Continental American Insurance Company - Aflac

1 Annual Statement for the year 2012 of theContinental American Insurance Company2 ASSETSC urrent YearPrior Year1234 Net AdmittedNonadmittedAssetsNetAssetsAssets (Cols. 1 - 2)Admitted Assets1. Bonds (Schedule D)..172,616, ,616, ,441,2542. Stocks (Schedule D): Mortgage loans on real estate (Schedule B): than first Real estate (Schedule A): occupied by the Company (less $..0 encumbrances)..1,761, ,761, ,809, held for the production of income (less $..0 encumbrances).. held for sale (less $..0 encumbrances).. ($..35,618,157, Schedule E-Part 1), cash equivalents ($..0, Schedule E-Part 2) and short-term investments ($..39,117,215, Schedule DA)..74,735, ,735, ,419, loans (including $..0 premium notes)..2,785, ,785, ,426, (Schedule DB).. invested assets (Schedule BA).

2 For , , lending reinvested collateral assets (Schedule DL).. write-ins for invested , cash and invested assets (Lines 1 to 11)..252,398, , ,898, ,097, plants less $..0 charged off (for Title insurers only).. income due and ,352, ,352, ,987, and considerations: premiums and agents' balances in the course of ,116, ,416, ,699, ,951, premiums, agents' balances and installments booked but deferred and not yet due (including $..0 earned but unbilled premiums)..794, , , retrospective : recoverable from ,023, ,023, , held by or deposited with reinsured amounts receivable under reinsurance ,302, ,302, receivable relating to uninsured federal and foreign income tax recoverable and interest deferred tax ,703, ,061, ,642, funds receivable or on , , , data processing equipment and ,878, ,878, ,383, and equipment, including health care delivery assets ($.)

3 0)..4,921, ,921, adjustment in assets and liabilities due to foreign exchange from parent, subsidiaries and ,435, care ($..0) and other amounts ,247, ,247, write-ins for other than invested , , , , assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25)..371,596, ,606, ,989, ,448, Separate Accounts, Segregated Accounts and Protected Cell (Lines 26 and 27)..371,596, ,606, ,989, ,448,966 DETAILS OF of remaining write-ins for Line 11 from overflow (Lines 1101 thru 1103 plus 1198) (Line 11 above).. Fees due on Reinsurance , Prepaid Reinsurance , , , of remaining write-ins for Line 25 from overflow , , (Lines 2501 thru 2503 plus 2598) (Line 25 above)..846, , , ,612 Annual Statement for the year 2012 of theContinental American Insurance Company3 LIABILITIES, SURPLUS AND OTHER FUNDS12 Current YearPrior reserve for life contracts $.

4 29,730,743 (Exhibit 5, Line 9999999) less $..0 included in Line (including $..0 Modco Reserve)..29,730, ,058, reserve for accident and health contracts (including $..15,005,775 Modco Reserve)..46,729, ,943, for deposit-type contracts (Exhibit 7, Line 14, Col. 1) (including $..0 Modco Reserve)..192, , claims: (Exhibit 8, Part 1, Line , Col. 1 less sum of Cols. 9, 10 and 11)..656, , and health (Exhibit 8, Part 1, Line , sum of Cols. 9, 10 and 11)..53,025, ,769, ' dividends $..0 and coupons $..0 due and unpaid (Exhibit 4, Line 10).. for policyholders' dividends and coupons payable in following calendar year - estimated amounts: apportioned for payment (including $..0 Modco).. not yet apportioned (including $..0 Modco).. and similar benefits (including $.)

5 0 Modco).. provisionally held for deferred dividend policies not included in Line and annuity considerations for life and accident and health contracts received in advance less $..0 discount; including $..71,677 accident and health premiums (Exhibit 1, Part 1, Col. 1, sum of Lines 4 and 14)..74, , liabilities not included elsewhere: values on canceled for experience rating refunds, including the liability of $..0 accident and health experience rating refunds of which $..0 is for medical loss ratio rebate per the Public Health Service , , amounts payable on reinsurance, including $..0 assumed and $..32,236,540 ,236, ,736, Maintenance Reserve (IMR, Line 6)..191, to agents due or accrued - life and annuity contracts $..246,103, accident and health $.

6 15,779,979 and deposit-type contract funds $.. ,026, ,547, and expense allowances payable on reinsurance , ,032, expenses due or accrued (Exhibit 2, Line 12, Col. 6)..7,193, ,280, to Separate Accounts due or accrued (net) (including $..0 accrued for expense allowances recognized in reserves, net of reinsured allowances).. , licenses and fees due or accrued, excluding federal income taxes (Exhibit 3, Line 9, Col. 5)..2,705, ,577, federal and foreign income taxes, including $..0 on realized capital gains (losses)..46, , deferred tax investment withheld or retained by Company as agent or , , held for agents' account, including $..0 agents' credit and items not ,976, ,991, adjustment in assets and liabilities due to foreign exchange for benefits for employees and agents if not included money $.

7 0 and interest thereon $.. to stockholders declared and liabilities: valuation reserve (AVR Line 16, Col. 7)..496, , in unauthorized and certified ($..0) held under reinsurance treaties with unauthorized and certified ($..0) to parent, subsidiaries and ,180, ,952, for amounts held under uninsured held under for for securities notes $..0 and interest thereon $.. write-ins for , , liabilities excluding Separate Accounts business (Lines 1 to 25)..206,636, ,450, Separate Accounts liabilities (Line 26 and 27)..206,636, ,450, capital ,500, ,500, capital , , write-ins for other than special surplus ,074, ,000, paid in and contributed surplus (Page 3, Line 33, Col. 2 plus Page 4, Line , Col. 1)..82,437, ,437, write-ins for special surplus funds (surplus).

8 (16,959,408)..(24,238,970) treasury stock, at cost: shares common (value included in Line 29 $..0).. shares preferred (value included in Line 30 $..0).. (Total Lines 31 + 32 + 33 + 34 + 35 - 36) (including $..0 in Separate Accounts Statement)..134,552, ,198, of Lines 29, 30 and 37 (Page 4, Line 55)..137,352, ,998, of Lines 28 and 38 (Page 2, Line 28, Col. 3)..343,989, ,448,966 DETAILS OF Funds , , of remaining write-ins for Line 25 from overflow (Lines 2501 thru 2503 plus 2598) (Line 25 above)..211, , Allowance Modco ,074, of remaining write-ins for Line 31 from overflow (Lines 3101 thru 3103 plus 3198) (Line 31 above)..19,074, of remaining write-ins for Line 34 from overflow (Lines 3401 thru 3403 plus 3498) (Line 34 above).. Statement for the year 2012 of theContinental American Insurance Company4 SUMMARY OF OPERATIONS12 Current YearPrior Year and annuity considerations for life and accident and health contracts (Exhibit 1, Part 1, Line , Col.)

9 1, less Col. 11)..183,744, ,644,738 for supplementary contracts with life investment income (Exhibit of Net Investment Income, Line 17)..6,237, ,488, of Interest Maintenance Reserve (IMR) (Line 5)..78, (20,018) Accounts net gain from operations excluding unrealized gains or and expense allowances on reinsurance ceded (Exhibit 1, Part 2, Line , Col. 1)..79,885, adjustments on reinsurance ,473, Income: from fees associated with investment management, administration and contract guarantees from Separate and fees for deposit-type write-ins for miscellaneous ,446, ,176, (Lines 1 to )..285,866, ,290, ,750, ,893, endowments (excluding guaranteed annual pure endowments).. benefits (Exhibit 8, Part 2, Line , Cols. 4 + 8).. benefits and benefits under accident and health ,451, ,915, , guaranteed annual pure endowments and similar benefits and withdrawals for life , , and adjustments on contract or deposit-type contract , , on supplementary contracts with life in aggregate reserves for life and accident and health ,458, ,699, (Lines 10 to 19).

10 108,468, ,154, on premiums, annuity considerations and deposit-type contract funds (direct business only) (Exhibit 1, Part 2, Line 31, Col. 1)..115,789, ,658, and expense allowances on reinsurance assumed (Exhibit 1, Part 2, Line , Col. 1)..5,883, ,760, Insurance expenses (Exhibit 2, Line 10, Columns 1, 2, 3 and 4)..67,656, ,841, taxes, licenses and fees, excluding federal income taxes (Exhibit 3, Line 7, Cols. 1 + 2 + 3)..9,016, ,576, in loading on deferred and uncollected (14,452) transfers to or (from) Separate Accounts net of write-ins for , , (Lines 20 to 27)..307,022, ,080, gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)..(21,156,759)..(32,790,421) to gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30).