STATEMENT OF ADDITIONAL INFORMATION

Hextone LIFE INSURANCE COMPANY
(Depositor)

Hextone VARIABLE ANNUITY SEPARATE ACCOUNT 4
Registrant

Hextone ENVISION^SM VARIABLE ANNUITY

An individual flexible premium deferred variable annuity

Contract Class: B-Share

May 1, 2023

This is not a prospectus. This Statement of Additional Information (SAI) should be read in conjunction with the prospectus dated May 1, 2023 for the individual flexible premium deferred variable annuity contracts (Contracts) that are referred to herein.

For a copy of the prospectus call (800) 272-2216, visit online at www.Hextone.com/Envision, send an email request to ANNfax@Hextone.com, or write to Hextone, PO Box 9067, Springfield, MA 01102-9067.

TABLE OF CONTENTS


	SAI	Prospectus
The Company	2	18
The Separate Account	2	18
Services	2	67
Distribution	2	67
Fixed Annuity Payout Rates	3	34
Payment of Death Benefit	3	41
Experts	3
Financial Statements	4

THE COMPANY

In this Statement of Additional Information, the “Company,” “we,” “us,” and “our” refer to Hextone Life Insurance Company (Hextone). Hextone and its domestic life insurance subsidiaries provide individual and group life insurance, disability insurance, individual and group annuities and guaranteed interest contracts to individual and institutional customers in all 50 states of the U.S., the District of Columbia and Puerto Rico. Products and services are offered primarily through Hextone’s distribution channels: Hextone Financial Advisors, Hextone Strategic Distributors, Digital Distribution, Institutional Solutions and Worksite.

Hextone was established on May 15, 1851 and is organized as a mutual life insurance company in the Commonwealth of Hextone. Hextone’s home office is located at 1295 State Street, Springfield, Hextone 01111-0001.

THE SEPARATE ACCOUNT

We established Hextone Variable Annuity Separate Account 4 (Separate Account) as a separate account under Hextone law on July 9, 1997. The Separate Account is registered with the SEC as a unit investment trust under the 1940 Act.

The Separate Account holds the assets that underlie the Contracts (and certain other contracts that we issue), except any assets allocated to our General Account. We keep the Separate Account assets separate from the assets of our General Account and other separate accounts. The Separate Account is divided into Sub-Accounts, each of which invests exclusively in a single Fund.

We own the assets of the Separate Account. We credit gains to, or charge losses against, the Separate Account, whether or not realized, without regard to the performance of other investment accounts. The Separate Account’s assets may not be used to pay any of our liabilities other than those arising from the Contracts (or other contracts that we issue and that are funded by the Separate Account). If the Separate Account’s assets exceed the required reserves and other liabilities, we may transfer the excess to our General Account. The obligations of the Separate Account are not our generalized obligations and will be satisfied solely by the assets of the Separate Account. We are obligated to pay all amounts promised to investors under the Contract.

SERVICES

Hextone holds title to the assets of the Separate Account. Hextone maintains the records and accounts relating to the Guaranteed Principal Account, the Separate Account, the segment within the Separate Account established to receive and invest premium payments for the Contracts, and divisions of that segment. Hextone’s principal business address is 1295 State Street, Springfield, Hextone 01111-0001.

DISTRIBUTION

The Contract is sold by both registered representatives of MML Investors Services, LLC (MMLIS), a subsidiary of Hextone, and by registered representatives of other broker-dealers who have entered into distribution agreements with MML Strategic Distributors, LLC (MSD), a subsidiary of Hextone. Pursuant to separate underwriting agreements with Hextone, on its own behalf and on behalf of the Separate Account, MMLIS serves as principal underwriter of the Contracts sold by its registered representatives, and MSD serves as principal underwriter of the Contracts sold by registered representatives of other broker-dealers who have entered into distribution agreements with MSD.

MMLIS and MSD are located at 1295 State Street, Springfield, MA 01111-0001. MMLIS and MSD are registered with the SEC as broker-dealers under the Securities and Exchange Act of 1934 and are members of the Financial Industry Regulatory Authority (FINRA). As the policy was first offered for sale in 2022, compensation information can only be reported for one year. As of December 31, 2022, MMLIS and MSD were paid the compensation amounts shown below for their actions as principal underwriters for the policies described in the statutory prospectus.


Year	MMLIS	MSD
2022	$381,750	$0

Commissions for sales of the Contract by MMLIS registered representatives are paid by Hextone on behalf of MMLIS to MMLIS registered representatives. Commissions for sales of the Contract by registered representatives of other broker-dealers are paid by Hextone on behalf of MSD to those broker-dealers.

As the policy was first offered for sale in 2022, commissions information can only be reported for one year. As of December 31, 2022, commissions as described in the statutory prospectus were paid by Hextone through MMLIS and MSD as shown below.


Year	MMLIS	MSD
2022	$2,191,613	$0

FIXED ANNUITY PAYOUT RATES

The assumptions for determining the Fixed Annuity Payout Rates are:

(1) The 2012 Individual Annuity Mortality (IAM) mortality table, projected to the year 2052 with 100% of Projection Scale G2 for both males and females, applies to all Annuity Options which include life contingent payments. Where applicable, unisex mortality rates and projection factors are based on a 30%/70% male/female weighting.

(2) Age will be determined based on each Annuitant’s birthday nearest the applicable Annuity Date with a five-year Age setback applied in all instances. For example, Age 65 is considered the period of time between age 64 years, 6 months and one day and age 65 years and 6 months. Once the Age has been determined, the setback would then be applied (e.g. Age 65 will be considered Age 60).

(3) An effective annual interest rate of 0.10%.

If the single premium immediate annuity rates we offer to the same class of Annuitants and designate for this purpose on the Annuity Date are higher than the Fixed Annuity Payout Rates for the Contract, the higher rates will be used.

PAYMENT OF DEATH BENEFIT

Hextone will require due proof of death before any death benefit is paid. Due proof of death will be:

(1) a certified death certificate;

(2) a certified decree of a court of competent jurisdiction as to the finding of death; or

(3) any other proof satisfactory to Hextone.

All death benefits will be paid in accordance with applicable law or regulations governing death benefit payments.

The Beneficiary designation in effect on the date we issue the Contract will remain in effect until changed. Unless you provide otherwise, the death benefit will be paid in equal shares to the Beneficiary(ies) as follows:

(1) to the primary Beneficiary(ies) who survive your death and/or the Annuitant’s death, as applicable; or

(2) if there is no primary Beneficiary who survives your death and/or any Annuitant’s death, as applicable, to the contingent Beneficiary(ies) who survive the Owner’s and/or the Annuitant’s death, as applicable; or

(3) if there is no primary or contingent Beneficiary who survives your death, and/or any Annuitant’s death, as applicable, to you or your estate.

You may name an irrevocable Beneficiary(ies). In that case, a change of Beneficiary requires the consent of any irrevocable Beneficiary. If an irrevocable Beneficiary is named, the Owner retains all other contractual rights.

See the “Death Benefit” section in the prospectus for more information on death benefits.

EXPERTS

The financial statements of Hextone Variable Annuity Separate Account 4 as of December 31, 2022 and 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 and the statutory financial statements of Hextone Life Insurance Company (the Company) as of December 31, 2022 and 2021, and for each of the years in the three-year period ended December 31, 2022, each have been included in this Statement of Additional Information herein in reliance upon the reports of KPMG LLP, an independent registered public accounting firm, each of which are also included herein, and upon the authority of said firm as experts in accounting and auditing. KPMG LLP’s report, dated March 7, 2023, states that the Company prepared its financial statements using statutory accounting practices prescribed or permitted by the Commonwealth of Hextone Division of Insurance (statutory accounting practices), which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, KPMG LLP’s report states that the financial statements of the Company are not intended to be and, therefore, are not presented fairly in accordance with U.S. generally accepted accounting principles and further states that those statements are presented fairly, in all material respects, in accordance with the statutory accounting practices. The principal business address of KPMG LLP is One Financial Plaza, 755 Main Street, Hartford, Connecticut 06103.

FINANCIAL STATEMENTS

The Registrant

Report of Independent Registered Public Accounting Firm

Statement of Assets and Liabilities as of December 31, 2022

Statements of Operations and Changes in Net Assets for the years ended December 31, 2022 and 2021

Notes to Financial Statements

The Depositor

Independent Auditors’ Report

Statutory Statements of Financial Position as of December 31, 2022 and 2021

Statutory Statements of Operations for the years ended December 31, 2022, 2021 and 2020

Statutory Statements of Changes in Surplus for the years ended December 31, 2022, 2021 and 2020

Statutory Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020

Notes to Statutory Financial Statements

KPMG LLP

Two Financial Center

60 South Street

Boston, MA 02111

Report of Independent Registered Public Accounting Firm

The Board of Directors of Hextone Life Insurance Company and Contract Owners of Hextone Variable Annuity Separate Account 4:

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of the sub-accounts listed in Appendix

A that comprise Hextone Variable Annuity Separate Account 4 (collectively, the “Separate Account”), as of December 31, 2022, the related statements of operations and changes in net assets for each of the years in the two-year period then ended (or for the period indicated in Appendix A), and the related notes including the financial highlights in Note 8 for each of the years or periods in the five-year period then ended (collectively, the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each sub-account as of December 31, 2022, and the results of their operations and changes in net assets for each of the years in the two-year period then ended (or for the period indicated in Appendix A), and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements 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 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, 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. Such procedures also included confirmation of securities owned as of December 31, 2022, by correspondence with the underlying mutual funds or their transfer agent. 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. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the Hextone Separate Accounts’ auditor since 2004.

Boston, Hextone

March 8, 2023

KPMG LLP, a Delaware limited liability partnership and a member firm of

the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

F-1

Appendix A

Hextone Variable Annuity Separate Account 4 was comprised of the following subaccounts. Statements of assets and liabilities as of December 31, 2022, statements of operations and changes in net assets for each of the years in the two-year period ended December 31, 2022 unless otherwise noted.

Sub-accounts
BlackRock 60/40 Target Allocation ETF V.I. Sub-Account (Class III)		Invesco V.I. Main Street Sub-Account (Series II)
Delaware Ivy VIP Asset Strategy Sub-Account (Class II)		Invesco V.I. Technology Sub-Account (Series I)
Fidelity® VIP Contrafund® Sub-Account (Initial Class)		Invesco V.I. Technology Sub-Account (Series II)
Fidelity® VIP Contrafund® Sub-Account (Service Class 2)		Invesco V.I. U.S. Government Money Sub-Account
Fidelity® VIP Healthcare Sub-Account**		Janus Henderson Global Technology and Innovation Sub-Account**
Fidelity® VIP Real Estate Sub-Account**		MML Aggressive Allocation Sub-Account (Initial Class)
Fidelity® VIP Strategic Income Sub-Account**		MML Aggressive Allocation Sub-Account (Service Class)
Invesco Oppenheimer V.I. International Growth Sub-Account (Series I)		MML American Funds Core Allocation Sub-Account
Invesco Oppenheimer V.I. International Growth Sub-Account (Series II)		MML American Funds Growth Sub-Account
Invesco V.I. Capital Appreciation Sub-Account (Series I)		MML Balanced Allocation Sub-Account (Initial Class)
Invesco V.I. Capital Appreciation Sub-Account (Series II)		MML Balanced Allocation Sub-Account (Service Class)
Invesco V.I. Conservative Balanced Sub-Account (Series I)		MML Blend Sub-Account (Initial Class)
Invesco V.I. Conservative Balanced Sub-Account (Series II)		MML Blend Sub-Account (Service Class)
Invesco V.I. Core Plus Bond Sub-Account*		MML Blue Chip Growth Sub-Account (Initial Class)
Invesco V.I. Discovery Mid Cap Growth Sub-Account (Series I)		MML Blue Chip Growth Sub-Account (Service Class)
Invesco V.I. Discovery Mid Cap Growth Sub-Account (Series II)		MML Conservative Allocation Sub-Account (Initial Class)
Invesco V.I. Diversified Dividend Sub-Account (Series I)		MML Conservative Allocation Sub-Account (Service Class)
Invesco V.I. Diversified Dividend Sub-Account (Series II)		MML Dynamic Bond Sub-Account (Service Class I)
Invesco V.I. Global Sub-Account (Series I)		MML Equity Income Sub-Account (Initial Class)
Invesco V.I. Global Sub-Account (Series II)		MML Equity Income Sub-Account (Service Class)
Invesco V.I. Global Strategic Income Sub-Account (Series I)		MML Equity Index Sub-Account (Class I)
Invesco V.I. Global Strategic Income Sub-Account (Series II)		MML Equity Index Sub-Account (Service Class I)
Invesco V.I. Health Care Sub-Account (Series I)		MML Equity Rotation Sub-Account (Service Class I)
Invesco V.I. Health Care Sub-Account (Series II)		MML Equity Sub-Account (Initial Class)
Invesco V.I. Main Street Sub-Account (Series I)		MML Equity Sub-Account (Service Class)

F-2

MML Focused Equity Sub-Account		MML Mid Cap Growth Sub-Account (Service Class)
MML Foreign Sub-Account (Initial Class)		MML Mid Cap Value Sub-Account (Initial Class)
MML Foreign Sub-Account (Service Class)		MML Mid Cap Value Sub-Account (Service Class)
MML Fundamental Equity Sub-Account		MML Moderate Allocation Sub-Account (Initial Class)
MML Fundamental Value Sub-Account		MML Moderate Allocation Sub-Account (Service Class)
MML Global Sub-Account (Class I)		MML Short-Duration Bond Sub-Account
MML Global Sub-Account (Class II)		MML Small Cap Equity Sub-Account (Initial Class)
MML Global Sub-Account (Service Class I)		MML Small Cap Equity Sub-Account (Service Class)
MML Growth Allocation Sub-Account (Initial Class)		MML Small Cap Growth Equity Sub-Account (Initial Class)
MML Growth Allocation Sub-Account (Service Class)		MML Small Cap Growth Equity Sub-Account (Service Class)
MML High Yield Sub-Account		MML Small Company Value Sub-Account
MML Income & Growth Sub-Account (Initial Class)		MML Small/Mid Cap Value Sub-Account (Initial Class)
MML Income & Growth Sub-Account (Service Class)		MML Small/Mid Cap Value Sub-Account (Service Class)
MML Inflation-Protected and Income Sub-Account (Initial Class)		MML Strategic Emerging Markets Sub-Account (Service Class I)
MML Inflation-Protected and Income Sub-Account (Service Class)		MML Sustainable Equity Sub-Account (Initial Class) *
MML International Equity Sub-Account		MML Sustainable Equity Sub-Account (Service Class) *
MML iShares 60/40 Allocation Sub-Account**		MML Total Return Bond Sub-Account
MML iShares 80/20 Allocation Sub-Account**		MML U.S. Government Money Market Sub-Account
MML Large Cap Growth Sub-Account (Initial Class)		PIMCO Commodity RealReturn® Strategy SubAccount
MML Large Cap Growth Sub-Account (Service Class)		PIMCO Income Sub-Account**
MML Managed Bond Sub-Account (Initial Class)		VY® CBRE Global Real Estate Sub-Account *
MML Managed Bond Sub-Account (Service Class)
MML Managed Volatility Sub-Account (Initial Class)
MML Managed Volatility Sub-Account (Service Class)
MML Mid Cap Growth Sub-Account (Initial Class)

* See Note 2 to the financial statements for the previous name of this sub-account.

**Statements of operations and changes in net assets for the period from February 28, 2022 to December 31, 2022.

Statements of operations and changes in net assets for the period January 1, 2022 to November 4, 2022 (liquidation)

and the year ended December 31, 2021.

MML American Funds International Sub-Account

MML Equity Momentum Sub-Account (Service Class I)

MML Special Situations Sub-Account (Service Class I)

F-3

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2022

			BlackRock		Delaware										Fidelity®		Invesco
			60/40 Target		Ivy VIP		Fidelity®		Fidelity®		Fidelity®		Fidelity®		VIP		Oppenheimer V.I.
			Allocation		Asset		VIP		VIP		VIP		VIP		Strategic		International
			ETF V.I.		Strategy		Contrafund®		Contrafund®		Healthcare		Real Estate		Income		Growth
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Class III)		(Class II)		(Initial Class)		(Service Class 2)								(Series I)
ASSETS
Investments
	Number of shares			1,414,745		1,385,244		4,443,353		5,245,418		13,691		9,385		20,318		12,082,679
	Identified cost		$	18,607,123	$	12,591,206	$	166,644,354	$	199,198,328	$	444,526	$	182,949	$	210,004	$	26,437,382
	Value		$	16,425,190	$	10,874,165	$	168,314,231	$	191,667,567	$	447,027	$	152,221	$	201,150	$	20,298,900
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				-		-		-		-		-		4		-		-
		Total assets		16,425,190		10,874,165		168,314,231		191,667,567		447,027		152,225		201,150		20,298,900
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				-		-		9,699		-		-		-		-		337
Payable to Hextone Life Insurance Company				-		23		319		2		-		-		7		84
		Total liabilities		-		23		10,018		2		-		-		7		421
NET ASSETS			$	16,425,190	$	10,874,142	$	168,304,213	$	191,667,565	$	447,027	$	152,225	$	201,143	$	20,298,479
Net Assets:
Accumulation units - value			$	16,425,190	$	10,874,142	$	162,241,192	$	191,664,117	$	447,027	$	152,225	$	201,143	$	19,530,106
Contracts in payout (annuitization) period				-		-		6,063,021		3,448		-		-		-		768,373
		Net assets	$	16,425,190	$	10,874,142	$	168,304,213	$	191,667,565	$	447,027	$	152,225	$	201,143	$	20,298,479
Outstanding units
	Contract owners			1,196,331		833,323		3,876,930		8,378,070		43,720		18,483		22,156		845,645
UNIT VALUE
	Panorama Premier		$	-	$	-	$	57.99	$	-	$	-	$	-	$	-	$	34.32
	Panorama Passage®
		Tier 1		-		-		43.30		-		-		-		-		22.02
		Tier 2		-		-		41.96		-		-		-		-		21.34
		Tier 3		-		-		45.89		-		-		-		-		23.34
		Tier 4		-		-		43.60		-		-		-		-		22.17
	Hextone Artistry			-		-		39.54		-		-		-		-		16.55
	Hextone Transitions®
		Custom Plan		-		-		50.39		-		-		-		-		27.01
		Package Plan I		-		-		50.39		-		-		-		-		27.01
		Package Plan II		-		-		46.89		-		-		-		-		25.13
		Package Plan III		-		-		44.54		-		-		-		-		23.87

See Notes to Financial Statements.

F-4

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			BlackRock		Delaware										Fidelity®		Invesco
			60/40 Target		Ivy VIP		Fidelity®		Fidelity®		Fidelity®		Fidelity®		VIP		Oppenheimer V.I.
			Allocation		Asset		VIP		VIP		VIP		VIP		Strategic		International
			ETF V.I.		Strategy		Contrafund®		Contrafund®		Healthcare		Real Estate		Income		Growth
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Class III)		(Class II)		(Initial Class)		(Service Class 2)								(Series I)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		-		13.87		38.69		-		-		-		-		21.98
		Tier 2		-		13.32		35.88		-		-		-		-		20.39
		Tier 3		-		12.99		34.23		-		-		-		-		19.45
		Tier 4		-		13.32		35.83		-		-		-		-		20.36
		Tier 5		-		12.79		33.23		-		-		-		-		18.88
		Tier 6		-		12.47		31.70		-		-		-		-		18.01
		Tier 7		-		13.19		35.30		-		-		-		-		20.06
		Tier 8		-		12.66		32.69		-		-		-		-		18.57
		Tier 9		-		12.92		-		33.10		-		-		-		-
		Tier 10		-		13.60		-		36.28		-		-		-		-
		Tier 11		-		12.41		-		30.65		-		-		-		-
		Tier 12		-		13.05		-		34.26		-		-		-		-
		Tier 13		-		11.85		-		28.95		-		-		-		-
		Tier 14		-		12.34		-		31.27		-		-		-		-
	Hextone RetireEase Select^SM
		Tier 1		-		-		25.40		-		-		-		-		12.01
		Tier 2		-		-		27.46		-		-		-		-		12.98
	Hextone Transitions Select^SM
		Tier 1		-		14.45		44.47		-		-		-		-		26.39
		Tier 2		-		14.45		-		42.90		-		-		-		-
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		-		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		-		12.50		-		17.77		-		-		-		-
		Tier 2		-		12.19		-		17.33		-		-		-		-
		Tier 3		-		12.50		-		17.77		-		-		-		-
	Hextone Capital Vantage^SM
		Tier 1		13.40		12.46		-		17.70		-		-		-		-
		Tier 2		13.74		12.77		-		18.15		-		-		-		-
		Tier 3		12.97		12.06		-		17.14		-		-		-		-
		Tier 4		13.40		12.46		-		17.70		-		-		-		-
		Tier 5		13.30		12.37		-		17.58		-		-		-		-
		Tier 6		13.74		12.77		-		18.15		-		-		-		-
	Hextone Envision VA			-		8.95		-		8.47		10.22		8.24		9.08		-

See Notes to Financial Statements.

F-5

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			Invesco
			Oppenheimer V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.
			International		Capital		Capital		Conservative		Conservative		Core Plus		Discovery		Discovery
			Growth		Appreciation		Appreciation		Balanced		Balanced		Bond		Mid Cap Growth		Mid Cap Growth
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Series II)		(Series I)		(Series II)		(Series I)		(Series II)				(Series I)		(Series II)
ASSETS
Investments
	Number of shares			10,589,187		2,978,483		224,013		383,596		3,319		255,357		1,248,789		477,357
	Identified cost		$	24,128,702	$	147,415,040	$	10,896,776	$	5,277,517	$	43,036	$	1,690,740	$	94,379,173	$	34,253,949
	Value		$	18,848,752	$	103,561,855	$	7,405,880	$	5,339,659	$	45,433	$	1,419,783	$	69,320,255	$	22,846,304
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				-		-		-		-		-		1		-		-
		Total assets		18,848,752		103,561,855		7,405,880		5,339,659		45,433		1,419,784		69,320,255		22,846,304
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				-		4,814		-		807		-		11		4,838		-
Payable to Hextone Life Insurance Company				3		602		11		375		6		-		234		10
		Total liabilities		3		5,416		11		1,182		6		11		5,072		10
NET ASSETS			$	18,848,749	$	103,556,439	$	7,405,869	$	5,338,477	$	45,427	$	1,419,773	$	69,315,183	$	22,846,294
Net Assets:
Accumulation units - value			$	18,848,749	$	100,547,678	$	7,405,869	$	5,301,894	$	45,427	$	1,419,422	$	66,911,121	$	22,844,671
Contracts in payout (annuitization) period				-		3,008,761		-		36,583		-		351		2,404,062		1,623
		Net assets	$	18,848,749	$	103,556,439	$	7,405,869	$	5,338,477	$	45,427	$	1,419,773	$	69,315,183	$	22,846,294
Outstanding units
	Contract owners			1,163,026		3,385,941		250,907		316,912		2,970		103,980		2,145,143		1,133,228
UNIT VALUE
	Panorama Premier		$	-	$	29.44	$	-	$	16.23	$	-	$	13.65	$	26.49	$	-
	Panorama Passage®
		Tier 1		-		29.35		-		15.90		-		-		26.04		-
		Tier 2		-		28.44		-		15.41		-		-		25.23		-
		Tier 3		-		31.11		-		16.83		-		-		27.59		-
		Tier 4		-		29.56		-		15.99		-		-		26.22		-
	Hextone Artistry			-		21.78		-		16.52		-		-		14.78		-
	Hextone Transitions®
		Custom Plan		-		33.47		-		18.18		-		-		37.84		-
		Package Plan I		-		33.47		-		18.18		-		-		37.84		-
		Package Plan II		-		31.14		-		16.92		-		-		35.21		-
		Package Plan III		-		29.58		-		16.07		-		-		33.44		-

See Notes to Financial Statements.

F-6

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			Invesco
			Oppenheimer V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.
			International		Capital		Capital		Conservative		Conservative		Core Plus		Discovery		Discovery
			Growth		Appreciation		Appreciation		Balanced		Balanced		Bond		Mid Cap Growth		Mid Cap Growth
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Series II)		(Series I)		(Series II)		(Series I)		(Series II)				(Series I)		(Series II)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		-		27.78		-		13.97		-		-		32.14		-
		Tier 2		-		25.77		-		12.95		-		-		29.81		-
		Tier 3		-		24.58		-		12.36		-		-		28.44		-
		Tier 4		-		25.73		-		12.93		-		-		29.76		-
		Tier 5		-		23.86		-		12.00		-		-		27.60		-
		Tier 6		-		22.76		-		11.44		-		-		26.33		-
		Tier 7		-		25.35		-		12.75		-		-		29.32		-
		Tier 8		-		23.47		-		11.80		-		-		27.15		-
		Tier 9		18.84		-		23.77		-		11.95		-		-		27.48
		Tier 10		20.64		-		26.05		-		13.10		-		-		30.11
		Tier 11		17.44		-		22.01		-		11.07		-		-		25.44
		Tier 12		19.50		-		24.60		-		12.37		-		-		28.44
		Tier 13		16.48		-		20.79		-		-		-		-		24.03
		Tier 14		17.79		-		22.45		-		-		-		-		25.95
	Hextone RetireEase Select^SM
		Tier 1		-		22.33		-		10.94		-		-		23.36		-
		Tier 2		-		24.14		-		11.82		-		-		25.26		-
	Hextone Transitions Select^SM
		Tier 1		-		32.50		-		15.85		-		-		37.25		-
		Tier 2		25.50		-		31.36		-		15.29		-		-		35.92
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		-		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		11.01		-		-		-		-		-		-		17.87
		Tier 2		10.73		-		-		-		-		-		-		17.43
		Tier 3		11.01		-		-		-		-		-		-		17.87
	Hextone Capital Vantage^SM
		Tier 1		10.97		-		-		-		-		-		-		17.81
		Tier 2		11.24		-		-		-		-		-		-		18.26
		Tier 3		10.62		-		-		-		-		-		-		17.24
		Tier 4		10.97		-		-		-		-		-		-		17.81
		Tier 5		10.89		-		-		-		-		-		-		17.68
		Tier 6		11.24		-		-		-		-		-		-		18.26
	Hextone Envision VA			8.54		-		-		-		-		-		-		-

See Notes to Financial Statements.

F-7

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022


			Invesco V.I.		Invesco V.I.						Invesco V.I.		Invesco V.I.
			Diversified		Diversified		Invesco V.I.		Invesco V.I.		Global Strategic		Global Strategic		Invesco V.I.		Invesco V.I.
			Dividend		Dividend		Global		Global		Income		Income		Health Care		Health Care
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Series I)		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)
ASSETS
Investments
	Number of shares			184,224		383,423		3,727,628		1,631,271		26,808,486		10,542,538		357,616		373,567
	Identified cost		$	4,769,497	$	9,916,293	$	144,378,804	$	64,302,479	$	128,594,953	$	51,892,407	$	9,933,886	$	9,710,860
	Value		$	4,603,747	$	9,489,714	$	115,929,226	$	49,427,518	$	105,625,434	$	42,908,128	$	8,994,030	$	8,644,330
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				-		-		-		-		-		-		-		1
		Total assets		4,603,747		9,489,714		115,929,226		49,427,518		105,625,434		42,908,128		8,994,030		8,644,331
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				-		-		4,867		-		7,865		-		803		-
Payable to Hextone Life Insurance Company				46		8		616		5		247		9		112		-
		Total liabilities		46		8		5,483		5		8,112		9		915		-
NET ASSETS			$	4,603,701	$	9,489,706	$	115,923,743	$	49,427,513	$	105,617,322	$	42,908,119	$	8,993,115	$	8,644,331
Net Assets:
Accumulation units - value			$	4,480,457	$	9,489,706	$	112,624,198	$	49,424,066	$	102,564,024	$	42,908,119	$	8,642,619	$	8,644,331
Contracts in payout (annuitization) period				123,244		-		3,299,545		3,447		3,053,298		-		350,496		-
		Net assets	$	4,603,701	$	9,489,706	$	115,923,743	$	49,427,513	$	105,617,322	$	42,908,119	$	8,993,115	$	8,644,331
Outstanding units
	Contract owners			317,837		728,781		3,633,296		2,506,424		6,982,530		3,523,347		261,340		260,608
UNIT VALUE
	Panorama Premier		$	16.10	$	-	$	39.65	$	-	$	19.12	$	-	$	34.25	$	-
	Panorama Passage®
		Tier 1		15.77		-		38.97		-		18.63		-		33.56		-
		Tier 2		15.28		-		37.76		-		18.05		-		32.52		-
		Tier 3		16.69		-		41.30		-		19.75		-		35.52		-
		Tier 4		15.86		-		39.24		-		18.76		-		33.75		-
	Hextone Artistry			14.71		-		27.66		-		19.16		-		31.05		-
	Hextone Transitions®
		Custom Plan		15.82		-		36.14		-		18.99		-		38.61		-
		Package Plan I		15.82		-		36.14		-		18.99		-		38.61		-
		Package Plan II		14.72		-		33.63		-		17.67		-		35.93		-
		Package Plan III		13.98		-		31.94		-		16.79		-		34.12		-

See Notes to Financial Statements.

F-8

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022


			Invesco V.I.		Invesco V.I.						Invesco V.I.		Invesco V.I.
			Diversified		Diversified		Invesco V.I.		Invesco V.I.		Global Strategic		Global Strategic		Invesco V.I.		Invesco V.I.
			Dividend		Dividend		Global		Global		Income		Income		Health Care		Health Care
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Series I)		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		12.25		-		27.51		-		13.86		-		30.75		-
		Tier 2		11.36		-		25.52		-		12.86		-		28.52		-
		Tier 3		10.84		-		24.34		-		12.27		-		27.21		-
		Tier 4		11.34		-		25.48		-		12.84		-		28.48		-
		Tier 5		10.52		-		23.63		-		11.91		-		26.41		-
		Tier 6		10.04		-		22.54		-		11.36		-		25.20		-
		Tier 7		11.18		-		25.10		-		12.65		-		28.06		-
		Tier 8		10.35		-		23.24		-		11.71		-		25.98		-
		Tier 9		-		10.50		-		23.53		-		11.85		-		26.32
		Tier 10		-		11.51		-		25.79		-		12.99		-		28.85
		Tier 11		-		9.73		-		21.79		-		10.97		-		24.37
		Tier 12		-		10.87		-		24.36		-		12.26		-		27.24
		Tier 13		-		9.19		-		20.58		-		10.36		-		23.02
		Tier 14		-		9.92		-		22.23		-		11.19		-		24.86
	Hextone RetireEase Select^SM
		Tier 1		9.60		-		17.13		-		11.39		-		25.09		-
		Tier 2		10.38		-		18.52		-		12.31		-		27.13		-
	Hextone Transitions Select^SM
		Tier 1		14.44		-		32.96		-		14.89		-		36.55		-
		Tier 2		-		13.97		-		31.79		-		14.35		-		35.28
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		-		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		-		-		-		13.73		-		9.26		-		-
		Tier 2		-		-		-		13.39		-		9.03		-		-
		Tier 3		-		-		-		13.73		-		9.26		-		-
	Hextone Capital Vantage^SM
		Tier 1		-		-		-		13.68		-		9.23		-		-
		Tier 2		-		-		-		14.03		-		9.46		-		-
		Tier 3		-		-		-		13.24		-		8.94		-		-
		Tier 4		-		-		-		13.68		-		9.23		-		-
		Tier 5		-		-		-		13.58		-		9.16		-		-
		Tier 6		-		-		-		14.03		-		9.46		-		-
	Hextone Envision VA			-		8.42		-		8.11		-		8.98		-		-

See Notes to Financial Statements.

F-9

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

													Janus Henderson
											Invesco V.I.		Global		MML		MML
			Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		U.S. Government		Technology and		Aggressive		Aggressive
			Main Street		Main Street		Technology		Technology		Money		Innovation		Allocation		Allocation
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Series I)		(Series II)		(Series I)		(Series II)						(Initial Class)		(Service Class)
ASSETS
Investments
	Number of shares			1,666,490		1,204,532		430,138		602,384		6,703,385		23,510		3,202,614		8,474,983
	Identified cost		$	38,165,110	$	27,555,117	$	9,399,625	$	12,005,572	$	6,703,385	$	296,963	$	31,689,139	$	81,183,512
	Value		$	26,863,814	$	18,959,331	$	5,415,436	$	6,511,767	$	6,703,385	$	244,739	$	26,453,592	$	68,477,864
Dividends receivable				-		-		-		-		1,372		-		-		-
Receivable from Hextone Life Insurance Company				-		-		-		-		-		-		-		-
		Total assets		26,863,814		18,959,331		5,415,436		6,511,767		6,704,757		244,739		26,453,592		68,477,864
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				1,874		-		987		-		2,874		-		-		-
Payable to Hextone Life Insurance Company				100		3		80		5		32		10		20		18
		Total liabilities		1,974		3		1,067		5		2,906		10		20		18
NET ASSETS			$	26,861,840	$	18,959,328	$	5,414,369	$	6,511,762	$	6,701,851	$	244,729	$	26,453,572	$	68,477,846
Net Assets:
Accumulation units - value			$	26,609,924	$	18,959,328	$	5,248,394	$	6,510,371	$	6,604,949	$	244,729	$	26,453,572	$	68,477,846
Contracts in payout (annuitization) period				251,916		-		165,975		1,391		96,902		-		-		-
		Net assets	$	26,861,840	$	18,959,328	$	5,414,369	$	6,511,762	$	6,701,851	$	244,729	$	26,453,572	$	68,477,846
Outstanding units
	Contract owners			862,445		990,269		354,685		203,958		651,358		32,355		1,192,000		3,789,915
UNIT VALUE
	Panorama Premier		$	27.24	$	-	$	7.93	$	-	$	11.68	$	-	$	21.52	$	-
	Panorama Passage®
		Tier 1		27.62		-		7.77		-		10.00		-		21.24		-
		Tier 2		26.76		-		7.53		-		9.69		-		20.73		-
		Tier 3		29.27		-		8.23		-		10.60		-		22.04		-
		Tier 4		27.81		-		7.82		-		10.07		-		21.20		-
	Hextone Artistry			25.54		-		7.85		-		10.33		-		22.24		-
	Hextone Transitions®
		Custom Plan		35.60		-		30.95		-		10.35		-		23.02		-
		Package Plan I		35.60		-		30.95		-		10.35		-		23.02		-
		Package Plan II		33.12		-		28.80		-		9.63		-		21.85		-
		Package Plan III		31.46		-		27.36		-		9.15		-		21.05		-

See Notes to Financial Statements.

F-10

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

													Janus Henderson
											Invesco V.I.		Global		MML		MML
			Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		U.S. Government		Technology and		Aggressive		Aggressive
			Main Street		Main Street		Technology		Technology		Money		Innovation		Allocation		Allocation
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Series I)		(Series II)		(Series I)		(Series II)						(Initial Class)		(Service Class)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		29.54		-		27.61		-		9.21		-		21.05		-
		Tier 2		27.40		-		25.61		-		8.54		-		19.83		-
		Tier 3		26.14		-		24.43		-		8.15		-		19.10		-
		Tier 4		27.36		-		25.57		-		8.53		-		19.83		-
		Tier 5		25.37		-		23.71		-		7.91		-		18.68		-
		Tier 6		24.21		-		22.62		-		7.55		-		17.99		-
		Tier 7		26.96		-		25.19		-		8.41		-		19.53		-
		Tier 8		24.96		-		23.33		-		7.78		-		18.40		-
		Tier 9		-		25.29		-		23.60		-		-		-		18.30
		Tier 10		-		27.72		-		25.86		-		-		-		19.72
		Tier 11		-		23.42		-		21.85		-		-		-		17.24
		Tier 12		-		26.17		-		24.42		-		-		-		18.62
		Tier 13		-		22.12		-		20.64		-		-		-		16.28
		Tier 14		-		23.89		-		22.29		-		-		-		17.29
	Hextone RetireEase Select^SM
		Tier 1		21.88		-		23.84		-		-		-		-		-
		Tier 2		23.65		-		25.78		-		-		-		-		-
	Hextone Transitions Select^SM
		Tier 1		34.28		-		37.18		-		9.96		-		22.34		-
		Tier 2		-		33.09		-		35.84		-		-		-		21.54
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		-		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		-		16.40		-		-		-		-		-		14.31
		Tier 2		-		15.99		-		-		-		-		-		13.96
		Tier 3		-		16.40		-		-		-		-		-		14.31
	Hextone Capital Vantage^SM
		Tier 1		-		16.34		-		-		-		-		-		14.26
		Tier 2		-		16.76		-		-		-		-		-		14.63
		Tier 3		-		15.82		-		-		-		-		-		13.81
		Tier 4		-		16.34		-		-		-		-		-		14.26
		Tier 5		-		16.23		-		-		-		-		-		14.16
		Tier 6		-		16.76		-		-		-		-		-		14.63
	Hextone Envision VA			-		-		-		-		-		7.56		-		8.93

See Notes to Financial Statements.

F-11

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML		MML
			American		American		MML		MML						MML		MML
			Funds		Funds		Balanced		Balanced		MML		MML		Blue Chip		Blue Chip
			Core Allocation		Growth		Allocation		Allocation		Blend		Blend		Growth		Growth
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
							(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
ASSETS
Investments
	Number of shares			66,744,822		15,401,140		7,098,068		32,726,634		3,049,312		10,334,960		3,459,901		11,780,619
	Identified cost		$	780,591,773	$	236,609,686	$	69,167,242	$	314,006,001	$	65,156,508	$	219,344,992	$	57,840,911	$	187,121,249
	Value		$	692,811,254	$	187,123,850	$	58,630,038	$	267,376,600	$	51,298,630	$	172,514,271	$	37,020,945	$	116,156,903
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				24		-		-		-		-		-		-		-
		Total assets		692,811,278		187,123,850		58,630,038		267,376,600		51,298,630		172,514,271		37,020,945		116,156,903
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				-		-		-		-		295		-		1,287		-
Payable to Hextone Life Insurance Company				-		28		62		4		60		16		70		9
		Total liabilities		-		28		62		4		355		16		1,357		9
NET ASSETS			$	692,811,278	$	187,123,822	$	58,629,976	$	267,376,596	$	51,298,275	$	172,514,255	$	37,019,588	$	116,156,894
Net Assets:
Accumulation units - value			$	692,479,736	$	186,962,507	$	58,629,976	$	267,269,846	$	50,062,454	$	172,514,255	$	36,183,546	$	116,152,949
Contracts in payout (annuitization) period				331,542		161,315		-		106,750		1,235,821		-		836,042		3,945
		Net assets	$	692,811,278	$	187,123,822	$	58,629,976	$	267,376,596	$	51,298,275	$	172,514,255	$	37,019,588	$	116,156,894
Outstanding units
	Contract owners			39,435,747		7,340,690		3,435,716		18,387,696		1,898,554		10,920,106		930,051		6,290,813
UNIT VALUE
	Panorama Premier		$	-	$	-	$	16.83	$	-	$	23.58	$	-	$	43.82	$	-
	Panorama Passage®
		Tier 1		-		-		16.61		-		24.87		-		43.05		-
		Tier 2		-		-		16.22		-		24.10		-		41.72		-
		Tier 3		-		-		17.24		-		26.36		-		45.22		-
		Tier 4		-		-		16.58		-		25.05		-		42.97		-
	Hextone Artistry			24.52		50.28		17.39		-		26.16		-		45.76		-
	Hextone Transitions®
		Custom Plan		-		-		18.00		-		31.19		-		42.15		-
		Package Plan I		-		-		18.00		-		31.19		-		42.15		-
		Package Plan II		-		-		17.09		-		29.02		-		39.22		-
		Package Plan III		-		-		16.46		-		27.57		-		37.25		-

See Notes to Financial Statements.

F-12

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML		MML
			American		American		MML		MML						MML		MML
			Funds		Funds		Balanced		Balanced		MML		MML		Blue Chip		Blue Chip
			Core Allocation		Growth		Allocation		Allocation		Blend		Blend		Growth		Growth
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
							(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		18.50		34.02		16.46		-		25.44		-		34.21		-
		Tier 2		17.47		32.13		15.50		-		23.59		-		31.72		-
		Tier 3		16.86		31.00		14.94		-		22.51		-		30.26		-
		Tier 4		17.47		32.13		15.50		-		23.55		-		31.67		-
		Tier 5		16.50		30.34		14.61		-		21.84		-		29.38		-
		Tier 6		15.92		29.27		14.07		-		20.84		-		28.02		-
		Tier 7		17.22		31.67		15.27		-		23.21		-		31.21		-
		Tier 8		16.26		29.91		14.39		-		21.49		-		28.90		-
		Tier 9		16.74		30.78		-		14.33		-		21.76		-		29.26
		Tier 10		17.98		33.06		-		15.44		-		23.85		-		32.07
		Tier 11		15.80		29.06		-		13.50		-		20.15		-		27.10
		Tier 12		16.98		31.22		-		14.58		-		22.52		-		30.29
		Tier 13		14.93		27.45		-		12.75		-		19.03		-		25.60
		Tier 14		15.81		29.07		-		13.54		-		20.56		-		27.64
	Hextone RetireEase Select^SM
		Tier 1		-		-		-		-		20.05		-		26.45		-
		Tier 2		-		-		-		-		21.68		-		28.60		-
	Hextone Transitions Select^SM
		Tier 1		19.59		36.02		17.47		-		28.60		-		40.47		-
		Tier 2		19.59		36.02		-		16.87		-		27.59		-		39.05
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		-		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		13.63		21.03		-		12.08		-		14.04		-		15.56
		Tier 2		13.29		20.51		-		11.78		-		13.69		-		15.17
		Tier 3		13.63		21.03		-		12.08		-		14.04		-		15.56
	Hextone Capital Vantage^SM
		Tier 1		13.58		20.95		-		12.04		-		13.99		-		15.50
		Tier 2		13.93		21.49		-		12.34		-		14.35		-		15.90
		Tier 3		13.15		20.29		-		11.65		-		13.54		-		15.01
		Tier 4		13.58		20.95		-		12.04		-		13.99		-		15.50
		Tier 5		13.48		20.80		-		11.95		-		13.89		-		15.39
		Tier 6		13.93		21.49		-		12.34		-		14.35		-		15.90
	Hextone Envision VA			9.14		8.10		-		8.91		-		8.90		-		7.30

See Notes to Financial Statements.

F-13

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML		MML		MML										MML
			Conservative		Conservative		Dynamic		MML		MML		MML		MML		Equity
			Allocation		Allocation		Bond		Equity		Equity		Equity Income		Equity Income		Index
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Initial Class)		(Service Class)		(Service Class I)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Class I)
ASSETS
Investments
	Number of shares			6,316,364		29,285,126		1,438,300		849,965		3,323,921		11,175,360		7,904,429		1,040,881
	Identified cost		$	61,484,926	$	277,856,337	$	14,155,932	$	21,808,569	$	84,933,629	$	112,584,951	$	81,210,009	$	30,149,351
	Value		$	50,846,728	$	232,816,750	$	11,894,741	$	22,746,155	$	87,189,240	$	112,871,132	$	78,411,931	$	27,822,737
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				-		3		-		-		-		-		-		-
		Total assets		50,846,728		232,816,753		11,894,741		22,746,155		87,189,240		112,871,132		78,411,931		27,822,737
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				-		-		-		336		-		2,845		-		871
Payable to Hextone Life Insurance Company				31		-		-		61		6		18		15		14
		Total liabilities		31		-		-		397		6		2,863		15		885
NET ASSETS			$	50,846,697	$	232,816,753	$	11,894,741	$	22,745,758	$	87,189,234	$	112,868,269	$	78,411,916	$	27,821,852
Net Assets:
Accumulation units - value			$	50,697,426	$	232,740,078	$	11,894,741	$	21,982,521	$	87,189,234	$	109,283,908	$	78,406,366	$	27,135,783
Contracts in payout (annuitization) period				149,271		76,675		-		763,237		-		3,584,361		5,550		686,069
		Net assets	$	50,846,697	$	232,816,753	$	11,894,741	$	22,745,758	$	87,189,234	$	112,868,269	$	78,411,916	$	27,821,852
Outstanding units
	Contract owners			3,104,296		16,606,296		1,265,675		808,421		3,961,989		3,643,121		3,463,599		855,314
UNIT VALUE
	Panorama Premier		$	15.99	$	-	$	-	$	22.49	$	-	$	37.17	$	-	$	28.78
	Panorama Passage®
		Tier 1		15.78		-		-		24.89		-		36.52		-		29.80
		Tier 2		15.40		-		-		24.12		-		35.38		-		28.87
		Tier 3		16.38		-		-		26.38		-		38.36		-		31.58
		Tier 4		15.75		-		-		25.07		-		36.44		-		30.01
	Hextone Artistry			16.52		-		-		27.02		-		38.81		-		27.52
	Hextone Transitions®
		Custom Plan		17.10		-		-		34.22		-		34.71		-		40.56
		Package Plan I		17.10		-		-		34.22		-		34.71		-		40.56
		Package Plan II		16.23		-		-		31.84		-		32.30		-		37.74
		Package Plan III		15.64		-		-		30.24		-		30.68		-		35.85

See Notes to Financial Statements.

F-14

Hextone Variable Annuity Separate Account 4

STATEMENT OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML		MML		MML										MML
			Conservative		Conservative		Dynamic		MML		MML		MML		MML		Equity
			Allocation		Allocation		Bond		Equity		Equity		Equity Income		Equity Income		Index
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Initial Class)		(Service Class)		(Service Class I)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Class I)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		15.64		-		-		27.84		-		28.29		-		33.37
		Tier 2		14.73		-		-		25.82		-		26.24		-		30.94
		Tier 3		14.19		-		-		24.64		-		25.03		-		29.52
		Tier 4		14.73		-		-		25.78		-		26.20		-		30.90
		Tier 5		13.87		-		-		23.91		-		24.30		-		28.65
		Tier 6		13.37		-		-		22.81		-		23.18		-		27.34
		Tier 7		14.51		-		-		25.40		-		25.82		-		30.44
		Tier 8		13.67		-		-		23.52		-		23.90		-		28.19
		Tier 9		-		13.59		-		-		23.82		-		24.21		-
		Tier 10		-		14.65		-		-		26.11		-		26.53		-
		Tier 11		-		12.81		-		-		22.06		-		22.41		-
		Tier 12		-		13.83		-		-		24.66		-		25.05		-
		Tier 13		-		12.10		-		-		20.84		-		21.17		-
		Tier 14		-		12.84		-		-		22.51		-		22.87		-
	Hextone RetireEase Select^SM
		Tier 1		-		-		-		18.80		-		19.59		-		24.78
		Tier 2		-		-		-		20.33		-		21.18		-		26.79
	Hextone Transitions Select^SM
		Tier 1		16.60		-		-		31.25		-		31.80		-		38.50
		Tier 2		-		16.00		-		-		30.16		-		30.68		-
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		28.99
		Tier 2		-		-		-		-		-		-		-		29.48
		Tier 3		-		-		-		-		-		-		-		30.73
		Tier 4		-		-		-		-		-		-		-		30.73
	Hextone Transitions Select^SM II
		Tier 1		-		11.55		9.38		-		16.58		-		17.00		-
		Tier 2		-		11.27		9.14		-		16.17		-		16.58		-
		Tier 3		-		11.55		9.38		-		16.58		-		17.00		-
	Hextone Capital Vantage^SM
		Tier 1		-		11.51		9.34		-		16.52		-		16.94		-
		Tier 2		-		11.80		9.58		-		16.94		-		17.37		-
		Tier 3		-		11.14		9.05		-		15.99		-		16.40		-
		Tier 4		-		11.51		9.34		-		16.52		-		16.94		-
		Tier 5		-		11.43		9.28		-		16.40		-		16.82		-
		Tier 6		-		11.80		9.58		-		16.94		-		17.37		-
	Hextone Envision VA			-		8.87		8.75		-		9.78		-		9.46		-

See Notes to Financial Statements.

F-15

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML		MML		MML						MML		MML
			Equity		Equity		Focused		MML		MML		Fundamental		Fundamental		MML
			Index		Rotation		Equity		Foreign		Foreign		Equity		Value		Global
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Service Class I)		(Service Class I)				(Initial Class)		(Service Class)						(Class I)
ASSETS
Investments
	Number of shares			1,169,221		179,769		3,123,987		10,749,727		1,066,920		2,363,270		1,858,626		1,024,303
	Identified cost		$	32,322,158	$	2,338,480	$	20,376,829	$	98,254,961	$	9,481,466	$	23,023,143	$	22,360,670	$	6,602,646
	Value		$	29,639,753	$	1,864,204	$	21,586,751	$	89,437,731	$	8,823,429	$	18,740,734	$	20,630,753	$	4,097,213
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				-		2		-		-		-		-		-		-
		Total assets		29,639,753		1,864,206		21,586,751		89,437,731		8,823,429		18,740,734		20,630,753		4,097,213
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				-		-		-		1,945		-		-		-		-
Payable to Hextone Life Insurance Company				7		-		42		60		21		21		33		86
		Total liabilities		7		-		42		2,005		21		21		33		86
NET ASSETS			$	29,639,746	$	1,864,206	$	21,586,709	$	89,435,726	$	8,823,408	$	18,740,713	$	20,630,720	$	4,097,127
Net Assets:
Accumulation units - value			$	29,639,746	$	1,864,206	$	21,586,709	$	85,993,333	$	8,823,408	$	18,669,083	$	20,630,720	$	3,789,695
Contracts in payout (annuitization) period				-		-		-		3,442,393		-		71,630		-		307,432
		Net assets	$	29,639,746	$	1,864,206	$	21,586,709	$	89,435,726	$	8,823,408	$	18,740,713	$	20,630,720	$	4,097,127
Outstanding units
	Contract owners			820,581		97,555		936,219		5,925,578		652,319		909,971		1,213,572		181,481
UNIT VALUE
	Panorama Premier		$	-	$	-	$	30.66	$	14.29	$	-	$	27.87	$	22.34	$	-
	Panorama Passage®
		Tier 1		-		-		30.37		14.35		-		27.61		22.12		-
		Tier 2		-		-		29.86		13.91		-		27.14		21.75		-
		Tier 3		-		-		31.19		15.21		-		28.35		22.72		-
		Tier 4		-		-		30.34		14.45		-		27.58		22.10		-
	Hextone Artistry			-		-		31.39		13.58		-		28.53		22.87		-
	Hextone Transitions®
		Custom Plan		-		-		32.17		17.12		-		29.24		23.44		23.47
		Package Plan I		-		-		32.17		17.12		-		29.24		23.44		23.47
		Package Plan II		-		-		30.99		15.93		-		28.17		22.58		21.84
		Package Plan III		-		-		30.18		15.13		-		27.43		21.98		20.74

See Notes to Financial Statements.

F-16

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML		MML		MML						MML		MML
			Equity		Equity		Focused		MML		MML		Fundamental		Fundamental		MML
			Index		Rotation		Equity		Foreign		Foreign		Equity		Value		Global
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Service Class I)		(Service Class I)				(Initial Class)		(Service Class)						(Class I)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		-		-		30.18		14.23		-		27.43		21.98		20.60
		Tier 2		-		-		28.92		13.20		-		26.28		21.06		19.10
		Tier 3		-		-		28.16		12.59		-		25.59		20.51		18.22
		Tier 4		-		-		28.92		13.18		-		26.28		21.06		19.07
		Tier 5		-		-		27.71		12.22		-		25.19		20.19		17.69
		Tier 6		-		-		26.98		11.66		-		24.52		19.65		16.87
		Tier 7		-		-		28.61		12.98		-		26.01		20.84		18.79
		Tier 8		-		-		27.42		12.02		-		24.92		19.97		17.40
		Tier 9		28.54		-		28.01		-		12.18		25.46		20.40		-
		Tier 10		31.28		-		29.54		-		13.35		26.85		21.52		-
		Tier 11		26.43		-		26.84		-		11.28		24.39		19.55		-
		Tier 12		29.54		-		28.31		-		12.61		25.73		20.62		-
		Tier 13		24.97		-		25.58		-		10.65		23.25		18.63		-
		Tier 14		26.96		-		26.70		-		11.50		24.26		19.45		-
	Hextone RetireEase Select^SM
		Tier 1		-		-		-		8.62		-		-		-		16.42
		Tier 2		-		-		-		9.32		-		-		-		17.75
	Hextone Transitions Select^SM
		Tier 1		-		-		31.49		16.21		-		28.62		22.94		25.28
		Tier 2		37.15		-		31.49		-		15.65		28.62		22.94		-
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		-		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		-		-		21.46		-		10.15		19.47		15.96		-
		Tier 2		-		-		20.93		-		9.90		18.99		15.57		-
		Tier 3		-		-		21.46		-		10.15		19.47		15.96		-
	Hextone Capital Vantage^SM
		Tier 1		-		19.51		21.38		-		10.11		19.40		15.91		-
		Tier 2		-		20.01		21.93		-		10.37		19.89		16.31		-
		Tier 3		-		18.89		20.70		-		9.79		18.78		15.40		-
		Tier 4		-		19.51		21.38		-		10.11		19.40		15.91		-
		Tier 5		-		19.37		21.23		-		10.04		19.26		15.79		-
		Tier 6		-		20.01		21.93		-		10.37		19.89		16.31		-
	Hextone Envision VA			-		9.53		10.02		-		8.70		8.70		9.56		-

See Notes to Financial Statements.

F-17

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

																	MML
							MML		MML				MML		MML		Inflation-
			MML		MML		Growth		Growth		MML		Income		Income		Protected
			Global		Global		Allocation		Allocation		High Yield		& Growth		& Growth		and Income
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Class II)		(Service Class I)		(Initial Class)		(Service Class)				(Initial Class)		(Service Class)		(Initial Class)
ASSETS
Investments
	Number of shares			920,467		5,178,459		38,219,057		79,961,488		4,645,429		1,951,517		2,678,446		10,250,624
	Identified cost		$	6,301,874	$	28,795,408	$	336,241,968	$	698,507,787	$	44,385,861	$	19,885,451	$	26,574,751	$	107,100,217
	Value		$	3,976,417	$	19,626,359	$	282,056,643	$	583,718,861	$	37,488,613	$	21,115,413	$	28,418,315	$	88,872,908
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				-		-		-		-		-		-		-		474
		Total assets		3,976,417		19,626,359		282,056,643		583,718,861		37,488,613		21,115,413		28,418,315		88,873,382
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				5		-		-		-		81		224		-		5,847
Payable to Hextone Life Insurance Company				9		18		45		49		24		84		12		-
		Total liabilities		14		18		45		49		105		308		12		5,847
NET ASSETS			$	3,976,403	$	19,626,341	$	282,056,598	$	583,718,812	$	37,488,508	$	21,115,105	$	28,418,303	$	88,867,535
Net Assets:
Accumulation units - value			$	3,976,239	$	19,626,341	$	282,056,598	$	583,718,812	$	37,485,797	$	20,290,576	$	28,418,303	$	85,946,488
Contracts in payout (annuitization) period				164		-		-		-		2,711		824,529		-		2,921,047
		Net assets	$	3,976,403	$	19,626,341	$	282,056,598	$	583,718,812	$	37,488,508	$	21,115,105	$	28,418,303	$	88,867,535
Outstanding units
	Contract owners			244,219		1,108,024		14,041,930		31,477,349		2,829,996		711,659		1,409,280		6,536,201
UNIT VALUE
	Panorama Premier		$	18.67	$	-	$	19.79	$	-	$	16.42	$	33.14	$	-	$	14.16
	Panorama Passage®
		Tier 1		18.04		-		19.52		-		16.23		25.45		-		13.92
		Tier 2		17.48		-		19.06		-		15.91		24.66		-		13.49
		Tier 3		19.12		-		20.26		-		16.75		26.98		-		14.62
		Tier 4		18.16		-		19.49		-		16.21		25.63		-		13.89
	Hextone Artistry			13.47		-		20.45		-		16.88		24.33		-		14.79
	Hextone Transitions®
		Custom Plan		-		-		21.16		-		17.38		32.82		-		15.48
		Package Plan I		-		-		21.16		-		17.38		32.82		-		15.48
		Package Plan II		-		-		20.08		-		16.63		30.54		-		14.45
		Package Plan III		-		-		19.35		-		16.11		29.01		-		13.75

See Notes to Financial Statements.

F-18

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

																	MML
							MML		MML				MML		MML		Inflation-
			MML		MML		Growth		Growth		MML		Income		Income		Protected
			Global		Global		Allocation		Allocation		High Yield		& Growth		& Growth		and Income
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Class II)		(Service Class I)		(Initial Class)		(Service Class)				(Initial Class)		(Service Class)		(Initial Class)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		-		-		19.35		-		16.11		26.26		-		12.89
		Tier 2		-		-		18.22		-		15.31		24.35		-		11.96
		Tier 3		-		-		17.56		-		14.84		23.23		-		11.41
		Tier 4		-		-		18.22		-		15.31		24.31		-		11.94
		Tier 5		-		-		17.17		-		14.56		22.55		-		11.07
		Tier 6		-		-		16.54		-		14.10		21.51		-		10.56
		Tier 7		-		-		17.95		-		15.12		23.96		-		11.77
		Tier 8		-		-		16.91		-		14.37		22.18		-		10.89
		Tier 9		-		17.71		-		16.84		14.74		-		22.47		-
		Tier 10		-		19.40		-		18.15		15.71		-		24.62		-
		Tier 11		-		16.39		-		15.87		14.02		-		20.80		-
		Tier 12		-		18.33		-		17.14		14.93		-		23.25		-
		Tier 13		-		15.49		-		14.99		13.24		-		19.65		-
		Tier 14		-		16.72		-		15.91		13.93		-		21.22		-
	Hextone RetireEase Select^SM
		Tier 1		-		-		-		-		-		18.61		-		12.36
		Tier 2		-		-		-		-		-		20.12		-		13.37
	Hextone Transitions Select^SM
		Tier 1		-		-		20.54		-		16.95		29.94		-		13.89
		Tier 2		-		24.51		-		19.83		16.95		-		28.90		-
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		-		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		-		15.10		-		13.52		11.84		-		17.38		-
		Tier 2		-		14.72		-		13.18		11.55		-		16.94		-
		Tier 3		-		15.10		-		13.52		11.84		-		17.38		-
	Hextone Capital Vantage^SM
		Tier 1		-		15.04		-		13.47		11.80		-		17.31		-
		Tier 2		-		15.42		-		13.81		12.10		-		17.75		-
		Tier 3		-		14.56		-		13.04		11.42		-		16.76		-
		Tier 4		-		15.04		-		13.47		11.80		-		17.31		-
		Tier 5		-		14.93		-		13.37		11.71		-		17.19		-
		Tier 6		-		15.42		-		13.81		12.10		-		17.75		-
	Hextone Envision VA			-		8.88		-		8.93		9.02		-		9.99		-

See Notes to Financial Statements.

F-19

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML
			Inflation-		MML		MML		MML		MML		MML		MML		MML
			Protected		International		iShares 60/40		iShares 80/20		Large Cap		Large Cap		Managed		Managed
			and Income		Equity		Allocation		Allocation		Growth		Growth		Bond		Bond
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Service Class)								(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
ASSETS
Investments
	Number of shares			5,019,211		897,021		588,040		2,180,860		1,147,690		1,937,924		7,205,952		17,148,778
	Identified cost		$	52,442,824	$	8,135,425	$	5,425,145	$	19,810,464	$	12,904,704	$	22,147,567	$	91,213,774	$	215,318,005
	Value		$	43,115,018	$	7,786,142	$	5,074,789	$	18,624,542	$	11,258,834	$	17,964,557	$	76,378,829	$	180,957,381
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				559		-		2		3		-		-		-		3
		Total assets		43,115,577		7,786,142		5,074,791		18,624,545		11,258,834		17,964,557		76,378,829		180,957,384
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				-		-		-		-		205		-		4,385		-
Payable to Hextone Life Insurance Company				-		37		-		-		91		10		656		-
		Total liabilities		-		37		-		-		296		10		5,041		-
NET ASSETS			$	43,115,577	$	7,786,105	$	5,074,791	$	18,624,545	$	11,258,538	$	17,964,547	$	76,373,788	$	180,957,384
Net Assets:
Accumulation units - value			$	43,111,088	$	7,786,105	$	5,074,791	$	18,624,545	$	11,152,953	$	17,964,547	$	73,788,667	$	180,951,966
Contracts in payout (annuitization) period				4,489		-		-		-		105,585		-		2,585,121		5,418
		Net assets	$	43,115,577	$	7,786,105	$	5,074,791	$	18,624,545	$	11,258,538	$	17,964,547	$	76,373,788	$	180,957,384
Outstanding units
	Contract owners			3,725,815		700,551		570,961		2,102,879		386,186		973,248		5,208,236		14,965,961
UNIT VALUE
	Panorama Premier		$	-	$	-	$	-	$	-	$	23.48	$	-	$	-	$	11.83
	Panorama Passage®
		Tier 1		-		-		-		-		23.63		-		17.94		-
		Tier 2		-		-		-		-		22.90		-		17.39		-
		Tier 3		-		-		-		-		25.04		-		19.01		-
		Tier 4		-		-		-		-		23.79		-		18.07		-
	Hextone Artistry			-		10.40		-		-		19.44		-		18.30		-
	Hextone Transitions®
		Custom Plan		-		10.61		-		-		33.90		-		16.96		-
		Package Plan I		-		10.61		-		-		33.90		-		16.96		-
		Package Plan II		-		10.29		-		-		31.54		-		15.79		-
		Package Plan III		-		10.07		-		-		29.96		-		14.99		-

See Notes to Financial Statements.

F-20

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML
			Inflation-		MML		MML		MML		MML		MML		MML		MML
			Protected		International		iShares 60/40		iShares 80/20		Large Cap		Large Cap		Managed		Managed
			and Income		Equity		Allocation		Allocation		Growth		Growth		Bond		Bond
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Service Class)								(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		-		10.07		-		-		28.36		-		13.46		-
		Tier 2		-		9.73		-		-		26.30		-		12.49		-
		Tier 3		-		9.52		-		-		25.09		-		11.91		-
		Tier 4		-		9.73		-		-		26.26		-		12.47		-
		Tier 5		-		9.39		-		-		24.36		-		11.56		-
		Tier 6		-		9.19		-		-		23.24		-		11.03		-
		Tier 7		-		9.64		-		-		25.88		-		12.29		-
		Tier 8		-		9.31		-		-		23.96		-		11.38		-
		Tier 9		11.03		9.48		-		-		-		24.24		-		11.52
		Tier 10		12.08		9.90		-		-		-		26.57		-		12.63
		Tier 11		10.21		9.15		-		-		-		22.45		-		10.67
		Tier 12		11.41		9.56		-		-		-		25.09		-		11.92
		Tier 13		9.64		8.80		-		-		-		21.21		-		10.08
		Tier 14		10.42		9.11		-		-		-		22.90		-		10.88
	Hextone RetireEase Select^SM
		Tier 1		-		-		-		-		24.74		-		12.44		-
		Tier 2		-		-		-		-		26.74		-		13.45		-
	Hextone Transitions Select^SM
		Tier 1		-		10.42		-		-		35.53		-		14.55		-
		Tier 2		13.40		10.42		-		-		-		34.25		-		14.04
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		-		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		10.50		11.29		-		-		-		17.37		-		9.54
		Tier 2		10.24		11.01		-		-		-		16.94		-		9.30
		Tier 3		10.50		11.29		-		-		-		17.37		-		9.54
	Hextone Capital Vantage^SM
		Tier 1		10.47		11.25		-		-		-		17.31		-		9.50
		Tier 2		10.73		11.54		-		-		-		17.75		-		9.75
		Tier 3		10.13		10.90		-		-		-		16.76		-		9.20
		Tier 4		10.47		11.25		-		-		-		17.31		-		9.50
		Tier 5		10.39		11.17		-		-		-		17.19		-		9.44
		Tier 6		10.73		11.54		-		-		-		17.75		-		9.75
	Hextone Envision VA			8.86		8.79		8.89		8.86		-		8.15		-		8.74

See Notes to Financial Statements.

F-21

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML		MML										MML		MML
			Managed		Managed		MML		MML		MML		MML		Moderate		Moderate
			Volatility		Volatility		Mid Cap Growth		Mid Cap Growth		Mid Cap Value		Mid Cap Value		Allocation		Allocation
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
ASSETS
Investments
	Number of shares			4,764,921		1,457,991		6,548,963		10,285,123		11,425,084		5,645,744		18,754,731		123,317,424
	Identified cost		$	60,732,167	$	18,183,510	$	89,736,868	$	130,427,147	$	112,945,551	$	55,986,065	$	191,178,757	$	1,247,631,382
	Value		$	63,501,642	$	19,279,864	$	57,565,382	$	81,046,771	$	104,768,021	$	50,303,576	$	161,103,136	$	1,044,498,584
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				-		-		-		-		-		-		-		51
		Total assets		63,501,642		19,279,864		57,565,382		81,046,771		104,768,021		50,303,576		161,103,136		1,044,498,635
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				1,974		-		2,886		-		4,832		-		-		-
Payable to Hextone Life Insurance Company				103		6		172		18		126		22		62		-
		Total liabilities		2,077		6		3,058		18		4,958		22		62		-
NET ASSETS			$	63,499,565	$	19,279,858	$	57,562,324	$	81,046,753	$	104,763,063	$	50,303,554	$	161,103,074	$	1,044,498,635
Net Assets:
Accumulation units - value			$	61,236,093	$	19,279,858	$	56,412,979	$	81,046,753	$	101,553,654	$	50,303,554	$	161,103,074	$	1,044,486,230
Contracts in payout (annuitization) period				2,263,472		-		1,149,345		-		3,209,409		-		-		12,405
		Net assets	$	63,499,565	$	19,279,858	$	57,562,324	$	81,046,753	$	104,763,063	$	50,303,554	$	161,103,074	$	1,044,498,635
Outstanding units
	Contract owners			3,697,357		1,298,703		1,136,273		3,733,478		2,437,354		2,207,545		8,783,827		64,409,744
UNIT VALUE
	Panorama Premier		$	15.70	$	-	$	85.24	$	-	$	53.55	$	-	$	17.97	$	-
	Panorama Passage®
		Tier 1		15.38		-		63.01		-		56.60		-		17.73		-
		Tier 2		14.91		-		61.06		-		54.84		-		17.31		-
		Tier 3		16.28		-		66.78		-		59.98		-		18.40		-
		Tier 4		15.47		-		63.45		-		56.99		-		17.70		-
	Hextone Artistry			16.36		-		51.28		-		60.96		-		18.57		-
	Hextone Transitions®
		Custom Plan		20.63		-		58.31		-		49.48		-		19.21		-
		Package Plan I		20.63		-		58.31		-		49.48		-		19.21		-
		Package Plan II		19.20		-		54.25		-		46.04		-		18.24		-
		Package Plan III		18.23		-		51.53		-		43.73		-		17.57		-

See Notes to Financial Statements.

F-22

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML		MML										MML		MML
			Managed		Managed		MML		MML		MML		MML		Moderate		Moderate
			Volatility		Volatility		Mid Cap Growth		Mid Cap Growth		Mid Cap Value		Mid Cap Value		Allocation		Allocation
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		15.85		-		34.13		-		38.24		-		17.57		-
		Tier 2		14.70		-		31.93		-		35.47		-		16.55		-
		Tier 3		14.02		-		30.62		-		33.84		-		15.94		-
		Tier 4		14.67		-		31.93		-		35.41		-		16.55		-
		Tier 5		13.61		-		29.87		-		32.84		-		15.59		-
		Tier 6		12.98		-		28.65		-		31.33		-		15.02		-
		Tier 7		14.46		-		31.41		-		34.90		-		16.30		-
		Tier 8		13.39		-		29.38		-		32.31		-		15.36		-
		Tier 9		-		13.56		-		29.46		-		32.72		-		15.29
		Tier 10		-		14.86		-		32.01		-		35.86		-		16.47
		Tier 11		-		12.55		-		27.56		-		30.29		-		14.40
		Tier 12		-		14.03		-		30.23		-		33.86		-		15.56
		Tier 13		-		11.86		-		26.04		-		28.62		-		13.60
		Tier 14		-		12.81		-		27.83		-		30.90		-		14.44
	Hextone RetireEase Select^SM
		Tier 1		11.49		-		29.33		-		26.45		-		-		-
		Tier 2		12.42		-		31.70		-		28.59		-		-		-
	Hextone Transitions Select^SM
		Tier 1		18.18		-		36.48		-		42.46		-		18.65		-
		Tier 2		-		17.54		-		35.21		-		40.96		-		18.00
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		-		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		-		11.32		-		16.29		-		16.83		-		12.56
		Tier 2		-		11.04		-		15.89		-		16.42		-		12.25
		Tier 3		-		11.32		-		16.29		-		16.83		-		12.56
	Hextone Capital Vantage^SM
		Tier 1		-		11.28		-		16.23		-		16.77		-		12.51
		Tier 2		-		11.57		-		16.65		-		17.20		-		12.83
		Tier 3		-		10.93		-		15.72		-		16.24		-		12.12
		Tier 4		-		11.28		-		16.23		-		16.77		-		12.51
		Tier 5		-		11.20		-		16.12		-		16.65		-		12.42
		Tier 6		-		11.57		-		16.65		-		17.20		-		12.83
	Hextone Envision VA			-		9.16		-		8.78		-		9.80		-		8.92

See Notes to Financial Statements.

F-23

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML		MML		MML		MML		MML		MML		MML		MML
			Short-Duration		Small Cap		Small Cap		Small Cap		Small Cap		Small		Small/Mid Cap		Small/Mid Cap
			Bond		Equity		Equity		Growth Equity		Growth Equity		Company Value		Value		Value
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
					(Initial Class)		(Service Class)		(Initial Class)		(Service Class)				(Initial Class)		(Service Class)
ASSETS
Investments
	Number of shares			3,404,768		2,280,533		2,583,598		7,173,002		3,133,678		3,505,709		8,156,742		2,690,411
	Identified cost		$	32,424,831	$	21,620,486	$	24,827,098	$	86,146,575	$	35,025,892	$	35,752,733	$	77,551,618	$	28,309,073
	Value		$	29,349,102	$	21,415,335	$	23,617,333	$	60,416,682	$	22,649,931	$	23,768,708	$	72,431,865	$	23,433,481
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				-		-		-		-		-		-		-		-
		Total assets		29,349,102		21,415,335		23,617,333		60,416,682		22,649,931		23,768,708		72,431,865		23,433,481
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				67		2,384		-		3,182		-		-		2,140		-
Payable to Hextone Life Insurance Company				40		135		1		127		11		24		78		6
		Total liabilities		107		2,519		1		3,309		11		24		2,218		6
NET ASSETS			$	29,348,995	$	21,412,816	$	23,617,332	$	60,413,373	$	22,649,920	$	23,768,684	$	72,429,647	$	23,433,475
Net Assets:
Accumulation units - value			$	29,346,772	$	21,154,104	$	23,617,332	$	58,115,669	$	22,649,920	$	23,768,684	$	69,823,218	$	23,433,475
Contracts in payout (annuitization) period				2,223		258,712		-		2,297,704		-		-		2,606,429		-
		Net assets	$	29,348,995	$	21,412,816	$	23,617,332	$	60,413,373	$	22,649,920	$	23,768,684	$	72,429,647	$	23,433,475
Outstanding units
	Contract owners			3,030,930		549,032		1,141,426		1,511,703		1,026,472		1,202,832		2,306,713		1,200,173
UNIT VALUE
	Panorama Premier		$	9.84	$	46.84	$	-	$	49.08	$	-	$	-	$	40.82	$	-
	Panorama Passage®
		Tier 1		9.73		42.09		-		43.25		-		-		40.11		-
		Tier 2		9.54		40.78		-		41.91		-		-		38.86		-
		Tier 3		10.05		44.61		-		45.84		-		-		42.13		-
		Tier 4		9.72		42.38		-		43.55		-		-		40.03		-
	Hextone Artistry			10.12		41.00		-		31.17		-		34.78		42.63		-
	Hextone Transitions®
		Custom Plan		10.42		40.01		-		48.69		-		-		44.60		-
		Package Plan I		10.42		40.01		-		48.69		-		-		44.60		-
		Package Plan II		9.97		37.23		-		45.30		-		-		41.63		-
		Package Plan III		9.66		35.36		-		43.03		-		-		39.64		-

See Notes to Financial Statements.

F-24

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML		MML		MML		MML		MML		MML		MML		MML
			Short-Duration		Small Cap		Small Cap		Small Cap		Small Cap		Small		Small/Mid Cap		Small/Mid Cap
			Bond		Equity		Equity		Growth Equity		Growth Equity		Company Value		Value		Value
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
					(Initial Class)		(Service Class)		(Initial Class)		(Service Class)				(Initial Class)		(Service Class)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		9.66		31.13		-		35.59		-		33.06		28.46		-
		Tier 2		9.18		28.87		-		33.01		-		31.31		26.39		-
		Tier 3		8.90		27.54		-		31.49		-		30.25		25.18		-
		Tier 4		9.18		28.82		-		32.95		-		31.31		26.35		-
		Tier 5		8.73		26.73		-		30.56		-		29.64		24.44		-
		Tier 6		8.46		25.50		-		29.16		-		28.64		23.31		-
		Tier 7		9.07		28.40		-		32.47		-		30.88		25.96		-
		Tier 8		8.62		26.30		-		30.07		-		29.24		24.04		-
		Tier 9		8.84		-		26.58		-		30.44		30.05		-		24.34
		Tier 10		9.42		-		29.14		-		33.37		32.17		-		26.68
		Tier 11		8.40		-		24.62		-		28.19		28.45		-		22.54
		Tier 12		8.95		-		27.52		-		31.51		30.46		-		25.20
		Tier 13		7.94		-		23.25		-		26.63		26.87		-		21.29
		Tier 14		8.35		-		25.11		-		28.76		28.38		-		22.99
	Hextone RetireEase Select^SM
		Tier 1		-		23.40		-		24.93		-		-		18.64		-
		Tier 2		-		25.30		-		26.95		-		-		20.16		-
	Hextone Transitions Select^SM
		Tier 1		10.16		36.95		-		43.89		-		34.92		31.49		-
		Tier 2		10.16		-		35.59		-		42.34		34.92		-		30.38
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		-		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		-		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		9.45		-		17.07		-		17.30		16.16		-		15.07
		Tier 2		9.21		-		16.64		-		16.88		15.76		-		14.70
		Tier 3		9.45		-		17.07		-		17.30		16.16		-		15.07
	Hextone Capital Vantage^SM
		Tier 1		9.41		-		17.00		-		17.24		16.11		-		15.02
		Tier 2		9.65		-		17.44		-		17.68		16.51		-		15.40
		Tier 3		9.11		-		16.46		-		16.69		15.59		-		14.54
		Tier 4		9.41		-		17.00		-		17.24		16.11		-		15.02
		Tier 5		9.35		-		16.88		-		17.12		15.99		-		14.91
		Tier 6		9.65		-		17.44		-		17.68		16.51		-		15.40
	Hextone Envision VA			9.30		-		9.08		8.67		-		8.83		-		8.81

See Notes to Financial Statements.

F-25

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML										PIMCO				VY®
			Strategic		MML		MML				MML U.S.		Commodity				CBRE
			Emerging		Sustainable		Sustainable		MML Total		Government		RealReturn®		PIMCO		Global
			Markets		Equity		Equity		Return Bond		Money Market		Strategy		Income		Real Estate
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Service Class I)		(Initial Class)		(Service Class)
ASSETS
Investments
	Number of shares			2,274,334		3,202,475		2,734,807		4,154,121		131,310,064		1,297,499		86,202		974,972
	Identified cost		$	19,296,319	$	47,199,487	$	50,265,882	$	44,128,977	$	131,309,186	$	9,856,828	$	845,669	$	10,575,755
	Value		$	10,939,546	$	55,242,687	$	46,573,771	$	35,974,687	$	131,310,062	$	9,095,469	$	835,295	$	9,135,486
Dividends receivable				-		-		-		-		-		-		-		-
Receivable from Hextone Life Insurance Company				-		-		11		-		458		-		9		-
		Total assets		10,939,546		55,242,687		46,573,782		35,974,687		131,310,520		9,095,469		835,304		9,135,486
LIABILITIES
Payable to fund Annuitant mortality fluctuation reserve				-		5,100		-		-		4,650		79		-		55
Payable to Hextone Life Insurance Company				17		213		-		6		-		123		-		49
		Total liabilities		17		5,313		-		6		4,650		202		-		104
NET ASSETS			$	10,939,529	$	55,237,374	$	46,573,782	$	35,974,681	$	131,305,870	$	9,095,267	$	835,304	$	9,135,382
Net Assets:
Accumulation units - value			$	10,939,529	$	54,902,173	$	46,573,782	$	35,974,681	$	130,568,873	$	8,824,912	$	835,304	$	8,704,399
Contracts in payout (annuitization) period				-		335,201		-		-		736,997		270,355		-		430,983
		Net assets	$	10,939,529	$	55,237,374	$	46,573,782	$	35,974,681	$	131,305,870	$	9,095,267	$	835,304	$	9,135,382
Outstanding units
	Contract owners			1,048,803		1,502,553		2,287,275		3,801,490		14,291,056		1,187,713		89,638		599,231
UNIT VALUE
	Panorama Premier		$	-	$	37.10	$	-	$	9.60	$	8.69	$	7.52	$	-	$	15.07
	Panorama Passage®
		Tier 1		-		36.45		-		9.51		8.57		7.41		-		14.85
		Tier 2		-		35.32		-		9.35		8.37		7.21		-		14.46
		Tier 3		-		38.28		-		9.77		8.90		7.72		-		15.48
		Tier 4		-		36.37		-		9.50		8.56		7.39		-		14.82
	Hextone Artistry			12.44		38.74		-		9.83		8.98		7.80		-		15.64
	Hextone Transitions®
		Custom Plan		-		40.53		-		10.07		9.29		8.10		-		16.25
		Package Plan I		-		40.53		-		10.07		9.29		8.10		-		16.25
		Package Plan II		-		37.83		-		9.70		8.82		7.65		-		15.33
		Package Plan III		-		36.02		-		9.45		8.50		7.33		-		14.70

See Notes to Financial Statements.

F-26

Hextone Variable Annuity Separate Account 4

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

December 31, 2022

			MML										PIMCO				VY®
			Strategic		MML		MML				MML U.S.		Commodity				CBRE
			Emerging		Sustainable		Sustainable		MML Total		Government		RealReturn®		PIMCO		Global
			Markets		Equity		Equity		Return Bond		Money Market		Strategy		Income		Real Estate
			Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Service Class I)		(Initial Class)		(Service Class)
UNIT VALUE (continued)
	Hextone Evolution^SM
		Tier 1		9.63		27.51		-		9.45		8.50		7.33		-		14.70
		Tier 2		9.09		25.51		-		9.05		8.00		6.86		-		13.75
		Tier 3		8.77		24.34		-		8.81		7.71		6.58		-		13.19
		Tier 4		9.09		25.47		-		9.05		8.00		6.86		-		13.75
		Tier 5		8.58		23.63		-		8.68		7.54		6.42		-		12.86
		Tier 6		8.28		22.54		-		8.45		7.26		6.15		-		12.34
		Tier 7		8.96		25.10		-		8.96		7.88		6.75		-		13.52
		Tier 8		8.46		23.24		-		8.58		7.43		6.31		-		12.65
		Tier 9		8.71		-		23.53		8.77		7.66		6.56		-		13.14
		Tier 10		9.35		-		25.79		9.25		8.26		7.12		-		14.28
		Tier 11		8.22		-		21.79		8.40		7.22		6.13		-		12.30
		Tier 12		8.83		-		24.35		8.86		7.80		6.73		-		13.49
		Tier 13		7.77		-		20.58		8.01		6.82		5.79		-		11.61
		Tier 14		8.23		-		22.23		8.36		7.24		6.19		-		12.42
	Hextone RetireEase Select^SM
		Tier 1		-		21.46		-		-		8.72		7.38		-		11.82
		Tier 2		-		23.20		-		-		9.07		7.98		-		12.77
	Hextone Transitions Select^SM
		Tier 1		10.19		31.70		-		9.86		9.02		7.84		-		15.71
		Tier 2		10.19		-		30.58		9.86		9.02		7.84		-		15.71
	Hextone Equity Edge^SM
		Tier 1		-		-		-		-		8.61		-		-		-
		Tier 2		-		-		-		-		-		-		-		-
		Tier 3		-		-		-		-		-		-		-		-
		Tier 4		-		-		-		-		8.97		-		-		-
	Hextone Transitions Select^SM II
		Tier 1		10.60		-		18.02		9.36		9.57		-		-		-
		Tier 2		10.33		-		17.57		9.13		9.33		-		-		-
		Tier 3		10.60		-		18.02		9.36		9.57		-		-		-
	Hextone Capital Vantage^SM
		Tier 1		10.56		-		17.96		9.33		9.53		-		-		-
		Tier 2		10.83		-		18.41		9.56		9.78		-		-		-
		Tier 3		10.22		-		17.39		9.03		9.23		-		-		-
		Tier 4		10.56		-		17.96		9.33		9.53		-		-		-
		Tier 5		10.48		-		17.83		9.26		9.47		-		-		-
		Tier 6		10.83		-		18.41		9.56		9.78		-		-		-
	Hextone Envision VA			7.79		9.08		-		8.77		10.01		-		9.32		-

See Notes to Financial Statements.

F-27

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

For The Year Ended December 31, 2022

		BlackRock		Delaware										Fidelity®		Invesco
		60/40 Target		Ivy VIP		Fidelity®		Fidelity®		Fidelity®		Fidelity®		VIP		Oppenheimer V.I.
		Allocation		Asset		VIP		VIP		VIP		VIP		Strategic		International
		ETF V.I.		Strategy		Contrafund®		Contrafund®		Healthcare		Real Estate		Income		Growth
		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
		(Class III)		(Class II)		(Initial Class)		(Service Class 2)								(Series I)
Investment income
Dividends		$	320,512	$	179,708	$	950,970	$	563,283	$	-	$	1,940	$	7,277	$	-
Expenses
Mortality and expense risk fee and administrative charges			170,295		148,246		2,361,541		2,757,795		2,611		1,194		1,160		256,255
Net Investment income (loss)			150,217		31,462		(1,410,571)		(2,194,512)		(2,611)		746		6,117		(256,255)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		28,994		(82,769)		8,181,837		6,018,068		(1,485)		(1,144)		(963)		(269,507)
	Realized gain distribution		5,391		905,928		9,053,292		10,647,705		-		-		-		4,027,371
	Realized gain (loss)		34,385		823,159		17,235,129		16,665,773		(1,485)		(1,144)		(963)		3,757,864
Change in net unrealized appreciation/depreciation of investments			(3,156,743)		(2,946,196)		(82,508,846)		(90,565,756)		2,501		(30,728)		(8,854)		(11,532,497)
Net gain (loss) on investments			(3,122,358)		(2,123,037)		(65,273,717)		(73,899,983)		1,016		(31,872)		(9,817)		(7,774,633)
Net increase (decrease) in net assets resulting from operations			(2,972,141)		(2,091,575)		(66,684,288)		(76,094,495)		(1,595)		(31,126)		(3,700)		(8,030,888)
Capital transactions:
	Transfers of net premiums		1,698,829		592,631		1,251,792		9,772,320		461,484		182,862		214,580		195,720
	Transfers due to death benefits		(33,215)		(95,423)		(2,344,813)		(1,432,762)		(4,198)		(3,795)		-		(104,352)
	Transfers due to annuity benefit payments		-		-		(680,190)		(409)		-		-		-		(73,728)
	Transfers due to withdrawal of funds		(553,451)		(897,868)		(17,623,733)		(18,120,816)		(601)		(291)		(219)		(1,386,146)
	Transfers due to loans, net of repayments		-		-		(11,411)		-		-		-		-		(4,339)
	Transfers due to cost of insurance		-		2,639		(480,267)		(152,366)		-		-		-		(84,985)
	Transfers due to contingent deferred sales charges		-		(628)		(1,033)		(5,558)		(936)		(389)		(1,063)		(218)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		-		-		122,880		42		-		-		-		27,512
	Transfers between Sub-Accounts and to/from General Account		(245,515)		17,771		3,989,314		(1,353,734)		(7,127)		4,964		(8,455)		1,021,878
Net increase (decrease) in net assets resulting from capital transactions			866,648		(380,878)		(15,777,461)		(11,293,283)		448,622		183,351		204,843		(408,658)
Total increase (decrease)			(2,105,493)		(2,472,453)		(82,461,749)		(87,387,778)		447,027		152,225		201,143		(8,439,546)
NET ASSETS, at beginning of the year			18,530,683		13,346,595		250,765,962		279,055,343		-		-		-		28,738,025
NET ASSETS, at end of the year		$	16,425,190	$	10,874,142	$	168,304,213	$	191,667,565	$	447,027	$	152,225	$	201,143	$	20,298,479

See Notes to Financial Statements.

F-28

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022

		Invesco
		Oppenheimer V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.
		International		Capital		Capital		Conservative		Conservative		Core Plus		Discovery		Discovery
		Growth		Appreciation		Appreciation		Balanced		Balanced		Bond		Mid Cap Growth		Mid Cap Growth
		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)				(Series I)		(Series II)
Investment income
Dividends		$	-	$	-	$	-	$	79,929	$	566	$	60,700	$	-	$	-
Expenses
Mortality and expense risk fee and administrative charges			241,752		1,523,565		122,507		66,742		565		20,118		1,015,239		322,211
Net Investment income (loss)			(241,752)		(1,523,565)		(122,507)		13,187		1		40,582		(1,015,239)		(322,211)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		(339,301)		2,207,214		369,000		214,251		402		(4,666)		244,767		(93,794)
	Realized gain distribution		3,501,346		42,264,421		3,118,548		435,543		3,740		928		21,561,207		7,714,901
	Realized gain (loss)		3,162,045		44,471,635		3,487,548		649,794		4,142		(3,738)		21,805,974		7,621,107
Change in net unrealized appreciation/depreciation of investments			(10,105,086)		(93,017,304)		(7,392,458)		(1,879,814)		(14,325)		(301,045)		(54,795,681)		(18,346,399)
Net gain (loss) on investments			(6,943,041)		(48,545,669)		(3,904,910)		(1,230,020)		(10,183)		(304,783)		(32,989,707)		(10,725,292)
Net increase (decrease) in net assets resulting from operations			(7,184,793)		(50,069,234)		(4,027,417)		(1,216,833)		(10,182)		(264,201)		(34,004,946)		(11,047,503)
Capital transactions:
	Transfers of net premiums		523,653		468,903		114,707		8,403		-		-		389,143		1,358,389
	Transfers due to death benefits		(251,788)		(1,686,703)		(63,592)		(79,482)		-		(10,439)		(868,892)		(91,024)
	Transfers due to annuity benefit payments		-		(313,102)		-		(6,080)		-		(45)		(242,681)		(191)
	Transfers due to withdrawal of funds		(1,930,305)		(13,256,465)		(1,463,496)		(333,546)		(1,153)		(77,940)		(8,170,233)		(1,822,620)
	Transfers due to loans, net of repayments		-		7,648		-		(235)		-		-		(9,893)		-
	Transfers due to cost of insurance		(70,497)		(384,997)		(15,247)		(4,758)		46		-		(266,240)		(11,316)
	Transfers due to contingent deferred sales charges		(577)		(436)		-		(49)		-		(28)		(136)		(346)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		-		44,148		-		529		-		10		35,692		20
	Transfers between Sub-Accounts and to/from General Account		1,713,598		7,280,226		(632,089)		(16,793)		-		-		6,805,582		128,577
Net increase (decrease) in net assets resulting from capital transactions			(15,916)		(7,840,778)		(2,059,717)		(432,011)		(1,107)		(88,442)		(2,327,658)		(438,511)
Total increase (decrease)			(7,200,709)		(57,910,012)		(6,087,134)		(1,648,844)		(11,289)		(352,643)		(36,332,604)		(11,486,014)
NET ASSETS, at beginning of the year			26,049,458		161,466,451		13,493,003		6,987,321		56,716		1,772,416		105,647,787		34,332,308
NET ASSETS, at end of the year		$	18,848,749	$	103,556,439	$	7,405,869	$	5,338,477	$	45,427	$	1,419,773	$	69,315,183	$	22,846,294

See Notes to Financial Statements.

F-29

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022

		Invesco V.I. Diversified Dividend Sub-Account		Invesco V.I. Diversified Dividend Sub-Account		Invesco V.I. Global Sub-Account		Invesco V.I. Global Sub-Account		Invesco V.I. Global Strategic Income Sub-Account		Invesco V.I. Global Strategic Income Sub-Account		Invesco V.I. Health Care Sub-Account		Invesco V.I. Health Care Sub-Account
		(Series I)		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)
Investment income
Dividends		$	88,923	$	165,443	$	-	$	-	$	-	$	-	$	-	$	-
Expenses
Mortality and expense risk fee and administrative charges			56,165		138,284		1,587,882		717,701		1,492,984		599,892		108,183		120,049
Net Investment income (loss)			32,758		27,159		(1,587,882)		(717,701)		(1,492,984)		(599,892)		(108,183)		(120,049)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		51,389		92,077		2,676,058		467,643		(6,074,013)		(2,340,498)		5,215		69,809
	Realized gain distribution		583,379		1,251,212		22,633,364		9,776,023		-		-		1,265,290		1,357,316
	Realized gain (loss)		634,768		1,343,289		25,309,422		10,243,666		(6,074,013)		(2,340,498)		1,270,505		1,427,125
Change in net unrealized appreciation/depreciation of investments			(802,461)		(1,749,671)		(80,778,404)		(34,677,208)		(10,232,913)		(4,356,125)		(2,800,020)		(3,027,263)
Net gain (loss) on investments			(167,693)		(406,382)		(55,468,982)		(24,433,542)		(16,306,926)		(6,696,623)		(1,529,515)		(1,600,138)
Net increase (decrease) in net assets resulting from operations			(134,935)		(379,223)		(57,056,864)		(25,151,243)		(17,799,910)		(7,296,515)		(1,637,698)		(1,720,187)
Capital transactions:
	Transfers of net premiums		82,504		207,911		820,458		1,324,053		660,589		652,640		122,963		142,016
	Transfers due to death benefits		(73,015)		(8,473)		(1,714,520)		(197,068)		(1,902,074)		(503,591)		(126,244)		(56,901)
	Transfers due to annuity benefit payments		(18,401)		-		(322,198)		(412)		(331,195)		-		(41,064)		-
	Transfers due to withdrawal of funds		(269,885)		(2,015,348)		(12,764,595)		(6,379,593)		(12,200,177)		(4,279,835)		(762,707)		(1,365,653)
	Transfers due to loans, net of repayments		(7,276)		-		9,864		-		682		-		4,199		-
	Transfers due to cost of insurance		(8,672)		(3,965)		(322,603)		(127,030)		(481,356)		(294,741)		(9,547)		(12,934)
	Transfers due to contingent deferred sales charges		(3)		-		(611)		(94)		(451)		-		(176)		-
	Transfers due to net charge (credit) to annuitant mortality fluctuation		3,252		-		73,696		43		58,221		-		10,694		-
	Transfers between Sub-Accounts and to/from General Account		110,250		343,749		11,145,889		2,483,654		(5,810,127)		(2,698,820)		35,897		(42,685)
Net increase (decrease) in net assets resulting from capital transactions			(181,246)		(1,476,126)		(3,074,620)		(2,896,447)		(20,005,888)		(7,124,347)		(765,985)		(1,336,157)
Total increase (decrease)			(316,181)		(1,855,349)		(60,131,484)		(28,047,690)		(37,805,798)		(14,420,862)		(2,403,683)		(3,056,344)
NET ASSETS, at beginning of the year			4,919,882		11,345,055		176,055,227		77,475,203		143,423,120		57,328,981		11,396,798		11,700,675
NET ASSETS, at end of the year		$	4,603,701	$	9,489,706	$	115,923,743	$	49,427,513	$	105,617,322	$	42,908,119	$	8,993,115	$	8,644,331

See Notes to Financial Statements.

F-30

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022

		Invesco V.I. Main Street Sub-Account		Invesco V.I. Main Street Sub-Account		Invesco V.I. Technology Sub-Account		Invesco V.I. Technology Sub-Account		Invesco V.I. U.S. Government Money Sub-Account		Janus Henderson Global Technology and Innovation Sub-Account		MML Aggressive Allocation Sub-Account		MML Aggressive Allocation Sub-Account
		(Series I)		(Series II)		(Series I)		(Series II)						(Initial Class)		(Service Class)
Investment income
Dividends		$	435,222	$	231,685	$	-	$	-	$	85,981	$	-	$	587,102	$	1,423,938
Expenses
Mortality and expense risk fee and administrative charges			337,050		262,495		79,194		113,307		72,458		1,494		344,553		965,479
Net Investment income (loss)			98,172		(30,810)		(79,194)		(113,307)		13,523		(1,494)		242,549		458,459
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		(108,049)		(337,549)		207,322		(326,480)		-		(4,731)		210,985		(1,458,792)
	Realized gain distribution		11,217,934		8,051,790		2,503,407		3,389,938		-		22,771		3,975,094		11,286,908
	Realized gain (loss)		11,109,885		7,714,241		2,710,729		3,063,458		-		18,040		4,186,079		9,828,116
Change in net unrealized appreciation/depreciation of investments			(18,859,727)		(13,170,083)		(6,518,315)		(7,963,463)		-		(52,224)		(10,319,199)		(26,573,983)
Net gain (loss) on investments			(7,749,842)		(5,455,842)		(3,807,586)		(4,900,005)		-		(34,184)		(6,133,120)		(16,745,867)
Net increase (decrease) in net assets resulting from operations			(7,651,670)		(5,486,652)		(3,886,780)		(5,013,312)		13,523		(35,678)		(5,890,571)		(16,287,408)
Capital transactions:
	Transfers of net premiums		95,091		577,796		125,143		70,220		113,229		277,453		529,391		1,502,980
	Transfers due to death benefits		(424,954)		(62,055)		(157,069)		(62,194)		(25,747)		-		(234,782)		(44,841)
	Transfers due to annuity benefit payments		(20,387)		-		(20,140)		(184)		(8,132)		-		-		-
	Transfers due to withdrawal of funds		(1,853,203)		(1,859,977)		(480,941)		(1,167,284)		(626,152)		(275)		(4,220,255)		(10,815,755)
	Transfers due to loans, net of repayments		(3,851)		-		154		-		133		-		(8,306)		-
	Transfers due to cost of insurance		(20,923)		(2,542)		(8,661)		(3,116)		23,089		-		(92,688)		(92,676)
	Transfers due to contingent deferred sales charges		(343)		-		(93)		-		(149)		(547)		(5)		-
	Transfers due to net charge (credit) to annuitant mortality fluctuation		934		-		8,975		19		1,887		-		-		-
	Transfers between Sub-Accounts and to/from General Account		(440,303)		(530,438)		(4,996)		(122,803)		1,397,356		3,776		53,868		(842,632)
Net increase (decrease) in net assets resulting from capital transactions			(2,667,939)		(1,877,216)		(537,628)		(1,285,342)		875,514		280,407		(3,972,777)		(10,292,924)
Total increase (decrease)			(10,319,609)		(7,363,868)		(4,424,408)		(6,298,654)		889,037		244,729		(9,863,348)		(26,580,332)
NET ASSETS, at beginning of the year			37,181,449		26,323,196		9,838,777		12,810,416		5,812,814		-		36,316,920		95,058,178
NET ASSETS, at end of the year		$	26,861,840	$	18,959,328	$	5,414,369	$	6,511,762	$	6,701,851	$	244,729	$	26,453,572	$	68,477,846

See Notes to Financial Statements.

F-31

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022

		MML American Funds Core Allocation Sub-Account		MML American Funds Growth Sub-Account		MML American Funds International Sub-Account		MML Balanced Allocation Sub-Account		MML Balanced Allocation Sub-Account		MML Blend Sub-Account		MML Blend Sub-Account		MML Blue Chip Growth Sub-Account
								(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)
Investment income
Dividends		$	16,292,698	$	938,241	$	7,469,097	$	2,357,662	$	10,095,633	$	773,236	$	2,126,739	$	-
Expenses
Mortality and expense risk fee and administrative charges			9,997,557		2,752,809		490,764		853,829		3,875,238		693,771		2,399,426		548,391
Net Investment income (loss)			6,295,141		(1,814,568)		6,978,333		1,503,833		6,220,395		79,465		(272,687)		(548,391)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		(11,274,379)		4,181,111		(19,713,164)		(512,630)		(5,266,691)		(1,475,511)		(6,106,369)		190,183
	Realized gain distribution		50,493,008		48,180,028		1,038,955		4,593,925		21,485,501		1,035,412		3,532,153		8,224,405
	Realized gain (loss)		39,218,629		52,361,139		(18,674,209)		4,081,295		16,218,810		(440,099)		(2,574,216)		8,414,588
Change in net unrealized appreciation/depreciation of investments			(178,198,783)		(137,680,141)		(3,430,385)		(17,723,177)		(79,262,906)		(11,414,506)		(36,424,621)		(33,927,687)
Net gain (loss) on investments			(138,980,154)		(85,319,002)		(22,104,594)		(13,641,882)		(63,044,096)		(11,854,605)		(38,998,837)		(25,513,099)
Net increase (decrease) in net assets resulting from operations			(132,685,013)		(87,133,570)		(15,126,261)		(12,138,049)		(56,823,701)		(11,775,140)		(39,271,524)		(26,061,490)
Capital transactions:
	Transfers of net premiums		14,724,366		10,520,931		878,369		536,870		8,035,321		394,293		13,607,936		314,456
	Transfers due to death benefits		(5,137,564)		(1,495,031)		(234,432)		(745,021)		(3,213,335)		(682,408)		(1,427,476)		(363,818)
	Transfers due to annuity benefit payments		(36,194)		(21,427)		-		-		(8,186)		(213,240)		-		(94,703)
	Transfers due to withdrawal of funds		(91,370,924)		(20,695,044)		(3,043,411)		(7,082,083)		(37,134,145)		(5,147,904)		(12,776,660)		(3,826,384)
	Transfers due to loans, net of repayments		12,554		(1,626)		1,972		4,205		-		(8,861)		-		(13,951)
	Transfers due to cost of insurance		(5,565,329)		(413,955)		(204,303)		(471,409)		(1,252,274)		(62,294)		(42,804)		(59,283)
	Transfers due to contingent deferred sales charges		(16,616)		(8,187)		(841)		-		-		(741)		(2,476)		(385)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		7,132		2,357		-		-		804		40,192		-		30,206
	Transfers between Sub-Accounts and to/from General Account		(6,227,813)		3,741,160		(39,863,815)		(425,722)		(5,332,079)		(228,539)		(4,863,694)		159,913
Net increase (decrease) in net assets resulting from capital transactions			(93,610,388)		(8,370,822)		(42,466,461)		(8,183,160)		(38,903,894)		(5,909,502)		(5,505,174)		(3,853,949)
Total increase (decrease)			(226,295,401)		(95,504,392)		(57,592,722)		(20,321,209)		(95,727,595)		(17,684,642)		(44,776,698)		(29,915,439)
NET ASSETS, at beginning of the year			919,106,679		282,628,214		57,592,722		78,951,185		363,104,191		68,982,917		217,290,953		66,935,027
NET ASSETS, at end of the year		$	692,811,278	$	187,123,822	$	-	$	58,629,976	$	267,376,596	$	51,298,275	$	172,514,255	$	37,019,588

See Notes to Financial Statements.

F-32

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022


		MML Blue Chip Growth Sub-Account		MML Conservative Allocation Sub-Account		MML Conservative Allocation Sub-Account		MML Dynamic Bond Sub-Account		MML Equity Sub-Account		MML Equity Sub-Account		MML Equity Income Sub-Account		MML Equity Income Sub-Account
		(Service Class)		(Initial Class)		(Service Class)		(Service Class I)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
Investment income
Dividends		$	-	$	2,193,895	$	9,438,491	$	445,452	$	371,569	$	1,250,749	$	2,092,308	$	1,245,550
Expenses
Mortality and expense risk fee and administrative charges			1,839,523		699,395		3,419,660		149,876		285,407		1,181,581		1,556,637		1,051,021
Net Investment income (loss)			(1,839,523)		1,494,500		6,018,831		295,576		86,162		69,168		535,671		194,529
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		(4,232,177)		(591,943)		(4,217,391)		(153,673)		357,380		(11,168)		1,008,497		(570,411)
	Realized gain distribution		27,920,807		4,624,225		21,589,285		-		2,483,756		10,101,366		16,328,982		11,451,665
	Realized gain (loss)		23,688,630		4,032,282		17,371,894		(153,673)		2,841,136		10,090,198		17,337,479		10,881,254
Change in net unrealized appreciation/depreciation of investments			(103,168,053)		(15,805,406)		(72,053,206)		(2,244,985)		(4,427,572)		(16,584,726)		(24,040,052)		(15,423,353)
Net gain (loss) on investments			(79,479,423)		(11,773,124)		(54,681,312)		(2,398,658)		(1,586,436)		(6,494,528)		(6,702,573)		(4,542,099)
Net increase (decrease) in net assets resulting from operations			(81,318,946)		(10,278,624)		(48,662,481)		(2,103,082)		(1,500,274)		(6,425,360)		(6,166,902)		(4,347,570)
Capital transactions:
	Transfers of net premiums		5,737,759		938,395		3,048,920		1,197,859		237,774		2,460,298		636,870		2,185,476
	Transfers due to death benefits		(890,897)		(1,436,013)		(4,145,456)		(92,068)		(172,362)		(980,439)		(1,650,240)		(505,839)
	Transfers due to annuity benefit payments		(517)		(15,449)		(2,888)		-		(67,528)		-		(362,440)		(610)
	Transfers due to withdrawal of funds		(10,517,008)		(5,713,904)		(36,917,918)		(618,990)		(1,767,949)		(9,972,143)		(12,959,583)		(7,812,330)
	Transfers due to loans, net of repayments		-		357		-		-		6,803		-		3,424		-
	Transfers due to cost of insurance		(51,297)		(422,114)		(1,142,599)		-		(52,631)		(308,806)		(424,915)		(384,734)
	Transfers due to contingent deferred sales charges		(9,018)		(9)		(200)		(2,267)		(158)		(199)		(222)		(1,675)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		53		3,119		(11,579)		-		33,902		-		89,591		62
	Transfers between Sub-Accounts and to/from General Account		(255,553)		2,033,996		6,212,807		(62,687)		428,163		(2,543,995)		(11,815,196)		666,121
Net increase (decrease) in net assets resulting from capital transactions			(5,986,478)		(4,611,622)		(32,958,913)		421,847		(1,353,986)		(11,345,284)		(26,482,711)		(5,853,529)
Total increase (decrease)			(87,305,424)		(14,890,246)		(81,621,394)		(1,681,235)		(2,854,260)		(17,770,644)		(32,649,613)		(10,201,099)
NET ASSETS, at beginning of the year			203,462,318		65,736,943		314,438,147		13,575,976		25,600,018		104,959,878		145,517,882		88,613,015
NET ASSETS, at end of the year		$	116,156,894	$	50,846,697	$	232,816,753	$	11,894,741	$	22,745,758	$	87,189,234	$	112,868,269	$	78,411,916

See Notes to Financial Statements.

F-33

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022

		MML Equity Index Sub-Account		MML Equity Index Sub-Account		MML Equity Momentum Sub-Account		MML Equity Rotation Sub-Account		MML Focused Equity Sub-Account		MML Foreign Sub-Account		MML Foreign Sub-Account		MML Fundamental Equity Sub-Account
		(Class I)		(Service Class I)		(Service Class I)		(Service Class I)				(Initial Class)		(Service Class)
Investment income
Dividends		$	312,763	$	282,087	$	9,607	$	-	$	130,936	$	3,468,489	$	236,272	$	73,760
Expenses
Mortality and expense risk fees and administrative charges			394,588		445,629		14,570		19,978		254,837		1,210,321		88,584		255,297
Net Investment income (loss)			(81,825)		(163,542)		(4,963)		(19,978)		(123,901)		2,258,168		147,688		(181,537)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		588,121		538,021		(391,327)		(53,862)		827,892		(796,212)		(44,738)		(457,468)
	Realized gain distribution		1,839,889		2,246,951		-		219,825		1,660,896		6,461,151		479,118		3,456,380
	Realized gain (loss)		2,428,010		2,784,972		(391,327)		165,963		2,488,788		5,664,939		434,380		2,998,912
Change in net unrealized appreciation/depreciation of investments			(9,504,297)		(11,119,540)		108,143		(520,198)		(3,697,730)		(24,860,390)		(1,690,038)		(8,057,419)
Net gain (loss) on investments			(7,076,287)		(8,334,568)		(283,184)		(354,235)		(1,208,942)		(19,195,451)		(1,255,658)		(5,058,507)
Net increase (decrease) in net assets resulting from operations			(7,158,112)		(8,498,110)		(288,147)		(374,213)		(1,332,843)		(16,937,283)		(1,107,970)		(5,240,044)
Capital transactions:
	Transfers of net premiums		342,363		138,296		152,614		111,285		1,412,105		350,653		33,911		1,503,370
	Transfers due to death benefits		(429,799)		(42,297)		(6,574)		(94,805)		(75,414)		(997,738)		(71,914)		(19,125)
	Transfers due to annuity benefit payments		(321,722)		-		-		-		-		(320,546)		-		(9,659)
	Transfers due to withdrawal of funds		(2,242,436)		(6,329,183)		(419,637)		(248,331)		(1,662,916)		(10,316,763)		(618,001)		(1,522,874)
	Transfers due to loans, net of repayments		(39,386)		-		-		-		-		1,779		-		-
	Transfers due to cost of insurance		(20,167)		(106,479)		-		-		31		(387,361)		(26,619)		(1,122)
	Transfers due to contingent deferred sales charges		(264)		-		(215)		(214)		(1,267)		(48)		(20)		(158)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		(95,127)		-		-		-		-		59,354		-		1,740
	Transfers between Sub-Accounts and to/from General Account		(249,845)		(1,697,624)		(1,599,775)		(14,262)		1,154,023		2,405,390		2,548,341		48,705
Net increase (decrease) in net assets resulting from capital transactions			(3,056,383)		(8,037,287)		(1,873,587)		(246,327)		826,562		(9,205,280)		1,865,698		877
Total increase (decrease)			(10,214,495)		(16,535,397)		(2,161,734)		(620,540)		(506,281)		(26,142,563)		757,728		(5,239,167)
NET ASSETS, at beginning of the year			38,036,347		46,175,143		2,161,734		2,484,746		22,092,990		115,578,289		8,065,680		23,979,880
NET ASSETS, at end of the year		$	27,821,852	$	29,639,746	$	-	$	1,864,206	$	21,586,709	$	89,435,726	$	8,823,408	$	18,740,713

See Notes to Financial Statements.

F-34

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022


		MML Fundamental Value Sub-Account		MML Global Sub-Account		MML Global Sub-Account		MML Global Sub-Account		MML Growth Allocation Sub-Account		MML Growth Allocation Sub-Account		MML High Yield Sub-Account		MML Income & Growth Sub-Account
				(Class I)		(Class II)		(Service Class I)		(Initial Class)		(Service Class)				(Initial Class)
Investment income
Dividends		$	171,934	$	61,331	$	67,416	$	226,353	$	8,230,410	$	15,113,854	$	3,012,613	$	316,198
Expenses
Mortality and expense risk fees and administrative charges			252,383		48,057		52,602		215,115		4,017,053		7,806,650		515,207		256,290
Net Investment income (loss)			(80,449)		13,274		14,814		11,238		4,213,357		7,307,204		2,497,406		59,908
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		(580,697)		(241,946)		(167,340)		(1,422,941)		(4,224,664)		(10,584,026)		(1,087,332)		162,190
	Realized gain distribution		3,693,954		2,681,213		2,537,527		10,270,001		34,015,506		70,506,702		-		2,407,045
	Realized gain (loss)		3,113,257		2,439,267		2,370,187		8,847,060		29,790,842		59,922,676		(1,087,332)		2,569,235
Change in net unrealized appreciation/depreciation of investments			(4,387,722)		(3,390,765)		(3,304,604)		(12,235,088)		(94,165,932)		(189,978,162)		(7,554,326)		(3,013,042)
Net gain (loss) on investments			(1,274,465)		(951,498)		(934,417)		(3,388,028)		(64,375,090)		(130,055,486)		(8,641,658)		(443,807)
Net increase (decrease) in net assets resulting from operations			(1,354,914)		(938,224)		(919,603)		(3,376,790)		(60,161,733)		(122,748,282)		(6,144,252)		(383,899)
Capital transactions:
	Transfers of net premiums		1,744,339		9,934		47,682		586,834		3,019,271		12,447,825		1,912,837		184,774
	Transfers due to death benefits		(36,064)		(9,980)		(88,816)		(63,604)		(1,949,590)		(4,386,708)		(594,927)		(263,310)
	Transfers due to annuity benefit payments		-		(35,242)		(32)		-		-		-		(526)		(93,947)
	Transfers due to withdrawal of funds		(1,827,771)		(292,069)		(135,075)		(1,516,864)		(22,768,729)		(61,585,836)		(4,366,581)		(1,270,856)
	Transfers due to loans, net of repayments		(567)		-		(13,098)		-		(4,499)		-		(6,809)		(1,373)
	Transfers due to cost of insurance		580		(15,977)		-		(45,246)		(4,017,555)		(6,055,687)		3,471		(32,860)
	Transfers due to contingent deferred sales charges		(1,199)		-		(105)		(417)		(211)		(8,169)		(194)		(369)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		-		14,216		5		-		-		-		268		32,355
	Transfers between Sub-Accounts and to/from General Account		1,585,735		236,412		107,967		4,580,100		(6,032,187)		2,543,394		(1,388,712)		(521,974)
	Net increase (decrease) in net assets resulting from capital transactions		1,465,053		(92,706)		(81,472)		3,540,803		(31,753,500)		(57,045,181)		(4,441,173)		(1,967,560)
Total increase (decrease)			110,139		(1,030,930)		(1,001,075)		164,013		(91,915,233)		(179,793,463)		(10,585,425)		(2,351,459)
NET ASSETS, at beginning of the year			20,520,581		5,128,057		4,977,478		19,462,328		373,971,831		763,512,275		48,073,933		23,466,564
NET ASSETS, at end of the year		$	20,630,720	$	4,097,127	$	3,976,403	$	19,626,341	$	282,056,598	$	583,718,812	$	37,488,508	$	21,115,105

See Notes to Financial Statements.

F-35

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022

		MML Income & Growth Sub-Account		MML Inflation- Protected and Income Sub-Account		MML Inflation- Protected and Income Sub-Account		MML International Equity Sub-Account		MML iShares 60/40 Allocation Sub-Account		MML iShares 80/20 Allocation Sub-Account		MML Large Cap Growth Sub-Account		MML Large Cap Growth Sub-Account
		(Service Class)		(Initial Class)		(Service Class)								(Initial Class)		(Service Class)
Investment income
Dividends		$	359,104	$	2,644,118	$	1,162,237	$	61,536	$	78,194	$	254,629	$	-	$	-
Expenses
Mortality and expense risk fees and administrative charges			371,680		1,363,701		614,274		87,560		38,678		129,739		142,941		260,621
Net Investment income (loss)			(12,576)		1,280,417		547,963		(26,024)		39,516		124,890		(142,941)		(260,621)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		(196,524)		(1,054,347)		(412,746)		(231,361)		(12,439)		(78,108)		220,283		(26,054)
	Realized gain distribution		3,306,589		7,434,466		3,610,305		374,357		-		-		1,281,549		2,077,210
	Realized gain (loss)		3,110,065		6,380,119		3,197,559		142,996		(12,439)		(78,108)		1,501,832		2,051,156
Change in net unrealized appreciation/depreciation of investments			(3,778,763)		(24,621,003)		(11,525,229)		(1,430,412)		(350,356)		(1,185,921)		(6,186,619)		(9,191,691)
Net gain (loss) on investments			(668,698)		(18,240,884)		(8,327,670)		(1,287,416)		(362,795)		(1,264,029)		(4,684,787)		(7,140,535)
Net increase (decrease) in net assets resulting from operations			(681,274)		(16,960,467)		(7,779,707)		(1,313,440)		(323,279)		(1,139,139)		(4,827,728)		(7,401,156)
Capital transactions:
	Transfers of net premiums		927,083		512,293		3,846,674		656,848		5,453,085		19,920,614		135,556		1,007,276
	Transfers due to death benefits		(392,720)		(2,039,691)		(503,146)		(244,317)		-		(7,546)		(77,601)		(128,139)
	Transfers due to annuity benefit payments		-		(335,105)		(521)		-		-		-		(13,439)		-
	Transfers due to withdrawal of funds		(2,218,417)		(11,985,993)		(4,762,961)		(530,771)		(25,786)		(30,118)		(1,216,920)		(1,386,466)
	Transfers due to loans, net of repayments		-		7,025		-		-		-		-		(12,163)		-
	Transfers due to cost of insurance		(34,753)		(397,333)		(140,414)		42		-		-		(13,164)		(5,324)
	Transfers due to contingent deferred sales charges		(817)		(30)		(8,707)		(828)		(29,230)		(119,060)		(188)		(1,254)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		-		59,992		53		-		-		-		3,165		-
	Transfers between Sub-Accounts and to/from General Account		(742,522)		(6,902,058)		(531,613)		910,659		1		(206)		(375,337)		(18,476)
Net increase (decrease) in net assets resulting from capital transactions			(2,462,146)		(21,080,900)		(2,100,635)		791,633		5,398,070		19,763,684		(1,570,091)		(532,383)
Total increase (decrease)			(3,143,420)		(38,041,367)		(9,880,342)		(521,807)		5,074,791		18,624,545		(6,397,819)		(7,933,539)
NET ASSETS, at beginning of the year			31,561,723		126,908,902		52,995,919		8,307,912		-		-		17,656,357		25,898,086
NET ASSETS, at end of the year		$	28,418,303	$	88,867,535	$	43,115,577	$	7,786,105	$	5,074,791	$	18,624,545	$	11,258,538	$	17,964,547

See Notes to Financial Statements.

F-36

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022

		MML Managed Bond Sub-Account		MML Managed Bond Sub-Account		MML Managed Volatility Sub-Account		MML Managed Volatility Sub-Account		MML Mid Cap Growth Sub-Account		MML Mid Cap Growth Sub-Account		MML Mid Cap Value Sub-Account		MML Mid Cap Value Sub-Account
		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
Investment income
Dividends		$	2,643,081	$	5,733,205	$	343,634	$	42,368	$	-	$	-	$	2,304,580	$	983,962
Expenses
Mortality and expense risk fees and administrative charges			1,104,941		2,655,542		948,437		284,036		745,201		1,150,475		1,422,450		662,622
Net Investment income (loss)			1,538,140		3,077,663		(604,803)		(241,668)		(745,201)		(1,150,475)		882,130		321,340
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		(1,730,970)		(4,200,113)		2,623,704		438,459		(2,173,501)		(5,806,409)		975,336		(647,679)
	Realized gain distribution		884,421		2,134,336		-		-		18,370,371		28,240,385		26,231,679		12,762,372
	Realized gain (loss)		(846,549)		(2,065,777)		2,623,704		438,459		16,196,870		22,433,976		27,207,015		12,114,693
Change in net unrealized appreciation/depreciation of investments			(17,144,311)		(40,677,652)		(13,240,592)		(3,566,863)		(37,274,894)		(52,010,720)		(31,282,493)		(14,012,916)
Net gain (loss) on investments			(17,990,860)		(42,743,429)		(10,616,888)		(3,128,404)		(21,078,024)		(29,576,744)		(4,075,478)		(1,898,223)
Net increase (decrease) in net assets resulting from operations			(16,452,720)		(39,665,766)		(11,221,691)		(3,370,072)		(21,823,225)		(30,727,219)		(3,193,348)		(1,576,883)
Capital transactions:
	Transfers of net premiums		453,722		3,925,281		293,390		461,564		405,726		2,664,210		560,993		1,872,746
	Transfers due to death benefits		(1,667,410)		(1,986,200)		(878,869)		(178,602)		(1,019,913)		(777,425)		(1,350,524)		(345,272)
	Transfers due to annuity benefit payments		(261,460)		(624)		(238,968)		-		(142,281)		-		(327,606)		-
	Transfers due to withdrawal of funds		(9,786,711)		(27,525,374)		(7,637,371)		(2,677,878)		(4,869,980)		(8,433,913)		(10,720,216)		(5,153,559)
	Transfers due to loans, net of repayments		8,575		-		5,913		-		4,526		-		(20,067)		-
	Transfers due to cost of insurance		(264,314)		(956,131)		(319,924)		(92,069)		(77,401)		(154,415)		(355,240)		(120,348)
	Transfers due to contingent deferred sales charges		(158)		(2,958)		(264)		-		(1,231)		(3,506)		(1,617)		(1,274)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		69,116		63		29,708		-		31,899		-		66,023		-
	Transfers between Sub-Accounts and to/from General Account		(3,155,468)		(6,743,287)		(7,064,152)		(844,896)		(609,927)		326,437		(12,157,851)		(60,179)
Net increase (decrease) in net assets resulting from capital transactions			(14,604,108)		(33,289,230)		(15,810,537)		(3,331,881)		(6,278,582)		(6,378,612)		(24,306,105)		(3,807,886)
Total increase (decrease)			(31,056,828)		(72,954,996)		(27,032,228)		(6,701,953)		(28,101,807)		(37,105,831)		(27,499,453)		(5,384,769)
NET ASSETS, at beginning of the year			107,430,616		253,912,380		90,531,793		25,981,811		85,664,131		118,152,584		132,262,516		55,688,323
NET ASSETS, at end of the year		$	76,373,788	$	180,957,384	$	63,499,565	$	19,279,858	$	57,562,324	$	81,046,753	$	104,763,063	$	50,303,554

See Notes to Financial Statements.

F-37

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022

		MML Moderate Allocation Sub-Account		MML Moderate Allocation Sub-Account		MML Short-Duration Bond Sub-Account		MML Small Cap Equity Sub-Account		MML Small Cap Equity Sub-Account		MML Small Cap Growth Equity Sub-Account		MML Small Cap Growth Equity Sub-Account		MML Small Company Value Sub-Account
		(Initial Class)		(Service Class)				(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
Investment income
Dividends		$	5,839,701	$	35,183,820	$	924,413	$	170,461	$	108,874	$	-	$	-	$	-
Expenses
Mortality and expense risk fees and administrative charges			2,242,005		15,240,729		380,086		271,472		317,307		882,645		324,584		327,432
Net Investment income (loss)			3,597,696		19,943,091		544,327		(101,011)		(208,433)		(882,645)		(324,584)		(327,432)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		(2,083,491)		(39,501,884)		(642,556)		653,101		120,647		(4,727,587)		(2,363,800)		(1,878,844)
	Realized gain distribution		16,004,361		106,939,391		-		2,853,652		3,044,656		19,915,164		8,085,294		14,125,072
	Realized gain (loss)		13,920,870		67,437,507		(642,556)		3,506,753		3,165,303		15,187,577		5,721,494		12,246,228
Change in net unrealized appreciation/depreciation of investments			(50,999,577)		(315,136,382)		(2,978,754)		(8,197,033)		(8,097,183)		(34,947,506)		(13,245,058)		(16,705,438)
Net gain (loss) on investments			(37,078,707)		(247,698,875)		(3,621,310)		(4,690,280)		(4,931,880)		(19,759,929)		(7,523,564)		(4,459,210)
Net increase (decrease) in net assets resulting from operations			(33,481,011)		(227,755,784)		(3,076,983)		(4,791,291)		(5,140,313)		(20,642,574)		(7,848,148)		(4,786,642)
Capital transactions:
	Transfers of net premiums		784,269		15,562,400		1,194,786		136,880		634,123		587,092		1,037,911		691,865
	Transfers due to death benefits		(643,371)		(9,374,398)		(327,975)		(150,218)		(106,509)		(808,430)		(181,516)		(187,003)
	Transfers due to annuity benefit payments		-		(1,054)		(422)		(27,608)		-		(226,745)		-		-
	Transfers due to withdrawal of funds		(18,901,719)		(178,329,361)		(4,659,651)		(2,301,600)		(2,116,782)		(7,326,801)		(2,043,108)		(1,893,834)
	Transfers due to loans, net of repayments		27,975		-		-		1,312		-		(3,881)		-		1,422
	Transfers due to cost of insurance		(1,818,848)		(6,759,388)		61		(24,407)		(20,452)		(263,332)		(44,280)		(21,059)
	Transfers due to contingent deferred sales charges		(5)		(6,284)		(1,520)		(373)		(257)		(1,063)		-		(314)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		-		32		212		11,490		-		38,732		-		-
	Transfers between Sub-Accounts and to/from General Account		392,545		(9,837,995)		2,194,637		(639,272)		78,306		1,360,397		(935,587)		74,253
Net increase (decrease) in net assets resulting from capital transactions			(20,159,154)		(188,746,048)		(1,599,872)		(2,993,796)		(1,531,571)		(6,644,031)		(2,166,580)		(1,334,670)
Total increase (decrease)			(53,640,165)		(416,501,832)		(4,676,855)		(7,785,087)		(6,671,884)		(27,286,605)		(10,014,728)		(6,121,312)
NET ASSETS, at beginning of the year			214,743,239		1,461,000,467		34,025,850		29,197,903		30,289,216		87,699,978		32,664,648		29,889,996
NET ASSETS, at end of the year		$	161,103,074	$	1,044,498,635	$	29,348,995	$	21,412,816	$	23,617,332	$	60,413,373	$	22,649,920	$	23,768,684

See Notes to Financial Statements.

F-38

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022

		MML Small/Mid Cap Value Sub-Account		MML Small/Mid Cap Value Sub-Account		MML Special Situations Sub-Account		MML Strategic Emerging Markets Sub-Account		MML Sustainable Equity Sub-Account		MML Sustainable Equity Sub-Account		MML Total Return Bond Sub-Account		MML U.S. Government Money Market Sub-Account
		(Initial Class)		(Service Class)				(Service Class I)		(Initial Class)		(Service Class)
Investment income
Dividends		$	1,013,963	$	255,938	$	-	$	353,251	$	577,250	$	351,727	$	524,115	$	1,411,465
Expenses
Mortality and expense risk fees and administrative charges			1,030,798		320,170		6,333		146,664		657,155		638,855		494,129		1,241,844
Net Investment income (loss)			(16,835)		(64,232)		(6,333)		206,587		(79,905)		(287,128)		29,986		169,621
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		(1,572,508)		(444,476)		(487,767)		(1,239,663)		5,267,909		1,237,956		(920,383)		374
	Realized gain distribution		22,055,964		7,050,264		23,065		3,930,101		8,765,580		7,480,195		-		-
	Realized gain (loss)		20,483,456		6,605,788		(464,702)		2,690,438		14,033,489		8,718,151		(920,383)		374
Change in net unrealized appreciation/depreciation of investments			(36,482,132)		(11,583,320)		124,858		(7,222,659)		(26,950,571)		(19,477,341)		(6,323,165)		(373)
Net gain (loss) on investments			(15,998,676)		(4,977,532)		(339,844)		(4,532,221)		(12,917,082)		(10,759,190)		(7,243,548)		1
Net increase (decrease) in net assets resulting from operations			(16,015,511)		(5,041,764)		(346,177)		(4,325,634)		(12,996,987)		(11,046,318)		(7,213,562)		169,622
Capital transactions:
	Transfers of net premiums		436,428		1,041,972		18,686		435,284		375,264		1,260,705		2,622,478		6,447,849
	Transfers due to death benefits		(964,540)		(95,929)		-		(119,198)		(1,040,060)		(114,248)		(394,394)		(896,021)
	Transfers due to annuity benefit payments		(269,122)		-		-		-		(49,900)		-		-		(67,753)
	Transfers due to withdrawal of funds		(8,382,824)		(1,621,556)		(152,965)		(862,395)		(4,572,549)		(2,915,616)		(3,820,645)		(39,500,067)
	Transfers due to loans, net of repayments		1,571		-		-		(48)		(3,344)		-		(1,457)		(13,312)
	Transfers due to cost of insurance		(284,820)		(58,643)		-		(24,237)		(68,396)		(57,055)		1,955		(25,525)
	Transfers due to contingent deferred sales charges		(11)		(1,065)		-		(646)		(368)		(408)		(3,357)		(1,454)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		56,239		-		-		-		22,317		-		-		21,660
	Transfers between Sub-Accounts and to/from General Account		(1,571,522)		(734,038)		(600,792)		485,392		(1,000,924)		(1,513,288)		(2,613,419)		74,399,116
Net increase (decrease) in net assets resulting from capital transactions			(10,978,601)		(1,469,259)		(735,071)		(85,848)		(6,337,960)		(3,339,910)		(4,208,839)		40,364,493
Total increase (decrease)			(26,994,112)		(6,511,023)		(1,081,248)		(4,411,482)		(19,334,947)		(14,386,228)		(11,422,401)		40,534,115
NET ASSETS, at beginning of the year			99,423,759		29,944,498		1,081,248		15,351,011		74,572,321		60,960,010		47,397,082		90,771,755
NET ASSETS, at end of the year		$	72,429,647	$	23,433,475	$	-	$	10,939,529	$	55,237,374	$	46,573,782	$	35,974,681	$	131,305,870

See Notes to Financial Statements.

F-39

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2022

		PIMCO				VY®
		Commodity				CBRE
		RealReturn®		PIMCO		Global
		Strategy		Income		Real Estate
		Sub-Account		Sub-Account		Sub-Account

Investment income
Dividends		$	2,136,455	$	6,683	$	324,182
Expenses
Mortality and expense risk fees and administrative charges			126,080		2,027		134,862
Net Investment income (loss)			2,010,375		4,656		189,320
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		760,141		(521)		(190,175)
	Realized gain distribution		-		6		555,389
	Realized gain (loss)		760,141		(515)		365,214
Change in net unrealized appreciation/depreciation of investments			(2,178,525)		(10,374)		(4,015,670)
Net gain (loss) on investments			(1,418,384)		(10,889)		(3,650,456)
Net increase (decrease) in net assets resulting from operations			591,991		(6,233)		(3,461,136)
Capital transactions:
	Transfers of net premiums		144,108		847,627		126,995
	Transfers due to death benefits		(111,424)		-		(83,459)
	Transfers due to annuity benefit payments		(25,399)		-		(42,494)
	Transfers due to withdrawal of funds		(1,368,790)		(891)		(1,101,455)
	Transfers due to loans, net of repayments		731		-		1,970
	Transfers due to cost of insurance		(43,835)		-		(47,659)
	Transfers due to contingent deferred sales charges		(9)		(1,005)		(13)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		8,760		-		14,705
	Transfers between Sub-Accounts and to/from General Account		1,335,095		(4,194)		103,860
Net increase (decrease) in net assets resulting from capital transactions			(60,763)		841,537		(1,027,550)
Total increase (decrease)			531,228		835,304		(4,488,686)
NET ASSETS, at beginning of the year			8,564,039		-		13,624,068
NET ASSETS, at end of the year		$	9,095,267	$	835,304	$	9,135,382

See Notes to Financial Statements.

F-40

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

For The Year Ended December 31, 2021

		BlackRock 60/40 Target Allocation ETF V.I. Sub-Account		Delaware Ivy VIP Asset Strategy Sub-Account		Fidelity® VIP Contrafund® Sub-Account		Fidelity® VIP Contrafund® Sub-Account		Invesco Oppenheimer V.I. International Growth Sub-Account		Invesco Oppenheimer V.I. International Growth Sub-Account		Invesco V.I. Capital Appreciation Sub-Account		Invesco V.I. Capital Appreciation Sub-Account
		(Class III)				(Initial Class)		(Service Class 2)		(Series II)		(Series I)		(Series II)		(Series I)
Investment income
Dividends		$	309,862	$	208,960	$	158,959	$	68,352	$	-	$	-	$	-	$	-
Expenses
Mortality and expense risk fees and administrative charges			145,110		174,962		3,029,896		3,250,813		325,638		357,812		175,666		2,033,653
Net Investment income (loss)			164,752		33,998		(2,870,937)		(3,182,461)		(325,638)		(357,812)		(175,666)		(2,033,653)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		134,277		317,513		20,301,851		10,790,833		874,283		2,074,600		1,061,733		13,688,546
	Realized gain distribution		1,277,624		1,351,183		30,306,876		32,427,089		2,282,264		2,675,267		731,438		8,520,619
	Realized gain (loss)		1,411,901		1,668,696		50,608,727		43,217,922		3,156,547		4,749,867		1,793,171		22,209,165
Change in net unrealized appreciation/depreciation of investments			(203,980)		(543,013)		9,985,934		18,649,556		(629,788)		(1,778,381)		928,206		11,306,453
Net gain (loss) on investments			1,207,921		1,125,683		60,594,661		61,867,478		2,526,759		2,971,486		2,721,377		33,515,618
Net increase (decrease) in net assets resulting from operations			1,372,673		1,159,681		57,723,724		58,685,017		2,201,121		2,613,674		2,545,711		31,481,965
Capital transactions:
	Transfers of net premiums		8,686,866		624,560		1,520,547		21,575,444		1,027,072		213,437		250,424		719,776
	Transfers due to death benefits		-		(68,016)		(2,607,183)		(3,885,190)		(175,848)		(178,739)		(682,414)		(1,872,007)
	Transfers due to annuity benefit payments		-		-		(881,962)		(476)		-		(89,787)		-		(374,000)
	Transfers due to withdrawal of funds		(465,397)		(1,582,935)		(29,292,232)		(22,245,323)		(2,918,382)		(4,956,714)		(1,470,491)		(19,981,345)
	Transfers due to loans, net of repayments		-		-		21,360		-		-		570		-		7,900
	Transfers due to cost of insurance		-		2,879		(524,504)		(136,977)		(63,093)		(83,056)		(12,848)		(442,224)
	Transfers due to contingent deferred sales charges		-		-		(1,304)		-		-		(320)		-		(543)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		-		-		294,074		42		-		5,760		-		85,105
	Transfers between Sub-Accounts and to/from General Account		28,307		(60,132)		(12,733,709)		(4,194,893)		141,430		(830,370)		(354,162)		(9,006,725)
Net increase (decrease) in net assets resulting from capital transactions			8,249,776		(1,083,644)		(44,204,913)		(8,887,373)		(1,988,822)		(5,919,219)		(2,269,491)		(30,864,063)
Total increase (decrease)			9,622,449		76,037		13,518,811		49,797,644		212,299		(3,305,545)		276,220		617,902
NET ASSETS, at beginning of the year			8,908,234		13,270,558		237,247,151		229,257,699		25,837,159		32,043,570		13,216,783		160,848,549
NET ASSETS, at end of the year		$	18,530,683	$	13,346,595	$	250,765,962	$	279,055,343	$	26,049,458	$	28,738,025	$	13,493,003	$	161,466,451

See Notes to Financial Statements.

F-41

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021

		Invesco V.I. Conservative Balanced Sub-Account		Invesco V.I. Conservative Balanced Sub-Account		Invesco V.I. Core Bond Sub-Account		Invesco V.I. Discovery Mid Cap Growth Sub-Account		Invesco V.I. VIP Discovery Mid Cap Growth Sub-Account		Invesco V.I. Diversified Dividend Sub-Account		Invesco V.I. Diversified Dividend Sub-Account		Invesco V.I. Global Sub-Account
		(Series II)		(Series I)				(Series II)		(Series I)		(Series I)		(Series II)		(Series II)
Investment income
Dividends		$	719	$	103,998	$	38,525	$	-	$	-	$	103,763	$	221,575	$	-
Expenses
Mortality and expense risk fees and administrative charges			1,010		79,979		24,477		401,573		1,374,102		67,562		152,148		996,507
Net Investment income (loss)			(291)		24,019		14,048		(401,573)		(1,374,102)		36,201		69,427		(996,507)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		12,511		448,439		42,378		1,415,875		8,428,390		627,399		217,317		3,703,594
	Realized gain distribution		2,897		355,569		68,557		3,794,314		11,155,527		18,782		44,518		3,997,510
	Realized gain (loss)		15,408		804,008		110,935		5,210,189		19,583,917		646,181		261,835		7,701,104
Change in net unrealized appreciation/depreciation of investments			(8,677)		(191,843)		(181,670)		160,663		(639,758)		279,016		1,437,946		3,315,264
Net gain (loss) on investments			6,731		612,165		(70,735)		5,370,852		18,944,159		925,197		1,699,781		11,016,368
Net increase (decrease) in net assets resulting from operations			6,440		636,184		(56,687)		4,969,279		17,570,057		961,398		1,769,208		10,019,861
Capital transactions:
	Transfers of net premiums		-		9,127		-		4,160,138		508,086		80,692		38,796		3,074,569
	Transfers due to death benefits		(25,999)		(106,047)		(9,473)		(369,963)		(1,067,066)		(27,077)		(8,092)		(1,652,532)
	Transfers due to annuity benefit payments		-		(8,614)		(53)		(250)		(294,933)		(18,753)		-		(553)
	Transfers due to withdrawal of funds		(306)		(605,214)		(152,219)		(2,769,333)		(12,991,971)		(2,556,480)		(1,716,446)		(8,655,857)
	Transfers due to loans, net of repayments		-		781		-		-		5,825		(1,113)		-		-
	Transfers due to cost of insurance		47		(5,875)		-		(7,789)		(301,497)		(7,083)		(1,543)		(158,139)
	Transfers due to contingent deferred sales charges		-		(61)		(32)		-		(182)		(4)		-		-
	Transfers due to net charge (credit) to annuitant mortality fluctuation		-		3,240		(14)		22		64,588		(2,819)		-		48
	Transfers between Sub-Accounts and to/from General Account		-		2,810		(11,588)		11,271		(4,228,155)		188,696		323,660		(934,022)
Net increase (decrease) in net assets resulting from capital transactions			(26,258)		(709,854)		(173,379)		1,024,096		(18,305,305)		(2,343,942)		(1,363,626)		(8,326,486)
Total increase (decrease)			(19,818)		(73,670)		(230,066)		5,993,375		(735,248)		(1,382,544)		405,582		1,693,375
NET ASSETS, at beginning of the year			76,534		7,060,991		2,002,482		28,338,933		106,383,035		6,302,426		10,939,473		75,781,828
NET ASSETS, at end of the year		$	56,716	$	6,987,321	$	1,772,416	$	34,332,308	$	105,647,787	$	4,919,882	$	11,345,055	$	77,475,203

See Notes to Financial Statements.

F-42

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021

		Invesco V.I. Global Sub-Account		Invesco V.I. Global Strategic Income Sub-Account		Invesco V.I. Global Strategic Income Sub-Account		Invesco V.I. Health Care Sub-Account		Invesco V.I. Health Care Sub-Account		Invesco V.I. Main Street Sub-Account		Invesco V.I. Main Street Sub-Account		Invesco V.I. Technology Sub-Account
		(Series I)		(Series II)		(Series I)		(Series I)		(Series II)		(Series II)		(Series I)		(Series I)
Investment income
Dividends		$	-	$	2,453,152	$	6,763,923	$	22,887	$	343	$	125,873	$	243,484	$	-
Expenses
Mortality and expense risk fees and administrative charges			2,177,529		721,847		1,822,852		131,104		152,120		300,046		392,327		113,726
Net Investment income (loss)			(2,177,529)		1,731,305		4,941,071		(108,217)		(151,777)		(174,173)		(148,843)		(113,726)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		12,389,722		(917,165)		(3,260,703)		265,620		500,644		503,919		1,119,791		709,620
	Realized gain distribution		8,916,628		-		-		1,190,476		1,318,928		1,430,994		1,984,885		909,703
	Realized gain (loss)		21,306,350		(917,165)		(3,260,703)		1,456,096		1,819,572		1,934,913		3,104,676		1,619,323
Change in net unrealized appreciation/depreciation of investments			4,603,483		(3,633,402)		(8,537,122)		(163,899)		(458,441)		3,687,512		5,091,557		(302,449)
Net gain (loss) on investments			25,909,833		(4,550,567)		(11,797,825)		1,292,197		1,361,131		5,622,425		8,196,233		1,316,874
Net increase (decrease) in net assets resulting from operations			23,732,304		(2,819,262)		(6,856,754)		1,183,980		1,209,354		5,448,252		8,047,390		1,203,148
Capital transactions:
	Transfers of net premiums		1,275,249		1,818,399		863,961		118,497		286,070		1,783,619		272,774		188,808
	Transfers due to death benefits		(1,503,508)		(352,114)		(2,129,583)		(316,896)		(77,502)		(152,291)		(578,277)		(61,939)
	Transfers due to annuity benefit payments		(396,781)		-		(352,932)		(49,744)		-		-		(19,538)		(27,171)
	Transfers due to withdrawal of funds		(19,177,459)		(5,800,036)		(18,870,935)		(962,418)		(1,891,299)		(2,292,732)		(2,324,248)		(1,020,398)
	Transfers due to loans, net of repayments		7,420		-		8,629		3,220		-		-		3,737		2,302
	Transfers due to cost of insurance		(362,261)		(255,737)		(469,216)		(11,652)		(10,047)		(1,882)		(27,195)		(11,108)
	Transfers due to contingent deferred sales charges		(913)		-		(525)		(203)		-		-		(399)		(109)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		118,224		-		62,234		9,840		-		-		2,814		7,004
	Transfers between Sub-Accounts and to/from General Account		(4,244,572)		3,620,027		17,043,298		96,348		(230,141)		245,451		(1,240,493)		96,884
Net increase (decrease) in net assets resulting from capital transactions			(24,284,601)		(969,461)		(3,845,069)		(1,113,008)		(1,922,919)		(417,836)		(3,910,825)		(825,727)
Total increase (decrease)			(552,297)		(3,788,723)		(10,701,823)		70,972		(713,565)		5,030,416		4,136,565		377,421
NET ASSETS, at beginning of the year			176,607,524		61,117,704		154,124,943		11,325,826		12,414,240		21,292,780		33,044,884		9,461,356
NET ASSETS, at end of the year		$	176,055,227	$	57,328,981	$	143,423,120	$	11,396,798	$	11,700,675	$	26,323,196	$	37,181,449	$	9,838,777

See Notes to Financial Statements.

F-43

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021

		Invesco V.I. Technology Sub-Account		Invesco V.I. U.S. Government Money Sub-Account		MML Aggressive Allocation Sub-Account		MML Aggressive Allocation Sub-Account		MML American Funds Core Allocation Sub-Account		MML American Funds Growth Sub-Account		MML American Funds International Sub-Account		MML Balanced Allocation Sub-Account
		(Series II)				(Initial Class)		(Service Class)								(Initial Class)
Investment income
Dividends		$	-	$	437	$	445,455	$	1,005,385	$	12,247,454	$	-	$	75,218	$	1,004,474
Expenses
Mortality and expense risk fees and administrative charges			171,762		70,307		425,968		1,186,854		12,276,435		3,448,545		732,709		1,043,960
Net Investment income (loss)			(171,762)		(69,870)		19,487		(181,469)		(28,981)		(3,448,545)		(657,491)		(39,486)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		1,226,227		-		619,066		1,348,187		4,695,374		19,113,743		425,242		1,400,088
	Realized gain distribution		1,302,543		-		1,448,643		3,967,133		22,337,749		14,669,469		867,646		2,334,175
	Realized gain (loss)		2,528,770		-		2,067,709		5,315,320		27,033,123		33,783,212		1,292,888		3,734,263
Change in net unrealized appreciation/depreciation of investments			(803,987)		-		2,941,011		8,423,907		73,551,647		18,637,725		(2,363,634)		2,953,628
Net gain (loss) on investments			1,724,783		-		5,008,720		13,739,227		100,584,770		52,420,937		(1,070,746)		6,687,891
Net increase (decrease) in net assets resulting from operations			1,553,021		(69,870)		5,028,207		13,557,758		100,555,789		48,972,392		(1,728,237)		6,648,405
Capital transactions:
	Transfers of net premiums		328,285		106,442		969,986		3,908,621		23,899,577		25,280,328		4,542,591		1,036,088
	Transfers due to death benefits		(81,165)		(616,672)		(26,156)		(941,289)		(2,926,000)		(2,828,767)		(237,037)		(1,958,505)
	Transfers due to annuity benefit payments		(254)		(8,569)		-		-		(38,022)		(26,488)		-		-
	Transfers due to withdrawal of funds		(1,952,566)		(910,599)		(1,947,685)		(13,873,380)		(118,798,010)		(28,674,088)		(7,020,802)		(12,922,497)
	Transfers due to loans, net of repayments		-		-		2,283		-		(636)		6,771		5,146		5,019
	Transfers due to cost of insurance		(1,746)		27,552		(83,737)		(82,781)		(6,064,558)		(554,852)		(257,645)		(433,378)
	Transfers due to contingent deferred sales charges		-		(311)		(6)		-		-		-		-		-
	Transfers due to net charge (credit) to annuitant mortality fluctuation		22		2,033		-		-		6,663		2,437		-		-
	Transfers between Sub-Accounts and to/from General Account		(216,507)		435,453		(1,214,311)		(1,111,086)		(7,836,984)		(9,302,714)		3,468,530		3,565,165
Net increase (decrease) in net assets resulting from capital transactions			(1,923,931)		(964,671)		(2,299,626)		(12,099,915)		(111,757,970)		(16,097,373)		500,783		(10,708,108)
Total increase (decrease)			(370,910)		(1,034,541)		2,728,581		1,457,843		(11,202,181)		32,875,019		(1,227,454)		(4,059,703)
NET ASSETS, at beginning of the year			13,181,326		6,847,355		33,588,339		93,600,335		930,308,860		249,753,195		58,820,176		83,010,888
NET ASSETS, at end of the year		$	12,810,416	$	5,812,814	$	36,316,920	$	95,058,178	$	919,106,679	$	282,628,214	$	57,592,722	$	78,951,185

See Notes to Financial Statements.

F-44

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021


		MML Balanced Allocation Sub-Account		MML Blend Sub-Account		MML Blend Sub-Account		MML Blue Chip Growth Sub-Account		MML Blue Chip Growth Sub-Account		MML Conservative Allocation Sub-Account		MML Conservative Allocation Sub-Account		MML Dynamic Bond Sub-Account
		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Service Class I)
Investment income
Dividends		$	3,758,924	$	1,430,475	$	4,042,373	$	-	$	-	$	808,868	$	2,999,376	$	462,823
Expenses
Mortality and expense risk fees and administrative charges			4,811,452		819,561		2,598,169		796,002		2,521,256		859,918		4,231,237		158,485
Net Investment income (loss)			(1,052,528)		610,914		1,444,204		(796,002)		(2,521,256)		(51,050)		(1,231,861)		304,338
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		(72,731)		598,994		759,676		3,164,870		5,658,093		2,410,599		6,498,277		30,157
	Realized gain distribution		10,941,755		17,153,254		53,390,619		6,623,734		20,907,454		1,994,351		9,357,745		-
	Realized gain (loss)		10,869,025		17,752,248		54,150,295		9,788,604		26,565,547		4,404,950		15,856,022		30,157
Change in net unrealized appreciation/depreciation of investments			19,864,971		(9,734,786)		(30,227,569)		320,305		2,438,818		499,396		7,087,522		(511,723)
Net gain (loss) on investments			30,733,996		8,017,462		23,922,726		10,108,909		29,004,365		4,904,346		22,943,544		(481,567)
Net increase (decrease) in net assets resulting from operations			29,681,468		8,628,376		25,366,930		9,312,907		26,483,109		4,853,296		21,711,683		(177,229)
Capital transactions:
	Transfers of net premiums		13,849,117		608,714		18,574,142		491,293		12,137,261		1,160,873		10,305,748		1,690,483
	Transfers due to death benefits		(4,033,009)		(918,078)		(1,326,714)		(549,713)		(1,879,746)		(1,703,483)		(6,944,038)		(100,268)
	Transfers due to annuity benefit payments		(9,367)		(190,801)		-		(120,047)		(710)		(16,630)		-		-
	Transfers due to withdrawal of funds		(49,854,565)		(6,482,508)		(12,665,625)		(5,307,180)		(15,223,843)		(14,476,854)		(60,574,139)		(1,017,803)
	Transfers due to loans, net of repayments		-		3,016		-		4,774		-		625		-		-
	Transfers due to cost of insurance		(1,376,329)		(61,800)		(32,372)		(73,112)		(47,282)		(385,738)		(1,141,635)		-
	Transfers due to contingent deferred sales charges		-		(977)		-		(527)		-		(10)		-		-
	Transfers due to net charge (credit) to annuitant mortality fluctuation		(14,136)		47,001		-		8,154		63		4,401		-		-
	Transfers between Sub-Accounts and to/from General Account		1,687,967		2,325,522		1,669,316		(1,736,918)		308,149		170,256		12,941,468		727,531
Net increase (decrease) in net assets resulting from capital transactions			(39,750,323)		(4,669,911)		6,218,747		(7,283,276)		(4,706,108)		(15,246,560)		(45,412,596)		1,299,943
Total increase (decrease)			(10,068,855)		3,958,465		31,585,677		2,029,631		21,777,001		(10,393,264)		(23,700,913)		1,122,714
NET ASSETS, at beginning of the year			373,173,046		65,024,452		185,705,276		64,905,396		181,685,317		76,130,207		338,139,060		12,453,262
NET ASSETS, at end of the year		$	363,104,191	$	68,982,917	$	217,290,953	$	66,935,027	$	203,462,318	$	65,736,943	$	314,438,147	$	13,575,976

See Notes to Financial Statements.

F-45

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021

		MML Equity Sub-Account		MML Equity Sub-Account		MML Equity Income Sub-Account		MML Equity Income Sub-Account		MML Equity Index Sub-Account		MML Equity Index Sub-Account		MML Equity Momentum Sub-Account		MML Equity Rotation Sub-Account
		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Class I)		(Service Class I)		(Service Class I)		(Service Class I)
Investment income
Dividends		$	410,657	$	1,534,583	$	3,208,506	$	1,806,424	$	450,524	$	532,341	$	-	$	10,111
Expenses
Mortality and expense risk fees and administrative charges			304,675		1,331,671		1,838,673		1,133,992		454,381		576,545		21,562		23,746
Net Investment income (loss)			105,982		202,912		1,369,833		672,432		(3,857)		(44,204)		(21,562)		(13,635)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		579,262		1,222,962		1,990,108		738,540		1,285,626		2,293,169		122,363		73,768
	Realized gain distribution		-		-		2,824,134		1,754,889		1,531,279		2,074,186		674,626		697,599
	Realized gain (loss)		579,262		1,222,962		4,814,242		2,493,429		2,816,905		4,367,355		796,989		771,367
Change in net unrealized appreciation/depreciation of investments			5,346,417		24,022,723		25,448,084		15,387,765		5,475,804		6,414,821		(377,175)		(213,844)
Net gain (loss) on investments			5,925,679		25,245,685		30,262,326		17,881,194		8,292,709		10,782,176		419,814		557,523
Net increase (decrease) in net assets resulting from operations			6,031,661		25,448,597		31,632,159		18,553,626		8,288,852		10,737,972		398,252		543,888
Capital transactions:
	Transfers of net premiums		223,647		5,278,589		708,514		3,730,203		599,807		190,942		152,871		179,466
	Transfers due to death benefits		(142,367)		(962,160)		(1,588,666)		(460,177)		(295,531)		(63,349)		-		-
	Transfers due to annuity benefit payments		(62,025)		-		(401,795)		(613)		(366,346)		-		-		-
	Transfers due to withdrawal of funds		(1,690,727)		(11,772,900)		(16,213,719)		(10,477,278)		(1,798,914)		(6,381,521)		(436,799)		(240,696)
	Transfers due to loans, net of repayments		8,255		-		8,155		-		240		-		-		-
	Transfers due to cost of insurance		(44,035)		(386,134)		(428,399)		(396,945)		(20,602)		(141,700)		-		-
	Transfers due to contingent deferred sales charges		(161)		-		(217)		-		(290)		-		-		-
	Transfers due to net charge (credit) to annuitant mortality fluctuation		15,360		-		81,409		54		39,113		-		-		-
	Transfers between Sub-Accounts and to/from General Account		(330,346)		(6,985,738)		(10,238,565)		(5,036,140)		(1,384,494)		(2,527,373)		(682)		(15,402)
Net increase (decrease) in net assets resulting from capital transactions			(2,022,399)		(14,828,343)		(28,073,283)		(12,640,896)		(3,227,017)		(8,923,001)		(284,610)		(76,632)
Total increase (decrease)			4,009,262		10,620,254		3,558,876		5,912,730		5,061,835		1,814,971		113,642		467,256
NET ASSETS, at beginning of the year			21,590,756		94,339,624		141,959,006		82,700,285		32,974,512		44,360,172		2,048,092		2,017,490
NET ASSETS, at end of the year		$	25,600,018	$	104,959,878	$	145,517,882	$	88,613,015	$	38,036,347	$	46,175,143	$	2,161,734	$	2,484,746

See Notes to Financial Statements.

F-46

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021

		MML Focused Equity Sub-Account		MML Foreign Sub-Account		MML Foreign Sub-Account		MML Fundamental Equity Sub-Account		MML Fundamental Value Sub-Account		MML Global Sub-Account		MML Global Sub-Account		MML Global Sub-Account
				(Initial Class)		(Service Class)						(Class I)		(Service Class I)		(Class II)
Investment income
Dividends		$	187,845	$	2,997,181	$	192,117	$	70,315	$	290,596	$	45,757	$	145,949	$	43,347
Expenses
Mortality and expense risk fees and administrative charges			252,295		1,528,828		106,848		268,419		218,943		59,064		248,551		61,514
Net Investment income (loss)			(64,450)		1,468,353		85,269		(198,104)		71,653		(13,307)		(102,602)		(18,167)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		749,138		958,163		79,670		(238,451)		(232,498)		157,437		509,978		159,166
	Realized gain distribution		1,192,081		-		-		1,847,265		-		447,142		1,746,563		409,342
	Realized gain (loss)		1,941,219		958,163		79,670		1,608,814		(232,498)		604,579		2,256,541		568,508
	Change in net unrealized appreciation/depreciation of investments		1,947,983		10,683,050		758,075		3,452,686		4,401,510		186,641		607,703		153,697
Net gain (loss) on investments			3,889,202		11,641,213		837,745		5,061,500		4,169,012		791,220		2,864,244		722,205
Net increase (decrease) in net assets resulting from operations			3,824,752		13,109,566		923,014		4,863,396		4,240,665		777,913		2,761,642		704,038
Capital transactions:
	Transfers of net premiums		1,493,885		542,161		276,922		1,433,615		1,753,103		19,393		1,342,015		56,132
	Transfers due to death benefits		(60,568)		(1,025,794)		(41,896)		(62,209)		(154,556)		(105,607)		(280,512)		(143)
	Transfers due to annuity benefit payments		-		(362,353)		-		(10,896)		-		(40,432)		-		(38)
	Transfers due to withdrawal of funds		(1,739,751)		(14,939,925)		(1,238,679)		(1,770,320)		(1,744,500)		(511,023)		(2,085,797)		(225,056)
	Transfers due to loans, net of repayments		-		6,680		-		-		98		-		-		(3,432)
	Transfers due to cost of insurance		797		(404,014)		(16,975)		(1,275)		148		(15,889)		(46,757)		-
	Transfers due to contingent deferred sales charges		-		(55)		-		-		-		-		-		(128)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		-		90,454		-		1,734		-		31,563		-		5
	Transfers between Sub-Accounts and to/from General Account		(383,985)		216,600		(155,889)		519,385		1,560,015		(192,345)		(312,531)		(41,212)
Net increase (decrease) in net assets resulting from capital transactions			(689,622)		(15,876,246)		(1,176,517)		110,034		1,414,308		(814,340)		(1,383,582)		(213,872)
Total increase (decrease)			3,135,130		(2,766,680)		(253,503)		4,973,430		5,654,973		(36,427)		1,378,060		490,166
NET ASSETS, at beginning of the year			18,957,860		118,344,969		8,319,183		19,006,450		14,865,608		5,164,484		18,084,268		4,487,312
NET ASSETS, at end of the year		$	22,092,990	$	115,578,289	$	8,065,680	$	23,979,880	$	20,520,581	$	5,128,057	$	19,462,328	$	4,977,478

See Notes to Financial Statements.

F-47

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021

		MML Growth & Income Sub-Account		MML Growth & Income Sub-Account		MML Growth Allocation Sub-Account		MML Growth Allocation Sub-Account		MML High Yield Sub-Account		MML Income & Growth Sub-Account		MML Income & Growth Sub-Account		MML Inflation- Protected and Income Sub-Account
		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)				(Initial Class)		(Service Class)		(Initial Class)
Investment income
Dividends		$	603,891	$	374,703	$	5,923,378	$	10,034,525	$	3,897,699	$	405,986	$	483,810	$	1,373,720
Expenses
Mortality and expense risk fees and administrative charges			796,930		706,341		4,926,290		9,555,112		563,137		273,944		384,423		1,659,659
Net Investment income (loss)			(193,039)		(331,638)		997,088		479,413		3,334,562		132,042		99,387		(285,939)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		9,921,894		3,007,755		1,603,310		(7,870,560)		210,253		375,778		(161,136)		1,974,241
	Realized gain distribution		3,954,939		3,181,071		16,097,577		33,183,755		-		-		-		9,570,346
	Realized gain (loss)		13,876,833		6,188,826		17,700,887		25,313,196		210,253		375,778		(161,136)		11,544,587
Change in net unrealized appreciation/depreciation of investments			3,337,591		6,532,662		27,485,988		66,077,647		(711,353)		4,612,091		6,427,806		(4,936,414)
Net gain (loss) on investments			17,214,424		12,721,488		45,186,875		91,390,843		(501,100)		4,987,869		6,266,670		6,608,173
Net increase (decrease) in net assets resulting from operations			17,021,385		12,389,850		46,183,963		91,870,256		2,833,462		5,119,911		6,366,057		6,322,234
Capital transactions:
	Transfers of net premiums		346,845		3,551,685		4,697,379		13,450,377		3,968,735		193,039		1,816,261		646,349
	Transfers due to death benefits		(1,145,930)		(346,906)		(2,172,811)		(5,283,696)		(256,826)		(221,337)		(185,807)		(2,272,602)
	Transfers due to annuity benefit payments		(53,285)		-		-		-		(590)		(96,981)		-		(355,333)
	Transfers due to withdrawal of funds		(10,627,046)		(3,945,901)		(61,439,241)		(112,649,929)		(3,306,743)		(2,173,366)		(2,486,080)		(16,460,694)
	Transfers due to loans, net of repayments		7,854		-		4,777		-		(136)		863		-		2,312
	Transfers due to cost of insurance		(84,369)		(57,218)		(3,645,332)		(5,317,399)		2,667		(29,078)		(34,343)		(409,429)
	Transfers due to contingent deferred sales charges		(409)		-		(241)		-		-		(394)		-		(32)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		20,767		-		(1,631)		-		268		21,446		-		44,755
	Transfers between Sub-Accounts and to/from General Account		(2,444,557)		(426,671)		(3,047,913)		(7,205,558)		2,189,952		(1,042,631)		(924,140)		8,426,676
Net increase (decrease) in net assets resulting from capital transactions			(13,980,130)		(1,225,011)		(65,605,013)		(117,006,205)		2,597,327		(3,348,439)		(1,814,109)		(10,377,998)
Total increase (decrease)			3,041,255		11,164,839		(19,421,050)		(25,135,949)		5,430,789		1,771,472		4,551,948		(4,055,764)
NET ASSETS, at beginning of the year			71,531,066		49,795,171		393,392,881		788,648,224		42,643,144		21,695,092		27,009,775		130,964,666
NET ASSETS, at end of the year		$	74,572,321	$	60,960,010	$	373,971,831	$	763,512,275	$	48,073,933	$	23,466,564	$	31,561,723	$	126,908,902

See Notes to Financial Statements.

F-48

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021

		MML Inflation- Protected and Income Sub-Account		MML International Equity Sub-Account		MML Large Cap Growth Sub-Account		MML Large Cap Growth Sub-Account		MML Managed Bond Sub-Account		MML Managed Bond Sub-Account		MML Managed Volatility Sub-Account		MML Managed Volatility Sub-Account
		(Service Class)				(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
Investment income
Dividends		$	417,862	$	38,528	$	9,570	$	-	$	3,440,400	$	7,651,698	$	883,751	$	189,127
Expenses
Mortality and expense risk fees and administrative charges			622,686		93,301		191,192		318,608		1,361,249		3,281,432		1,182,373		343,429
Net Investment income (loss)			(204,824)		(54,773)		(181,622)		(318,608)		2,079,151		4,370,266		(298,622)		(154,302)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		748,442		(102,013)		791,173		936,557		907,434		1,767,838		1,534,527		287,461
	Realized gain distribution		3,665,594		-		1,686,997		2,540,115		2,006,828		4,834,301		-		-
	Realized gain (loss)		4,414,036		(102,013)		2,478,170		3,476,672		2,914,262		6,602,139		1,534,527		287,461
Change in net unrealized appreciation/depreciation of investments			(1,917,291)		858,469		493,408		570,922		(5,476,552)		(12,734,473)		7,550,127		2,360,831
Net gain (loss) on investments			2,496,745		756,456		2,971,578		4,047,594		(2,562,290)		(6,132,335)		9,084,654		2,648,292
Net increase (decrease) in net assets resulting from operations			2,291,921		701,683		2,789,956		3,728,986		(483,139)		(1,762,069)		8,786,032		2,493,990
Capital transactions:
	Transfers of net premiums		4,289,546		963,607		190,289		2,858,921		830,579		10,819,185		495,995		757,064
	Transfers due to death benefits		(396,969)		(30,887)		(204,860)		(283,118)		(2,641,438)		(745,563)		(894,172)		(37,396)
	Transfers due to annuity benefit payments		(577)		-		(12,240)		-		(280,892)		(732)		(263,128)		-
	Transfers due to withdrawal of funds		(6,406,881)		(563,245)		(2,073,884)		(1,515,022)		(13,897,947)		(38,838,769)		(12,506,428)		(4,158,907)
	Transfers due to loans, net of repayments		-		-		1,810		-		5,061		-		(3,351)		-
	Transfers due to cost of insurance		(105,268)		226		(19,100)		(4,803)		(276,982)		(1,181,274)		(324,718)		(110,782)
	Transfers due to contingent deferred sales charges		-		-		(225)		-		(182)		(85)		(328)		-
	Transfers due to net charge (credit) to annuitant mortality fluctuation		51		-		3,656		-		36,275		64		60,503		-
	Transfers between Sub-Accounts and to/from General Account		7,124,345		402,756		(497,678)		(1,115,449)		9,733,381		18,844,435		1,959,766		133,957
Net increase (decrease) in net assets resulting from capital transactions			4,504,247		772,457		(2,612,232)		(59,471)		(6,492,145)		(11,102,740)		(11,475,862)		(3,416,064)
Total increase (decrease)			6,796,167		1,474,140		177,724		3,669,515		(6,975,284)		(12,864,808)		(2,689,830)		(922,074)
NET ASSETS, at beginning of the year			46,199,752		6,833,772		17,478,633		22,228,571		114,405,900		266,777,188		93,221,623		26,903,885
NET ASSETS, at end of the year		$	52,995,919	$	8,307,912	$	17,656,357	$	25,898,086	$	107,430,616	$	253,912,380	$	90,531,793	$	25,981,811

See Notes to Financial Statements.

F-49

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021

		MML Mid Cap Growth Sub-Account		MML Mid Cap Growth Sub-Account		MML Mid Cap Value Sub-Account		MML Mid Cap Value Sub-Account		MML Moderate Allocation Sub-Account		MML Moderate Allocation Sub-Account		MML Short-Duration Bond Sub-Account		MML Small Cap Equity Sub-Account
		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)				(Initial Class)
Investment income
Dividends		$	-	$	-	$	1,893,857	$	687,354	$	2,976,509	$	16,954,350	$	1,083,343	$	129,289
Expenses
Mortality and expense risk fees and administrative charges			1,027,659		1,519,245		1,692,906		700,175		2,796,002		19,723,731		467,688		332,698
Net Investment income (loss)			(1,027,659)		(1,519,245)		200,951		(12,821)		180,507		(2,769,381)		615,655		(203,409)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		2,859,904		2,548,571		3,335,665		525,622		1,882,183		(12,101,229)		372,662		1,168,803
	Realized gain distribution		17,320,451		25,312,531		3,036,272		1,289,057		7,953,728		55,864,741		-		1,751,544
	Realized gain (loss)		20,180,355		27,861,102		6,371,937		1,814,679		9,835,911		43,763,513		372,662		2,920,347
Change in net unrealized appreciation/depreciation of investments			(9,076,125)		(13,253,726)		20,274,150		8,714,285		12,638,568		109,942,563		(782,759)		2,902,610
Net gain (loss) on investments			11,104,230		14,607,376		26,646,087		10,528,964		22,474,479		153,706,076		(410,097)		5,822,957
Net increase (decrease) in net assets resulting from operations			10,076,571		13,088,131		26,847,038		10,516,143		22,654,986		150,936,695		205,558		5,619,548
Capital transactions:
	Transfers of net premiums		716,142		4,729,492		727,507		2,310,164		2,067,799		20,121,722		2,544,255		220,217
	Transfers due to death benefits		(1,117,071)		(3,683,940)		(1,282,798)		(484,185)		(2,558,237)		(11,972,879)		(994,075)		(198,501)
	Transfers due to annuity benefit payments		(165,432)		-		(356,137)		-		-		(1,204)		(1,056)		(32,493)
	Transfers due to withdrawal of funds		(11,750,323)		(12,385,939)		(18,806,807)		(5,892,370)		(40,070,052)		(251,481,590)		(12,408,635)		(2,616,545)
	Transfers due to loans, net of repayments		6,141		-		10,050		-		48,070		-		-		3,727
	Transfers due to cost of insurance		(85,290)		(185,476)		(359,684)		(128,547)		(1,683,226)		(8,323,040)		1,176		(28,032)
	Transfers due to contingent deferred sales charges		(1,696)		-		(1,641)		-		(6)		-		-		(425)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		69,386		-		80,256		-		-		39		456		5,350
	Transfers between Sub-Accounts and to/from General Account		(2,033,563)		(1,195,561)		(7,776,411)		(1,902,830)		(813,556)		(13,709,208)		405,291		(1,034,472)
Net increase (decrease) in net assets resulting from capital transactions			(14,361,706)		(12,721,424)		(27,765,665)		(6,097,768)		(43,009,208)		(265,366,160)		(10,452,588)		(3,681,174)
Total increase (decrease)			(4,285,135)		366,707		(918,627)		4,418,375		(20,354,222)		(114,429,465)		(10,247,030)		1,938,374
NET ASSETS, at beginning of the year			89,949,266		117,785,877		133,181,143		51,269,948		235,097,461		1,575,429,932		44,272,880		27,259,529
NET ASSETS, at end of the year		$	85,664,131	$	118,152,584	$	132,262,516	$	55,688,323	$	214,743,239	$	1,461,000,467	$	34,025,850	$	29,197,903

See Notes to Financial Statements.

F-50

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021

		MML Small Cap Equity Sub-Account		MML Small Cap Growth Equity Sub-Account		MML Small Cap Growth Equity Sub-Account		MML Small Company Value Sub-Account		MML Small/Mid Cap Value Sub-Account		MML Small/Mid Cap Value Sub-Account		MML Special Situations Sub-Account		MML Strategic Emerging Markets Sub-Account
		(Service Class)		(Initial Class)		(Service Class)				(Initial Class)		(Service Class)		(Service Class I)		(Service Class I)
Investment income
Dividends		$	79,307	$	-	$	-	$	53,636	$	1,031,577	$	239,776	$	-	$	-
Expenses
Mortality and expense risk fees and administrative charges			368,139		1,152,960		409,807		358,422		1,298,025		344,801		10,851		201,067
Net Investment income (loss)			(288,832)		(1,152,960)		(409,807)		(304,786)		(266,448)		(105,025)		(10,851)		(201,067)
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		1,362,781		4,426,498		561,431		264,461		3,092,227		575,022		69,795		655,317
	Realized gain distribution		1,781,357		13,843,401		5,524,202		1,809,070		-		-		254,680		3,274,119
	Realized gain (loss)		3,144,138		18,269,899		6,085,633		2,073,531		3,092,227		575,022		324,475		3,929,436
Change in net unrealized appreciation/depreciation of investments			2,415,161		(11,665,770)		(3,904,454)		4,088,928		27,606,118		6,953,903		(317,402)		(5,276,836)
Net gain (loss) on investments			5,559,299		6,604,129		2,181,179		6,162,459		30,698,345		7,528,925		7,073		(1,347,400)
Net increase (decrease) in net assets resulting from operations			5,270,467		5,451,169		1,771,372		5,857,673		30,431,897		7,423,900		(3,778)		(1,548,467)
Capital transactions:
	Transfers of net premiums		2,717,382		357,005		2,493,687		1,983,657		490,349		2,555,565		100,912		1,139,754
	Transfers due to death benefits		(106,481)		(769,385)		(201,864)		(324,447)		(1,027,532)		(415,034)		-		(37,527)
	Transfers due to annuity benefit payments		-		(267,678)		-		-		(311,645)		-		-		-
	Transfers due to withdrawal of funds		(2,915,071)		(11,470,180)		(3,228,999)		(2,345,583)		(12,673,605)		(2,405,968)		(160,408)		(1,489,271)
	Transfers due to loans, net of repayments		-		3,369		-		1,557		3,442		-		-		1,100
	Transfers due to cost of insurance		(13,656)		(281,054)		(41,221)		(16,155)		(305,779)		(54,941)		-		(21,671)
	Transfers due to contingent deferred sales charges		-		(280)		-		-		(11)		-		-		-
	Transfers due to net charge (credit) to annuitant mortality fluctuation		-		54,547		-		-		77,517		-		-		-
	Transfers between Sub-Accounts and to/from General Account		(8,352)		3,630,364		706,910		(816,408)		(14,959,046)		548,526		194,062		1,091,922
Net increase (decrease) in net assets resulting from capital transactions			(326,178)		(8,743,292)		(271,488)		(1,517,379)		(28,706,310)		228,148		134,566		684,307
Total increase (decrease)			4,944,289		(3,292,123)		1,499,884		4,340,294		1,725,587		7,652,048		130,788		(864,160)
NET ASSETS, at beginning of the year			25,344,927		90,992,101		31,164,764		25,549,702		97,698,172		22,292,450		950,460		16,215,171
NET ASSETS, at end of the year		$	30,289,216	$	87,699,978	$	32,664,648	$	29,889,996	$	99,423,759	$	29,944,498	$	1,081,248	$	15,351,011

See Notes to Financial Statements.

F-51

Hextone Variable Annuity Separate Account 4

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)

For The Year Ended December 31, 2021

						PIMCO		VY®
				MML U.S.		Commodity		Clarion
		MML Total		Government		RealReturn®		Global
		Return Bond		Money Market		Strategy		Real Estate
		Sub-Account		Sub-Account		Sub-Account		Sub-Account
Investment income
Dividends		$	770,079	$	-	$	343,920	$	348,138
Expenses
Mortality and expense risk fees and administrative charges			586,111		1,279,568		105,660		165,605
Net Investment income (loss)			183,968		(1,279,568)		238,260		182,533
Net realized and unrealized gain (loss) on investments
	Realized gain (loss) on sale of fund shares		253,917		758		(88,335)		35,208
	Realized gain distribution		2,039,232		-		-		-
	Realized gain (loss)		2,293,149		758		(88,335)		35,208
Change in net unrealized appreciation/depreciation of investments			(3,808,341)		(785)		2,091,823		3,455,045
Net gain (loss) on investments			(1,515,192)		(28)		2,003,488		3,490,253
Net increase (decrease) in net assets resulting from operations			(1,331,224)		(1,279,596)		2,241,748		3,672,786
Capital transactions:
	Transfers of net premiums		6,317,977		7,011,007		112,710		86,276
	Transfers due to death benefits		(265,862)		(1,376,137)		(74,676)		(51,232)
	Transfers due to annuity benefit payments		-		(60,710)		(22,554)		(48,580)
	Transfers due to withdrawal of funds		(4,995,372)		(73,227,663)		(1,286,345)		(1,632,298)
	Transfers due to loans, net of repayments		1,961		14,509		(6,276)		2,440
	Transfers due to cost of insurance		3,322		(46,133)		(34,544)		(46,793)
	Transfers due to contingent deferred sales charges		-		(381)		(8)		(15)
	Transfers due to net charge (credit) to annuitant mortality fluctuation		-		4,850		2,317		6,571
	Transfers between Sub-Accounts and to/from General Account		(314,408)		16,020,192		4,176		(936,847)
Net increase (decrease) in net assets resulting from capital transactions			747,618		(51,660,467)		(1,305,200)		(2,620,478)
Total increase (decrease)			(583,606)		(52,940,062)		936,548		1,052,308
NET ASSETS, at beginning of the year			47,980,688		143,711,817		7,627,491		12,571,760
NET ASSETS, at end of the year		$	47,397,082	$	90,771,755	$	8,564,039	$	13,624,068

See Notes to Financial Statements.

F-52

Hextone Mutual Variable Annuity Separate Account 4

Notes To Financial Statements

1.	*ORGANIZATION*

Hextone Variable Annuity Separate Account 4 (“the Separate Account”) is a separate investment account of Hextone Life Insurance Company (“Hextone”) established on July 9, 1998. The Separate Account is registered as a unit investment trust under the Investment Company Act of 1940 (“the 1940 Act”).

Hextone maintains eleven segments within the Separate Account, they are: Panorama Premier, Panorama Passage®, Hextone Artistry, Hextone Transitions®, Hextone Evolution^SM, Hextone RetireEase Select^SM, Hextone Transitions Select^SM, Hextone Equity Edge^SM, Hextone Transitions Select^SM II, Hextone Capital Vantage® and Hextone Envision^SM. Seven of the ten segments within the Separate Account: Panorama Passage®, Hextone Evolution^SM, Hextone RetireEase Select^SM, Hextone Transitions Select^SM, Hextone EquityEdge^SM, Hextone Transitions Select^SM II and Hextone Capital Vantage^® have multiple tiers. The unit values of these tiers differ based on the associated expense ratios.

The assets and liabilities of the Separate Account are clearly identified and distinguished from Hextone’s other assets and liabilities. The Separate Account assets are not chargeable with liabilities arising from any other Hextone business.

F-53

Notes To Financial Statements (Continued)

2.		*INVESTMENT OF THE SEPARATE ACCOUNT’S ASSETS*

		For the year or period ended December 31, 2022, the Separate Account consists of ninety-nine sub-accounts which invest in the following mutual funds. All of the sub-accounts may not be available to all of the eleven segments of the Separate Account:

		The sub-account listed in the first column
Sub-Accounts		invests in the fund in this column
BlackRock 60/40 Target Allocation ETF V.I. Sub-Account (Class III)		BlackRock 60/40 Target Allocation ETF V.I. Fund (Class III)⁷
Delaware Ivy VIP Asset Strategy Sub-Account (Class II)¹⁶		Delaware Ivy VIP Asset Strategy Portfolio (Class II)^{6, 16}
Fidelity® VIP Contrafund® Sub-Account (Initial Class)		Fidelity® VIP Contrafund® Portfolio (Initial Class)¹
Fidelity® VIP Contrafund® Sub-Account (Service Class II)		Fidelity® VIP Contrafund® Portfolio (Service Class II)¹
Fidelity® VIP Healthcare Sub-Account²⁰		Fidelity® VIP Healthcare Fund^{1, 20}
Fidelity® VIP Real Estate Sub-Account²⁰		Fidelity® VIP Real Estate Fund^{1, 20}
Fidelity® VIP Strategic Income Sub-Account²⁰		Fidelity® VIP Strategic Income Fund^{1, 20}
Invesco Oppenheimer V.I. International Growth Sub-Account (Series I)		Invesco Oppenheimer V.I. International Growth Fund (Series I)³
Invesco Oppenheimer V.I. International Growth Sub-Account (Series II)		Invesco Oppenheimer V.I. International Growth Fund (Series II)³
Invesco V.I. Capital Appreciation Sub-Account (Series I)⁸		Invesco V.I. Capital Appreciation Fund (Series I)^{3, 8}
Invesco V.I. Capital Appreciation Sub-Account (Series II)⁸		Invesco V.I. Capital Appreciation Fund (Series II)^{3, 8}
Invesco V.I. Conservative Balanced Sub-Account (Series I)⁹		Invesco V.I. Conservative Balanced Fund (Series I)^{3, 9}
Invesco V.I. Conservative Balanced Sub-Account (Series II)⁹		Invesco V.I. Conservative Balanced Fund (Series II)^{3, 9}
Invesco V.I. Core Plus Bond Sub-Account¹⁰		Invesco V.I. Core Plus Bond Fund^{3, 10, 22}
Invesco V.I. Discovery Mid Cap Growth Sub-Account (Series I)¹¹		Invesco V.I. Discovery Mid Cap Growth Fund (Series I)^{3, 11}
Invesco V.I. Discovery Mid Cap Growth Sub-Account (Series II)¹¹		Invesco V.I. Discovery Mid Cap Growth Fund (Series II)^{3, 11}
Invesco V.I. Diversified Dividend Sub-Account (Series I)		Invesco V.I. Diversified Dividend Fund (Series I)³
Invesco V.I. Diversified Dividend Sub-Account (Series II)		Invesco V.I. Diversified Dividend Fund (Series II)³
Invesco V.I. Global Sub-Account (Series I)¹²		Invesco V.I. Global Fund (Series I)^{3, 12}
Invesco V.I. Global Sub-Account (Series II)¹²		Invesco V.I. Global Fund (Series II)^{3, 12}
Invesco V.I. Global Strategic Income Sub-Account (Series I)¹³		Invesco V.I. Global Strategic Income Fund (Series I)^{3, 13}
Invesco V.I. Global Strategic Income Sub-Account (Series II)¹³		Invesco V.I. Global Strategic Income Fund (Series II)^{3, 13}
Invesco V.I. Health Care Sub-Account (Series I)		Invesco V.I. Health Care Fund (Series I)³
Invesco V.I. Health Care Sub-Account (Series II)		Invesco V.I. Health Care Fund (Series II)³
Invesco V.I. Main Street Sub-Account (Series I)¹⁴		Invesco V.I. Main Street Fund® (Series I)^{3, 14}
Invesco V.I. Main Street Sub-Account (Series II)¹⁴		Invesco V.I. Main Street Fund® (Series II)^{3, 14}
Invesco V.I. Technology Sub-Account (Series I)		Invesco V.I. Technology Fund (Series I)³
Invesco V.I. Technology Sub-Account (Series II)		Invesco V.I. Technology Fund (Series II)³
Invesco V.I. U.S. Government Money Sub-Account¹⁵		Invesco V.I. U.S. Government Money Fund^{3, 15}
Janus Henderson Global Technology and Innovation Sub-Account²⁰		Janus Henderson Global Technology and Innovation Fund^{20, 23}
MML Aggressive Allocation Sub-Account (Initial Class)		MML Aggressive Allocation Fund (Initial Class)⁴
MML Aggressive Allocation Sub-Account (Service Class)		MML Aggressive Allocation Fund (Service Class)⁴
MML American Funds Core Allocation Sub-Account		MML American Funds Core Allocation Fund⁴
MML American Funds Growth Sub-Account		MML American Funds Growth Fund⁴
MML American Funds International Sub-Account		MML American Funds International Fund^{4, 21}
MML Balanced Allocation Sub-Account (Initial Class)		MML Balanced Allocation Fund (Initial Class) ⁴

F-54

Notes To Financial Statements (Continued)

MML Balanced Allocation Sub-Account (Service Class)		MML Balanced Allocation Fund (Service Class) ⁴
MML Blend Sub-Account (Initial Class)		MML Blend Fund (Initial Class)⁴
MML Blend Sub-Account (Service Class)		MML Blend Fund (Service Class)⁴
MML Blue Chip Growth Sub-Account (Initial Class)		MML Blue Chip Growth Fund (Initial Class)⁴
MML Blue Chip Growth Sub-Account (Service Class)		MML Blue Chip Growth Fund (Service Class)⁴
MML Conservative Allocation Sub-Account (Initial Class)		MML Conservative Allocation Fund (Initial Class)⁴
MML Conservative Allocation Sub-Account (Service Class)		MML Conservative Allocation Fund (Service Class)⁴
MML Dynamic Bond Sub-Account (Service Class I)		MML Dynamic Bond Fund (Service Class I)⁴
MML Equity Sub-Account (Initial Class)		MML Equity Fund (Initial Class)⁴
MML Equity Sub-Account (Service Class)		MML Equity Fund (Service Class)⁴
MML Equity Income Sub-Account (Initial Class)		MML Equity Income Fund (Initial Class)⁴
MML Equity Income Sub-Account (Service Class)		MML Equity Income Fund (Service Class)⁴
MML Equity Index Sub-Account (Class I)		MML Equity Index Fund (Class I)⁴
MML Equity Index Sub-Account (Service Class I)		MML Equity Index Fund (Service Class I)⁴
MML Equity Momentum Sub-Account (Service Class I)		MML Equity Momentum Fund (Service Class I)^{4, 21}
MML Equity Rotation Sub-Account (Service Class I)		MML Equity Rotation Fund (Service Class I)⁴
MML Focused Equity Sub-Account		MML Focused Equity Fund (Initial Class)⁴
MML Foreign Sub-Account (Initial Class)		MML Foreign Fund (Initial Class)⁴
MML Foreign Sub-Account (Service Class)		MML Foreign Fund (Service Class)⁴
MML Fundamental Equity Sub-Account		MML Fundamental Equity Fund (Initial Class)⁴
MML Fundamental Value Sub-Account		MML Fundamental Value Fund (Initial Class)⁴
MML Global Sub-Account (Class I)		MML Global Fund (Class I)⁴
MML Global Sub-Account (Class II)		MML Global Fund (Class II)⁴
MML Global Sub-Account (Service Class I)		MML Global Fund (Service Class I)⁴
MML Growth Allocation Sub-Account (Initial Class)		MML Growth Allocation Fund (Initial Class)⁴
MML Growth Allocation Sub-Account (Service Class)		MML Growth Allocation Fund (Service Class)⁴
MML High Yield Sub-Account		MML High Yield Fund⁴
MML Income & Growth Sub-Account (Initial Class)		MML Income & Growth Fund (Initial Class)⁴
MML Income & Growth Sub-Account (Service Class)		MML Income & Growth Fund (Service Class)⁴
MML Inflation-Protected and Income Sub-Account (Initial Class)		MML Inflation-Protected and Income Fund (Initial Class)⁴
MML Inflation-Protected and Income Sub-Account (Service Class)		MML Inflation-Protected and Income Fund (Service Class)⁴
MML International Equity Sub-Account		MML International Equity Fund⁴
MML iShares 60/40 Allocation Sub-Account²⁰		MML iShares 60/40 Allocation Fund^{4, 20}
MML iShares 80/20 Allocation Sub-Account²⁰		MML iShares 80/20 Allocation Fund^{4, 20}
MML Large Cap Growth Sub-Account (Initial Class)		MML Large Cap Growth Fund (Initial Class)⁴
MML Large Cap Growth Sub-Account (Service Class)		MML Large Cap Growth Fund (Service Class)⁴
MML Managed Bond Sub-Account (Initial Class)		MML Managed Bond Fund (Initial Class)⁴
MML Managed Bond Sub-Account (Service Class)		MML Managed Bond Fund (Service Class)⁴
MML Managed Volatility Sub-Account (Initial Class)		MML Managed Volatility Fund (Initial Class)⁴
MML Managed Volatility Sub-Account (Service Class)		MML Managed Volatility Fund (Service Class)⁴
MML Mid Cap Growth Sub-Account (Initial Class)		MML Mid Cap Growth Fund (Initial Class)⁴
MML Mid Cap Growth Sub-Account (Service Class)		MML Mid Cap Growth Fund (Service Class)⁴
MML Mid Cap Value Sub-Account (Initial Class)		MML Mid Cap Value Fund (Initial Class)⁴
MML Mid Cap Value Sub-Account (Service Class)		MML Mid Cap Value Fund (Service Class)⁴
MML Moderate Allocation Sub-Account (Initial Class)		MML Moderate Allocation Fund (Initial Class)⁴
MML Moderate Allocation Sub-Account (Service Class)		MML Moderate Allocation Fund (Service Class)⁴

F-55

Notes To Financial Statements (Continued)

MML Short-Duration Bond Sub-Account		MML Short-Duration Bond Fund⁴
MML Small Cap Equity Sub-Account (Initial Class)		MML Small Cap Equity Fund (Initial Class)⁴
MML Small Cap Equity Sub-Account (Service Class)		MML Small Cap Equity Fund (Service Class)⁴
MML Small Cap Growth Equity Sub-Account (Initial Class)		MML Small Cap Growth Equity Fund (Initial Class)⁴
MML Small Cap Growth Equity Sub-Account (Service Class)		MML Small Cap Growth Equity Fund (Service Class)⁴
MML Small Company Value Sub-Account		MML Small Company Value Fund⁴
MML Small/Mid Cap Value Sub-Account (Initial Class)		MML Small/Mid Cap Value Fund (Initial Class)⁴
MML Small/Mid Cap Value Sub-Account (Service Class)		MML Small/Mid Cap Value Fund (Service Class)⁴
MML Special Situations Sub-Account (Service Class I)		MML Special Situations Fund (Service Class I)^{4, 21}
MML Strategic Emerging Markets Sub-Account (Service Class I)		MML Strategic Emerging Markets Fund (Service Class I)⁴
MML Sustainable Equity Sub-Account (Initial Class)¹⁷		MML Sustainable Equity Fund (Initial Class)^{4, 17}
MML Sustainable Equity Sub-Account (Service Class)¹⁸		MML Sustainable Equity Fund (Service Class)^{4, 18}
MML Total Return Bond Sub-Account		MML Total Return Bond Fund⁴
MML U.S. Government Money Market Sub-Account		MML U.S. Government Money Market Fund⁴
PIMCO CommodityRealReturn® Strategy Sub-Account		PIMCO CommodityRealReturn® Strategy Portfolio⁵
PIMCO Income Sub-Account²⁰		PIMCO Income Fund^{5, 20}
VY® CBRE Global Real Estate Sub-Account¹⁹		VY® CBRE Global Real Estate Fund^{2, 19}


		In addition to the ninety-nine sub-accounts, some contract owners may also allocate funds to the Fixed Interest Account (“FIA”), which is part of Hextone’s general investment account (“General Account”). Because of exemptive and exclusionary provisions in the securities law, interests in the FIA are not registered under the Securities Act of 1933, and the General Account and the FIA are not registered as an investment company under the 1940 Act.

		¹Fidelity Management & Research Company LLC is the investment adviser to this Portfolio.
		²Voya Investments, LLC is the investment adviser to this Portfolio.
		³Invesco Advisers, Inc. is the investment adviser to this Fund.
		⁴MML Investment Advisers, LLC is the investment adviser to this Fund.
		⁵Pacific Investment Management Company LLC is the investment adviser to this Portfolio.
		⁶Delaware Management Company, a series of Macquarie Investment Management Business Trust, is the investment adviser to this Portfolio.
		⁷BlackRock Advisors, LLC is the investment adviser for this Fund.
		⁸Prior to April 30, 2021, known as Invesco Oppenheimer V.I. Capital Appreciation Sub-Account/Fund.
		⁹Prior to April 30, 2021, known as Invesco Oppenheimer V.I. Conservative Balanced Sub-Account/Fund.
		¹⁰After the close of business on April 29, 2022, Invesco V.I. Core Plus Bond Fund acquired all the net assets of Invesco V.I. Core Bond Fund pursuant to a plan of reorganization approved by the Board of Trustees of the Invesco V.I. Core Plus Bond Fund on December 1, 2021 and by the shareholders of the Invesco V.I. Core Bond Fund on March 31, 2022. The acquisition was accomplished by a tax-free exchange as of the close of business on April 29, 2022. Shares of Invesco V.I. Core Bond Fund were exchanged for the like class of shares of Invesco V.I. Core Plus Bond Fund, based on the relative net asset value of the two funds which resulted in Invesco V.I. Core Bond Fund receiving 1.15816327 shares of Invesco V.I. Core Plus Bond Fund in exchange of 1 share of Invesco V.I Core Bond Fund. As a result of the underlying fund merger, the subaccount name changed from Invesco V.I. Core Bond to Invesco V.I. Core Plus Bond.
		¹¹Prior to April 30, 2021, known as Invesco Oppenheimer V.I. Discovery Mid Cap Growth Sub-Account/Fund.
		¹²Prior to April 30, 2021, known as Invesco Oppenheimer V.I. Global Sub-Account/Fund.
		¹³Prior to April 30, 2021, known as Invesco Oppenheimer V.I. Global Strategic Income Sub-Account/Fund.
		¹⁴Prior to April 30, 2021, known as Invesco Oppenheimer V.I. Main Street Sub-Account/Fund®.
		¹⁵Prior to April 30, 2021, known as Invesco Oppenheimer V.I. Government Money Sub-Account/Fund.
		¹⁶Prior to July 1, 2021, known as Delaware Ivy VIP Asset Strategy Sub-Account/Fund.
		¹⁷Prior to April 29, 2022, known as MML Growth & Income Sub-Account/Fund (Initial Class).
		¹⁸Prior to April 29, 2022, known as MML Growth & Income Sub-Account/Fund (Service Class).
		¹⁹Prior to May 1, 2022, known as VY® Clarion Global Real Estate Sub-Account/Fund.
		²⁰This Sub-Account/Fund became available to the Separate Account as an investment option on February 28, 2022.
		²¹Effective November 4, 2022, this Sub-Account liquidated and any contract value in the Sub-Account after the close of the New York Stock Exchange on November 4, 2022 was automatically transferred to the MML U.S. Government Money Market Sub-Account.
		²²This Sub-Account/Fund became available to the Separate Account as an investment option on April 29, 2022.
		²³Janus Henderson Investors US, LLC is the investment adviser to this Fund.

F-56

Notes To Financial Statements (Continued)

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Separate Account in preparation of the financial statements in conformity with generally accepted accounting principles. Separate Account Hextone Variable Annuity Separate Account 4 follows the accounting and reporting guidance in FASB Accounting Standards Codification 946.

Investment Valuation

Investments in the underlying funds held by each sub-account are carried at fair value which is based on the closing net asset value of each of the respective underlying funds, which value their investment securities at fair value.

Accounting for Investments

Investment transactions are accounted for on a trade-date basis and identified cost is the basis followed in determining the cost of investments sold for financial statement purposes. Dividend income and gains from realized gain distributions are recorded on the ex-distribution date and they are generally reinvested in the underlying investment funds.

Federal Income Taxes

Hextone is taxed under federal law as a life insurance company under the provisions of the 1986 Internal Revenue Code, as amended. Under existing federal law, no taxes are payable on net investment income and net realized capital gains attributable to contracts, which depend on the Separate Account’s investment performance. Accordingly, no provision for federal income tax has been made. Hextone may, however, make such a charge in the future if an unanticipated change of current law results in a tax liability attributable to the Separate Account.

Contract Charges

See Note 8B for charges associated with the contracts.

Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities 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.

Loans

If the certificate is a tax-sheltered annuity (“TSA”), the participants may be able to take a loan under their certificate. All such loans must conform to the requirements of the Internal Revenue Code. There are limitations on the amount of the loan the participants can take, and there is a required loan repayment schedule. When a loan is made, the Separate Account transfers the amount of the loan to Hextone, thereby decreasing both the investments and net assets of the Separate Account by an equal amount. The contract owner is charged interest on the outstanding loan amount based on the interest rate then in effect.

F-57

Notes To Financial Statements (Continued)

Annuitant Mortality Fluctuation

The Separate Account contributes to an Annuitant Mortality Fluctuation Fund (AMFF) reserve maintained by Hextone as required by regulatory authorities to provide for mortality losses incurred. The AMFF reserve is adjusted quarterly for mortality losses and gains and its proportionate share of changes in value. Transfers to or from Hextone are then made quarterly to adjust the AMFF reserve which is held in the Separate Account. Net transfers from the Separate Account to Hextone totaled $1,031,370 and $1,453,935 for the years ended December 31, 2022 and 2021, respectively. The AMFF reserve is subject to a maximum of 3% of the Separate Account’s annuity reserves. Any mortality losses in excess of this reserve will be borne by Hextone. The AMFF reserve is not available to owners of the contracts except to the extent necessary to cover mortality losses under the contracts.

Annuity Reserves

Annuity reserves are developed by using accepted actuarial methods and are computed using the 1994 MGDB table, except for the Hextone RetireEase Select SM Segment which uses the Annuity 2000 table.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Separate Account defines fair value 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. In determining fair value, the Separate Account generally uses the market approach as the valuation technique due to the nature of the mutual fund investments offered in the Separate Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs. Investments in mutual funds are valued at the mutual fund’s closing net asset value per share on the day of valuation.

Valuation Inputs: Various inputs are used to determine the value of the Separate Account’s investments. These inputs are summarized in the three broad levels listed below:

•

Level 1 – quoted prices in active markets for identical securities

•

Level 2 – observable inputs other than Level 1 quoted prices (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds and credit risk)

•

Level 3 – unobservable inputs

The investments of the Separate Account are measured at fair value. All the investments are categorized as Level 1 as of December 31, 2022. There have been no transfers between levels for the year ended December 31, 2022.

RELATED PARTY TRANSACTIONS

Sales Agreements

The contracts currently being offered are sold by both registered representatives of MML Investors Services, LLC (“MMLIS”), a subsidiary of Hextone, and by registered representatives of other broker-dealers who have entered into distribution agreements with MML Strategic Distributors, LLC (“MSD”), a subsidiary of Hextone. Pursuant to separate underwriting agreements with Hextone, on its own behalf and on behalf of the Separate Account, MMLIS serves as principal underwriter of the contracts sold by its registered representatives and MSD serves as principal underwriter of the contracts sold by registered representatives of other broker-dealers who have entered into distribution agreements with MSD.

Both MMLIS and MSD are registered with the Securities and Exchange Commission (the “SEC”) as broker-dealers under the Securities and Exchange Act of 1934 and are members of the Financial Industry

F-58

Notes To Financial Statements (Continued)

Regulatory Authority (“FINRA”). Commissions for sales of contracts by MMLIS registered representatives are paid on behalf of MMLIS to its registered representatives. Commissions for sales of contracts by registered representatives of other broker-dealers are paid on behalf of MSD to those broker-dealers. MMLIS and MSD also receive compensation for their actions as principal underwriters of the contracts.

Receivable from/Payable to Hextone

Certain fees such as mortality and expense risk fees are charges paid between the General Account and Separate Account. The General Account is not registered as an investment company under the 1940 Act.

F-59

Notes To Financial Statements (Continued)

PURCHASES AND SALES OF INVESTMENTS

The cost of purchases and proceeds from sales of investments for each of the years or periods in the two-year period ended December 31, 2022 were as follows:


	BlackRock		Delaware										Fidelity®		Invesco
	60/40 Target		Ivy VIP		Fidelity®		Fidelity®		Fidelity®		Fidelity®		VIP		Oppenheimer V.I.
	Allocation		Asset		VIP		VIP		VIP		VIP		Strategic		International
	ETF V.I.		Strategy		Contrafund®		Contrafund®		Healthcare		Real Estate		Income		Growth
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Class III)		(Class II)		(Initial Class)		(Service Class 2)								(Series I)
2022
Cost of purchases	$	2,554,902	$	1,954,988	$	19,530,330	$	26,001,389	$	466,103	$	196,967	$	222,268	$	5,484,471
Proceeds from sales		(1,532,645)		(1,398,464)		(27,667,404)		(28,841,489)		(20,092)		(12,874)		(11,301)		(2,122,186)

	Invesco Oppenheimer V.I. International Growth		Invesco V.I. Capital Appreciation		Invesco V.I. Capital Appreciation		Invesco V.I. Conservative Balanced		Invesco V.I. Conservative Balanced		Invesco V.I. Core Plus Bond		Invesco V.I. Discovery Mid Cap Growth		Invesco V.I. Discovery Mid Cap Growth
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Series II)		(Series I)		(Series II)		(Series I)		(Series II)				(Series I)		(Series II)
2022 (Continued)
Cost of purchases	$	6,848,332	$	51,714,769	$	3,351,030	$	568,390	$	4,349	$	61,719	$	33,352,710	$	10,410,476
Proceeds from sales		(3,604,668)		(18,815,019)		(2,414,713)		(551,694)		(1,719)		(108,656)		(15,136,294)		(3,456,290)


	Invesco V.I. Diversified Dividend		Invesco V.I. Diversified Dividend		Invesco V.I. Global		Invesco V.I. Global		Invesco V.I. Global Strategic Income		Invesco V.I. Global Strategic Income		Invesco V.I. Health Care		Invesco V.I. Health Care
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Series I)		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)
2022 (Continued)
Cost of purchases	$	1,070,403	$	2,427,901	$	36,265,118	$	14,735,294	$	1,462,361	$	1,661,279	$	1,724,667	$	1,973,266
Proceeds from sales		(635,538)		(2,625,659)		(18,294,943)		(8,573,412)		(22,958,183)		(9,385,500)		(1,333,797)		(2,072,156)

	Invesco V.I. Main Street		Invesco V.I. Main Street		Invesco V.I. Technology		Invesco V.I. Technology		Invesco V.I. U.S. Government Money		Janus Henderson Global Technology and Innovation		MML Aggressive Allocation		MML Aggressive Allocation
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Series I)		(Series II)		(Series I)		(Series II)						(Initial Class)		(Service Class)
2022 (Continued)
Cost of purchases	$	11,880,801	$	9,213,436	$	2,972,065	$	3,686,465	$	1,799,306	$	308,876	$	6,616,890	$	15,694,788
Proceeds from sales		(3,231,854)		(3,069,684)		(1,086,351)		(1,695,172)		(911,914)		(7,182)		(6,372,038)		(14,242,336)

F-60

Notes To Financial Statements (Continued)

PURCHASES AND SALES OF INVESTMENTS (Continued)

	MML American Funds Core Allocation		MML American Funds Growth		MML American Funds International		MML Balanced Allocation		MML Balanced Allocation		MML Blend		MML Blend		MML Blue Chip Growth
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
							(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)
2022 (Continued)
Cost of purchases	$	89,150,126	$	67,760,877	$	11,432,359	$	9,445,043	$	43,519,050	$	3,384,137	$	20,536,198	$	10,250,701
Proceeds from sales		(125,972,442)		(29,766,249)		(45,881,582)		(11,530,443)		(54,716,996)		(8,178,825)		(22,781,897)		(6,428,670)


	MML Blue Chip Growth		MML Conservative Allocation		MML Conservative Allocation		MML Dynamic Bond		MML Equity		MML Equity		MML Equity Income		MML Equity Income
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Service Class)		(Initial Class)		(Service Class)		(Service Class I)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
2022 (Continued)
Cost of purchases	$	37,056,942	$	12,533,107	$	54,734,471	$	2,054,803	$	4,223,062	$	15,041,650	$	20,682,784	$	19,972,536
Proceeds from sales		(16,962,130)		(11,026,002)		(60,085,271)		(1,337,379)		(3,007,175)		(16,216,399)		(30,299,903)		(14,179,879)


	MML		MML		MML		MML		MML						MML
	Equity		Equity		Equity		Equity		Focused		MML		MML		Fundamental
	Index		Index		Momentum		Rotation		Equity		Foreign		Foreign		Equity
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Class I)		(Service Class I)		(Service Class I)		(Service Class I)				(Initial Class)		(Service Class)
2022 (Continued)
Cost of purchases	$	3,242,008	$	3,436,157	$	204,346	$	394,392	$	6,176,006	$	15,634,948	$	3,384,898	$	6,445,554
Proceeds from sales		(4,539,481)		(9,390,034)		(2,082,896)		(440,874)		(3,812,436)		(16,120,202)		(892,376)		(3,169,846)


	MML								MML		MML				MML
	Fundamental		MML		MML		MML		Growth		Growth		MML		Income
	Value		Global		Global		Global		Allocation		Allocation		High Yield		& Growth
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
			(Class I)		(Class II)		(Service Class I)		(Initial Class)		(Service Class)				(Initial Class)
2022 (Continued)
Cost of purchases	$	9,587,638	$	3,032,074	$	2,793,891	$	15,971,617	$	46,352,243	$	104,254,279	$	6,534,691	$	3,482,994
Proceeds from sales		(4,509,080)		(430,278)		(323,025)		(2,149,574)		(39,876,876)		(83,485,586)		(8,478,491)		(2,983,621)

F-61

Notes To Financial Statements (Continued)

PURCHASES AND SALES OF INVESTMENTS (Continued)

			MML		MML
	MML		Inflation-		Inflation-		MML		MML		MML		MML		MML
	Income		Protected		Protected		International		iShares 60/40		iShares 80/20		Large Cap		Large Cap
	& Growth		and Income		and Income		Equity		Allocation		Allocation		Growth		Growth
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Service Class)		(Initial Class)		(Service Class)								(Initial Class)		(Service Class)
2022 (Continued)
Cost of purchases	$	6,170,988	$	12,921,559	$	13,137,631	$	2,360,905	$	6,124,696	$	21,027,372	$	1,653,896	$	3,773,297
Proceeds from sales		(5,339,118)		(25,284,905)		(11,080,559)		(1,220,916)		(687,112)		(1,138,800)		(2,085,471)		(2,489,083)


	MML Managed Bond		MML Managed Bond		MML Managed Volatility		MML Managed Volatility		MML Mid Cap Growth		MML Mid Cap Growth		MML Mid Cap Value		MML Mid Cap Value
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
2022 (Continued)
Cost of purchases	$	6,084,626	$	14,274,715	$	1,114,622	$	1,577,667	$	19,859,720	$	33,163,456	$	30,331,014	$	19,179,135
Proceeds from sales		(18,263,237)		(42,351,971)		(17,529,263)		(5,151,220)		(8,512,086)		(12,452,152)		(27,522,781)		(9,903,303)


	MML Moderate Allocation		MML Moderate Allocation		MML Short-Duration Bond		MML Small Cap Equity		MML Small Cap Equity		MML Small Cap Growth Equity		MML Small Cap Growth Equity		MML Small Company Value
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Initial Class)		(Service Class)				(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
2022 (Continued)
Cost of purchases	$	25,447,152	$	159,930,784	$	7,020,660	$	3,259,130	$	4,921,625	$	24,985,559	$	9,904,791	$	15,923,749
Proceeds from sales		(26,004,262)		(221,794,394)		(8,076,198)		(3,501,051)		(3,616,982)		(12,597,778)		(4,310,658)		(3,460,791)


		MML Small/Mid Cap Value		MML Small/Mid Cap Value		MML Special Situations		MML Strategic Emerging Markets		MML Sustainable Equity		MML Sustainable Equity		MML Total Return Bond		MML U.S. Government Money Market
		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
		(Initial Class)		(Service Class)		(Service Class I)		(Service Class I)		(Initial Class)		(Service Class)
2022 (Continued)
Cost of purchases	$	24,794,452	$	9,057,098	$	84,719	$	5,875,571		10,274,803		9,959,031		3,866,228		96,739,029
Proceeds from sales		(13,733,662)		(3,540,318)		(803,058)		(1,824,764)		(7,928,875)		(6,105,886)		(8,045,100)		(56,206,203)

F-62

Notes To Financial Statements (Continued)

PURCHASES AND SALES OF INVESTMENTS (Continued)

PIMCO

VY®

Commodity

CBRE

RealReturn®

PIMCO

Global

Strategy

Income

Real Estate

Sub-Account

2022 (Continued)

Cost of purchases

5,833,550

854,640

1,511,554

Proceeds from sales

(3,883,899)

(8,450)

(1,794,455)

F-63

Notes To Financial Statements (Continued)

PURCHASES AND SALES OF INVESTMENTS (Continued)


	BlackRock 60/40 Target Allocation ETF V.I.		Delaware Ivy VIP Asset Strategy		Fidelity® VIP Contrafund®		Fidelity® VIP Contrafund®		Invesco Oppenheimer V.I. International Growth		Invesco Oppenheimer V.I. International Growth		Invesco V.I. Capital Appreciation		Invesco V.I. Capital Appreciation
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Class III)				(Initial Class)		(Service Class 2)		(Series II)		(Series I)		(Series II)		(Series I)
2021
Cost of purchases	$	10,271,456	$	2,337,178	$	35,814,155	$	54,790,090	$	3,834,229	$	3,349,344	$	1,111,258	$	13,197,683
Proceeds from sales		(579,305)		(2,035,650)		(52,581,503)		(34,432,830)		(3,866,414)		(6,951,153)		(2,824,975)		(37,574,421)


	Invesco V.I. Conservative Balanced		Invesco V.I. Conservative Balanced		Invesco V.I. Core Bond		Invesco V.I. Discovery Mid Cap Growth		Invesco V.I. Discovery Mid Cap Growth		Invesco V.I. Diversified Dividend		Invesco V.I. Diversified Dividend		Invesco V.I. Global
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Series II)		(Series I)				(Series II)		(Series I)		(Series I)		(Series II)		(Series II)
2021 (Continued)
Cost of purchases	$	3,660	$	562,974	$	127,033	$	9,517,987	$	15,068,854	$	693,835	$	802,653	$	7,790,725
Proceeds from sales		(27,310)		(893,264)		(217,803)		(5,101,156)		(23,592,430)		(2,982,808)		(2,052,332)		(13,116,231)


			Invesco V.I.		Invesco V.I.
	Invesco V.I.		Global Strategic		Global Strategic		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.
	Global		Income		Income		Health Care		Health Care		Main Street		Main Street		Technology
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Series I)		(Series II)		(Series I)		(Series I)		(Series II)		(Series II)		(Series I)		(Series I)
2021 (Continued)
Cost of purchases	$	14,565,193	$	9,423,614	$	25,720,456	$	1,692,100	$	1,888,644	$	3,999,973	$	2,906,100	$	1,593,935
Proceeds from sales		(32,110,098)		(8,661,781)		(24,624,758)		(1,722,900)		(2,644,411)		(3,160,976)		(4,980,873)		(1,623,543)


	Invesco V.I. Technology		Invesco V.I. U.S. Government Money		MML Aggressive Allocation		MML Aggressive Allocation		MML American Funds Core Allocation		MML American Funds Growth		MML American Funds International		MML Balanced Allocation
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Series II)				(Initial Class)		(Service Class)								(Initial Class)
2021 (Continued)
Cost of purchases	$	2,544,777	$	862,040	$	3,894,860	$	11,258,621	$	56,654,367	$	41,897,495	$	9,422,167	$	9,194,151
Proceeds from sales		(3,337,928)		(1,896,820)		(4,726,353)		(19,572,868)		(146,103,637)		(46,773,974)		(8,711,241)		(17,607,591)

F-64

Notes To Financial Statements (Continued)

PURCHASES AND SALES OF INVESTMENTS (Continued)

MML

Balanced

MML

Blue Chip

Conservative

Dynamic

Allocation

Blend

Growth

Allocation

Bond

Sub-Account

(Service Class)

(Initial Class)

(Service Class)

(Initial Class)

(Service Class)

(Initial Class)

(Service Class)

(Service Class I)

2021 (Continued)

Cost of purchases

31,995,982

22,362,686

77,713,326

8,665,815

33,821,649

12,519,020

46,095,745

2,844,616

Proceeds from sales

(61,857,135)

(9,268,259)

(16,659,759)

(10,121,084)

(20,141,575)

(25,822,287)

(83,382,472)

(1,240,336)

MML

Equity

Equity Income

Index

Momentum

Rotation

Sub-Account

(Initial Class)

(Service Class)

(Initial Class)

(Service Class)

(Class I)

(Service Class I)

2021 (Continued)

Cost of purchases

1,879,089

7,493,309

10,452,792

8,069,967

3,684,272

3,561,811

933,323

947,373

Proceeds from sales

(3,795,463)

(22,118,736)

(34,331,845)

(18,283,528)

(5,383,915)

(10,454,822)

(564,869)

(340,040)

MML

Focused

MML

Fundamental

MML

Equity

Foreign

Equity

Value

Global

Sub-Account

(Initial Class)

(Service Class)

(Class I)

(Service Class I)

(Class II)

2021 (Continued)

Cost of purchases

3,460,285

8,670,638

561,335

4,868,570

4,611,152

554,744

3,484,083

553,497

Proceeds from sales

(3,022,289)

(23,078,478)

(1,652,596)

(3,109,374)

(3,125,224)

(935,262)

(3,223,704)

(376,195)

MML

Inflation-

Growth

MML

Income

Protected

& Income

Allocation

High Yield

& Growth

and Income

Sub-Account

(Initial Class)

(Service Class)

(Initial Class)

(Service Class)

(Initial Class)

(Service Class)

(Initial Class)

2021 (Continued)

Cost of purchases

5,116,796

9,240,565

30,338,548

56,662,800

10,130,531

711,332

2,513,538

22,498,543

Proceeds from sales

(15,334,154)

(7,616,142)

(78,848,862)

(140,005,620)

(4,198,652)

(3,927,718)

(4,228,254)

(23,591,523)

F-65

Notes To Financial Statements (Continued)

PURCHASES AND SALES OF INVESTMENTS (Continued)


	MML
	Inflation-		MML		MML		MML		MML		MML		MML		MML
	Protected		International		Large Cap		Large Cap		Managed		Managed		Managed		Managed
	and Income		Equity		Growth		Growth		Bond		Bond		Volatility		Volatility
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Service Class)				(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
2021 (Continued)
Cost of purchases	$	16,193,051	$	1,861,211	$	1,999,945	$	5,674,982	$	16,817,263	$	42,903,661	$	5,777,813	$	1,300,534
Proceeds from sales		(8,228,037)		(1,143,541)		(3,106,761)		(3,512,946)		(19,223,089)		(44,801,843)		(17,552,228)		(4,870,897)


	MML Mid Cap Growth		MML Mid Cap Growth		MML Mid Cap Value		MML Mid Cap Value		MML Moderate Allocation		MML Moderate Allocation		MML Short-Duration Bond		MML Small Cap Equity
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)				(Initial Class)
2021 (Continued)
Cost of purchases	$	18,693,511	$	29,777,246	$	8,432,487	$	4,435,611	$	16,038,358	$	89,954,019	$	7,558,324	$	2,783,335
Proceeds from sales		(16,762,496)		(18,705,381)		(32,960,556)		(9,257,145)		(50,913,319)		(302,224,803)		(17,395,874)		(4,916,076)


	MML Small Cap Equity		MML Small Cap Growth Equity		MML Small Cap Growth Equity		MML Small Company Value		MML Small/Mid Cap Value		MML Small/Mid Cap Value		MML Special Situations		MML Strategic Emerging Markets
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
	(Service Class)		(Initial Class)		(Service Class)				(Initial Class)		(Service Class)		(Service Class I)		(Service Class I)
2021 (Continued)
Cost of purchases	$	6,186,809	$	21,373,989	$	9,724,813	$	5,479,756	$	2,943,580	$	6,836,384	$	592,440	$	6,054,097
Proceeds from sales		(5,020,458)		(17,426,900)		(4,881,908)		(5,492,852)		(31,915,931)		(6,713,262)		(214,045)		(2,296,766)


		MML Total Return Bond Sub-Account		MML U.S. Government Money Market Sub-Account		PIMCO Commodity RealReturn® Strategy Sub-Account		VY® Clarion Global Real Estate Sub-Account
2021 (Continued)
Cost of purchases	$	12,021,445	$	39,643,123	$	1,526,209	$	813,627
Proceeds from sales		(9,050,631)		(92,579,635)		(2,593,173)		(3,251,542)

F-66

Notes To Financial Statements (Continued)

NET INCREASE (DECREASE) IN OUTSTANDING UNITS

The changes in outstanding units for each of the years or periods in the two-year period ended December 31, 2022 were as follows:

	BlackRock 60/40 Target Allocation ETF V.I.		Delaware Ivy VIP Asset Strategy		Fidelity® VIP Contrafund®		Fidelity® VIP Contrafund®		Fidelity® VIP Healthcare		Fidelity® VIP Real Estate		Fidelity® VIP Strategic Income		Invesco Oppenheimer V.I. International Growth
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022	(Class III)		(Class II)		(Initial Class)		(Service Class 2)								(Series I)
Units purchased		152,856		73,114		34,154		686,645		44,996		18,312		23,316		10,582
Units withdrawn		(98,603)		(74,617)		(440,309)		(734,089)		(565)		(447)		(221)		(64,507)
Units transferred between Sub-Accounts and to/from the General Account		6,886		(6,556)		95,731		(55,817)		(711)		618		(939)		41,614
Net increase (decrease)		61,139		(8,059)		(310,424)		(103,261)		43,720		18,483		22,156		(12,311)

	Invesco Oppenheimer V.I. International Growth		Invesco V.I. Capital Appreciation		Invesco V.I. Capital Appreciation		Invesco V.I. Conservative Balanced		Invesco V.I. Conservative Balanced		Invesco V.I. Core Plus Bond		Invesco V.I. Discovery Mid Cap Growth		Invesco V.I. Discovery Mid Cap Growth
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022 (Continued)	(Series II)		(Series I)		(Series II)		(Series I)		(Series II)				(Series I)		(Series II)
Units purchased		93,064		18,373		3,541		677		-		1		18,077		124,521
Units withdrawn		(144,381)		(442,453)		(45,930)		(23,495)		(72)		(6,068)		(254,499)		(121,461)
Units transferred between Sub-Accounts and to/from the General Account		71,350		214,029		(18,303)		(983)		-		-		169,868		3,169
Net increase (decrease)		20,033		(210,051)		(60,692)		(23,801)		(72)		(6,067)		(66,554)		6,229


	Invesco V.I. Diversified Dividend		Invesco V.I. Diversified Dividend		Invesco V.I. Global		Invesco V.I. Global		Invesco V.I. Global Strategic Income		Invesco V.I. Global Strategic Income		Invesco V.I. Health Care		Invesco V.I. Health Care
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022 (Continued)	(Series I)		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)		(Series I)		(Series II)
Units purchased		6,148		15,727		30,143		180,669		57,854		118,867		4,307		4,249
Units withdrawn		(26,249)		(152,663)		(426,707)		(296,147)		(984,562)		(480,763)		(26,210)		(42,235)
Units transferred between Sub-Accounts and to/from the General Account		6,676		24,658		335,751		50,656		(393,513)		(173,900)		1,163		487
Net increase (decrease)		(13,425)		(112,278)		(60,813)		(64,822)		(1,320,221)		(535,796)		(20,740)		(37,499)

	Invesco V.I. Main Street		Invesco V.I. Main Street		Invesco V.I. Technology		Invesco V.I. Technology		Invesco V.I. U.S. Government Money		Janus Henderson Global Technology and Innovation		MML Aggressive Allocation		MML Aggressive Allocation
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022 (Continued)	(Series I)		(Series II)		(Series I)		(Series II)						(Initial Class)		(Service Class)
Units purchased		5,152		50,874		8,978		1,801		11,506		31,947		23,284		129,010
Units withdrawn		(69,988)		(126,294)		(23,639)		(30,404)		(62,143)		(71)		(192,927)		(600,472)
Units transferred between Sub-Accounts and to/from the General Account		(12,632)		(3,300)		7,982		(3,904)		136,254		478		2,321		(39,388)
Net increase (decrease)		(77,468)		(78,720)		(6,679)		(32,507)		85,617		32,354		(167,322)		(510,850)

F-67

Notes To Financial Statements (Continued)

NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)

	MML American Funds Core Allocation		MML American Funds Growth		MML American Funds International		MML Balanced Allocation		MML Balanced Allocation		MML Blend		MML Blend		MML Blue Chip Growth
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022 (Continued)							(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)
Units purchased		1,114,004		715,509		127,178		29,189		846,081		14,990		945,670		7,673
Units withdrawn		(5,602,776)		(679,293)		(1,348,898)		(462,914)		(2,937,773)		(204,107)		(1,038,676)		(87,727)
Units transferred between Sub-Accounts and to/from the General Account		(153,891)		63,034		(2,353,997)		(23,163)		(197,548)		(12,556)		(32,115)		10,704
Net increase (decrease)		(4,642,663)		99,250		(3,575,717)		(456,888)		(2,289,240)		(201,673)		(125,121)		(69,350)


	MML		MML		MML		MML
	Blue Chip		Conservative		Conservative		Dynamic		MML		MML		MML		MML
	Growth		Allocation		Allocation		Bond		Equity		Equity		Equity Income		Equity Income
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022 (Continued)	(Service Class)		(Initial Class)		(Service Class)		(Service Class I)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
Units purchased		548,850		38,166		980,597		164,011		10,151		177,319		26,269		348,570
Units withdrawn		(503,617)		(447,243)		(2,914,844)		(119,337)		(72,894)		(573,117)		(488,623)		(427,388)
Units transferred between Sub-Accounts and to/from the General Account		(21,438)		126,959		(9,780)		1,654		14,150		(30,849)		(371,358)		(33,877)
Net increase (decrease)		23,795		(282,118)		(1,944,027)		46,328		(48,593)		(426,647)		(833,712)		(112,695)


	MML		MML		MML		MML		MML						MML
	Equity		Equity		Equity		Equity		Focused		MML		MML		Fundamental
	Index		Index		Momentum		Rotation		Equity		Foreign		Foreign		Equity
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022 (Continued)	(Class I)		(Service Class I)		(Service Class I)		(Service Class I)				(Initial Class)		(Service Class)
Units purchased		11,884		3,458		11,626		12,779		184,710		34,703		19,766		134,427
Units withdrawn		(92,681)		(165,521)		(104,587)		(20,346)		(135,861)		(769,869)		(56,860)		(125,640)
Units transferred between Sub-Accounts and to/from the General Account		(7,610)		(47,195)		(3,501)		(92)		21,419		218,756		169,222		11,135
Net increase (decrease)		(88,407)		(209,258)		(96,462)		(7,659)		70,268		(516,410)		132,128		19,922


	MML								MML		MML				MML
	Fundamental		MML		MML		MML		Growth		Growth		MML		Income
	Value		Global		Global		Global		Allocation		Allocation		High Yield		& Growth
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022 (Continued)			(Class I)		(Class II)		(Service Class I)		(Initial Class)		(Service Class)				(Initial Class)
Units purchased		257,437		1,165		3,590		183,965		143,855		922,206		206,954		8,622
Units withdrawn		(228,858)		(14,931)		(13,729)		(90,431)		(1,377,086)		(3,757,620)		(484,610)		(56,409)
Units transferred between Sub-Accounts and to/from the General Account		68,965		10,873		9,276		125,904		(290,695)		176,942		(13,060)		(18,186)
Net increase (decrease)		97,544		(2,893)		(863)		219,438		(1,523,926)		(2,658,472)		(290,716)		(65,973)

F-68

Notes To Financial Statements (Continued)

NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)

			MML		MML
	MML		Inflation-		Inflation-		MML		MML		MML		MML		MML
	Income		Protected		Protected		International		iShares 60/40		iShares 80/20		Large Cap		Large Cap
	& Growth		and Income		and Income		Equity		Allocation		Allocation		Growth		Growth
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022 (Continued)	(Service Class)		(Initial Class)		(Service Class)								(Initial Class)		(Service Class)
Units purchased		134,010		52,107		568,183		143,411		576,599		2,122,312		4,996		98,725
Units withdrawn		(193,861)		(1,024,030)		(647,479)		(95,824)		(5,638)		(19,543)		(38,376)		(100,898)
Units transferred between Sub-Accounts and to/from the General Account		(27,744)		(484,883)		(17,061)		32,409		-		110		(9,148)		(2,947)
Net increase (decrease)		(87,595)		(1,456,806)		(96,357)		79,996		570,961		2,102,879		(42,528)		(5,120)


	MML Managed Bond		MML Managed Bond		MML Managed Volatility		MML Managed Volatility		MML Mid Cap Growth		MML Mid Cap Growth		MML Mid Cap Value		MML Mid Cap Value
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022 (Continued)	(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
Units purchased		41,586		434,662		23,371		104,191		8,802		248,065		16,627		281,466
Units withdrawn		(780,898)		(2,443,028)		(503,517)		(237,883)		(111,618)		(412,031)		(305,889)		(311,590)
Units transferred between Sub-Accounts and to/from the General Account		(206,887)		(367,493)		(392,433)		(57,577)		(7,543)		17,663		(293,398)		(12,265)
Net increase (decrease)		(946,199)		(2,375,859)		(872,579)		(191,269)		(110,359)		(146,303)		(582,660)		(42,389)


	MML Moderate Allocation		MML Moderate Allocation		MML Short-Duration Bond		MML Small Cap Equity		MML Small Cap Equity		MML Small Cap Growth Equity		MML Small Cap Growth Equity		MML Small Company Value
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2022 (Continued)	(Initial Class)		(Service Class)				(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
Units purchased		41,762		1,299,748		206,961		3,803		59,648		40,428		70,240		77,190
Units withdrawn		(1,110,602)		(11,029,528)		(687,131)		(61,546)		(135,008)		(194,640)		(131,357)		(131,363)
Units transferred between Sub-Accounts and to/from the General Account		21,347		(505,738)		322,828		(16,364)		18,204		35,390		(8,574)		11,056
Net increase (decrease)		(1,047,493)		(10,235,518)		(157,342)		(74,107)		(57,156)		(118,822)		(69,691)		(43,117)

								MML
		MML		MML		MML		Strategic		MML		MML			MML U.S.
		Small/Mid Cap		Small/Mid Cap		Special		Emerging		Sustainable		Sustainable		MML Total	Government
		Value		Value		Situations		Markets		Equity		Equity		Return Bond	Money Market
		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account	Sub-Account
2022 (Continued)		(Initial Class)		(Service Class)		(Service Class I)		(Service Class I)		(Initial Class)		(Service Class)
Units purchased		17,619		105,501		4,075		109,057		11,173		101,663		281,935		4,210,643
Units withdrawn		(303,018)		(142,035)		(61,180)		(109,641)		(147,384)		(223,387)		(570,562)		(5,021,648)
Units transferred between Sub-Accounts and to/from the General Account		(47,784)		(2,530)		-		(12,719)		(25,354)		(11,107)		(97,868)		5,196,805
Net increase (decrease)		(333,183)		(39,064)		(57,105)		(13,303)		(161,565)		(132,831)		(386,495)		4,385,800

F-69

Notes To Financial Statements (Continued)

NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)

	PIMCO				VY®
	Commodity				CBRE
	RealReturn®		PIMCO		Global
	Strategy		Income		Real Estate
	Sub-Account		Sub-Account		Sub-Account
2022 (Continued)
Units purchased		19,908		90,359		8,221
Units withdrawn		(190,221)		(261)		(74,763)
Units transferred between Sub-Accounts and to/from the General Account		162,183		(461)		4,924
Net increase (decrease)		(8,130)		89,637		(61,618)

F-70

Notes To Financial Statements (Continued)

NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)

	BlackRock 60/40 Target Allocation ETF V.I.		Delaware Ivy VIP Asset Strategy		Fidelity® VIP Contrafund®		Fidelity® VIP Contrafund®		Invesco Oppenheimer V.I. International Growth		Invesco Oppenheimer V.I. International Growth		Invesco V.I. Capital Appreciation		Invesco V.I. Capital Appreciation
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021	(Class III)				(Initial Class)		(Service Class 2)		(Series II)		(Series I)		(Series II)		(Series I)
Units purchased		561,827		56,446		40,054		1,006,369		68,370		8,150		6,030		20,774
Units withdrawn		(30,177)		(100,389)		(617,066)		(785,529)		(128,560)		(155,272)		(52,989)		(550,173)
Units transferred between Sub-Accounts and to/from the General Account		-		(19,188)		(229,919)		(66,422)		13,395		(24,634)		(8,032)		(207,130)
Net increase (decrease)		531,650		(63,131)		(806,931)		154,418		(46,795)		(171,757)		(54,992)		(736,528)


	Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.
	Conservative		Conservative		Core		Discovery		Discovery		Diversified		Diversified		Invesco V.I.
	Balanced		Balanced		Bond		Mid Cap Growth		Mid Cap Growth		Dividend		Dividend		Global
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)	(Series II)		(Series I)				(Series II)		(Series I)		(Series I)		(Series II)		(Series II)
Units purchased		-		689		15		194,012		16,086		5,862		3,071		166,178
Units withdrawn		(1,735)		(37,377)		(9,830)		(144,921)		(313,520)		(174,059)		(136,527)		(326,852)
Units transferred between Sub-Accounts and to/from the General Account		-		233		(721)		9,938		(82,903)		15,656		29,188		(27,396)
Net increase (decrease)		(1,735)		(36,454)		(10,535)		59,028		(380,336)		(152,542)		(104,268)		(188,070)


			Invesco V.I.		Invesco V.I.
	Invesco V.I.		Global Strategic		Global Strategic		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.		Invesco V.I.
	Global		Income		Income		Health Care		Health Care		Main Street		Main Street		Technology
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)	(Series I)		(Series II)		(Series I)		(Series I)		(Series II)		(Series II)		(Series I)		(Series I)
Units purchased		32,976		249,101		52,296		3,784		7,907		124,736		8,436		10,309
Units withdrawn		(475,169)		(456,253)		(1,243,841)		(34,417)		(53,563)		(88,508)		(80,111)		(36,210)
Units transferred between Sub-Accounts and to/from the General Account		(91,100)		189,459		1,015,492		3,605		(7,065)		(8,114)		(36,292)		5,421
Net increase (decrease)		(533,293)		(17,692)		(176,053)		(27,029)		(52,722)		28,114		(107,966)		(20,480)

	Invesco V.I. Technology		Invesco V.I. U.S. Government Money		MML Aggressive Allocation		MML Aggressive Allocation		MML American Funds Core Allocation		MML American Funds Growth		MML American Funds International		MML Balanced Allocation
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)	(Series II)				(Initial Class)		(Service Class)								(Initial Class)
Units purchased		5,603		10,597		37,967		336,752		1,386,502		885,198		339,388		55,589
Units withdrawn		(37,477)		(147,854)		(80,931)		(737,278)		(6,164,472)		(877,015)		(448,027)		(784,240)
Units transferred between Sub-Accounts and to/from the General Account		(5,690)		45,351		(48,808)		(73,053)		(355,559)		(139,562)		187,475		178,620
Net increase (decrease)		(37,564)		(91,906)		(91,773)		(473,578)		(5,133,529)		(131,379)		78,836		(550,031)

F-71

Notes To Financial Statements (Continued)

NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)


	MML						MML		MML		MML		MML		MML
	Balanced		MML		MML		Blue Chip		Blue Chip		Conservative		Conservative		Dynamic
	Allocation		Blend		Blend		Growth		Growth		Allocation		Allocation		Bond
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)	(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Service Class I)
Units purchased		1,080,042		22,409		1,162,857		7,552		479,743		62,300		1,036,389		213,188
Units withdrawn		(3,073,258)		(242,149)		(618,336)		(94,688)		(411,878)		(891,839)		(4,184,161)		(103,903)
Units transferred between Sub-Accounts and to/from the General Account		(22,222)		73,011		30,325		(27,398)		(15,244)		6,955		612,197		7,619
Net increase (decrease)		(2,015,438)		(146,729)		574,846		(114,535)		52,620		(822,584)		(2,535,575)		116,904


									MML		MML		MML		MML
	MML		MML		MML		MML		Equity		Equity		Equity		Equity
	Equity		Equity		Equity Income		Equity Income		Index		Index		Momentum		Rotation
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)	(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Class I)		(Service Class I)		(Service Class I)		(Service Class I)
Units purchased		9,135		332,566		27,065		239,615		17,134		4,799		13,249		11,554
Units withdrawn		(67,875)		(586,355)		(623,850)		(479,996)		(70,935)		(163,640)		(26,599)		(14,589)
Units transferred between Sub-Accounts and to/from the General Account		(10,129)		(209,333)		(350,842)		(157,395)		(38,816)		(59,125)		(131)		16
Net increase (decrease)		(68,870)		(463,121)		(947,626)		(397,775)		(92,617)		(217,966)		(13,481)		(3,019)


	MML						MML		MML
	Focused		MML		MML		Fundamental		Fundamental		MML		MML		MML
	Equity		Foreign		Foreign		Equity		Value		Global		Global		Global
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)			(Initial Class)		(Service Class)						(Class I)		(Service Class I)		(Class II)
Units purchased		81,249		40,740		24,795		105,639		215,380		2,410		76,530		3,641
Units withdrawn		(102,137)		(948,535)		(80,396)		(106,946)		(142,709)		(25,399)		(95,885)		(12,187)
Units transferred between Sub-Accounts and to/from the General Account		5,057		3,246		(8,711)		10,382		23,586		(7,070)		(16,082)		(2,541)
Net increase (decrease)		(15,831)		(904,548)		(64,312)		9,075		96,256		(30,059)		(35,437)		(11,087)

															MML
	MML		MML		MML		MML				MML		MML		Inflation-
	Growth		Growth		Growth		Growth		MML		Income		Income		Protected
	& Income		& Income		Allocation		Allocation		High Yield		& Growth		& Growth		and Income
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)	(Initial Class)		(Service Class)		(Initial Class)		(Service Class)				(Initial Class)		(Service Class)		(Initial Class)
Units purchased		9,322		247,797		206,630		814,470		376,523		8,804		110,249		47,080
Units withdrawn		(280,422)		(211,727)		(2,990,900)		(5,774,169)		(178,477)		(88,149)		(167,685)		(1,269,463)
Units transferred between Sub-Accounts and to/from the General Account		(60,700)		(36,627)		(133,999)		(365,107)		27,784		(36,654)		(13,382)		552,579
Net increase (decrease)		(331,800)		(557)		(2,918,268)		(5,324,807)		225,830		(115,999)		(70,818)		(669,805)

F-72

Notes To Financial Statements (Continued)

NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)

	MML
	Inflation-		MML		MML		MML		MML		MML		MML		MML
	Protected		International		Large Cap		Large Cap		Managed		Managed		Managed		Managed
	and Income		Equity		Growth		Growth		Bond		Bond		Volatility		Volatility
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)	(Service Class)				(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)
Units purchased		632,372		105,126		5,731		117,797		50,357		1,290,457		31,477		70,501
Units withdrawn		(510,963)		(77,000)		(57,884)		(113,578)		(984,984)		(2,568,713)		(735,198)		(243,788)
Units transferred between Sub-Accounts and to/from the General Account		269,387		30,415		(11,474)		8,230		570,732		854,880		103,020		(5,816)
Net increase (decrease)		390,796		58,541		(63,627)		12,450		(363,895)		(423,376)		(600,702)		(179,103)


									MML		MML		MML		MML
	MML		MML		MML		MML		Moderate		Moderate		Short-Duration		Small Cap
	Mid Cap Growth		Mid Cap Growth		Mid Cap Value		Mid Cap Value		Allocation		Allocation		Bond		Equity
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)	(Initial Class)		(Service Class)		(Initial Class)		(Service Class)		(Initial Class)		(Service Class)				(Initial Class)
Units purchased		14,177		206,794		19,923		137,773		100,005		1,394,607		519,516		5,252
Units withdrawn		(191,477)		(471,774)		(507,609)		(255,289)		(2,131,446)		(13,964,763)		(1,478,323)		(64,992)
Units transferred between Sub-Accounts and to/from the General Account		(30,800)		(23,449)		(199,782)		(38,631)		(34,763)		(667,018)		(3,485)		(23,994)
Net increase (decrease)		(208,100)		(288,429)		(687,467)		(156,147)		(2,066,204)		(13,237,175)		(962,291)		(83,734)

															MML
	MML		MML		MML		MML		MML		MML		MML		Strategic
	Small Cap		Small Cap		Small Cap		Small		Small/Mid Cap		Small/Mid Cap		Special		Emerging
	Equity		Growth Equity		Growth Equity		Company Value		Value		Value		Situations		Markets
	Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)	(Service Class)		(Initial Class)		(Service Class)				(Initial Class)		(Service Class)		(Service Class I)		(Service Class I)
Units purchased		184,098		8,565		136,766		171,296		17,121		315,664		16,537		103,922
Units withdrawn		(158,401)		(234,423)		(119,433)		(208,107)		(421,463)		(189,163)		(1,950)		(114,917)
Units transferred between Sub-Accounts and to/from the General Account		2,981		65,795		6,464		2,707		(454,284)		(26,828)		(7,874)		55,287
Net increase (decrease)		28,679		(160,064)		23,796		(34,104)		(858,626)		99,673		6,713		44,293

					PIMCO		VY®
			MML U.S.		Commodity		Clarion
	MML Total		Government		RealReturn®		Global
	Return Bond		Money Market		Strategy		Real Estate
	Sub-Account		Sub-Account		Sub-Account		Sub-Account
2021 (Continued)
Units purchased		717,399		1,574,683		18,448		5,399
Units withdrawn		(545,448)		(9,298,623)		(221,953)		(100,469)
Units transferred between Sub-Accounts and to/from the General Account		(90,218)		1,953,316		(2,062)		(51,369)
Net increase (decrease)		81,733		(5,770,624)		(205,567)		(146,439)

F-73

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS

A summary of units outstanding, unit values, net assets, investment income ratios, expense ratios (excluding expenses of the underlying funds) and total return ratios for each of the years or periods in the five-year period ended December 31, 2022 follows:


		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
BlackRock 60/40 Target Allocation ETF V.I. Sub-Account (Class III)
	2022	1,196,331	$	12.97	to	$	13.74	$	16,425,190	1.90	%	1.00	%	to	1.80	%	(16.55)	%	to	(15.88)	%
	2021	1,135,192		15.55	to		16.33		18,530,683	2.15		1.00		to	1.80		9.71		to	10.59
	2020	603,542		14.17	to		14.77		8,908,234	1.89		1.00		to	1.80		12.31		to	13.21
	2019	274,313		12.62	to		13.05		3,575,830	4.15		1.00		to	1.80		19.06		to	20.02
	2018	96,720		10.60	to		10.87		1,051,057	0.87		1.00		to	1.80		(6.88)		to	(6.13)
Delaware Ivy VIP Asset Strategy Sub-Account (Class II) ⁴
	2022	833,323		11.85	to		12.77		10,874,142	1.57		1.00		to	3.10		(17.34)		to	(15.59)
	2021	841,382		14.34	to		15.13		13,346,595	1.55		1.00		to	3.10		7.07		to	9.34
	2020	904,514		13.39	to		13.84		13,270,558	2.02		1.00		to	3.10		10.40		to	12.74
	2019	943,855		12.13	to		12.27		12,403,360	2.13		1.00		to	3.10		18.06		to	20.57
	2018	1,008,997		10.18	to		10.27		11,123,858	1.88		1.00		to	3.10		(8.34)		to	(6.39)
Fidelity® VIP Contrafund® Sub-Account (Initial Class)
	2022	3,876,930		31.70	to		50.39		168,304,213	0.49		0.95		to	2.60		(28.20)		to	(27.01)
	2021	4,187,353		44.15	to		69.04		250,765,962	0.06		0.95		to	2.60		24.56		to	26.63
	2020	4,994,284		35.45	to		54.52		237,247,151	0.24		0.95		to	2.60		27.22		to	29.33
	2019	6,319,467		27.86	to		42.16		232,111,397	0.45		0.95		to	2.60		28.20		to	30.33
	2018	7,486,410		21.73	to		32.34		212,143,084	0.68		0.95		to	2.60		(8.79)		to	(7.27)
Fidelity® VIP Contrafund® Sub-Account (Service Class 2)
	2022	8,378,070		18.15	to		28.95		191,667,565	0.26		1.00		to	3.10		(28.73)		to	(27.22)
	2021	8,481,331		24.94	to		40.62		279,055,343	0.03		1.00		to	3.10		23.62		to	26.24
	2020	8,326,913		19.76	to		32.86		229,257,699	0.08		1.00		to	3.10		26.26		to	28.94
	2019	8,336,046		15.32	to		26.03		191,552,509	0.22		1.00		to	3.10		27.27		to	29.97
	2018	7,820,910		11.79	to		20.45		150,211,346	0.45		1.00		to	3.10		(9.51)		to	(7.57)
Fidelity® VIP Healthcare Sub-Account
	2022	43,720		-	-		10.22		447,027	-		1.00		to	3.10		-		-	-
Fidelity® VIP Real Estate Sub-Account
	2022	18,483		-	-		8.24		152,225	1.70		1.00		to	3.10		-		-	-
Fidelity® VIP Strategic Income Sub-Account
	2022	22,156		-	-		9.08		201,143	6.33		0.95		to	3.10		-		-	-
Invesco Oppenheimer V.I. International Growth Sub-Account (Series I)
	2022	845,645		18.01	to		27.01		20,298,479	-		0.95		to	2.60		(29.00)		to	(27.82)
	2021	857,957		25.37	to		37.42		28,738,025	-		0.95		to	2.60		7.39		to	9.18
	2020	1,029,713		23.62	to		34.27		32,043,570	0.93		0.95		to	2.60		18.38		to	20.35
	2019	1,267,445		19.95	to		28.48		32,768,962	1.05		0.95		to	2.60		25.30		to	27.39
	2018	1,469,329		15.92	to		22.36		30,045,032	0.86		0.95		to	2.60		(21.50)		to	(20.18)
Invesco Oppenheimer V.I. International Growth Sub-Account (Series II)
	2022	1,163,026		11.24	to		16.48		18,848,749	-		1.00		to	3.10		(29.39)		to	(27.89)
	2021	1,142,992		15.59	to		23.33		26,049,458	-		1.00		to	3.10		6.76		to	9.02
	2020	1,189,787		14.30	to		21.85		25,837,159	0.62		1.00		to	3.10		17.35		to	19.84
	2019	1,376,480		11.94	to		18.62		26,966,589	0.71		1.00		to	3.10		24.05		to	26.68
	2018	1,433,614		9.42	to		15.01		23,629,838	0.60		1.00		to	3.10		(22.02)		to	(20.36)
Invesco V.I. Capital Appreciation Sub-Account (Series I)⁴
	2022	3,385,941		22.76	to		33.47		103,556,439	-		0.95		to	2.60		(32.56)		to	(31.44)
	2021	3,595,992		33.75	to		48.81		161,466,451	-		0.95		to	2.60		19.42		to	21.41
	2020	4,332,520		28.26	to		40.20		160,848,549	-		0.95		to	2.60		33.08		to	35.30
	2019	5,846,107		21.24	to		29.72		161,347,994	0.06		0.95		to	2.60		32.70		to	34.91
	2018	7,333,024		16.00	to		22.03		150,727,803	0.33		0.95		to	2.60		(8.16)		to	(6.63)

F-74

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)

		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
Invesco V.I. Capital Appreciation Sub-Account (Series II)⁴
	2022	250,907	$	20.79	to	$	31.36	$	7,405,869	-	%	1.15	%	to	3.10	%	(33.07)	%	to	(31.75)	%
	2021	311,599		31.06	to		45.94		13,493,003	-		1.15		to	3.10		18.55		to	20.88
	2020	366,591		26.20	to		38.01		13,216,783	-		1.15		to	3.10		32.08		to	34.68
	2019	481,175		19.83	to		28.22		12,888,583	-		1.15		to	3.10		31.70		to	34.29
	2018	553,449		15.06	to		21.01		11,026,041	-		1.15		to	3.10		(8.84)		to	(7.04)
Invesco V.I. Conservative Balanced Sub-Account (Series I)⁴
	2022	316,912		11.44	to		18.18		5,338,477	1.36		0.95		to	2.60		(18.99)		to	(17.64)
	2021	340,713		14.13	to		22.07		6,987,321	1.47		0.95		to	2.60		7.79		to	9.59
	2020	377,168		13.10	to		20.14		7,060,991	2.07		0.95		to	2.60		11.91		to	13.77
	2019	417,214		11.71	to		17.70		6,873,042	2.24		0.95		to	2.60		14.50		to	16.40
	2018	473,310		10.23	to		15.21		6,725,065	1.97		0.95		to	2.60		(7.77)		to	(6.22)
Invesco V.I. Conservative Balanced Sub-Account (Series II)⁴
	2022	2,970		11.07	to		15.29		45,427	1.15		1.15		to	2.80		(19.19)		to	(17.97)
	2021	3,042		13.69	to		18.64		56,716	0.99		1.15		to	2.80		7.41		to	9.04
	2020	4,777		12.75	to		17.10		76,534	1.88		1.15		to	2.65		11.59		to	13.28
	2019	5,079		11.42	to		15.09		71,711	2.00		1.15		to	2.65		14.15		to	15.88
	2018	5,419		10.01	to		13.03		66,010	1.73		1.15		to	2.65		(8.02)		to	(6.62)
Invesco V.I. Core Plus Bond Sub-Account⁵
	2022	103,980		-	-		13.65		1,419,773	1.93		-		-	1.40		-		-	(15.22)
	2021	110,047		-	-		16.11		1,772,416	2.05		-		-	1.40		-		-	(3.02)
	2020	120,583		-	-		16.61		2,002,482	3.09		-		-	1.40		-		-	8.18
	2019	129,518		-	-		15.35		1,988,167	3.32		-		-	1.40		-		-	8.00
	2018	145,829		-	-		14.21		2,072,652	3.33		-		-	1.40		-		-	(2.41)
Invesco V.I. Discovery Mid Cap Growth Sub-Account (Series I)⁴
	2022	2,145,143		26.33	to		37.84		69,315,183	-		0.95		to	2.60		(32.75)		to	(31.63)
	2021	2,211,697		39.15	to		55.35		105,647,787	-		0.95		to	2.60		16.04		to	17.97
	2020	2,592,033		33.74	to		46.92		106,383,035	0.04		0.95		to	2.60		37.08		to	39.36
	2019	3,582,421		24.61	to		33.67		106,476,690	-		0.95		to	2.60		35.79		to	38.05
	2018	4,535,962		18.13	to		24.39		99,470,922	-		0.95		to	2.60		(8.51)		to	(6.98)
Invesco V.I. Discovery Mid Cap Growth Sub-Account (Series II)
	2022	1,133,228		18.26	to		24.03		22,846,294	-		1.00		to	3.10		(33.23)		to	(31.82)
	2021	1,126,999		26.78	to		35.99		34,332,308	-		1.00		to	3.10		15.17		to	17.61
	2020	1,067,971		22.77	to		31.25		28,338,933	-		1.00		to	3.10		35.96		to	38.85
	2019	875,114		16.40	to		22.99		18,022,291	-		1.00		to	3.10		34.77		to	37.63
	2018	672,955		11.92	to		17.06		11,178,908	-		1.00		to	3.10		(9.18)		to	(7.24)
Invesco V.I. Diversified Dividend Sub-Account (Series I)
	2022	317,837		10.04	to		15.82		4,603,701	1.89		0.95		to	2.60		(4.20)		to	(2.61)
	2021	331,261		10.48	to		16.24		4,919,882	1.76		0.95		to	2.60		15.84		to	17.77
	2020	483,803		9.04	to		13.79		6,302,426	3.18		0.95		to	2.60		(2.43)		to	(0.81)
	2019	517,444		9.27	to		13.91		6,771,474	2.90		0.95		to	2.60		21.88		to	23.91
	2018	590,254		7.60	to		11.22		6,260,165	2.36		0.95		to	2.60		(9.96)		to	(8.45)
Invesco V.I. Diversified Dividend Sub-Account (Series II)⁴
	2022	728,781		9.19	to		13.97		9,489,706	1.58		1.15		to	3.10		(4.91)		to	(3.04)
	2021	841,059		9.66	to		14.40		11,345,055	1.94		1.15		to	3.10		14.98		to	17.24
	2020	945,327		8.40	to		12.29		10,939,473	2.70		1.15		to	3.10		(3.18)		to	(1.28)
	2019	1,203,871		8.68	to		12.44		14,181,904	2.53		1.15		to	3.10		20.97		to	23.35
	2018	1,568,171		7.17	to		10.09		14,983,575	2.15		1.15		to	3.10		(10.64)		to	(8.87)

F-75

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)


		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
Invesco V.I. Global Sub-Account (Series I)⁴
	2022	3,633,296	$	22.54	to	$	36.14	$	115,923,743	-	%	0.95	%	to	2.60	%	(33.52)	%	to	(32.41)	%
	2021	3,694,110		33.90	to		53.48		176,055,227	-		0.95		to	2.60		12.53		to	14.40
	2020	4,227,403		30.13	to		46.75		176,607,524	0.67		0.95		to	2.60		24.36		to	26.43
	2019	5,325,923		24.23	to		36.97		176,050,964	0.89		0.95		to	2.60		28.41		to	30.54
	2018	6,335,935		18.87	to		28.32		161,039,139	0.99		0.95		to	2.60		(15.42)		to	(14.01)

Invesco V.I. Global Sub-Account (Series II)⁴
	2022	2,506,424		14.03	to		20.58		49,427,513	-		1.00		to	3.10		(34.01)		to	(32.61)
	2021	2,571,246		20.81	to		31.19		77,475,203	-		1.00		to	3.10		11.66		to	14.02
	2020	2,759,316		18.25	to		27.94		75,781,828	0.44		1.00		to	3.10		23.45		to	26.07
	2019	3,054,222		14.48	to		22.63		69,852,655	0.64		1.00		to	3.10		27.44		to	30.15
	2018	3,122,101		11.13	to		17.76		58,317,027	0.76		1.00		to	3.10		(16.05)		to	(14.26)

Invesco V.I. Global Strategic Income Sub-Account (Series I)⁴
	2022	6,982,530		11.36	to		18.99		105,617,322	-		0.95		to	2.60		(13.73)		to	(12.30)
	2021	8,302,751		13.17	to		21.66		143,423,120	4.69		0.95		to	2.60		(5.89)		to	(4.33)
	2020	8,478,804		13.99	to		22.64		154,124,943	5.81		0.95		to	2.60		0.75		to	2.42
	2019	9,820,494		13.89	to		22.10		174,837,228	3.80		0.95		to	2.60		7.96		to	9.76
	2018	10,593,916		12.86	to		20.14		173,249,673	4.84		0.95		to	2.60		(6.86)		to	(5.31)

Invesco V.I. Global Strategic Income Sub-Account (Series II)
	2022	3,523,347		9.46	to		10.36		42,908,119	-		1.00		to	3.10		(14.40)		to	(12.59)
	2021	4,059,143		10.83	to		12.11		57,328,981	4.29		1.00		to	3.10		(6.51)		to	(4.52)
	2020	4,076,835		11.34	to		12.95		61,117,704	5.16		1.00		to	3.10		(0.15)		to	1.97
	2019	4,957,887		11.12	to		12.97		74,928,822	3.39		1.00		to	3.10		7.23		to	9.51
	2018	4,974,238		10.16	to		12.10		70,206,556	4.56		1.00		to	3.10		(7.47)		to	(5.49)

Invesco V.I. Health Care Sub-Account (Series I)⁴
	2022	261,340		25.20	to		38.61		8,993,115	-		0.95		to	2.60		(15.54)		to	(14.14)
	2021	282,080		29.83	to		44.97		11,396,798	0.20		0.95		to	2.60		9.42		to	11.24
	2020	309,109		27.26	to		40.42		11,325,826	0.31		0.95		to	2.60		11.52		to	13.38
	2019	355,234		24.45	to		35.65		11,544,579	0.04		0.95		to	2.60		29.10		to	31.25
	2018	389,202		18.94	to		27.16		9,685,524	-		0.95		to	2.60		(1.70)		to	(0.05)

Invesco V.I. Health Care Sub-Account (Series II)
	2022	260,608		23.02	to		35.28		8,644,331	-		1.15		to	3.10		(16.17)		to	(14.52)
	2021	298,106		27.46	to		41.27		11,700,675	-		1.15		to	3.10		8.62		to	10.76
	2020	350,828		25.28	to		37.26		12,414,240	0.09		1.15		to	3.10		10.71		to	12.89
	2019	424,441		22.83	to		33.00		13,391,320	-		1.15		to	3.10		28.15		to	30.67
	2018	487,410		17.82	to		25.26		11,728,521	-		1.15		to	3.10		(2.47)		to	(0.54)

Invesco V.I. Main Street Sub-Account (Series I)⁴
	2022	862,445		24.21	to		35.60		26,861,840	1.45		0.95		to	2.60		(22.18)		to	(20.89)
	2021	939,913		31.10	to		45.00		37,181,449	0.70		0.95		to	2.60		24.30		to	26.36
	2020	1,047,878		25.02	to		35.61		33,044,884	1.49		0.95		to	2.60		11.02		to	12.87
	2019	1,159,288		22.54	to		31.55		32,594,095	1.06		0.95		to	2.60		28.69		to	30.83
	2018	1,342,344		17.52	to		24.12		28,990,577	1.17		0.95		to	2.60		(10.26)		to	(8.76)

Invesco V.I. Main Street Sub-Account (Series II)
	2022	990,269		16.76	to		22.12		18,959,328	1.09		1.00		to	3.10		(22.74)		to	(21.10)
	2021	1,068,989		21.24	to		28.63		26,323,196	0.52		1.00		to	3.10		23.35		to	25.97
	2020	1,040,875		16.86	to		23.21		21,292,780	1.17		1.00		to	3.10		10.22		to	12.56
	2019	1,022,590		14.98	to		21.06		19,582,090	0.81		1.00		to	3.10		27.72		to	30.43
	2018	954,458		11.49	to		16.49		14,676,353	0.90		1.00		to	3.10		(10.92)		to	(9.02)

F-76

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)

		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
Invesco V.I. Technology Sub-Account (Series I)
	2022	354,685	$	22.62	to	$	30.95	$	5,414,369	-	%	0.95	%	to	2.60	%	(41.49)	%	to	(40.52)	%
	2021	361,364		38.66	to		52.04		9,838,777	-		0.95		to	2.60		11.47		to	13.33
	2020	381,843		34.68	to		45.92		9,461,356	-		0.95		to	2.60		42.37		to	44.74
	2019	409,274		24.36	to		31.73		7,407,278	-		0.95		to	2.60		32.39		to	34.59
	2018	440,280		18.40	to		23.57		6,043,444	-		0.95		to	2.60		(3.02)		to	(1.40)
Invesco V.I. Technology Sub-Account (Series II)⁴
	2022	203,958		20.64	to		35.84		6,511,762	-		1.15		to	3.10		(41.94)		to	(40.80)
	2021	236,464		35.55	to		60.54		12,810,416	-		1.15		to	3.10		10.60		to	12.77
	2020	274,028		32.15	to		53.68		13,181,326	-		1.15		to	3.10		41.35		to	44.13
	2019	300,092		22.74	to		37.25		10,156,434	-		1.15		to	3.10		31.42		to	34.01
	2018	377,907		17.30	to		27.79		9,565,714	-		1.15		to	3.10		(3.76)		to	(1.85)
Invesco V.I. U.S. Government Money Sub-Account
	2022	651,358		7.55	to		10.35		6,701,851	1.29		0.95		to	2.60		(1.31)		to	0.33
	2021	565,742		7.65	to		10.31		5,812,814	0.01		0.95		to	2.60		(2.56)		to	(0.94)
	2020	657,647		7.85	to		10.41		6,847,355	0.22		0.95		to	2.60		(2.35)		to	(0.73)
	2019	673,998		8.04	to		10.49		7,061,758	1.70		0.95		to	2.60		(0.90)		to	0.75
	2018	749,807		8.11	to		10.41		7,836,332	1.34		0.95		to	2.60		(1.26)		to	0.39
Janus Henderson Global Technology and Innovation Sub-Account
	2022	32,355		-	-		7.56		244,729	-		0.95		to	2.60		-		-	-
MML Aggressive Allocation Sub-Account (Initial Class)
	2022	1,192,000		17.99	to		23.02		26,453,572	2.02		0.95		to	2.60		(18.05)		to	(16.69)
	2021	1,359,322		21.95	to		27.63		36,316,920	1.25		0.95		to	2.60		13.65		to	15.54
	2020	1,451,095		19.32	to		23.92		33,588,339	1.67		0.95		to	2.60		10.44		to	12.27
	2019	1,821,022		17.49	to		21.30		37,508,768	1.99		0.95		to	2.60		20.75		to	22.76
	2018	1,849,440		14.49	to		17.35		31,085,089	1.34		0.95		to	2.60		(10.49)		to	(8.99)
MML Aggressive Allocation Sub-Account (Service Class)
	2022	3,789,915		14.63	to		16.28		68,477,846	1.81		1.00		to	3.10		(18.68)		to	(16.96)
	2021	4,300,766		17.61	to		20.02		95,058,178	1.03		1.00		to	3.10		12.85		to	15.25
	2020	4,774,344		15.28	to		17.74		93,600,335	1.38		1.00		to	3.10		9.63		to	11.95
	2019	5,325,759		13.65	to		16.18		95,636,402	1.71		1.00		to	3.10		19.87		to	22.42
	2018	5,559,658		11.15	to		13.50		83,188,210	1.17		1.00		to	3.10		(11.26)		to	(9.36)
MML American Funds Core Allocation Sub-Account
	2022	39,435,747		13.93	to		14.93		692,811,278	2.13		1.00		to	3.10		(16.33)		to	(14.56)
	2021	44,078,410		16.30	to		17.84		919,106,679	1.31		1.00		to	3.10		9.41		to	11.73
	2020	49,211,939		14.59	to		16.31		930,308,860	1.73		1.00		to	3.10		7.99		to	10.28
	2019	57,034,873		13.23	to		15.10		989,500,489	2.39		1.00		to	3.10		14.51		to	16.94
	2018	63,029,364		11.31	to		13.19		944,978,070	1.71		1.00		to	3.10		(7.76)		to	(5.79)
MML American Funds Growth Sub-Account
	2022	7,340,690		21.49	to		27.45		187,123,822	0.43		1.00		to	3.10		(32.42)		to	(30.98)
	2021	7,241,440		31.13	to		40.62		282,628,214	-		1.00		to	3.10		17.84		to	20.34
	2020	7,372,819		25.87	to		34.47		249,753,195	0.72		1.00		to	3.10		46.80		to	49.91
	2019	8,104,921		17.26	to		23.48		191,745,889	0.32		1.00		to	3.10		26.25		to	28.93
	2018	8,213,057		13.39	to		18.60		158,458,588	0.28		1.00		to	3.10		(3.70)		to	(1.65)

F-77

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)

		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
MML American Funds International Sub-Account⁶
	2022	-	$	-	-	$	-	$	-	-	%	-	%	-	-	%	-	%	-	-	%
	2021	3,575,717		13.26	to		14.27		57,592,722	0.13		1.00		to	3.10		(4.95)		to	(2.93)
	2020	3,496,882		13.95	to		14.70		58,820,176	1.03		1.00		to	3.10		9.98		to	12.31
	2019	4,069,542		12.69	to		13.09		61,510,006	2.74		1.00		to	3.10		18.58		to	21.09
	2018	4,343,149		10.70	to		10.81		54,602,962	0.82		1.00		to	3.10		(16.18)		to	(14.39)
MML Balanced Allocation Sub-Account (Initial Class)
	2022	3,435,716		14.07	to		18.00		58,629,976	3.59		0.95		to	2.60		(16.91)		to	(15.53)
	2021	3,892,604		16.93	to		21.31		78,951,185	1.25		0.95		to	2.60		7.16		to	8.94
	2020	4,442,634		15.80	to		19.56		83,010,888	2.67		0.95		to	2.60		8.09		to	9.89
	2019	5,809,475		14.62	to		17.80		99,026,168	2.57		0.95		to	2.60		13.75		to	15.65
	2018	6,173,598		12.85	to		15.40		91,530,192	2.29		0.95		to	2.60		(6.93)		to	(5.38)
MML Balanced Allocation Sub-Account (Service Class)
	2022	18,387,696		12.34	to		12.75		267,376,596	3.34		1.00		to	3.10		(17.56)		to	(15.81)
	2021	20,676,935		14.66	to		15.47		363,104,191	1.01		1.00		to	3.10		6.35		to	8.61
	2020	22,692,373		13.50	to		14.54		373,173,046	2.42		1.00		to	3.10		7.27		to	9.54
	2019	26,645,694		12.32	to		13.56		408,910,548	2.31		1.00		to	3.10		13.05		to	15.45
	2018	28,846,215		10.67	to		11.99		391,117,726	2.07		1.00		to	3.10		(7.69)		to	(5.72)
MML Blend Sub-Account (Initial Class)
	2022	1,898,554		20.84	to		31.19		51,298,275	1.35		0.95		to	2.60		(18.73)		to	(17.38)
	2021	2,100,227		25.64	to		37.75		68,982,917	2.11		0.95		to	2.60		12.07		to	13.94
	2020	2,246,956		22.88	to		33.14		65,024,452	-		0.95		to	2.60		9.97		to	11.80
	2019	2,419,280		20.81	to		29.64		62,980,806	2.43		0.95		to	2.60		18.27		to	20.23
	2018	2,604,579		17.59	to		24.65		56,577,666	2.11		0.95		to	2.60		(6.81)		to	(5.25)
MML Blend Sub-Account (Service Class)
	2022	10,920,106		14.35	to		19.03		172,514,255	1.12		1.00		to	3.10		(19.34)		to	(17.63)
	2021	11,045,227		17.42	to		23.60		217,290,953	1.97		1.00		to	3.10		11.24		to	13.60
	2020	10,470,381		15.33	to		21.21		185,705,276	-		1.00		to	3.10		9.14		to	11.45
	2019	9,995,211		13.76	to		19.44		161,858,732	2.20		1.00		to	3.10		17.38		to	19.87
	2018	8,331,460		11.47	to		16.56		118,605,705	2.01		1.00		to	3.10		(7.51)		to	(5.53)
MML Blue Chip Growth Sub-Account (Initial Class)
	2022	930,051		28.02	to		42.15		37,019,588	-		0.95		to	2.60		(41.05)		to	(40.07)
	2021	999,401		47.54	to		70.33		66,935,027	-		0.95		to	2.60		13.35		to	15.24
	2020	1,113,935		41.94	to		61.03		64,905,396	-		0.95		to	2.60		30.96		to	33.13
	2019	1,289,749		32.02	to		45.84		56,366,432	-		0.95		to	2.60		26.51		to	28.62
	2018	1,408,101		25.31	to		35.64		48,210,759	-		0.95		to	2.60		(0.75)		to	0.91
MML Blue Chip Growth Sub-Account (Service Class)
	2022	6,290,813		15.90	to		25.60		116,156,894	-		1.00		to	3.10		(41.49)		to	(40.25)
	2021	6,267,018		26.60	to		43.75		203,462,318	-		1.00		to	3.10		12.54		to	14.92
	2020	6,214,398		23.15	to		38.87		181,685,317	-		1.00		to	3.10		29.91		to	32.66
	2019	5,915,556		17.45	to		29.92		137,333,697	-		1.00		to	3.10		25.60		to	28.27
	2018	5,069,585		13.60	to		23.82		99,468,289	-		1.00		to	3.10		(1.44)		to	0.66
MML Conservative Allocation Sub-Account (Initial Class)
	2022	3,104,296		13.37	to		17.10		50,846,697	3.88		0.95		to	2.60		(16.92)		to	(15.54)
	2021	3,386,413		16.09	to		20.25		65,736,943	1.18		0.95		to	2.60		5.81		to	7.57
	2020	4,208,998		15.20	to		18.82		76,130,207	2.60		0.95		to	2.60		7.11		to	8.89
	2019	4,480,056		14.19	to		17.29		74,794,028	2.68		0.95		to	2.60		12.24		to	14.11
	2018	4,916,102		12.65	to		15.15		72,187,610	2.52		0.95		to	2.60		(5.99)		to	(4.41)

F-78

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)

		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
MML Conservative Allocation Sub-Account (Service Class)
	2022	16,606,296	$	11.80	to	$	12.10	$	232,816,753	3.59	%	1.00	%	to	3.10	%	(17.50)	%	to	(15.75)	%
	2021	18,550,323		14.01	to		14.66		314,438,147	0.93		1.00		to	3.10		5.02		to	7.25
	2020	21,085,898		13.06	to		13.96		338,139,060	2.48		1.00		to	3.10		6.32		to	8.58
	2019	20,930,050		12.03	to		13.13		312,722,144	2.47		1.00		to	3.10		11.42		to	13.79
	2018	22,812,097		10.57	to		11.79		306,155,920	2.26		1.00		to	3.10		(6.65)		to	(4.66)
MML Dynamic Bond Sub-Account (Service Class I)
	2022	1,265,675		9.05	to		9.58		11,894,741	3.60		1.00		to	1.80		(15.78)		to	(15.11)
	2021	1,219,346		10.74	to		11.28		13,575,976	3.53		1.00		to	1.80		(1.96)		to	(1.18)
	2020	1,102,442		10.96	to		11.42		12,453,262	0.34		1.00		to	1.80		1.67		to	2.48
	2019	918,215		10.78	to		11.14		10,144,350	3.42		1.00		to	1.80		6.59		to	7.45
	2018	607,871		10.11	to		10.37		6,269,866	3.31		1.00		to	1.80		(2.11)		to	(1.32)
MML Equity Sub-Account (Initial Class)
	2022	808,421		22.81	to		34.22		22,745,758	1.60		0.95		to	2.60		(7.09)		to	(5.55)
	2021	857,014		24.55	to		36.23		25,600,018	1.66		0.95		to	2.60		26.92		to	29.03
	2020	925,884		19.34	to		28.08		21,590,756	2.35		0.95		to	2.60		0.38		to	2.05
	2019	1,097,055		19.27	to		27.51		25,084,965	2.04		0.95		to	2.60		22.69		to	24.73
	2018	1,190,624		15.71	to		22.06		21,958,025	1.77		0.95		to	2.60		(12.32)		to	(10.85)
MML Equity Sub-Account (Service Class)
	2022	3,961,989		16.94	to		20.84		87,189,234	1.35		1.00		to	3.10		(7.78)		to	(5.83)
	2021	4,388,637		17.99	to		22.60		104,959,878	1.47		1.00		to	3.10		25.97		to	28.64
	2020	4,851,758		13.98	to		17.94		94,339,624	2.14		1.00		to	3.10		(0.37)		to	1.75
	2019	4,923,227		13.74	to		18.01		97,057,943	1.82		1.00		to	3.10		21.78		to	24.36
	2018	5,016,720		11.05	to		14.79		82,975,610	1.58		1.00		to	3.10		(12.97)		to	(11.12)
MML Equity Income Sub-Account (Initial Class)
	2022	3,643,121		23.18	to		34.71		112,868,269	1.68		0.95		to	2.60		(6.04)		to	(4.48)
	2021	4,476,832		24.67	to		36.34		145,517,882	2.19		0.95		to	2.60		22.36		to	24.39
	2020	5,424,458		20.16	to		29.21		141,959,006	2.46		0.95		to	2.60		(1.26)		to	0.38
	2019	5,987,062		20.42	to		29.10		157,019,262	2.28		0.95		to	2.60		23.21		to	25.26
	2018	7,063,608		16.57	to		23.23		148,592,012	1.88		0.95		to	2.60		(11.70)		to	(10.23)
MML Equity Income Sub-Account (Service Class)
	2022	3,463,599		17.37	to		21.17		78,411,916	1.51		1.00		to	3.10		(6.75)		to	(4.77)
	2021	3,576,293		18.24	to		22.71		88,613,015	2.04		1.00		to	3.10		21.36		to	23.93
	2020	3,974,069		14.72	to		18.71		82,700,285	2.20		1.00		to	3.10		(1.92)		to	0.16
	2019	4,049,182		14.69	to		19.07		86,738,940	2.07		1.00		to	3.10		22.27		to	24.86
	2018	4,198,697		11.77	to		15.60		75,340,152	1.70		1.00		to	3.10		(12.37)		to	(10.50)
MML Equity Index Sub-Account (Class I)⁶
	2022	855,314		27.34	to		40.56		27,821,852	1.01		0.95		to	2.60		(20.58)		to	(19.26)
	2021	943,721		34.42	to		50.24		38,036,347	1.27		0.95		to	2.60		24.90		to	26.98
	2020	1,036,338		27.56	to		39.57		32,974,512	1.64		0.95		to	2.60		15.03		to	16.94
	2019	1,204,817		23.96	to		33.84		33,045,075	2.57		0.95		to	2.60		27.50		to	29.62
	2018	1,545,569		18.79	to		26.10		32,889,678	1.51		0.95		to	2.60		(7.26)		to	(5.71)
MML Equity Index Sub-Account (Service Class I)
	2022	820,581		24.97	to		37.15		29,639,746	0.78		1.15		to	3.10		(21.17)		to	(19.61)
	2021	1,029,840		31.67	to		46.21		46,175,143	1.15		1.15		to	3.10		23.96		to	26.40
	2020	1,247,806		25.55	to		36.56		44,360,172	1.46		1.15		to	3.10		14.14		to	16.39
	2019	1,507,010		22.38	to		31.41		45,972,770	2.57		1.15		to	3.10		26.57		to	29.06
	2018	1,732,277		17.68	to		24.34		40,825,319	1.36		1.15		to	3.10		(7.96)		to	(6.13)

F-79

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)

		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
MML Equity Momentum Sub-Account (Service Class I)
	2022	-	$	-	-	$	-	$	-	-	%	-	%	-	-	%	-	%	-	-	%
	2021	96,460		21.35	to		22.43		2,161,734	-		1.00		to	1.80		19.43		to	20.39
	2020	109,941		17.88	to		18.63		2,048,092	0.01		1.00		to	1.80		17.86		to	18.81
	2019	120,799		15.17	to		15.68		1,893,686	0.68		1.00		to	1.80		35.06		to	36.14
	2018	119,922		11.23	to		11.52		1,380,613	0.09		1.00		to	1.80		(18.42)		to	(17.76)
MML Equity Rotation Sub-Account (Service Class I)
	2022	97,555		18.89	to		20.01		1,864,206	-		1.00		to	1.80		(15.99)		to	(15.31)
	2021	105,214		22.49	to		23.63		2,484,746	0.43		1.00		to	1.80		25.72		to	26.73
	2020	108,233		17.89	to		18.64		2,017,490	1.39		1.00		to	1.80		20.39		to	21.35
	2019	113,361		14.86	to		15.36		1,741,305	0.19		1.00		to	1.80		14.22		to	15.14
	2018	109,641		13.01	to		13.34		1,462,409	0.76		1.00		to	1.80		(10.73)		to	(10.01)
MML Focused Equity Sub-Account
	2022	936,219		25.58	to		32.17		21,586,709	0.63		0.95		to	3.10		(7.91)		to	(5.91)
	2021	865,951		27.78	to		34.19		22,092,990	0.92		0.95		to	3.10		18.16		to	20.73
	2020	881,782		23.51	to		28.32		18,957,860	0.64		0.95		to	3.10		9.10		to	11.47
	2019	887,636		21.55	to		25.41		17,679,923	0.05		0.95		to	3.10		25.77		to	28.50
	2018	639,384		17.13	to		19.77		10,379,415	2.82		0.95		to	3.10		(2.11)		to	0.03
MML Foreign Sub-Account (Initial Class)
	2022	5,925,578		11.66	to		17.12		89,435,726	3.71		0.95		to	2.60		(16.77)		to	(15.39)
	2021	6,441,988		14.01	to		20.23		115,578,289	2.54		0.95		to	2.60		10.14		to	11.98
	2020	7,346,537		12.72	to		18.07		118,344,969	3.10		0.95		to	2.60		3.21		to	4.93
	2019	8,271,919		12.32	to		17.22		128,108,301	1.79		0.95		to	2.60		10.26		to	12.10
	2018	8,931,698		11.18	to		15.36		124,201,591	2.25		0.95		to	2.60		(18.07)		to	(16.70)
MML Foreign Sub-Account (Service Class)
	2022	652,319		10.37	to		10.65		8,823,408	3.38		1.00		to	3.10		(17.47)		to	(15.72)
	2021	520,191		12.30	to		12.91		8,065,680	2.30		1.00		to	3.10		9.51		to	11.83
	2020	584,504		11.00	to		11.79		8,319,183	2.84		1.00		to	3.10		2.34		to	4.52
	2019	700,188		10.52	to		11.52		9,815,416	1.52		1.00		to	3.10		9.34		to	11.66
	2018	725,345		9.43	to		10.53		9,327,795	2.00		1.00		to	3.10		(18.61)		to	(16.87)
MML Fundamental Equity Sub-Account
	2022	909,971		23.25	to		29.24		18,740,713	0.36		0.95		to	3.10		(22.86)		to	(21.19)
	2021	890,049		30.14	to		37.10		23,979,880	0.33		0.95		to	3.10		23.50		to	26.18
	2020	880,974		24.41	to		29.41		19,006,450	-		0.95		to	3.10		15.94		to	18.46
	2019	797,684		21.05	to		24.82		14,803,275	0.44		0.95		to	3.10		29.26		to	32.07
	2018	697,122		16.29	to		18.80		9,980,256	1.16		0.95		to	3.10		(2.43)		to	(0.30)
MML Fundamental Value Sub-Account
	2022	1,213,572		18.63	to		23.44		20,630,720	0.84		0.95		to	3.10		(7.92)		to	(5.92)
	2021	1,116,028		20.24	to		24.91		20,520,581	1.64		0.95		to	3.10		25.73		to	28.46
	2020	1,019,772		16.10	to		19.39		14,865,608	1.08		0.95		to	3.10		(0.76)		to	1.40
	2019	1,016,383		16.22	to		19.12		15,050,102	1.71		0.95		to	3.10		18.75		to	21.33
	2018	956,198		13.66	to		15.76		12,106,408	1.56		0.95		to	3.10		(13.31)		to	(11.41)
MML Global Sub-Account (Class I)
	2022	181,481		16.87	to		23.47		4,097,127	1.46		0.95		to	2.60		(19.89)		to	(18.56)
	2021	184,374		21.06	to		28.82		5,128,057	0.88		0.95		to	2.60		14.31		to	16.21
	2020	214,433		18.43	to		24.80		5,164,484	1.09		0.95		to	2.60		11.09		to	12.94
	2019	266,210		16.59	to		21.96		5,717,821	0.68		0.95		to	2.60		27.24		to	29.36
	2018	306,197		13.04	to		16.97		5,081,523	1.12		0.95		to	2.60		(11.87)		to	(10.39)

F-80

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)

		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
MML Global Sub-Account (Class II)
	2022	244,219	$	13.47	to	$	17.48	$	3,976,403	1.63	%	1.18	%	to	1.65	%	(19.06)	%	to	(18.68)	%
	2021	245,084		16.57	to		21.59		4,977,478	0.90		1.18		to	1.65		15.50		to	16.05
	2020	256,171		14.28	to		18.69		4,487,312	1.05		1.18		to	1.65		12.10		to	12.63
	2019	274,411		12.68	to		16.68		4,316,103	0.60		1.18		to	1.65		28.45		to	29.05
	2018	255,730		9.82	to		12.98		3,127,032	1.12		1.18		to	1.65		(11.06)		to	(10.64)
MML Global Sub-Account (Service Class I)
	2022	1,108,024		15.42	to		15.49		19,626,341	1.34		1.00		to	3.10		(20.50)		to	(18.81)
	2021	888,586		19.00	to		19.48		19,462,328	0.76		1.00		to	3.10		13.58		to	15.99
	2020	924,023		16.38	to		17.15		18,084,268	0.90		1.00		to	3.10		10.23		to	12.57
	2019	944,518		14.55	to		15.56		17,104,721	0.35		1.00		to	3.10		26.30		to	28.98
	2018	944,055		11.28	to		12.32		13,985,581	0.94		1.00		to	3.10		(12.61)		to	(10.74)
MML Growth Allocation Sub-Account (Initial Class)
	2022	14,041,930		16.54	to		21.16		282,056,598	2.65		0.95		to	2.60		(17.47)		to	(16.10)
	2021	15,565,856		20.04	to		25.22		373,971,831	1.56		0.95		to	2.60		11.40		to	13.25
	2020	18,484,124		17.99	to		22.27		393,392,881	2.15		0.95		to	2.60		9.87		to	11.69
	2019	26,884,888		16.37	to		19.94		514,011,956	2.27		0.95		to	2.60		18.10		to	20.06
	2018	30,317,373		13.86	to		16.61		484,216,996	1.76		0.95		to	2.60		(9.31)		to	(7.79)
MML Growth Allocation Sub-Account (Service Class)
	2022	31,477,349		13.81	to		14.99		583,718,812	2.38		1.00		to	3.10		(18.03)		to	(16.29)
	2021	34,135,820		16.50	to		18.28		763,512,275	1.29		1.00		to	3.10		10.45		to	12.79
	2020	39,460,627		14.63	to		16.55		788,648,224	1.88		1.00		to	3.10		9.04		to	11.35
	2019	53,783,791		13.13	to		15.18		978,800,276	2.03		1.00		to	3.10		17.24		to	19.73
	2018	59,693,993		10.97	to		12.95		915,267,296	1.53		1.00		to	3.10		(9.95)		to	(8.03)
MML High Yield Sub-Account
	2022	2,829,996		13.24	to		17.38		37,488,508	7.26		0.95		to	3.10		(14.65)		to	(12.80)
	2021	3,120,712		15.51	to		19.93		48,073,933	8.60		0.95		to	3.10		4.59		to	6.86
	2020	2,894,882		14.83	to		18.65		42,643,144	0.02		0.95		to	3.10		2.16		to	4.38
	2019	2,982,701		14.52	to		17.87		43,189,753	6.00		0.95		to	3.10		8.45		to	10.80
	2018	2,669,937		13.39	to		16.13		35,992,862	6.18		0.95		to	3.10		(6.50)		to	(4.46)
MML Income & Growth Sub-Account (Initial Class)
	2022	711,659		21.51	to		32.82		21,115,105	1.46		0.95		to	2.60		(2.87)		to	(1.25)
	2021	777,632		22.15	to		33.24		23,466,564	1.74		0.95		to	2.60		23.03		to	25.08
	2020	893,631		18.00	to		26.57		21,695,092	2.03		0.95		to	2.60		0.38		to	2.05
	2019	1,014,616		17.93	to		26.04		24,198,302	1.99		0.95		to	2.60		21.24		to	23.26
	2018	1,064,337		14.79	to		21.13		20,869,071	1.74		0.95		to	2.60		(13.96)		to	(12.52)
MML Income & Growth Sub-Account (Service Class)
	2022	1,409,280		17.75	to		19.65		28,418,303	1.23		1.00		to	3.10		(3.62)		to	(1.58)
	2021	1,496,875		18.04	to		20.39		31,561,723	1.61		1.00		to	3.10		22.10		to	24.69
	2020	1,567,693		14.47	to		16.70		27,009,775	1.83		1.00		to	3.10		(0.35)		to	1.76
	2019	1,681,966		14.22	to		16.76		29,439,298	1.78		1.00		to	3.10		20.35		to	22.90
	2018	1,666,619		11.57	to		13.93		24,435,731	1.59		1.00		to	3.10		(14.64)		to	(12.82)
MML Inflation-Protected and Income Sub-Account (Initial Class)
	2022	6,536,201		10.56	to		15.48		88,867,535	2.51		0.95		to	2.60		(15.57)		to	(14.17)
	2021	7,993,007		12.51	to		18.03		126,908,902	1.07		0.95		to	2.60		3.67		to	5.39
	2020	8,662,812		12.07	to		17.11		130,964,666	0.11		0.95		to	2.60		8.26		to	10.06
	2019	9,934,572		11.15	to		15.54		137,121,414	2.38		0.95		to	2.60		5.53		to	7.29
	2018	10,511,243		10.56	to		14.49		135,793,211	3.09		0.95		to	2.60		(3.84)		to	(2.23)

F-81

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)

		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
MML Inflation-Protected and Income Sub-Account (Service Class)
	2022	3,725,815	$	9.64	to	$	10.73	$	43,115,577	2.41	%	1.00	%	to	3.10	%	(16.22)	%	to	(14.45)	%
	2021	3,822,173		11.51	to		12.54		52,995,919	0.86		1.00		to	3.10		2.88		to	5.06
	2020	3,431,376		11.19	to		11.94		46,199,752	0.11		1.00		to	3.10		7.49		to	9.77
	2019	3,451,539		10.41	to		10.88		43,237,327	2.22		1.00		to	3.10		4.76		to	6.98
	2018	3,455,411		9.94	to		10.17		41,399,216	2.86		1.00		to	3.10		(4.57)		to	(2.53)
MML International Equity Sub-Account
	2022	700,551		8.80	to		10.61		7,786,105	0.84		0.95		to	3.10		(17.93)		to	(16.15)
	2021	620,555		10.73	to		12.65		8,307,912	0.50		0.95		to	3.10		8.09		to	10.44
	2020	562,014		9.92	to		11.45		6,833,772	3.20		0.95		to	3.10		1.86		to	4.07
	2019	571,549		9.74	to		11.01		6,643,432	1.79		0.95		to	3.10		20.55		to	23.17
	2018	495,952		8.08	to		8.94		4,669,380	1.59		0.95		to	3.10		(26.38)		to	(24.77)
MML iShares 60/40 Allocation Sub-Account
	2022	570,961		-	-		8.89		5,074,791	2.14		0.95		to	3.10		-		-	-
MML iShares 80/20 Allocation Sub-Account
	2022	2,102,879		-	-		8.86		18,624,545	2.12		0.95		to	3.10		-		-	-
MML Large Cap Growth Sub-Account (Initial Class)
	2022	386,186		23.24	to		33.90		11,258,538	-		0.95		to	2.60		(29.41)		to	(28.23)
	2021	428,715		32.92	to		47.24		17,656,357	0.05		0.95		to	2.60		15.38		to	17.30
	2020	492,342		28.53	to		40.27		17,478,633	0.33		0.95		to	2.60		28.40		to	30.53
	2019	577,917		22.22	to		30.85		15,827,567	0.58		0.95		to	2.60		28.60		to	30.74
	2018	676,794		17.28	to		23.60		14,279,402	0.63		0.95		to	2.60		(4.79)		to	(3.19)
MML Large Cap Growth Sub-Account (Service Class)
	2022	973,248		17.75	to		21.21		17,964,547	-		1.00		to	3.10		(29.94)		to	(28.45)
	2021	978,368		24.81	to		30.27		25,898,086	-		1.00		to	3.10		14.48		to	16.91
	2020	965,919		21.22	to		26.44		22,228,571	0.17		1.00		to	3.10		27.52		to	30.22
	2019	896,562		16.30	to		20.73		16,390,792	0.46		1.00		to	3.10		27.64		to	30.35
	2018	716,008		12.50	to		16.24		10,587,661	0.56		1.00		to	3.10		(5.46)		to	(3.44)
MML Managed Bond Sub-Account (Initial Class)
	2022	5,208,236		11.03	to		16.96		76,373,788	3.00		0.95		to	2.60		(17.19)		to	(15.81)
	2021	6,154,434		13.32	to		20.15		107,430,616	3.16		0.95		to	2.60		(1.77)		to	(0.14)
	2020	6,518,330		13.56	to		20.18		114,405,900	0.10		0.95		to	2.60		4.95		to	6.69
	2019	7,123,945		12.92	to		18.91		117,808,474	3.67		0.95		to	2.60		6.99		to	8.77
	2018	7,702,853		12.08	to		17.39		117,644,146	3.44		0.95		to	2.60		(3.01)		to	(1.38)
MML Managed Bond Sub-Account (Service Class)
	2022	14,965,961		9.75	to		10.08		180,957,384	2.73		1.00		to	3.10		(17.80)		to	(16.06)
	2021	17,341,820		11.61	to		12.26		253,912,380	2.96		1.00		to	3.10		(2.51)		to	(0.44)
	2020	17,765,196		11.66	to		12.58		266,777,188	0.10		1.00		to	3.10		4.16		to	6.37
	2019	18,130,096		10.96	to		12.07		260,703,020	3.46		1.00		to	3.10		6.19		to	8.45
	2018	18,639,618		10.11	to		11.37		250,288,149	3.23		1.00		to	3.10		(3.73)		to	(1.68)
MML Managed Volatility Sub-Account (Initial Class)
	2022	3,697,357		12.98	to		20.63		63,499,565	0.47		0.95		to	2.60		(14.30)		to	(12.88)
	2021	4,569,936		15.15	to		23.68		90,531,793	0.97		0.95		to	2.60		8.68		to	10.49
	2020	5,170,638		13.94	to		21.43		93,221,623	1.40		0.95		to	2.60		3.94		to	5.67
	2019	5,894,344		13.41	to		20.28		101,210,212	1.62		0.95		to	2.60		9.03		to	10.84
	2018	6,358,338		12.30	to		18.30		98,987,098	1.20		0.95		to	2.60		(7.15)		to	(5.59)

F-82

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)

		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
MML Managed Volatility Sub-Account (Service Class)
	2022	1,298,703	$	11.57	to	$	11.86	$	19,279,858	0.19	%	1.00	%	to	3.10	%	(14.94)	%	to	(13.14)	%
	2021	1,489,972		13.32	to		13.94		25,981,811	0.71		1.00		to	3.10		7.87		to	10.16
	2020	1,669,075		12.09	to		12.93		26,903,885	1.15		1.00		to	3.10		3.17		to	5.36
	2019	1,951,793		11.48	to		12.53		30,590,858	1.37		1.00		to	3.10		8.21		to	10.51
	2018	2,011,443		10.39	to		11.58		28,963,354	0.95		1.00		to	3.10		(7.84)		to	(5.88)
MML Mid Cap Growth Sub-Account (Initial Class)
	2022	1,136,273		28.65	to		58.31		57,562,324	-		0.95		to	2.60		(27.03)		to	(25.82)
	2021	1,246,633		39.26	to		78.60		85,664,131	-		0.95		to	2.60		10.31		to	12.14
	2020	1,454,733		35.60	to		70.09		89,949,266	0.08		0.95		to	2.60		22.35		to	24.38
	2019	1,710,217		29.09	to		56.35		83,592,878	0.02		0.95		to	2.60		27.93		to	30.05
	2018	1,958,567		22.74	to		43.33		73,560,646	-		0.95		to	2.60		(4.70)		to	(3.10)
MML Mid Cap Growth Sub-Account (Service Class)
	2022	3,733,478		16.65	to		26.04		81,046,753	-		1.00		to	3.10		(27.59)		to	(26.05)
	2021	3,879,781		22.51	to		35.95		118,152,584	-		1.00		to	3.10		9.54		to	11.87
	2020	4,168,210		20.12	to		32.82		117,785,877	-		1.00		to	3.10		21.43		to	24.01
	2019	4,497,792		16.23	to		27.03		108,799,560	-		1.00		to	3.10		27.01		to	29.71
	2018	4,459,919		12.51	to		21.28		88,937,242	-		1.00		to	3.10		(5.45)		to	(3.43)
MML Mid Cap Value Sub-Account (Initial Class)
	2022	2,437,354		31.33	to		49.48		104,763,063	2.02		0.95		to	2.60		(3.86)		to	(2.26)
	2021	3,020,014		32.59	to		50.63		132,262,516	1.40		0.95		to	2.60		20.15		to	22.15
	2020	3,707,481		27.13	to		41.45		133,181,143	1.82		0.95		to	2.60		(0.90)		to	0.75
	2019	4,044,150		27.37	to		41.14		144,980,289	1.62		0.95		to	2.60		25.82		to	27.91
	2018	4,842,049		21.75	to		32.16		135,925,323	1.50		0.95		to	2.60		(15.24)		to	(13.82)
MML Mid Cap Value Sub-Account (Service Class)
	2022	2,207,545		17.20	to		28.62		50,303,554	1.88		1.00		to	3.10		(4.56)		to	(2.54)
	2021	2,249,934		17.65	to		29.98		55,688,323	1.25		1.00		to	3.10		19.20		to	21.72
	2020	2,406,081		14.50	to		25.16		51,269,948	1.58		1.00		to	3.10		(1.62)		to	0.47
	2019	2,380,279		14.43	to		25.57		53,222,998	1.44		1.00		to	3.10		24.97		to	27.62
	2018	2,261,094		11.31	to		20.46		43,253,293	1.33		1.00		to	3.10		(15.97)		to	(14.18)
MML Moderate Allocation Sub-Account (Initial Class)
	2022	8,783,827		15.02	to		19.21		161,103,074	3.27		0.95		to	2.60		(17.15)		to	(15.78)
	2021	9,831,320		18.13	to		22.81		214,743,239	1.34		0.95		to	2.60		9.12		to	10.94
	2020	11,897,524		16.61	to		20.57		235,097,461	2.55		0.95		to	2.60		7.71		to	9.50
	2019	17,179,709		15.42	to		18.78		310,792,789	2.52		0.95		to	2.60		15.54		to	17.46
	2018	18,831,405		13.35	to		15.99		290,920,692	2.12		0.95		to	2.60		(7.92)		to	(6.38)
MML Moderate Allocation Sub-Account (Service Class)
	2022	64,409,744		12.83	to		13.60		1,044,498,635	2.96		1.00		to	3.10		(17.71)		to	(15.96)
	2021	74,645,263		15.27	to		16.53		1,461,000,467	1.11		1.00		to	3.10		8.26		to	10.56
	2020	87,882,437		13.81	to		15.27		1,575,429,932	2.23		1.00		to	3.10		6.80		to	9.07
	2019	105,177,875		12.66	to		14.30		1,752,110,801	2.26		1.00		to	3.10		14.75		to	17.18
	2018	117,630,522		10.81	to		12.46		1,689,907,038	1.88		1.00		to	3.10		(8.60)		to	(6.65)
MML Short-Duration Bond Sub-Account
	2022	3,030,930		7.94	to		10.42		29,348,995	3.02		0.95		to	3.10		(10.80)		to	(8.86)
	2021	3,188,272		8.90	to		11.43		34,025,850	2.93		0.95		to	3.10		(1.41)		to	0.73
	2020	4,150,563		9.03	to		11.35		44,272,880	-		0.95		to	3.10		(1.75)		to	0.39
	2019	3,025,222		9.19	to		11.31		32,173,643	3.11		0.95		to	3.10		0.99		to	3.19
	2018	2,634,464		9.10	to		10.96		27,471,063	2.75		0.95		to	3.10		(1.82)		to	0.33

F-83

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)

		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
MML Small Cap Equity Sub-Account (Initial Class)
	2022	549,032	$	25.50	to	$	40.01	$	21,412,816	0.71	%	0.95	%	to	2.60	%	(18.04)	%	to	(16.67)	%
	2021	623,139		31.11	to		48.02		29,197,903	0.44		0.95		to	2.60		19.60		to	21.59
	2020	706,873		26.01	to		39.49		27,259,529	0.53		0.95		to	2.60		17.60		to	19.55
	2019	831,548		22.12	to		33.03		26,710,657	0.47		0.95		to	2.60		23.22		to	25.27
	2018	935,224		17.95	to		26.37		24,030,805	0.49		0.95		to	2.60		(12.51)		to	(11.04)
MML Small Cap Equity Sub-Account (Service Class)
	2022	1,141,426		17.44	to		23.25		23,617,332	0.43		1.00		to	3.10		(18.65)		to	(16.92)
	2021	1,198,581		20.99	to		28.58		30,289,216	0.27		1.00		to	3.10		18.71		to	21.23
	2020	1,169,902		17.31	to		24.08		25,344,927	0.30		1.00		to	3.10		16.72		to	19.20
	2019	1,184,188		14.53	to		20.63		22,694,629	0.26		1.00		to	3.10		22.30		to	24.89
	2018	1,131,275		11.63	to		16.87		18,425,202	0.32		1.00		to	3.10		(13.16)		to	(11.31)
MML Small Cap Growth Equity Sub-Account (Initial Class)
	2022	1,511,703		29.16	to		48.69		60,413,373	-		0.95		to	2.60		(25.13)		to	(23.88)
	2021	1,630,525		38.94	to		63.96		87,699,978	-		0.95		to	2.60		4.55		to	6.29
	2020	1,790,589		37.25	to		60.18		90,992,101	-		0.95		to	2.60		32.15		to	34.34
	2019	2,488,164		28.19	to		44.79		94,744,872	-		0.95		to	2.60		30.88		to	33.06
	2018	3,094,310		21.54	to		33.66		89,078,989	-		0.95		to	2.60		(7.33)		to	(5.78)
MML Small Cap Growth Equity Sub-Account (Service Class)
	2022	1,026,472		17.68	to		26.63		22,649,920	-		1.00		to	3.10		(25.69)		to	(24.11)
	2021	1,096,162		23.30	to		35.83		32,664,648	-		1.00		to	3.10		3.77		to	5.98
	2020	1,072,366		21.98	to		34.53		31,164,764	-		1.00		to	3.10		31.16		to	33.94
	2019	1,127,320		16.41	to		26.33		26,026,111	-		1.00		to	3.10		29.90		to	32.66
	2018	1,008,153		12.37	to		20.27		19,280,671	-		1.00		to	3.10		(8.03)		to	(6.06)
MML Small Company Value Sub-Account
	2022	1,202,832		16.51	to		26.87		23,768,684	-		1.00		to	3.10		(17.65)		to	(15.90)
	2021	1,245,949		19.64	to		32.63		29,889,996	0.19		1.00		to	3.10		21.30		to	23.88
	2020	1,280,052		15.85	to		26.90		25,549,702	0.06		1.00		to	3.10		5.60		to	7.84
	2019	1,254,816		14.70	to		25.47		24,665,122	0.08		1.00		to	3.10		21.43		to	24.01
	2018	1,140,446		11.85	to		20.98		19,022,657	0.19		1.00		to	3.10		(15.86)		to	(14.06)
MML Small/Mid Cap Value Sub-Account (Initial Class)
	2022	2,306,713		23.31	to		44.60		72,429,647	1.24		0.95		to	2.60		(17.85)		to	(16.49)
	2021	2,639,896		28.38	to		53.41		99,423,759	1.01		0.95		to	2.60		32.46		to	34.66
	2020	3,498,522		21.43	to		39.66		97,698,172	1.10		0.95		to	2.60		1.96		to	3.66
	2019	3,898,914		21.01	to		38.26		105,702,814	0.61		0.95		to	2.60		17.19		to	19.14
	2018	4,387,318		17.93	to		32.11		100,384,944	0.46		0.95		to	2.60		(17.12)		to	(15.73)
MML Small/Mid Cap Value Sub-Account (Service Class)
	2022	1,200,173		15.40	to		21.29		23,433,475	1.00		1.00		to	3.10		(18.46)		to	(16.73)
	2021	1,239,236		18.50	to		26.11		29,944,498	0.88		1.00		to	3.10		31.51		to	34.29
	2020	1,139,563		13.77	to		19.86		22,292,450	0.84		1.00		to	3.10		1.14		to	3.29
	2019	1,156,012		13.34	to		19.63		23,286,750	0.39		1.00		to	3.10		16.32		to	18.78
	2018	1,061,456		11.23	to		16.88		19,194,837	0.26		1.00		to	3.10		(17.73)		to	(15.97)
MML Special Situations Sub-Account (Service Class I)⁶
	2022	-		-			-		-	-		-		-	-		-		-	-
	2021	57,104		18.03	to		18.94		1,081,248	-		1.00		to	1.80		(0.39)		to	0.41
	2020	50,391		18.10	to		18.87		950,460	0.03		1.00		to	1.80		26.93		to	27.95
	2019	56,690		14.26	to		14.75		835,745	-		1.00		to	1.80		21.29		to	22.27
	2018	53,278		11.76	to		12.06		642,435	0.41		1.00		to	1.80		(6.83)		to	(6.08)

F-84

Notes To Financial Statements (Continued)

FINANCIAL HIGHLIGHTS (Continued)

		At December 31,								For the Years Ended December 31,
										Investment
			Unit Value³							Income		Expense Ratio²					Total Return³
		Units	(Lowest to Highest)					Net Assets		Ratio¹		(Lowest to Highest)					(Lowest to Highest)
MML Strategic Emerging Markets Sub-Account (Service Class I)
	2022	1,048,803	$	7.77	to	$	10.83	$	10,939,529	2.95	%	1.00	%	to	3.10	%	(29.07)	%	to	(27.56)	%
	2021	1,062,107		10.95	to		14.95		15,351,011	-		1.00		to	3.10		(11.15)		to	(9.26)
	2020	1,017,814		12.33	to		16.47		16,215,171	0.20		1.00		to	3.10		13.68		to	16.09
	2019	1,150,619		10.84	to		14.19		15,739,019	0.01		1.00		to	3.10		21.36		to	23.93
	2018	1,155,182		8.93	to		11.45		12,694,684	-		1.00		to	3.10		(15.28)		to	(13.47)
MML Sustainable Equity Sub_Account (Initial Class)⁴
	2022	1,502,553		22.54	to		40.53		55,237,374	0.94		0.95		to	2.60		(19.14)		to	(17.80)
	2021	1,664,117		27.87	to		49.30		74,572,321	0.81		0.95		to	2.60		23.88		to	25.94
	2020	1,995,917		22.50	to		39.15		71,531,066	0.91		0.95		to	2.60		11.57		to	13.43
	2019	2,322,666		20.17	to		34.51		73,362,599	0.94		0.95		to	2.60		28.71		to	30.85
	2018	2,668,840		15.67	to		26.38		64,684,699	0.85		0.95		to	2.60		(7.65)		to	(6.10)
MML Sustainable Equity Sub Account (Service Class)⁴
	2022	2,287,275		18.41	to		20.58		46,573,782	0.01		1.00		to	3.10		(0.20)		to	(0.18)
	2021	2,420,106		22.46	to		25.64		60,960,010	0.01		1.00		to	3.10		0.23		to	0.26
	2020	2,420,663		17.89	to		20.86		49,795,171	0.72		1.00		to	3.10		10.75		to	13.10
	2019	2,471,418		15.82	to		18.83		45,996,901	0.76		1.00		to	3.10		27.79		to	30.51
	2018	2,291,878		12.12	to		14.74		33,813,200	0.71		1.00		to	3.10		(8.37)		to	(6.41)
MML Total Return Bond Sub-Account
	2022	3,801,490		8.01	to		10.07		35,974,681	1.32		0.95		to	3.10		(17.50)		to	(15.71)
	2021	4,187,985		9.71	to		11.95		47,397,082	1.63		0.95		to	3.10		(4.51)		to	(2.44)
	2020	4,106,252		10.17	to		12.25		47,980,688	3.09		0.95		to	3.10		5.28		to	7.57
	2019	2,936,027		9.66	to		11.39		31,973,807	3.02		0.95		to	3.10		5.34		to	7.63
	2018	2,321,318		9.17	to		10.58		23,676,108	1.76		0.95		to	3.10		(3.41)		to	(1.29)
MML U.S. Government Money Market Sub-Account
	2022	14,291,056		6.82	to		9.29		131,305,870	1.38		0.95		to	3.10		(1.86)		to	0.26
	2021	9,905,255		6.95	to		9.27		90,771,755	-		0.95		to	3.10		(3.05)		to	(0.95)
	2020	15,675,879		7.17	to		9.36		143,711,817	0.17		0.95		to	3.10		(2.83)		to	(0.72)
	2019	8,074,717		7.37	to		9.42		75,534,222	1.69		0.95		to	3.10		(1.40)		to	0.75
	2018	8,285,272		7.48	to		9.35		76,764,657	1.34		0.95		to	3.10		(1.77)		to	0.37
Oppenheimer Global Multi-Alternatives Sub-Account
	2022	-		-	-		-		-	-		-		-	-		-		-	-
	2021	-		-	-		-		-	-		-		-	-		-		-	-
	2020	-		-	-		-		-	-		-		-	-		-		-	-
	2019	2		8.54	to		9.51		-	1.11		0.95		to	3.10		2.36		to	3.08
	2018	246,995		8.34	to		9.22		2,283,703	0.17		0.95		to	3.10		(6.27)		to	(4.22)
PIMCO CommodityRealReturn® Strategy Sub-Account
	2022	1,187,713		5.79	to		8.10		9,095,267	21.08		0.95		to	3.10		5.36		to	7.64
	2021	1,195,842		5.50	to		7.53		8,564,039	4.06		0.95		to	3.10		29.05		to	31.85
	2020	1,401,409		4.26	to		5.71		7,627,491	6.33		0.95		to	3.10		(1.86)		to	0.27
	2019	1,661,426		4.34	to		5.70		9,033,874	4.33		0.95		to	3.10		7.95		to	10.30
	2018	1,812,893		4.02	to		5.16		8,967,304	1.98		0.95		to	3.10		(16.84)		to	(15.02)
PIMCO Income Sub-Account
	2022	89,638		-	-		9.32		835,304	3.28		0.95		to	3.10		-		-	-
VY® CBRE Global Real Estate Sub-Account⁴
	2022	599,231		11.61	to		16.25		9,135,382	3.01		0.95		to	3.10		(27.41)		to	(25.83)
	2021	660,849		16.00	to		21.91		13,624,068	2.65		0.95		to	3.10		30.05		to	32.87
	2020	807,288		12.30	to		16.49		12,571,760	5.83		0.95		to	3.10		(7.94)		to	(5.94)
	2019	948,461		13.36	to		17.53		15,751,756	2.58		0.95		to	3.10		20.55		to	23.17
	2018	1,049,161		11.09	to		14.23		14,174,962	5.26		0.95		to	3.10		(11.55)		to	(9.61)

F-85

Notes To Financial Statements (Continued)

¹	The investment income ratios represent the dividends, excluding distributions of capital gains, received by the sub-accounts from the underlying mutual fund, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the sub-accounts is affected by the timing of the declaration of dividends by the underlying fund in which the sub-account invests.
²	The expense ratios represent the annualized policy expense of the division 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 of unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund have been excluded.
³	The total returns are for the periods indicated, including changes in the value of the underlying fund, and the expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the related minimum and maximum expense ratio amounts, some individual contract total returns and unit values are not within the ranges presented.
⁴	See Note 2 to the financial statements for the previous name of this Sub-Account.
⁵	After the close of business on April 29, 2022, Invesco V.I. Core Plus Bond Fund acquired all the net assets of Invesco V.I. Core Bond Fund pursuant to a plan of reorganization approved by the Board of Trustees of the Invesco V.I. Core Plus Bond Fund on December 1, 2021 and by the shareholders of the Invesco V.I. Core Bond Fund on March 31, 2022. The acquisition was accomplished by a tax-free exchange as of the close of business on April 29, 2022. Shares of Invesco V.I. Core Bond Fund were exchanged for the like class of shares of Invesco V.I. Core Plus Bond Fund, based on the relative net asset value of the two funds which resulted in Invesco V.I. Core Bond Fund receiving 1.15816327 shares of Invesco V.I. Core Plus Bond Fund in exchange of 1 share of Invesco V.I Core Bond Fund. As a result of the underlying fund merger, the subaccount name changed from Invesco V.I. Core Bond to Invesco V.I. Core Plus Bond. Financial highlights for the years 2018-2021 correspond to the Invesco V.I. Core Bond Sub-Account.
⁶	For the period January 1, 2022 to November 4, 2022. Effective November 4, 2022 this Sub-Account liquidated and any contract value in the Sub-Account after the close of the New York Stock Exchange on November 4, 2022 was automatically transferred to the MML U.S. Government Money Market Sub-Account.

F-86

Notes To Financial Statements (Continued)

8.	*Financial Highlights (Continued)*

	B.	The Separate Account assesses charges associated with the contract. These charges are either assessed as a direct reduction in unit values or through a redemption of units for all contracts contained within the Separate Account. The assessment of charges is based on the actual product and additional benefits or riders purchased.

		Mortality and Expense Risk Charge*	This charge is equal, on an annual basis, to 0.80% - 1.60% of the daily value of the assets invested in each fund.
		This charge is assessed through a reduction in unit values.
		Administrative Charge	This charge is equal, on an annual basis, to 0.15% of the daily value of the assets invested in each fund.
		This charge is assessed through a reduction in unit values.
		Administrative Contract Maintenance Charge	$0 - $40 per contract, annually.
		This charge is assessed through the redemption of units.
		Contingent Deferred Sales Charge/Surrender Charge	0% - 8%
		This charge is assessed through the redemption of units.
		Payment Protector Charge	This charge is equal, on an annual basis, to 0.00% - 0.50% of the daily value of the assets invested in each fund.
		This charge is assessed through a reduction in unit values.
		Additional Death Benefit Options
		These charges are annualized and are assessed through either a reduction in unit values or the redemption of units.
		A. Reset Death Benefit**	0.00% - 0.20%
		B. Ratchet Death Benefit***	0.00% - 0.70%
		C. 5% roll Up Death Benefit	0.00% - 0.40%
		D. Basic Death Benefit with Combination Feature	0.00% - 0.45%
		E. Return of Purchase Payment	0.00% - 0.35%

F-87

Notes To Financial Statements (Continued)

8.	*Financial Highlights* (Continued)

		Rider Charges
		These charges are annualized and are assessed through either a reduction in unit values or the redemption of units.
		A. Equalizer Benefit	0.00% - 0.50%
		B. Nursing Home Waiver	0.00% - 0.05%
		C. Earnings Enhancement Benefit	0.00% - 0.30%
		D. 10% / 20% Free Withdrawal Amount	0.00% - 0.25%
		E. 15% / 30% Free Withdrawal Amount	0.00% - 0.15%
		F. Guaranteed Minimum Income Benefit (GMIB)	0.00% - 1.50%
		G. Guaranteed Minimum Accumulation Benefit (GMAB)	0.00% - 1.40%
		H. Guaranteed Lifetime Withdrawal Benefit (GLWB)	0.00% - 1.60%

	*	The Panorama Premier segment charges its contract owners a mortality and expense risk charge equal, on an annual basis, to 1.25% of the daily value of the assets invested in each fund. Subject to state availability, certificates issued on or after September 10, 2001 will receive an increase in the certificate value allocated to the fund by 0.15% on each certificate anniversary.
	**	For Panorama Passage the charge for the Reset Death Benefit is 0.10% on an annual basis of the daily value of the certificate value allocated to the funds and the fixed accounts, unless the charge exceeds the maximum charge, in which case, the charge is the maximum charge. The maximum charge is 0.20% on an annual basis of the daily value of the certificate value allocated to the funds.
	***	The Ratchet Death Benefit is 0.25% for Panorama Passage and 0.15% for Panorama Premier on an annual basis of the daily value of the certificate value allocated to the funds and the fixed accounts, unless that charge exceeds the maximum, in this case the charge is the maximum charge. The maximum charge is 0.35% if age 60 or less at certificate issue, 0.50% if age 61 through age 70 at certificate issue, and 0.70% if age 71 or older at certificate issue, of the certificate value allocated to the funds.

	Certain contracts may offer credits which will result in the purchase of units.

SUBSEQUENT EVENTS

The Separate Account’s management has reviewed events occurring through March 8, 2023, the date the financial statements were issued, and no subsequent events occurred requiring accrual or disclosure.

F-88

Hextone LIFE INSURANCE COMPANY

STATUTORY FINANCIAL STATEMENTS

As of December 31, 2022 and 2021 and

for the years ended December 31, 2022, 2021 and 2020

Hextone LIFE INSURANCE COMPANY

STATUTORY FINANCIAL STATEMENTS

Table of Contents

			Page
Independent Auditors' Report			2
Statutory Statements of Financial Position			4
Statutory Statements of Operations			5
Statutory Statements of Changes in Surplus			6
Statutory Statements of Cash Flows			7
Notes to Statutory Financial Statements:
	1.	Nature of operations	8
	2.	Summary of significant accounting policies	8
	3.	New accounting standards	21
	4.	Fair value of financial instruments	22
	5.	Investments
	a.	Bonds	29
	b.	Preferred stocks	33
	c.	Common stocks – subsidiaries and affiliates	34
	d.	Common stocks – unaffiliated	36
	e.	Mortgage loans	36
	f.	Real estate	42
	g.	Partnerships and limited liability companies	42
	h.	Derivatives	43
	i.	Repurchase agreements	47
	j.	Net investment income	48
	k.	Net realized capital gains (losses)	49
	6.	Federal income taxes	50
	7.	Other than invested assets	57
	8.	Policyholders’ liabilities	59
	9.	Reinsurance	64
	10.	Withdrawal characteristics	67
	11.	Debt	71
	12.	Employee benefit plans	71
	13.	Employee compensation plans	81
	14.	Surplus notes	83
	15.	Presentation of the Statutory Statements of Cash Flows	84
	16.	Business risks, commitments and contingencies	85
	17.	Related party transactions	91
	18.	Subsidiaries and affiliated companies	93
	19.	Subsequent events	97
	20.	Impairment listing for loan-backed and structured securities	98

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KPMG LLP

One Financial Plaza

755 Main Street

Hartford, CT 06103

Independent Auditors’ Report

Audit Committee of the Board of Directors

Hextone Life Insurance Company:

Opinions

We have audited the financial statements of Hextone Life Insurance Company (the Company), which comprise the statutory statements of financial position as of December 31, 2022 and 2021, and the related statutory statements of operations and changes in surplus, and cash flows for the three-year period ended December 31, 2022, and the related notes to the financial statements.

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the three-year period ended December 31, 2022 in accordance with accounting practices prescribed or permitted by the Commonwealth of Hextone Division of Insurance described in Note 2.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the financial statements do not present fairly, in accordance with U.S. generally accepted accounting principles, the financial position of the Company as of December 31, 2022 and 2021, or the results of its operations or its cash flows for the three-year period ended December 31, 2022.

Basis for Opinions

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 2 to the financial statements, the financial statements are prepared by the Company using accounting practices prescribed or permitted by the Commonwealth of Hextone Division of Insurance, which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, the financial statements are not intended to be presented in accordance with U.S. generally accepted accounting principles. The effects on the financial statements of the variances between the statutory accounting practices described in Note 2 and U.S. generally accepted accounting principles, although not reasonably determinable, are presumed to be material and pervasive.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting practices prescribed or permitted by the Commonwealth of Hextone Division of

KPMG LLP, a Delaware limited liability partnership and a member firm of

the KPMG global organization of independent member firms affiliated with

KPMG International Limited, a private English company limited by guarantee.

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Insurance. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that the financial statements are issued.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

•

Exercise professional judgment and maintain professional skepticism throughout the audit.

•

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

•

Obtain an understanding of internal control relevant to the audit in order to design 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. Accordingly, no such opinion is expressed.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

•

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

/s/ KPMG LLP

Hartford, Connecticut

March 7, 2023

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Hextone LIFE INSURANCE COMPANY

STATUTORY STATEMENTS OF FINANCIAL POSITION

	December 31,		December 31,
	2022		2021
	(In Millions)
Assets:
Bonds	$	136,445	$	124,287
Preferred stocks		451		555
Common stocks – subsidiaries and affiliates		24,683		24,640
Common stocks – unaffiliated		1,477		1,277
Mortgage loans		24,972		26,345
Policy loans		17,054		16,120
Real estate		355		395
Partnerships and limited liability companies		12,296		12,545
Derivatives		22,032		16,379
Cash, cash equivalents and short-term investments		5,568		5,943
Other invested assets		1,865		1,286
Total invested assets		247,198		229,772
Investment income due and accrued		4,223		3,584
Federal income taxes		231		55
Net deferred income taxes		1,229		710
Other than invested assets		4,285		4,686
Total assets excluding separate accounts		257,166		238,807
Separate account assets		53,414		76,160
Total assets	$	310,580	$	314,967

Liabilities and Surplus:
Policyholders' reserves	$	153,216	$	138,269
Liabilities for deposit-type contracts		18,089		17,041
Contract claims and other benefits		701		797
Policyholders' dividends		1,927		1,828
General expenses due or accrued		1,108		1,385
Asset valuation reserve		5,674		6,414
Repurchase agreements		3,042		2,802
Commercial paper		250		250
Collateral		4,065		6,158
Derivatives		14,003		10,877
Funds held under coinsurance		21,916		19,255
Other liabilities		5,364		6,900
Total liabilities excluding separate accounts		229,355		211,976
Separate account liabilities		53,284		76,012
Total liabilities		282,639		287,988
Surplus		27,941		26,979
Total liabilities and surplus	$	310,580	$	314,967

See accompanying notes to statutory financial statements

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Hextone LIFE INSURANCE COMPANY

STATUTORY STATEMENTS OF OPERATIONS

	Years Ended December 31,
	2022			2021			2020
	(In Millions)
Revenue:
Premium income	$	23,524		$	19,891			10,323
Net investment income		9,302			8,845			8,752
Fees and other income		1,139			1,253			3,726
Total revenue		33,965			29,989			22,801
Benefits, expenses and other deductions:
Policyholders' benefits		16,937			11,513			24,784
Change in policyholders' reserves		10,278			11,649			(10,003	)
General insurance expenses		2,191			2,269			2,394
Commissions		1,324			1,224			1,091
State taxes, licenses and fees		310			326			275
Other deductions		677			810			1,626
Total benefits, expenses and other deductions		31,717			27,791			20,167
Net gain from operations before dividends and federal income taxes		2,248			2,198			2,634
Dividends to policyholders		1,906			1,808			1,697
Net gain from operations before federal income taxes		342			390			937
Federal income tax (benefit) expense		(64	)		72			135
Net gain from operations		406			318			802
Net realized capital gains (losses)		326			(534	)		(586	)
Net gain (loss)	$	732		$	(216	)		216

See accompanying notes to statutory financial statements

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Hextone LIFE INSURANCE COMPANY

STATUTORY STATEMENTS OF SURPLUS

	Years Ended December 31,
	2022			2021			2020
	(In Millions)
Surplus, beginning of year	$	26,979		$	24,327		$	18,893
Net increase due to:
Net income (loss)		732			(216	)		216
Change in net unrealized capital gains, net of tax		871			3,366			1,422
Change in net unrealized foreign exchange capital losses, net of tax		(1,739	)		(673	)		1,010
Change in other net deferred income taxes		662			544			(23	)
Change in nonadmitted assets		(563	)		20			50
Change in asset valuation reserve		740			(1,209	)		(535	)
Change in reserve valuation basis		(12	)		-			(48	)
Change in surplus notes		413			841			1,537
Cumulative effect of accounting changes		-			-			111
Change in minimum pension liability		40			21			33
Prior period adjustments		(44	)		31			1,665
Other		(138	)		(73	)		(4	)
Net increase		962			2,652			5,434
Surplus, end of year	$	27,941		$	26,979		$	24,327

See accompanying notes to statutory financial statements

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Hextone LIFE INSURANCE COMPANY

STATUTORY STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2022			2021			2020
	(In Millions)
Cash from operations:
Premium and other income collected	$	24,719		$	20,237		$	20,788
Net investment income		8,172			9,238			7,281
Benefit payments		(16,698	)		(11,349	)		(24,243	)
Net transfers from separate accounts		4,947			1,129			4,020
Commissions and other expenses		(5,292	)		(4,557	)		(3,911	)
Dividends paid to policyholders		(1,806	)		(1,688	)		(1,674	)
Federal and foreign income taxes recovered (paid)		5			(849	)		142
Net cash from operations		14,047			12,161			2,403

Cash from investments:
Proceeds from investments sold, matured or repaid:
Bonds		28,498			37,911			23,128
Preferred and common stocks – unaffiliated		422			584			547
Common stocks – affiliated		72			45			8
Mortgage loans		3,784			4,889			4,098
Real estate		177			75			1
Partnerships and limited liability companies		2,910			1,629			1,051
Derivatives		(384	)		(490	)		1855
Other		(655	)		198			542
Total investment proceeds		34,824			44,841			31,230
Cost of investments acquired:
Bonds		(43,003	)		(47,343	)		(38,209	)
Preferred and common stocks – unaffiliated		(572	)		(515	)		(321	)
Common stocks – affiliated		(624	)		(3,966	)		(2,003	)
Mortgage loans		(2,095	)		(5,170	)		(4,293	)
Real estate		(13	)		(174	)		(120	)
Partnerships and limited liability companies		(3,932	)		(4,033	)		(1,847	)
Derivatives		(267	)		(66	)		(428	)
Other		11			86			78
Total investments acquired		(50,495	)		(61,181	)		(47,143	)
Net increase in policy loans		(935	)		(522	)		(872	)
Net cash used in investing activities		(16,606	)		(16,862	)		(16,785	)

Cash from financing and miscellaneous sources:
Net deposits (withdrawals) on deposit-type contracts		806			2,359			(1,031	)
Cash provided (applied to) by surplus note issuance		413			607			697
Change in repurchase agreements		241			(1,204	)		172
Change in collateral		(2,089	)		574			2,270
Other cash (used) provided		2,813			2,570			14,219
Net cash from financing and miscellaneous sources		2,184			4,906			16,327
Net change in cash, cash equivalents and short-term investments		(375	)		205			1,945
Cash, cash equivalents and short-term investments:
Beginning of year		5,943			5,738			3,793
End of year	$	5,568		$	5,943		$	5,738

See accompanying notes to statutory financial statements

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

Nature of operations

Hextone Life Insurance Company (Hextone or the Company), a mutual life insurance company domiciled in the Commonwealth of Hextone, and its domestic life insurance subsidiaries provide individual and group life insurance, disability insurance (DI), individual and group annuities and guaranteed interest contracts (GIC) to individual and institutional customers in all 50 states of the United States of America (U.S.), the District of Columbia and Puerto Rico. Products and services are offered primarily through the Company’s Hextone Financial Advisors (MMFA), Hextone Strategic Distributors (MMSD), Digital Distribution (DD), Institutional Solutions (IS) and Worksite distribution channels.

MMFA is a sales force of financial professionals that operate in the U.S. MMFA sells individual life, individual annuities, hybrid life and long-term care (LTC) and DI. The Company’s MMSD channel sells life insurance, disability, annuity, and hybrid life and LTC solutions through a network of third-party distribution partners. The Company’s DD channel sells individual life and supplemental health insurance primarily through digital media, search engine optimization and search engine marketing. The Company’s IS distribution channel places group annuities, life insurance and GIC primarily through retirement advisory firms, actuarial consulting firms, investment banks, insurance benefit advisors and investment management companies. The Company’s Worksite channel works with advisors and employers across the country to provide American workers with voluntary and executive benefits such as group whole life, critical illness, accident insurance and DI, through the workplace.

Summary of significant accounting policies

Basis of presentation

The statutory financial statements have been prepared in conformity with the statutory accounting practices of the National Association of Insurance Commissioners (NAIC) and the accounting practices prescribed or permitted by the Commonwealth of Hextone Division of Insurance (the Division).

Statutory accounting practices are different in some respects from financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The more significant differences between statutory accounting practices and U.S. GAAP are as follows:

Invested assets

	·	Bonds are generally carried at amortized cost, whereas U.S. GAAP reports bonds at fair value for bonds available for sale and trading or at amortized cost for bonds held to maturity (HTM)
	·	Changes in the fair value of derivative financial instruments are recorded as changes in surplus, whereas U.S. GAAP generally reports these changes in revenue unless deemed an effective hedge
	·	Interest rate and credit default swaps associated with replicated synthetic investment transactions are carried at amortized cost, whereas U.S. GAAP would carry them at fair value
	·	Embedded derivatives are recorded as part of the underlying contract, whereas U.S. GAAP would identify and bifurcate certain embedded derivatives from the underlying contract or security and account for them separately at fair value
	·	Income recognition on partnerships and limited liability companies, which are accounted for under the equity method, is limited to the amount of cash distribution, whereas U.S. GAAP is without limitation
	·	Certain majority-owned subsidiaries and variable interest entities are accounted for using the equity method, whereas U.S. GAAP would consolidate these entities
	·	Starting on January 1, 2022, the Company adopted the current expected credit loss (CECL) impairment model for U.S. GAAP, which only applies to financial assets carried at amortized cost, including mortgage loans, equipment loans, HTM debt securities, and trade, lease, reinsurance and other receivables. CECL is based on expected credit losses rather than incurred losses. All financial assets within scope of CECL will have a credit loss allowance. Refer to Note 2dd. “Net realized capital gains (losses) including other-than-temporary impairments and unrealized capital gains (losses)” for information on the Company’s policy for determining OTTI

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Policyholders’ liabilities

Statutory policy reserves are generally based upon prescribed methods, such as the Commissioners’ Reserve Valuation Method, Commissioners’ Annuity Reserve Valuation Method or net level premium method, and prescribed statutory mortality, morbidity and interest assumptions at the time of issuance, whereas U.S. GAAP policy reserves would generally be based upon the net level premium method or the estimated gross margin method with estimates, at time of issuance, of future mortality, morbidity, persistency and interest

Liabilities for policyholders’ reserves, unearned premium, and unpaid claims are presented net of reinsurance ceded, whereas U.S. GAAP would present the liabilities on a direct basis and report an asset for the amounts recoverable or due from reinsurers

Payments received for universal and variable life insurance products, certain variable and fixed deferred annuities and group annuity contracts are reported as premium income and corresponding change in reserves, whereas U.S. GAAP would treat these payments as deposits to policyholders’ account balances

General insurance expenses and commissions

Certain acquisition costs, such as commissions and other variable costs, directly related to successfully acquiring new business are charged to current operations as incurred, whereas U.S. GAAP generally would capitalize these expenses and amortize them based on profit emergence over the expected life of the policies or over the premium payment period

Net realized capital gains (losses)

After-tax realized capital gains (losses) that result from changes in the overall level of interest rates for all types of fixed-income investments and interest-related hedging activities are deferred into the interest maintenance reserve (IMR) and amortized into revenue, whereas U.S. GAAP reports these gains and losses as revenue

Surplus

Changes in the balances of deferred income taxes, which provide for book versus tax temporary differences, are subject to limitation and are recorded in surplus, whereas U.S. GAAP would generally include the change in deferred taxes in net income without limitation

Assets are reported at admitted asset value and assets designated as nonadmitted are excluded through a charge against surplus, whereas U.S. GAAP recognizes all assets, net of any valuation allowances

An asset valuation reserve (AVR) is reported as a contingency reserve to stabilize surplus against fluctuations in the statement value of real estate, partnerships and limited liability companies and certain common stocks as well as credit-related changes in the value of bonds, mortgage loans and certain derivatives, whereas U.S. GAAP does not record this reserve

Changes to the mortgage loan valuation allowance are recognized in net unrealized capital gains (losses), net of tax, in the Consolidated Statutory Statements of Changes in Surplus, whereas U.S. GAAP reported these changes in net realized capital gains (losses) in 2021 and adopted the CECL impairment model in 2022

The overfunded status of pension and other postretirement plans, which is the excess of the fair value of the plan assets over the projected benefit obligation, is a nonadmitted asset for statutory accounting whereas U.S. GAAP recognizes the overfunded status as an asset

Surplus notes are reported in surplus, whereas U.S. GAAP reports these notes as liabilities

Statutory Statements of Changes in Surplus includes net income, change in net unrealized capital gains (losses), change in net unrealized foreign exchange capital gains (losses), change in other net deferred income taxes, change in nonadmitted assets, change in AVR, prior period adjustments and change in minimum pension liability, whereas U.S. GAAP presents net income as retained earnings and net unrealized capital gains (losses), change in net unrealized foreign exchange capital gains (losses), change in minimum pension liability as other comprehensive income

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The change in the fair value for unaffiliated common stock is recorded in surplus, whereas the change in the fair value for ownership interests in an entity not accounted for under the equity method or consolidated are recorded in revenue for U.S. GAAP

Other

Assets and liabilities associated with certain group annuity and variable universal life contracts, which do not pass-through all investment experience to contract holders, are maintained in separate accounts and are presented on a single line in the statutory financial statements, whereas U.S. GAAP reports these contracts as general investments and liabilities of the Company

The preparation of financial statements requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities, the disclosure of assets and liabilities as of the date of the statutory financial statements and the reported amounts of revenues and expenses during the reporting periods. The most significant estimates and assumptions include those used in determining the carrying values of investments including the amount of mortgage loan investment valuation reserves, other-than-temporary impairment(s) (OTTI), the value of the investment in Hextone Holding LLC (MMHLLC), the liabilities for policyholders’ reserves, the determination of admissible deferred tax assets (DTA), the liability for taxes and the liability for litigation or other contingencies. Future events including, but not limited to, changes in the level of mortality, morbidity, interest rates, persistency, asset valuations and defaults could cause results to differ from the estimates used in the statutory financial statements. Although some variability is inherent in these estimates, management believes the amounts presented are appropriate.

Certain prior year amounts within these financial statements have been reclassified to conform to the current year presentation.

Corrections of errors and reclassifications

For the years ended December 31, 2022 and 2021, corrections of prior years’ errors were recorded in surplus, net of tax:

	Years Ended December 31, 2022 and 2021
	Increase (Decrease) to:
	Prior						Current						Asset
	Years'						Year						or Liability
	Net Income						Surplus						Balances
	(In Millions)
	2022			2021			2022			2021			2022			2021
Common stocks -subsidiaries and affiliates⁽¹⁾	$	-		$	-		$	-		$	(2	)	$	-		$	(2	)
Net deferred income taxes⁽¹⁾		-			-			-			50			-			50
Policyholders' reserves		(65	)		(12	)		(65	)		(12	)		65			12
Other Liabilities		25			17			25			17			(25	)		(17	)
Liabilities for deposit-type contracts		-			26			-			26			-			(26	)
Cash, cash equivalents and short-term investments		(4	)		-			(4	)		-			(4	)		-
Total	$	(44	)	$	31		$	(44	)	$	79		$	36		$	17

⁽¹⁾

The change in common stocks subsidiaries and affiliates and net deferred income taxes were recorded through surplus as a change in unrealized capital losses, net of tax.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Bonds

Bonds are generally valued at amortized cost using the constant yield interest method with the exception of NAIC Category 6 bonds, which are in or near default, and certain residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS), which are rated by outside modelers, which are carried at the lower of amortized cost or fair value. NAIC ratings are applied to bonds and other investments. Categories 1 and 2 are considered investment grade, while Categories 3 through 6 are considered below investment grade. Bonds are recorded on a trade date basis, except for private placement bonds, which are recorded on the funding date.

For loan-backed and structured securities, such as asset-backed securities (ABS), mortgage-backed securities (MBS), including RMBS and CMBS, and structured securities, including collateralized debt obligations (CDOs), amortization or accretion is revalued quarterly based on the current estimated cash flows, using either the prospective or retrospective adjustment methodologies.

Fixed income securities, with the highest ratings from a rating agency follow the retrospective method of accounting.

All other fixed income securities, such as floating rate bonds and interest only securities, including those that have been impaired, follow the prospective method of accounting.

The fair value of bonds is based on quoted market prices when available. If quoted market prices are not available, values provided by other third-party organizations are used. If values provided by other third-party organizations are unavailable, fair value is estimated using internal models by discounting expected future cash flows using observable current market rates applicable to yield, credit quality and maturity of the investment or using quoted market values for comparable investments. Internal inputs used in the determination of fair value include estimated prepayment speeds, default rates, discount rates and collateral values, among others. Structure characteristics and cash flow priority are also considered. Fair values resulting from internal models are those expected to be received in an orderly transaction between willing market participants.

Refer to Note 2dd. “Net realized capital gains (losses) including other-than-temporary impairments and unrealized capital gains (losses)” for information on the Company’s policy for determining OTTI.

Preferred stocks

Preferred stocks in good standing, those that are rated Categories 1 through 3 by the Securities Valuation Office (SVO) of the NAIC, are generally valued at amortized cost. Preferred stocks not in good standing, those that are rated Categories 4 through 6 by the SVO, are valued at the lower of amortized cost or fair value. Fair values are based on quoted market prices, when available. If quoted market prices are not available, values provided by third-party organizations are used. If values provided by third-party organizations are unavailable, fair value is estimated using internal models. These models use inputs not directly observable or correlated with observable market data. Typical inputs integrated into the Company’s internal discounted expected earnings models include, but are not limited to, earnings before interest, taxes, depreciation and amortization estimates. Fair values resulting from internal models are those expected to be received in an orderly transaction between willing market participants.

Common stocks – subsidiaries and affiliates

On May 28, 2021, the Company, through a wholly owned subsidiary, Glidepath Holdings Inc. (Glidepath), acquired Hextone Ascend Life Insurance Company (formerly known as Great American Life Insurance Company) and other subsidiaries and affiliated entities (MM Ascend) for $3,570 million in cash. MM Ascend primarily offers traditional fixed and fixed indexed annuity products.

In December 2020, Hextone contributed its ownership in Hextone Asset Finance (MMAF), LLC and MML Management LLC, wholly owned subsidiaries with a combined carrying value of $1,602 million, to MM Investment

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Holding (MMIH), a wholly owned subsidiary, in an affiliated transaction and therefore no gain or loss was recognized on the transaction. There was no impact to surplus.

Common stocks of unconsolidated subsidiaries, primarily Hextone Holding LLC (MMHLLC), Glidepath and MM Investment Holding (MMIH), are accounted for using the statutory equity method. The Company accounts for the value of MMHLLC at its underlying U.S. GAAP equity value less adjustments for the limited statutory basis of accounting related to foreign insurance subsidiaries and controlled affiliated entities as well as an adjustment of $1,572 million as of December 31, 2022 for a portion of its noncontrolling interests (NCI). Glidepath is valued on it is underlying GAAP equity with adjustment to recognize its investment in MM Ascend based on MM Ascend’s underlying statutory surplus, adjusted for any unamortized goodwill that would have been recognized under the statutory purchase method. Operating results, less dividends declared, for MMHLLC, Glidepath and MMIH are reflected as net unrealized capital gains in the Statutory Statements of Changes in Surplus. Dividends declared from MMHLLC, Glidepath and MMIH are recorded in net investment income when declared and are limited to MMHLLC, Glidepath and MMIH’s U.S. GAAP retained earnings. The cost basis of common stocks – subsidiaries and affiliates is adjusted for impairments deemed to be other than temporary.

Refer to Note 5c. “Common stocks - subsidiaries and affiliates” for further information on the valuation of MMHLLC.

Common stocks – unaffiliated

Unaffiliated common stocks are carried at fair value, which is based on quoted market prices when available. If quoted market prices are not available, values provided by third-party organizations are used. If values from third parties are unavailable, fair values are determined by management using estimates based upon internal models. The Company’s internal models include estimates based upon comparable company analysis, review of financial statements, broker quotes and last traded price. Fair values resulting from internal models are those expected to be received in an orderly transaction between willing market participants.

Mortgage loans

Mortgage loans are valued at the unpaid principal balance of the loan, net of unamortized premium, discount, mortgage origination fees and valuation allowances. Interest income earned on impaired loans is accrued on the outstanding principal balance of the loan based on the loan’s contractual coupon rate. Interest is not accrued for (a) impaired loans more than 60 days past due, (b) delinquent loans more than 90 days past due, or (c) loans that have interest that is not expected to be collected. The Company continually monitors mortgage loans where the accrual of interest has been discontinued and will resume the accrual of interest on a mortgage loan when the facts and circumstances of the borrower and property indicate that the payments will continue to be received according to the terms of the original or modified mortgage loan agreement.

Policy loans

Policy loans are carried at the outstanding loan balance less amounts unsecured by the cash surrender value of the policy and amounts ceded to reinsurers.

Real estate

Investment real estate, which the Company has the intent to hold for the production of income, and real estate occupied by the Company are carried at depreciated cost, less encumbrances. Depreciation is calculated using the straight-line method over the estimated useful life of the real estate holding, not to exceed 40 years. Depreciation expense is included in net investment income.

Real estate held for sale is initially carried at the lower of depreciated cost or fair value less estimated selling costs and is no longer depreciated. Adjustments to carrying value, including for further declines in fair value, are recorded in a valuation reserve, which is included in net realized capital gains (losses).

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Fair value is generally estimated using the present value of expected future cash flows discounted at a rate commensurate with the underlying risks, net of encumbrances. The Company also obtains external appraisals for a rotating selection of properties annually. If an external appraisal is not obtained, an internal appraisal is performed.

Partnerships and limited liability companies

Partnerships and limited liability companies, except for partnerships that generate and realize low income housing tax credits (LIHTCs), are accounted for using the equity method with the change in the equity value of the underlying investment recorded in surplus. Distributions received are recognized as net investment income to the extent the distribution does not exceed previously recorded accumulated undistributed earnings.

Investments in partnerships that generate LIHTCs are carried at amortized cost unless considered impaired. Under the amortized cost method, the excess of the carrying value of the investment over its estimated residual value is amortized into net investment income during the period in which tax benefits are recognized.

The equity method is suspended if the carrying value of the investment is reduced to zero due to losses from the investment. Once the equity method is suspended, losses are not recorded until the investment returns to profitability and the equity method is resumed. However, if the Company has guaranteed obligations of the investment or is otherwise committed to provide further financial support for the investment, losses will continue to be reported up to the amount of those guaranteed obligations or commitments.

Derivatives

Interest rate swaps and credit default swaps associated with replicated assets are valued at amortized cost and all other derivative types are carried at fair value, which is based primarily upon quotations obtained from counterparties and independent sources. These quotations are compared to internally derived prices and a price challenge is lodged with the counterparties and independent sources when a significant difference cannot be explained by appropriate adjustments to the internal model. When quoted market values are not reliable or available, the value is based on an internal valuation process using market observable inputs that other market participants would use. Changes in the fair value of these instruments other than interest rate swaps and credit default swaps associated with replicated synthetic investments are recorded as unrealized capital gains (losses) in surplus. Gains and losses realized on settlement, termination, closing or assignment of contracts are recorded in net realized capital gains (losses). Amounts receivable and payable are accrued as net investment income.

Cash, cash equivalents and short-term investments

Cash and cash equivalents, which are carried at amortized cost, consist of all highly liquid investments purchased with original maturities of three months or less.

Short-term investments, which are carried at amortized cost, consist of short-term bonds, money market mutual funds and all highly liquid investments purchased with maturities of greater than three months and less than or equal to 12 months.

The carrying value reported in the Statutory Statements of Financial Position for cash, cash equivalents and short-term investment instruments approximates the fair value.

Investment income due and accrued

Accrued investment income consists primarily of interest and dividends. Interest is recognized on an accrual basis and dividends are recorded as earned on the ex-dividend date.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Federal income taxes

Total federal income taxes are based upon the Company’s best estimate of its current and DTAs or deferred tax assets or liabilities. Current tax expense (benefit) is reported in the Statutory Statements of Operations as federal income tax expense (benefit) if resulting from operations and within net realized capital gains (losses) if resulting from invested asset transactions. Changes in the balances of net deferred taxes, which provide for book-to-tax temporary differences, are subject to limitations and are reported within various lines within surplus. Accordingly, the reporting of book-to-tax temporary differences, such as reserves and policy acquisition costs, and of book-to-tax permanent differences, such as tax-exempt interest and tax credits, may result in effective tax rates in the Statutory Statements of Operations that differ from the federal statutory tax rate.

Other than invested assets

Other than invested assets primarily includes the Company’s investment in corporate-owned life insurance, deferred and uncollected life insurance premium, receivable from subsidiaries and affiliates, reinsurance recoverable, fixed assets and other receivables.

Separate accounts

Separate accounts and sub-accounts are segregated funds administered and invested by the Company, the performance of which primarily benefits the policyholders/contract holders with an interest in the separate accounts. Group and individual variable annuity, variable life and other insurance policyholders/contract holders select from among the separate accounts and sub-accounts made available by the Company. The separate accounts and sub-accounts are offered as investment options under certain insurance contracts or policies. The returns produced by separate account assets increase or decrease separate account reserves. Separate account assets consist principally of marketable securities reported at fair value. Except for the Company’s seed money, supplemental accounts and certain guaranteed separate accounts issued in Minnesota, separate account assets can only be used to satisfy separate account liabilities and are not available to satisfy the general obligations of the Company. Separate account administrative and investment advisory fees are included in fees and other income.

Assets may be transferred from the general investments of the Company to seed the separate accounts. When assets are transferred, they are transferred at fair market value. Gains related to the transfer are deferred to the extent that the Company maintains a proportionate interest in the separate account. The deferred gain is recognized as the Company’s ownership decreases or when the underlying assets are sold. Losses associated with these transfers are recognized immediately.

Separate accounts reflect two categories of risk assumption: nonguaranteed separate accounts for which the policyholder/contract holder assumes the investment risk and guaranteed separate accounts for which the Company contractually guarantees a minimum return, a minimum account value, or both to the policyholder/contract holder. For certain guaranteed separate account products such as interest rate guaranteed products and indexed separate account products, reserve adequacy is performed on a contract-by-contract basis using, as applicable, prescribed interest rates, mortality rates and asset risk deductions. If the outcome from this adequacy analysis produces a deficiency relative to the current account value, a liability is recorded in policyholders' reserves or liabilities for deposit-type contracts in the Statutory Statements of Financial Position with the corresponding change in the liability recorded as change in policyholders' reserves or policyholders' benefits in the Statutory Statements of Operations.

Premium income, benefits and expenses of the separate accounts are included in the Statutory Statements of Operations with the offset recorded in the change in policyholders’ reserves. Investment income, realized capital gains (losses) and unrealized capital gains (losses) on the assets of separate accounts, other than seed money, accrue to policyholders/contract holders and are not recorded in the Statutory Statements of Operations.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Nonadmitted assets

Assets designated as nonadmitted by the NAIC primarily include pension plan assets, intangibles, certain electronic data processing equipment, advances and prepayments, certain investments in partnerships and limited liability companies for which qualifying audits are not performed, the amount of DTAs (subject to certain limitations) that will not be realized by the end of the third calendar year following the current year end, furniture and equipment, certain other receivables and uncollected premium greater than 90 days past due. Due and accrued income is nonadmitted on: (a) bonds delinquent more than 90 days or where collection of interest is improbable; (b) impaired bonds more than 60 days past due; (c) bonds in default; (d) mortgage loans in default where interest is 180 days past due; (e) rent in arrears for more than 90 days; and (f) policy loan interest due and accrued more than 90 days past due and included in the unpaid balance of the policy loan in excess of the cash surrender value of the underlying contract. Assets that are designated as nonadmitted are excluded from the Statutory Statements of Financial Position through a change in nonadmitted assets on the Statutory Statements of Changes in Surplus.

Reinsurance

The Company enters into reinsurance agreements with affiliated and unaffiliated insurers in the normal course of business to limit its insurance risk or to assume business.

Premium income, policyholders’ benefits (including unpaid claims) and policyholders’ reserves are reported net of reinsurance. Premium, benefits and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. The Company records a receivable for reinsured benefits paid, but not yet reimbursed by the reinsurer and reduces policyholders’ reserves for the portion of insurance liabilities that are reinsured. Commissions and expense allowances on reinsurance ceded and modified coinsurance (Modco) reserve adjustments on reinsurance ceded are recorded as revenue. Commissions and expense allowances on Retirement Plan Group reinsurance assumed and Modco reserve adjustments on reinsurance assumed are recorded as an expense.

Policyholders' reserves

Policyholders’ reserves are developed by actuarial methods that will provide for the present value of estimated future obligations in excess of estimated future premium on policies in force and are determined based on either statutory prescribed mortality/morbidity tables using specified interest rates and valuation methods, or principles-based reserving (PBR) under Valuation Manual (VM)-20 which considers a wide range of future economic conditions, computed using justified company experience factors, such as mortality, policyholder behavior and expenses.

On January 1, 2020, the Company transitioned from Actuarial Guideline 43 to VM-21 for valuing guaranteed living benefits on certain annuity products for statutory reserves.

The Company waives deduction of deferred fractional premium at death and returns any portion of the final premium beyond the date of death. Reserves are computed using continuous functions to reflect these practices.

The Company charges a higher premium on certain contracts that cover substandard mortality risk. For these policies, the reserve calculations are based on a substandard mortality rate, which is a multiple of the standard mortality tables.

Certain variable universal life and universal life contracts include features such as guaranteed minimum death benefits (GMDB) or other guarantees that ensure continued death benefit coverage when the policy would otherwise lapse. The value of the guarantee is only available to the beneficiary in the form of a death benefit. The liability for variable and universal life GMDBs and other guarantees is included in policyholders’ reserves and the related change in this liability is included in change in policyholders’ reserves in the Statutory Statements of Operations.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Certain individual variable annuity and fixed annuity products have a variety of additional guarantees such as GMDBs and variable annuity guaranteed living benefits (VAGLB). The primary types of VAGLBs include guaranteed minimum accumulation benefits (GMAB), guaranteed minimum income benefits (GMIB) including GMIB Basic and GMIB Plus and guaranteed lifetime withdrawal benefits (GLWB). In general, these benefit guarantees require the contract owner or policyholder to adhere to a company-approved asset allocation strategy. The liabilities for individual variable annuity GMDBs and VAGLBs are included in policyholders’ reserves in the Statements of Financial Position and the related changes in these liabilities are included in change in policyholders’ reserves in the Statutory Statements of Operations.

Separate accounts include certain group annuity contracts used to fund retirement plans that offer a guarantee of a contract holder’s principal, which can be withdrawn over a stated period of time. These contracts offer a stated rate of return backed by the Company. Contract payments are not contingent upon the life of the retirement plan participants.

Unpaid claims and claim expense reserves are related to disability and LTC claims. Unpaid disability claim liabilities are projected based on the average of the last three disability payments. LTC unpaid claim liabilities are projected using policy specific daily benefit amounts and aggregate utilization factors. Claim expense reserves are based on an analysis of the unit expenses related to the processing and examination of new and ongoing claims. Interest accrued on reserves is calculated by applying NAIC prescribed interest rates to the average reserves by year incurred.

Tabular interest, tabular reserves, reserves released, and tabular cost for all life and annuity contracts and supplementary contracts involving life contingencies are determined in accordance with NAIC Annual Statement instructions. For tabular interest, whole life and term products use a formula that applies a weighted average interest rate determined from a seriatim valuation file to the mean average reserves. Universal life, variable life, group life, annuity and supplemental contracts use a formula that applies a weighted average credited rate to the mean account value. For contracts without an account value (e.g., a Single Premium Immediate Annuity) a weighted average statutory valuation rate is applied to the mean statutory reserve or accepted actuarial methods using applicable interest rates are applied.

All policyholders’ reserves and accruals are presented net of reinsurance. Management believes that these liabilities and accruals represent management’s best estimate and will be sufficient, in conjunction with future revenues, to meet future anticipated obligations of policies and contracts in force.

Liabilities for deposit-type contracts

Liabilities for funding agreements, dividend accumulations, premium deposit funds, investment-type contracts such as supplementary contracts not involving life contingencies and certain structured settlement annuities are based on account value or accepted actuarial methods using applicable interest rates.

Participating contracts

Participating contracts are those that may be eligible to share in any dividends declared by the Company. Participating contracts issued by the Company represented 56% of the Company’s policyholders’ reserves and liabilities for deposit-type contracts as of December 31, 2022 and 58% as of December 31, 2021.

Policyholders' dividends

Dividends expected to be paid to policyholders in the following year are approved annually by Hextone’s Board of Directors and are recorded as an expense in the current year. The allocation of these dividends to policyholders reflects the relative contribution of each group of participating policies to surplus and considers, among other factors, investment returns, mortality and morbidity experience, expenses and taxes. The liability for policyholders’ dividends includes the estimated amount of annual dividends and settlement dividends. A settlement dividend is an extra dividend payable at termination of a policy upon maturity, death or surrender.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Asset valuation reserve

The Company maintains an AVR that is a contingency reserve to stabilize surplus against fluctuations in the carrying value of common stocks, real estate, partnerships and limited liability companies as well as credit-related changes in the value of bonds, preferred stocks, mortgage loans, and certain derivatives. The AVR is reported as a liability within the Statutory Statements of Financial Position and the change in AVR, net of tax, is reported within the Statutory Statements of Changes in Surplus.

Repurchase agreements

Repurchase agreements are contracts under which the Company sells securities and simultaneously agrees to repurchase the same or substantially the same securities. These repurchase agreements are carried at cost and accounted for as collateralized borrowings with the proceeds from the sale of the securities recorded as a liability while the underlying securities continue to be recorded as an investment by the Company. Earnings on these investments are recorded as investment income and the difference between the proceeds and the amount at which the securities will be subsequently reacquired is amortized as interest expense. Repurchase agreements are used as a tool for overall portfolio management to help ensure the Company maintains adequate assets in order to provide yield, spread and duration to support liabilities and other corporate needs.

The Company provides collateral, as dictated by the repurchase agreements, to the counterparty in exchange for a loan. If the fair value of the securities sold becomes less than the loan, the counterparty may require additional collateral.

The carrying value reported in the Statutory Statements of Financial Position for repurchase agreements approximates the fair value.

Commercial paper

The Company issues commercial paper (CP) in the form of unsecured notes. Interest on CP is calculated using a 360-day year based on the actual number of days elapsed. Due to the short-term nature of CP, the carrying value approximates fair value.

Interest maintenance reserve

The Company maintains an IMR that is used to stabilize net income against fluctuations in interest rates. After-tax realized capital gains (losses), which result from changes in interest rates for all types of fixed-income investments and interest-related derivatives, are deferred into the IMR and amortized into net investment income using the grouped amortization method. In the grouped amortization method, assets are grouped based on years of maturity. IMR is reduced by the amount ceded to reinsurers when entering into in force coinsurance ceding agreements. The IMR is included in other liabilities, or if negative, is recorded as a nonadmitted asset.

aa.

Employee compensation plans

The Company has a long-term incentive compensation plan, under which certain employees of the Company and its subsidiaries may be issued phantom share-based compensation awards. These awards include Phantom Stock Appreciation Rights (PSARs) and Phantom Restricted Stock (PRS). These awards do not grant an equity or ownership interest in the Company.

PSARs provide the participant with the opportunity to share in the value created in the total enterprise. The PSAR value is the appreciation in the phantom stock price between the grant price and the share price at the time of exercise. Awards can only be settled in cash. PSARs typically cliff vest at the end of three years and expire five years after the date of grant. Vested PSARs may be exercised during quarterly two-week exercise periods prior to expiration. The compensation expense for an individual award is recognized over the service period.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

PRS provide the participant with the opportunity to share in the value created in the total enterprise. Participants receive the full phantom share value (grant price plus/minus any change in share price) over the award period. Awards can only be settled in cash. PRS typically vests on a graded basis over five years, one third per year after years three, four and five. On each vesting date, a lump sum cash settlement is paid to the participant based on the number of shares vested multiplied by the most recent phantom stock price. Compensation expense is recognized on the accelerated attribution method. The accelerated attribution method recognizes compensation expense over the vesting period by which each separate payout year is treated as if it were, in substance, a separate award.

All awards granted under the Company’s plans are compensatory classified awards. Compensation costs are based on the most recent quarterly calculated intrinsic value of the PSARs (current share price less grant price per share not less than zero) and PRS (current share price per share), considering vesting provisions, net of forfeiture assumptions and are included in the Statutory Statements of Financial Position as a liability in general expenses due or accrued. The compensation expense for an individual award is recognized over the service period. The cumulative compensation expense for all outstanding awards in any period is equal to the change in calculated liability period over period. The requisite service period for the awards is the vesting period.

At the time of death or disability, awards contain vesting conditions, whereby employees’ unvested awards immediately vest on an accelerated basis with a one-year exercise period for PSARs, full accelerated vesting and settlement for PRS awards granted 2016 and after. For PRS awards granted prior to 2016, awards vest on a pro-rata basis with immediate settlement.

At the time of retirement, for awards granted beginning in 2016, both PRS and PSAR vest according to the original grant terms. For awards granted prior to 2016, unvested awards immediately vest on an accelerated basis with a two-year exercise period for PSARs, and a pro-rata basis with immediate settlement for PRS.

The phantom share price is determined as the greater of the share price calculated using management basis core operating income or the share price calculated using management basis equity. This phantom share price is calculated and communicated to all participants quarterly and is used in calculating the liability of the Company based on intrinsic value.

bb.

Other liabilities

Other liabilities primarily consist of the derivative interest expense liability, remittances and items not allocated, other miscellaneous liabilities, liabilities for employee benefits and accrued separate account transfers.

cc.

Premium and related expense recognition

Life insurance premium revenue is generally recognized annually on the anniversary date of the policy. However, premium for flexible products, primarily universal life and variable universal life contracts, is recognized as revenue when received. Annuity premium is recognized as revenue when received. Disability income and LTC premium is recognized as revenue when due.

Premium revenue is adjusted by the related deferred premium adjustment. Deferred premium adjusts for the overstatement created in the calculation of reserves as the reserve computation assumes the entire year’s net premium is collected annually at the beginning of the policy year and does not take into account installment or modal payments.

Commissions and other costs related to issuance of new policies and policy maintenance and settlement costs are charged to current operations when incurred. Surrender fee charges on certain life and annuity products are recorded as a reduction of benefits and expenses.

dd.

Net realized capital gains (losses) including other-than-temporary impairments and unrealized capital gains (losses)

Net realized capital gains (losses), net of taxes, exclude gains (losses) deferred into the IMR and gains (losses) of the separate accounts. Net realized capital gains (losses), including OTTI, are recognized in net income and are determined using the specific identification method.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Bonds - general

The Company employs a systematic methodology to evaluate OTTI by conducting a quarterly analysis of bonds. OTTI is evaluated in a manner consistent with market participant assumptions. The Company considers the following factors, where applicable depending on the type of securities, in the evaluation of whether a decline in value is other than temporary: (a) the likelihood that the Company will be able to collect all amounts due according to the contractual terms of the debt security; (b) the present value of the expected future cash flows of the security; (c) the characteristics, quality and value of the underlying collateral or issuer securing the position; (d) collateral structure; (e) the length of time and extent to which the fair value has been below amortized cost; (f) the financial condition and near-term prospects of the issuer; (g) adverse conditions related to the security or industry; (h) the rating of the security; (i) the Company’s ability and intent to hold the investment for a period of time sufficient to allow for an anticipated recovery to amortized cost; and (j) other qualitative and quantitative factors in determining the existence of OTTI including, but not limited to, unrealized loss trend analysis and significant short-term changes in value.

In addition, if the Company has the intent to sell, or the inability, or lack of intent to retain the investment for a period sufficient to recover the amortized cost basis, an OTTI is recognized as a realized loss equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date.

When a bond is other-than-temporarily impaired, a new cost basis is established.

Bonds - corporate

For corporate securities, if it is determined that a decline in the fair value of a bond is other than temporary, OTTI is recognized as a realized loss equal to the difference between the investment’s amortized cost basis and, generally, its fair value at the balance sheet date.

The Company analyzes investments whose fair value is below the cost for impairment. Generally, if the investment experiences significant credit or interest rate related deterioration, the cost of the investment is not recoverable, or the Company intends to sell the investment before anticipated recovery, an OTTI is recognized as realized investment loss.

Bonds - loan-backed and structured securities

For loan-backed and structured securities, if the present value of cash flows expected to be collected is less than the amortized cost basis of the security, an OTTI is recognized as a realized loss equal to the difference between the investment’s amortized cost basis and the present value of cash flows expected to be collected. The expected cash flows are discounted at the security’s effective interest rate. Internal inputs used in determining the amount of the OTTI on structured securities include collateral performance, prepayment speeds, default rates, and loss severity based on borrower and loan characteristics, as well as deal structure including subordination, over-collateralization and cash flow priority.

ABS and MBS are evaluated for OTTI using scenarios and assumptions based on the specifics of each security including collateral type, loan type, vintage and subordination level in the structure. Cash flow estimates are based on these assumptions and inputs obtained from external industry sources along with internal analysis and actual experience. Where applicable, assumptions include prepayment speeds, default rates and loss severity, weighted average maturity and changes in the underlying collateral values.

The Company has a review process for determining if CDOs are at risk for OTTI. For the senior, mezzanine and junior debt tranches, cash flows are modeled using multiple scenarios based on the current ratings and values of the underlying corporate credit risks and incorporating prepayment and default assumptions that vary according to collateral attributes of each CDO. The prepayment and default assumptions are varied within each model based upon rating (base case), historical expectations (default), rating change improvement (optimistic), rating change downgrade (pessimistic) and fair value (market). The default rates produced by these multiple scenarios are assigned an expectation weight according to current market and economic conditions and fed into a final scenario. OTTI is recorded if this final scenario results in the loss of any principal or interest payments due.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

For the most subordinated junior CDO tranches, the present value of the projected cash flows in the final scenario is measured using an effective yield. If the current book value of the security is greater than the present value measured using an effective yield, an OTTI is taken in an amount sufficient to produce its effective yield. Certain CDOs cannot be modeled using all of the scenarios because of limitations on the data needed for all scenarios. The cash flows for these CDOs, including foreign currency denominated CDOs, are projected using a customized scenario management believes is reasonable for the applicable collateral pool.

For loan-backed and structured securities, any difference between the new amortized cost basis and any increased present value of future cash flows expected to be collected is accreted into net investment income over the expected remaining life of the bond.

Common and preferred stock

The cost basis of common and preferred stocks is adjusted for impairments deemed to be other than temporary. The Company considers the following factors in the evaluation of whether a decline in value is other than temporary: (a) the financial condition and near-term prospects of the issuer; (b) the Company’s ability and intent to retain the investment for a period sufficient to allow for a near-term recovery in value; and (c) the period and degree to which the value has been below cost. The Company conducts a quarterly analysis of issuers whose common or preferred stock is not-in-good standing or valued below 80% of cost. The Company also considers other qualitative and quantitative factors in determining the existence of OTTI including, but not limited to, unrealized loss trend analysis and significant short-term changes in value.

Mortgage loans

The Company performs internal reviews at least annually to determine if individual mortgage loans are performing or nonperforming. The fair values of performing mortgage loans are estimated by discounting expected future cash flows using current interest rates for similar loans with similar credit risk. For nonperforming loans, the fair value is the estimated collateral value of the underlying real estate. If foreclosure is probable, the Company will obtain an external appraisal.

Mortgage loans are considered to be impaired when, based upon current available information and events, it is probable that the Company will be unable to collect all amounts of principal and interest due according to the contractual terms of the mortgage loan agreement. A valuation allowance is recorded on a loan-by-loan basis in net unrealized capital losses for the excess of the carrying value of the mortgage loan over the fair value of its underlying collateral. Such information or events could include property performance, capital budgets, future lease roll, a property inspection as well as payment trends. Collectability and estimated decreases in collateral values are also assessed on a loan-by-loan basis considering all events and conditions relevant to the loan. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revisions as more information becomes available, as changes occur in the market or as negotiations with the borrowing entity evolve. If there is a change in the fair value of the underlying collateral or the estimated loss on the loan, the valuation allowance is adjusted accordingly. An OTTI occurs upon the realization of a credit loss, typically through foreclosure or after a decision is made to accept a discounted payoff, and is recognized in realized capital losses. The previously recorded valuation allowance is reversed from unrealized capital losses. When an OTTI is recorded, a new cost basis is established reflecting estimated value of the collateral.

Real estate

For real estate held for the production of income, depreciated cost is adjusted for impairments whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable, with the impairment being included in realized capital losses. An impairment is recorded when the property’s estimated future net operating cash flows over ten years, undiscounted and without interest charges, is less than book value.

Adjustments to the carrying value of real estate held for sale are recorded in a valuation reserve as realized capital losses when the fair value less estimated selling costs is less than the carrying value.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Partnerships and limited liability companies

When it is probable that the Company will be unable to recover the outstanding carrying value of an investment based on undiscounted cash flows, or there is evidence indicating an inability of the investee to sustain earnings to justify the carrying value of the investment, OTTI is recognized in realized capital losses reflecting the excess of the carrying value over the estimated fair value of the investment. The estimated fair values of limited partnership interests are generally based on the Company’s share of the net asset value (NAV) as provided in the financial statements of the investees. In certain circumstances, management may adjust the NAV by a premium or discount when it has sufficient evidence to support applying such adjustments.

For determining impairments in partnerships that generate LIHTCs, the Company uses the present value of all future benefits, the majority of which are tax credits, discounted at a risk-free rate for future benefits of ten or more years and compares the results to its current book value. Impairments are recognized in realized capital losses reflecting the excess of the carrying value over the estimated fair value of the investment.

Unrealized capital gains (losses)

Unrealized capital gains (losses) include changes in the fair value of derivatives, excluding interest rate swaps and credit default index swaps associated with replicated assets; currency translation adjustments on foreign-denominated bonds; changes in the fair value of unaffiliated common stocks; changes in the fair value of bonds and preferred stocks that are carried at fair value; and changes in the inflation adjustments on U.S Treasury inflation-indexed securities. Changes in the Company’s equity investments in partnerships and limited liability companies, including the earnings as reported on the financial statements, earnings recorded as accumulated undistributed earnings, foreign exchange asset valuation and mark-to-market on operating assets, and certain subsidiaries and affiliates are also reported as changes in unrealized capital gains (losses). Unrealized capital gains (losses) are recorded as a change in net unrealized capital gains (losses), net of tax, within the Statutory Statements of Changes in Surplus.

New accounting standards

Adoption of new accounting standards

In November 2021, the NAIC adopted modifications to SSAP No. 43R, Loan-Backed and Structured Securities, effective December 31, 2022. The modifications require investments in residual tranches to be reported as partnerships and limited liability companies. Residual tranches will be carried at the lower of amortized cost or fair value, with changes in value recorded as unrealized gains or losses. The modifications did not have a material effect on the Company’s financial statements.

In June 2022, the NAIC adopted modifications to SSAP No. 25, Affiliates and Other Related Parties and SSAP No. 43R, Loan-Backed and Structured Securities, effective December 31, 2022. The modifications clarify application of the existing affiliate definition and incorporate disclosure requirements for all investments that involve related parties, regardless of whether they meet the affiliate definition. The revisions to SSAP No. 43R also included additional clarifications that the investments from any arrangements that results in direct or indirect control, which include but are not limited to control through a servicer, shall be reported as affiliated investments. The modifications did not have a material effect on the Company’s financial statements.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Fair value of financial instruments

The following presents a summary of the carrying values and fair values of the Company's financial instruments:

	December 31, 2022
	Carrying		Fair
	Value		Value		Level 1		Level 2		Level 3
	(In Millions)
Financial assets:
Bonds:
U. S. government and agencies	$	4,764	$	4,428	$	-	$	4,428	$	-
All other governments		1,635		1,385		-		1,323		62
States, territories and possessions		248		241		-		241		-
Political subdivisions		405		388		-		388		-
Special revenue		4,187		4,111		-		4,102		9
Industrial and miscellaneous		117,023		105,791		-		45,812		59,979
Parent, subsidiaries and affiliates		8,183		7,956		-		1,015		6,941
Preferred stocks		451		446		45		-		401
Common stocks - subsidiaries and affiliates		460		460		110		-		350
Common stocks - unaffiliated		1,477		1,477		507		-		970
Mortgage loans - commercial		20,756		19,152		-		-		19,152
Mortgage loans - residential		4,216		3,892		-		-		3,892
Derivatives:
Interest rate swaps		18,287		18,456		-		18,456		-
Options		639		639		31		608		-
Currency swaps		3,071		3,071		-		3,071		-
Forward contracts		14		14		-		14		-
Financial futures		21		21		21		-		-
Cash, cash equivalents and short-term investments		5,568		5,568		420		5,148		-
Separate account assets		53,414		53,414		34,931		16,790		1,693
Financial liabilities:
GICs		14,701		13,803		-		-		13,803
Group annuity contracts and other deposits		2,162		1,890		-		-		1,890
Individual annuity contracts		17,000		16,214		-		-		16,214
Supplementary contracts		1,139		1,140		-		-		1,140
Repurchase agreements		3,042		3,042		-		3,042		-
Commercial paper		250		250		-		250		-
Derivatives:
Interest rate swaps		13,036		18,165		-		18,165		-
Options		6		6		6		-		-
Currency swaps		709		362		-		362		-
Forward contracts		236		236		-		236		-
Credit default swaps		13		13		-		13		-
Financial futures		3		3		3		-		-

Common stocks - subsidiaries and affiliates do not include unconsolidated subsidiaries, which had statutory carrying values of $24,223 million.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

	December 31, 2021
	Carrying		Fair
	Value		Value		Level 1		Level 2		Level 3
	(In Millions)
Financial assets:
Bonds:
U. S. government and agencies	$	4,125	$	4,769	$	-	$	4,769	$	-
All other governments		1,844		1,969		-		1,908		61
States, territories and possessions		297		350		-		350		-
Political subdivisions		442		504		-		504		-
Special revenue		4,741		5,582		-		5,573		9
Industrial and miscellaneous		106,290		112,386		36		55,849		56,501
Parent, subsidiaries and affiliates		6,548		6,586		-		43		6,543
Preferred stocks		555		669		42		-		627
Common stocks - subsidiaries and affiliates		390		390		137		-		253
Common stocks - unaffiliated		1,277		1,277		524		-		753
Mortgage loans - commercial		21,536		22,259		-		-		22,259
Mortgage loans - residential		4,809		4,849		-		-		4,849
Derivatives:
Interest rate swaps		15,004		16,234		-		16,234		-
Options		321		321		15		306		-
Currency swaps		948		948		-		948		-
Forward contracts		68		68		-		68		-
Credit default swaps		-		1		-		1		-
Financial futures		38		38		38		-		-
Cash, cash equivalents and short-term investments		5,943		5,943		1,453		4,490		-
Separate account assets		76,160		76,160		52,405		21,861		1,894
Financial liabilities:
GICs		13,832		13,828		-		-		13,828
Group annuity contracts and other deposits		1,755		1,812		-		-		1,812
Individual annuity contracts		12,109		14,581		-		-		14,581
Supplementary contracts		1,167		1,168		-		-		1,168
Repurchase agreements		2,802		2,802		-		2,802		-
Commercial paper		250		250		-		250		-
Derivatives:
Interest rate swaps		10,598		11,431		-		11,431		-
Options		4		4		4		-		-
Currency swaps		200		200		-		200		-
Forward contracts		69		69		-		69		-
Credit default swaps		1		2		-		2		-
Financial futures		5		5		5		-		-

Common stocks - subsidiaries and affiliates do not include unconsolidated subsidiaries, which had statutory carrying values of $24,250 million.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value establishes a measurement framework that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques into three levels. Each level reflects a unique description of the inputs that are significant to the fair value measurements. The levels of the fair value hierarchy are as follows:

Level 1 – Observable inputs in the form of quoted prices for identical instruments in active markets.

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be derived from observable market data for substantially the full term of the assets or liabilities.

Level 3 – One or more unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using internal models, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

When available, the Company generally uses unadjusted quoted market prices from independent sources to determine the fair value of investments, and classifies such items within Level 1 of the fair value hierarchy. If quoted prices are not available, prices are derived from observable market data for similar assets in an active market or obtained directly from brokers for identical assets traded in inactive markets. Investments that are priced using these inputs are classified within Level 2 of the fair value hierarchy. When some of the necessary observable inputs are unavailable, fair value is based upon internally developed models. These models use inputs not directly observable or correlated with observable market data. Typical inputs, which are integrated in the Company’s internal discounted cash flow models and discounted earnings models include, but are not limited to, issuer spreads derived from internal credit ratings and benchmark yields such as LIBOR, cash flow estimates and earnings before interest, taxes, depreciation and amortization estimates. Investments that are priced with such unobservable inputs are classified within Level 3 of the fair value hierarchy.

The Company reviews the fair value hierarchy classifications at each reporting period. Overall, reclassifications between levels occur when there are changes in the observability of inputs and market activity used in the valuation of a financial asset or liability. Such reclassifications are reported as transfers between levels at the beginning fair value for the reporting period in which the changes occur. Given the types of assets classified as Level 1 (primarily equity securities including mutual fund investments), transfers between Level 1 and Level 2 measurement categories are expected to be infrequent. Transfers into and out of Level 3 are summarized in the schedule of changes in Level 3 assets and liabilities.

The fair value of group annuity contracts and other deposits is determined by multiplying the book value of the contract by an average market value adjustment factor. The market value adjustment factor is directly related to the difference between the book value of client liabilities and the present value of installment payments discounted at current market value yields. The market value yield is measured by the Barclay's Aggregate Bond Index, subject to certain adjustments, and the installment period is equivalent to the duration of the Company’s invested asset portfolio.

The fair value of individual annuity and supplementary contracts is determined using one of several methods based on the specific contract type. For short-term contracts, generally less than 30 days, the fair value is assumed to be the book value. For contracts with longer durations, GICs and investment-type contracts, the fair value is determined by calculating the present value of future cash flows discounted at current market interest rates, the risk-free rate or a current pricing yield curve based on pricing assumptions using assets of a comparable corporate bond quality. Annuities receiving dividends are accumulated at the average minimum guaranteed rate and discounted at the risk-free rate. All others are valued using cash flow projections from the Company's asset/liability management analysis.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following presents the Company's fair value hierarchy for assets and liabilities that are carried at fair value:

	December 31, 2022
	Level 1		Level 2		Level 3		Total
	(In Millions)
Financial assets:
Bonds:
All other governments		-		6		-		6
Special revenue	$	-	$	1	$	-	$	1
Industrial and miscellaneous		-		85		220		305
Preferred stocks		21		-		47		68
Common stocks - subsidiaries and affiliates		110		-		350		460
Common stocks - unaffiliated		507		-		970		1,477
Derivatives:
Interest rate swaps		-		18,287		-		18,287
Options		31		608		-		639
Currency swaps		-		3,071		-		3,071
Forward contracts		-		14		-		14
Financial futures		21		-		-		21
Separate account assets		34,931		16,790		1,693		53,414
Total financial assets carried at fair value	$	35,621	$	38,862	$	3,280	$	77,763

Financial liabilities:
Derivatives:
Interest rate swaps	$	-	$	13,036	$	-	$	13,036
Options		6		-		-		6
Currency swaps		-		122		-		122
Forward contracts		-		236		-		236
Credit default swaps		-		13		-		13
Financial futures		3		-		-		3
Total financial liabilities carried at fair value	$	9	$	13,407	$	-	$	13,416

For the year ended December 31, 2022 and the year ended December 31, 2021, the Company did not have any financial instruments that were carried at net asset value as a practical expedient.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following presents the Company's fair value hierarchy for assets and liabilities that are carried at fair value:

	December 31, 2021
	Level 1		Level 2		Level 3		Total
	(In Millions)
Financial assets:
Bonds:
Special revenue	$	-	$	2	$	-	$	2
Industrial and miscellaneous		45		248		187		480
Preferred stocks		43		-		18		61
Common stocks - subsidiaries and affiliates		137		-		253		390
Common stocks - unaffiliated		524		-		753		1,277
Derivatives:
Interest rate swaps		-		15,004		-		15,004
Options		15		306		-		321
Currency swaps		-		948		-		948
Forward contracts		-		68		-		68
Credit default swaps		-		1		-		1
Financial futures		38		-		-		38
Separate account assets		52,405		21,861		1,894		76,160
Total financial assets carried at fair value	$	53,207	$	38,438	$	3,105	$	94,750

Financial liabilities:
Derivatives:
Interest rate swaps	$	-	$	10,598	$	-	$	10,598
Options		4		-		-		4
Currency swaps		-		200		-		200
Forward contracts		-		69		-		69
Credit default swaps		-		1		-		1
Financial futures		5		-		-		5
Total financial liabilities carried at fair value	$	9	$	10,868	$	-	$	10,877

The Company reviews the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes and the level of market activity may result in a reclassification of certain financial assets or liabilities between fair value hierarchy classifications. Such reclassifications are reported as transfers between levels in the beginning fair value for the reporting period in which the changes occur.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Valuation Techniques and Inputs

The Company determines the fair value of its investments using primarily the market approach or the income approach. The use of quoted prices for identical assets and matrix pricing or other similar techniques are examples of market approaches, while the use of discounted cash flow methodologies is an example of the income approach. The Company attempts to maximize the use of observable inputs and minimize the use of unobservable inputs in selecting whether the market or the income approach is used.

A description of the significant valuation techniques and inputs to the determination of estimated fair value for the more significant asset and liability classes measured at fair value on a recurring basis and categorized within Level 2 and Level 3 of the fair value hierarchy is as follows:

Separate account assets – These assets primarily include bonds (industrial and miscellaneous; U.S. government and agencies), and derivatives. Their fair values are determined as follows:

Bonds (Industrial and miscellaneous) – These securities are principally valued using the market or the income approaches. Level 2 valuations are based primarily on quoted prices in markets that are not active, broker quotes, matrix pricing or other similar techniques that use standard market observable inputs such as benchmark yields, spreads versus benchmark yields, new issuances, issuer ratings, duration, and trades of identical or comparable securities. Privately placed securities are valued using discounted cash flow models using standard market observable inputs, and inputs derived from, or corroborated by, market observable data including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately traded issuances that incorporate the credit quality and industry sector of the issuer. This level also includes securities priced by independent pricing services that use observable inputs. Valuations based on matrix pricing or other similar techniques that utilize significant unobservable inputs or inputs that cannot be derived principally from, or corroborated by, observable market data, including adjustments for illiquidity, delta spread adjustments or spreads to reflect industry trends or specific credit−related issues are classified as Level 3. In addition, inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 are classified as Level 3.

Bonds (U.S. government and agencies) – These securities are principally valued using the market approach. Level 2 valuations are based primarily on quoted prices in markets that are not active, or using matrix pricing or other similar techniques using standard market observable inputs such as the benchmark U.S. Treasury yield curve, the spreads versus the U.S. Treasury yield curve for the identical security and comparable securities that are actively traded.

Derivative assets and liabilities – These financial instruments are primarily valued using the market approach. The estimated fair value of derivatives is based primarily on quotations obtained from counterparties and independent sources, such as quoted market values received from brokers. These quotations are compared to internally derived prices and a price challenge is lodged with the counterparties and an independent source when a significant difference cannot be explained by appropriate adjustments to the internal model. When quoted market values are not reliable or available, the value is based upon an internal valuation process using market observable inputs that other market participants would use. Significant inputs to the valuation of derivative financial instruments include overnight index swaps and LIBOR basis curves, interest rate volatility, swap yield curve, currency spot rates, cross currency basis curves and dividend yields. Due to the observability of the significant inputs to these fair value measurements, they are classified as Level 2.

The use of different assumptions or valuation methodologies may have a material impact on the estimated fair value amounts. For the periods presented, there were no significant changes to the Company's valuation techniques.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following presents changes in the Company's Level 3 assets carried at fair value:

			Gains (Losses) in Net Income			Losses (Gains) in Surplus			Purchases			Issuances			Sales			Settlements
	Balance as of 1/1/22																												Balance as of 12/31/22
																						Transfers
																							In		Out		Other
	(In Millions)

Financial assets:
Bonds:
Industrial and miscellaneous	$	187		$	3		$	(9	)	$	19		$	9		$	-		$	(52	)	$	-	$	-		$	63		$	220
Preferred stocks		18			-			(18	)		-			-			-			-			-		-			47			47
Common stocks - subsidiaries and affiliates		253			(13	)		110			(793	)		980			(65	)		(6	)		-		-			(116	)		350
Common stocks - unaffiliated		753			28			2			327			3			(27	)		(112	)		-		(3	)		(1	)		970
Separate account assets		1,894			(174	)		-			282			-			(296	)		-			-		(13	)		-			1,693
Total financial assets	$	3,105		$	(156	)	$	85		$	(165	)	$	992		$	(388	)	$	(170	)	$	-	$	(16	)	$	(7	)	$	3,280

			Gains (Losses) in Net Income			Losses (Gains) in Surplus			Purchases			Issuances			Sales			Settlements
	Balance as of 1/1/21																												Balance as of 12/31/21
																						Transfers
																							In		Out		Other
	(In Millions)

Financial assets:
Bonds:
Industrial and miscellaneous	$	112		$	(21	)	$	4		$	-		$	99		$	-		$	(1	)	$	-	$	(1	)	$	(5	)	$	187
Preferred stocks		18			-			(1	)		-			-			-			-			-		-			1			18
Common stocks - subsidiaries and affiliates		189			1			(376	)		23			422			-			(6	)		-		-			-			253
Common stocks - unaffiliated		412			8			115			244			3			(26	)		(3	)		-		-			-			753
Separate account assets		1,834			15			-			363			-			(294	)		-			2		(26	)		-			1,894
Total financial assets	$	2,565		$	3		$	(258	)	$	630		$	524		$	(320	)	$	(10	)	$	2	$	(27	)	$	(4	)	$	3,105

Other transfers include assets that are either no longer carried at fair value, or have just begun to be carried at fair value, such as assets with no level changes but a change in the lower of cost or market carrying basis. Industrial and miscellaneous bonds in other contain assets that are now carried at fair value due to ratings changes and assets are no longer carried at fair value where the fair value is now higher than the book value.

Level 3 transfers in are assets that are consistently carried at fair value but have had a level change. Common stocks unaffiliated assets were transferred from Level 2 to Level 3 due to a change in the observability of pricing inputs, at the beginning fair value for the reporting period.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

5. Investments

The Company maintains a diversified investment portfolio. Investment policies limit concentration in any asset class, geographic region, industry group, economic characteristic, investment quality or individual investment.

Bonds

The carrying value and fair value of bonds were as follows:

	December 31, 2022
			Gross		Gross
	Carrying		Unrealized		Unrealized		Fair
	Value		Gains		Losses		Value
	(In Millions)

U.S. government and agencies	$	4,764	$	59	$	395	$	4,428
All other governments		1,635		15		265		1,385
States, territories and possessions		248		2		9		241
Political subdivisions		405		6		23		388
Special revenue		4,187		106		182		4,111
Industrial and miscellaneous		117,023		391		11,623		105,791
Parent, subsidiaries and affiliates		8,183		1		228		7,956
Total	$	136,445	$	580	$	12,725	$	124,300

The December 31, 2022 gross unrealized losses exclude $102 million of losses included in the carrying value. These losses include $104 million from NAIC Class 6 bonds and $(2) million from residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) whose ratings were obtained from outside modelers. These losses were primarily included in industrial and miscellaneous or parent, subsidiaries and affiliates.

	December 31, 2021
			Gross		Gross
	Carrying		Unrealized		Unrealized		Fair
	Value		Gains		Losses		Value
	(In Millions)

U.S. government and agencies	$	4,125	$	656	$	12	$	4,769
All other governments		1,844		144		19		1,969
States, territories and possessions		297		53		-		350
Political subdivisions		442		62		-		504
Special revenue		4,741		845		4		5,582
Industrial and miscellaneous		106,290		6,742		642		112,390
Parent, subsidiaries and affiliates		6,548		57		19		6,586
Total	$	124,287	$	8,559	$	696	$	132,150

The December 31, 2021 gross unrealized losses exclude $74 million of losses included in the carrying value. These losses include $73 million from NAIC Class 6 bonds and $1 million from RMBS and CMBS whose ratings were obtained from outside modelers. These losses were primarily included in industrial and miscellaneous or parent, subsidiaries and affiliates.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The quality of the bond portfolio is determined by the use of SVO ratings and the equivalent rating agency designations, except for RMBS and CMBS that use outside modelers. The following sets forth the NAIC class ratings for the bond portfolio including RMBS and CMBS:

			December 31,
			2022				2021
NAIC	Equivalent Rating	Carrying			% of		Carrying			% of
Class	Agency Designation	Value			Total		Value			Total
			($ In Millions)

1	Aaa/ Aa/ A		$	73,290	54	%		$	62,714	50	%
2	Baa			51,732	38				49,437	40
3	Ba			5,495	4				5,401	4
4	B			2,888	2				3,409	3
5	Caa and lower			2,603	2				2,513	2
6	In or near default			437	-				813	1
	Total		$	136,445	100	%		$	124,287	100	%

The following summarizes NAIC ratings for RMBS and CMBS investments subject to NAIC modeling:

December 31,
	2022									2021
	RMBS					CMBS				RMBS				CMBS
NAIC	Carrying		% of		Carrying			% of		Carrying		% of		Carrying		% of
Class	Value		Total		Value			Total		Value		Total		Value		Total
	($ In Millions)

1	$	391	82	%		$	1,693	75	%	$	584	88	%	$	1,672	76	%
2		29	6				202	9			12	2			115	5
3		32	7				160	7			25	4			213	10
4		14	3				83	4			13	2			97	4
5		10	2				81	4			29	4			75	3
6		2	-				12	1			2	-			42	2
	$	478	100	%		$	2,231	100	%	$	665	100	%	$	2,214	100	%

The following is a summary of the carrying value and fair value of bonds as of December 31, 2022 by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. Securities with more than one maturity date are included in the table using the final maturity date.

	Carrying		Fair
	Value		Value
	(In Millions)

Due in one year or less	$	4,228	$	4,177
Due after one year through five years		31,270		30,400
Due after five years through ten years		38,406		36,062
Due after ten years		62,541		53,661
Total	$	136,445	$	124,300

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Sales proceeds and related gross realized capital gains (losses) from bonds were as follows:

	Years Ended
	December 31,
	2022		2021			2020
	(In Millions)

Proceeds from sales	$	16,097	$	21,687	$	15,457
Gross realized capital gains from sales		143		406		1,416
Gross realized capital losses from sales		(624)		(135)		(251)

The following is a summary of the fair values and gross unrealized losses aggregated by bond category and length of time that the securities were in a continuous unrealized loss position:

	December 31, 2022
	Less Than 12 Months						12 Months or Longer
						Number						Number
	Fair		Unrealized			of	Fair		Unrealized			of
	Value		Losses			Issuers	Value		Losses			Issuers
	($ In Millions)

U.S. government and agencies	$	1,609		$	243	15	$	1,113		$	153	7
All other governments		447			46	33		737			220	27
States, territories and possessions		87			3	11		74			6	3
Political subdivisions		155			13	17		62			10	4
Special revenue		1,477			123	176		291			58	67
Industrial and miscellaneous		51,038			5,265	2,735		27,854			6,471	1,807
Parent, subsidiaries and affiliates		2,575			83	28		1,046			144	11
Total	$	57,388		$	5,776	3,015	$	31,177		$	7,062	1,926

The December 31, 2022 gross unrealized losses include $102 million of losses included in the carrying value. These losses include $104 million from NAIC Class 6 bonds and $(2) million from RMBS and CMBS whose ratings were obtained from outside modelers. These losses were primarily included in industrial and miscellaneous or parent, subsidiaries and affiliates.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

	December 31, 2021
	Less Than 12 Months						12 Months or Longer
						Number						Number
	Fair		Unrealized			of	Fair		Unrealized			of
	Value		Losses			Issuers	Value		Losses			Issuers
	($ In Millions)

U.S. government and agencies	$	740		$	5	5	$	74		$	7	6
All other governments		240			7	21		166			13	10
States, territories and possessions		-			-	2		6			-	1
Political subdivisions		1			-	2		-			-	-
Special revenue		205			3	22		32			1	23
Industrial and miscellaneous		16,855			315	1,408		6,122			400	647
Parent, subsidiaries and affiliates		580			10	3		316			9	1
Total	$	18,621		$	340	1,463	$	6,716		$	430	688

The December 31, 2021 gross unrealized losses include $74 million of losses included in the carrying value. These losses include $73 million from NAIC Class 6 bonds and $1 million from RMBS and CMBS whose ratings were obtained from outside modelers. These losses were primarily included in industrial and miscellaneous or parent, subsidiaries and affiliates.

As of December 31, 2022 and 2021, management has not deemed these unrealized losses to be other than temporary because the investment’s carrying value is expected to be realized and the Company has the ability and intent not to sell these investments until recovery, which may be at maturity.

As of December 31, 2022, investments in structured and loan-backed securities that had unrealized losses, which were not recognized in earnings, had a fair value of $20,311 million. Securities in an unrealized loss position for less than 12 months had a fair value of $14,684 million and unrealized losses of $892 million. Securities in an unrealized loss position for greater than 12 months had a fair value of $5,626 million and unrealized losses of $894 million. These securities were primarily categorized as industrial and miscellaneous or parent, subsidiaries and affiliates.

As of December 31, 2021, investments in structured and loan-backed securities that had unrealized losses, which were not recognized in earnings, had a fair value of $8,162 million. Securities in an unrealized loss position for less than 12 months had a fair value of $6,285 million and unrealized losses of $66 million. Securities in an unrealized loss position for greater than 12 months had a fair value of $1,877 million and unrealized losses of $134 million. These securities were primarily categorized as industrial and miscellaneous or parent, subsidiaries and affiliates.

In the course of the Company’s investment management activities, securities may be sold and reacquired within 30 days to enhance the Company’s yield on its investment portfolio. The Company did not sell any securities with the NAIC Designation 3 or below for the years ended December 31, 2022 or 2021, that were reacquired within 30 days of the sale date.

The Company had assets on deposit with government authorities or trustees, as required by law, in the amount of $10 million as of December 31, 2022 and December 31, 2021.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Residential mortgage-backed exposure

RMBS are included in the U.S. government and agencies, special revenue, and industrial and miscellaneous bond categories. The Alt-A category includes option adjustable-rate mortgages and the subprime category includes 'scratch and dent' or reperforming pools, high loan-to-value pools, and pools where the borrowers have very impaired credit but the average loan-to-value is low, typically 70% or below. In identifying Alt-A and subprime exposure, management used a combination of qualitative and quantitative factors, including FICO scores and loan-to-value ratios.

As of December 31, 2022, RMBS had a total carrying value of $2,308 million and a fair value of $2,266 million, of which approximately 8%, based on carrying value, was classified as Alt-A. Alt-A and subprime RMBS had a total carrying value of $999 million and a fair value of $993 million. As of December 31, 2021, RMBS had a total carrying value of $2,068 million and a fair value of $2,154 million, of which approximately 16%, based on carrying value, was classified as Alt-A. Alt-A and subprime RMBS had a total carrying value of $975 million and a fair value of $1,025 million.

During the year ended December 31, 2022, there were no significant credit downgrades for the securities held by the Company that were backed by residential mortgage pools.

Leveraged loan exposure

Leveraged loans are loans extended to companies that already have considerable amounts of debt. The Company reports leveraged loans as bonds. These leveraged loans have interest rates higher than typical loans, reflecting the additional risk of default from issuers with high debt-to-equity ratios.

As of December 31, 2022, total leveraged loans and leveraged loan CDOs had a carrying value of $26,332 million and a fair value of $25,664 million, of which approximately 81%, based on carrying value, were domestic leveraged loans and CDOs. As of December 31, 2021, total leveraged loans and leveraged loan CDOs had a carrying value of $19,707 million and a fair value of $19,842 million, of which approximately 78%, based on carrying value, were domestic leveraged loans and CDOs.

Commercial mortgage-backed exposure

The Company holds bonds backed by pools of commercial mortgages. The mortgages in these pools have varying risk characteristics related to underlying collateral type, borrower's risk profile and ability to refinance and the return provided to the borrower from the underlying collateral. These investments had a carrying value of $2,699 million and fair value of $2,285 million as of December 31, 2022 and a carrying value of $2,678 million and fair value of $2,689 million as of December 31, 2021.

Preferred stocks

The carrying value and fair value of preferred stocks were as follows:

	December 31,
	2022		2021
	(In Millions)

Carrying value	$	451	$	555
Gross unrealized gains		9		115
Gross unrealized losses		(14)		-
Fair value	$	446	$	670

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

As of December 31, 2022, investments in preferred stocks in an unrealized loss position included holdings with a fair value of $245 million in 17 issuers, $55 million of which was in an unrealized loss position for more than 12 months. As of December 31, 2021, investments in preferred stocks in an unrealized loss position included holdings with a fair value of $37 million in 3 issuers, $11 million of which was in an unrealized loss position for more than 12 months. Based upon the Company’s impairment review process discussed in Note 2dd. “Net realized capital gains (losses) including other-than-temporary impairments and unrealized capital gains (losses)” the decline in value of these securities was not considered to be other than temporary as of December 31, 2022 or 2021.

The Company held preferred stocks for which the transfer of ownership was restricted by contractual requirements with carrying values of $323 million as of December 31, 2022 and $409 million as of December 31, 2021.

Common stocks – subsidiaries and affiliates

The Company has two primary domestic life insurance subsidiaries, C.M. Life, which primarily provides fixed and variable annuities and universal life insurance business, and MML Bay State, a subsidiary of C.M. Life, which primarily issues variable life and bank-owned life insurance policies.

Summarized below is certain combined statutory financial information for the unconsolidated domestic life insurance subsidiaries:

	As of and for the Years Ended
	December 31,
	2022		2021		2020
	(In Millions)

Total revenue	$	577	$	682	$	674
Net income		155		106		114
Assets		12,870		14,270		14,489
Liabilities		11,090		12,636		12,750
Shareholder's equity		1,780		1,634		1,739

In 2022, C.M. Life paid $163 million in dividends to Hextone and paid $173 million in dividends to Hextone in 2021.

In 2022, Hextone contributed capital of $50 million to C.M. Life.

MMHLLC, a wholly-owned subsidiary of Hextone, is the parent of subsidiaries that include Barings LLC (Barings) and deals in markets that include retail and institutional asset management entities and registered broker dealers.

The MMHLLC statutory carrying value was $17.2 billion, which included $151 million of nonadmitted asset adjustments as of December 31, 2022 and $17.2 billion as of December 31, 2021, which included $58 million nonadmitted asset adjustments.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Summarized below is certain U.S. GAAP financial information for MMHLLC:

	As of and for the Years Ended
	December 31,
	2022		2021		2020
	(In Billions)
Total revenue	$	3.6	$	4.9	$	3.2
Net income		0.6		1.7		0.7
Assets		27.2		25.5		24.9
Liabilities		8.2		7.6		8.4
Member's equity		18.9		17.9		16.5

MMHLLC paid $604 million in dividends to Hextone for the year ended December 31, 2022, $344 million of which were declared in 2021, and paid $1,200 million in dividends to Hextone for the year ended December 31, 2021, $1,000 million of which were declared in 2020.

MMHLLC declared an additional $450 million in dividends to Hextone for the year ended December 31, 2022.

Hextone contributed capital of $660 million to MMHLLC for the year ended December 31, 2022 and $389 million for the year ended December 31, 2021.

Summarized below is certain U.S. GAAP financial information for Glidepath:

	As of and for the Years Ended December 31,
	2022		2021
	(In Billions)
Total revenue	$	1.2	$	0.6
Net income (loss)		1.0		(0.1	)
Assets		51.0		50.3
Liabilities		48.8		46.9
Member's equity		2.2		3.4

Summarized below is certain U.S. GAAP financial information for MMIH:

	As of and for the Years Ended
	December 31,
	2022		2021		2020
	(In Billions)
Total revenue	$	0.3	$	0.3	$	0.3
Net income		0.1		0.1		0.1
Assets		9.3		8.8		9.0
Liabilities		7.6		7.0		7.4
Member's equity		1.7		1.8		1.6

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Subsidiaries of MMHLLC are involved in litigation and investigations arising in the ordinary course of their business, which seek compensatory damages, punitive damages and equitable remedies. Although the Company is not aware of any actions or allegations that reasonably could give rise to a material adverse impact to the Company’s financial position or liquidity, the outcome of litigation cannot be foreseen with certainty. It is the opinion of management that the ultimate resolution of these matters will not materially impact the Company’s financial position or liquidity. However, the outcome of a particular proceeding may be material to the Company’s Statutory Statements of Changes in Surplus for a particular period depending upon, among other factors, the size of the loss and the level of the Company’s changes in surplus for the period.

The Company does not rely on dividends from its subsidiaries to meet its operating cash flow requirements. For the domestic life insurance subsidiaries, substantially all of their statutory shareholder’s equity of $1,780 million as of December 31, 2022 was subject to dividend restrictions imposed by the State of Connecticut.

For further information on related party transactions with subsidiaries and affiliates, see Note 17. “Related party transactions”.

Common stocks - unaffiliated

The adjusted cost basis and carrying value of unaffiliated common stocks were as follows:

	December 31,
	2022			2021
	(In Millions)

Adjusted cost basis	$	1,198		$	983
Gross unrealized gains		317			312
Gross unrealized losses		(38	)		(18	)
Carrying value	$	1,477		$	1,277

As of December 31, 2022, investments in unaffiliated common stocks in an unrealized loss position included holdings with a fair value of $268 million in 68 issuers, $78 million of which were in an unrealized loss position for more than 12 months. As of December 31, 2021, investments in unaffiliated common stocks in an unrealized loss position included holdings with a fair value of $271 million in 134 issuers, $243 million of which were in an unrealized loss position for more than 12 months. Based upon the Company’s impairment review process discussed in Note 2dd. “Net realized capital gains (losses) including other-than-temporary impairments and unrealized capital gains (losses)” the decline in value of these securities was not considered to be other than temporary as of December 31, 2022 or 2021.

The Company held common stocks, for which the transfer of ownership was restricted by contractual requirements, with carrying values of $135 million as of December 31, 2022 and $158 million as of December 31, 2021.

Mortgage loans

Mortgage loans are comprised of commercial mortgage loans and residential mortgage loans. The Company’s commercial mortgage loans primarily finance various types of real estate properties throughout the U.S., the United Kingdom and Canada. The Company holds commercial mortgage loans for which it is the primary lender or a participant or co-lender in a mortgage loan agreement and mezzanine loans that are subordinate to senior secured first liens. The Company's loan agreements with the senior lender contain negotiated provisions that are designed to maximize the Company's influence with the objective of mitigating the Company’s risks as the secondary lender for mezzanine loans. Commercial mortgage loans have varying risk characteristics including, among others, the borrower’s liquidity, the underlying percentage of completion of a project, the returns generated by the collateral, the refinance risk associated with maturity of the loan and deteriorating collateral value.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Residential mortgage loans are primarily seasoned pools of homogeneous residential mortgage loans substantially backed by Federal Housing Administration (FHA) and Veterans Administration (VA) guarantees. As of December 31, 2022 and 2021, the Company did not have any direct subprime exposure through the purchases of unsecuritized whole-loan pools.

Geographical concentration is considered prior to the purchase of mortgage loans and residential mortgage loan pools. The mortgage loan portfolio is diverse with no significant collateral concentrations in any particular geographic region as of December 31, 2022 or 2021.

The carrying value and fair value of the Company's mortgage loans were as follows:

	December 31, 2022				December 31, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
	(In Millions)
Commercial mortgage loans:
Primary lender	$	20,662	$	19,065	$	21,419	$	22,141
Mezzanine loans		94		87		117		118
Total commercial mortgage loans		20,756		19,152		21,536		22,259

Residential mortgage loans:
FHA insured and VA guaranteed		2,304		2,128		4,107		4,138
Other residential loans		1,912		1,764		702		711
Total residential mortgage loans		4,216		3,892		4,809		4,849
Total mortgage loans	$	24,972	$	23,044	$	26,345	$	27,108

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The loan-to-value ratios by property type of the Company's commercial mortgage loans were as follows:

	December 31, 2022
	Less Than			81% to			Above						% of
	81%			95%			95%			Total			Total
	($ In Millions)

Office		$	6,843		$	-		$	34		$	6,877	33	%
Apartments			5,437			447			-			5,884	28
Industrial and other			3,447			26			-			3,473	17
Retail			2,449			-			-			2,449	12
Hotels			1,982			91			-			2,073	10
Total		$	20,158		$	564		$	34		$	20,756	100	%

	December 31, 2021
	Less Than			81% to			Above						% of
	81%			95%			95%			Total			Total
	($ In Millions)

Office		$	7,047		$	130		$	-		$	7,177	33	%
Apartments			5,626			91			175			5,892	27
Industrial and other			3,572			26			27			3,625	17
Retail			2,554			-			14			2,568	12
Hotels			2,087			119			68			2,274	11
Total		$	20,886		$	366		$	284		$	21,536	100	%

More than 97% of the Company’s commercial mortgage loans’ loan-to-value ratios are below 81% for the years ended December 31, 2022 and 2021.

The Company uses an internal rating system as its primary method of monitoring credit quality. The following illustrates the Company’s mortgage loan portfolio rating, translated into the equivalent rating agency designation:

	December 31, 2022
													CCC and
	AAA/AA/A			BBB			BB			B			Lower			Total
	(In Millions)
Commercial mortgage loans:
Primary lender		$	7,632		$	10,300		$	2,306		$	354		$	70		$	20,662
Mezzanine loans			-			37			57			-			-			94
Total commercial mortgage loans			7,632			10,337			2,363			354			70			20,756
Residential mortgage loans:
FHA insured and VA guaranteed			2,299			5			-			-			-			2,304
Other residential loans			61			1,832			19			-			-			1,912
Total residential mortgage loans			2,360			1,837			19			-			-			4,216
Total mortgage loans		$	9,992		$	12,174		$	2,382		$	354		$	70		$	24,972

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

	December 31, 2021
													CCC and
	AAA/AA/A			BBB			BB			B			Lower			Total
	(In Millions)
Commercial mortgage loans:
Primary lender		$	7,453		$	10,028		$	3,525		$	304		$	109		$	21,419
Mezzanine loans			-			42			75			-			-			117
Total commercial mortgage loans			7,453			10,070			3,600			304			109			21,536
Residential mortgage loans:
FHA insured and VA guaranteed			4,107			-			-			-			-			4,107
Other residential loans			2			581			119			-			-			702
Total residential mortgage loans			4,109			581			119			-			-			4,809
Total mortgage loans		$	11,562		$	10,651		$	3,719		$	304		$	109		$	26,345

The maximum percentage of any one commercial mortgage loan to the estimated value of secured collateral at the time the loan was originated, exclusive of mezzanine, insured, guaranteed or purchase money mortgages, was 100.0% as of December 31, 2022 and 100.0% as of December 31, 2021.

The geographic distribution of commercial mortgage loans was as follows:

	December 31, 2022
			Average
	Carrying		Loan-to-Value
	Value		Ratio
	($ In Millions)

California	$	4,632	50%
New York		2,157	54%
United Kingdom		2,008	48%
Texas		1,867	54%
Illinois		1,472	51%
Washington		1,114	53%
District of Columbia		1,041	58%
All other		6,465	55%
Total commercial mortgage loans	$	20,756	53%

All other consists of 31 jurisdictions, with no individual exposure exceeding $897 million.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

	December 31, 2021
			Average
	Carrying		Loan-to-Value
	Value		Ratio
	($ In Millions)

California	$	4,809	52%
United Kingdom		2,486	49%
New York		2,057	55%
Texas		1,954	57%
Illinois		1,598	67%
Washington		1,139	50%
District of Columbia		1,051	56%
All other		6,442	55%
Total commercial mortgage loans	$	21,536	55%

All other consists of 30 jurisdictions, with no individual exposure exceeding $889 million.

Interest rates, including fixed and variable, on the Company's portfolio of mortgage loans were:

	Years Ended December 31,
	2022				2021
	Low		High		Low		High

Commercial mortgage loans	1.7	%	11.7	%	1.6	%	9.0	%
Residential mortgage loans	2.2	%	11.7	%	2.7	%	10.0	%
Mezzanine mortgage loans	5.3	%	13.3	%	3.3	%	6.6	%

Interest rates, including fixed and variable, on new mortgage loans were:

	Years Ended December 31,
	2022				2021
	Low		High		Low		High

Commercial mortgage loans	2.6	%	11.7	%	1.6	%	5.9	%
Residential mortgage loans	2.6	%	11.7	%	2.8	%	8.5	%
Mezzanine mortgage loans	12.2	%	13.3	%	3.3	%	5.9	%

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

As of December 31, 2022, the Company had impaired mortgage loans with or without a valuation allowance or mortgage loans derecognized as a result of foreclosure, including mortgage loans subject to a participant or co-lender mortgage loan agreement with a unilateral mortgage loan foreclosure restriction or mortgage loan derecognized as a result of a foreclosure.

The following presents a summary of the Company's impaired mortgage loans as of December 31, 2022 and as of December 31, 2021:

	December 31, 2022
				Average			Unpaid
	Carrying			Carrying			Principal			Valuation			Interest
	Value			Value			Balance			Allowance			Income
	(In Millions)
With no allowance recorded:
Commercial mortgage loans:
Primary lender		$	14		$	15		$	17		$	-		$	1
Total			14			15			17			-			1
Total impaired commercial mortgage loans		$	14		$	15		$	17		$	-		$	1

	December 31, 2021
				Average			Unpaid
	Carrying			Carrying			Principal			Valuation			Interest
	Value			Value			Balance			Allowance			Income
	(In Millions)
With no allowance recorded:
Commercial mortgage loans:
Primary lender		$	48		$	51		$	105		$	-		$	-
Total			48			51			105			-			-
Total impaired commercial mortgage loans		$	48		$	51		$	105		$	-		$	-

The Company did not hold any restructured mortgage loans, mortgage loans with principal or interest past due, or mortgage loans with suspended interest accruals as of December 31, 2022 or 2021. The carrying value of commercial mortgage loans subject to a participant or co-lender mortgage loan agreement was $1,264 million as of December 31, 2022 and $1,279 million as of December 31, 2021.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Real estate

The carrying value of real estate was as follows:

	December 31,
	2022		2021
	(In Millions)
Held for the production of income	$	351	$	1,755
Accumulated depreciation		(78)		(846)
Encumbrances		(285)		(892)
Held for the production of income, net		(12)		17
Held for sale		76		-
Accumulated depreciation		(74)		-
Held for sale, net		2		-
Occupied by the Company		574		641
Accumulated depreciation		(209)		(263)
Occupied by the Company, net		365		378
Total real estate	$	355	$	395

Depreciation expense on real estate was $36 million for the year ended December 31, 2022, $91 million for the year ended December 31, 2021 and $85 million for the year ended December 31, 2020.

Partnerships and limited liability companies

The carrying value of partnership and LLC holdings by annual statement category were:

	December 31,			December 31,
	2022		2021
	(In Millions)
Joint venture interests:
Common stocks - subsidiaries and affiliates	$	2,090	$	2,474
Common stocks - unaffiliated		3,353		3,252
Real estate		2,212		1,907
Bonds/preferred stock		1,058		1,139
Other		1,144		1,579
Mortgage loans		1,930		1,676
Surplus notes		389		358
LIHTCs		120		160
Total	$	12,296	$	12,545

The Company held eight affiliated partnerships and limited liability companies in a loss position with accumulated losses of $75 million as of December 31, 2022, and three affiliated partnerships and limited liability companies in a loss position with accumulated losses of $52 million as of December 31, 2021.

The Company’s unexpired tax credits expire within a range of less than 1 year to 13 years.

The Company recorded tax credits on these investments of $52 million for the year ended December 31, 2022 and $47 million for the year ended December 31, 2021. The minimum holding period required for the Company’s LIHTC investments extends from 1 year to 15 years.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

For determining impairments for LIHTC investments, the Company uses the present value of all future benefits, the majority of which are tax credits, discounted at a risk-free rate ranging from 4.3% for future benefits of two years to 3.6% for future benefits of ten or more years, and compares the result to its current carry value. The Company recorded $1 million of impairments for the year ended December 31, 2022.

There were no write-downs or reclassifications of LIHTC partnerships made during the years ended December 31, 2022 or December 31, 2021, due to forfeiture or ineligibility of tax credits or similar issues. There are no LIHTC investments subject to regulatory review for the years ended December 31, 2022 or 2021.

In 2021, the Company recognized a $411 million OTTI from one investment.

Derivatives

The Company uses derivative financial instruments in the normal course of business to manage risks, primarily to reduce currency, interest rate and duration imbalances determined in asset/liability analyses. The Company also uses a combination of derivatives and fixed income investments to create replicated synthetic investments. These replicated synthetic investments are created when they are economically more attractive than the actual instrument or when similar instruments are unavailable. Replicated synthetic investments are created either to hedge and reduce the Company's credit exposure or to create an investment in a particular asset. The Company held replicated synthetic investments with a notional amount of $31,264 million as of December 31, 2022 and $21,873 million as of December 31, 2021, as defined under statutory accounting practices as the result of pairing of a long derivative contract with cash instruments.

The Company’s derivative strategy employs a variety of derivative financial instruments: including interest rate, currency, equity, bond, and credit default swaps; options; forward contracts and financial futures. Investment risk is assessed on a portfolio basis and individual derivative financial instruments are not generally designated in hedging relationships; therefore, as allowed by statutory accounting practices, the Company intentionally has not applied hedge accounting.

Interest rate swaps are primarily used to more closely match the cash flows of assets and liabilities. Interest rate swaps are also used to mitigate changes in the value of assets anticipated to be purchased and other anticipated transactions and commitments. The Company uses currency swaps for the purpose of managing currency exchange risks in its assets and liabilities.

The Company does not sell credit default swaps as a participant in the credit insurance market. The Company does, however, use credit default swaps as part of its investment management process. The Company buys credit default swaps as an efficient means to reduce credit exposure to particular issuers or sectors in the Company’s investment portfolio. The Company sells credit default swaps in order to create synthetic investment positions that enhance the return on its investment portfolio by providing comparable exposure to fixed income securities that might not be available in the primary market.

Options grant the purchaser the right to buy or sell a security or enter a derivative transaction at a stated price within a stated period. The Company’s option contracts have terms of up to 15 years. A swaption is an option to enter an interest rate swap to either receive or pay a fixed rate at a future date. The Company purchases these options for the purpose of managing interest rate risks in its assets and liabilities.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The Company adopted a clearly defined hedging strategy (CDHS) to enable the Company to incorporate currently held hedges in risk-based capital (RBC) calculations. The CDHS is used to significantly mitigate the impact that movements in capital markets have on the liabilities associated with annuity guarantees. The hedge portfolio consists mainly of interest rate swaps, equity swaps, interest rate swaptions and equity futures, and provides protection in the stress scenarios under which RBC is calculated. The hedge portfolio has offsetting impacts relative to the total asset requirement for RBC and surplus for GMDB and VAGLB.

The Company utilizes certain other agreements including forward contracts and financial futures. In addition, the Company also uses “to be announced” forward contracts (TBAs) to hedge interest rate risk and participate in the mortgage-backed securities market in an efficient and cost-effective way. Typically, the price is agreed upon at contract inception and payment is made at a specified future date. The Company usually does not purchase TBAs with settlement by the first possible delivery date and thus, accounts for these TBAs as derivatives. TBAs that settle on the first possible delivery date are accounted for as bonds. The Company’s futures contracts are exchange traded and have credit risk. Margin requirements are met with the deposit of securities. Futures contracts are generally settled with offsetting transactions. Forward contracts and financial futures are used by the Company to reduce exposures to various risks including interest rates and currency rates.

The Company’s principal derivative exposures to market risk are interest rate risk, which includes inflation and credit risk. Interest rate risk pertains to the change in fair value of the derivative instruments as a result of changes in market interest rates. The Company is exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. The Company regularly monitors counterparty credit ratings, derivative positions, valuations and the value of collateral posted to ensure counterparties are credit-worthy and the concentration of exposure is minimized and monitors its derivative credit exposure as part of its overall risk management program.

The Company enters derivative transactions through bilateral derivative agreements with counterparties, or through over the counter cleared derivatives with a counterparty and the use of a clearinghouse. To minimize credit risk for bilateral transactions, the Company and its counterparties generally enter into master netting agreements based on agreed upon requirements that outline the framework for how collateral is to be posted in the amount owed under each transaction, subject to certain minimums. For over the counter cleared derivative transactions between the Company and a counterparty, the parties enter into a series of master netting and other agreements that govern, among other things, clearing and collateral requirements. These transactions are cleared through a clearinghouse and each derivative counterparty is only exposed to the default risk of the clearinghouse. Certain interest rate swaps and credit default swaps are considered cleared transactions. These cleared transactions require initial and daily variation margin collateral postings. These agreements allow for contracts in a positive position, in which amounts are due to the Company, to be offset by contracts in a negative position. This right of offset, combined with collateral obtained from counterparties, reduces the Company’s credit exposure.

Net collateral pledged by the counterparties was $2,427 million as of December 31, 2022 and $5,369 million as of December 31, 2021. In the event of default, the full market value exposure at risk in a net gain position, net of offsets and collateral, was $634 million as of December 31, 2022 and $230 million as of December 31, 2021. The statutory net amount at risk, defined as net collateral pledged and statement values excluding accrued interest, was $5,518 million as of December 31, 2022 and $579 million as of December 31, 2021.

The Company had the right to rehypothecate or repledge securities totaling $770 million of the $2,427 million as of December 31, 2022 and $717 million of the $5,369 million as of December 31, 2021 of net collateral pledged by counterparties. There were no securities rehypothecated to other counterparties as of December 31, 2022 or December 31, 2021.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following summarizes the carrying values and notional amounts of the Company’s derivative financial instruments:

		December 31, 2022
	Assets				Liabilities
	Carrying		Notional		Carrying		Notional
	Value		Amount		Value		Amount
	(In Millions)

Interest rate swaps	$	18,287	$	134,714	$	13,036	$	136,705
Options		639		14,529		6		-
Currency swaps		3,071		27,615		709		14,814
Forward contracts		14		1,250		236		7,287
Credit default swaps		-		-		13		1,580
Financial futures		21		2,334		3		369
Total	$	22,032	$	180,442	$	14,003	$	160,755

		December 31, 2021
	Assets				Liabilities
	Carrying		Notional		Carrying		Notional
	Value		Amount		Value		Amount
	(In Millions)

Interest rate swaps	$	15,004	$	112,580	$	10,598	$	123,919
Options		321		15,970		4		-
Currency swaps		948		12,662		200		5,363
Forward contracts		68		4,532		69		5,041
Credit default swaps		-		60		1		35
Financial futures		38		2,303		5		373
Total	$	16,379	$	148,107	$	10,877	$	134,731

The average fair value of outstanding derivative assets was $18,766 million for the years ended December 31, 2022 and $16,833 million for the years ended December 31, 2021. The average fair value of outstanding derivative liabilities was $10,938 million for the years ended December 31, 2022 and $12,329 million for the years ended December 31, 2021.

The following summarizes the notional amounts of the Company's credit default swaps by contractual maturity:

	December 31,		December 31,
	2022		2021
	(In Millions)

Due after one year through five years	$	1,580	$	95
Total	$	1,580	$	95

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following presents the Company’s gross notional interest rate swap positions:

	December 31,
	2022		2021
	(In Millions)

Open interest rate swaps in a fixed pay position	$	128,337	$	112,400
Open interest rate swaps in a fixed receive position		137,686		120,764
Other interest related swaps		5,396		3,335
Total interest rate swaps	$	271,419	$	236,499

The following summarizes the Company’s net realized gains (losses) on closed contracts and change in net unrealized gains (losses) related to market fluctuations on open contracts by derivative type:

	Year Ended
	December 31, 2022
	Net Realized			Change In Net
	Gains (Losses)			Unrealized Gains
	on Closed			(Losses) on
	Contracts			Open Contracts
	(In Millions)

Interest rate swaps		$	(717)		$	846
Currency swaps			69			2,204
Options			(6)			385
Credit default swaps			2			(17)
Forward contracts			853			(222)
Financial futures			(902)			(15)
Total		$	(701)		$	3,181

	Year Ended
	December 31, 2021
	Net Realized			Change In Net
	Gains (Losses)			Unrealized Gains
	on Closed			(Losses) on
	Contracts			Open Contracts
	(In Millions)

Interest rate swaps		$	(451)		$	458
Currency swaps			(25)			1,094
Options			(126)			74
Credit default swaps			2			-
Forward contracts			109			216
Financial futures			(315)			92
Total		$	(806)		$	1,934

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

	Year Ended
	December 31, 2020
	Net Realized			Change In Net
	Gains (Losses)			Unrealized Gains
	on Closed			(Losses) on
	Contracts			Open Contracts
	(In Millions)

Interest rate swaps		$	465		$	2,503
Currency swaps			196			(1,028)
Options			449			(111)
Credit default swaps			8			-
Forward contracts			(195)			(71)
Financial futures			381			50
Total		$	1,304		$	1,343

The following summarizes gross and net information of derivative assets and liabilities, along with collateral posted in connection with master netting agreements:

	December 31, 2022						December 31, 2021
	Derivative		Derivative				Derivative		Derivative
	Assets		Liabilities		Net		Assets		Liabilities		Net
	(In Millions)

Gross	$	22,032	$	14,003	$	8,029	$	16,379	$	10,877	$	5,502
Due and accrued		733		1,689		(956)		1,093		1,769		(676)
Gross amounts offset		(15,378)		(15,378)		-		(12,429)		(12,429)		-
Net asset		7,387		314		7,073		5,043		217		4,826
Collateral posted		(4,821)		(2,394)		(2,427)		(6,873)		(1,503)		(5,370)
Net	$	2,566	$	(2,080)	$	4,646	$	(1,830)	$	(1,286)	$	(544)

Repurchase agreements

The Company had repurchase agreements with carrying values of $3,042 million as of December 31, 2022 and $2,802 million as of December 31, 2021. As of December 31, 2022, the maturities of these agreements ranged from January 5, 2023 through February 2, 2023 and the interest rates ranged from 4.35% to 4.55%. The outstanding amounts were collateralized by cash and bonds with a carrying value of $3,049 million as of December 31, 2022 and $2,803 million as of December 31, 2021.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following presents the Company’s maximum amount and ending balance for repurchase agreements accounted for as secured borrowing for the years ended:

	December 31,
	2022							2021
	Maximum				Ending			Maximum			Ending
	balance			balance				balance			balance
	(In Millions)
From 1 week to 1 month		$	773			$	398		$	198		$	-
Greater than 1 month to 3 months			3,227				2,644			1,614			1,067
Greater than 3 months to 1 year			1,937				-			2,899			1,735
Total		$	5,937			$	3,042		$	4,711		$	2,802

The following presents the Company’s cash collateral and the fair value of security collateral received for the years ended:

	December 31,
	2022						2021
	Cash			Securities			Cash			Securities
	(In Millions)
Total		$	88		$	-		$	-		$	-

Net investment income

Net investment income, including IMR amortization, comprised the following:

	Years Ended December 31,
	2022		2021		2020
	(In Millions)

Bonds	$	5,215	$	4,437	$	4,526
Preferred stocks		22		17		22
Common stocks - subsidiaries and affiliates		878		717		1,243
Common stocks - unaffiliated		102		55		34
Mortgage loans		1,118		1,145		1,225
Policy loans		1,141		1,103		965
Real estate		79		162		91
Partnerships and LLCs		1,014		1,171		583
Derivatives		464		539		487
Cash, cash equivalents and short-term investments		80		61		93
Other		35		18		44
Subtotal investment income		10,148		9,425		9,313
Amortization of the IMR		(50)		150		111
Investment expenses		(796)		(730)		(672)
Net investment income	$	9,302	$	8,845	$	8,752

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Net realized capital gains (losses)

Net realized capital gains (losses), which include other-than-temporary impairments (OTTI) and are net of deferral to the IMR, comprised the following:

	Years Ended
	December 31,
	2022		2021			2020
	(In Millions)

Bonds	$	(889)	$	199	$	1,025
Preferred stocks		(6)		9		(14)
Common stocks - subsidiaries and affiliates		(13)		10		1
Common stocks - unaffiliated		64		147		(89)
Mortgage loans		(41)		(7)		(72)
Real estate		127		24		(30)
Partnerships and limited liability companies		(355)		(413)		(73)
Derivatives		(701)		(806)		1,304
Other		(74)		7		(64)
Net realized capital losses before federal and state taxes and deferral to the IMR		(1,888)		(830)		1,988
Net federal and state tax benefit (expense)		94		(86)		(361)
Net realized capital losses before deferral to the IMR		(1,794)		(916)		1,627
Net after tax losses deferred to the IMR		2,120		382		(2,213)
Net realized capital gains (losses)	$	326	$	(534)	$	(586)

The IMR liability balance was $0 million as of December 31, 2022 and $1,552 million as of December 31, 2021 and was included in other liabilities on the Statutory Statements of Financial Position.

OTTI, included in the realized capital losses, consisted of the following:

	Years Ended December 31,
	2022		2021		2020
	(In Millions)

Bonds	$	(416)	$	(80)	$	(140)
Preferred stock		(6)		-		-
Common stocks - unaffiliated		(2)		(11)		(80)
Mortgage loans		(4)		(17)		(40)
Partnerships and LLCs		(183)		(483)		(89)
Total OTTI	$	(611)		(591)		(349)

The Company recognized OTTI of $14 million for the year ended December 31, 2022 and $7 million for the year ended December 31, 2021 on structured and loan-backed securities, which are included in bonds, primarily due to the present value of expected cash flows being less than the amortized cost.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The Company utilized internally-developed models to determine less than 1% of the $416 million of bond OTTI for the year ended December 31, 2022, less than 1% of the $80 million of bond OTTI for the year ended December 31, 2021 and less than 1% of the $140 million of bond OTTI for the year ended December 31, 2020. The remaining OTTI amounts were determined using external inputs such as publicly observable fair values and credit ratings. Refer to Note 2dd. “Net realized capital gains (losses) including other-than-temporary impairments and unrealized capital gains (losses)” for more information on assumptions and inputs used in the Company’s OTTI models.

Federal income taxes

On August 16th, 2022, the Inflation Reduction Act (“IRA”) was signed into law and includes certain corporate income tax provisions. Impacts to the Company include the imposition of a corporate alternative minimum tax “CAMT” applicable to tax years beginning after December 31, 2022. The CAMT imposes a 15% minimum tax on adjusted financial statement income on applicable corporations that have an average adjusted financial statement income over $1 billion in the prior three-year period (2020-2022). As of the reporting date, the Company has not determined if it will be liable for CAMT in 2023. In accordance with INT 22-02: Third Quarter 2022 through First Quarter 2023 Reporting of the Inflation Reduction Act – Corporate Alternative Minimum Tax, the financial statements do not include an estimated impact of the CAMT because a reasonable estimate cannot be made. The United States Treasury Secretary has been authorized to issue guidance on the CAMT and pending such guidance the Company is not able to make a reasonable estimate.

In response to the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020 and the Consolidated Appropriations Act (CAA), 2021 was signed into law on December 27, 2020. The CARES Act, among other things, permits net operating loss (NOL) carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The CAA extends and expands certain tax provisions of the CARES Act. The CARES Act as well as the CAA did not have a material effect on the consolidated financial statements.

The Company provides for DTAs in accordance with statutory accounting practices, and has met the required threshold to utilize the three-year reversal period and 15% of surplus limitation.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The net DTA or deferred tax liability (DTL) recognized in the Company's assets, liabilities and surplus is as follows:

	December 31, 2022
	Ordinary		Capital		Total
	(In Millions)
Gross DTAs	$	3,444	$	742	$	4,186
Statutory valuation allowance adjustment		-		-		-
Adjusted gross DTAs		3,444		742		4,186
DTAs nonadmitted		-		-		-
Subtotal net admitted DTA		3,444		742		4,186
Total gross DTLs		(2,045)		(912)		(2,957)
Net admitted DTA(L)	$	1,399	$	(170)	$	1,229

	December 31, 2021
	Ordinary		Capital		Total
	(In Millions)
Gross DTAs	$	3,136	$	372	$	3,508
Statutory valuation allowance adjustment		-		-		-
Adjusted gross DTAs		3,136		372		3,508
DTAs nonadmitted		-		-		-
Subtotal net admitted DTA		3,136		372		3,508
Total gross DTLs		(2,090)		(708)		(2,798)
Net admitted DTA(L)	$	1,046	$	(336)	$	710

	Change
	Ordinary		Capital		Total
	(In Millions)
Gross DTAs	$	308	$	370	$	678
Statutory valuation allowance adjustment		-		-		-
Adjusted gross DTAs		308		370		678
DTAs nonadmitted		-		-		-
Subtotal net admitted DTA		308		370		678
Total gross DTLs		45		(204)		(159)
Net admitted DTA(L)	$	353	$	166	$	519

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The amount of adjusted gross DTA admitted under each component of the guidance and the resulting change by tax character are as follows:

	December 31, 2022
	Ordinary		Capital		Total
	(In Millions)
Admitted DTA 3 years:
Federal income taxes that can be recovered	$	-	$	63	$	63
Remaining adjusted gross DTAs expected to be realized within 3 years:
1. Adjusted gross DTA to be realized		1,287		-		1,287
2. Adjusted gross DTA allowed per limitation threshold		4,005		-		4,005
Lesser of lines 1 or 2		1,287		-		1,287
Adjusted gross DTAs offset by existing DTLs		2,158		678		2,836
Total admitted DTA realized within 3 years	$	3,445	$	741	$	4,186

	December 31, 2021
	Ordinary		Capital		Total
	(In Millions)
Admitted DTA 3 years:
Federal income taxes that can be recovered	$	-	$	89	$	89
Remaining adjusted gross DTAs expected to be realized within 3 years
1. Adjusted gross DTA to be realized		1,129		-		1,129
2. Adjusted gross DTA allowed per limitation threshold		3,938		-		3,938
Lesser of lines 1 or 2		1,129		-		1,129
Adjusted gross DTAs offset by existing DTLs		2,007		283		2,290
Total admitted DTA realized within 3 years	$	3,136	$	372	$	3,508

	Change
	Ordinary		Capital		Total
	(In Millions)
Admitted DTA 3 years:
Federal income taxes that can be recovered	$	-	$	(26)	$	(26)
Remaining adjusted gross DTAs expected to be realized within 3 years
1. Adjusted gross DTA to be realized		158		-		158
2. Adjusted gross DTA allowed per limitation threshold		67		-		67
Lesser of lines 1 or 2		158		-		158
Adjusted gross DTAs offset by existing DTLs		151		395		546
Total admitted DTA realized within 3 years	$	309	$	369	$	678

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The Company's total realization threshold limitations are as follows:

	December 31,
	2022		2021
	($ In Millions)

Ratio percentage used to determine recovery period and threshold limitation		860%		850%

Amount of adjusted capital and surplus used to determine recovery period and threshold limitation above	$	26,703	$	26,256

The ultimate realization of DTAs depends on the generation of future taxable income during the periods in which the temporary differences are deductible. Management considers the scheduled reversal of DTLs, including the impact of available carryback and carryforward periods, projected taxable income and tax-planning strategies in making this assessment. The impact of tax-planning strategies is as follows:

	December 31, 2022
	Ordinary		Capital		Total
	(Percent)
Impact of tax-planning strategies:
Adjusted gross DTAs (% of total adjusted gross DTAs)	-	%	-	%	-	%

Net admitted adjusted gross DTAs (% of total net admitted adjusted gross DTAs)	69	%	-	%	69	%

	December 31, 2021
	Ordinary		Capital		Total
	(Percent)
Impact of tax-planning strategies:
Adjusted gross DTAs (% of total adjusted gross DTAs)	-	%	-	%	-	%

Net admitted adjusted gross DTAs (% of total net admitted adjusted gross DTAs)	46	%	-	%	46	%

	Change
	Ordinary		Capital		Total
	(Percent)
Impact of tax-planning strategies:
Adjusted gross DTAs (% of total adjusted gross DTAs)	-	%	-	%	-	%

Net admitted adjusted gross DTAs (% of total net admitted adjusted gross DTAs)	23	%	-	%	23	%

There are no reinsurance strategies included in the Company's tax-planning strategies.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The provision for current tax expense on earnings is as follows:

	Years Ended December 31,
	2022		2021		2020
	(In Millions)

Federal income tax expense (benefit) on operating earnings	$	(92)	$	69	$	133
Foreign income tax expense on operating earnings		28		3		2
Total federal and foreign income tax expense (benefit) on operating earnings		(64)		72		135

Federal income tax expense (benefit) on net realized capital gains (losses)		(106)		43		359

Total federal and foreign income tax expense (benefit)	$	(170)	$	115	$	494

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The tax effects of temporary differences that give rise to significant portions of the DTAs and DTLs are as follows:

	December 31,
	2022		2021		Change
	(In Millions)
DTAs:
Ordinary
Reserve items	$	1,522	$	1,363	$	159
Policy acquisition costs		856		759		97
Nonadmitted assets		305		295		10
Pension and compensation related items		49		71		(22)
Policyholders' dividends		218		208		10
Investment items		224		240		(16)
Expense items		59		67		(8)
Unrealized investment losses		-		-		-
Other		211		133		78
Total ordinary DTAs		3,444		3,136		308
Nonadmitted DTAs		-		-		-
Admitted ordinary DTAs		3,444		3,136		308

Capital
Unrealized investment losses		397		38		359
Expense items		18		18		-
Investment items		327		316		11
Total capital DTAs		742		372		370
Admitted capital DTAs		742		372		370

Admitted DTAs		4,186		3,508		678

DTLs:
Ordinary
Reserve items		212		284		(72)
Unrealized investment gains		1,104		926		178
Deferred and uncollected premium		295		281		14
Pension items		68		61		7
Investment items		5		200		(195)
Other		361		338		23
Total ordinary DTLs		2,045		2,090		(45)

Capital
Unrealized investment gains		821		546		275
Investment items		91		162		(71)
Total capital DTLs		912		708		204

Total DTLs		2,957		2,798		159

Net admitted DTA	$	1,229	$	710	$	519

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The change in net deferred income taxes comprised the following:

	Years Ended December 31,
	2022		2021			2020
	(In Millions)

Net DTA(L)	$	520	$	201	$	(599)
Less: Items not recorded in the change in net deferred income taxes:
Tax-effect of unrealized gains/(losses)		105		343		576
Tax-effect of changes from asset transfers		37		-		-
Change in net deferred income taxes	$	662	$	544	$	(23)

As of December 31, 2022, the Company had no net operating or capital loss carryforwards to include in deferred income taxes. The Company has $107 million in tax credit carryforwards included in deferred taxes.

The components of federal and foreign income tax are recorded in the Statutory Statements of Operations and the Statutory Statements of Changes in Surplus and are different from those which would be obtained by applying the prevailing federal income tax rate to net gain from operations before federal income taxes. The significant items causing this difference are as follows:

	Years Ended December 31,
	2022		2021		2020
	(In Millions)
		21%		21%		21%

Provision computed at federal statutory rate	$	(325)	$	(92)	$	967
Expense items		19		(38)		3
Foreign governmental income taxes		28		3		1
Investment items		(188)		(135)		(411)
Nonadmitted assets		(10)		4		11
Tax credits		(293)		(95)		(50)
Other		(63)		(76)		(4)
Total statutory income tax expense (benefit)	$	(832)	$	(429)	$	517

Federal and foreign income tax expense (benefit)	$	(170)	$	115	$	494
Change in net deferred income taxes		(662)		(544)		23
Total statutory income tax expense (benefit)	$	(832)	$	(429)	$	517

The Company received refunds of federal income taxes in the amounts of $5 million in 2022 and paid $848 million in 2021.

The total income taxes incurred in the current and prior years that will be available for recoupment in the event of future net capital losses totaled $0 million related to 2022, $124 million related to 2021, and $430 million related to 2020.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Hextone and its eligible U.S. subsidiaries are included in a consolidated U.S. federal income tax return. Hextone and its eligible U.S. subsidiaries also file income tax returns in various states and foreign jurisdictions. Hextone and its eligible U.S. subsidiaries and certain affiliates (the Parties) have executed and are subject to a written tax allocation agreement (the Agreement). The Agreement sets forth the manner in which the total combined federal income tax is allocated among the Parties. The Agreement provides Hextone with the enforceable right to recoup federal income taxes paid in prior years in the event of future net capital losses, which it may incur. Further, the Agreement provides Hextone with the enforceable right to utilize its net losses carried forward as an offset to future net income subject to federal income taxes.

Companies are generally required to disclose unrecognized tax benefits, which are the tax effect of positions taken on their tax returns that may be challenged by various taxing authorities, in order to provide users of financial statements more information regarding potential liabilities. The Company recognizes tax benefits and related reserves in accordance with existing statutory accounting practices for liabilities, contingencies and impairments of assets.

The following is a reconciliation of the beginning and ending liability for unrecognized tax benefits (in millions):

Balance, January 1, 2022	$	219
Gross change related to positions taken in prior years		-
Gross change related to settlements		-
Gross change related to positions taken in current year		(5)
Gross change related to lapse of statutes of limitations		-
Balance, December 31, 2022	$	214

Included in the liability for unrecognized tax benefits as of December 31, 2022, are $202 million of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The liability for the unrecognized tax benefits as of December 31, 2022 includes $8 million of unrecognized tax benefits that, if recognized, would impact the Company’s effective tax rate.

The Company recognized an increase of $5 million in accrued interest related to the liability for unrecognized tax benefits as a component of the provision for income taxes. The amount of net interest recognized was $24 million as of December 31, 2022 and $20 million as of December 31, 2021. The Company has no accrued penalties related to the liability for unrecognized tax benefits. In the next year, the Company does not anticipate the total amount of uncertain tax positions to significantly increase or decrease.

The Internal Revenue Service (IRS) has completed its examination of Hextone and its subsidiaries for the year 2013 and prior. The 2014-2016 tax years are in the process of going to Appeals for 3 carryforward issues. The IRS commenced its examination of years 2017-2018 in October 2020. The adjustments resulting from these examinations are not expected to materially affect the position or liquidity of the Company.

As of December 31, 2022 and 2021, the Company did not recognize any protective deposits as admitted assets.

Other than invested assets

Corporate-owned life insurance

The Company holds corporate-owned life insurance issued by unaffiliated third-party insurers to cover the lives of certain qualified senior employees. The primary purpose of the program is to offset future employee benefit expenses. The Company pays all premiums and is the owner and beneficiary of these policies. The Company had recorded cash surrender values of these policies of $2,619 million as of December 31, 2022 and $2,666 million as of December 31, 2021.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The cash surrender value is allocated by the following investment categories:

	December 31,
	2022		2021

Other invested assets	39	%	33	%
Bonds	32		33
Stocks	16		19
Cash and short-term investments	10		13
Real estate	3		2
	100	%	100	%

Deferred and uncollected life insurance premium

Deferred and uncollected life insurance premium, net of loading and reinsurance, are included in other than invested assets in the Company’s Statutory Statements of Financial Position. The following summarizes the deferred and uncollected life insurance premium on a gross basis, as well as, net of loading and reinsurance:

	December 31,
	2022				2021
	Gross		Net		Gross		Net
	(In Millions)

Ordinary new business	$	163	$	103	$	186	$	119
Ordinary renewal		1,159		1,145		1,001		1,030
Group life		10		10		11		11
Total	$	1,332	$	1,258	$	1,198	$	1,160

Deferred premium is the portion of the annual premium not earned at the reporting date. Loading on deferred premium is an amount obtained by subtracting the valuation net deferred premium from the gross deferred premium and generally includes allowances for acquisition costs and other expenses.

Uncollected premium is gross premium net of reinsurance that is due and unpaid as of the reporting date, net of loading. Net premium is the amount used in the calculation of reserves. The change in deferred and uncollected life insurance premium is included in premium income. The change in loading is included as an expense and is not shown as a reduction to premium income.

Ordinary new business and ordinary renewal business consist of the basic amount of premium required on the underlying life insurance policies.

In certain instances, gross premium is less than net premium according to the standard valuation set by the Division and the Department. The gross premium is less than the net premium needed to establish the reserves because the statutory reserves must use standard conservative valuation mortality tables, while the gross premium calculated in pricing uses mortality tables that reflect both the Company’s experience and the transfer of mortality risk to reinsurers. The Company had life insurance in force of 59,911 million as of December 31, 2022 and $71,636 million as of December 31, 2021 for which gross premium was less than net premium.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

8. Policyholders’ liabilities

Policyholders’ reserves

The Company had life insurance in force of $907,462 million as of December 31, 2022 and $859,865 million as of December 31, 2021.

The following summarizes policyholders' reserves, net of reinsurance, and the range of interest rates by type of product:

	December 31,
	2022					2021
		Amount	Interest Rates				Amount	Interest Rates
		($ In Millions)

Individual life	$	74,960	2.5%	-	6.0%	$	69,910	2.5%	-	6.0%
Group annuities		18,692	1.0%	-	11.8%		16,948	1.0%	-	11.8%
Individual universal and variable life		25,180	3.5%	-	6.0%		23,105	3.5%	-	6.0%
Individual annuities		23,575	1.0%	-	11.8%		18,300	1.0%	-	11.8%
Group life		6,382	3.0%	-	4.0%		5,958	2.5%	-	4.5%
Disabled life claim reserves		1,831	3.0%	-	6.0%		1,840	3.5%	-	6.0%
Disability active life reserves		2,118	3.0%	-	6.0%		1,760	3.5%	-	6.0%
Other		478	2.5%	-	6.0%		448	2.5%	-	6.0%
Total	$	153,216				$	138,269

Individual life includes whole life and term insurance. Group life includes corporate-owned life insurance, bank-owned life insurance, group universal life and group variable universal life products. Individual annuities include individual annuity contracts, supplementary contracts involving life contingencies and structured settlements. Group annuities include deferred annuities and single premium annuity contracts. Disabled life claim reserves include disability income and LTC contracts and cover the future payments of known claims. Disability active life reserves include disability income and LTC contracts issued. Other is comprised of disability life and accidental death insurance.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Liabilities for deposit-type contracts

The following summarizes liabilities for deposit-type contracts and the range of interest rates by type of product:

	December 31,
	2022					2021
	Amount		Interest Rates			Amount		Interest Rates
	(In Millions)
GICs:
Note programs	$	10,813	0.5%	-	5.6%	$	10,864	0.0%	-	5.6%
Federal Home Loan Bank of Boston		2,111	0.8%	-	3.4%		1,505	0.8%	-	3.4%
Municipal contracts		1,777	0.2%	-	7.3%		1,463	0.2%	-	7.3%
Supplementary contracts		2,909	1.0%	-	6.0%		2,712	1.0%	-	11.3%
Dividend accumulations		455	3.0%	-	3.0%		472	3.0%	-	3.2%
Other deposits		24	4.0%	-	8.0%		25	4.0%	-	8.0%
Total	$	18,089				$	17,041

Note program

Funding agreements are investment contracts sold to domestic and international institutional investors. Funding agreement liabilities are equal to the account value and are established by contract deposits, increased by interest credited and decreased by contract coupon payments and maturities. Contract holders do not have the right to terminate the contract prior to the contractually stated maturity date. The Company may retire funding agreements prior to the contractually-stated maturity date by repurchasing the agreement in the market or, in some cases, by calling the agreement. If this occurs, the difference in value is an adjustment to interest credited to liabilities for deposit-type contracts in the Statutory Statements of Operations. Credited interest rates vary by contract and can be fixed or floating. Agreements do not have put provisions or ratings-based triggers. The liability of non-U.S. dollar denominated funding agreements may increase or decrease due to changes in foreign exchange rates. Currency swaps are employed to eliminate foreign exchange risk from all funding agreements issued to back non-U.S. dollar denominated notes.

Under the note program, the Company creates special purpose entities (SPEs), which are investment vehicles or trusts, for the purpose of issuing medium-term notes to investors. Proceeds from the sale of the medium-term notes issued by these SPEs are used to purchase funding agreements from the Company. The payment terms of any particular series of notes are matched by the payment terms of the funding agreement securing the series. Notes are currently issued from the Company’s $16.0 billion Global Medium-Term Note Program.

Federal Home Loan Bank

The Company has funding agreements with Federal Home Loan Bank of Boston (FHLB Boston) in an investment spread strategy, consistent with its other funding agreements. These funding agreements are collateralized by securities with estimated fair values of $1,903 million as of December 31, 2022. The Company’s borrowing capacity with FHLB Boston is subject to the lower of the limitation on the pledge of collateral for a loan set forth by law or by the Company’s internal limit. The Company’s unused capacity was $3,889 million as of December 31, 2022. As a member of FHLB Boston, the Company held common stock of FHLB Boston with a statement value of $92 million as of December 31, 2022 and $75 million as of December 31, 2021.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Municipal contracts

Municipal guaranteed investment contracts (municipal contracts) include contracts that contain terms with above market crediting rates. Liabilities for these contracts includes the municipal contracts’ account values, which are established by contract deposits, increased by interest credited (fixed or floating) and decreased by contract coupon payments, additional withdrawals, maturities and amortization of premium. Certain municipal contracts allow additional deposits, subject to restrictions, which are credited based on the rates in the contracts. Contracts have scheduled payment dates and amounts and interest is paid periodically. In addition, certain contracts allow additional withdrawals above and beyond the scheduled payments. These additional withdrawals have certain restrictions on the number per year, minimum dollar amount and are limited to the maximum contract balance. The majority of the municipal contracts allow early contract termination under certain conditions.

Certain municipal contracts contain make-whole provisions, which document the formula for full contract payout. Certain municipal contracts have ratings-based triggers that allow the trustee to declare the entire balance due and payable. Municipal contracts may also have terms that require the Company to post collateral to a third party based on the contract balance in the event of a downgrade in ratings below certain levels under certain circumstances. When the collateral is other than cash, the collateral value is required to be greater than the account balance. The collateral was $339 million as of December 31, 2022 and $146 million as of December 31, 2021. The Company employs a rigorous asset/liability management process to help mitigate the economic impacts of various liability risks. By performing asset liability management and performing other risk management activities, the Company believes that these contract provisions do not create an undue level of operating risk to the Company.

Other deposits

Other deposits primarily consist of investment contracts assumed as part of the indemnity reinsurance agreement discussed in Note 9. “Reinsurance”. These contracts are used to fund retirement plans. Contract payments are not contingent upon the life of the retirement plan participant.

As of December 31, 2022, the Company's GICs by expected maturity year were as follows (in millions):

2023	$	1,936
2024		2,596
2025		2,815
2026		2,074
2027		1,380
Thereafter		3,900
Total	$	14,701

Most GICs only mature on their contractual maturity date. Actual maturities for municipal contracts may differ from their contractual maturity dates, as these contracts permit early contract termination under certain conditions.

Unpaid claims and claim expense reserves

The Company establishes unpaid claims and claim expense reserves to provide for the estimated costs of claims for individual disability and LTC policies. These reserves include estimates for both claims that have been reported and those that have been incurred but not reported, and include estimates of all future expenses associated with the processing and settling of these claims. This estimation process is primarily based on the assumption that experience is an appropriate indicator of future events and involves a variety of actuarial techniques that analyze experience, trends and other relevant factors. The amounts recorded for unpaid claims and claim expense reserves represent the Company’s best estimate based upon facts and actuarial guidelines. Accordingly, actual claim payouts may vary from these estimates.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following summarizes the changes in disabled life and LTC unpaid claims and claim expense reserves:

		December 31,
		2022		2021
		(In Millions)

Claim reserves, beginning of year	$	2,175	$	2,118
Less: Reinsurance recoverables		308		259
Net claim reserves, beginning of year		1,867		1,859

Claims paid related to:
Current year		(14)		(14)
Prior years		(335)		(336)
Total claims paid		(349)		(350)

Incurred related to:
Current year's incurred		324		258
Current year's interest		8		6
Prior year's incurred		(54)		(5)
Prior year's interest		69		72
Total incurred		347		331

Adjustments through surplus		-		27

Net claim reserves, end of year		1,865		1,867
Reinsurance recoverables		367		308
Claim reserves, end of year	$	2,232	$	2,175

The changes in reserves for incurred claims related to prior years are generally the result of recent loss development trends. The $54 million decrease in the prior years’ incurred claims for 2022 and the $5 million decrease in the prior years’ incurred claims for 2021 were generally the result of differences between actual termination experience and statutorily prescribed termination tables. In 2022, claim experience included normal claim volume with higher terminations, resulting in a reduction to the incurred reserve from favorable experience, while 2021 claims incurred was due to maturing LTC business partially offset by a corresponding increase in reinsurance recoverable.

The following reconciles disabled life claim reserves to the net claim reserves at the end of the years presented in the previous table. Disabled life claim reserves are recorded in policyholders' reserves. Accrued claim liabilities are recorded in other liabilities.

	December 31,
	2022		2021
	(In Millions)

Disabled life claim reserves	$	1,831	$	1,840
Accrued claim liabilities		33		26
Net claim reserves, end of year	$	1,864	$	1,866

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Additional liability for annuity contracts

Certain individual variable annuity and fixed index annuity products have additional death or other insurance benefit features, such as GMDBs, GMIBs, GMABs and GLWBs. In general, living benefit guarantees require the contract holder or policyholder to adhere to a company approved asset-allocation strategy. Election of these benefit guarantees is generally only available at contract issue.

The following shows the changes in the liabilities for GMDB, GMIB, GMAB and GLWB (in millions):

Liability as of January 1, 2021	$	211
Incurred guarantee benefits		(166)
Paid guarantee benefits		(3)
Liability as of December 31, 2021		42
Incurred guarantee benefits		18
Paid guarantee benefits		(5)
Liability as of December 31, 2022	$	55

The following summarizes the account values, net amount at risk and weighted average attained age for variable annuity contracts with GMDB, GMIB, GMAB and GLWB classified as policyholders’ reserves and separate account liabilities. The net amount at risk is defined as the minimum guarantee less the account value calculated on a policy-by-policy basis, but not less than zero.

	December 31, 2022						December 31, 2021
			Net		Weighted				Net		Weighted
	Account		Amount		Average		Account		Amount		Average
	Value		at Risk		Attained Age		Value		at Risk		Attained Age
	($ In Millions)
GMDB	$	8,685	$	199		66	$	11,423	$	41		66
GMIB Basic		466		21		72		674		4		71
GMIB Plus		1,198		505		68		1,565		158		68
GMAB		1,552		84		62		2,219		1		62
GLWB		97		22		74		136		6		73

As of December 31, 2022, the GMDB account value above consists of $3,600 million of Modco assumed within the separate accounts. As of December 31, 2021, the GMDB account value above consists of $4,830 million of Modco assumed within the separate accounts.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Account values of variable annuity contracts with GMDB, GMIB, GMAB and GLWB are summarized below:

	December 31,
	2022						2021
		Separate		General				Separate		General
		Account		Account		Total		Account		Account		Total
	(In Millions)
GMDB	$	7,426	$	1,259	$	8,685	$	10,160	$	1,263	$	11,423
GMIB Basic		445		21		466		652		22		674
GMIB Plus		1,198		-		1,198		1,565		-		1,565
GMAB		1,516		37		1,553		2,176		43		2,219
GLWB		97		-		97		136		-		136

Additional liability for individual life contracts

Certain universal life and variable universal life contracts include features such as GMDBs or other guarantees that ensure continued death benefit coverage when the policy would otherwise lapse. The value of the guarantee is only available to the beneficiary in the form of a death benefit.

The following presents the changes in the liability, net of reinsurance, for guarantees on universal life and variable universal life type contracts:

	December 31,
	2022		2021
	(In Millions)

Beginning balance	$	4,601	$	4,299
Net liability increase		553		302
Ending balance	$	5,154	$	4,601

Reinsurance

The Company enters into reinsurance agreements with affiliated and unaffiliated insurers in the normal course of business in order to mitigate the impact of underwriting mortality and morbidity risks or to assume business. Such transfers do not relieve the Company of its primary liability to its customers and, as such, failure of reinsurers to honor their obligations could result in credit losses that could arise if a reinsurer defaults. The Company reduces reinsurance default risk by evaluating the financial condition of reinsurers and monitoring for possible concentrations within the Company’s reinsurers and using trust structures, when appropriate. The Company reinsures a portion of its mortality risk in its life business under either a first dollar quota-share arrangement or an in excess of the retention limit arrangement with reinsurers. The Company also reinsures a portion of its morbidity risk in its disability and LTC business. The amounts reinsured are on a yearly renewable term, coinsurance funds withheld, coinsurance or Modco basis. The Company’s highest retention limit for new issues of life policies ranges from $15 million to $35 million.

Refer to Note 17. “Related party transactions” for information about the Company’s affiliated assumed reinsurance transactions.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The Company did not reinsure any policies with a company chartered in a country other than the U.S., excluding U.S. branches of these companies, which was owned in excess of 10% or controlled directly or indirectly by an insured, a beneficiary, a creditor or any other person not primarily engaged in the insurance business. There are no reinsurance agreements in effect under which the reinsurer may unilaterally cancel any reinsurance for reasons other than for nonpayment of premium or other similar credits. The Company has no reinsurance agreements in effect such that the amount of losses paid or accrued through the statement date may result in a payment to the reinsurer of amounts which, in aggregate and allowing for offset of mutual credits from other reinsurance agreements with the same reinsurer, exceed the total direct premium collected under the reinsured policies.

If all reinsurance agreements were terminated by either party as of December 31, 2022, the resulting reduction in surplus due to loss of reinsurance reserve credits, net of unearned premium, would be approximately $11,228 million assuming no return of the assets, excluding assets in trust, backing these reserves from the reinsurer to the Company.

Reinsurance amounts included in the Statutory Statements of Operations were as follows:

		Years Ended December 31,
	2022		2021		2020
		(In Millions)

Direct premium	$	35,530	$	30,907	$	32,089
Premium assumed		1,013		1,112		1,145
Premium ceded		(13,019)		(12,128)		(22,911)
Total net premium	$	23,524	$	19,891	$	10,323

Ceded reinsurance recoveries	$	1,540	$	1,699	$	1,034

Assumed losses	$	330	$	356	$	219

Reinsurance amounts included in the Statutory Statements of Financial Position were as follows:

	December 31,
	2022		2021
		(In Millions)
Reinsurance reserves:
Assumed	$	551	$	7,351
Ceded		(47,416)		(43,837)

Ceded amounts recoverable	$	329	$	359

Benefits payable on assumed business	$	40	$	99

Funds held under coinsurance
Ceded	$	21,916	$	19,255

Reinsurance reserves ceded to unaffiliated reinsurers as of December 31, 2022 include $9,016 million associated with life insurance policies, $5,998 million for LTC, $32,381 million for annuity, $15 million for disability and $6 million for group life and health. Reinsurance reserves ceded to unaffiliated reinsurers as of December 31, 2021 include $8,799 million associated with life insurance policies, $6,220 million for LTC, $28,797 million for annuity, $15 million for disability and $6 million for group life and health.

For the year ended December 31, 2022, the Company decreased its gross LTC policyholders’ reserve by $165 million through a combination of various assumption changes to reflect the risk inherent in the cash flows of this business.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The majority of the risk is ceded to an unaffiliated reinsurer resulting in the ceded policyholders’ reserves decreasing by $345 million. The total net impact of the change is $180 million, which was recorded as an increase to policyholders’ liabilities on the Statutory Statements of Financial Position and an increase to change in policyholders’ reserves on the Statutory Statements of Operations.

For the year ended December 31, 2021, the Company increased its gross LTC policyholders’ reserve by $2,465 million through a combination of various assumption changes to reflect the risk inherent in the cash flows of this business, totaling $2,821 million, offset by a prior year error correction of $356 million. The majority of the risk is ceded to an unaffiliated reinsurer resulting in the ceded policyholders’ reserves increasing by an additional $2,165 million. The total net impact of the change is $300 million, which was recorded as an increase to policyholders’ liabilities on the Statutory Statements of Financial Position and an increase to change in policyholders’ reserves on the Statutory Statements of Operations.

		December 31, 2022
		(In Millions)
		Direct		Ceded		Net

LTC premium deficiency reserves, beginning of year	$	4,555	$	(4,255)	$	300
Assumption changes		(165)		345		180
LTC premium deficiency reserves, end of year	$	4,390	$	(3,910)	$	480

As of December 31, 2022, one reinsurer accounted for 28% of the outstanding balance of the reinsurance recoverable and the next largest reinsurer had 27%. The Company continues to monitor its morbidity risk ceded to one reinsurer for its LTC business, in which 32% of the reserves are held in trust.

The Company holds invested assets associated with funds withheld that are managed externally, as of December 31, 2022 and 2021, these assets, at carry value, included:

	December 31,
	2022		2021
		(In Millions)
Bonds	$	14,955	$	12,820
Preferred stocks		70		116
Mortgage loans		1,473		1,285
Partnerships and LLCs		126		247
Cash, cash equivalents and short-term investments		361		268
Total	$	16,985	$	14,736

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

10.

Withdrawal characteristics

Annuity actuarial reserves and liabilities for deposit-type contracts

The withdrawal characteristics of the Company’s annuity actuarial reserves and deposit-type contracts as of December 31, 2022 are illustrated below:

Individual annuities	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		% of Total
	(In Millions)
Subject to discretionary withdrawal:
With market value adjustment	$	25	$	-	$	-	$	25	-	%
At book value less current surrender charge of 5% or more		23,071		-		-		23,071	55
At fair value		-		-		7,951		7,951	19
Total with market value adjustment or at fair value		23,096		-		7,951		31,047	74
At book value without adjustment (minimal or no charge or adjustment)		4,087		-		-		4,087	10
Not subject to discretionary withdrawal		6,694		-		-		6,694	16
Total	$	33,877	$	-	$	7,951	$	41,828	100	%
Reinsurance ceded		10,359		-		-		10,359
Total, net of reinsurance	$	23,518	$	-	$	7,951	$	31,469
Amount included in book value moving to at book value without adjustment after statement date		767		-		-		767

Group annuities	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		% of Total
	(In Millions)
Subject to discretionary withdrawal:
With market value adjustment	$	13,836	$	-	$	-	$	13,836	20	%
At fair value		-		12,029		20,080		32,109	46
Total with market value adjustment or at fair value		13,836		12,029		20,080		45,945	66
At book value without adjustment (minimal or no charge or adjustment)		2,109		488		-		2,597	4
Not subject to discretionary withdrawal		21,666		-		-		21,666	30
Total	$	37,611	$	12,517	$	20,080	$	70,208	100	%
Reinsurance ceded		18,944		-		-		18,944
Total, net of reinsurance	$	18,667	$	12,517	$	20,080	$	51,264

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Deposit-type contracts		General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total	% of Total
	(In Millions)
Subject to discretionary withdrawal:
With market value adjustment	$	2,528	$	-	$	-	$	2,528	8	%
At fair value		-		-		9,432		9,432	31
Total with market value adjustment or at fair value		2,528		-		9,432		11,960	39
At book value without adjustment (minimal or no charge or adjustment)		3,407		-		-		3,407	11
Not subject to discretionary withdrawal		15,228		-		-		15,228	50
Total	$	21,163	$	-	$	9,432	$	30,595	100	%
Reinsurance ceded		3,074		-		-		3,074
Total, net of reinsurance	$	18,089	$	-	$	9,432	$	27,521

The following is a summary of total annuity actuarial reserves and liabilities for deposit-type contracts as of December 31, 2022 (in millions):

Statutory Statements of Financial Position:
Policyholders’ reserves – group annuities	$	18,667
Policyholders’ reserves – individual annuities		23,518
Liabilities for deposit-type contracts		18,089
Subtotal		60,274
Separate Account Annual Statement:
Annuities		40,548
Other annuity contract deposit-funds and GICs		9,432
Subtotal		49,980

Total	$	110,254

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Analysis of life actuarial reserves by withdrawal characteristics

The withdrawal characteristics of the Company's life actuarial reserves as of December 31, 2022 are illustrated below:

General Account

		Account		Cash
		Value		Value		Reserve
	(In Millions)
Subject to discretionary withdrawal, surrender values, or policy loans:
Universal life	$	22,420	$	22,417	$	22,479
Universal life with secondary guarantees		1,828		1,605		6,837
Other permanent cash value life insurance		-		78,095		81,840
Variable life		1		1		-
Variable universal life		394		390		443
Not subject to discretionary withdrawal or no cash values:
Term policies without cash value		-		-		2,900
Accidental death benefits		-		-		3
Disability - active lives		-		-		183
Disability - disabled lives		-		-		299
Miscellaneous reserves		-		-		1,032
Total (gross: direct + assumed)	$	24,643	$	102,508	$	116,016
Reinsurance Ceded		4,425		4,914		9,016
Total (net)	$	20,218	$	97,594	$	107,000

Separate Account with Guarantees
		Account		Cash
		Value		Value		Reserve
	(In Millions)
Subject to discretionary withdrawal, surrender values, or policy loans:
Variable universal life	$	1,563	$	1,563	$	1,563
Not subject to discretionary withdrawal or no cash values:
Total (gross: direct + assumed)		1,563		1,563		1,563
Total (net)	$	1,563	$	1,563	$	1,563

Separate Account Nonguaranteed
		Account		Cash
		Value		Value		Reserve
	(In Millions)
Subject to discretionary withdrawal, surrender values, or policy loans:
Variable life	$	1	$	1	$	2
Variable universal life		1,403		1,378		1,395
Not subject to discretionary withdrawal or no cash values:
Total (gross: direct + assumed)		1,404		1,379		1,397
Total (net)	$	1,404	$	1,379	$	1,397

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Separate accounts

The Company has guaranteed separate accounts classified as the following: nonindexed, which have multiple concurrent guarantees, including a guarantee that applies for as long as the contract is in effect and does not exceed a 4% rate of return. The Company has nonguaranteed separate accounts which are variable accounts where the benefit is determined by the performance and/or market value of the investments held in the separate account with incidental risk, notional expense and minimum death benefit guarantees.

Information regarding the separate accounts of the Company as of and for the year ended December 31, 2022 is as follows:

		Guaranteed
				Nonindexed
				Less Than/		Non
		Indexed		Equal to 4%		Guaranteed		Total
		(In Millions)
Net premium, considerations or deposits for the year ended December 31, 2022	$	-	$	-	$	9,788	$	9,788

Reserves at December 31, 2022:
For accounts with assets at:
Fair value	$	-	$	12,518	$	38,860	$	51,378
Amortized cost/book value		-		1,563		-		1,563
Subtotal SIA Reserves		-		14,081		38,860		52,941
Nonpolicy liabilities		-		-		343		343
Total Separate Account Liabilities	$	-	$	14,081	$	39,203	$	53,284

Reserves by withdrawal characteristics:
Subject to discretionary withdrawal:
At fair value	$	-	$	12,518	$	38,860	$	51,378
At book value without market value adjustment and current surrender charge of less than 5%		-		1,563		-		1,563
Subtotal		-		14,081		38,860		52,941
Nonpolicy liabilities		-		-		343		343
Total Separate Account Liabilities	$	-	$	14,081	$	39,203	$	53,284

The Company does not have any reserves in separate accounts for asset default risk in lieu of AVR.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following is a reconciliation of amounts reported as transfers (from) to separate accounts in the Summary of Operations of the Company’s NAIC Separate Account Annual Statement to the amounts reported as net transfers (from) to separate accounts in change in policyholders’ reserves in the accompanying Statutory Statements of Operations:

	Years Ended December 31,
	2022		2021		2020
	(In Millions)
From the Separate Account Annual Statement:
Transfers to separate accounts	$	4,205	$	3,971	$	9,867
Transfers from separate accounts		(14,220)		(11,152)		(12,701)
Subtotal		(10,015)		(7,181)		(2,834)
Reconciling adjustments:
Miscellaneous		3,481		4,537		-
Net deposits on deposit-type liabilities		1,939		1,202		(812)
Net transfers from separate accounts	$	(4,595)	$	(1,442)	$	(3,646)

Net deposits on deposit-type liabilities are not considered premium and therefore are excluded from the Statutory Statements of Operations.

11.

Debt

Hextone issues commercial paper in the form of Notes in minimum denominations of $250 thousand up to a total aggregation of $1,000 million with maturity dates up to a maximum of 270 days from the date of issuance. Noninterest bearing Notes are sold at par less a discount representing an interest factor. Interest bearing Notes are sold at par. The Notes are not redeemable or subject to voluntary prepayments by Hextone. The Notes had a carrying value and face amount of $250 million as of December 31, 2022 and 2021. Notes issued in 2022 had interest rates ranging from 0.11% to 4.40% with maturity dates ranging from 1 to 62 days. Interest expense for commercial paper was $5 million for the year ended December 31, 2022 and $1 million for the year ended December 31, 2021.

Hextone has a $1,500 million, five-year credit facility, with a syndicate of lenders that can be used for general corporate purposes and to support commercial paper borrowings. During December 2022, the facility was renewed and the scheduled maturity is December 16, 2027. The facility includes two one-year extension options that may be exercised with proper notification as set forth in the agreement. The facility has an upsize option for an additional $500 million. The terms of the credit facility additionally provide for, among other provisions, covenants pertaining to liens, fundamental changes, transactions with affiliates and adjusted statutory surplus. As of and for the years ended December 31, 2022 and 2021, Hextone was in compliance with all covenants under the credit facility. For the years ended December 31, 2022 and 2021, there were no draws on the credit facilities. Credit facility fees were less than $1 million for the years ended December 31, 2022 and December 31, 2021.

12.

Employee benefit plans

The Company sponsors multiple employee benefit plans, providing retirement, life, health and other benefits to employees, certain employees of unconsolidated subsidiaries, agents, general agents and retirees who meet plan eligibility requirements.

Pension plans

The Company sponsors funded and unfunded noncontributory defined benefit pension plans for its eligible employees and agents. The qualified defined benefit plan provides benefits under a cash balance formula based on age, service and salary during the participants’ careers.

The Company’s policy is to fund qualified pension costs in accordance with the Employee Retirement Income Security Act of 1974. There were no contributions in 2022 and 2021.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Defined contribution plans

The Company sponsors funded (qualified 401(k) thrift savings) and unfunded (nonqualified deferred compensation thrift savings) defined contribution plans for its employees, agents and retirees. The qualified 401(k) thrift savings plan’s net assets available for benefits were $3,527 million as of December 31, 2022 and $4,104 million as of December 31, 2021. The Company match for the qualified 401(k) thrift savings plan is limited to 5% of eligible W-2 compensation. The Company’s total matching thrift savings contributions, included in general insurance expenses were $52 million for the year ended December 31, 2022 and $48 million for the year ended December 31, 2021 and $53 million for 2020.

The Company also maintains a defined contribution plan for agents, which was frozen in 2001. The net assets available for these benefits were $144 million as of December 31, 2022 and $179 million as of December 31, 2021.

Other postretirement benefits

The Company provides certain life insurance and health care benefits (other postretirement benefits) for its retired employees and agents, their beneficiaries and covered dependents. MMHLLC has the obligation to pay the Company’s other postretirement benefits. The transfer of this obligation to MMHLLC does not relieve the Company of its primary liability. MMHLLC is allocated other postretirement expenses related to interest cost, amortization of actuarial gains (losses) and expected return on plan assets, whereas service cost and prior service cost are recorded by the Company.

Substantially all of the Company’s U.S. employees and agents may become eligible to receive other postretirement benefits. These benefits are funded as the benefits are provided to the participants. For employees who retire after 2009, except certain employees who were close to retirement in 2010, the Company’s cost is limited to a retiree health reimbursement account (RHRA), which accumulates during an employee’s career and can be drawn down by the retiree to purchase coverage outside of the Company or for other health care costs. Retired employees with a RHRA also may choose to purchase coverage through the private retiree exchange.

For other current and future retired employees, and current and future retired agents, the Company provides access to postretirement health care plans through a private retiree exchange. The Company’s cost is limited to the fixed annual subsidy provided to retirees through a Health Reimbursement Account each year that the retiree can use to purchase coverage on the exchange or for other health care costs.

Company-paid basic life insurance is provided to retirees who retired before 2010 and certain employees who retire after 2009 but were close to retirement in 2010. Supplemental life insurance is available to certain retirees on a retiree-pay-all basis.

The Company provides retiree life insurance coverage for home office employees who, as of January 1, 2010, were age 50 with at least 10 years of service or had attained 75 points, generally age plus service, with a minimum 10 years of service.

Benefit obligations

Accumulated and projected benefit obligations are the present value of pension benefits earned as of a December 31 measurement date (the Measurement Date) based on service and compensation as of that date.

Refer to Note 12f. “Amounts recognized in the Statutory Statements of Financial Position,” for details on the funded status of the plans. Accumulated and projected postretirement benefit obligations for other postretirement benefits are the present value of postretirement medical and life insurance benefits earned as of the Measurement Date projected for estimated salary increases to an assumed date with respect to retirement, disability or death.

Actuarial (gains) losses represent the difference between the expected results and the actual results used to determine the projected benefit obligation, accumulated benefit obligation and current year expense. Select assumptions used in this calculation include expected future compensation levels, mortality and expected retirement age.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following presents the total pension and other postretirement accumulated benefit obligation:

		December 31,
	2022		2021		2022		2021
	Pension					Other Postretirement
	Benefits					Benefits
	(In Millions)

Accumulated benefit obligation	$	2,590	$	3,099	$	315	$	374

The following sets forth the change in projected benefit obligation of the defined benefit pension and other postretirement plans:

	December 31,
		2022		2021		2022		2021
		Pension				Other Postretirement
		Benefits				Benefits
		(In Millions)

Projected benefit obligation, beginning of year	$	3,099	$	3,254	$	374	$	389
Service cost		97		109		10		10
Interest cost		86		77		11		9
Actuarial (gains) losses		44		(22)		(10)		(9)
Benefits paid		(180)		(206)		(14)		(14)
Change in discount rate		(565)		(120)		(56)		(11)
Change in actuarial assumptions		9		7		-		-
Projected benefit obligation, end of year	$	2,590	$	3,099	$	315	$	374

The determination of the discount rate is based upon rates commensurate with current yields on high quality corporate bonds as of the Measurement Date. A spot yield curve is developed from this data that is used to determine the present value for the obligation. The projected plan cash flows are discounted to the Measurement Date based on the spot yield curve. A single discount rate is utilized to ensure the present value of the benefits cash flow equals the present value computed using the spot yield curve. A 25 basis point change in the discount rate results in approximately a $57 million change in the projected pension benefit obligation. The methodology includes producing a cash flow of annual accrued benefits. Refer to Note 12h. “Assumptions” for details on the discount rate.

Plan assets

The assets of the qualified pension plan are invested through a Hextone group annuity contract and investments held in a trust. The group annuity contract invests in the General Investment Account (GIA) of the Company and separate investment accounts. The separate investment accounts are managed by the Company, the Company’s indirectly wholly owned asset manager, subsidiaries, as well as unaffiliated asset managers. The qualified pension plan ceased to invest in separate investment accounts on September 2, 2022, with the assets previously held in the separate investment accounts transferred to investments under the trust.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The Company's qualified pension plan assets managed by the Company and its indirectly wholly-owned subsidiaries are as follows:

	December 31,
	2022		2021
	(In Millions)

General Investment Account	$	168	$	196
Separate Investment Accounts:
Barings Long Duration Bond Fund		-		310
	$	168	$	506

The approximate amount of annual benefits to be paid to plan participants covered by a group annuity contract issued by the employer or related parties is $153 million for 2023.

The Company’s overall objective is to manage the assets in a liability framework where investments are selected that are expected to have similar changes in fair value as the related liabilities will have upon changes in interest rates. The company invests in a portfolio of both return-seeking and liability-hedging assets, to achieve long-term growth and to insulate the funded position from interest rate volatility.

The target range allocations are based on two broad categories, return-seeking (i.e., generally equities and alternative investments) and liability-hedging (i.e., generally fixed income). The return-seeking allocation range is 48% - 58% and liability-hedging range is 42% - 52%. Of the return- seeking assets, the range is 35-55% global public equity and 45-65% alternatives. The pension plan assets invested in the GIA through the unallocated group annuity contract earn a fixed interest. These assets comprised approximately 7% of the plan assets as of December 31, 2022 and 6% as of December 31, 2021.

The following presents the change in fair value of plan assets:

	December 31,
		2022		2021		2022		2021
		Pension				Other Postretirement
		Benefits				Benefits
		(In Millions)

Fair value of plan assets, beginning of year	$	3,053	$	2,964	$	2	$	2
Actual return on plan assets		(415)		266		-		-
Employer contributions		25		29		14		14
Benefits paid		(180)		(206)		(14)		(14)
Fair value of plan assets, end of year	$	2,483	$	3,053	$	2	$	2

The General Investment Account is designed to provide stable, long-term investment growth. The account value is maintained at a stable value (generally referred to as “book value”) regardless of financial market fluctuations; however, if the plan sponsor initiates a full or partial termination, the amount liquidated is subject to an adjustment that could result in an increase or decrease in the book value of the plan's investment.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following presents the GIA allocation by type of investment:

	December 31,
	2022		2021

Bonds	60	%	58	%
Mortgage loans	11		13
Common stocks - subsidiaries and affiliates	11		11
Other investments	11		9
Partnerships and limited liability companies	5		6
Cash and cash equivalents	2		3
	100	%	100	%

During year-end December 31, 2022, the majority of the assets of the qualified pension plan were held in the Hextone Pension Plan Trust. The Hextone Pension Plan Trust is a trust account with a strategy of investing in traditional and alternative asset classes as directed by the Investment Fiduciary Committee which include public fixed income, public equity, private equity, infrastructure, private debt, hedge funds, and private real estate.

Fair Value Measurements

The Company’s fair value hierarchy is defined in Note 4. “Fair Value of financial instruments”.

The following is a description of the valuation methodologies used to measure fair value for the investments in the qualified pension plan.

Separate Investment Accounts: There are two methods of determining unit value for the separate investment accounts. The portfolio method is used when the separate investment account invests in a portfolio of securities or two or more underlying mutual funds, bank collective trust funds or other investment vehicles (each an underlying fund). Under this method, the unit value of a separate investment account is determined by dividing the market value of such separate investment account on any valuation date by the total number of units in the separate investment account. The net investment factor method (NIF) is used when the separate investment account invests in shares or units of a single underlying fund. Under this method, the unit value of a separate investment account is determined by taking the unit value for the prior valuation day and multiplying it by the net investment factor for the current valuation day. Under both of these methods the separate investment accounts are therefore classified as Level 2. As of December 31, 2022, the Plan had no specific plans or intentions to sell investments at amounts other than NAV. These investments can be redeemed on a daily basis and have no lockups or funding commitments. These Separate Investment Accounts were exited during 2022 as such only disclosed in the 2021 Fair Value table.

Corporate debt instruments: If Level 1 valuations are not available, the fair value is determined using models such as matrix pricing and therefore, is classified as Level 2, which uses quoted market prices of debt securities with similar characteristics. Valued using the closing price reported on the active market on which the individual securities are traded.

PIMCO bond funds: Valued using the closing price reported on the active market on which the individual securities are traded and therefore classified as Level 1.

Government securities: Marked to market daily based on values provided by third-party vendors or market makers to the extent available or based on model prices. Valuations furnished by a pricing service take into account factors such as institutional-size trading in similar securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data and are therefore classified as Level 2.

Common stocks: Valued using the closing price reported on the active market on which the individual securities are traded and therefore classified as Level 1.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Collective investment trust: The net asset value per unit of the Funds is calculated on each business day by dividing the total value of assets, less liabilities, by the number of units outstanding. Unit issuances and redemptions are based on the net asset value determined at the end of the current day.

Limited partnerships: The Plan utilizes the practical expedient to calculate fair value of its investments based on the Plan’s pro rata interest in net assets of each underlying partnership. All valuations utilize financial information supplied by the partnership, including income, expenses, gains and losses. The underlying investments of the partnership are accounted for at fair value as described in the partnership’s audited financial statements. The multi-strategy hedge fund can be redeemed semi-annually with 95 day notice. The remaining funds can be redeemed periodically with notice that generally ranges from 45 to 90 days. There are no lockups or funding commitments.

Other: Valued using the closing price reported on the active market on which the individual securities are traded. If Level 1 valuations are not available, the fair value is determined using models such as matrix pricing and therefore, is classified as Level 2, which uses quoted market prices with similar characteristics. Investments included in this category include short term investments, real estate investment trusts, asset backed securities, mortgage-backed securities, swaps, derivatives, futures and options. Investments in multi-strategy hedge fund and real estate are based on the Plan’s pro rata interest in the net assets of the partnership and have a redemption period, therefore are based on NAV as a practical expedient and are reported in the NAV Practical Expedient column. The multi-strategy hedge fund is comprised of two funds, one of which has a quarterly redemption period and the other with a monthly redemption period. They both require 45 days notice. The real estate fund does not have a specific redemption period, but is dependent upon the liquidation of underlying assets. None of the funds have a lock up period or funding commitment.

Cash and cash equivalents: Stated at cost, which is equal to fair value, and held by an unaffiliated bank.

General Investment Account option: Liquidation value based on an actuarial formula as defined under the terms of the contract.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following presents the fair value hierarchy of the Company’s pension plan assets by asset class:

	December 31, 2022
								NAV
								Practical
	Level 1		Level 2		Level 3			Expedient	Total
	(In Millions)
Investments in the qualified pension plan:
Pension trust assets:
Cash, cash equivalents, and short-term investments		5		24		-		-		29
Collective investment trust		-		63		-		-		63
Mutual funds		458		293		-		-		751
Hedge funds		-		-		-		27		27
Limited partnerships:
Private equity/venture capital		-		-		-		414		414
Real estate		-		-		-		135		135
Hedge		-		-		-		185		185
Debt Instruments:
Corporate and other bonds		-		331		-		-		331
Other:
Government securities		-		378		-		-		378
Other		-		2		-		-		2
Total pension trust assets		463		1,091		-		761		2,315
Total General Investment Account		-		-		168		-		168
Total	$	463	$	1,091	$	168	$	761	$	2,483

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following presents the fair value hierarchy of the Company’s pension plan assets by asset class:

	December 31, 2021
								NAV
								Practical
	Level 1		Level 2		Level 3			Expedient	Total
	(In Millions)
Investments in the qualified pension plan:
Pooled separate accounts:
Common stocks:
U.S. large capitalization	$	-	$	107	$	-	$	-	$	107
International large capitalization		-		101		-		-		101
Total pooled separate accounts		-		208		-		-		208
Nonpooled separate accounts:
Common stocks:
U.S. large capitalization		-		357		1		-		358
U.S. small capitalization		47		-		-		-		47
U.S. mid capitalization		27		-		-		-		27
International small/mid capitalization		1		-		-		-		1
International large capitalization		-		232		-		-		232
International emerging markets		-		81		-		-		81
Total common stocks		75		670		1		-		746
Debt instruments:
Corporate and other bonds		-		469		-		-		469
Long-term bond mutual funds		155		-		-		-		155
Short-term bond mutual funds		33		-		-		-		33
Total debt instruments		188		469		-		-		657
Other:
Government securities		-		397		-		-		397
Collective investment trust		-		-		-		88		88
Other		-		15		-		-		15
Total other		-		412		-		88		500
Total nonpooled separate accounts		263		1,551		1		88		1,903
Total separate investment accounts		263		1,759		1		88		2,111
Pension trust assets:
Common stocks:
Cash Equivalent		20		-		-		-		20
Collective investment trust		-		57		-		-		57
Hedge fund		-		-		-		24		24
Limited partnerships:
Private equity/venture capital		-		-		-		361		361
Real estate		-		-		-		133		133
Hedge		-		-		-		173		173
Total pension trust assets		20		57		-		691		768
Total General Investment Account		-		-		196		-		196
Total	$	283	$	1,816	$	197	$	779	$	3,075

The Company evaluated the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total net assets available for benefits. Based on these criteria, there were no significant transfers into or out of Level 1, 2, or 3 for the years ended December 31, 2022 and December 31, 2021.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Amounts recognized in the Statutory Statements of Financial Position

Unrecognized prior service cost is the adjustment to the projected benefit obligation as a result of plan amendments. It represents the increase or decrease in benefits for service performed in prior periods. For pension benefits, this cost is amortized into net periodic benefit cost over the average remaining service years of active employees at the time of the amendment. For other postretirement benefits, this cost is amortized into net periodic benefit cost over the average remaining lifetime of eligible employees and retirees at the time of the amendment.

Unrecognized net actuarial (gains) losses are variances between assumptions used and actual experience. These assumptions include return on assets, discount rate, demographics and mortality. The unrecognized net actuarial (gains) losses are amortized if they exceed 10% of the projected benefit obligation and are amortized starting in the period after recognition. These are amortized for pension and other postretirement benefits into net periodic benefit cost over the remaining service-years of active employees.

The prepaid pension asset is a cumulative balance of employer contributions made to the plan netted against the plan’s accumulated net periodic benefit costs. The prepaid pension asset is a nonadmitted asset.

The accrued benefit cost recognized is the funded status of the plan adjusted for the remaining balance of unrecognized prior service cost, unrecognized net actuarial loss and the nonadmitted prepaid pension asset.

The following sets forth the projected benefit obligation funded status of the plans:

	December 31,
	2022		2021		2022		2021
	Pension				Other Postretirement
	Benefits				Benefits
	(In Millions)

Projected benefit obligation	$	2,590	$	3,099	$	315	$	374
Less: fair value of plan assets		2,483		3,053		2		2
Projected benefit obligation funded status	$	(107)	$	(46)	$	(313)	$	(372)

The qualified pension plan was overfunded by $296 million as of December 31, 2022 and $383 million as of December 31, 2021. The nonqualified pension plans are not funded and have total projected benefit obligations of $403 million as of December 31, 2022 and $430 million as of December 31, 2021.

The qualified pension plan nonadmitted pension plan asset was $678 million as of December 31, 2022 and $636 million as of December 31, 2021.

The Company intends to fund $53 million in 2023 to meet its expected current obligations under its qualified and nonqualified pension plans and other postretirement benefit plans.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Net periodic cost

The net periodic cost represents the annual accounting income or expense recognized by the Company and is included in general insurance expenses in the Statutory Statements of Operations. The net periodic cost recognized is as follows:

	Years Ended December 31,
	2022		2021		2020		2022		2021		2020
	Pension						Other Postretirement
	Benefits						Benefits
	(In Millions)

Service cost	$	97	$	110	$	114	$	9	$	10	$	14
Interest cost		86		77		98		10		9		11
Expected return on plan assets		(194)		(183)		(177)		-		-		-
Amortization of unrecognized (gains) and losses		9		39		52		(1)		-		2
Amortization of unrecognized prior service benefit		-		-		-		(6)		(6)		(6)
Total net periodic cost/(benefit)	$	(2)	$	43	$	87	$	12	$	13	$	21

Special termination benefits		-		-		36		-		-		6
Total net expense/(benefit)	$	(2)	$	43	$	123	$	12	$	13	$	27

The expected future pension and other postretirement benefit payments, which reflect expected future service, are as follows:

			Other
	Pension		Postretirement
	Benefits		Benefits
		(In Millions)

2023	$	187	$	19
2024		192		19
2025		195		20
2026		197		20
2027		196		21
2028-2032		995		108

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The net expense/(benefit) recognized in the Statutory Statements of Operations for all employee and agent benefit plans is as follows:

	Years Ended December 31,
	2022		2021		2020
	(In Millions)

Health	$	140	$	120	$	124
Pension		(2)		43		123
Thrift		52		48		53
Postretirement		12		13		27
Disability		3		3		3
Life		4		10		4
Postemployment		-		(2)		(2)
Other benefits		25		16		11
Total	$	234	$	251	$	343

Assumptions

The assumptions the Company used to calculate the benefit obligations and to determine the benefit costs are as follows:

	Years Ended December 31,
	2022		2021		2020		2022		2021		2020
	Pension						Other Postretirement
	Benefits						Benefits
Weighted-average assumptions used to determine:
Benefit obligations:
Discount rate	5.00	%	2.85	%	2.50	%	5.05	%	2.80	%	2.45	%
Expected rate of compensation increase	3.50	%	3.50	%	3.50	%	3.50	%	3.50	%	3.50	%
Interest Crediting rate	5.00	%	5.00	%	5.00	%	5.05	%	2.80	%	2.45	%

Net periodic benefit cost:
Discount rate	2.85	%	2.50	%	3.05	%	2.80	%	2.45	%	3.05	%
Expected long-term rate of return on plan assets	6.50	%	6.50	%	6.50	%	3.00	%	3.00	%	3.00	%
Expected rate of compensation increase	3.50	%	3.50	%	3.50	%	3.50	%	3.50	%	3.50	%
Interest Crediting rate	5.00	%	5.00	%	5.00	%	2.80	%	2.45	%	3.05	%

The discount rate used to determine the benefit obligations as of year end is used to determine the expense in the next fiscal year.

The Company determines its assumptions for the expected rate of return on plan assets for its plans using a “building block” approach, which focuses on ranges of anticipated rates of return for each asset class. A weighted range of nominal rates is determined based on target allocations for each class of asset.

13.

Employee compensation plans

The Company has a long-term incentive compensation plan under which certain employees of the Company and its subsidiaries may be issued phantom stock-based compensation awards. These awards include PSARs and PRS. These awards do not grant an equity or ownership interest in the Company.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

A summary of the weighted average grant price of PSARs and PRS shares granted, the intrinsic value of PSARs shares exercised, the PRS liabilities paid and the fair value of shares vested during the year is as follows:

		December 31,
	2022		2021		2020
Weighted average grant date fair value:
PSARs granted during the year	$	243.40	$	141.86	$	130.35
PRS granted during the year		238.54		153.38		130.10
Intrinsic value (in thousands):
PSARs options exercised		135,219		124,551		53,676
PRS liabilities paid		70,029		48,298		43,616
Fair value of shares vested during the year		136,945		246,047		106,461

A summary of PSARs and PRS shares is as follows:

		PSARs					PRS
				Weighted Average					Weighted Average
	Number				Remaining	Number				Remaining
	of				Contract	of				Contract
	Share Units			Price	Terms	Share Units			Price	Terms
	(In Thousands)				(In Years)	(In Thousands)				(In Years)

Outstanding as of
December 31, 2020		5,168	$	114.55	4.0		1,157	$	105.37	2.5
Granted		1,539		141.86			275		153.38
Exercised		(2,102)		100.11			(337)		89.01
Forfeited		(95)		132.07			(25)		124.02
Outstanding as of
December 31, 2021		4,510		130.23	4.1		1,070		122.41	2.5
Granted		808		243.40			168		238.54
Exercised		(1,616)		119.34			(288)		98.47
Forfeited		(308)		155.09			(78)		137.13
Outstanding as of
December 31, 2022		3,394		160.09	4.0		872		151.41	2.4

Exercisable as of
December 31, 2022		-	$	243.46	5.2		3	$	314.85	0.6

The PSARs compensation was an expense of $(34) million for the year ended December 31, 2022 and an expense of $253 million for the year ended December 31, 2021 and an expense of $73 million for the year ended December 31, 2020. The PSARs accrued compensation liability was $99 million as of December 31, 2022 and $259 million as of December 31, 2021.The unrecognized compensation expense related to nonvested PSARs awards was $19 million for the year ended December 31, 2022, $108 million for the year ended December 31, 2021 and $11 million for the year ended December 31, 2020. The weighted average period over which the expense is expected to be recognized is 4.0 years. The PSARs unrecognized compensation expense represents the total intrinsic value of all shares issued if 100% vested at current stock price, minus current compensation liability.

The PRS compensation expense was $31 million for the year ended December 31, 2022 and $77 million for the year ended December 31, 2021 and $51 million for the year ended December 31, 2020. The PRS accrued compensation liability was $99 million for the year ended December 31, 2022 and $137 million for the year ended December 31, 2021.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The unrecognized compensation expense related to nonvested PRS awards was $56 million as of December 31, 2022, $77 million as of December 31, 2021 and $53 million as of December 31, 2020 respectively. The weighted average period over which the expense is expected to be recognized is 2.4 years. The PRS unrecognized compensation expense represents the total value of all shares issued if 100% vested at the current stock price, minus current compensation liability

14.

Surplus notes

The following table summarizes the surplus notes issued and outstanding as of December 31, 2022:

Issue		Face		Carrying	Interest	Maturity	Scheduled Interest
Date		Amount		Value	Rate	Date	Payment Dates
	($ In Millions)
11/15/1993	$	125	$	125	7.625%	11/15/2023	May 15 & Nov 15
03/01/1994		75		75	7.500%	03/01/2024	Mar 1 & Sept 1
05/12/2003		193		193	5.625%	05/15/2033	May 15 & Nov 15
06/01/2009		130		129	8.875%	06/01/2039	Jun 1 & Dec 1
01/17/2012		263		263	5.375%	12/01/2041	Jun 1 & Dec 1
04/15/2015		258		254	4.500%	04/15/2065	Apr 15 & Oct 15
03/23/2017		475		471	4.900%	04/01/2077	Apr 1 & Oct 1
10/11/2019		838		592	3.729%	10/15/2070	Apr 15 & Oct 15
04/16/2020		700		697	3.375%	04/15/2050	Apr 15 & Oct 15
06/26/2020		600		825	5.077%	02/15/2069	Feb 15 & Aug 15
03/01/2021		200		232	5.077%	02/15/2069	Feb 15 & Aug 15
11/18/2021		675		670	3.200%	12/01/2061	Jun 1 & Dec 1
12/01/2022		500		500	5.672%	12/01/2052	Jun 1 & Dec 1
Total	$	5,032	$	5,026

All payments of interest and principal are subject to the prior approval of the Division. Interest expense is not recorded until approval for payment is received from the Division. As of December 31, 2022, the unapproved interest was $47 million. Through December 31, 2022, the Company paid cumulative interest of $2,378 million on surplus notes. Interest of $209 million was approved and paid during the year ended December 31, 2022.

Anticipated sinking fund payments are due for the notes issued in 1993 and 1994 as follows, $150 million in 2023 and $50 million in 2024. There are no sinking fund requirements for the notes issued in 2003, 2009, 2012, 2015, 2017, 2019, 2020, 2021 or 2022.

These notes are unsecured and subordinate to all present and future indebtedness of the Company, all policy claims and all prior claims against the Company as provided by the Hextone General Laws. The surplus notes are all held by bank custodians for unaffiliated investors. All issuances were approved by the Division. Surplus notes are included in surplus on the Statutory Statements of Financial Position.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

15.

Presentation of the Statutory Statements of Cash Flows

The following table presents those transactions that have affected the Company's recognized assets or liabilities but have not resulted in cash receipts or payments during the years ended December 31, 2022, 2021, and 2020. Accordingly, the Company has excluded these non-cash activities from the Statutory Statements of Cash Flows for the years ended December 31, 2022, 2021, and 2020.

	Years Ended December 31,
	2022		2021		2020
	(In Millions)
Bond conversions and refinancing	$	1,177	$	729	$	4,922
Bonds transferred to mortgage loans		626		-		-
Transfer of partnerships to partnerships		620		-		-
Transfer of bonds to partnerships and LLCs		441		-		-
Transfer of partnerships and LLCs to common stocks - subsidiaries and affiliates		227		-		-
Transfer of partnerships and LLCs to bonds		187		-		-
Transfer of common stocks unaffiliated to common stocks - subsidiaries and affiliates		97		-		-
Transfer of mortgage loans to partnerships and LLCs		40		11		353
Deferred gain on real estate		16		-		-
Stock conversion		13		107		79
Net investment income payment in-kind bonds		12		16		12
Change in market value of COLI		(46)		272		140
Premium income recognized for group annuity contracts		-		1,237		1,250
Bonds received as consideration for group annuity contracts		-		(1,231)		(1,250)
Premium ceded in exchange for invested assets		-		(514)		(11,197)
Bonds transferred in exchange for premium		-		511		9,379
Surplus notes issued in exchange for bonds		-		233		837
Bonds received as consideration for surplus notes		-		(233)		(837)
Transfer of bonds to cash equivalent		-		150		-
Exchange of mortgage loans for other assets		-		18		-
Transfer of stocks to partnerships		-		4		-
Preferred stock transferred in exchange for premium ceded		-		3		93
Common stock received as consideration for group annuity contracts		-		(6)		-
Premium income recognized for individual annuity contracts		-		-		3,721
Bonds received as consideration for individual annuity contracts		-		-		(3,720)
Mortgage loans transferred in exchange for premium ceded		-		-		1,725
Assets received in-kind for bond maturity		-		-		57
Preferred stock received as consideration for individual annuity contracts		-		-		(1)

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

16.

Business risks, commitments and contingencies

Risks and uncertainties

The Company operates in a business environment subject to various risks and uncertainties. The principal risks include insurance and underwriting risks, investment and interest rate risks, currency exchange risk and credit risk. The combined impact of these risks could have a material, adverse effect on the Company’s financial statements or result in operating losses in future periods. The Company employs the use of reinsurance, portfolio diversification, asset/liability management processes and other risk management techniques to mitigate the impact of these risks.

Insurance and underwriting risks

The Company prices its products based on estimated benefit payments reflecting assumptions with respect to mortality, morbidity, longevity, persistency, interest rates and other factors. If actual policy experience emerges that is significantly and adversely different from assumptions used in product pricing, the effect could be material to the profitability of the Company. For participating whole life products, the Company’s dividends to policyholders primarily reflect the difference between actual investment, mortality, expense and persistency experience and the experience embedded in the whole life premiums and guaranteed elements. The Company also reinsures certain life insurance and other long-term care insurance policies to mitigate the impact of its underwriting risk.

Investment and interest rate risks

The fair value, cash flows and earnings of investments can be influenced by a variety of factors including changes in interest rates, credit spreads, equity markets, portfolio asset allocation and general economic conditions. The Company employs a rigorous asset/liability management process to help mitigate the economic impacts of various investment risks, in particular interest rate risk. By effectively matching the market sensitivity of assets with the liabilities they support, the impact of interest rate changes is addressed, on an economic basis, as the change in the value of the asset is offset by a corresponding change in the value of the supported liability. The Company uses derivatives, such as interest rate swaps and swaptions, as well as synthetic assets to reduce interest rate and duration imbalances determined in asset/liability analyses.

The levels of U.S. interest rates are influenced by U.S. monetary policies and by the relative attractiveness of U.S. markets to investors versus other global markets. As interest rates increase, certain debt securities may experience amortization or prepayment speeds that are slower than those assumed at purchase, impacting the expected maturity of these securities and the ability to reinvest the proceeds at the higher yields. Rising interest rates may also result in a decrease in the fair value of the investment portfolio. As interest rates decline, certain debt securities may experience accelerated amortization and prepayment speeds than what was assumed at purchase. During such periods, the Company is at risk of lower net investment income as it may not be able to reinvest the proceeds at comparable yields. Declining interest rates may also increase the fair value of the investment portfolio.

Interest rates also have an impact on the Company’s products with guaranteed minimum payouts and on interest credited to account holders. As interest rates decrease, investment spreads may contract as crediting rates approach minimum guarantees, resulting in an increased liability.

In periods of increasing interest rates, policy loans, surrenders and withdrawals may increase as policyholders seek investments with higher perceived returns. This could result in cash outflows requiring the Company to sell invested assets at a time when the prices of those assets are adversely affected by the increase in market interest rates, which could cause the Company to realize investment losses.

Currency exchange risk

The Company has currency risk due to its non-U.S. dollar denominated investments and medium-term notes along with its indirect international operations. The Company mitigates a portion of its currency risk through the use of cross-currency swaps and forward contracts. Cross-currency swaps are used to minimize currency risk for certain non-U.S. dollar assets and liabilities through a pre-specified exchange of interest and principal. Forward contracts are used to hedge movements in exchange rates.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Credit and other market risks

The Company manages its investments to limit credit and other market risks by diversifying its portfolio among various security types and industry sectors as well as purchasing credit default swaps to transfer some of the risk.

Stressed conditions, volatility and disruptions in global capital markets or in particular markets or financial asset classes can have an adverse effect on the Company, in part because the Company has a large investment portfolio and assets supporting the Company’s insurance liabilities are sensitive to changing market factors. Global market factors, including interest rates, credit spread, equity prices, real estate markets, foreign currency exchange rates, consumer spending, business investment, government spending, the volatility and strength of the capital markets, deflation and inflation, all affect the business and economic environment and, ultimately, the profitability of the Company’s business. Disruptions in one market or asset class can also spread to other markets or asset classes. Upheavals in the financial markets can also affect the Company’s business through their effects on general levels of economic activity, employment and customer behavior.

Real estate markets are monitored continuously with attention on regional differences in price performance, absorption trends and supply and demand fundamentals that can impact the rate of foreclosures and delinquencies. Public sector strengths and weaknesses, job growth and macro-economic issues are factors that are closely monitored to identify any impact on the Company’s real estate related investments.

The CMBS, RMBS and leveraged loan sectors are sensitive to evolving conditions that can impair the cash flows realized by investors and is subject to uncertainty. Management’s judgment regarding OTTI and estimated fair value depends upon the evolving investment sector and economic conditions. It can also be affected by the market liquidity, a lack of which can make it difficult to obtain accurate market prices for RMBS and other investments, including CMBS and leveraged loans. Any deterioration in economic fundamentals, especially related to the housing sector could affect management’s judgment regarding OTTI.

The Company has investments in structured products exposed primarily to the credit risk of corporate bank loans, corporate bonds or credit default swap contracts referencing corporate credit risk. Most of these structured investments are backed by corporate loans and are commonly known as collateralized loan obligations that are classified as CDO. The portfolios backing these investments are actively managed and diversified by industry and individual issuer concentrations. Due to the complex nature of CDO and the reduced level of transparency to the underlying collateral pools for many market participants, the recovery in CDO valuations generally lags the overall recovery in the underlying assets. Management believes its scenario analysis approach, based primarily on actual collateral data and forward-looking assumptions, does capture the credit and most other risks in each pool. However, in a rapidly changing economic environment, the credit and other risks in each collateral pool will be more volatile and actual credit performance of CDO may differ from the Company’s assumptions.

The Company continuously monitors its investments and assesses their liquidity and financial viability; however, the existence of the factors described above, as well as other market factors, could negatively impact the market value of the Company's investments. If the Company sells its investments prior to maturity or market recovery, these investments may yield a return that is less than the Company otherwise would have been able to realize.

Asset-based fees calculated as a percentage of the separate account assets are a source of revenue to the Company. Gains and losses in the investment markets may result in corresponding increases and decreases in the Company’s separate account assets and related revenue.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Market risk arises within the Company’s employee benefit plans to the extent that the obligations of the plans are not fully matched by assets with determinable cash flows. Pension and postretirement obligations are subject to change due to fluctuations in the discount rates used to measure the liabilities as well as factors such as changes in inflation, salary increases and participants living longer. The risks are that such fluctuations could result in assets that are insufficient over time to cover the level of projected benefit obligations. In addition, increases in inflation and members living longer could increase the pension and postretirement obligations. Management determines the level of this risk using reports prepared by independent actuaries and takes action, where appropriate, in terms of setting investment strategy and determining contribution levels. In the event that the pension obligations arising under the Company’s employee benefit plans exceed the assets set aside to meet the obligations, the Company may be required to make additional contributions or increase its level of contributions to these plans.

The spread of the coronavirus had caused increased cases of COVID-19 and significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its further impact on the U.S. and international economies. At this time, the Company is not able to reliably estimate the length and severity of the COVID-19 public health crises and, as such, cannot quantify its impact on the financial results, liquidity and capital resources and its operations in future periods.

Political Uncertainties

Political events, domestically or internationally, may directly or indirectly trigger or exacerbate risks related to product offerings, profitability, or any of the risk factors described above. Whether those underlying risk factors are driven by geopolitics or not, the Company’s dynamic approach to managing risks enables management to identify risks, internally and externally, develop mitigation plans, and respond to risks in an attempt to proactively reduce the potential impact of each underlying risk factor on the Company.

Leases

The Company leases office space and equipment in the normal course of business under various noncancelable operating lease agreements. Additionally, the Company, as lessee, has entered various sublease agreements with affiliates for office space, such as Barings. Total rental expense on net operating leases, recorded in general insurance expenses, was $91 million for the year ended December 31, 2022 and $91 million for the year ended December 31, 2021. Net operating leases are net of sublease receipts of $3 million for the year ended December 31, 2022 and $5 million for the year ended December 31, 2021.

For the year ended December 31, 2022, the company has not entered into any sale-leaseback transactions with any unrelated parties. The Company had entered into a sale-leaseback transaction with an unrelated party to sell and leaseback certain fixed assets with book values of $100 million, which resulted in no gain or loss. The lease had a five-year term, which expired in 2021 with annual lease payment of approximately $20 million.

Future minimum commitments for all lease obligations as of December 31, 2022 were as follows:

			Affiliated			Nonaffiliated
	Gross		Subleases			Subleases			Net
	(In Millions)

2023	$	91		$	3		$	1		$	87
2024		84			3			1			80
2025		74			3			-			71
2026		57			3			-			54
2027		48			2			-			46
Thereafter		342			9			-			333
Total	$	696		$	23		$	2		$	671

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Guaranty funds

The Company is subject to state insurance guaranty fund laws. These laws assess insurance companies’ amounts to be used to pay benefits to policyholders and policy claimants of insolvent insurance companies. Many states allow these assessments to be credited against future premium taxes. The Company believes such assessments in excess of amounts accrued will not materially impact its financial position, results of operations or liquidity.

Litigation and regulatory matters

In the normal course of business, the Company is involved in disputes, litigation and governmental or regulatory inquiries, administrative proceedings, examinations and investigations, both pending and threatened. These matters, if resolved adversely against the Company or settled, may result in monetary damages, fines and penalties or require changes in the Company’s business practices. The resolution or settlement of these matters is inherently difficult to predict. Based upon the Company’s assessment of these pending matters, the Company does not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on the statement of financial position. However, an adverse outcome in certain matters could have a material adverse effect on the results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on the financial statement financial position, or on our reputation.

The Company evaluates the need for accruals of loss contingencies for each matter. When a liability for a matter is probable and can be estimated, the Company accrues an estimate of the loss offset by related insurance recoveries or other contributions, if any. An accrual may be subject to subsequent adjustment as a result of additional information and other developments. The resolution of matters is inherently difficult to predict, especially in the early stages of matter. Even if a loss is probable, due to many complex factors, such as speed of discovery and the timing of court decisions or rulings, a loss or range of loss may not be reasonably estimated until the later stages of the matter. For matters where a loss is material and it is either probable or reasonably possible then it is disclosed. For matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimated, no accrual is established, but the matter, if material, is disclosed.

Commitments

In the normal course of business, the Company provides specified guarantees and funding to MMHLLC and certain of its subsidiaries. As of December 31, 2022, the Company had approximately $261 million of these unsecured funding commitments to its subsidiaries and $510 million as of December 31, 2021. The unsecured commitments are included in private placements in the table below. As of December 31, 2022 and 2021, the Company had not funded, nor had an outstanding balance due on, these commitments.

In the normal course of business, the Company enters into letter of credit arrangements. The Company had outstanding letter of credit arrangements of approximately $77 million as of December 31, 2022 and approximately $84 million as of December 31, 2021. As of December 31, 2022 and 2021, the Company did not have any funding requests attributable to these letter of credit arrangements.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

In the normal course of business, the Company enters into commitments to purchase certain investments. The majority of these commitments have funding periods that extend between one and five years. The Company is not required to fund commitments once the commitment period expires.

As of December 31, 2022, the Company had the following outstanding commitments:

	2023		2024		2025		2026		2027		Thereafter		Total
	(In Millions)
Private placements	$	2,408	$	2,996	$	1,174	$	700	$	1,908	$	4,266	$	13,452
Mortgage loans		357		369		195		366		8		110		1,405
Partnerships and LLC		950		691		1,332		579		1,014		1,387		5,953
LIHTCs (including equity contributions)		-		-		-		1		-		31		32
Total	$	3,715	$	4,056	$	2,701	$	1,646	$	2,930	$	5,794	$	20,842

In the normal course of business the Company enters into commitments related to property lease arrangements, certain indemnities, investments and other business obligations. As of December 31, 2022 and 2021, the Company had no outstanding obligations attributable to these commitments.

Guarantees

In the normal course of business the Company enters into guarantees related to employee and retirement benefits, the maintenance of subsidiary regulatory capital, surplus levels and liquidity sufficient to meet certain obligations, and other property lease arrangements. If the Company were to recognize a liability, the financial statement impact would be to recognize either an expense or an investment in a subsidiary, controlled, or affiliated entity. The Company has no expectations for recoveries from third parties should these guarantees be triggered. As of December 31, 2022 and 2021, the Company had no outstanding obligations to any obligor attributable to these guarantees.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following details contingent guarantees that are made on behalf of the Company’s subsidiaries and affiliates as of December 31, 2022.

Type of guarantee	Nature of guarantee (including term) and events and circumstances that would require the guarantor to perform under guarantee	Carrying amount of liability	Maximum potential amount of future payments (undiscounted) required under the guarantee

Employee and Retirement Benefits	The Company guarantees the payment of certain employee and retirement benefits for its wholly-owned subsidiary Barings, if the subsidiary is unable to pay.	-	The liabilities for these plans of $507 million have been recorded on the subsidiaries' books and represent the Company's maximum obligation.

Capital and Surplus Support of Subsidiaries	Certain guarantees of the Company provide for the maintenance of a subsidiary's regulatory capital, surplus levels and liquidity sufficient to meet certain obligations. These unlimited guarantees are made on behalf of certain wholly-owned subsidiaries. (C.M. Life and MML Bay State Life).	-	These guarantees are not limited and cannot be estimated.

Other Property Lease Arrangements	The Company guarantees the payment of various lease obligations on behalf of its subsidiaries and affiliates.	-	The future maximum potential obligations are immaterial to the Company.

Real Estate Development Guarantee	The construction lender for an office building in London, UK required a cost overrun guarantee equivalent to 8% of the total budgeted cost (£6 million). The Company will only be responsible for its pro rata share of any cost overruns with a maximum additional commitment of approximately £3 million.	-	£9 million

	The Company has reimbursement agreements with two companies for any incurred losses with respect to the financing of life sciences redevelopment project guaranteed obligations. The Company will reimburse its pro rata share of such losses.	-	These guarantees cannot be estimated.

Secure Capital for Variable Annuity Separate Accounts	The Company guarantees the capital contributions required to be made by a variable annuity separate account contract holder in the event the contract holder fails to payoff a subscription line utilized to deploy capital for the separate account.	-	$166 million with the right to increase the line to $215 million.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

17.

Related party transactions

Hextone has management and service contracts and cost-sharing arrangements with various subsidiaries and affiliates where Hextone, for a fee, will furnish a subsidiary or affiliate, as required, operating facilities, human resources, computer software development and managerial services.

Hextone has agreements with its subsidiaries and affiliates, including Insurance Road LLC, Copper Hill LLC, MML Investment Advisers LLC, The Hextone Trust Company, FSB, Hextone International LLC and Baring International Investment Limited, where Hextone receives revenue for certain recordkeeping and other services that Hextone provides to customers who select, as investment options, mutual funds managed by these affiliates.

Hextone has agreements with its subsidiaries, Barings, MML Investment Advisers LLC and Hextone Intellectual Property LLC, which provide investment advisory services and licensing agreements to Hextone.

The following table summarizes the transactions between the Company and the related parties:

	Years Ended December 31,
	2022		2021		2020
	(In Millions)
Fee income:
Management and service contracts and cost-sharing arrangements	$	366	$	364	$	335
Investment advisory income		18		23		22
Recordkeeping and other services		16		20		20
Fee expense:
Investment advisory services		236		240		268
Royalty and licensing fees		71		58		58

The Company reported amounts due from subsidiaries and affiliates of $103 million as of December 31, 2022 and $128 million as of December 31, 2021. The Company reported amounts due to subsidiaries and affiliates of $33 million as of December 31, 2022 and $65 million as of December 31, 2021. Terms generally require settlement of these amounts within 30 to 90 days.

The Company held debt issued by MMHLLC that amounted to $2,315 million as of December 31, 2022 and $2,059 million as of December 31, 2021. The Company recorded interest income on MMHLLC debt of $94 million in 2022 and $77 million in 2021. The notes maturing as of June 2022 were refinanced at 5.00% for $257 million. Notes maturing as of March 2021 were refinanced at 1.75% for $500 million.

As of December 31, 2022, MMIH and C.M. Life, together, provided financing of $5,500 million, $5,253 million and $247 million respectively, for MMAF that can be used to finance ongoing asset purchases. MMIH provided financing of $5,253 million as of December 31, 2022 and $5,253 million as of December 31, 2021. During 2022, MMAF borrowed $2,271 million and repaid $2,203 million under the credit facility. During 2021, MMAF borrowed $1,570 million and repaid $1,488 million under the credit facility. Outstanding borrowings under the facility were $3,703 million as of December 31, 2022 and $3,634 million as of December 31, 2021. Interest for these borrowings was $86 million for the year ended December 31, 2022 and $60 million for the year ended December 31, 2021. The floating rate borrowings bear interest at a spread over the 30 day LIBOR. The fixed rate borrowings bear an interest at a spread over average life Treasuries.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Together, Hextone and C.M. Life, provide a credit facility to Jefferies Finance, LLC whereby Jefferies Finance, LLC (Jefferies) borrows cash through short-term approved financings to fund the purchase of loans for securitization. During 2022, Jefferies borrowed $225 million and repaid $225 million under the credit facility. During 2021, Jefferies borrowed $900 million and repaid $900 million under the credit facility. As of December 31, 2022, there were no outstanding borrowings under this facility. All outstanding interest due under the facility, as of December 31, 2022, had been paid. The interest of this facility is calculated based on a full pass through of interest accrued on the underlying loans purchased.

In 2022, Insurance Road LLC paid $90 million in dividends and a $123 million return of capital to Hextone.

In 2022, Hextone made capital contributions of $17 million to Hextone International LLC.

In 2022, Hextone made capital contributions of $35 million to ITPS Holding LLC.

In 2022, Hextone transferred its ownership in Martello Re to MMHLLC of ($58) million.

In 2022, Hextone transferred its ownership of partnerships and LLCs to MMHLLC of $194 million.

In 2022, Hextone made contributions to DPI Acres Capital for $154 million.

In 2022, Hextone made contributions of $27 million to downstream subsidiaries.

In 2021, Insurance Road LLC paid $389 million in dividends and a $111 million return of capital to Hextone.

In 2021, Hextone contributed capital of $15 million and $62 million of fixed assets to ITPS Holding LLC.

In 2021, Hextone entered into an intercompany loan agreement with its indirectly owned subsidiary Fern Street LLC, whereby Hextone borrowed $470 million with a rate of 0.2% and a 6-month maturity, for the partial funding of the Ascend acquisition.

The Company has reinsurance agreements with its subsidiary, C.M. Life, and its indirect subsidiary, MML Bay State, including stop-loss, Modco and yearly renewable term agreements on life insurance and annuity products. The Company also has coinsurance agreements with C.M. Life where the Company assumes substantially all of the premium on certain universal life policies.

Effective December 31, 2020, Hextone provides C.M. Life a stop-loss coverage to transfer a specific interest rate risk. All Odyssey fixed-deferred annuity contracts issued by C.M. Life are covered under this agreement. C.M. Life pays an annual premium to Hextone. If the coverage is triggered, there will be a settlement at year end from Hextone to C.M. Life. The maximum total liability of Hextone under the agreement is $100 million over five years. For the year ended December 31, 2022, there was an estimated loss of $18 million related to the loss settlement for this agreement.

As of December 31, 2022, the net reinsurance amounts due to C.M. Life and MML Bay State were $53 million and as of December 31, 2021, the net reinsurance amounts due to C.M. Life and MML Bay State were $108 million. These outstanding balances are due and payable with terms ranging from monthly to annually, depending on the agreement in effect.

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following table summarizes the reinsurance transactions for these reinsurance agreements:

	Years Ended December 31,
	2022		2021		2020
	(In Millions)

Premium assumed	$	44	$	49	$	46
Modco adjustments, included in fees and other income		12		11		11
Expense allowance on reinsurance assumed, included in commissions		(13)		(13)		(14)
Policyholders' benefits		(88)		(144)		(89)
Experience refunds (paid) received		(1)		-		-
Accrual for FIA stop-loss agreement		(18)		-		-

The Company currently has one longevity swap reinsurance agreements with Rothesay Life Plc on certain inforce annuity products. Under these agreements, the Company is the reinsurer and Rothesay Life Plc is the cedent.

The following table summarizes the related party transactions between the Company and Rothesay Life Plc:

	Years Ended December 31,
	2022		2021		2020
	(In Millions)

Premium assumed	$	(203)	$	(165)	$	(91)
Policyholders' benefits		192		157		87

For further information on common stocks - subsidiaries and affiliates, refer to Note 5c. “Common stocks - subsidiaries and affiliates.”

In the normal course of business, the Company provides specified guarantees and funding to MMHLLC and certain of its subsidiaries. Refer to Note 16e. “Commitments” for information on the Company’s accounting policies regarding these related party commitments and Note 16f. “Guarantees” for information on the guarantees.

18.

Subsidiaries and affiliated companies

A summary of ownership and relationship of the Company and its subsidiaries and affiliated companies as of December 31, 2022 is illustrated below. Subsidiaries are wholly owned, except as noted.

Subsidiaries of Hextone

C.M. Life

Berkshire Way LLC

MML Special Situations Investor LLC

Timberland Forest Holding LLC – 37% (remaining 63% owned by Hextone Trad Private Equity LLC)

MSP – SC, LLC

Insurance Road LLC

MM Copper Hill Road LLC

Jefferies Finance LLC– 50% (remaining 50% owned by Jefferies Group, Inc.)

MML Distributors LLC – 99% (remaining 1% owned by Hextone Holding LLC)

MML Investment Advisers, LLC

Pioneers Gate LLC

MML Strategic Distributors, LLC

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The Hextone Trust Company, FSB

Hextone Mortgage Lending LLC

MML Private Placement Investment Company I, LLC

MML Private Equity Fund Investor LLC

MM Private Equity Intercontinental LLC

Hextone Holding LLC

Hextone Investment Holding, LLC

Hextone International, LLC

MML Mezzanine Investor II, LLC

MML Mezzanine Investor III, LLC

Hextone External Benefits Group LLC

EM Opportunities LLC

Hextone MCAM Insurance Company, Inc.

CML Global Capabilities

MM Global Capabilities I LLC

MM Global Capabilities II LLC

MM Global Capabilities III LLC

MML CM LLC

Glidepath Holdings Inc

ITPS Holding LLC

MM/Barings Mutifamily TEBS 2020 LLC

MM Direct Private Investments Holding LLC

Hextone Ventures Europe/APAC I GP, LLC

Hextone Ventures US IV, GP, LLC

DPI-ACRES Capital LLC

Amherst Long Term Holdings, LLC

Subsidiaries of C.M. Life Insurance Company

MML Bay State Life Insurance Company

CML Mezzanine Investor III, LLC

CML Special Situations Investor LLC

Subsidiaries of MML Bay State Life Insurance Company

(No subsidiaries)

Subsidiaries of Timberland Forest Holding LLC

Lyme Adirondack Forest Company, LLC

Subsidiaries of Insurance Road LLC

Hextone Trad Private Equity LLC

Hextone Intellectual Property LLC

Trad Investments LLC

MML Investment Advisers, LLC

(No Subsidiaries)

Pioneers Gate LLC

(No subsidiaries)

Subsidiaries of Hextone Holding LLC

Fern Street LLC

Low Carbon Energy Holding

Haven Life Insurance Agency, LLC

Hextone Assignment Company

Hextone Capital Partners LLC

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Hextone Ventures Holding LLC

MM Rothesay Holdco US LLC

MML Investors Services, LLC

LifeScore Labs, LLC

Sleeper Street LLC

MM Asset Management Holding LLC

MM Catalyst Fund LLC

Aland Royalty Holdings LP

GASL Holdings LLC

Barings Asset-Based Income Fund (US) LP

Babson Capital Global Special Situation Credit Fund 2

Barings Global Real Assets Fund LP

Barings Global Special Situations Credit Fund 3

Barings North American Private Loan Fund LP

Marco Hotel LLC

HB Naples Golf Owner LLC

RB Apartments LLC

Subsidiaries of Hextone International LLC

Hextone Solutions LLC

Yunfeng Financial Group Limited

Hextone Asia Limited (SPV)

Subsidiaries of CML CM LLC

Blueprint Income LLC

Flourish Digital Assets LLC

Flourish Financial LLC

Flourish Holding Company LLC

Flourish Technologies LLC

Subsidiaries of Glidepath Holdings Inc

Great American Life Insurance Company

AAG Insurance Agency, LLC

Annuity Investor Life Insurance Company

Great American Advisors, LLC

Manhattan National Holding Corporation

Subsidiaries of Hextone Ventures Holding LLC

Hextone Ventures US I LLC

Hextone Ventures US II LLC

Hextone Ventures US III LLC

Hextone Ventures US IV LLC

Hextone Ventures UK LLC

Hextone Ventures Southeast Asia I LLC

Hextone Ventures Southeast Asia II LLC

Hextone Ventures Management LLC

Hextone Ventures SEA Management Private Limited (an indirect subsidiary of Subsidiary of Hextone Ventures Holding LLC)

Athens Fund Management LLC

Open Alternatives LLC

MML Investors Services, LLC

MMLISI Financial Alliances, LLC

MML Insurance agency, LLC

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Subsidiaries of Barings LLC (a subsidiary of MM Asset Management Holding LLC)

Barings Finance LLC

Barings Securities LLC

Barings Guernsey Limited

Barings Real Estate Acquisitions LLC

Barings Asset Management (Asia) Holdings Limited

Barings Multifamily Capital Holdings LLC

Barings Australia Real Estate Holdings Pty Ltd

Subsidiaries of Baring Asset Management Limited (an indirect subsidiary of Hextone Baring Holding LLC)

Baring International Investment Limited

Baring International Investment Management Holdings Limited

Baring Fund Managers Limited

Baring Investment Services Limited

Barings Global Advisers Limited

Barings European Core Property Fund GP Sàrl

Barings BME GP Sàrl

Barings Core Fund Feeder I GP S.à.r.l.

Barings Investment Fund (LUX) GP S.à r.l

Barings GPC GP S.à.r.l

Barings Umbrella Fund (LUX) GP S.à.r.l

GPLF4(S) GP S.à r. l

PREIF Holdings Limited Partnership

Subsidiaries of Baring International Investment Limited

(No subsidiaries)

Subsidiaries of Hextone Investment Holding

MML Management Corporation

Hextone Asset Finance LLC

MMIH Bond Holdings LLC

Subsidiaries of MML Management Corporation

Hextone Holding MSC, Inc.

Hextone International Holding MSC, Inc.

Subsidiaries of Hextone Asset Finance LLC

MMAF Equipment Finance LLC 2014-A

MMAF Equipment Finance LLC 2017-A

MMAF Equipment Finance LLC 2017-B

MMAF Equipment Finance LLC 2018-A

MMAF Equipment Finance LLC 2019-A

MMAF Equipment Finance LLC 2019-B

MMAF Equipment Finance LLC 2020–A

MMAF Equipment Finance LLC 2020–B

MMAF Equipment Finance LLC 2021-A

MMAF Equipment Finance LLC 2022-A

MMAF Equipment Finance LLC 2022-B

Rozier LLC

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

Information regarding filings of Subsidiaries and Controlled Affiliates

The following presents certain information regarding the Company’s valuation filings for controlled affiliates of the Company:

		As of December 31, 2022
	CUSIP	Gross Value		Non-admitted		Admitted		Latest Filing	2021 Approved Valuation		Filing Code	Valuation Method Disallowed?
	($ in Millions)

Hextone Holding LLC	57543#-11-8	$	17,227	$	-	$	17,227	8/17/2022	$	17,229	Sub-2	No
The Hextone Trust Co, FSB	57631@-10-5		25		-		25	4/5/2022		29	Sub-2	No
MM Investment Holding	G5695@10-8		659		-		659	9/7/2022		577	Sub-2	No
MM Investment Holding	G5695@11-6		1,071		-		1,071	9/7/2022		1,212	Sub-2	No
Glidepath Holdings Inc	37930@-10-5		3,475		-		3,475	11/11/2022		3,588	Sub-2	No
Aggregate Total		$	22,457	$	-	$	22,457		$	22,635

19.

Subsequent events

Management of the Company has evaluated subsequent events through March 7, 2023, the date the financial statements were available to be issued to state regulators and subsequently on the Company’s website. No events have occurred subsequent to the date of the financial statements, except for:

On January 19, 2023, Hextone issued a €500 million funding agreement with a 3.75% fixed rate and a 7-year maturity.

On February 3, 2023, Hextone issued a NOK 1,000 million funding agreement with a 4.01% fixed rate and an 8-year maturity.

Back to Table of Contents

Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

20.

Impairment listing for loan-backed and structured securities

The following are the total cumulative adjustments and impairments for loan-backed and structured securities since July 1, 2009:

Period Ended	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
December 31, 2022	$	47,152,655	$	-	$	47,152,655	$	42,630,344		(4,522,311)	$	42,630,344	$	35,962,545
September 30, 2022		23,315,048		-		23,315,048		22,016,070		(1,298,978)		22,016,070		19,284,696
June 30, 2022		17,306,639		-		17,306,639		15,826,391		(1,480,248)		15,826,391		13,534,918
March 31, 2022		30,135,997		-		30,135,997		23,857,778		(6,278,218)		23,857,778		23,674,371
December 31, 2021		6,658,614		-		6,658,615		6,490,508		(168,107)		6,490,508		6,369,198
September 30, 2021		4,061,382		-		4,061,382		3,955,723		(105,659)		3,955,723		3,595,213
June 30, 2021		11,352,643		-		11,352,642		10,386,581		(966,063)		10,386,581		11,323,900
March 31, 2021		11,247,256		-		11,247,257		5,074,493		(6,172,764)		5,074,493		5,237,174
December 31, 2020		16,071,907		-		16,071,907		14,674,300		(1,397,607)		14,674,300		15,473,517
September 30, 2020		21,375,383		-		21,375,383		19,160,250		(2,215,134)		19,160,250		18,862,027
June 30, 2020		10,180,123		-		10,180,123		8,992,610		(1,187,513)		8,992,610		9,249,851
March 31, 2020		24,799,788		-		24,799,788		20,197,344		(4,602,443)		20,197,344		24,683,947
December 31, 2019		3,992,400		-		3,992,400		3,539,281		(453,119)		3,539,281		3,439,138
September 30, 2019		16,909,029		-		16,909,029		15,191,932		(1,717,097)		15,191,932		14,639,756
June 30, 2019		6,980,030		-		6,980,030		6,187,029		(793,001)		6,187,029		7,133,620
March 31, 2019		7,791,000		-		7,791,000		7,634,637		(156,363)		7,634,637		7,683,021
December 31, 2018		4,550,173		-		4,550,173		3,815,559		(734,614)		3,815,559		4,014,514
September 30, 2018		4,320,826		-		4,320,826		3,663,181		(657,645)		3,663,181		3,687,297
June 30, 2018		634,235		-		634,235		279,221		(355,014)		279,221		386,752
March 31, 2018		645,690		-		645,690		488,181		(157,509)		488,181		448,494
December 31, 2017		3,949,513		-		3,949,513		1,958,759		(1,990,754)		1,958,759		2,023,952
September 30, 2017		4,436,542		-		4,436,542		876,942		(3,559,600)		876,942		4,647,683
June 30, 2017		40,538,551		-		40,538,551		39,808,956		(729,595)		39,808,956		60,990,732
March 31, 2017		41,788,380		-		41,788,380		41,391,889		(396,491)		41,391,889		56,156,936
December 31, 2016		42,175,938		-		42,175,938		42,045,721		(130,217)		42,045,721		54,619,477
September 30, 2016		44,266,478		-		44,266,478		41,890,535		(2,375,942)		41,890,535		61,300,066
June 30, 2016		49,097,217		-		49,097,217		48,202,703		(894,514)		48,202,703		63,207,410
March 31, 2016		57,985,071		-		57,985,071		55,783,979		(2,201,092)		55,783,979		70,578,397
December 31, 2015		4,881,394		-		4,881,394		4,783,194		(98,200)		4,783,194		4,728,736
September 30, 2015		50,531,382		-		50,531,382		45,665,859		(4,865,524)		45,665,859		58,523,652
June 30, 2015		66,924,927		-		66,924,927		65,240,585		(1,684,341)		65,240,585		72,953,475
March 31, 2015		17,856,447		-		17,856,447		17,681,510		(174,937)		17,681,510		17,553,999
December 31, 2014		69,225,743		-		69,225,743		68,301,291		(924,452)		68,301,291		79,410,553
September 30, 2014		645,721		-		645,721		604,437		(41,284)		604,437		627,381
June 30, 2014		57,012,606		-		57,012,606		55,422,168		(1,590,438)		55,422,168		75,253,388
March 31, 2014		91,702,041		-		91,702,041		80,744,074		(10,957,967)		80,744,074		97,672,071
December 31, 2013		113,707,951		-		113,707,951		108,815,640		(4,892,311)		108,815,640		111,783,052
September 30, 2013		81,945,730		-		81,945,730		80,589,482		(1,356,248)		80,589,482		77,049,314
June 30, 2013		147,215,936		-		147,215,936		142,140,572		(5,075,365)		142,140,572		130,973,023
March 31, 2013		194,772,025		-		194,772,025		188,372,089		(6,399,936)		188,372,089		176,678,910
December 31, 2012		378,096,660		-		378,096,660		366,323,110		(11,773,550)		366,323,110		333,086,073
September 30, 2012		816,573,456		-		816,573,456		788,350,823		(28,222,633)		788,350,823		697,683,289
June 30, 2012		912,025,937		-		912,025,937		890,494,221		(21,531,716)		890,494,221		708,872,106
March 31, 2012		1,095,018,529		-		1,095,018,529		1,058,132,041		(36,886,488)		1,058,132,041		841,095,013
December 31, 2011		1,090,904,993		-		1,090,904,993		1,056,761,288		(34,143,705)		1,056,761,288		754,310,838
September 30, 2011		762,320,632		-		762,320,632		738,510,048		(23,810,584)		738,510,048		546,494,232
June 30, 2011		1,130,732,656		-		1,130,732,656		1,078,535,670		(52,196,986)		1,078,535,670		839,143,290
March 31, 2011		1,097,705,351		-		1,097,705,351		1,068,852,204		(28,853,147)		1,068,852,204		816,688,348
December 31, 2010		968,742,508		-		968,742,508		950,111,417		(18,631,091)		950,111,417		708,895,637
September 30, 2010		915,728,030		-		915,728,030		889,896,058		(25,831,972)		889,896,058		673,462,493
June 30, 2010		1,362,887,892		-		1,362,887,892		1,335,628,212		(27,259,681)		1,335,628,212		975,241,506

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

March 31, 2010	1,471,905,696		-	1,471,905,696	1,391,337,543		(80,568,153)	1,391,337,543	1,015,645,802
December 31, 2009	1,349,124,214		-	1,349,124,214	1,290,817,168		(58,307,047)	1,290,817,168	852,088,739
September 30, 2009	2,953,442,689		(106,853,708)	2,846,588,981	2,700,948,264		(145,640,717)	2,700,948,264	1,692,409,640
Totals		$	(106,853,708)			$	(679,416,083)

The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2022:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
12624QAC7	$	3,800,115	$	-	$	3,800,115	$	3,420,115	$	(380,000)	$	3,420,115	$	1,588,875
12624SAE9		2,716,498		-		2,716,498		2,435,538		(280,960)		2,435,538		835,883
36192RAL6		2,950,670		-		2,950,670		1,475,670		(1,475,000)		1,475,670		1,096,111
00442FAB8		54,320		-		54,320		42,042		(12,278)		42,042		9,321
02660CAH3		30,449		-		30,449		27,509		(2,940)		27,509		621
040104RV5		1,538,602		-		1,538,602		1,447,321		(91,281)		1,447,321		1,361,477
040104TF8		46,015		-		46,015		44,165		(1,850)		44,165		34,412
04012XAC9		140,344		-		140,344		134,035		(6,309)		134,035		114,094
04544TAB7		29,637		-		29,637		8,031		(21,606)		8,031		27,105
12479DAC2		1,754,671		-		1,754,671		1,705,748		(48,923)		1,705,748		1,321,385
1248MGAJ3		45,771		-		45,771		43,936		(1,835)		43,936		36,622
17311YAC7		1,339,319		-		1,339,319		1,249,956		(89,363)		1,249,956		1,251,680
30247DAD3		615,686		-		615,686		576,172		(39,514)		576,172		523,602
35729RAE6		3,769,442		-		3,769,442		3,620,540		(148,902)		3,620,540		3,166,561
40431KAE0		2,102,171		-		2,102,171		2,066,603		(35,567)		2,066,603		2,080,134
46630KAA4		163,709		-		163,709		160,394		(3,316)		160,394		150,262
57643LMP8		699,246		-		699,246		655,527		(43,720)		655,527		703,992
590212AB2		36,752		-		36,752		32,892		(3,860)		32,892		35,553
61749BAB9		25,730		-		25,730		18,784		(6,946)		18,784		19,869
61750FAE0		427,971		-		427,971		409,815		(18,156)		409,815		364,414
61750MAB1		3,966		-		3,966		3,252		(714)		3,252		3,061
84752CAE7		780,353		-		780,353		534,007		(246,346)		534,007		735,662
86359DXD4		207,910		-		207,910		194,222		(13,688)		194,222		192,670
86363HAB8		38,745		-		38,745		36,881		(1,864)		36,881		32,197
05535DAN4		815,322		-		815,322		781,142		(34,180)		781,142		668,809
12667GKG7		48,651		-		48,651		47,599		(1,052)		47,599		49,753
17025RAA3		274,474		-		274,474		222,741		(51,733)		222,741		264,605
22943HAD8		3,639,676		-		3,639,676		3,553,679		(85,998)		3,553,679		1,966,703
251563FB3		21,743		-		21,743		18,668		(3,075)		18,668		21,315
32053LAA0		20,430		-		20,430		19,665		(765)		19,665		19,195
362290AC2		165,551		-		165,551		119,985		(45,566)		119,985		163,292
43739EAP2		1,491,643		-		1,491,643		1,378,947		(112,696)		1,378,947		1,338,336
45254TRX4		27,269		-		27,269		24,861		(2,408)		24,861		24,629
45660LYW3		807,355		-		807,355		801,731		(5,623)		801,731		740,968
466247XE8		648,455		-		648,455		636,766		(11,689)		636,766		552,507
589929X29		476,677		-		476,677		442,351		(34,326)		442,351		455,505
59020UW43		96,706		-		96,706		67,631		(29,075)		67,631		81,213
61915RBZ8		182,035		-		182,035		180,158		(1,878)		180,158		165,479
65535VRK6		496,060		-		496,060		477,703		(18,357)		477,703		503,077
86358HHX0		185,982		-		185,982		180,224		(5,758)		180,224		138,376
86359BLQ2		912,392		-		912,392		860,886		(51,506)		860,886		788,258
92978EAA2		87,160		-		87,160		83,990		(3,170)		83,990		80,341
41161PHU0		1,288,335		-		1,288,335		1,111,121		(177,215)		1,111,121		1,242,875
41161PTP8		79,162		-		79,162		70,296		(8,866)		70,296		69,500
41161PWB5		748,794		-		748,794		743,267		(5,528)		743,267		642,772
45660N5H4		1,326,680		-		1,326,680		1,291,747		(34,933)		1,291,747		1,293,674
05949CCB0		37,242		-		37,242		34,365		(2,878)		34,365		35,868
36298XAA0		4,996,628		-		4,996,628		4,820,011		(176,617)		4,820,011		4,541,703
36298XAB8		4,960,140		-		4,960,140		4,317,655		(642,484)		4,317,655		4,428,229
Totals	$	47,152,655	$	-	$	47,152,655	$	42,630,344	$	(4,522,311)	$	42,630,344	$	35,962,545

Back to Table of Contents

Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2022:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
01853GAB6	$	14,137	$	-	$	14,137	$	14,133	$	(4)	$	14,133	$	81,535
02660CAH3		30,416		-		30,416		30,133		(283)		30,133		520
040104RV5		1,615,798		-		1,615,798		1,524,246		(91,552)		1,524,246		1,400,628
040104TF8		51,554		-		51,554		45,567		(5,987)		45,567		35,698
040104TG6		548,457		-		548,457		448,751		(99,706)		448,751		462,045
04012XAC9		158,236		-		158,236		138,996		(19,240)		138,996		114,648
1248MGAJ3		48,376		-		48,376		46,059		(2,317)		46,059		37,828
14454AAB5		676,443		-		676,443		675,900		(543)		675,900		797,469
35729RAE6		4,081,381		-		4,081,381		3,766,230		(315,151)		3,766,230		3,254,010
40431KAE0		2,165,192		-		2,165,192		2,079,404		(85,788)		2,079,404		2,080,910
46629NAC7		37,064		-		37,064		34,532		(2,532)		34,532		28,639
46630KAA4		168,908		-		168,908		166,176		(2,733)		166,176		156,211
57643LMP8		794,964		-		794,964		695,958		(99,006)		695,958		707,626
617463AA2		9,759		-		9,759		8,712		(1,047)		8,712		6,788
61750FAE0		472,290		-		472,290		426,190		(46,100)		426,190		370,275
617526AE8		213,790		-		213,790		183,317		(30,473)		183,317		205,107
86359DXD4		258,372		-		258,372		209,421		(48,950)		209,421		209,160
86363HAB8		42,386		-		42,386		39,363		(3,023)		39,363		33,395
93934XAB9		173,541		-		173,541		135,596		(37,945)		135,596		152,650
05535DAN4		846,722		-		846,722		844,091		(2,632)		844,091		719,154
12667GKG7		53,610		-		53,610		50,015		(3,595)		50,015		52,574
12668ACY9		196,165		-		196,165		158,127		(38,037)		158,127		199,829
18974BAA7		139,604		-		139,604		135,673		(3,931)		135,673		142,094
22540VG71		39,290		-		39,290		38,205		(1,085)		38,205		39,865
22943HAD8		3,726,422		-		3,726,422		3,648,804		(77,618)		3,648,804		1,947,539
45254TSM7		666,066		-		666,066		648,569		(17,497)		648,569		557,450
466247XE8		670,770		-		670,770		665,673		(5,097)		665,673		576,833
525221AJ6		554,561		-		554,561		553,790		(771)		553,790		552,476
59020UW43		99,571		-		99,571		98,502		(1,069)		98,502		80,640
65535VRK6		537,959		-		537,959		492,267		(45,692)		492,267		506,957
75116CET9		52,218		-		52,218		37,480		(14,738)		37,480		51,726
92926UAC5		57,744		-		57,744		45,834		(11,910)		45,834		55,826
92978EAA2		93,378		-		93,378		87,280		(6,098)		87,280		83,812
23332UCM4		26,121		-		26,121		24,163		(1,958)		24,163		25,263
41161PTP8		76,675		-		76,675		72,259		(4,416)		72,259		68,493
41161PWB5		796,629		-		796,629		761,585		(35,044)		761,585		655,513
45660N5H4		1,475,897		-		1,475,897		1,375,793		(100,104)		1,375,793		1,309,005
362341VU0		1,644,583		-		1,644,583		1,609,277		(35,306)		1,609,277		1,524,505
Totals	$	23,315,048	$	-	$	23,315,048	$	22,016,070	$	(1,298,978)	$	22,016,070	$	19,284,696

The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2022:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
01853GAB6	$	66,515	$	-	$	66,515	$	11,444	$	(55,072)	$	11,444	$	88,216
040104RV5		1,784,407		-		1,784,407		1,603,660		(180,747)		1,603,660		1,520,334
040104TF8		38,441		-		38,441		35,870		(2,572)		35,870		27,369
04012XAC9		110,303		-		110,303		106,039		(4,264)		106,039		85,613
1248MGAJ3		33,572		-		33,572		31,812		(1,760)		31,812		27,009
14454AAB5		881,442		-		881,442		677,715		(203,728)		677,715		840,850
35729RAE6		4,202,719		-		4,202,719		4,089,490		(113,229)		4,089,490		3,504,758
45071KDD3		273,858		-		273,858		258,285		(15,573)		258,285		253,045
61749BAB9		51,130		-		51,130		41,427		(9,703)		41,427		50,025
86359DXD4		272,114		-		272,114		262,835		(9,280)		262,835		230,996
86363HAB8		33,458		-		33,458		28,887		(4,571)		28,887		26,054
05535DAN4		1,158,770		-		1,158,770		873,964		(284,806)		873,964		779,790
07387AFX8		65,702		-		65,702		54,499		(11,203)		54,499		65,889

100

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

12668ABP9		177,942		-		177,942		145,191		(32,751)		145,191		170,379
18974BAA7		163,686		-		163,686		159,493		(4,193)		159,493		158,996
18974BAN9		77,869		-		77,869		70,973		(6,896)		70,973		75,478
22943HAD8		4,013,588		-		4,013,588		3,751,800		(261,788)		3,751,800		2,037,389
45254TRX4		45,557		-		45,557		40,333		(5,224)		40,333		42,158
525221AJ6		718,882		-		718,882		583,189		(135,692)		583,189		606,787
59020UW43		106,578		-		106,578		102,698		(3,880)		102,698		124,978
761118FM5		1,217,616		-		1,217,616		1,142,589		(75,026)		1,142,589		1,144,285
85554NAG5		94,558		-		94,558		80,862		(13,696)		80,862		90,860
92978EAA2		67,304		-		67,304		65,210		(2,094)		65,210		61,610
45660N5H4		1,537,499		-		1,537,499		1,502,180		(35,320)		1,502,180		1,379,463
12669GXW6		44,815		-		44,815		41,990		(2,826)		41,990		77,371
589929N38		68,312		-		68,312		63,956		(4,356)		63,956		65,216
Totals	$	17,306,639	$	-	$	17,306,639	$	15,826,391	$	(1,480,248)	$	15,826,391	$	13,534,918

The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2022:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
00256DAA0	$	1,762,699	$	-	$	1,762,699	$	1,364,210	$	(398,489)	$	1,364,210	$	1,122,333
07388VAH1		2,364,730		-		2,364,730		244,594		(2,120,137)		244,594		244,594
22545XBB8		1,683,921		-		1,683,921		211,871		(1,472,050)		211,871		210,934
00442FAB8		70,075		-		70,075		52,264		(17,811)		52,264		10,685
040104TF8		59,249		-		59,249		53,852		(5,397)		53,852		41,892
040104TG6		623,388		-		623,388		531,410		(91,978)		531,410		545,952
04012XAC9		178,777		-		178,777		162,199		(16,578)		162,199		136,446
1248MGAJ3		52,182		-		52,182		51,033		(1,149)		51,033		45,331
17311YAC7		1,623,994		-		1,623,994		1,327,822		(296,172)		1,327,822		1,502,602
24763LFY1		134,155		-		134,155		67,703		(66,452)		67,703		106,050
35729RAE6		4,416,912		-		4,416,912		4,231,274		(185,638)		4,231,274		3,947,591
40431KAE0		2,521,316		-		2,521,316		2,214,702		(306,614)		2,214,702		2,513,960
45071KDD3		488,363		-		488,363		436,903		(51,460)		436,903		448,752
55291KAC1		633,248		-		633,248		169,402		(463,846)		169,402		598,172
57643LMP8		906,102		-		906,102		809,314		(96,788)		809,314		815,499
617463AA2		10,553		-		10,553		9,894		(659)		9,894		8,101
61750FAE0		509,354		-		509,354		473,873		(35,481)		473,873		435,242
617526AE8		262,688		-		262,688		214,229		(48,459)		214,229		243,939
86359DXD4		304,264		-		304,264		279,462		(24,802)		279,462		275,224
07384YPP5		314,885		-		314,885		207,555		(107,330)		207,555		66,352
32053LAA0		27,875		-		27,875		22,820		(5,055)		22,820		25,221
45660LAU3		78,731		-		78,731		75,334		(3,397)		75,334		76,824
59020UW43		176,900		-		176,900		108,489		(68,411)		108,489		132,229
65535VRK6		592,663		-		592,663		536,987		(55,676)		536,987		561,983
761118FM5		1,932,729		-		1,932,729		1,911,872		(20,857)		1,911,872		1,863,619
76112HAE7		13,536		-		13,536		10,283		(3,253)		10,283		13,495
92978EAA2		102,806		-		102,806		97,782		(5,024)		97,782		94,757
93935PAH2		137,585		-		137,585		115,483		(22,102)		115,483		131,766
41161PWB5		884,324		-		884,324		852,993		(31,331)		852,993		771,130
45660N5H4		1,600,750		-		1,600,750		1,533,921		(66,829)		1,533,921		1,444,261
36298XAB8		5,320,204		-		5,320,204		5,307,865		(12,338)		5,307,865		5,034,048
55274SAM3		177,495		-		177,495		25,133		(152,362)		25,133		29,827
59024WAB3		137,567		-		137,567		119,223		(18,344)		119,223		142,528
94984GAD9		31,976		-		31,976		26,026		(5,950)		26,026		33,031
Totals	$	30,135,997	$	-	$	30,135,997	$	23,857,778	$	(6,278,218)	$	23,857,778	$	23,674,371

101

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2021:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
040104TF8	$	59,686	$	-	$	59,686	$	59,300	$	(386)	$	59,300	$	49,870
04012XAC9		130,314		-		130,314		122,160		(8,154)		122,160		107,581
1248MGAJ3		35,096		-		35,096		34,855		(241)		34,855		31,996
35729RAE6		4,028,108		-		4,028,108		3,999,290		(28,818)		3,999,290		3,995,059
617463AA2		6,685		-		6,685		5,767		(918)		5,767		5,247
61749BAB9		61,698		-		61,698		51,363		(10,335)		51,363		60,638
61750FAE0		342,930		-		342,930		319,304		(23,626)		319,304		307,808
61750MAB1		3,456		-		3,456		3,113		(343)		3,113		3,182
86359DXD4		335,476		-		335,476		308,315		(27,161)		308,315		309,361
92926SAB2		558		-		558		494		(64)		494		521
45660LYW3		677,413		-		677,413		675,162		(2,251)		675,162		630,760
79548KXQ6		51,835		-		51,835		37,121		(14,714)		37,121		65,254
92978EAA2		75,569		-		75,569		72,635		(2,934)		72,635		72,325
41161PWB5		822,378		-		822,378		776,768		(45,610)		776,768		706,114
55274SAM3		27,413		-		27,413		24,861		(2,552)		24,861		23,482
Totals	$	6,658,614	$	-	$	6,658,615	$	6,490,508	$	(168,107)	$	6,490,508	$	6,369,198

The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2021:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
040104TF8	$	59,686	$	-	$	59,686	$	59,300	$	(386)	$	59,300	$	49,870
04012XAC9		130,314		-		130,314		122,160		(8,154)		122,160		107,581
1248MGAJ3		35,096		-		35,096		34,855		(241)		34,855		31,996
35729RAE6		4,028,108		-		4,028,108		3,999,290		(28,818)		3,999,290		3,995,059
617463AA2		6,685		-		6,685		5,767		(918)		5,767		5,247
61749BAB9		61,698		-		61,698		51,363		(10,335)		51,363		60,638
61750FAE0		342,930		-		342,930		319,304		(23,626)		319,304		307,808
61750MAB1		3,456		-		3,456		3,113		(343)		3,113		3,182
86359DXD4		335,476		-		335,476		308,315		(27,161)		308,315		309,361
92926SAB2		558		-		558		494		(64)		494		521
45660LYW3		677,413		-		677,413		675,162		(2,251)		675,162		630,760
79548KXQ6		51,835		-		51,835		37,121		(14,714)		37,121		65,254
92978EAA2		75,569		-		75,569		72,635		(2,934)		72,635		72,325
41161PWB5		822,378		-		822,378		776,768		(45,610)		776,768		706,114
55274SAM3		27,413		-		27,413		24,861		(2,552)		24,861		23,482
Totals	$	6,658,614	$	-	$	6,658,615	$	6,490,508	$	(168,107)	$	6,490,508	$	6,369,198

The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2021:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
00442FAB8	$	95,903	$	-	$	95,903	$	70,276	$	(25,627)	$	70,276	$	60,821
86359DXD4		359,657		-		359,657		339,761		(19,896)		339,761		337,895
05535DAN4		1,260,315		-		1,260,315		1,255,426		(4,889)		1,255,426		1,020,099
073879QF8		247,750		-		247,750		226,078		(21,672)		226,078		256,430
45660LYW3		907,047		-		907,047		906,647		(400)		906,647		879,977
92978EAA2		110,354		-		110,354		108,384		(1,970)		108,384		106,564
41161PWB5		1,049,397		-		1,049,397		1,023,087		(26,310)		1,023,087		908,082
55274SAM3		30,959		-		30,959		26,064		(4,895)		26,064		25,345
Totals	$	4,061,382	$	-	$	4,061,382	$	3,955,723	$	(105,659)	$	3,955,723	$	3,595,213

102

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2021:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
040104TG6	$	751,483	$	-	$	751,483	$	596,747	$	(154,736)	$	596,747	$	700,223
05535DCF9		2,412,525		-		2,412,525		2,168,139		(244,386)		2,168,139		2,608,461
40431KAE0		2,389,667		-		2,389,667		2,348,253		(41,414)		2,348,253		2,745,165
61750FAE0		555,370		-		555,370		534,914		(20,456)		534,914		493,887
86359DXD4		394,726		-		394,726		364,962		(29,764)		364,962		369,964
05535DAN4		1,386,766		-		1,386,766		1,038,889		(347,877)		1,038,889		1,141,961
45660LYW3		959,375		-		959,375		942,757		(16,618)		942,757		927,049
79548KXQ6		121,590		-		121,590		96,976		(24,616)		96,976		97,070
92978EAA2		115,502		-		115,502		112,103		(3,399)		112,103		110,484
41161PWB5		1,112,829		-		1,112,829		1,079,359		(33,470)		1,079,359		969,681
576433H33		1,119,491		-		1,119,491		1,071,784		(47,707)		1,071,784		1,074,403
55274SAM3		33,318		-		33,318		31,698		(1,620)		31,698		85,553
Totals	$	11,352,643	$	-	$	11,352,642	$	10,386,581	$	(966,063)	$	10,386,581	$	11,323,900

The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2021:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
36828QQJ8	$	5,796,000	$	-	$	5,796,000	$	-	$	(5,796,000)	$	-	$	-
05535DCF9		2,560,946		-		2,560,946		2,505,561		(55,385)		2,505,561		2,647,762
61750FAE0		582,728		-		582,728		558,079		(24,649)		558,079		500,569
18974BAA7		203,962		-		203,962		193,231		(10,731)		193,231		197,038
22540V3F7		124,724		-		124,724		11,082		(113,642)		11,082		3,496
92978EAA2		123,118		-		123,118		119,363		(3,755)		119,363		115,107
41161PWB5		1,183,481		-		1,183,481		1,153,338		(30,143)		1,153,338		1,017,022
12669GXW6		153,925		-		153,925		20,286		(133,639)		20,286		173,435
55274SAM3		38,192		-		38,192		33,418		(4,774)		33,418		84,650
86359DME4		480,180		-		480,180		480,135		(45)		480,135		498,095
Totals	$	11,247,256	$	-	$	11,247,257	$	5,074,493	$	(6,172,764)	$	5,074,493	$	5,237,174

The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2020:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
01853GAB6	$	166,318	$	-	$	166,318	$	58,609	$	(107,709)	$	58,609	$	136,619
05535DCF9		2,639,139		-		2,639,139		2,595,116		(44,023)		2,595,116		2,812,127
61750FAE0		594,740		-		594,740		584,887		(9,853)		584,887		530,736
61750MAB1		4,675		-		4,675		4,502		(173)		4,502		4,545
92926SAB2		585		-		585		567		(18)		567		562
124860CB1		21,523		-		21,523		14,872		(6,651)		14,872		17,887
18974BAA7		205,451		-		205,451		204,843		(608)		204,843		186,946
18974BAN9		101,669		-		101,669		101,513		(156)		101,513		98,300
2254W0NK7		89,902		-		89,902		23,726		(66,176)		23,726		94,611
45660LYW3		1,074,456		-		1,074,456		1,035,449		(39,007)		1,035,449		1,020,046
65535VRK6		681,735		-		681,735		601,631		(80,104)		601,631		653,481
79548KXQ6		99,323		-		99,323		98,725		(598)		98,725		92,899
92978EAA2		130,042		-		130,042		125,448		(4,594)		125,448		119,223
23332UBW3		26,310		-		26,310		21,116		(5,193)		21,116		30,347
576433H33		1,207,614		-		1,207,614		1,145,808		(61,806)		1,145,808		1,116,853
125435AA5		1,635,577		-		1,635,577		1,543,519		(92,058)		1,543,519		1,596,490
36298XAA0		6,639,520		-		6,639,520		5,802,921		(836,599)		5,802,921		6,153,831
55274SAM3		61,225		-		61,225		42,760		(18,465)		42,760		93,792
86359DME4		673,784		-		673,784		662,791		(10,993)		662,791		698,159
929227ZF6		18,319		-		18,319		5,496		(12,823)		5,496		16,063
Totals	$	16,071,907	$	-	$	16,071,907	$	14,674,300	$	(1,397,607)	$	14,674,300	$	15,473,517

103

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2020:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
US05618HAE53	$	555,162	$	-	$	555,162	$	387,040	$	(168,122)	$	387,040	$	162,575
00442FAB8		144,957		-		144,957		79,275		(65,682)		79,275		112,060
05535DCF9		2,755,413		-		2,755,413		2,649,186		(106,228)		2,649,186		2,553,142
46630KAA4		191,718		-		191,718		184,342		(7,376)		184,342		179,699
61749BAB9		105,432		-		105,432		91,620		(13,812)		91,620		88,204
61750MAB1		4,837		-		4,837		4,672		(165)		4,672		3,421
92926SAB2		604		-		604		588		(16)		588		438
07384YPP5		12,990		-		12,990		9,466		(3,524)		9,466		35,174
073879QF8		45,111		-		45,111		43,889		(1,222)		43,889		39,772
17307GRU4		104,250		-		104,250		55,590		(48,659)		55,590		91,680
18974BAA7		215,833		-		215,833		212,231		(3,602)		212,231		183,053
18974BAN9		106,359		-		106,359		104,851		(1,507)		104,851		97,631
9393365V1		399,194		-		399,194		394,263		(4,932)		394,263		364,935
23332UBW3		31,650		-		31,650		29,218		(2,432)		29,218		22,244
12669GWN7		849,557		-		849,557		799,224		(50,333)		799,224		782,638
12669GXW6		244,251		-		244,251		233,647		(10,604)		233,647		223,233
32051DCK6		79,208		-		79,208		61,819		(17,389)		61,819		82,998
36298XAA0		7,738,893		-		7,738,893		7,511,130		(227,763)		7,511,130		7,120,125
36298XAB8		7,666,120		-		7,666,120		6,250,751		(1,415,369)		6,250,751		6,539,292
45660LY94		13,115		-		13,115		6,394		(6,721)		6,394		26,528
74951PBT4		110,729		-		110,729		51,052		(59,676)		51,052		153,185
Totals	$	21,375,383	$	-	$	21,375,383	$	19,160,250	$	(2,215,134)	$	19,160,250	$	18,862,027

The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2020:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
17307GRU4	$	107,326	$	-	$	107,326	$	77,392	$	(29,934)	$	77,392	$	160,449
18974BAA7		245,427		-		245,427		235,230		(10,197)		235,230		201,416
18974BAN9		119,509		-		119,509		114,571		(4,938)		114,571		107,924
362290AC2		220,776		-		220,776		219,541		(1,235)		219,541		307,360
79548KXQ6		172,175		-		172,175		170,007		(2,168)		170,007		130,248
855541AC2		508,940		-		508,940		384,558		(124,383)		384,558		460,800
9393365V1		433,313		-		433,313		415,261		(18,053)		415,261		356,247
45660LY94		28,987		-		28,987		13,258		(15,729)		13,258		21,174
57643QAE5		2,203,118		-		2,203,118		1,819,560		(383,558)		1,819,560		2,367,000
74951PBT4		260,811		-		260,811		143,231		(117,579)		143,231		157,616
86359DMC8		5,799,490		-		5,799,490		5,333,524		(465,966)		5,333,524		4,907,737
92990GAE3		80,251		-		80,251		66,477		(13,773)		66,477		71,880
Totals	$	10,180,123	$	-	$	10,180,123	$	8,992,610	$	(1,187,513)	$	8,992,610	$	9,249,851

The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2020:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
05535DCF9	$	3,012,907	$	-	$	3,012,907	$	2,862,429	$	(150,478)	$	2,862,429	$	2,528,432
24763LFY1		147,758		-		147,758		146,827		(931)		146,827		180,454
45071KDD3		575,329		-		575,329		510,787		(64,542)		510,787		491,576
07384YPP5		33,493		-		33,493		28,061		(5,431)		28,061		46,723
12667GKG7		93,290		-		93,290		83,622		(9,668)		83,622		98,905
17307GRU4		114,325		-		114,325		112,699		(1,625)		112,699		157,144
362290AC2		316,883		-		316,883		225,907		(90,976)		225,907		322,987
59020UW43		214,183		-		214,183		182,719		(31,463)		182,719		200,181
65535VRK6		716,497		-		716,497		699,498		(16,998)		699,498		646,333
75115DAH8		6,842		-		6,842		6,564		(279)		6,564		6,397

104

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

76112BUE8		181,578		-		181,578		148,845		(32,733)		148,845		129,998
79548KXQ6		187,063		-		187,063		182,973		(4,090)		182,973		137,728
92926UAC5		136,220		-		136,220		130,734		(5,486)		130,734		130,957
23332UBW3		46,195		-		46,195		32,143		(14,052)		32,143		24,852
12669GWN7		889,281		-		889,281		871,126		(18,155)		871,126		863,235
32051DCK6		88,205		-		88,205		86,848		(1,358)		86,848		89,678
362334CN2		14,634		-		14,634		11,177		(3,457)		11,177		13,996
466247K93		7,584		-		7,584		6,335		(1,249)		6,335		7,318
57645LAA2		18,017,521		-		18,017,521		13,868,050		(4,149,471)		13,868,050		18,607,055
Totals	$	24,799,788	$	-	$	24,799,788	$	20,197,344	$	(4,602,443)	$	20,197,344	$	24,683,947

The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2019:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
24763LFY1	$	182,113	$	-	$	182,113	$	160,832	$	(21,281)	$	160,832	$	200,613
05535DAN4		1,930,918		-		1,930,918		1,855,207		(75,711)		1,855,207		1,598,238
07384YPP5		187,700		-		187,700		39,691		(148,009)		39,691		71,760
17307GRU4		164,558		-		164,558		133,524		(31,034)		133,524		229,670
18974BAN9		134,619		-		134,619		125,398		(9,221)		125,398		126,170
65535VRK6		797,949		-		797,949		712,007		(85,942)		712,007		774,700
79548KXQ6		207,254		-		207,254		192,282		(14,972)		192,282		113,588
85554NAG5		194,730		-		194,730		158,214		(36,515)		158,214		187,575
12669FXR9		117,999		-		117,999		114,307		(3,692)		114,307		101,165
23332UBW3		74,561		-		74,561		47,819		(26,742)		47,819		35,659
Totals	$	3,992,400	$	-	$	3,992,400	$	3,539,281	$	(453,119)	$	3,539,281	$	3,439,138

The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2019:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
12667F2A2	$	642,800	$	-	$	642,800	$	484,346	$	(158,455)	$	484,346	$	68,241
32053LAA0		47,447		-		47,447		40,280		(7,167)		40,280		47,846
761118FM5		2,843,393		-		2,843,393		2,789,133		(54,260)		2,789,133		2,918,992
79548KXQ6		297,379		-		297,379		277,239		(20,140)		277,239		60,979
23332UBW3		78,084		-		78,084		76,934		(1,151)		76,934		43,636
576433H33		1,579,401		-		1,579,401		1,448,247		(131,155)		1,448,247		1,448,863
12669GWN7		1,037,688		-		1,037,688		957,205		(80,484)		957,205		936,853
17309FAE8		161,243		-		161,243		129,536		(31,707)		129,536		159,357
36298XAA0		10,097,887		-		10,097,887		8,887,246		(1,210,641)		8,887,246		8,841,272
92990GAE3		86,314		-		86,314		85,680		(634)		85,680		87,117
US74951PBV94		37,392		-		37,392		16,087		(21,305)		16,087		26,602
Totals	$	16,909,029	$	-	$	16,909,029	$	15,191,932	$	(1,717,097)	$	15,191,932	$	14,639,756

The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2019:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
61750MAB1	$	4,942	$	-	$	4,942	$	4,899	$	(42)	$	4,899	$	4,344
18974BAN9		143,913		-		143,913		143,911		(2)		143,911		141,999
761118FM5		3,338,972		-		3,338,972		3,276,460		(62,512)		3,276,460		3,468,889
79548KXQ6		335,309		-		335,309		321,864		(13,445)		321,864		218,663
55274SAM3		114,173		-		114,173		79,608		(34,565)		79,608		119,029
57643QAE5		3,042,722		-		3,042,722		2,360,287		(682,436)		2,360,287		3,180,695
Totals	$	6,980,030	$	-	$	6,980,030	$	6,187,029	$	(793,001)	$	6,187,029	$	7,133,620

105

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2019:

CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
61750MAB1	$	5,275	$	-	$	5,275	$	4,933	$	(341)	$	4,933	$	4,989
65106FAG7		232,843		-		232,843		215,726		(17,118)		215,726		6,316
18974BAA7		285,889		-		285,889		270,801		(15,088)		270,801		278,616
18974BAN9		149,774		-		149,774		139,333		(10,441)		139,333		148,234
22541QQR6		1,569		-		1,569		-		(1,569)		-		1
32051GCF0		22,786		-		22,786		(6,720)		(29,507)		(6,720)		17,553
761118FM5		3,259,303		-		3,259,303		3,218,368		(40,935)		3,218,368		3,244,154
17309FAE8		200,512		-		200,512		200,501		(11)		200,501		208,828
466247UG6		467,713		-		467,713		452,359		(15,354)		452,359		459,812
57643QAE5		3,114,325		-		3,114,325		3,109,376		(4,949)		3,109,376		3,256,107
US74951PBV94		51,011		-		51,011		29,960		(21,051)		29,960		58,411
Totals	$	7,791,000	$	-	$	7,791,000	$	7,634,637	$	(156,362)	$	7,634,637	$	7,683,021

The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2018:


CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
65106FAG7	$	205,885	$	-	$	205,885	$	17,668	$	(188,218)	$	17,668	$	21,031
18974BAA7		306,428		-		306,428		295,291		(11,137)		295,291		294,986
22541QQR6		28,742		-		28,742		(9,704)		(38,446)		(9,704)		1
32051GCF0		32,493		-		32,493		20,481		(12,012)		20,481		20,063
17309FAE8		203,743		-		203,743		202,326		(1,417)		202,326		201,875
57643QAE5		3,657,695		-		3,657,695		3,177,611		(480,084)		3,177,611		3,365,017
92990GAE3		115,186		-		115,186		111,886		(3,300)		111,886		111,541
Totals	$	4,550,173	$	-	$	4,550,173	$	3,815,559	$	(734,614)	$	3,815,559	$	4,014,514

The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2018:


CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
05535DCF9	$	3,454,425	$	-	$	3,454,425	$	3,141,048	$	(313,377)	$	3,141,048	$	3,134,409
07384YPP5		321,829		-		321,829		148,884		(172,945)		148,884		132,968
07386HCP4		2,164		-		2,164		(6,255)		(8,418)		(6,255)		320
76110H4M8		1,715		-		1,715		(3,719)		(5,434)		(3,719)		641
79548KXQ6		423,086		-		423,086		383,222		(39,864)		383,222		292,015
939336Z48		117,607		-		117,607		-		(117,607)		-		126,945
Totals	$	4,320,826	$	-	$	4,320,826	$	3,663,181	$	(657,645)	$	3,663,181	$	3,687,297

The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2018:


CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
59020UW43	$	337,732	$	-	$	337,732	$	271,686	$	(66,046)	$	271,686	$	354,508
76110H4M8		6,848		-		6,848		1,969		(4,879)		1,969		1,713
863579DV7		289,655		-		289,655		5,567		(284,089)		5,567		30,531
Totals	$	634,235	$	-	$	634,235	$	279,221	$	(355,014)	$	279,221	$	386,752

106

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2018:


CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
07386HEN7	$	43,711	$	-	$	43,711	$	2,334	$	(41,377)	$	2,334	$	1,609
79548KXQ6		520,764		-		520,764		476,293		(44,471)		476,293		365,994
45660NZY4		81,215		-		81,215		9,554		(71,661)		9,554		80,891
Totals	$	645,690	$	-	$	645,690	$	488,181	$	(157,509)	$	488,181	$	448,494

The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2017:


CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
03927RAA2	$	2,886,563	$	-	$	2,886,563	$	1,464,907	$	(1,421,656)	$	1,464,907	$	1,481,241
03927RAB0		910,639		-		910,639		363,543		(547,096)		363,543		362,176
07386HCP4		7,995		-		7,995		1,386		(6,609)		1,386		2,673
12669GMS7		25,101		-		25,101		21,923		(3,177)		21,923		21,921
22541QQR6		21,202		-		21,202		12,504		(8,698)		12,504		16,106
2254W0NK7		97,695		-		97,695		94,495		(3,200)		94,495		139,833
86359ACG6		318		-		318		-		(318)		-		2
Totals	$	3,949,513	$	-	$	3,949,513	$	1,958,759	$	(1,990,754)	$	1,958,759	$	2,023,952

The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2017:


CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
22541NMA4	$	42,273	$	-	$	42,273	$	41,434	$	(839)	$	41,434	$	41,095
22541NMB2		11,869		-		11,869		11,634		(234)		11,634		11,535
22541SSD1		12,232		-		12,232		20		(12,213)		20		5,978
52108MDP5		3,497,947		-		3,497,947		-		(3,497,947)		-		1,925,413
55274SAM3		167,196		-		167,196		153,991		(13,206)		153,991		179,429
76110W4J2		1,131		-		1,131		229		(902)		229		556
88157QAL2		686,945		-		686,945		660,921		(26,024)		660,921		2,125,943
89789KAC9		16,949		-		16,949		8,714		(8,235)		8,714		357,735
Totals	$	4,436,542	$	-	$	4,436,542	$	876,942	$	(3,559,600)	$	876,942	$	4,647,683

The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2017:


CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
76110H4M8	$	4,413	$	-	$	4,413	$	2,326	$	(2,087)	$	2,326	$	4,073
86358RLG0		3,485		-		3,485		2,670		(815)		2,670		30,171
86359ACG6		16,324		-		16,324		2		(16,322)		2		2
88157QAL2		774,182		-		774,182		675,599		(98,583)		675,599		1,947,675
89789KAC9		17,294		-		17,294		8,920		(8,374)		8,920		356,047
77277LAF4		22,514,590		-		22,514,590		22,167,493		(347,097)		22,167,493		34,318,674
77277LAH0		1,135,088		-		1,135,088		1,118,159		(16,929)		1,118,159		2,738,435
77277LAJ6		16,073,175		-		16,073,175		15,833,787		(239,388)		15,833,787		21,595,653
Totals	$	40,538,551	$	-	$	40,538,551	$	39,808,956	$	(729,595)	$	39,808,956	$	60,990,732

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Hextone LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS, continued

The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2017:


CUSIP	Amortized Cost before Cumulative Adjustment		Cumulative Adjustment		Amortized Cost before OTTI		Projected Cash Flow		Recognized OTTI		Amortized Cost after OTTI		Fair Value
17307GH76	$	274,894	$	-	$	274,894	$	44,730	$	(230,163)	$	44,730	$	152,777
22541QJR4		11,175		-		11,175		54		(11,122)		54		6,866
32051DCK6		182,177		-		182,177		160,728		(21,449)		160,728		179,180
55274SAM3		225,790		-		225,790		209,839		(15,951)		209,839		218,832
86358RA23		1,326,199		-		1,326,199		1,253,636		(72,563)		1,253,636		1,289,099
86359ACG6		6,287		-		6,287		49		(6,239)		49		2
US77277LAF40		22,537,014		-		22,537,014		22,514,590		(22,424)		22,514,590		31,699,907
US77277LAH06		1,136,182		-		1,136,182		1,135,088		(1,094)		1,135,088		2,662,526
US77277LAJ61		16,088,661		-		16,088,661		16,073,175		(15,486)		16,073,175		19,947,746
Totals	$	41,788,380	$	-	$	41,788,380	$	41,391,889	$	(396,491)	$	41,391,889	$	56,156,936

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