service Class |
13,519 |
24.18 |
326,894 |
286,735 |
|||||||||||||||
|
Fidelity VIP Growth Service Class |
15,414 |
63.32 |
976,036 |
653,386 |
|||||||||||||||
|
Fidelity VIP Growth Opportunities Service Class |
4,415 |
33.46 |
147,724 |
87,200 |
|||||||||||||||
|
Fidelity VIP High Income Service Class |
13,120 |
5.49 |
72,030 |
73,493 |
|||||||||||||||
|
Fidelity VIP Investment Grade Bond Initial Class |
12,132 |
12.79 |
155,163 |
158,446 |
|||||||||||||||
|
Fidelity VIP Mid Cap Service Class |
32,813 |
37.44 |
1,228,501 |
1,062,975 |
|||||||||||||||
|
Fidelity VIP Overseas Service Class |
17,639 |
18.63 |
328,615 |
291,187 |
|||||||||||||||
M-50
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
5. Investments (continued)
|
Subaccount |
Shares Owned |
Net Asset Value |
Fair Value of Shares |
Cost of Shares |
|||||||||||||||
|
Franklin Income VIP Class 1 |
213,039 |
$ |
16.48 |
$ |
3,510,881 |
$ |
3,472,026 |
||||||||||||
|
Franklin Mutual Shares VIP Class 1 |
49,977 |
22.91 |
1,144,966 |
927,724 |
|||||||||||||||
|
Franklin Small-Mid Cap Growth VIP Class 1 |
24,132 |
24.95 |
602,098 |
522,538 |
|||||||||||||||
|
Invesco V.I. American Franchise Series I |
13,449 |
54.88 |
738,080 |
519,297 |
|||||||||||||||
|
Invesco V.I. Core Equity Series I |
30,263 |
41.01 |
1,241,102 |
885,539 |
|||||||||||||||
|
Invesco V.I. Diversified Income Series I |
23,080 |
6.39 |
147,480 |
146,009 |
|||||||||||||||
|
Invesco V.I. International Growth Series I |
4,706 |
34.87 |
164,091 |
138,357 |
|||||||||||||||
|
Janus Aspen Balanced Institutional Class |
6,166 |
31.43 |
193,801 |
172,638 |
|||||||||||||||
|
Janus Aspen Balanced Service Class |
10,348 |
32.97 |
341,181 |
295,910 |
|||||||||||||||
|
Janus Aspen Enterprise Service Class |
2,200 |
59.26 |
130,341 |
80,913 |
|||||||||||||||
|
Janus Aspen Global Research Institutional Class |
9,674 |
41.45 |
400,989 |
292,676 |
|||||||||||||||
|
Janus Aspen Global Research Service Class |
1,186 |
40.77 |
48,349 |
33,417 |
|||||||||||||||
|
Janus Aspen Global Technology Service Class |
1,354 |
8.56 |
11,588 |
7,928 |
|||||||||||||||
|
LVIP Baron Growth Opportunities Standard Class |
5,126 |
47.82 |
245,125 |
211,883 |
|||||||||||||||
|
LVIP Baron Growth Opportunities Service Class |
13,655 |
47.03 |
642,265 |
497,033 |
|||||||||||||||
|
LVIP BlackRock Emerging Markets RPM Standard Class |
19,974 |
9.35 |
186,680 |
200,318 |
|||||||||||||||
|
LVIP BlackRock Equity Dividend RPM Standard Class |
20,805 |
17.81 |
370,437 |
342,288 |
|||||||||||||||
|
LVIP BlackRock Inflation Protected Bond Standard Class |
54,817 |
10.35 |
567,355 |
590,777 |
|||||||||||||||
|
LVIP Capital Growth Standard Class |
11,477 |
41.89 |
480,803 |
350,632 |
|||||||||||||||
|
LVIP Clarion Global Real Estate Standard Class |
58,899 |
9.73 |
573,202 |
457,709 |
|||||||||||||||
|
LVIP Columbia Small-Mid Cap Growth RPM Standard Class |
2,080 |
12.64 |
26,292 |
23,038 |
|||||||||||||||
|
LVIP Delaware Bond Standard Class |
319,269 |
13.90 |
4,438,788 |
4,425,409 |
|||||||||||||||
|
LVIP Delaware Diversified Floating Rate Standard Class |
54,442 |
10.06 |
547,527 |
553,962 |
|||||||||||||||
|
LVIP Delaware Foundation Aggressive Allocation Standard Class |
8,612 |
15.93 |
137,204 |
113,568 |
|||||||||||||||
|
LVIP Delaware Growth and Income Standard Class |
5,007 |
44.35 |
222,085 |
170,756 |
|||||||||||||||
|
LVIP Delaware Social Awareness Standard Class |
8,034 |
46.22 |
371,308 |
301,034 |
|||||||||||||||
|
LVIP Delaware Special Opportunities Standard Class |
7,914 |
41.90 |
331,636 |
320,971 |
|||||||||||||||
|
LVIP Dimensional Non-U.S. Equity RPM Standard Class |
22,481 |
9.40 |
211,387 |
224,775 |
|||||||||||||||
|
LVIP Dimensional U.S. Equity RPM Standard Class |
28,446 |
14.16 |
402,709 |
371,855 |
|||||||||||||||
|
LVIP Dimensional/Vanguard Total Bond Standard Class |
29,278 |
10.52 |
307,947 |
308,914 |
|||||||||||||||
|
LVIP Global Income Standard Class |
42,272 |
11.56 |
488,497 |
491,723 |
|||||||||||||||
|
LVIP JPMorgan High Yield Standard Class |
93,576 |
11.08 |
1,037,015 |
1,067,867 |
|||||||||||||||
|
LVIP JPMorgan Mid Cap Value RPM Standard Class |
19,052 |
15.62 |
297,630 |
231,907 |
|||||||||||||||
|
LVIP Managed Risk Profile 2020 Standard Class |
6,319 |
12.11 |
76,527 |
58,379 |
|||||||||||||||
|
LVIP Managed Risk Profile 2030 Standard Class |
16,382 |
12.17 |
199,438 |
153,569 |
|||||||||||||||
|
LVIP Managed Risk Profile 2040 Standard Class |
12,029 |
11.66 |
140,210 |
114,316 |
|||||||||||||||
|
LVIP Managed Risk Profile Conservative Standard Class |
107,119 |
13.94 |
1,493,660 |
1,482,079 |
|||||||||||||||
|
LVIP Managed Risk Profile Growth Standard Class |
259,392 |
13.47 |
3,495,050 |
3,104,340 |
|||||||||||||||
|
LVIP Managed Risk Profile Moderate Standard Class |
255,450 |
14.11 |
3,604,140 |
3,137,216 |
|||||||||||||||
|
LVIP MFS International Growth Standard Class |
27,248 |
13.69 |
373,132 |
363,543 |
|||||||||||||||
|
LVIP MFS Value Standard Class |
44,270 |
37.27 |
1,649,864 |
1,215,049 |
|||||||||||||||
|
LVIP Mid-Cap Value Standard Class |
12,998 |
22.96 |
298,477 |
252,006 |
|||||||||||||||
|
LVIP Mondrian International Value Standard Class |
49,448 |
16.94 |
837,749 |
836,335 |
|||||||||||||||
|
LVIP Money Market Standard Class |
330,906 |
10.00 |
3,309,059 |
3,309,060 |
|||||||||||||||
|
LVIP SSgA Bond Index Standard Class |
29,454 |
11.43 |
336,516 |
336,802 |
|||||||||||||||
|
LVIP SSgA Conservative Index Allocation Standard Class |
11,489 |
12.26 |
140,858 |
128,189 |
|||||||||||||||
|
LVIP SSgA Conservative Structured Allocation Standard Class |
483 |
11.88 |
5,741 |
5,604 |
|||||||||||||||
|
LVIP SSgA Developed International 150 Standard Class |
7,328 |
9.08 |
66,518 |
67,827 |
|||||||||||||||
|
LVIP SSgA Emerging Markets 100 Standard Class |
23,654 |
9.29 |
219,699 |
241,760 |
|||||||||||||||
|
LVIP SSgA Global Tactical Allocation RPM Standard Class |
84,263 |
11.98 |
1,009,381 |
927,649 |
|||||||||||||||
|
LVIP SSgA International Index Standard Class |
7,334 |
8.66 |
63,491 |
63,566 |
|||||||||||||||
|
LVIP SSgA Large Cap 100 Standard Class |
27,499 |
15.95 |
438,721 |
351,038 |
|||||||||||||||
|
LVIP SSgA Moderate Index Allocation Standard Class |
31,307 |
13.16 |
411,973 |
389,402 |
|||||||||||||||
|
LVIP SSgA Moderate Structured Allocation Standard Class |
50,204 |
12.65 |
635,082 |
598,880 |
|||||||||||||||
|
LVIP SSgA Moderately Aggressive Index Allocation Standard Class |
17,632 |
13.38 |
235,910 |
216,272 |
|||||||||||||||
|
LVIP SSgA Moderately Aggressive Structured Allocation Standard Class |
80,068 |
12.95 |
1,036,474 |
1,037,903 |
|||||||||||||||
|
LVIP SSgA S&P 500 Index Standard Class |
119,375 |
14.65 |
1,748,964 |
1,346,248 |
|||||||||||||||
|
LVIP SSgA Small-Cap Index Standard Class |
9,918 |
26.99 |
267,675 |
218,642 |
|||||||||||||||
|
LVIP SSgA Small-Mid Cap 200 Standard Class |
14,842 |
14.91 |
221,273 |
216,109 |
|||||||||||||||
|
LVIP T. Rowe Price Growth Stock Standard Class |
15,016 |
31.18 |
468,187 |
334,006 |
|||||||||||||||
|
LVIP T. Rowe Price Structured Mid-Cap Growth Standard Class |
10,766 |
22.08 |
237,707 |
189,381 |
|||||||||||||||
M-51
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
5. Investments (continued)
|
Subaccount |
Shares Owned |
Net Asset Value |
Fair Value of Shares |
Cost of Shares |
|||||||||||||||
|
LVIP Templeton Growth RPM Standard Class |
4,884 |
$ |
32.85 |
$ |
160,404 |
$ |
145,090 |
||||||||||||
|
LVIP UBS Large Cap Growth RPM Standard Class |
7,632 |
31.14 |
237,630 |
163,554 |
|||||||||||||||
|
LVIP Vanguard Domestic Equity ETF Standard Class |
5,256 |
14.75 |
77,521 |
67,214 |
|||||||||||||||
|
LVIP Vanguard International Equity ETF Standard Class |
17,489 |
9.60 |
167,808 |
169,833 |
|||||||||||||||
|
M Capital Appreciation |
150 |
30.22 |
4,542 |
3,821 |
|||||||||||||||
|
M International Equity |
499 |
11.93 |
5,960 |
5,843 |
|||||||||||||||
|
M Large Cap Growth |
367 |
23.95 |
8,798 |
6,811 |
|||||||||||||||
|
M Large Cap Value |
646 |
13.36 |
8,636 |
7,355 |
|||||||||||||||
|
MFS VIT Core Equity Initial Class |
270 |
26.01 |
7,034 |
5,943 |
|||||||||||||||
|
MFS VIT Growth Initial Class |
20,755 |
39.75 |
825,037 |
604,170 |
|||||||||||||||
|
MFS VIT Total Return Initial Class |
57,688 |
24.31 |
1,402,392 |
1,180,181 |
|||||||||||||||
|
MFS VIT Utilities Initial Class |
42,267 |
33.96 |
1,435,378 |
1,181,233 |
|||||||||||||||
|
NB AMT Large Cap Value I Class |
9,958 |
16.39 |
163,210 |
104,161 |
|||||||||||||||
|
NB AMT Mid Cap Growth I Class |
42,229 |
24.50 |
1,034,620 |
1,032,986 |
|||||||||||||||
|
NB AMT Mid Cap Intrinsic Value I Class |
25,532 |
17.87 |
456,252 |
397,320 |
|||||||||||||||
|
PIMCO VIT CommodityRealReturn Strategy Administrative Class |
137,731 |
4.86 |
669,371 |
924,860 |
|||||||||||||||
|
Putnam VT Global Health Care Class IB |
7,020 |
20.17 |
141,592 |
94,513 |
|||||||||||||||
|
Putnam VT Growth & Income Class IB |
1,061 |
26.12 |
27,715 |
17,589 |
|||||||||||||||
|
Templeton Foreign VIP Class 1 |
16,709 |
15.34 |
256,309 |
237,522 |
|||||||||||||||
|
Templeton Foreign VIP Class 2 |
7,835 |
15.05 |
117,922 |
111,977 |
|||||||||||||||
|
Templeton Global Bond VIP Class 1 |
47,056 |
18.56 |
873,367 |
848,390 |
|||||||||||||||
|
Templeton Growth VIP Class 1 |
26,369 |
14.85 |
391,572 |
340,202 |
|||||||||||||||
|
Templeton Growth VIP Class 2 |
2,537 |
14.61 |
37,061 |
30,416 |
|||||||||||||||
6. Changes in Units Outstanding
The change in units outstanding for the year ended December 31, 2014, is as follows:
|
Subaccount |
Units Issued |
Units Redeemed |
Net Increase (Decrease) |
||||||||||||
|
ABVPSF Global Thematic Growth Class A |
10,279 |
(50,027 |
) |
(39,748 |
) |
||||||||||
|
ABVPSF Growth and Income Class A |
5,174 |
(27,126 |
) |
(21,952 |
) |
||||||||||
|
ABVPSF International Value Class A |
9,369 |
(23,621 |
) |
(14,252 |
) |
||||||||||
|
ABVPSF Large Cap Growth Class A |
322 |
(1,584 |
) |
(1,262 |
) |
||||||||||
|
ABVPSF Small/Mid Cap Value Class A |
7,964 |
(3,670 |
) |
4,294 |
|||||||||||
|
American Century VP Inflation Protection Class I |
10,578 |
(3,458 |
) |
7,120 |
|||||||||||
|
American Funds Global Growth Class 2 |
13,633 |
(18,200 |
) |
(4,567 |
) |
||||||||||
|
American Funds Global Small Capitalization Class 2 |
21,497 |
(37,669 |
) |
(16,172 |
) |
||||||||||
|
American Funds Growth Class 2 |
34,933 |
(58,684 |
) |
(23,751 |
) |
||||||||||
|
American Funds Growth-Income Class 2 |
91,547 |
(24,282 |
) |
67,265 |
|||||||||||
|
American Funds International Class 2 |
51,277 |
(49,288 |
) |
1,989 |
|||||||||||
|
BlackRock Global Allocation V.I. Class I |
43,833 |
(15,339 |
) |
28,494 |
|||||||||||
|
ClearBridge Variable Mid Cap Core Class I |
322 |
(322 |
) |
— |
|||||||||||
|
Delaware VIP Diversified Income Standard Class |
27,363 |
(10,650 |
) |
16,713 |
|||||||||||
|
Delaware VIP Emerging Markets Standard Class |
27,743 |
(36,240 |
) |
(8,497 |
) |
||||||||||
|
Delaware VIP High Yield Standard Class |
8,802 |
(4,863 |
) |
3,939 |
|||||||||||
|
Delaware VIP Limited-Term Diversified Income Standard Class |
21,982 |
(3,705 |
) |
18,277 |
|||||||||||
|
Delaware VIP REIT Standard Class |
12,799 |
(9,784 |
) |
3,015 |
|||||||||||
|
Delaware VIP Small Cap Value Standard Class |
11,409 |
(7,795 |
) |
3,614 |
|||||||||||
|
Delaware VIP Smid Cap Growth Standard Class |
10,406 |
(7,140 |
) |
3,266 |
|||||||||||
|
Delaware VIP U.S. Growth Standard Class |
14,037 |
(2,902 |
) |
11,135 |
|||||||||||
|
Delaware VIP Value Standard Class |
10,007 |
(7,449 |
) |
2,558 |
|||||||||||
|
Deutsche Alternative Asset Allocation VIP Class A |
9,115 |
(1,425 |
) |
7,690 |
|||||||||||
|
Deutsche Equity 500 Index VIP Class A |
33,315 |
(31,600 |
) |
1,715 |
|||||||||||
|
Deutsche Small Cap Index VIP Class A |
10,747 |
(28,650 |
) |
(17,903 |
) |
||||||||||
|
Fidelity VIP Asset Manager Initial Class |
84 |
(1,879 |
) |
(1,795 |
) |
||||||||||
|
Fidelity VIP Contrafund Service Class |
29,958 |
(15,638 |
) |
14,320 |
|||||||||||
|
Fidelity VIP Equity-Income Initial Class |
1,727 |
(1,654 |
) |
73 |
|||||||||||
|
Fidelity VIP Equity-Income Service Class |
1,866 |
(501 |
) |
1,365 |
|||||||||||
|
Fidelity VIP Growth Service Class |
9,063 |
(5,529 |
) |
3,534 |
|||||||||||
M-52
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
6. Changes in Units Outstanding (continued)
|
Subaccount |
Units Issued |
Units Redeemed |
Net Increase (Decrease) |
||||||||||||
|
Fidelity VIP Growth Opportunities Service Class |
643 |
(807 |
) |
(164 |
) |
||||||||||
|
Fidelity VIP High Income Service Class |
397 |
(349 |
) |
48 |
|||||||||||
|
Fidelity VIP Investment Grade Bond Initial Class |
1,153 |
(3,604 |
) |
(2,451 |
) |
||||||||||
|
Fidelity VIP Mid Cap Service Class |
9,305 |
(2,943 |
) |
6,362 |
|||||||||||
|
Fidelity VIP Overseas Service Class |
3,755 |
(672 |
) |
3,083 |
|||||||||||
|
Franklin Income VIP Class 1 |
140,971 |
(9,972 |
) |
130,999 |
|||||||||||
|
Franklin Mutual Shares VIP Class 1 |
13,334 |
(5,801 |
) |
7,533 |
|||||||||||
|
Franklin Small-Mid Cap Growth VIP Class 1 |
3,490 |
(2,459 |
) |
1,031 |
|||||||||||
|
Invesco V.I. American Franchise Series I |
3,301 |
(4,341 |
) |
(1,040 |
) |
||||||||||
|
Invesco V.I. Core Equity Series I |
2,684 |
(5,519 |
) |
(2,835 |
) |
||||||||||
|
Invesco V.I. Diversified Income Series I |
197 |
(1,953 |
) |
(1,756 |
) |
||||||||||
|
Invesco V.I. International Growth Series I |
2,889 |
(31,817 |
) |
(28,928 |
) |
||||||||||
|
Janus Aspen Balanced Institutional Class |
532 |
(618 |
) |
(86 |
) |
||||||||||
|
Janus Aspen Balanced Service Class |
2,194 |
(2,301 |
) |
(107 |
) |
||||||||||
|
Janus Aspen Enterprise Service Class |
472 |
(725 |
) |
(253 |
) |
||||||||||
|
Janus Aspen Global Research Institutional Class |
2,237 |
(1,930 |
) |
307 |
|||||||||||
|
Janus Aspen Global Research Service Class |
305 |
(569 |
) |
(264 |
) |
||||||||||
|
Janus Aspen Global Technology Service Class |
49 |
(200 |
) |
(151 |
) |
||||||||||
|
LVIP Baron Growth Opportunities Standard Class |
568 |
(494 |
) |
74 |
|||||||||||
|
LVIP Baron Growth Opportunities Service Class |
9,561 |
(9,866 |
) |
(305 |
) |
||||||||||
|
LVIP BlackRock Emerging Markets RPM Standard Class |
12,018 |
(1,359 |
) |
10,659 |
|||||||||||
|
LVIP BlackRock Equity Dividend RPM Standard Class |
8,976 |
(13,470 |
) |
(4,494 |
) |
||||||||||
|
LVIP BlackRock Inflation Protected Bond Standard Class |
11,917 |
(13,429 |
) |
(1,512 |
) |
||||||||||
|
LVIP Capital Growth Standard Class |
5,626 |
(1,437 |
) |
4,189 |
|||||||||||
|
LVIP Clarion Global Real Estate Standard Class |
5,604 |
(8,091 |
) |
(2,487 |
) |
||||||||||
|
LVIP Columbia Small-Mid Cap Growth RPM Standard Class |
359 |
(84 |
) |
275 |
|||||||||||
|
LVIP Delaware Bond Standard Class |
49,855 |
(9,024 |
) |
40,831 |
|||||||||||
|
LVIP Delaware Diversified Floating Rate Standard Class |
22,482 |
(2,118 |
) |
20,364 |
|||||||||||
|
LVIP Delaware Foundation Aggressive Allocation Standard Class |
2,366 |
(27,021 |
) |
(24,655 |
) |
||||||||||
|
LVIP Delaware Growth and Income Standard Class |
1,811 |
(4,000 |
) |
(2,189 |
) |
||||||||||
|
LVIP Delaware Social Awareness Standard Class |
2,159 |
(2,257 |
) |
(98 |
) |
||||||||||
|
LVIP Delaware Special Opportunities Standard Class |
9,302 |
(2,161 |
) |
7,141 |
|||||||||||
|
LVIP Dimensional Non-U.S. Equity RPM Standard Class |
12,176 |
(4,931 |
) |
7,245 |
|||||||||||
|
LVIP Dimensional U.S. Equity RPM Standard Class |
14,313 |
(5,844 |
) |
8,469 |
|||||||||||
|
LVIP Dimensional/Vanguard Total Bond Standard Class |
10,084 |
(3,495 |
) |
6,589 |
|||||||||||
|
LVIP Global Income Standard Class |
13,750 |
(16,110 |
) |
(2,360 |
) |
||||||||||
|
LVIP JPMorgan High Yield Standard Class |
41,305 |
(2,655 |
) |
38,650 |
|||||||||||
|
LVIP JPMorgan Mid Cap Value RPM Standard Class |
3,387 |
(1,174 |
) |
2,213 |
|||||||||||
|
LVIP Managed Risk Profile 2020 Standard Class |
128 |
(3,829 |
) |
(3,701 |
) |
||||||||||
|
LVIP Managed Risk Profile 2030 Standard Class |
833 |
(2,559 |
) |
(1,726 |
) |
||||||||||
|
LVIP Managed Risk Profile 2040 Standard Class |
5,165 |
(3,300 |
) |
1,865 |
|||||||||||
|
LVIP Managed Risk Profile Conservative Standard Class |
71,974 |
(1,046 |
) |
70,928 |
|||||||||||
|
LVIP Managed Risk Profile Growth Standard Class |
40,796 |
(11,405 |
) |
29,391 |
|||||||||||
|
LVIP Managed Risk Profile Moderate Standard Class |
42,352 |
(16,260 |
) |
26,092 |
|||||||||||
|
LVIP MFS International Growth Standard Class |
8,877 |
(887 |
) |
7,990 |
|||||||||||
|
LVIP MFS Value Standard Class |
14,320 |
(5,910 |
) |
8,410 |
|||||||||||
|
LVIP Mid-Cap Value Standard Class |
7,208 |
(1,562 |
) |
5,646 |
|||||||||||
|
LVIP Mondrian International Value Standard Class |
14,196 |
(3,027 |
) |
11,169 |
|||||||||||
|
LVIP Money Market Standard Class |
102,889 |
(535,948 |
) |
(433,059 |
) |
||||||||||
|
LVIP SSgA Bond Index Standard Class |
2,714 |
(9,675 |
) |
(6,961 |
) |
||||||||||
|
LVIP SSgA Conservative Index Allocation Standard Class |
17 |
(3,110 |
) |
(3,093 |
) |
||||||||||
|
LVIP SSgA Conservative Structured Allocation Standard Class |
146 |
(27 |
) |
119 |
|||||||||||
|
LVIP SSgA Developed International 150 Standard Class |
4,276 |
(1,047 |
) |
3,229 |
|||||||||||
|
LVIP SSgA Emerging Markets 100 Standard Class |
3,749 |
(1,796 |
) |
1,953 |
|||||||||||
|
LVIP SSgA Global Tactical Allocation RPM Standard Class |
15,150 |
(2,014 |
) |
13,136 |
|||||||||||
|
LVIP SSgA International Index Standard Class |
1,538 |
(738 |
) |
800 |
|||||||||||
|
LVIP SSgA Large Cap 100 Standard Class |
3,696 |
(3,716 |
) |
(20 |
) |
||||||||||
|
LVIP SSgA Moderate Index Allocation Standard Class |
7,680 |
(2,180 |
) |
5,500 |
|||||||||||
|
LVIP SSgA Moderate Structured Allocation Standard Class |
13,638 |
(4,538 |
) |
9,100 |
|||||||||||
|
LVIP SSgA Moderately Aggressive Index Allocation Standard Class |
4,618 |
(1,671 |
) |
2,947 |
|||||||||||
|
LVIP SSgA Moderately Aggressive Structured Allocation Standard Class |
38,512 |
(2,228 |
) |
36,284 |
|||||||||||
|
LVIP SSgA S&P 500 Index Standard Class |
17,036 |
(7,770 |
) |
9,266 |
|||||||||||
M-53
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
6. Changes in Units Outstanding (continued)
|
Subaccount |
Units Issued |
Units Redeemed |
Net Increase (Decrease) |
||||||||||||
|
LVIP SSgA Small-Cap Index Standard Class |
5,176 |
(2,811 |
) |
2,365 |
|||||||||||
|
LVIP SSgA Small-Mid Cap 200 Standard Class |
4,677 |
(923 |
) |
3,754 |
|||||||||||
|
LVIP T. Rowe Price Growth Stock Standard Class |
6,043 |
(2,193 |
) |
3,850 |
|||||||||||
|
LVIP T. Rowe Price Structured Mid-Cap Growth Standard Class |
2,177 |
(18,048 |
) |
(15,871 |
) |
||||||||||
|
LVIP Templeton Growth RPM Standard Class |
3,044 |
(546 |
) |
2,498 |
|||||||||||
|
LVIP UBS Large Cap Growth RPM Standard Class |
880 |
(1,170 |
) |
(290 |
) |
||||||||||
|
LVIP Vanguard Domestic Equity ETF Standard Class |
2,903 |
(1,499 |
) |
1,404 |
|||||||||||
|
LVIP Vanguard International Equity ETF Standard Class |
3,749 |
(1,205 |
) |
2,544 |
|||||||||||
|
M Capital Appreciation |
29 |
(10 |
) |
19 |
|||||||||||
|
M International Equity |
99 |
(11 |
) |
88 |
|||||||||||
|
M Large Cap Growth |
65 |
(39 |
) |
26 |
|||||||||||
|
M Large Cap Value |
65 |
(27 |
) |
38 |
|||||||||||
|
MFS VIT Core Equity Initial Class |
201 |
(16 |
) |
185 |
|||||||||||
|
MFS VIT Growth Initial Class |
6,876 |
(7,526 |
) |
(650 |
) |
||||||||||
|
MFS VIT Total Return Initial Class |
12,449 |
(13,319 |
) |
(870 |
) |
||||||||||
|
MFS VIT Utilities Initial Class |
10,369 |
(5,929 |
) |
4,440 |
|||||||||||
|
NB AMT Large Cap Value I Class |
110 |
(366 |
) |
(256 |
) |
||||||||||
|
NB AMT Mid Cap Growth I Class |
5,827 |
(35,580 |
) |
(29,753 |
) |
||||||||||
|
NB AMT Mid Cap Intrinsic Value I Class |
8,470 |
(1,013 |
) |
7,457 |
|||||||||||
|
PIMCO VIT CommodityRealReturn Strategy Administrative Class |
25,171 |
(18,431 |
) |
6,740 |
|||||||||||
|
Putnam VT Global Health Care Class IB |
836 |
(259 |
) |
577 |
|||||||||||
|
Putnam VT Growth & Income Class IB |
5 |
(28 |
) |
(23 |
) |
||||||||||
|
Templeton Foreign VIP Class 1 |
1,662 |
(1,681 |
) |
(19 |
) |
||||||||||
|
Templeton Foreign VIP Class 2 |
1,073 |
(773 |
) |
300 |
|||||||||||
|
Templeton Global Bond VIP Class 1 |
6,321 |
(3,164 |
) |
3,157 |
|||||||||||
|
Templeton Growth VIP Class 1 |
3,158 |
(2,729 |
) |
429 |
|||||||||||
|
Templeton Growth VIP Class 2 |
491 |
(1,369 |
) |
(878 |
) |
||||||||||
The change in units outstanding for the year ended December 31, 2013, is as follows:
|
Subaccount |
Units Issued |
Units Redeemed |
Net Increase (Decrease) |
||||||||||||
|
ABVPSF Global Thematic Growth Class A |
16,428 |
(2,020 |
) |
14,408 |
|||||||||||
|
ABVPSF Growth and Income Class A |
12,939 |
(4,291 |
) |
8,648 |
|||||||||||
|
ABVPSF International Value Class A |
7,515 |
(5,565 |
) |
1,950 |
|||||||||||
|
ABVPSF Large Cap Growth Class A |
798 |
(2,045 |
) |
(1,247 |
) |
||||||||||
|
ABVPSF Small/Mid Cap Value Class A |
9,908 |
(7,467 |
) |
2,441 |
|||||||||||
|
American Century VP Inflation Protection Class I |
15,564 |
(15,724 |
) |
(160 |
) |
||||||||||
|
American Funds Global Growth Class 2 |
13,644 |
(6,331 |
) |
7,313 |
|||||||||||
|
American Funds Global Small Capitalization Class 2 |
16,702 |
(4,375 |
) |
12,327 |
|||||||||||
|
American Funds Growth Class 2 |
48,317 |
(28,148 |
) |
20,169 |
|||||||||||
|
American Funds Growth-Income Class 2 |
34,236 |
(27,091 |
) |
7,145 |
|||||||||||
|
American Funds International Class 2 |
52,017 |
(19,878 |
) |
32,139 |
|||||||||||
|
BlackRock Global Allocation V.I. Class I |
46,666 |
(14,516 |
) |
32,150 |
|||||||||||
|
Delaware VIP Diversified Income Standard Class |
34,553 |
(27,201 |
) |
7,352 |
|||||||||||
|
Delaware VIP Emerging Markets Standard Class |
21,390 |
(12,727 |
) |
8,663 |
|||||||||||
|
Delaware VIP High Yield Standard Class |
10,140 |
(7,960 |
) |
2,180 |
|||||||||||
|
Delaware VIP Limited-Term Diversified Income Standard Class |
25,398 |
(1,525 |
) |
23,873 |
|||||||||||
|
Delaware VIP REIT Standard Class |
18,344 |
(9,637 |
) |
8,707 |
|||||||||||
|
Delaware VIP Small Cap Value Standard Class |
21,235 |
(9,453 |
) |
11,782 |
|||||||||||
|
Delaware VIP Smid Cap Growth Standard Class |
11,813 |
(9,117 |
) |
2,696 |
|||||||||||
|
Delaware VIP U.S. Growth Standard Class |
13,046 |
(5,860 |
) |
7,186 |
|||||||||||
|
Delaware VIP Value Standard Class |
11,689 |
(9,069 |
) |
2,620 |
|||||||||||
|
Deutsche Alternative Asset Allocation VIP Class A |
9,960 |
(453 |
) |
9,507 |
|||||||||||
|
Deutsche Equity 500 Index VIP Class A |
12,114 |
(9,032 |
) |
3,082 |
|||||||||||
|
Deutsche Small Cap Index VIP Class A |
16,002 |
(9,278 |
) |
6,724 |
|||||||||||
|
Fidelity VIP Asset Manager Initial Class |
92 |
(1,996 |
) |
(1,904 |
) |
||||||||||
|
Fidelity VIP Contrafund Service Class |
22,142 |
(20,701 |
) |
1,441 |
|||||||||||
|
Fidelity VIP Equity-Income Initial Class |
755 |
(3,227 |
) |
(2,472 |
) |
||||||||||
|
Fidelity VIP Equity-Income Service Class |
1,725 |
(861 |
) |
864 |
|||||||||||
|
Fidelity VIP Growth Service Class |
7,660 |
(5,833 |
) |
1,827 |
|||||||||||
M-54
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
6. Changes in Units Outstanding (continued)
|
Subaccount |
Units Issued |
Units Redeemed |
Net Increase (Decrease) |
||||||||||||
|
Fidelity VIP Growth Opportunities Service Class |
566 |
(622 |
) |
(56 |
) |
||||||||||
|
Fidelity VIP High Income Service Class |
485 |
(771 |
) |
(286 |
) |
||||||||||
|
Fidelity VIP Investment Grade Bond Initial Class |
886 |
(2,483 |
) |
(1,597 |
) |
||||||||||
|
Fidelity VIP Mid Cap Service Class |
8,942 |
(3,933 |
) |
5,009 |
|||||||||||
|
Fidelity VIP Overseas Service Class |
2,634 |
(6,047 |
) |
(3,413 |
) |
||||||||||
|
Franklin Income VIP Class 1 |
23,736 |
(9,127 |
) |
14,609 |
|||||||||||
|
Franklin Mutual Shares VIP Class 1 |
11,035 |
(3,143 |
) |
7,892 |
|||||||||||
|
Franklin Small-Mid Cap Growth VIP Class 1 |
2,631 |
(4,608 |
) |
(1,977 |
) |
||||||||||
|
Invesco V.I. American Franchise Series I |
2,776 |
(5,227 |
) |
(2,451 |
) |
||||||||||
|
Invesco V.I. Core Equity Series I |
9,049 |
(16,019 |
) |
(6,970 |
) |
||||||||||
|
Invesco V.I. Diversified Income Series I |
221 |
(2,048 |
) |
(1,827 |
) |
||||||||||
|
Invesco V.I. International Growth Series I |
18,604 |
(2,008 |
) |
16,596 |
|||||||||||
|
Janus Aspen Balanced Institutional Class |
683 |
(2,934 |
) |
(2,251 |
) |
||||||||||
|
Janus Aspen Balanced Service Class |
1,849 |
(1,685 |
) |
164 |
|||||||||||
|
Janus Aspen Enterprise Service Class |
265 |
(968 |
) |
(703 |
) |
||||||||||
|
Janus Aspen Global Research Institutional Class |
1,274 |
(4,167 |
) |
(2,893 |
) |
||||||||||
|
Janus Aspen Global Research Service Class |
365 |
(3,238 |
) |
(2,873 |
) |
||||||||||
|
Janus Aspen Global Technology Service Class |
58 |
(142 |
) |
(84 |
) |
||||||||||
|
LVIP Baron Growth Opportunities Standard Class |
7,990 |
(656 |
) |
7,334 |
|||||||||||
|
LVIP Baron Growth Opportunities Service Class |
8,924 |
(4,010 |
) |
4,914 |
|||||||||||
|
LVIP BlackRock Emerging Markets RPM Standard Class |
10,678 |
(428 |
) |
10,250 |
|||||||||||
|
LVIP BlackRock Equity Dividend RPM Standard Class |
11,521 |
(2,390 |
) |
9,131 |
|||||||||||
|
LVIP BlackRock Inflation Protected Bond Standard Class |
18,869 |
(1,904 |
) |
16,965 |
|||||||||||
|
LVIP Capital Growth Standard Class |
6,514 |
(1,122 |
) |
5,392 |
|||||||||||
|
LVIP Clarion Global Real Estate Standard Class |
18,247 |
(6,254 |
) |
11,993 |
|||||||||||
|
LVIP Columbia Small-Mid Cap Growth RPM Standard Class |
310 |
(103 |
) |
207 |
|||||||||||
|
LVIP Delaware Bond Standard Class |
61,576 |
(29,431 |
) |
32,145 |
|||||||||||
|
LVIP Delaware Diversified Floating Rate Standard Class |
15,113 |
(1,063 |
) |
14,050 |
|||||||||||
|
LVIP Delaware Foundation Aggressive Allocation Standard Class |
8,098 |
(1,609 |
) |
6,489 |
|||||||||||
|
LVIP Delaware Growth and Income Standard Class |
2,557 |
(1,383 |
) |
1,174 |
|||||||||||
|
LVIP Delaware Social Awareness Standard Class |
9,539 |
(626 |
) |
8,913 |
|||||||||||
|
LVIP Delaware Special Opportunities Standard Class |
8,676 |
(1,785 |
) |
6,891 |
|||||||||||
|
LVIP Dimensional Non-U.S. Equity RPM Standard Class |
13,052 |
(541 |
) |
12,511 |
|||||||||||
|
LVIP Dimensional U.S. Equity RPM Standard Class |
18,903 |
(628 |
) |
18,275 |
|||||||||||
|
LVIP Dimensional/Vanguard Total Bond Standard Class |
18,937 |
(7,631 |
) |
11,306 |
|||||||||||
|
LVIP Global Income Standard Class |
19,937 |
(3,890 |
) |
16,047 |
|||||||||||
|
LVIP JPMorgan High Yield Standard Class |
17,906 |
(1,782 |
) |
16,124 |
|||||||||||
|
LVIP JPMorgan Mid Cap Value RPM Standard Class |
6,976 |
(3,201 |
) |
3,775 |
|||||||||||
|
LVIP Managed Risk Profile 2010 Standard Class |
— |
(7,524 |
) |
(7,524 |
) |
||||||||||
|
LVIP Managed Risk Profile 2020 Standard Class |
143 |
(15,693 |
) |
(15,550 |
) |
||||||||||
|
LVIP Managed Risk Profile 2030 Standard Class |
1,220 |
(3,272 |
) |
(2,052 |
) |
||||||||||
|
LVIP Managed Risk Profile 2040 Standard Class |
327 |
(2,158 |
) |
(1,831 |
) |
||||||||||
|
LVIP Managed Risk Profile Conservative Standard Class |
2,829 |
(317 |
) |
2,512 |
|||||||||||
|
LVIP Managed Risk Profile Growth Standard Class |
33,142 |
(22,836 |
) |
10,306 |
|||||||||||
|
LVIP Managed Risk Profile Moderate Standard Class |
32,862 |
(21,896 |
) |
10,966 |
|||||||||||
|
LVIP MFS International Growth Standard Class |
7,724 |
(1,048 |
) |
6,676 |
|||||||||||
|
LVIP MFS Value Standard Class |
25,141 |
(10,462 |
) |
14,679 |
|||||||||||
|
LVIP Mid-Cap Value Standard Class |
4,494 |
(2,760 |
) |
1,734 |
|||||||||||
|
LVIP Mondrian International Value Standard Class |
9,579 |
(10,202 |
) |
(623 |
) |
||||||||||
|
LVIP Money Market Standard Class |
381,264 |
(310,774 |
) |
70,490 |
|||||||||||
|
LVIP SSgA Bond Index Standard Class |
11,044 |
(8,338 |
) |
2,706 |
|||||||||||
|
LVIP SSgA Conservative Index Allocation Standard Class |
79 |
(13,036 |
) |
(12,957 |
) |
||||||||||
|
LVIP SSgA Conservative Structured Allocation Standard Class |
252 |
(21 |
) |
231 |
|||||||||||
|
LVIP SSgA Developed International 150 Standard Class |
1,599 |
(1,070 |
) |
529 |
|||||||||||
|
LVIP SSgA Emerging Markets 100 Standard Class |
9,613 |
(3,735 |
) |
5,878 |
|||||||||||
|
LVIP SSgA Global Tactical Allocation RPM Standard Class |
7,802 |
(32,890 |
) |
(25,088 |
) |
||||||||||
|
LVIP SSgA International Index Standard Class |
2,808 |
(166 |
) |
2,642 |
|||||||||||
|
LVIP SSgA Large Cap 100 Standard Class |
4,455 |
(1,602 |
) |
2,853 |
|||||||||||
|
LVIP SSgA Moderate Index Allocation Standard Class |
17,243 |
(1,512 |
) |
15,731 |
|||||||||||
|
LVIP SSgA Moderate Structured Allocation Standard Class |
24,527 |
(11,339 |
) |
13,188 |
|||||||||||
|
LVIP SSgA Moderately Aggressive Index Allocation Standard Class |
7,782 |
(1,412 |
) |
6,370 |
|||||||||||
|
LVIP SSgA Moderately Aggressive Structured Allocation Standard Class |
32,996 |
(496 |
) |
32,500 |
|||||||||||
M-55
Lincoln Life & Annuity Flexible Premium Variable Life Account M
Notes to financial statements (continued)
6. Changes in Units Outstanding (continued)
|
Subaccount |
Units Issued |
Units Redeemed |
Net Increase (Decrease) |
||||||||||||
|
LVIP SSgA S&P 500 Index Standard Class |
37,444 |
(10,322 |
) |
27,122 |
|||||||||||
|
LVIP SSgA Small-Cap Index Standard Class |
8,261 |
(4,352 |
) |
3,909 |
|||||||||||
|
LVIP SSgA Small-Mid Cap 200 Standard Class |
6,013 |
(370 |
) |
5,643 |
|||||||||||
|
LVIP T. Rowe Price Growth Stock Standard Class |
2,874 |
(2,675 |
) |
199 |
|||||||||||
|
LVIP T. Rowe Price Structured Mid-Cap Growth Standard Class |
6,902 |
(906 |
) |
5,996 |
|||||||||||
|
LVIP Templeton Growth RPM Standard Class |
3,355 |
(773 |
) |
2,582 |
|||||||||||
|
LVIP UBS Large Cap Growth RPM Standard Class |
1,189 |
(1,013 |
) |
176 |
|||||||||||
|
LVIP Vanguard Domestic Equity ETF Standard Class |
2,933 |
(298 |
) |
2,635 |
|||||||||||
|
LVIP Vanguard International Equity ETF Standard Class |
13,224 |
(1,341 |
) |
11,883 |
|||||||||||
|
M Capital Appreciation |
25 |
(28 |
) |
(3 |
) |
||||||||||
|
M International Equity |
80 |
(45 |
) |
35 |
|||||||||||
|
M Large Cap Growth |
62 |
(28 |
) |
34 |
|||||||||||
|
M Large Cap Value |
72 |
(46 |
) |
26 |
|||||||||||
|
MFS VIT Core Equity Initial Class |
101 |
(13 |
) |
88 |
|||||||||||
|
MFS VIT Growth Initial Class |
7,110 |
(12,978 |
) |
(5,868 |
) |
||||||||||
|
MFS VIT Total Return Initial Class |
13,339 |
(14,860 |
) |
(1,521 |
) |
||||||||||
|
MFS VIT Utilities Initial Class |
11,471 |
(5,159 |
) |
6,312 |
|||||||||||
|
NB AMT Large Cap Value I Class |
135 |
(658 |
) |
(523 |
) |
||||||||||
|
NB AMT Mid Cap Growth I Class |
18,895 |
(9,473 |
) |
9,422 |
|||||||||||
|
NB AMT Mid Cap Intrinsic Value I Class |
3,714 |
(3,901 |
) |
(187 |
) |
||||||||||
|
PIMCO VIT CommodityRealReturn Strategy Administrative Class |
30,451 |
(2,698 |
) |
27,753 |
|||||||||||
|
Putnam VT Global Health Care Class IB |
350 |
(292 |
) |
58 |
|||||||||||
|
Putnam VT Growth & Income Class IB |
12 |
(31 |
) |
(19 |
) |
||||||||||
|
Templeton Foreign VIP Class 1 |
1,275 |
(1,568 |
) |
(293 |
) |
||||||||||
|
Templeton Foreign VIP Class 2 |
631 |
(1,872 |
) |
(1,241 |
) |
||||||||||
|
Templeton Global Bond VIP Class 1 |
3,850 |
(5,859 |
) |
(2,009 |
) |
||||||||||
|
Templeton Growth VIP Class 1 |
2,047 |
(2,742 |
) |
(695 |
) |
||||||||||
|
Templeton Growth VIP Class 2 |
776 |
(2,364 |
) |
(1,588 |
) |
||||||||||
7. Subsequent Event
Management evaluated subsequent events through the date these financial statements were issued and determined there were no additional matters to be disclosed.
M-56
Report of Independent Registered Public Accounting Firm
Board of Directors of Lincoln Life & Annuity Company of New York
and
Contract Owners of Lincoln Life & Annuity Flexible Premium Variable Life Account M
We have audited the accompanying statements of assets and liabilities of Lincoln Life & Annuity Flexible Premium Variable Life Account M ("Variable Account"), comprised of the subaccounts described in Note 1, as of December 31, 2014, and the related statements of operations for the year then ended and the statements of changes in net assets for each of the two years in the period then ended, or for those sub-accounts operating for portions of such periods as disclosed in the financial statements. These financial statements are the responsibility of the Variable Account's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Variable Account's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Variable Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of investments owned as of December 31, 2014, by correspondence with the fund companies, or their transfer agents, as applicable. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the respective subaccounts constituting Lincoln Life & Annuity Flexible Premium Variable Life Account M at December 31, 2014, and the results of their operations and the changes in their net assets for the periods described above, in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
April 1, 2015
M-57
| (a) | Resolution of the Board of Directors of Lincoln Life & Annuity Company of New York and related documents authorizing establishment of the Account.(1) |
| (b) | N/A |
| (c) | (1) | Principal Underwriting Agreement between Lincoln Life & Annuity Company of New York and Lincoln Financial Distributors, Inc.(2) |
| (d) | (1) | Policy Form LN683 NY (11) |
| (2) | Change of Insured Rider—Policy Form LR496 NY(3) |
| (3) | Overloan Protection Rider—Policy Form LR540(4) |
| (4) | Waiver of Monthly Deduction Rider—Policy Form LR436 LNY, LR437 LNY(5) |
| (5) | Exec Enhanced Surrender Value Rider—Policy Form LR547 NY (11) |
| (e) | (1) | Application—Policy Form LFF06321-18_7-10 (11) |
| (2) | Addendum to Application—Policy Form LFF06322-18_7-10 (11) |
| (f) | (1) | Articles of Incorporation of Lincoln Life & Annuity Company of New York.(7) |
| (2) | Bylaws of Lincoln Life & Annuity Company of New York.(7) |
| (g) | Form of Reinsurance Contracts(4) |
| (h) | Fund Participation Agreements, and amendments thereto, between Lincoln Life & Annuity Company of New York and: |
| (1) | AIM Variable Insurance Funds (Invesco Variable Insurance Funds) (10) |
| (2) | AllianceBernstein Variable Products Series Fund, Inc. (11) |
| (3) | American Funds Insurance Series (11) |
| (4) | BlackRock Variable Series Funds, Inc. (6) |
| (5) | Delaware VIP Trust (11) |
| (6) | Deutsche Variable Series II (11) |
| (7) | Fidelity Variable Insurance Products (11) |
| (8) | Franklin Templeton Variable Insurance Products Trust (11) |
| (9) | JPMorgan Insurance Trust (11) |
| (10) | Legg Mason Partners Variable Equity Trust (11) |
| (11) | Lincoln Variable Insurance Products Trust (11) |
| (12) | MFS Variable Insurance Trust (11) |
| (13) | PIMCO Variable Insurance Trust (11) |
| (i) | (1) | Accounting and Financial Administrative Services Agreement dated October 1, 2007 among Mellon Bank, N.A., The Lincoln National Life Insurance Company and Lincoln Life & Annuity Company of New York(8). |
| (2) | Amended and Restated Service Agreement by and between Lincoln Life & Annuity Company of New York and The Lincoln National Life Insurance Company, effective January 1, 2004.(9) |
| (j) | Not applicable. |
| (k) | Opinion and Consent of John L. Reizian, Esquire (Filed Herewith) |
| (l) | Not Applicable. |
| (m) | Not Applicable. |
| (n) | Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm |
| (o) | Not applicable. |
| (p) | Not applicable. |
| (q) | Compliance Procedures (11) |
| (1) | Incorporated by reference to Registration Statement on Form N-8B-2 (File No. 811-08651) filed on February 11, 1998. |
| (2) | Incorporated by reference to Post-Effective Amendment No. 1 on Form N-4 (File No. 333-145531) filed on November 16, 2007. |
| (3) | Incorporated by reference to Post-Effective Amendment No. 7 on Form S-6 (File No. 333-42507) filed on April 20, 2001. |
| (4) | Incorporated by reference to Registration Statement on Form N-6 (File No. 333-148917) filed on January 29, 2008 |
| (5) | Incorporated by reference to Registration Statement on Form S-6 (File No. 333-42507) filed on December 17, 1997. |
| (6) | Incorporated by reference to Post-Effective Amendment No. 14 on Form N-6 (File No. 333-155333) filed on April 1, 2011. |
| (7) | Incorporated by reference to Post-Effective Amendment No. 17 on Form N-6 to Registration Statement on Form S-6 (File No. 033-77496) filed on April 2, 2007. |
| (8) | Incorporated herein by reference to the Registration Statement on Form N-4 (File No. 333-147673) filed on November 28, 2007. |
| (9) | Incorporated by reference to Post-Effective Amendment No. 3 on Form N-6 (File No. 333-84684) filed on April 7, 2004. |
| (10) | Incorporated by reference to Post-Effective Amendment No. 17 on Form N-6 (File No. 333-155333) filed on April 2, 2013. |
| (11) | Incorporated by reference to Registration Statement on Form N-6 (File No. 333-203099) filed on March 30, 2015. |
| Name | Positions and Offices with Depositor | |
| Dennis R. Glass** | President and Director | |
| Ellen G. Cooper** | Executive Vice President, Chief Investment Officer and Director | |
| Randal J. Freitag** | Executive Vice President, Chief Financial Officer and Director | |
| George W. Henderson, III Granville Capital 300 North Greene Street Greensboro, NC 27401 | Director | |
| Mark E. Konen** | Executive Vice President and Director | |
| M. Leanne Lachman 870 United Nations Plaza, #19-E New York, NY 10017 | Director | |
| Louis G. Marcoccia Senior Vice President Syracuse University Crouse-Hinds Hall, Suite 620 900 South Crouse Avenue Syracuse, NY 13244 | Director | |
| Patrick S. Pittard 20 Cates Ridge Atlanta, GA 30327 | Director | |
| Robert O. Sheppard* | Second Vice President, Secretary and General Counsel |
| *** | Principal business address is 100 North Greene Street, Greensboro, NC 27401 |
| (a) | Brief description of indemnification provisions: |
| In general, Article VII of the By-Laws of Lincoln Life & Annuity Company of New York provides that Lincoln New York will indemnify certain persons against expenses, judgments and certain other specified costs incurred by any such person if he/she is made a party or is threatened to be made a party to a suit or proceeding because he/she was a director, officer, or employee of Lincoln New York, as long as he/she acted in good faith and in a manner he/she reasonably believed to be in the best interests of, or act opposed to the best interests of, Lincoln New York. Certain additional conditions apply to indemnification in criminal proceedings. | |
| In particular, separate conditions govern indemnification of directors, officers, and employees of Lincoln Life in connection with suits by, or in the right of, Lincoln New York. | |
| Please refer to Article VII of the By-Laws of Lincoln New York (Exhibit No. 6(b) hereto) for the full text of the indemnification provisions. Indemnification is permitted by, and is subject to the requirements of, New York law. | |
| (b) | Undertaking pursuant to Rule 484 of Regulation C under the Securities Act of 1933: |
| Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the provisions described in Item 28(a) above or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer, or controlling person of the Registrant in the successful defense of any such action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. |
| (a) | Lincoln Financial Distributors, Inc. currently serves as Principal Underwriter for; Lincoln Life & Annuity Variable Annuity Account H; Lincoln Life & Annuity Flexible Premium Variable Life Account JA-B; Lincoln National Variable Annuity Account L; Lincoln Life & Annuity Variable Annuity Account L; Lincoln Life & Annuity Flexible Premium Variable Life Account M; Lincoln New York Account N for Variable Annuities; LLANY Separate Account R for Flexible Premium Variable Life Insurance; LLANY Separate Account S for Flexible Premium Variable Life Insurance; and Lincoln Life & Annuity Flexible Premium Variable Life Account Y. |
| (b) | Officers and Directors of Lincoln Financial Distributors, Inc.: |
| Name | Positions and Offices with Underwriter | |
| Wilford H. Fuller* | President, Chief Executive Officer and Director | |
| Jeffrey D. Coutts* | Senior Vice President and Treasurer | |
| Patrick J. Caulfield** | Vice President, Chief Compliance Officer and Senior Counsel | |
| Elizabeth M. O’Brien* | Senior Vice President and Director | |
| Thomas O’Neill* | Senior Vice President, Chief Operating Officer and Director | |
| Carl R. Pawsat*** | Interim Financial and Operation Principal | |
| Nancy A. Smith* | Secretary |
| *** | Principal business address is 100 North Greene Street, Greensboro, NC 27401 |
| (c) | N/A |
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant, Lincoln Life & Annuity Flexible Premium Variable Life Account M, has duly caused this Pre-Effective Amendment No. 1 to the Initial Registration Statement on Form N-6 to be signed on its behalf by the undersigned duly authorized, in the City of Hartford and State of Connecticut, on the 16th day of June, 2015.
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Variable Life Account Y | |
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By: |
/s/ Joshua R. Durand |
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Assistant Vice President |
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Lincoln Life & Annuity Company of New York |
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Lincoln Life & Annuity Company of New York | |
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(Depositor) | |
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By: |
/s/ Joshua R. Durand |
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Assistant Vice President |
Pursuant to the requirements of the Securities Act of 1933, this Pre-Effective Amendment No.: 1 to the Initial Registration Statement (File No.:333-203099; 811-08559; CIK: 0001051629) has been signed below on June 16, 2015, by the following persons, as officers and directors of the Depositor, in the capacities indicated:
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/s/ Dennis R. Glass * |
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President |
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/s/ Ellen G. Cooper * |
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Executive Vice President, Chief Investment Officer and Director |
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/s/ Randal J. Freitag * |
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Executive Vice President, Chief Financial Officer and Director |
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/s/ George W. Henderson, III * |
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Director |
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/s/ Mark E. Konen * |
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Executive Vice President and Director |
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/s/ M. Leanne Lachman * |
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Director |
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/s/ Louis G. Marcoccia * |
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/s/ Patrick S. Pittard * |
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Director |
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*By: |
/s/ John L. Reizian |
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Attorney-in-Fact, pursuant to a Power-of-Attorney filed with this Registration Statement |
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POWER OF ATTORNEY
We, the undersigned directors and/or officers of Lincoln Life & Annuity Company of New York, hereby constitute and appoint Delson R. Campbell, Scott C. Durocher, Kimberly A. Genovese, Daniel P. Herr, Donald E. Keller, Brian A. Kroll, John L. Reizian, Lawrence A. Samplatsky, Stephen R. Turer and John D. Weber, individually, our true and lawful attorneys-in-fact, with full power to each of them to sign for us, in our names and in the capacities indicated below, any Registration Statements and any and all amendments to Registration Statements; including exhibits, or other documents filed on Forms N-6 or N-4 or any successors or amendments to these Forms, filed with the Securities and Exchange Commission, under the Securities Act of 1933 and/or Securities Act of 1940, on behalf of the Company in its own name or in the name of one of its Separate Accounts, hereby ratifying and confirming our signatures as they may be signed by any of our attorneys-in-fact to any amendment to said Registration Statements as follows:
Variable Life Insurance Separate Accounts:
Lincoln Life & Annuity Flexible Premium Variable Life Account M: File No. 333-141782, 333-141788, 333-141789, 333-141785, 333-141790, 333-141779, 333-141767, 333-141771, 333-141775, 333-148917; 333-155333; 333-170383; 333-203099; 811-08559
LLANY Separate Account R for Flexible Premium Variable Life: File No. 333-141780, 333-141784, 333-141786, 333-141768, 333-141772, 333-141776; 333-149053; 811-08651
LLANY Separate Account S for Flexible Premium Variable Life: File No. 333-141777, 333-141773, 333-141769; 811-09257
Lincoln Life & Annuity Flexible Premium Variable Life Account Y: File No. 333-141781, 333-141783, 333-141787, 333-141770, 333-141774, 333-141778; 333-159954, 811-21029
Lincoln Life & Annuity Flexible Variable Life Account JA-B: 033-77496; 811-08470
Variable Annuities Separate Accounts:
Lincoln Life & Annuity Variable Annuity Account H: 333-141756, 333-141758, 333-141761, 333-141754, 333-141763, 333-141766, 333-171097; 333-176216; 333-181617; 811-08441
Lincoln Life & Annuity Variable Annuity Account L: 333-141755; 811-07785
Lincoln New York Account N for Variable Annuities: 333-141752, 333-141757, 333-141759, 333-141760, 333-141762, 333-145531, 333-149449; 333-171096; 333-175691; 333-176213; 333-181616; 333-186895; 333-193276; 333-193277; 333-193278; 811-09763
Except as otherwise specifically provided herein, the power-of-attorney granted herein shall not in any manner revoke in whole or in part any power-of-attorney that each person whose signature appears below has previously executed. This power-of-attorney shall not be revoked by any subsequent power-of-attorney each person whose signature appears below may execute, unless such subsequent power specifically refers to this power-of-attorney or specifically states that the instrument is intended to revoke all prior general powers-of-attorney or all prior powers-of-attorney.
This Power-of-Attorney may be executed in separate counterparts each of which when executed and delivered shall be an original; but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of a number of copies, each signed by less than all, but together signed by all, of the undersigned.
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/s/ Dennis R. Glass |
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President and Director |
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/s/ Ellen Cooper |
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Executive Vice President, Chief Investment Officer and Director |
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Executive Vice President; Chief Financial Officer and Director | |
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Director | |
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/s/ Mark E. Konen |
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Executive Vice President and Director |
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Director | |
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Director | |
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Director | |
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We, Delson R. Campbell, Scott C. Durocher, Kimberly A. Genovese, Daniel P. Herr, Donald E. Keller, Brian A. Kroll, John L. Reizian, Lawrence A. Samplatsky, Stephen R. Turer and John D. Weber, have read the foregoing Power of Attorney. We are the person(s) identified therein as agent(s) for the principal named therein. We acknowledge our legal responsibilities.
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/s/ Kimberly A. Genovese |
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Kimberly A. Genovese |
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/s/ Danial P. Herr |
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Daniel P. Herr |
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/s/ Donald E. Keller |
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/s/ Brian A. Kroll |
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/s/ John L. Reizian |
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/s/ Lawrence A. Samplatsky |
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Lawrence A. Samplatsky |
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/s/ Stephen R. Turer |
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/s/ John D. Weber |
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Version: June 2015 |
|
| This ‘N-6/A’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 1/1/17 | ||||
| 4/30/16 | ||||
| 1/1/16 | ||||
| Filed on: | 6/16/15 | |||
| 4/1/15 | 485BPOS | |||
| 3/30/15 | N-6 | |||
| 1/1/15 | ||||
| 12/31/14 | 24F-2NT, NSAR-U | |||
| 10/1/14 | ||||
| 1/1/14 | ||||
| 12/31/13 | 24F-2NT, NSAR-U | |||
| 4/2/13 | 485BPOS | |||
| 1/18/13 | ||||
| 1/1/13 | ||||
| 12/31/12 | 24F-2NT, NSAR-U | |||
| 4/1/11 | 485BPOS | |||
| 1/29/08 | N-6 | |||
| 11/28/07 | ||||
| 11/16/07 | ||||
| 10/1/07 | ||||
| 4/2/07 | N-6 | |||
| 8/17/06 | ||||
| 4/7/04 | 485BPOS | |||
| 1/1/04 | ||||
| 4/20/01 | 485BPOS | |||
| 5/18/99 | ||||
| 2/11/98 | ||||
| 12/17/97 | N-8A, N-8B-2, S-6 | |||
| 11/24/97 | ||||
| 6/8/97 | ||||
| List all Filings | ||||