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Exhibit 5 - Results for the 20 Year Simulated Inforce Basis

Reserve

Cash Value Current Formulaic (CRVM) Principles-Based Best Estimates GPVAD Principles-Based Deterministic GPVAD Margin ratio *

$ $ $ $

27,239,681 30,278,404 25,793,173 28,702,635 16%

Principles-Based Stochastic GPVAD (95 CTE) Principles-Based Stochastic GPVAD (90 CTE) Principles-Based Stochastic GPVAD (85 CTE) Principles-Based Stochastic GPVAD (80 CTE) Principles-Based Stochastic GPVAD (75 CTE) Principles-Based Stochastic GPVAD (70 CTE) Principles-Based Stochastic GPVAD (65 CTE) Principles-Based Stochastic GPVAD (60 CTE) Principles-Based Stochastic GPVAD (55 CTE) Principles-Based Stochastic GPVAD (50 CTE)

$ $ $ $ $ $ $ $ $ $

29,682,207 29,300,164 29,124,369 29,006,007 28,919,128 28,854,007 28,798,524 28,751,803 28,707,756 28,667,350

* In accordance with guidance recently drafted for computation of the margin ratio by the LRWG, the denominator is based on a level of capital equal to statutory RBC at the company action level. For pricing purposes the company was assumed to actually hold capital of twice that level.

Distribution of scenario reserves 40

30 25 20 15 10 5

32

32

31

31

30

30

30

29

29

28

28

28

27

27

26

Number of scenarios

35

Reserve in $millions

10 Š Copyright 2006 American Academy of Actuaries. All rights reserved.

Report on principle-based reserving  

Stephen J. Strommen, F.S.A., M.A.A.A. Andrew E. Gordon, F.S.A., M.A.A.A. Life Reserves Work Group Modeling Team San Antonio, TX – December 2...

Report on principle-based reserving  

Stephen J. Strommen, F.S.A., M.A.A.A. Andrew E. Gordon, F.S.A., M.A.A.A. Life Reserves Work Group Modeling Team San Antonio, TX – December 2...

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