Utah Insurance Receivers Office

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National Annuity Company in Liquidation              
Balance Sheet at December 31, 2007              
                 
Liquidation Date: March 23, 2007              
                 
                 
                 
        Balances as of     Net Change  
      March 23, 2007   December 31, 2007   Increase (Decrease)  
                 
Bonds   $8,676,523   $8,341,102   ($335,421)  
Preferred Stock   3,482,555   2,822,795   (659,760)  
Mortgage Loans   9,631,800   4,876,300   (4,755,500)  
  Less Valuation for Bad Debts or Market Writedowns       (1,041,760)   (1,041,760)  
Real Estate Owned       1,540,000   1,540,000  
  Less Valuation for Bad Debts or Market Writedowns       (308,000)   (308,000)  
Cash and Cash Equivalents   3,004,305   $2,210,105   (794,199)  
Other Invested Assets   5,493,294   4,569,294   (924,000)  
  Less Valuation for Bad Debts or Market Writedowns       (1,651,231)   (1,651,231)  
Investment Income Due and Accrued   227,880   842,377   614,497  
  Less Valuation for Bad Debts or Market Writedowns       (367,962)   (367,962)  
                 
      $30,516,357   $21,833,019   ($8,683,337)  
                 
                 
                 
Aggregate Reserves   $30,163,323   $21,895,339   ($8,267,984)  
Accounts Payable - POC's           0  
Payable to Guaranty Associations       3,745,148   3,745,148  
Other Liabilities           0  
General Expenses Due and Accrued   7,926   7,926   0  
                 
      30,171,249   25,648,414   (4,522,835)  
                 
Common Capital Stock   499,980   499,980   0  
Surplus Notes   425,000   425,000   0  
Gross Paid In and Contributed Surplus   121,697   121,697   0  
Unassigned Funds (Surplus)   (701,569)   (701,569)   0  
Current Year Profit/(Loss)       (4,160,502)   (4,160,502)  
                 
      345,108   (3,815,395)   (4,160,502)  
                 
      $30,516,357   $21,833,019   ($8,683,337)