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Sentry Variable Life Account I – ‘N-30D/A’ for 12/31/18

On:  Friday, 8/23/19, at 11:47am ET   ·   Effective:  8/23/19   ·   For:  12/31/18   ·   Accession #:  730150-19-17   ·   File #:  811-04327

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 8/23/19  Sentry Variable Life Account I    N-30D/A    12/31/18    1:1.0M                                   Sentry Var Account II
          → Sentry Variable Life Account I

Amendment to Annual or Semi-Annual Report Mailed to Shareholders of an Investment Company   —   Rule 30d-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D/A     Audit Opinion & Financials                          HTML    341K

This is an HTML Document rendered as filed.  [ Alternative Formats ]

 C: 
Rationale for Amended Filing
Sentry Variable Life Account I (the "Variable Account") is filing this Amendment No. 1 (this "Amended Filing") to the Variable Account's Annual Report on Form N-30D for the fiscal year ended December 31, 2018, as filed with the Securities and Exchange Commission (the "SEC") on March 1, 2019 (the "Original Filing"). The Original Filing contained the following:

  ▪  A mis-keyed amount of "$121" for dividends for Janus Henderson Research's Statement of Operations for the year ended December 31, 2018. 
 This amount has been corrected in the Amended Filing to “1,121”.
  ▪  A mis-keyed amount of “$(21)” for Net investment income (loss) for Janus Henderson Global Research Statement of Operations for the year ended December 31, 2018. 
 This amount has been correct to “$21” in the Amended Filing.
 ▪  A mis-keyed right parentheses for T. Rowe Price Government Money Portfolio total return in Note 7 (“Financial Highlights”) for the year ended December 31, 2018.  
 The right parentheses has been removed in the Amended Filing.

For ease of reference, this Amended Filing amends and restates the Original Filing in its entirety, making only the amendments described above.  No other amendments have been made to the Original Filing or disclosures made in the Original Filing.  This Amended Filing speaks as of the original filing date of the Original Filing and does not reflect any events that may have occurred subsequent to the original filing date. Accordingly, this Amended Filing should be read in conjunction with our other filings made with the SEC subsequent to the filing of the Original Filing, including any amendments to those filings.
 


 Report of Independent Registered Public Accounting FirmTo the Board of Directors of Sentry Life Insurance Company and the Contract Owners of Sentry Variable Life Account I:Opinion on the Financial StatementsWe have audited the accompanying statement of assets and liabilities of the sub-accounts listed in the Appendix that comprise the Sentry Variable Life Account I (the Separate Account) as of December 31, 2018, the related statements of operations for the year then ended and changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) including the financial highlights in Note 7 for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each sub-account as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.Basis for OpinionThese financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2018, by correspondence with the transfer agent of the underlying mutual funds. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.  We have served as the Separate Account’s auditor since 2007.Milwaukee, Wisconsin February 25, 2019      KPMG LLP is a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.  KPMG LLPSuite 1050833 East Michigan Street Milwaukee, WI 53202-5337 
 

 AppendixJanus Henderson Series – Institutional Shares – Research Portfolio (1)Janus Henderson Series – Institutional Shares – Enterprise Portfolio (1)Janus Henderson Series – Institutional Shares – Forty Portfolio (1)Janus Henderson Series – Institutional Shares – Global Research Portfolio (1)Janus Henderson Series – Institutional Shares – Balanced Portfolio (1)T. Rowe Price Fixed Income Series, Inc. – Government Money Portfolio (1)T. Rowe Price Fixed Income Series, Inc. – Limited Term Bond PortfolioT. Rowe Price Equity Series, Inc. – Equity Income PortfolioT. Rowe Price Equity Series, Inc. – Personal Strategy Balanced PortfolioT. Rowe Price International Series, Inc. – International Stock Portfolio(1) See the statement of assets and liabilities for the former name of the sub-acc




SENTRY LIFE INSURANCE COMPANY
Sentry Variable Life Account I
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2018

Assets:

Investments at fair value:
 
*
  
Janus Henderson Series - Institutional Shares:
      
   
**
Research Portfolio, 5,321 shares (cost $166,016)
  
$
 179,330
  
     
Enterprise Portfolio, 59,635 shares (cost $3,337,661)
    
3,996,758
  
     
Forty Portfolio, 8,155 shares (cost $302,712)
    
287,070
  
     
Global Research Portfolio, 470 shares (cost $19,572)
    
22,180
  
     
Balanced Portfolio, 8,224 shares (cost $250,612)
    
277,567
  
               
     
T. Rowe Price Fixed Income Series, Inc.:
        
   
***
Government Money Portfolio, 61,894 shares (cost $61,894)
      61,894  
     
Limited Term Bond Portfolio, 24,220 shares (cost $116,762)
     115,771  
               
     
T. Rowe Price Equity Series, Inc.:
        
     
Equity Income Portfolio, 9,342 shares (cost $247,407)
    
218,227
  
     
Personal Strategy Balanced Portfolio, 66,019 shares (cost $1,315,530)
     1,208,805  
               
     
T. Rowe Price International Series, Inc.:
        
     
International Stock Portfolio, 610 shares (cost $9,454)
     7,958  
               
Total Assets
    
                 6,375,560
  
Total Liabilities
    
-
  
               
Net Assets
  
$
6,375,560
  
               
               See accompanying notes to financial statements
 *      Formerly Janus Aspen Series
 **    Formerly Janus Aspen Janus Portfolio
 *** Formerly T. Rowe Price Prime Reserve Portfolio




SENTRY LIFE INSURANCE COMPANY
Sentry Variable Life Account I
STATEMENT OF OPERATIONS
December 31, 2018

   
For the Year Ended December 31, 2018
  
     
Janus Henderson
Research**
  		      
Janus Henderson
Enterprise
 		      
Janus Henderson
Forty
 		    
Janus Henderson
Global Research
 		      
Janus Henderson
Balanced
 		  
                     
                     
                     
Investment Income:
                              
  Dividends
  
$
1,121
    
$
10,469
    
$
-
    
$
283
    
$
 6,162  
                                         
Expenses:
                                        
  Mortality and expense risk charges
    
2,147
      
46,579
      
3,317
      
263
      
3,034
  
                                         
Net investment income (loss)
    
(1,026
)
    
(36,109
)
    
(3,317
)
    
21

   
3,128
  
                                         
Realized gains (losses) on investments:
                                        
  Realized net investment gain (loss)
    
8,342
      
273,933
      
(947
)
     921      
8,007
  
                                         
  Capital gain distributions received
    
9,910
      
202,436
      
42,818
      
-
      
7,724
  
                                         
  Realized gain (loss) on investments and
                                        
    capital gain distributions, net
    
18,253
      
476,369
      
41,871
       921      
15,732
  
                                         
Unrealized appreciation (depreciation), net
    
(22,595)
      
(487,314)
      
(35,332)
       (2,758)       (19,978)  
                                         
                                         
Net increase (decrease) in net assets from operations
  
$
(5,368)
    
$
 (47,055)
    
$
3,222
    
$
 (1,816)    
$
(1,118)
  


See accompanying notes to financial statements

**
Formerly Janus Aspen Janus Portfolio
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Life Account I
STATEMENT OF OPERATIONS
December 31, 2018

   
For the Year Ended December 31, 2018
  
     
T. Rowe Price
Government Money***
    
T. Rowe Price
Limited Term Bond
      
T. Rowe Price
Equity Income
    
T. Rowe Price
Personal Strategy Balanced
    
T. Rowe Price
International Stock
  
                     
                     
                               
Investment Income:
                              
  Dividends
  
$
807
    
$
1,925
    
$
4,916
    
$
24,025
    
$
 124  
                                         
Expenses:
                                        
  Mortality and expense risk charges
    
646
       995      
2,567
      
14,760
      
161
  
                                         
Net investment income (loss)
    
161
   
931
       2,349
      
9,265
       (37)  
                                         
Realized gains (losses) on investments:
            
                         
  Realized net investment gain (loss)
    
-
      
(917)
    20,087       64,639       1,234  
             
                         
  Capital gain distributions received
    
-
      
-
       21,885      
82,844
       870  
                                         
  Realized gain (loss) on investments and
                                        
    capital gain distributions, net
    
-
      
(917
)
     41,972      
147,483
       2,104  
                                         
Unrealized appreciation (depreciation), net
    
-
       268

    (69,607)      
(232,882)
      
(3,923)
  
                                         
                                         
Net increase (decrease) in net assets from operations
  
$
161

 
$
282

 
$
(25,286)
    
$
(76,134)
    
$
(1,857)
  


See accompanying notes to financial statements

***
Formerly T. Rowe Price Prime Reserve Portfolio
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Life Account I
STATEMENTS OF CHANGES IN NET ASSETS
 
   
For the Years Ended December 31
  
                                       
 
              
   
Janus Henderson
    
Janus Henderson
    
Janus Henderson
    
Janus Henderson
    
Janus Henderson
  
   
Research**
    
Enterprise
    
Forty
      Global Research    
Balanced
  
   
2018
    
2017
    
2018
     2017    
2018
    
2017
    
2018
     2017    
2018
    
2017
  
                                                             
Increase (decrease) in net assets from operations:
                                                         
  Net investment income (loss)
  
$
(1,026
)
  
$
(1,153
)
  
$
(36,109
)
  
$
(31,693
)
  
$
(3,317
)
  
$
(2,810
)
  
$
 21

 
$
(49
)
  
$
3,128
    
$
1,466
  
                                                                                 
  Realized gains (losses) on investments
    
18,253
      
3,875
      
476,369
      
499,439
      
41,871
      
12,232
      
921
      
567
       15,732      
8,197
  
                                                                                 
  Unrealized appreciation (depreciation), net
    
(22,595
 )
   
38,128

   
(487,314
 )
   
450,517

   
(35,332
 )
   
56,537

   
(2,758
 )
   
4,538

    (19,978 )
   
32,023
  
                                                                                 
                                                                                 
Net increase (decrease) in net assets from operations
     (5,368 )
   
40,850

   
(47,055
 )
   
918,263
      
3,222
      
65,959
      
(1,816
 )
   
5,056
      
(1,118
 )
   
41,686
  
                                                                                 
Contract transactions:
                                                                                
  Purchase payments
    
8,020
      
9,106
      
167,435
      
163,578
      
6,999
      
7,763
      
1,800
      
2,571
       9,382      
12,531
  
                                                                                 
  Transfers between subaccounts, net
     (12,330 )
    
-
       (15,347 )
   
-

   
(2,466
 )
    
-

    (819 )
   
-
      
17,742
      
-
  
                                                                                 
  Withdrawals and surrenders
     (2,047
)
    
(922
)
    
(192,224
)
    
(202,515
)
    
65

   
(656
)
    
-
      
-

    (13,526
)
    
(38,044
)
                                                                                 
  Monthly deductions
    
(5,620
)
    
(5,799
)
    
(199,581
)
    
(203,316
)
     (10,659
)
    
(12,696
)
    
(1,861
)
    
(1,775
)
    
(13,882
)
    
(12,789
)
                                                                                 
  Policy loans
    
(41
 )
   
1,043
      
1,456
      
1,577
       (103
)
    
(7)
   
(80)
      
9
      
79
      
103
  
                                                                                 
Net increase (decrease) in net assets
                                                                                
  derived from contract transactions
    
(12,019
 )
   
3,428

   
(238,261
)
    
(240,676
)
    
(6,165
)
    
(5,596
)
    
(960)
      
805
      
(205
)
    
(38,199
 )
                                                                                 
Total increase (decrease) in net assets
     (17,387 )
   
44,278

    (285,316 )
   
677,587
       (2,944 )
   
60,363

   
(2,777)
      
5,861
      
(1,323
  )    
3,487
  
                                                                                 
Net assets at beginning of year
    
196,717
      
152,439
      
4,282,074
      
3,604,487
      
290,013
      
229,650
      
24,956
      
19,095
      
278,890
      
275,403
  
                                                                                 
Net assets at end of year
  
$
179,330
    
$
196,717
    
$
3,996,758
    
$
4,282,074
    
$
287,070
    
$
290,013
    
$
22,180
    
$
24,956
    
$
277,567
    
$
278,890
  
 
See accompanying notes to financial statements
 
**
Formerly Janus Aspen Janus Portfolio
 

SENTRY LIFE INSURANCE COMPANY
Sentry Variable Life Account I
STATEMENTS OF CHANGES IN NET ASSETS
 
   
For the Years Ended December 31
  
               
 
                
T. Rowe Price
    
T. Rowe Price
  
   
T. Rowe Price
    
T. Rowe Price
    
T. Rowe Price
    
Personal Strategy
    
International
  
   
Government Money***
    
Limited Term Bond
    
Equity Income
    
Balanced
    
Stock
  
   
2018
     2017    
2018
    
2017
    
2018
    
2017
    
2018
    
2017
    
2018
    
2017
  
                                                             
Increase (decrease) in net assets from operations:
                                                            
  Net investment income (loss)
  
$
161
 
$
(434
)
  
$
 931    
$
352
    
$
 2,349    
$
1,669
    
$
 9,265    
$
7,025
    
$
 (37 )
 
$
16
  
                                                                                 
  Realized gains (losses) on investments
    
-
      
-
      
(917
)
    
(350
)
    
41,972
      
28,331
       147,483      
112,219
       2,104       986  
                                                                                 
  Unrealized appreciation (depreciation), net
    
-
      
-
       268
   
(4
 )
     (69,607 )
   
2,508

    (232,882 )
   
101,406

    (3,923 )
   
2,824

                                                                                 
                                                                                 
Net increase (decrease) in net assets from operations
     161

   
(434
)
     282

   
(2
 )
    (25,286 )
   
32,508
       (76,134 )
   
220,650
      
(1,857
 )
   
3,826
  
                                                                                 
Contract transactions:
                                                                                
  Purchase payments
    
3,876
      
3,693
       6,182      
6,040
       6,617      
8,877
       53,453      
54,745
      
806
      
862
  
                                                                                 
  Transfers between subaccounts, net
     (74 )
   
-
       27,721      
-
       (5,688)      
-

   
-
      
-

    (8,752 )
   
-
  
                                                                                 
  Withdrawals and surrenders
    
-

   
(6,233
 )
    (135
)
    
(6,892
)
    
(1,287
)
    
(869
)
     (237,052
)
    
(52,956
)
    
-
      
-
  
                                                                                 
  Monthly deductions
    
(3,643
)
    
(4,697
)
    
(4,363
)
    
(4,692
)
    
(8,031
)
    
(8,098
)
    
(82,746
)
    
(80,317
)
    
(753
)
    
(810
)
                                                                                 
  Policy loans
     345      
6,186
      
492
      
6,250
      
301
      
302

   
982
      
204
      
52
      
144

                                                                                 
Net increase (decrease) in net assets
                                                                                
  derived from contract transactions
    
504
   
(1,051
 )
    
29,897
      
706
       (8,088 )
   
212

   
(265,364
)
    
(78,324
)
     (8,647 )
   
196

                                                                                 
Total increase (decrease) in net assets
     665
   
(1,485
 )
     30,179      
704
       (33,374 )
   
32,720
      
(341,498
 )
   
142,326

    (10,504 )
   
4,022
  
                                                                                 
Net assets at beginning of year
    
61,228
      
62,713
      
85,592
      
84,888
      
251,602
      
218,882
      
1,550,303
      
1,407,978
       18,462      
14,440
  
                                                                                 
Net assets at end of year
  
$
 61,894    
$
61,228
    
$
 115,771    
$
85,592
    
$
218,227
    
$
251,602
    
$
 1,208,805    
$
1,550,303
    
$
7,958
    
$
18,462
  
 
See accompanying notes to financial statements
 
***
Formerly T. Rowe Price Prime Reserve Portfolio
 

SENTRY LIFE INSURANCE COMPANY
Sentry Variable Life Account I
NOTES TO FINANCIAL STATEMENTS
December 31, 2018 and 2017
1.
Organization

The Sentry Variable Life Account I (the Variable Life Account) is a segregated investment account of the Sentry Life Insurance Company (the Company) and is registered with the Securities and Exchange Commission (SEC) as a unit investment trust pursuant to the provisions of the Investment Company Act of 1940. The Variable Life Account is an accounting entity wherein all segregated account transactions are reflected.
The Variable Life Account was established by the Company on February 12, 1985 in support of the variable life insurance contracts, and commenced operations on January 13, 1987. The Company discontinued new sales of the variable life insurance contracts on October 13, 2003. Management of the Company has determined that  there is no justification for substantial doubt regarding the entity's ability to continue as a going concern.
The assets of each subaccount of the Variable Life Account are invested in shares of corresponding portfolios of Janus Henderson Series - Institutional Shares, T. Rowe Price Fixed Income Series, Inc., T. Rowe Price Equity Series, Inc., and T. Rowe Price International Series, Inc. (collectively, the Funds) at each portfolio's net asset value in accordance with the selection made by policy owners.
The Funds are diversified open-end investment management companies registered under the Investment Company Act of 1940. A copy of the Funds' annual reports is included in the Variable Life Account's Annual Report.
The Variable Life Account meets the definition of an investment company under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 and is following the accounting and reporting guidance under that Topic.

2.
Significant Accounting Policies

The preparation of financial statements in conformity with U.S. generally accepted accounting principles may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Valuation of Investments
Investments in shares of each of the Funds are valued on the closing net asset value per share at December 31, 2018. The Funds value their investment securities at fair value.
Policy Loans
Variable life insurance contract owners (policyholders) may obtain loans from the Company. The maximum loan amount is 90% of the policyholders' contract cash value minus any applicable surrender charge.
Securities Transactions and Investment Income
Transactions in shares of the Funds are recorded on the trade date if received by 3:00 p.m. central standard time (the date the order to buy and sell is executed). Dividend income is recorded on the ex-dividend date. The cost of Fund shares sold and the corresponding investment gains and losses are determined on the basis of specific identification.
Federal Income Taxes
The Company is taxed as a life insurance company under the provisions of the Internal Revenue Code. The operations of the Variable Life Account are part of the total operations of the Company and are not taxed as a separate entity.
Under Federal income tax law, net investment income and net realized investment gains of the Variable Life Account which are applied to increase net assets are not taxed.
Subsequent Events
In connection with the preparation of the financial statements, the Company evaluated subsequent events after the financial statement date of December 31, 2018 through February 25, 2019, the date the financial statements were issued. No significant subsequent events were identified.

3.
Purchases and Sales of Securities

In 2018, purchases and proceeds on sales of the Funds' shares were as follows:
             
Proceeds
  
        
Purchases
    
on Sales
  
   
**
Janus Henderson Research Portfolio
  
$
 19,108    
$
 22,243
  
     
Janus Henderson Enterprise Portfolio
     421,561
       493,494
  
     
Janus Henderson Forty Portfolio
     63,263
       29,928
  
     
Janus Henderson Global Research Portfolio
     2,100
       3,040
  
     
Janus Henderson Balanced Portfolio
     42,209
       31,562
  
   
***
T. Rowe Price Government Money Portfolio
     5,063
       4,397
  
     
T. Rowe Price Limited Term Bond Portfolio
     57,791
       26,963
  
     
T. Rowe Price Equity Income Portfolio
     72,549
       56,403
  
     
T. Rowe Price Personal Strategy Balanced Portfolio
     164,028
       337,283
  
     
T. Rowe Price International Stock Portfolio
     1,950
       9,765
  
     
    Total
  
$
 849,622
    
$
 1,015,078
  
 

In 2017, purchases and proceeds on sales of the Funds' shares were as follows:
             
Proceeds
  
        
Purchases
    
on Sales
  
   
**
Janus Henderson Research Portfolio
  
$
12,618
    
$
8,660
  
     
Janus Henderson Enterprise Portfolio
    
429,380
      
449,774
  
     
Janus Henderson Forty Portfolio
    
22,072
      
16,271
  
     
Janus Henderson Global Research Portfolio
    
2,860
      
2,105
  
     
Janus Henderson Balanced Portfolio
    
17,371
      
53,579
  
   
***
T. Rowe Price Government Money Portfolio
    
11,505
      
12,990
  
     
T. Rowe Price Limited Term Bond Portfolio
    
13,554
      
12,496
  
     
T. Rowe Price Equity Income Portfolio
    
36,993
      
11,455
  
     
T. Rowe Price Personal Strategy Balanced Portfolio
    
154,736
      
150,620
  
     
T. Rowe Price International Stock Portfolio
    
2,005
      
1,084
  
     
    Total
  
$
703,094
    
$
719,034
  
 
**
Formerly Janus Aspen Janus Portfolio
***
Formerly T. Rowe Price Prime Reserve Portfolio
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Life Account I
NOTES TO FINANCIAL STATEMENTS
December 31, 2018 and 2017
4.
Expenses and Related Party Transactions

A mortality and expense risk premium and a death benefit guarantee risk charge are deducted by the Company from the Variable Life Account on a daily basis which is equal, on an annual basis, to 1.05% (0.90% mortality and expense risk and 0.15% death benefit guarantee risk charge) of the daily net asset value of the Variable Life Account. These charges compensate the Company for assuming these risks under the variable life contract. 
At the beginning of each policy month, the Company makes a deduction, per contract holder, from the cash value of the policy by canceling accumulation units. This deduction consists of the cost of insurance for the policy and any additional benefits provided by rider, if any, for the policy month and a $5 monthly administrative fee. The administrative fee, which is reported through monthly deductions on the Statement of Changes in Net Assets, reimburses the Company for administrative expenses relating to the issuance and maintenance of the contract.
 
The Company deducts a front-end sales expense charge of 5.0% from each premium payment. A surrender charge may be deducted in the event of a surrender to reimburse the Company for expenses incurred in connection with issuing a policy. The full surrender charge, which is reported through withdrawals and surrenders on the Statement of Changes in Net Assets, will be reduced during the first 9 contract years until it reaches zero in the 10th contract year. 
 
The Company deducts from each premium payment the amount of premium taxes levied by any state or government entity. Premium taxes up to 3.0% are imposed by certain states.
Sentry Equity Services, Inc., a related party, acts as the underwriter for the contract.

5.
Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The Variable Life Account categorized its financial instruments into a three level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.
The Company categorizes financial assets recorded at fair value as follows:
Level 1 - Unadjusted quoted prices accessible in active markets for identical assets at the measurement date. The assets utilizing Level 1 valuations represent investments in publicly-traded registered mutual funds with quoted market prices.
Level 2 - Unadjusted quoted prices for similar assets in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means. The assets utilizing Level 2 valuations represent investments in privately-traded registered mutual funds only offered through insurance products. These funds have no unfunded commitments or restrictions and the Variable Life Account always has the ability to redeem its interest in the funds with the investee at NAV daily.
Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2018:
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Variable Account Investments
    
-
    
$
6,375,560
      
-
    
$
6,375,560
  
 
   The Variable Life Account only invests in funds with fair value measurements in Level 2 and did not have any assets or liabilities reported at fair value on a non recurring basis.

6.
Changes in Units Outstanding
 
The changes in units outstanding for the year ended December 31, 2018 were as follows:
             
Units
  
Units
  
Net Increase
             
Issued
  
Redeemed
  
(Decrease)
**
Janus Henderson Research Portfolio
  
524
   1,256
   (732)
 
Janus Henderson Enterprise Portfolio
    
2,347
   5,082
   (2,735)
 
Janus Henderson Forty Portfolio
     792
   1,035
   (244)
 
Janus Henderson Global Research Portfolio
   164
   244
   (80)
 
Janus Henderson Balanced Portfolio
     1,071
   1,082
   (11)
***
T. Rowe Price Government Money Portfolio
   231
   203
   27
 
T. Rowe Price Limited Term Bond Portfolio
   2,052
   954
   1,098
 
T. Rowe Price Equity Income Portfolio
     1,501
   1,765
   (264)
 
T. Rowe Price Personal Strategy Balanced Portfolio
 714
   4,006
   (3,291)
 
T. Rowe Price International Stock Portfolio
   70
   703
   (633)
 
The changes in units outstanding for the year ended December 31, 2017 were as follows:
             
Units
  
Units
  
Net Increase
             
Issued
  
Redeemed
  
(Decrease)
**
Janus Henderson Research Portfolio
  
        773
  
           514
  
              259
 
Janus Henderson Enterprise Portfolio
    
     2,252
  
        5,438
  
          (3,186)
 
Janus Henderson Forty Portfolio
    
        378
  
           649
  
             (271)
 
Janus Henderson Global Research Portfolio
  
        271
  
           185
  
                86
 
Janus Henderson Balanced Portfolio
    
        535
  
        2,255
  
          (1,720)
***
T. Rowe Price Government Money Portfolio
  
        610
  
           667
  
               (57)
 
T. Rowe Price Limited Term Bond Portfolio
  
        449
  
           423
  
                26
 
T. Rowe Price Equity Income Portfolio
    
        337
  
           328
  
                 9
 
T. Rowe Price Personal Strategy Balanced Portfolio
        758
  
        1,829
  
          (1,071)
 
T. Rowe Price International Stock Portfolio
  
          82
  
             69
  
                13

**
Formerly Janus Aspen Janus Portfolio
***
Formerly T. Rowe Price Prime Reserve Portfolio
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Life Account I
NOTES TO FINANCIAL STATEMENTS
December 31, 2018 and 2017
7.
Financial Highlights
A summary of unit values, units outstanding and certain financial performance information for each subaccount for variable life contracts and the expense ratios, excluding expenses of the underlying funds, for the year ended December 31, 2018 is as follows:
                         
Expenses as a % of
Average Net Assets #
    
Income as a % of
Average Net Assets
        
                                     
             
Net Assets
                
             
Unit
                  
Total
  
        
Units
    
Value
    
(000's)
            
Return
  
   
**
Janus Henderson Research Portfolio
     12,738
    
$
 14.08
    
$
 179
      
1.05
%
     0.55
%
     (3.60
)%
     
Janus Henderson Enterprise Portfolio
     49,075
       81.44
       3,997
      
1.05
       0.24
       (1.46
 )
     
Janus Henderson Forty Portfolio
     12,503
       22.96
       287
      
1.05
       -  
      0.91
  
     
Janus Henderson Global Research Portfolio
     2,172
       10.21
       22
      
1.05
       1.14
  
     (7.85
 )
     
Janus Henderson Balanced Portfolio
     10,914
       25.43
       278
      
1.05
       2.15
       (0.37
 )
   
***
T. Rowe Price Government Money Portfolio
     3,347
       18.49       62
      
1.05
       1.32
       0.26

     
T. Rowe Price Limited Term Bond Portfolio
     4,228
       27.38
       116
      
1.05
       2.02
       0.12
  
     
T. Rowe Price Equity Income Portfolio
     8,146
       26.79
       218
      
1.05
       2.03
       (10.45
 )
     
T. Rowe Price Personal Strategy Balanced Portfolio
     16,088
       75.14
       1,209
      
1.05
       1.74
    
(6.07 )
     
T. Rowe Price International Stock Portfolio
     653
       12.19
       8
      
1.05
       0.83
       (15.11 )
 
A summary of unit values, units outstanding and certain financial performance information for each subaccount for variable life contracts and the expense ratios, excluding expenses of the underlying funds, for the year ended December 31, 2017 is as follows:
                         
Expenses as a % of
Average Net Assets #
    
Income as a % of
Average Net Assets
        
                                     
             
Net Assets
                
             
Unit
                  
Total
  
        
Units
    
Value
    
(000's)
            
Return
  
   
**
Janus Henderson Research Portfolio
    
13,469
    
$
14.60
    
$
197
      
1.05
%
    
0.39
%
    
26.56
%
     
Janus Henderson Enterprise Portfolio
    
51,810
      
82.65
      
4,282
      
1.05
      
0.25
      
26.10
  
     
Janus Henderson Forty Portfolio
    
12,746
      
22.75
      
290
      
1.05
      
-
      
28.97
  
     
Janus Henderson Global Research Portfolio
    
2,252
      
11.08
      
25
      
1.05
      
0.82
      
25.72
  
     
Janus Henderson Balanced Portfolio
    
10,925
      
25.53
      
279
      
1.05
      
1.61
      
17.20
  
   
***
T. Rowe Price Government Money Portfolio
    
3,320
      
18.44
      
61
      
1.05
      
0.34
      
(0.71
)
     
T. Rowe Price Limited Term Bond Portfolio
    
3,130
      
27.35
      
86
      
1.05
      
1.46
      
0.00
  
     
T. Rowe Price Equity Income Portfolio
    
8,410
      
29.92
      
252
      
1.05
      
1.76
      
14.82
  
     
T. Rowe Price Personal Strategy Balanced Portfolio
    
19,379
      
80.00
      
1,550
      
1.05
      
1.52
      
16.19
  
     
T. Rowe Price International Stock Portfolio
    
1,286
      
14.36
      
18
      
1.05
      
1.14
      
26.56
  
 
           A summary of unit values, units outstanding and certain financial performance information for each subaccount for variable life contracts and the expense ratios, excluding expenses of the underlying funds, for the year ended December 31, 2016 is as follows:
                         
Expenses as a % of
Average Net Assets #
    
Income as a % of
Average Net Assets
        
                                     
             
Net Assets
                
             
Unit
                  
Total
  
        
Units
    
Value
    
(000's)
            
Return
  
   
Janus Aspen Janus Portfolio
    
13,210
    
$
11.54
    
$
152
      
1.05
%
    
0.53
%
    
(0.55
)%
   
Janus Aspen Enterprise Portfolio
    
54,996
      
65.54
      
3,604
      
1.05
      
0.15
      
11.20
  
   
Janus Aspen Forty Portfolio
    
13,017
      
17.64
      
230
      
1.05
      
-
      
1.13
  
   
Janus Aspen Global Research Portfolio
    
2,166
      
8.82
      
19
      
1.05
      
0.99
      
1.00
  
   
Janus Aspen Balanced Portfolio
    
12,645
      
21.78
      
275
      
1.05
      
2.27
      
3.51
  
   
***
T. Rowe Price Government Money Portfolio
    
3,377
      
18.57
      
63
      
1.05
      
-
      
(1.05
)
     
T. Rowe Price Limited Term Bond Portfolio
    
3,104
      
27.35
      
85
      
1.05
      
1.35
      
0.28
  
     
T. Rowe Price Equity Income Portfolio
    
8,401
      
26.05
      
219
      
1.05
      
2.31
      
17.94
  
     
T. Rowe Price Personal Strategy Balanced Portfolio
    
20,450
      
68.85
      
1,408
      
1.05
      
1.66
      
5.35
  
     
T. Rowe Price International Stock Portfolio
    
1,273
      
11.35
      
14
      
1.05
      
1.08
      
1.07
  
 
# Excluding the effect of the expenses of the underlying fund portfolios and administrative fees charged directly to policyholder accounts.
 
**
Formerly Janus Aspen Janus Portfolio
***
Formerly T. Rowe Price Prime Reserve Portfolio
 
SENTRY LIFE INSURANCE COMPANY
Sentry Variable Life Account I
NOTES TO FINANCIAL STATEMENTS
December 31, 2018 and 2017

A summary of unit values, units outstanding and certain financial performance information for each subaccount for variable life contracts and the expense ratios, excluding expenses of the underlying funds, for the year ended December 31, 2015 is as follows:
                     
Expenses as a % of
Average Net Assets #
    
Income as a % of
Average Net Assets
        
                                 
         
Net Assets
                
         
Unit
                  
Total
  
   
Units
    
Value
    
(000's)
            
Return
  
Janus Aspen Janus Portfolio
    
14,535
    
$
11.60
    
$
169
      
1.05
%
    
0.67
%
    
4.24
%
Janus Aspen Enterprise Portfolio
    
57,595
      
58.94
      
3,395
      
1.05
      
0.64
      
2.94
  
Janus Aspen Forty Portfolio
    
14,499
      
17.44
      
253
      
1.05
      
-
      
11.05
  
Janus Aspen Global Research Portfolio
    
1,775
      
8.73
      
15
      
1.05
      
0.66
      
(3.31
)
Janus Aspen Balanced Portfolio
    
11,707
      
21.04
      
246
      
1.05
      
1.58
      
(0.43
)
T. Rowe Price Prime Reserve Portfolio
    
2,838
      
18.77
      
53
      
1.05
      
-
      
(1.04
)
T. Rowe Price Limited Term Bond Portfolio
    
2,617
      
27.27
      
71
      
1.05
      
1.13
      
(0.74
)
T. Rowe Price Equity Income Portfolio
    
9,386
      
22.09
      
207
      
1.05
      
1.84
      
(7.83
)
T. Rowe Price Personal Strategy Balanced Portfolio
    
22,431
      
65.35
      
1,466
      
1.05
      
1.73
      
(1.09
)
T. Rowe Price International Stock Portfolio
    
1,282
      
11.23
      
14
      
1.05
      
0.96
      
(1.94
)

A summary of unit values, units outstanding and certain financial performance information for each subaccount for variable life contracts and the expense ratios, excluding expenses of the underlying funds, for the year ended December 31, 2014 is as follows:
                     
Expenses as a % of
Average Net Assets #
    
Income as a % of
Average Net Assets
        
                              
         
Net Assets
                
         
Unit
                  
Total
  
   
Units
    
Value
    
(000's)
            
Return
  
Janus Aspen Janus Portfolio
    
17,449
    
$
11.13
    
$
194
      
1.05
%
    
0.36
%
    
11.82
%
Janus Aspen Enterprise Portfolio
    
61,454
      
57.26
      
3,519
      
1.05
      
0.16
      
11.35
  
Janus Aspen Forty Portfolio
    
16,437
      
15.71
      
258
      
1.05
      
0.16
      
7.60
  
Janus Aspen Global Research Portfolio
    
1,769
      
9.03
      
16
      
1.05
      
1.05
      
6.33
  
Janus Aspen Balanced Portfolio
    
14,857
      
21.13
      
314
      
1.05
      
1.74
      
7.38
  
T. Rowe Price Prime Reserve Portfolio
    
3,106
      
18.97
      
59
      
1.05
      
-
      
(1.05
)
T. Rowe Price Limited Term Bond Portfolio
    
2,540
      
27.48
      
70
      
1.05
      
1.26
      
(0.41
)
T. Rowe Price Equity Income Portfolio
    
9,609
      
23.97
      
230
      
1.05
      
1.74
      
6.26
  
T. Rowe Price Personal Strategy Balanced Portfolio
    
24,444
      
66.08
      
1,615
      
1.05
      
1.64
      
4.10
  
T. Rowe Price International Stock Portfolio
    
1,392
      
11.45
      
16
      
1.05
      
1.06
      
(2.27
)
# Excluding the effect of the expenses of the underlying fund portfolios and administrative fees charged directly to policyholder accounts.
 

SENTRY LIFE INSURANCE COMPANY
Sentry Variable Life Account I
NOTES TO FINANCIAL STATEMENTS
December 31, 2018 and 2017

8.
Diversification Requirements

Under the provisions of Section 817(h) of the Internal Revenue Code of 1986 (the Code), as amended, a variable contract, other than a contract issued in connection with certain types of employee benefit plans, will not be treated as a variable contract for federal tax purposes for any period for which the investments of the segregated asset account on which the contract is based are not adequately diversified. Each subaccount is required to satisfy the requirements of Section 817(h). The Code provides that the "adequately diversified" requirement may be met if the underlying investments satisfy either the statutory safe harbor test or diversification requirements set forth in regulations issued by the Secretary of the Treasury.

The Secretary of the Treasury has issued regulations under Section 817(h) of the Code. The Variable Life Account intends that each of the subaccounts shall comply with the diversification requirements and, in the event of any failure to comply, will take immediate action to assure compliance.

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-30D/A’ Filing    Date    Other Filings
Filed on / Effective on:8/23/19
3/1/19N-30D
2/25/1924F-2NT,  NSAR-U
For Period end:12/31/1824F-2NT,  N-30D,  N-CEN,  NSAR-U
12/31/1724F-2NT,  N-30D,  N-30D/A,  NSAR-U
12/31/1624F-2NT,  N-30D,  NSAR-U
12/31/1524F-2NT,  N-30D,  NSAR-U
12/31/1424F-2NT,  N-30D,  NSAR-U
10/13/03
 List all Filings 
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