SIGNIFICANT TRANSACTIONS Great-West Life &amp; Annuity Insurance Company On January 23, 2019, the Company entered into a Master Transaction Agreement (the GWL&amp;A Master Transaction Agreement) with Great-West Life &amp; Annuity Insurance Company (GWL&amp;A), Great-West Life &amp; Annuity Insurance Company of New York (GWL&amp;A of NY), The Canada Life Assurance Company (CLAC) and The Great-West Life Assurance Company (GWL and, together with GWL&amp;A, GWL&amp;A of NY and CLAC, the Sellers), pursuant to which the Company will acquire via reinsurance (the Transaction) substantially all of the Sellers individual life insurance and annuity business (the GW Individual Life Business). On June 3, 2019, the Company and PLAIC completed the Transaction (the GWL&amp;A Closing). Pursuant to the GWL&amp;A Master Transaction Agreement, the Company and PLAIC entered into reinsurance agreements (the GWL&amp;A Reinsurance Agreements) and related ancillary documents at the GWL&amp;A Closing. On the terms and subject to the conditions of the GWL&amp;A Reinsurance Agreements, the Sellers ceded to the Company and PLAIC, effective as of the date of the GWL&amp;A Closing, substantially all of the insurance policies related to the Individual Life Business on a 100% indemnity basis net of reinsurance recoveries. The aggregate ceding commission for the reinsurance of the Individual Life Business paid at the GWL&amp;A Closing was $765.7 million. All policies issued in states other than New York were ceded to the Company under reinsurance agreements between the applicable Seller and the Company, and all policies issued in New York were ceded to PLAIC under a reinsurance agreement between GWL&amp;A of NY and PLAIC. In addition, there were certain pending items related to the Master Transaction Agreement, which remained subject to negotiation as of September 30, 2020. On October 30, 2020, the Company reached a final settlement on all of the remaining pending items. As the one year purchase price measurement period had concluded, the Company will recognize approximately $90 million in income before income tax during the quarter ended December 31, 2020 related to the final settlement. To support its obligations under the GWL&amp;A Reinsurance Agreements, the Company established trust accounts for the benefit of GWL&amp;A, CLAC and GWL, and PLAIC established a trust account for the benefit of GWL&amp;A of NY. The Sellers retained a block of participating policies, which are administered by the Company. The GWL&amp;A Master Transaction Agreement and other transaction documents contain certain customary representations and warranties made by each of the parties, and certain customary covenants regarding the Sellers and the Individual Life Business, and provide for indemnification, among other things, for breaches of those representations, warranties, and covenants. The terms of the GWL&amp;A Reinsurance Agreements resulted in an acquisition of the Individual Life Business by the Company in accordance with ASC Topic 805, Business Combinations . The following table details the final allocation of assets acquired and liabilities assumed from the Individual Life Business reinsurance transaction as of the date of the GWL&amp;A Closing: Fair Value as of June 1, 2019 (Dollars In Thousands) ASSETS Fixed maturities $ 8,697,966 Commercial mortgage loans 1,386,228 Policy loans 44,002 Other long-term investments 1,521,965 Total investments 11,650,161 Cash 34,835 Accrued investment income 101,452 Reinsurance receivables 62 Accounts and premiums receivable 1,642 Value of business acquired 535,421 Other intangibles 21,300 Other assets 5,525 Assets related to separate accounts 9,583,217 Total assets 21,933,615 LIABILITIES Future policy benefits and claims $ 11,022,177 Annuity account balances 220,064 Other policyholders funds 220,147 Other liabilities 75,367 Liabilities related to separate accounts 9,583,217 Total liabilities 21,120,972 NET ASSETS ACQUIRED $ 812,643 Assets related to separate accounts and liabilities related to separate accounts represent amounts receivable and payable for variable annuity and variable universal life products reinsured on a modified co-insurance basis. The following unaudited pro forma condensed consolidated results of operations assumes that the aforementioned transactions of the Individual Life Business were completed as of January 1, 2019. The unaudited pro forma condensed results of operations are presented solely for informational purposes and are not necessarily indicative of the consolidated condensed results of operations that might have been achieved had the transaction been completed as of the date indicated: Unaudited Unaudited For The Three Months Ended September 30, 2019 For The Nine Months Ended September 30, 2019 (Dollars In Thousands) Revenue $ 1,681,993 $ 4,868,168 Net income $ 190,424 $ 504,031