NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT III

NYLIAC Variable Annuity Separate Account-III

Financial Statements

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities

As of December 31, 2023


	MainStay VP American Century Sustainable Equity— Initial Class			MainStay VP American Century Sustainable Equity— Service Class			MainStay VP Balanced— Service Class			MainStay VP Bond— Initial Class			MainStay VP Bond— Service Class			MainStay VP Candriam Emerging Markets Equity— Initial Class			MainStay VP Candriam Emerging Markets Equity— Service Class
ASSETS:
Investment at net asset value	$	34,769,056		$	65,565,499		$	119,621,198		$	21,145,964		$	97,670,952		$	6,523,642		$	23,829,123
Dividends due and accrued		—			—			—			—			—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		(25,055	)		(15,068	)		(16,854	)		(21,869	)		(64,588	)		(4,957	)		(8,965	)
Net receivable from (payable to) the Fund for shares sold or purchased		26,428			17,629			21,161			22,702			68,102			5,211			9,914
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		1,241			2,404			4,171			754			3,432			227			878
Administrative charges		132			157			136			79			82			27			71

Total net assets	$	34,769,056		$	65,565,499		$	119,621,198		$	21,145,964		$	97,670,952		$	6,523,642		$	23,829,123

Total shares outstanding		3,888,982			7,367,158			9,072,797			1,709,815			7,990,097			937,884			3,414,404

Net asset value per share (NAV)	$	8.94		$	8.90		$	13.18		$	12.37		$	12.22		$	6.96		$	6.98

Total units outstanding		1,269,330			2,822,045			7,273,087			1,043,069			9,385,820			800,706			2,965,851

Variable accumulation unit value (lowest to highest)	$	26.08 to $27.51		$	11.46 to $26.86		$	10.42 to $24.71		$	13.90 to $21.97		$	9.40 to $13.27		$	7.74 to $8.17		$	7.51 to $12.02

Identified cost of investment	$	40,406,769		$	74,957,484		$	125,918,070		$	24,471,730		$	112,378,253		$	7,659,552		$	28,092,589

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	MainStay VP CBRE Global Infrastructure— Service Class		MainStay VP Conservative Allocation— Service Class			MainStay VP Epoch U.S. Equity Yield— Initial Class			MainStay VP Epoch U.S. Equity Yield— Service Class			MainStay VP Equity Allocation— Service Class			MainStay VP Fidelity Institutional AM^® Utilities— Initial Class		MainStay VP Fidelity Institutional AM^® Utilities— Service Class
ASSETS:
Investment at net asset value	$	8,936,502	$	174,184,506		$	82,187,942		$	153,097,219		$	138,823,787		$	801,452	$	253,901,644
Dividends due and accrued		—		—			—			—			—			—		—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		93		(9,557	)		(34,795	)		29,162			(46,260	)		—		(35,495	)
Net receivable from (payable to) the Fund for shares sold or purchased		203		16,102			38,029			(23,411	)		51,516			33		45,001
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		292		6,327			2,919			5,437			5,052			30		9,037
Administrative charges		4		218			315			314			204			3		469

Total net assets	$	8,936,502	$	174,184,506		$	82,187,942		$	153,097,219		$	138,823,787		$	801,452	$	253,901,644

Total shares outstanding		1,283,482		17,740,078			4,957,412			9,397,253			15,050,607			74,772		23,794,951

Net asset value per share (NAV)	$	6.96	$	9.82		$	16.58		$	16.29		$	9.22		$	10.72	$	10.67

Total units outstanding		1,083,677		11,793,965			2,573,811			6,462,346			7,210,179			39,183		14,767,809

Variable accumulation unit value (lowest to highest)	$	6.58 to $9.91	$	10.39 to $18.58		$	28.66 to $38.86		$	10.73 to $34.50		$	10.82 to $29.69		$	19.60 to $20.68	$	10.05 to $20.19

Identified cost of investment	$	8,818,699	$	192,395,758		$	72,641,482		$	140,660,218		$	154,044,618		$	829,276	$	274,950,024

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	MainStay VP Floating Rate— Service Class			MainStay VP Growth Allocation— Service Class			MainStay VP Income Builder— Initial Class			MainStay VP Income Builder— Service Class			MainStay VP IQ Hedge Multi- Strategy— Service Class			MainStay VP Janus Henderson Balanced— Initial Class			MainStay VP Janus Henderson Balanced— Service Class
ASSETS:
Investment at net asset value	$	217,898,941		$	260,682,257		$	38,283,914		$	127,353,571		$	43,176,611		$	128,156,024		$	447,273,794
Dividends due and accrued		(2	)		—			—			—			—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		(252,232	)		(51,529	)		21,825			388,273			(11,006	)		(34,090	)		430,418
Net receivable from (payable to) the Fund for shares sold or purchased		259,760			61,522			(20,338	)		(383,697	)		12,605			39,085			(415,039	)
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		7,364			9,555			1,330			4,495			1,585			4,465			15,116
Administrative charges		162			438			157			81			14			530			263

Total net assets	$	217,898,941		$	260,682,257		$	38,283,914		$	127,353,571		$	43,176,611		$	128,156,024		$	447,273,794

Total shares outstanding		25,358,907			27,073,463			2,627,603			8,836,757			5,125,794			9,048,139			31,861,420

Net asset value per share (NAV)	$	8.59		$	9.63		$	14.57		$	14.41		$	8.42		$	14.16		$	14.04

Total units outstanding		17,025,266			13,531,662			1,042,291			8,852,119			4,792,245			5,516,306			28,130,472

Variable accumulation unit value (lowest to highest)	$	10.84 to $15.11		$	10.78 to $25.79		$	17.40 to $41.06		$	10.33 to $24.68		$	7.81 to $10.66		$	22.08 to $23.43		$	10.76 to $22.74

Identified cost of investment	$	218,254,123		$	283,198,544		$	41,539,959		$	138,160,195		$	43,523,336		$	115,324,601		$	446,901,392

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	MainStay VP MacKay Convertible— Initial Class			MainStay VP MacKay Convertible— Service Class			MainStay VP MacKay Government— Initial Class			MainStay VP MacKay Government— Service Class			MainStay VP MacKay High Yield Corporate Bond— Initial Class			MainStay VP MacKay High Yield Corporate Bond— Service Class			MainStay VP MacKay Strategic Bond— Service Class
ASSETS:
Investment at net asset value	$	54,137,719		$	285,937,007		$	13,945,275		$	51,087,057		$	94,586,638		$	646,576,523		$	135,590,047
Dividends due and accrued		—			—			—			—			—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		(44,860	)		(50,098	)		(12,463	)		(5,953	)		(90,913	)		(186,745	)		(27,788	)
Net receivable from (payable to) the Fund for shares sold or purchased		46,986			60,139			13,014			7,814			94,608			210,263			32,688
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		1,912			9,823			500			1,810			3,328			23,029			4,852
Administrative charges		215			218			51			51			366			489			48

Total net assets	$	54,137,718		$	285,937,007		$	13,945,275		$	51,087,057		$	94,586,639		$	646,576,523		$	135,590,047

Total shares outstanding		3,647,578			19,508,297			1,441,894			5,327,229			10,422,655			72,567,511			14,245,495

Net asset value per share (NAV)	$	14.84		$	14.66		$	9.67		$	9.59		$	9.08		$	8.91		$	9.52

Total units outstanding		1,022,172			14,490,536			809,945			5,246,536			2,050,189			42,045,732			11,798,324

Variable accumulation unit value (lowest to highest)	$	31.53 to $60.64		$	10.05 to $37.73		$	11.88 to $18.74		$	8.88 to $11.45		$	30.64 to $51.17		$	10.70 to $27.19		$	10.52 to $12.53

Identified cost of investment	$	50,642,362		$	293,287,799		$	15,638,055		$	56,589,604		$	100,081,573		$	680,175,863		$	138,910,699

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	MainStay VP Moderate Allocation— Service Class		MainStay VP Natural Resources— Initial Class			MainStay VP PIMCO Real Return— Service Class			MainStay VP PineStone International Equity— Initial Class			MainStay VP PineStone International Equity— Service Class			MainStay VP S&P 500 Index— Initial Class			MainStay VP S&P 500 Index— Service Class
ASSETS:
Investment at net asset value	$	260,193,432	$	103,288,834		$	86,924,885		$	12,443,085		$	65,938,221		$	179,048,744		$	667,452,355
Dividends due and accrued		—		—			—			—			—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		3,148		(14,771	)		(65,085	)		(8,556	)		(86,664	)		(26,354	)		176,747
Net receivable from (payable to) the Fund for shares sold or purchased		6,737		18,623			68,114			9,045			89,138			33,324			(153,476	)
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		9,492		3,631			2,988			441			2,352			6,236			22,762
Administrative charges		393		221			41			48			122			734			509

Total net assets	$	260,193,432	$	103,288,834		$	86,924,885		$	12,443,085		$	65,938,221		$	179,048,744		$	667,452,355

Total shares outstanding		27,430,361		8,628,038			11,212,497			1,159,870			6,261,880			2,097,542			7,900,883

Net asset value per share (NAV)	$	9.49	$	11.97		$	7.75		$	10.73		$	10.53		$	85.36		$	84.48

Total units outstanding		15,521,848		8,462,828			8,440,082			425,790			4,000,726			2,205,543			30,407,513

Variable accumulation unit value (lowest to highest)	$	10.57 to $21.73	$	10.39 to $17.88		$	9.50 to $10.74		$	19.52 to $33.17		$	9.37 to $23.70		$	33.87 to $95.55		$	11.47 to $49.32

Identified cost of investment	$	284,900,430	$	77,035,136		$	98,518,648		$	15,943,560		$	82,810,549		$	94,518,145		$	534,027,344

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	MainStay VP Small Cap Growth— Initial Class			MainStay VP Small Cap Growth— Service Class			MainStay VP U.S. Government Money Market— Initial Class			MainStay VP Wellington Growth— Initial Class			MainStay VP Wellington Growth— Service Class		MainStay VP Wellington Mid Cap— Initial Class			MainStay VP Wellington Mid Cap— Service Class
ASSETS:
Investment at net asset value	$	31,971,215		$	38,662,125		$	190,678,338		$	75,261,188		$	19,161,144	$	30,359,352		$	136,343,490
Dividends due and accrued		—			—			—			—			—		—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		(3,635	)		(12,806	)		(2,063,479	)		(33,530	)		92		(39,476	)		(18,017	)
Net receivable from (payable to) the Fund for shares sold or purchased		4,916			14,161			2,070,475			36,446			687		40,681			23,172
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		1,158			1,293			6,847			2,591			722		1,087			4,936
Administrative charges		123			62			149			325			57		118			219

Total net assets	$	31,971,215		$	38,662,125		$	190,678,338		$	75,261,188		$	19,161,144	$	30,359,352		$	136,343,490

Total shares outstanding		2,966,120			3,792,449			190,659,271			3,078,860			810,196		3,602,629			16,868,975

Net asset value per share (NAV)	$	10.78		$	10.19		$	1.00		$	24.44		$	23.65	$	8.43		$	8.08

Total units outstanding		1,403,784			2,142,371			58,351,248			1,444,935			562,769		725,807			6,269,382

Variable accumulation unit value (lowest to highest)	$	21.71 to $23.04		$	10.40 to $23.73		$	0.87 to $10.56		$	18.64 to $56.59		$	11.54 to $37.36	$	41.73 to $45.98		$	10.37 to $43.79

Identified cost of investment	$	35,597,949		$	45,563,850		$	190,678,349		$	78,494,716		$	20,449,630	$	35,847,324		$	158,716,636

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	MainStay VP Wellington Small Cap— Initial Class			MainStay VP Wellington Small Cap— Service Class			MainStay VP Wellington U.S. Equity— Initial Class			MainStay VP Wellington U.S. Equity— Service Class			MainStay VP Winslow Large Cap Growth— Initial Class			MainStay VP Winslow Large Cap Growth— Service Class			AB VPS Relative Value Portfolio— Class B
ASSETS:
Investment at net asset value	$	15,405,887		$	70,897,368		$	68,824,873		$	69,531,599		$	47,003,032		$	285,878,446		$	10,913,356
Dividends due and accrued		—			—			—			—			—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		(19,647	)		20,008			(32,789	)		(10,515	)		(25,817	)		172,139			74,976
Net receivable from (payable to) the Fund for shares sold or purchased		20,261			(17,299	)		35,464			13,056			27,661			(161,897	)		(74,743	)
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		554			2,561			2,389			2,448			1,657			10,024			230
Administrative charges		60			148			286			93			187			218			3

Total net assets	$	15,405,887		$	70,897,368		$	68,824,873		$	69,531,599		$	47,003,032		$	285,878,446		$	10,913,356

Total shares outstanding		1,775,854			8,271,291			2,616,706			2,695,243			1,800,593			12,262,514			379,199

Net asset value per share (NAV)	$	8.68		$	8.57		$	26.30		$	25.80		$	26.10		$	23.31		$	28.78

Total units outstanding		1,370,588			5,170,776			933,339			2,800,264			800,148			9,685,022			980,038

Variable accumulation unit value (lowest to highest)	$	11.03 to $11.26		$	10.16 to $14.25		$	28.94 to $85.73		$	11.22 to $45.72		$	31.06 to $67.65		$	12.41 to $57.84		$	10.96 to $11.23

Identified cost of investment	$	16,696,396		$	75,661,551		$	65,145,829		$	67,021,080		$	43,210,421		$	280,239,187		$	10,649,119

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	American Funds IS Asset Allocation Fund— Class 4			American Funds IS The Bond Fund of America^®— Class 4			American Funds IS Global Small Capitalization Fund— Class 4			American Funds IS Growth Fund— Class 4			American Funds IS New World Fund^®— Class 4			American Funds IS Washington Mutual Investors Fund^SM— Class 4			BlackRock^® Global Allocation V.I. Fund— Class III
ASSETS:
Investment at net asset value	$	148,130,940		$	6,919,632		$	15,847,579		$	183,667,924		$	50,463,450		$	134,227,988		$	119,441,315
Dividends due and accrued		—			—			—			—			—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		37,129			7,403			(31,296	)		293,018			11,885			119,101			(75,820	)
Net receivable from (payable to) the Fund for shares sold or purchased		(32,107	)		(7,230	)		31,827			(286,904	)		(10,161	)		(114,802	)		79,980
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		4,975			173			527			6,081			1,709			4,276			4,110
Administrative charges		47			—			4			33			15			23			50

Total net assets	$	148,130,940		$	6,919,632		$	15,847,579		$	183,667,924		$	50,463,450		$	134,227,988		$	119,441,315

Total shares outstanding		6,346,656			740,068			907,651			1,919,205			2,022,583			9,546,799			9,166,640

Net asset value per share (NAV)	$	23.34		$	9.35		$	17.46		$	95.70		$	24.95		$	14.06		$	13.03

Total units outstanding		11,423,560			696,972			1,106,335			12,193,150			3,494,888			9,454,682			9,179,901

Variable accumulation unit value (lowest to highest)	$	10.78 to $13.73		$	9.79 to $10.03		$	10.31 to $15.63		$	11.60 to $21.99		$	10.74 to $15.89		$	11.31 to $16.06		$	10.14 to $15.96

Identified cost of investment	$	154,696,855		$	6,881,115		$	18,792,430		$	171,724,605		$	49,585,168		$	125,665,074		$	129,524,453

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	BlackRock^® High Yield V.I. Fund— Class III			BNY Mellon IP Technology Growth Portfolio— Initial Shares			BNY Mellon IP Technology Growth Portfolio— Service Shares			BNY Mellon Sustainable U.S. Equity Portfolio— Service Shares		ClearBridge Variable Appreciation Portfolio— Class II			Columbia Variable Portfolio— Commodity Strategy Fund— Class 2			Columbia Variable Portfolio— Emerging Markets Bond Fund— Class 2
ASSETS:
Investment at net asset value	$	96,304,790		$	20,724,507		$	176,934,125		$	1,585,530	$	22,228,927		$	1,138,054		$	34,686,063
Dividends due and accrued		492,900			—			—			—		—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		117,558			(16,302	)		(119,534	)		—		5,419			(492	)		(11,107	)
Net receivable from (payable to) the Fund for shares sold or purchased		(607,249	)		17,135			125,821			44		(4,686	)		535			12,342
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		3,190			758			6,135			44		727			42			1,229
Administrative charges		19			75			152			—		6			1			6

Total net assets	$	96,304,790		$	20,724,507		$	176,934,125		$	1,585,530	$	22,228,927		$	1,138,054		$	34,686,063

Total shares outstanding		14,007,586			739,897			7,029,564			35,977		385,718			310,096			4,418,607

Net asset value per share (NAV)	$	6.84		$	28.01		$	25.17		$	44.07	$	57.63		$	3.67		$	7.85

Total units outstanding		7,547,080			419,058			6,141,447			141,219		1,244,038			104,602			3,298,700

Variable accumulation unit value (lowest to highest)	$	10.74 to $13.31		$	47.56 to $72.12		$	11.87 to $62.36		$	11.11 to $11.35	$	11.39 to $19.29		$	8.19 to $12.72		$	10.14 to $10.69

Identified cost of investment	$	99,004,905		$	19,474,893		$	167,043,845		$	1,457,978	$	19,530,624		$	1,383,318		$	39,598,101

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	Columbia Variable Portfolio— Intermediate Bond Fund— Class 2			Columbia Variable Portfolio— Small Cap Value Fund— Class 2			Delaware VIP^® Small Cap Value Series— Service Class			DWS Alternative Asset Allocation VIP— Class B		Fidelity^® VIP Bond Index Portfolio— Service Class 2			Fidelity^® VIP Contrafund^SM Portfolio— Initial Class			Fidelity^® VIP Contrafund^SM Portfolio— Service Class 2
ASSETS:
Investment at net asset value	$	1,297,548		$	44,476,613		$	16,582,143		$	63,499,954	$	51,075,405		$	124,479,062		$	383,128,583
Dividends due and accrued		—			—			—			—		—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		(2,924	)		(76,829	)		(6,638	)		1,658		124,646			(51,981	)		93,856
Net receivable from (payable to) the Fund for shares sold or purchased		2,947			78,421			7,168			527		(122,876	)		56,840			(79,788	)
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		23			1,529			524			2,176		1,761			4,350			13,613
Administrative charges		—			63			6			9		9			509			455

Total net assets	$	1,297,548		$	44,476,613		$	16,582,143		$	63,499,954	$	51,075,405		$	124,479,062		$	383,128,583

Total shares outstanding		151,760			3,472,023			434,770			4,992,135		5,303,780			2,559,718			8,181,264

Net asset value per share (NAV)	$	8.55		$	12.81		$	38.14		$	12.72	$	9.63		$	48.63		$	46.83

Total units outstanding		132,145			1,948,869			1,341,342			5,502,899		5,921,737			1,383,140			13,656,248

Variable accumulation unit value (lowest to highest)	$	9.66 to $9.87		$	11.70 to $36.89		$	10.32 to $12.86		$	9.72 to $11.83	$	8.44 to $10.08		$	49.02 to $101.02		$	11.85 to $60.96

Identified cost of investment	$	1,252,719		$	44,971,839		$	16,671,737		$	63,912,171	$	56,904,718		$	93,758,519		$	323,541,826

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	Fidelity^® VIP Emerging Markets Portfolio— Service Class 2			Fidelity^® VIP Equity-Income Portfolio^SM— Initial Class			Fidelity^® VIP Equity-Income Portfolio^SM— Service Class 2			Fidelity^® VIP FundsManager^® 60% Portfolio— Investor Class			Fidelity^® VIP FundsManager^® 60% Portfolio— Service Class			Fidelity^® VIP Government Money Market Portfolio— Investor Class		Fidelity^® VIP Growth Opportunities Portfolio— Service Class 2
ASSETS:
Investment at net asset value	$	15,528,653		$	41,546,198		$	159,508,687		$	934,862,317		$	41,956,882		$	—	$	240,798,795
Dividends due and accrued		—			—			—			—			—			—		—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		1,451			(4,402	)		148,298			(528,077	)		22,822			—		86,287
Net receivable from (payable to) the Fund for shares sold or purchased		(954	)		6,026			(142,767	)		576,870			(21,419	)		—		(78,162	)
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		491			1,458			5,361			30,818			1,397			—		8,014
Administrative charges		6			166			170			17,975			6			—		111

Total net assets	$	15,528,653		$	41,546,198		$	159,508,687		$	934,862,317		$	41,956,882		$	—	$	240,798,795

Total shares outstanding		1,467,737			1,671,879			6,671,212			96,377,558			4,325,452			—		4,152,419

Net asset value per share (NAV)	$	10.58		$	24.85		$	23.91		$	9.70		$	9.70		$	—	$	57.99

Total units outstanding		1,413,773			878,089			7,866,498			74,990,882			3,454,995			—		8,557,111

Variable accumulation unit value (lowest to highest)	$	10.24 to $11.18		$	31.20 to $52.02		$	10.80 to $35.48		$	12.47 to $12.88		$	10.69 to $12.89		$	—	$	11.80 to $37.48

Identified cost of investment	$	16,395,595		$	37,324,531		$	152,488,855		$	974,888,196		$	43,615,354		$	—	$	240,759,361

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	Fidelity^® VIP Health Care Portfolio— Service Class 2			Fidelity^® VIP International Index Portfolio— Service Class 2			Fidelity^® VIP Investment Grade Bond Portfolio— Service Class 2			Fidelity^® VIP Mid Cap Portfolio— Service Class 2			Franklin Templeton Aggressive Model Portfolio— Class II			Franklin Templeton Conservative Model Portfolio— Class II			Franklin Templeton Moderate Model Portfolio— Class II
ASSETS:
Investment at net asset value	$	64,087,037		$	24,975,190		$	5,275,044		$	124,192,868		$	136,860,677		$	66,297,804		$	475,409,695
Dividends due and accrued		—			—			—			—			—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		40,586			(678	)		35,697			(48,422	)		62,119			3,888			1,560,496
Net receivable from (payable to) the Fund for shares sold or purchased		(38,488	)		1,381			(35,578	)		52,971			(57,831	)		(1,611	)		(1,546,031	)
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		2,073			701			118			4,317			4,276			2,259			14,433
Administrative charges		25			2			1			232			12			18			32

Total net assets	$	64,087,037		$	24,975,190		$	5,275,044		$	124,192,868		$	136,860,677		$	66,297,804		$	475,409,695

Total shares outstanding		1,887,133			2,365,075			487,527			3,580,077			10,274,826			6,891,664			41,448,099

Net asset value per share (NAV)	$	33.96		$	10.56		$	10.82		$	34.69		$	13.32		$	9.62		$	11.47

Total units outstanding		4,686,064			2,248,845			524,178			4,874,713			10,321,743			6,468,561			40,261,912

Variable accumulation unit value (lowest to highest)	$	10.71 to $14.25		$	10.59 to $11.72		$	9.91 to $10.15		$	10.97 to $52.24		$	10.93 to $14.59		$	9.61 to $10.39		$	10.52 to $12.26

Identified cost of investment	$	65,530,227		$	24,252,924		$	5,203,740		$	120,655,267		$	132,341,572		$	68,761,402		$	478,618,203

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	Franklin Templeton Moderately Aggressive Model Portfolio— Class II			Franklin Templeton Moderately Conservative Model Portfolio— Class II			Invesco V.I. EQV International Equity Fund— Series II Shares			Invesco V.I. Main Street Small Cap Fund^®— Series II Shares			Janus Henderson Enterprise Portfolio— Service Shares			Janus Henderson Global Research Portfolio— Institutional Shares			Janus Henderson Global Research Portfolio— Service Shares
ASSETS:
Investment at net asset value	$	381,823,728		$	161,818,589		$	30,547,982		$	16,952,119		$	50,525,302		$	46,439,348		$	42,284,494
Dividends due and accrued		—			—			—			—			—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		278,249			17,709			10,455			41,184			42,791			(16,310	)		127,026
Net receivable from (payable to) the Fund for shares sold or purchased		(266,354	)		(12,446	)		(9,376	)		(40,666	)		(41,196	)		18,108			(125,554	)
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		11,864			5,245			1,070			508			1,577			1,597			1,414
Administrative charges		31			18			9			10			18			201			58

Total net assets	$	381,823,728		$	161,818,589		$	30,547,982		$	16,952,119		$	50,525,302		$	46,439,348		$	42,284,494

Total shares outstanding		30,992,186			15,052,892			912,697			644,567			738,998			760,055			716,443

Net asset value per share (NAV)	$	12.32		$	10.75		$	33.47		$	26.30		$	68.37		$	61.10		$	59.02

Total units outstanding		30,589,265			14,386,246			2,368,197			1,074,667			3,169,758			1,133,719			1,926,041

Variable accumulation unit value (lowest to highest)	$	10.74 to $13.21		$	10.26 to $11.51		$	11.33 to $13.98		$	11.12 to $17.90		$	11.20 to $17.48		$	16.71 to $44.42		$	11.72 to $33.15

Identified cost of investment	$	378,872,536		$	166,479,970		$	30,589,333		$	16,368,402		$	52,537,136		$	33,014,947		$	37,688,825

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	MFS^® International Intrinsic Value Portfolio— Service Class			MFS^® Investors Trust Series— Initial Class			MFS^® Investors Trust Series— Service Class			MFS^® Mid Cap Value Portfolio— Service Class			MFS^® Research International Portfolio— Service Class			MFS^® Research Series— Initial Class			MFS^® Research Series— Service Class
ASSETS:
Investment at net asset value	$	44,870,183		$	7,151,258		$	58,816,443		$	28,159,234		$	1,671,429		$	8,089,739		$	43,834,574
Dividends due and accrued		—			—			—			—			—			—			—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		(20,494	)		1,200			(65,115	)		(6,734	)		56,059			(10	)		(10,442	)
Net receivable from (payable to) the Fund for shares sold or purchased		21,934			(919	)		67,230			7,599			(56,017	)		326			12,010
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		1,430			253			2,091			852			42			283			1,542
Administrative charges		10			28			24			13			—			33			26

Total net assets	$	44,870,183		$	7,151,258		$	58,816,443		$	28,159,234		$	1,671,429		$	8,089,739		$	43,834,574

Total shares outstanding		1,556,371			198,701			1,667,133			2,909,012			100,507			253,042			1,399,571

Net asset value per share (NAV)	$	28.83		$	35.99		$	35.28		$	9.68		$	16.63		$	31.97		$	31.32

Total units outstanding		3,285,200			195,325			2,702,921			1,846,254			154,571			193,754			1,850,706

Variable accumulation unit value (lowest to highest)	$	10.88 to $14.22		$	31.00 to $49.42		$	11.05 to $44.91		$	10.82 to $17.58		$	10.69 to $10.92		$	28.39 to $47.27		$	11.42 to $51.67

Identified cost of investment	$	46,079,502		$	6,216,229		$	53,959,091		$	27,588,896		$	1,570,006		$	7,404,603		$	40,976,223

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	Morgan Stanley VIF U.S. Real Estate Portfolio— Class II			Neuberger Berman AMT Mid Cap Growth Portfolio— Class I		Neuberger Berman AMT Mid Cap Growth Portfolio— Class S			PIMCO VIT Income Portfolio— Advisor Class			PIMCO VIT International Bond Portfolio (U.S. Dollar- Hedged)— Advisor Class			PIMCO VIT Low Duration Portfolio— Advisor Class		PIMCO VIT Total Return Portfolio— Advisor Class
ASSETS:
Investment at net asset value	$	21,448,428		$	1,381,081	$	79,296,834		$	30,160,554		$	66,405,336		$	41,240,853	$	136,907,434
Dividends due and accrued		—			—		—			(23	)		(3	)		1		(5	)
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		(3,373	)		—		(88,169	)		266,434			(30,975	)		1,067		97,408
Net receivable from (payable to) the Fund for shares sold or purchased		4,070			57		91,022			(265,567	)		33,390			273		(92,670	)
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		685			53		2,777			836			2,396			1,328		4,706
Administrative charges		12			4		76			8			16			13		27

Total net assets	$	21,448,428		$	1,381,081	$	79,296,834		$	30,160,554		$	66,405,336		$	41,240,853	$	136,907,434

Total shares outstanding		1,485,348			51,862		3,459,722			3,031,214			6,755,375			4,295,922		14,913,664

Net asset value per share (NAV)	$	14.44		$	26.63	$	22.92		$	9.95		$	9.83		$	9.60	$	9.18

Total units outstanding		2,090,709			32,234		3,604,320			2,788,694			6,227,322			4,238,080		13,767,593

Variable accumulation unit value (lowest to highest)	$	8.98 to $11.90		$	40.40 to $57.78	$	10.35 to $50.98		$	10.48 to $10.91		$	10.16 to $11.36		$	9.33 to $10.25	$	9.67 to $10.11

Identified cost of investment	$	23,095,877		$	1,376,984	$	88,836,062		$	30,553,160		$	71,720,106		$	42,258,795	$	156,707,319

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Assets and Liabilities (Continued)

As of December 31, 2023


	Western Asset Core Plus VIT Portfolio— Class II
ASSETS:
Investment at net asset value	$	1,528,864
Dividends due and accrued		—
Net receivable from (payable to) New York Life Insurance and Annuity Corporation		6,073
Net receivable from (payable to) the Fund for shares sold or purchased		(6,038	)
LIABILITIES:
Liability to New York Life Insurance and Annuity Corporation for:
Mortality and expense risk charges		35
Administrative charges		—

Total net assets	$	1,528,864

Total shares outstanding		308,239

Net asset value per share (NAV)	$	4.96

Total units outstanding		152,733

Variable accumulation unit value (lowest to highest)	$	9.88 to $10.09

Identified cost of investment	$	1,508,783

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations

For the year ended December 31, 2023


	MainStay VP American Century Sustainable Equity— Initial Class			MainStay VP American Century Sustainable Equity— Service Class			MainStay VP Balanced— Service Class			MainStay VP Bond— Initial Class			MainStay VP Bond— Service Class			MainStay VP Candriam Emerging Markets Equity— Initial Class			MainStay VP Candriam Emerging Markets Equity— Service Class
INVESTMENT INCOME (LOSS):
Dividend income	$	455,765		$	643,575		$	1,963,538		$	613,804		$	2,565,686		$	117,569		$	346,617
Mortality and expense risk charges		(458,531	)		(878,444	)		(1,527,351	)		(287,238	)		(1,272,258	)		(87,123	)		(333,985	)
Administrative charges		(59,602	)		(109,401	)		(134,050	)		(40,970	)		(169,370	)		(13,600	)		(52,227	)

Net investment income (loss)		(62,368	)		(344,270	)		302,137			285,596			1,124,058			16,846			(39,595	)

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		8,345,778			18,427,283			27,175,495			4,120,266			18,461,456			1,154,803			4,476,622
Cost of investments sold		(9,751,531	)		(21,381,744	)		(30,914,061	)		(4,909,614	)		(21,793,376	)		(1,528,979	)		(5,484,273	)

Net realized gain (loss) on investments		(1,405,753	)		(2,954,461	)		(3,738,566	)		(789,348	)		(3,331,920	)		(374,176	)		(1,007,651	)
Realized gain distribution received		11,621,525			21,151,108			—			—			—			—			—
Change in unrealized appreciation (depreciation) on investments		(2,900,155	)		(4,822,776	)		9,985,179			1,356,288			5,795,557			738,268			2,351,686

Net gain (loss) on investments		7,315,617			13,373,871			6,246,613			566,940			2,463,637			364,092			1,344,035

Net increase (decrease) in net assets resulting from operations	$	7,253,249		$	13,029,601		$	6,548,750		$	852,536		$	3,587,695		$	380,938		$	1,304,440

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	MainStay VP CBRE Global Infrastructure— Service Class			MainStay VP Conservative Allocation— Service Class			MainStay VP Epoch U.S. Equity Yield— Initial Class			MainStay VP Epoch U.S. Equity Yield— Service Class			MainStay VP Equity Allocation— Service Class			MainStay VP Fidelity Institutional AM^® Utilities— Initial Class			MainStay VP Fidelity Institutional AM^® Utilities— Service Class
INVESTMENT INCOME (LOSS):
Dividend income	$	136,558		$	4,733,086		$	2,174,251		$	3,700,630		$	6,895,488		$	14,387		$	4,501,875
Mortality and expense risk charges		(107,855	)		(2,394,465	)		(1,064,176	)		(2,013,127	)		(1,816,785	)		(9,857	)		(3,468,661	)
Administrative charges		(9,692	)		(204,636	)		(143,643	)		(244,057	)		(296,841	)		(1,523	)		(411,027	)

Net investment income (loss)		19,011			2,133,985			966,432			1,443,446			4,781,862			3,007			622,187

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		3,512,363			46,137,037			12,469,168			38,419,342			29,948,675			38,679			62,526,735
Cost of investments sold		(3,686,669	)		(52,497,531	)		(11,804,298	)		(35,069,860	)		(35,337,548	)		(37,709	)		(62,440,727	)

Net realized gain (loss) on investments		(174,306	)		(6,360,494	)		664,870			3,349,482			(5,388,873	)		970			86,008
Realized gain distribution received		—			5,885,727			5,206,457			9,860,417			12,876,453			99,619			36,523,104
Change in unrealized appreciation (depreciation) on investments		372,509			12,623,953			(1,343,443	)		(4,831,266	)		7,122,245			(117,075	)		(46,838,328	)

Net gain (loss) on investments		198,203			12,149,186			4,527,884			8,378,633			14,609,825			(16,486	)		(10,229,216	)

Net increase (decrease) in net assets resulting from operations	$	217,214		$	14,283,171		$	5,494,316		$	9,822,079		$	19,391,687		$	(13,479	)	$	(9,607,029	)

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	MainStay VP Floating Rate— Service Class			MainStay VP Growth Allocation— Service Class			MainStay VP Income Builder— Initial Class			MainStay VP Income Builder— Service Class			MainStay VP IQ Hedge Multi- Strategy— Service Class			MainStay VP Janus Henderson Balanced— Initial Class			MainStay VP Janus Henderson Balanced— Service Class
INVESTMENT INCOME (LOSS):
Dividend income	$	16,148,553		$	9,595,665		$	1,288,511		$	3,802,590		$	1,921,109		$	1,781,429		$	4,992,257
Mortality and expense risk charges		(2,539,449	)		(3,508,096	)		(496,912	)		(1,605,289	)		(596,208	)		(1,628,216	)		(4,980,427	)
Administrative charges		(258,863	)		(558,499	)		(71,162	)		(107,008	)		(92,022	)		(246,554	)		(328,883	)

Net investment income (loss)		13,350,241			5,529,070			720,437			2,090,293			1,232,879			(93,341	)		(317,053	)

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		49,595,418			62,841,093			7,040,829			25,173,633			11,499,078			19,607,344			56,425,779
Cost of investments sold		(51,717,647	)		(74,254,417	)		(8,782,403	)		(29,799,704	)		(11,500,366	)		(14,860,078	)		(55,677,507	)

Net realized gain (loss) on investments		(2,122,229	)		(11,413,324	)		(1,741,574	)		(4,626,071	)		(1,288	)		4,747,266			748,272
Realized gain distribution received		—			17,345,135			—			—			—			4,767,625			16,057,242
Change in unrealized appreciation (depreciation) on investments		7,957,190			21,217,398			4,143,724			12,292,879			2,222,906			7,153,326			34,483,385

Net gain (loss) on investments		5,834,961			27,149,209			2,402,150			7,666,808			2,221,618			16,668,217			51,288,899

Net increase (decrease) in net assets resulting from operations	$	19,185,202		$	32,678,279		$	3,122,587		$	9,757,101		$	3,454,497		$	16,574,876		$	50,971,846

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	MainStay VP MacKay Convertible— Initial Class			MainStay VP MacKay Convertible— Service Class			MainStay VP MacKay Government— Initial Class			MainStay VP MacKay Government— Service Class			MainStay VP MacKay High Yield Corporate Bond— Initial Class			MainStay VP MacKay High Yield Corporate Bond— Service Class			MainStay VP MacKay Strategic Bond— Service Class
INVESTMENT INCOME (LOSS):
Dividend income	$	1,207,816		$	5,245,651		$	353,008		$	1,114,645		$	5,505,931		$	35,167,610		$	6,386,623
Mortality and expense risk charges		(719,737	)		(3,487,157	)		(193,995	)		(674,655	)		(1,271,536	)		(8,220,555	)		(1,816,035	)
Administrative charges		(97,567	)		(303,957	)		(29,909	)		(89,061	)		(168,329	)		(956,369	)		(259,985	)

Net investment income (loss)		390,512			1,454,537			129,104			350,929			4,066,066			25,990,686			4,310,603

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		9,703,655			45,153,913			2,584,632			11,212,509			22,329,902			108,359,996			37,053,909
Cost of investments sold		(8,928,279	)		(44,618,105	)		(3,051,406	)		(12,950,333	)		(24,351,591	)		(120,543,545	)		(39,344,898	)

Net realized gain (loss) on investments		775,376			535,808			(466,774	)		(1,737,824	)		(2,021,689	)		(12,183,549	)		(2,290,989	)
Realized gain distribution received		—			—			—			—			—			—			—
Change in unrealized appreciation (depreciation) on investments		2,723,085			16,667,219			810,730			2,973,371			7,568,003			45,390,221			8,616,230

Net gain (loss) on investments		3,498,461			17,203,027			343,956			1,235,547			5,546,314			33,206,672			6,325,241

Net increase (decrease) in net assets resulting from operations	$	3,888,973		$	18,657,564		$	473,060		$	1,586,476		$	9,612,380		$	59,197,358		$	10,635,844

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	MainStay VP Moderate Allocation— Service Class			MainStay VP Natural Resources— Initial Class			MainStay VP PIMCO Real Return— Service Class			MainStay VP PineStone International Equity— Initial Class			MainStay VP PineStone International Equity— Service Class			MainStay VP S&P 500 Index— Initial Class			MainStay VP S&P 500 Index— Service Class
INVESTMENT INCOME (LOSS):
Dividend income	$	7,405,772		$	2,310,747		$	7,401,399		$	—		$	—		$	2,324,215		$	6,927,697
Mortality and expense risk charges		(3,489,391	)		(1,460,246	)		(1,134,967	)		(172,416	)		(868,788	)		(2,168,713	)		(7,183,999	)
Administrative charges		(397,790	)		(173,762	)		(178,699	)		(22,709	)		(113,129	)		(304,081	)		(713,795	)

Net investment income (loss)		3,518,591			676,739			6,087,733			(195,125	)		(981,917	)		(148,579	)		(970,097	)

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		58,357,996			39,124,426			19,545,954			2,839,191			13,253,432			25,851,961			90,764,875
Cost of investments sold		(68,139,290	)		(26,117,642	)		(21,235,274	)		(3,904,503	)		(18,236,629	)		(7,741,040	)		(63,258,082	)

Net realized gain (loss) on investments		(9,781,294	)		13,006,784			(1,689,320	)		(1,065,312	)		(4,983,197	)		18,110,921			27,506,793
Realized gain distribution received		11,782,513			—			—			—			—			2,565,256			9,168,399
Change in unrealized appreciation (depreciation) on investments		21,634,130			(12,821,517	)		(2,772,764	)		1,623,554			7,814,314			16,724,169			86,716,849

Net gain (loss) on investments		23,635,349			185,267			(4,462,084	)		558,242			2,831,117			37,400,346			123,392,041

Net increase (decrease) in net assets resulting from operations	$	27,153,940		$	862,006		$	1,625,649		$	363,117		$	1,849,200		$	37,251,767		$	122,421,944

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	MainStay VP Small Cap Growth— Initial Class			MainStay VP Small Cap Growth— Service Class			MainStay VP U.S. Government Money Market— Initial Class			MainStay VP Wellington Growth— Initial Class			MainStay VP Wellington Growth— Service Class			MainStay VP Wellington Mid Cap— Initial Class			MainStay VP Wellington Mid Cap— Service Class
INVESTMENT INCOME (LOSS):
Dividend income	$	—		$	—		$	9,521,043		$	—		$	—		$	33,637		$	—
Mortality and expense risk charges		(424,998	)		(430,824	)		(2,729,394	)		(866,628	)		(247,220	)		(396,210	)		(1,738,224	)
Administrative charges		(69,965	)		(45,408	)		(316,463	)		(135,950	)		(33,320	)		(53,877	)		(205,567	)

Net investment income (loss)		(494,963	)		(476,232	)		6,475,186			(1,002,578	)		(280,540	)		(416,450	)		(1,943,791	)

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		5,966,287			6,613,241			137,550,515			9,244,106			3,542,391			5,907,430			22,560,458
Cost of investments sold		(6,740,924	)		(9,181,742	)		(137,550,497	)		(11,832,475	)		(4,461,442	)		(10,161,127	)		(38,295,019	)

Net realized gain (loss) on investments		(774,637	)		(2,568,501	)		18			(2,588,369	)		(919,051	)		(4,253,697	)		(15,734,561	)
Realized gain distribution received		113,836			138,729			—			—			—			—			—
Change in unrealized appreciation (depreciation) on investments		5,325,188			7,381,369			(18	)		25,038,744			6,748,560			8,122,473			32,541,207

Net gain (loss) on investments		4,664,387			4,951,597			—			22,450,375			5,829,509			3,868,776			16,806,646

Net increase (decrease) in net assets resulting from operations	$	4,169,424		$	4,475,365		$	6,475,186		$	21,447,797		$	5,548,969		$	3,452,326		$	14,862,855

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	MainStay VP Wellington Small Cap— Initial Class			MainStay VP Wellington Small Cap— Service Class			MainStay VP Wellington U.S. Equity— Initial Class			MainStay VP Wellington U.S. Equity— Service Class			MainStay VP Winslow Large Cap Growth— Initial Class			MainStay VP Winslow Large Cap Growth— Service Class			AB VPS Relative Value Portfolio— Class B
INVESTMENT INCOME (LOSS):
Dividend income	$	126,736		$	378,277		$	632,069		$	463,548		$	—		$	—		$	97,985
Mortality and expense risk charges		(195,975	)		(884,695	)		(835,875	)		(846,448	)		(539,291	)		(3,223,328	)		(52,763	)
Administrative charges		(26,715	)		(103,130	)		(117,556	)		(92,043	)		(78,770	)		(349,262	)		(5,539	)

Net investment income (loss)		(95,954	)		(609,548	)		(321,362	)		(474,943	)		(618,061	)		(3,572,590	)		39,683

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		3,072,160			15,301,138			9,860,141			13,956,493			7,774,992			54,666,202			2,353,274
Cost of investments sold		(4,398,021	)		(20,546,199	)		(9,921,309	)		(16,138,894	)		(7,190,713	)		(62,308,066	)		(2,356,212	)

Net realized gain (loss) on investments		(1,325,861	)		(5,245,061	)		(61,168	)		(2,182,401	)		584,279			(7,641,864	)		(2,938	)
Realized gain distribution received		—			—			—			—			1,576,549			10,531,646			618,931
Change in unrealized appreciation (depreciation) on investments		3,121,826			13,606,850			14,001,905			15,916,519			13,005,886			86,077,394			226,098

Net gain (loss) on investments		1,795,965			8,361,789			13,940,737			13,734,118			15,166,714			88,967,176			842,091

Net increase (decrease) in net assets resulting from operations	$	1,700,011		$	7,752,241		$	13,619,375		$	13,259,175		$	14,548,653		$	85,394,586		$	881,774

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	American Funds IS Asset Allocation Fund— Class 4			American Funds IS The Bond Fund of America^®— Class 4			American Funds IS Global Small Capitalization Fund— Class 4			American Funds IS Growth Fund— Class 4			American Funds IS New World Fund^®— Class 4			American Funds IS Washington Mutual Investors Fund^SM— Class 4			BlackRock^® Global Allocation V.I. Fund— Class III
INVESTMENT INCOME (LOSS):
Dividend income	$	2,746,116		$	200,507		$	3,900		$	219,174		$	593,888		$	2,025,788		$	2,890,556
Mortality and expense risk charges		(1,604,909	)		(38,450	)		(174,562	)		(1,470,460	)		(608,290	)		(1,329,529	)		(1,439,594	)
Administrative charges		(85,525	)		(7,120	)		(14,873	)		(106,766	)		(79,631	)		(150,769	)		(146,020	)

Net investment income (loss)		1,055,682			154,937			(185,535	)		(1,358,052	)		(94,033	)		545,490			1,304,942

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		16,825,259			1,497,074			3,268,744			13,500,096			10,479,655			16,072,043			22,802,053
Cost of investments sold		(18,031,958	)		(1,534,994	)		(4,344,753	)		(13,686,227	)		(10,404,799	)		(16,146,937	)		(25,765,642	)

Net realized gain (loss) on investments		(1,206,699	)		(37,920	)		(1,076,009	)		(186,131	)		74,856			(74,894	)		(2,963,589	)
Realized gain distribution received		4,988,212			—			181,931			6,707,595			—			1,039,454			—
Change in unrealized appreciation (depreciation) on investments		11,034,835			124,039			3,023,186			32,339,641			6,350,067			15,387,487			13,337,278

Net gain (loss) on investments		14,816,348			86,119			2,129,108			38,861,105			6,424,923			16,352,047			10,373,689

Net increase (decrease) in net assets resulting from operations	$	15,872,030		$	241,056		$	1,943,573		$	37,503,053		$	6,330,890		$	16,897,537		$	11,678,631

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	BlackRock^® High Yield V.I. Fund— Class III			BNY Mellon IP Technology Growth Portfolio— Initial Shares			BNY Mellon IP Technology Growth Portfolio— Service Shares			BNY Mellon Sustainable U.S. Equity Portfolio— Service Shares			ClearBridge Variable Appreciation Portfolio— Class II			Columbia Variable Portfolio— Commodity Strategy Fund— Class 2			Columbia Variable Portfolio— Emerging Markets Bond Fund— Class 2
INVESTMENT INCOME (LOSS):
Dividend income	$	5,483,702		$	—		$	—		$	3,736		$	149,375		$	276,219		$	1,760,659
Mortality and expense risk charges		(1,080,106	)		(223,545	)		(1,836,033	)		(10,090	)		(235,790	)		(17,020	)		(436,319	)
Administrative charges		(180,855	)		(30,029	)		(177,851	)		(1,589	)		(33,751	)		(1,161	)		(70,331	)

Net investment income (loss)		4,222,741			(253,574	)		(2,013,884	)		(7,943	)		(120,166	)		258,038			1,254,009

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		16,749,350			3,601,036			33,375,918			574,061			4,267,787			365,887			5,640,551
Cost of investments sold		(18,181,506	)		(3,759,561	)		(35,796,181	)		(582,687	)		(3,737,345	)		(401,653	)		(7,023,502	)

Net realized gain (loss) on investments		(1,432,156	)		(158,525	)		(2,420,263	)		(8,626	)		530,442			(35,766	)		(1,382,951	)
Realized gain distribution received		—			—			—			83,643			574,374			—			—
Change in unrealized appreciation (depreciation) on investments		6,641,160			7,890,325			67,761,359			143,881			2,235,117			(331,066	)		2,855,420

Net gain (loss) on investments		5,209,004			7,731,800			65,341,096			218,898			3,339,933			(366,832	)		1,472,469

Net increase (decrease) in net assets resulting from operations	$	9,431,745		$	7,478,226		$	63,327,212		$	210,955		$	3,219,767		$	(108,794	)	$	2,726,478

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	Columbia Variable Portfolio— Intermediate Bond Fund— Class 2			Columbia Variable Portfolio— Small Cap Value Fund— Class 2			Delaware VIP^® Small Cap Value Series— Service Class			DWS Alternative Asset Allocation VIP— Class B			Fidelity^® VIP Bond Index Portfolio— Service Class 2			Fidelity^® VIP Contrafund^SM Portfolio— Initial Class			Fidelity^® VIP Contrafund^SM Portfolio— Service Class 2
INVESTMENT INCOME (LOSS):
Dividend income	$	10,643		$	171,499		$	91,009		$	4,052,113		$	1,091,440		$	555,927		$	913,258
Mortality and expense risk charges		(4,780	)		(503,146	)		(172,252	)		(801,358	)		(605,596	)		(1,490,724	)		(4,683,866	)
Administrative charges		(1,394	)		(52,186	)		(20,338	)		(113,817	)		(77,644	)		(205,476	)		(577,637	)

Net investment income (loss)		4,469			(383,833	)		(101,581	)		3,136,938			408,200			(1,140,273	)		(4,348,245	)

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		244,823			13,234,484			3,496,473			10,065,285			7,285,458			18,521,706			87,080,880
Cost of investments sold		(251,550	)		(18,895,625	)		(3,676,249	)		(10,390,054	)		(8,539,530	)		(14,496,327	)		(68,577,403	)

Net realized gain (loss) on investments		(6,727	)		(5,661,141	)		(179,776	)		(324,769	)		(1,254,072	)		4,025,379			18,503,477
Realized gain distribution received		—			2,921,385			609,993			574,456			—			4,089,609			12,999,743
Change in unrealized appreciation (depreciation) on investments		56,553			10,670,512			979,084			(840,926	)		2,580,028			25,175,598			68,894,020

Net gain (loss) on investments		49,826			7,930,756			1,409,301			(591,239	)		1,325,956			33,290,586			100,397,240

Net increase (decrease) in net assets resulting from operations	$	54,295		$	7,546,923		$	1,307,720		$	2,545,699		$	1,734,156		$	32,150,313		$	96,048,995

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	Fidelity^® VIP Emerging Markets Portfolio— Service Class 2			Fidelity^® VIP Equity-Income Portfolio^SM— Initial Class			Fidelity^® VIP Equity-Income Portfolio^SM— Service Class 2			Fidelity^® VIP FundsManager^® 60% Portfolio— Investor Class			Fidelity^® VIP FundsManager^® 60% Portfolio— Service Class			Fidelity^® VIP Government Money Market Portfolio— Investor Class		Fidelity^® VIP Growth Opportunities Portfolio— Service Class 2
INVESTMENT INCOME (LOSS):
Dividend income	$	297,894		$	768,403		$	2,660,471		$	20,751,920		$	911,407		$	—	$	—
Mortality and expense risk charges		(168,946	)		(535,912	)		(1,866,742	)		(10,337,239	)		(423,554	)		—		(2,411,021	)
Administrative charges		(15,892	)		(73,339	)		(193,630	)		(6,029,247	)		(33,702	)		—		(319,394	)

Net investment income (loss)		113,056			159,152			600,099			4,385,434			454,151			—		(2,730,415	)

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		5,732,728			7,240,899			31,041,446			16,492,994			3,787,568			—		36,724,442
Cost of investments sold		(7,514,122	)		(6,640,738	)		(28,575,776	)		(16,576,687	)		(4,342,125	)		—		(38,155,811	)

Net realized gain (loss) on investments		(1,781,394	)		600,161			2,465,670			(83,693	)		(554,557	)		—		(1,431,369	)
Realized gain distribution received		—			1,153,407			4,565,343			—			—			—		—
Change in unrealized appreciation (depreciation) on investments		2,525,093			1,670,493			5,333,754			94,266,448			4,245,676			—		73,445,650

Net gain (loss) on investments		743,699			3,424,061			12,364,767			94,182,755			3,691,119			—		72,014,281

Net increase (decrease) in net assets resulting from operations	$	856,755		$	3,583,213		$	12,964,866		$	98,568,189		$	4,145,270		$	—	$	69,283,866

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	Fidelity^® VIP Health Care Portfolio— Service Class 2			Fidelity^® VIP International Index Portfolio— Service Class 2			Fidelity^® VIP Investment Grade Bond Portfolio— Service Class 2			Fidelity^® VIP Mid Cap Portfolio— Service Class 2			Franklin Templeton Aggressive Model Portfolio— Class II			Franklin Templeton Conservative Model Portfolio— Class II			Franklin Templeton Moderate Model Portfolio— Class II
INVESTMENT INCOME (LOSS):
Dividend income	$	—		$	574,308		$	123,630		$	454,490		$	1,207,205		$	2,084,513		$	7,800,177
Mortality and expense risk charges		(698,075	)		(195,332	)		(30,137	)		(1,505,625	)		(1,264,670	)		(763,975	)		(4,561,415	)
Administrative charges		(66,165	)		(8,983	)		(6,526	)		(176,885	)		(58,627	)		(38,340	)		(603,862	)

Net investment income (loss)		(764,240	)		369,993			86,967			(1,228,020	)		(116,092	)		1,282,198			2,634,900

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		8,965,225			3,880,642			1,777,869			25,197,927			17,752,868			14,486,500			34,512,678
Cost of investments sold		(9,865,006	)		(3,854,045	)		(1,810,738	)		(24,294,995	)		(17,791,886	)		(16,333,768	)		(36,169,760	)

Net realized gain (loss) on investments		(899,781	)		26,597			(32,869	)		902,932			(39,018	)		(1,847,268	)		(1,657,082	)
Realized gain distribution received		—			—			—			3,389,510			548,727			—			1,376,222
Change in unrealized appreciation (depreciation) on investments		3,294,808			2,067,915			100,454			11,677,623			17,006,111			4,683,476			42,952,559

Net gain (loss) on investments		2,395,027			2,094,512			67,585			15,970,065			17,515,820			2,836,208			42,671,699

Net increase (decrease) in net assets resulting from operations	$	1,630,787		$	2,464,505		$	154,552		$	14,742,045		$	17,399,728		$	4,118,406		$	45,306,599

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	Franklin Templeton Moderately Aggressive Model Portfolio— Class II			Franklin Templeton Moderately Conservative Model Portfolio— Class II			Invesco V.I. EQV International Equity Fund— Series II Shares			Invesco V.I. Main Street Small Cap Fund^®— Series II Shares			Janus Henderson Enterprise Portfolio— Service Shares			Janus Henderson Global Research Portfolio— Institutional Shares			Janus Henderson Global Research Portfolio— Service Shares
INVESTMENT INCOME (LOSS):
Dividend income	$	4,633,628		$	3,920,614		$	—		$	134,212		$	43,543		$	405,967		$	294,072
Mortality and expense risk charges		(3,574,603	)		(1,777,209	)		(381,348	)		(140,879	)		(493,810	)		(553,640	)		(469,410	)
Administrative charges		(365,382	)		(139,573	)		(50,303	)		(18,313	)		(64,579	)		(86,081	)		(47,806	)

Net investment income (loss)		693,643			2,003,832			(431,651	)		(24,980	)		(514,846	)		(233,754	)		(223,144	)

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		32,742,506			26,941,274			10,193,373			3,007,598			6,763,945			5,936,115			7,818,495
Cost of investments sold		(33,431,278	)		(29,178,497	)		(12,140,133	)		(3,644,429	)		(7,465,714	)		(3,352,209	)		(6,645,736	)

Net realized gain (loss) on investments		(688,772	)		(2,237,223	)		(1,946,760	)		(636,831	)		(701,769	)		2,583,906			1,172,759
Realized gain distribution received		1,239,683			—			22,104			—			3,115,983			1,250,623			1,093,562
Change in unrealized appreciation (depreciation) on investments		40,642,391			12,798,773			6,739,825			2,816,057			4,504,380			6,235,452			6,291,801

Net gain (loss) on investments		41,193,302			10,561,550			4,815,169			2,179,226			6,918,594			10,069,981			8,558,122

Net increase (decrease) in net assets resulting from operations	$	41,886,945		$	12,565,382		$	4,383,518		$	2,154,246		$	6,403,748		$	9,836,227		$	8,334,978

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	MFS^® International Intrinsic Value Portfolio— Service Class			MFS^® Investors Trust Series— Initial Class			MFS^® Investors Trust Series— Service Class			MFS^® Mid Cap Value Portfolio— Service Class			MFS^® Research International Portfolio— Service Class			MFS^® Research Series— Initial Class			MFS^® Research Series— Service Class
INVESTMENT INCOME (LOSS):
Dividend income	$	196,483		$	50,261		$	262,865		$	385,350		$	8,825		$	41,606		$	102,591
Mortality and expense risk charges		(488,965	)		(92,402	)		(740,834	)		(287,917	)		(9,691	)		(101,596	)		(539,390	)
Administrative charges		(64,261	)		(13,365	)		(97,051	)		(23,580	)		(1,091	)		(14,425	)		(72,197	)

Net investment income (loss)		(356,743	)		(55,506	)		(575,020	)		73,853			(1,957	)		(74,415	)		(508,996	)

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		7,694,266			1,692,417			11,576,385			6,539,929			323,890			1,571,981			8,572,523
Cost of investments sold		(7,551,466	)		(1,256,948	)		(10,482,606	)		(6,770,143	)		(302,073	)		(1,399,123	)		(8,079,146	)

Net realized gain (loss) on investments		142,800			435,469			1,093,779			(230,214	)		21,817			172,858			493,377
Realized gain distribution received		3,145,554			386,795			3,202,744			856,919			—			439,712			2,284,953
Change in unrealized appreciation (depreciation) on investments		3,068,895			391,478			5,202,763			2,065,884			95,331			966,530			5,485,240

Net gain (loss) on investments		6,357,249			1,213,742			9,499,286			2,692,589			117,148			1,579,100			8,263,570

Net increase (decrease) in net assets resulting from operations	$	6,000,506		$	1,158,236		$	8,924,266		$	2,766,442		$	115,191		$	1,504,685		$	7,754,574

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	Morgan Stanley VIF U.S. Real Estate Portfolio— Class II			Neuberger Berman AMT Mid Cap Growth Portfolio— Class I			Neuberger Berman AMT Mid Cap Growth Portfolio— Class S			PIMCO VIT Income Portfolio— Advisor Class			PIMCO VIT International Bond Portfolio (U.S. Dollar- Hedged)— Advisor Class			PIMCO VIT Low Duration Portfolio— Advisor Class			PIMCO VIT Total Return Portfolio— Advisor Class
INVESTMENT INCOME (LOSS):
Dividend income	$	388,067		$	—		$	—		$	1,167,502		$	1,664,862		$	1,356,870		$	4,618,080
Mortality and expense risk charges		(237,848	)		(18,133	)		(923,802	)		(239,684	)		(895,931	)		(463,633	)		(1,707,851	)
Administrative charges		(20,347	)		(2,247	)		(93,370	)		(41,772	)		(128,582	)		(49,926	)		(273,244	)

Net investment income (loss)		129,872			(20,380	)		(1,017,172	)		886,046			640,349			843,311			2,636,985

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		5,951,195			208,824			15,302,386			3,641,690			18,342,441			10,380,504			31,909,166
Cost of investments sold		(7,790,165	)		(188,139	)		(19,603,843	)		(3,898,454	)		(20,976,550	)		(10,976,492	)		(38,411,002	)

Net realized gain (loss) on investments		(1,838,970	)		20,685			(4,301,457	)		(256,764	)		(2,634,109	)		(595,988	)		(6,501,836	)
Realized gain distribution received		—			—			—			—			1,810,889			—			—
Change in unrealized appreciation (depreciation) on investments		4,076,357			203,424			16,180,841			1,002,640			4,800,832			1,090,960			9,396,626

Net gain (loss) on investments		2,237,387			224,109			11,879,384			745,876			3,977,612			494,972			2,894,790

Net increase (decrease) in net assets resulting from operations	$	2,367,259		$	203,729		$	10,862,212		$	1,631,922		$	4,617,961		$	1,338,283		$	5,531,775

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Operations (Continued)

For the year ended December 31, 2023


	Western Asset Core Plus VIT Portfolio— Class II
INVESTMENT INCOME (LOSS):
Dividend income	$	53,472
Mortality and expense risk charges		(10,990	)
Administrative charges		(3,103	)

Net investment income (loss)		39,379

REALIZED AND UNREALIZED GAIN (LOSS):
Proceeds from sale of investments		1,134,701
Cost of investments sold		(1,153,290	)

Net realized gain (loss) on investments		(18,589	)
Realized gain distribution received		—
Change in unrealized appreciation (depreciation) on investments		50,404

Net gain (loss) on investments		31,815

Net increase (decrease) in net assets resulting from operations	$	71,194

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP American Century Sustainable Equity— Initial Class						MainStay VP American Century Sustainable Equity— Service Class						MainStay VP Balanced— Service Class						MainStay VP Bond— Initial Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(62,368	)	$	70,609		$	(344,270	)	$	(144,642	)	$	302,137		$	(844,342	)	$	285,596		$	110,131
Net realized gain (loss) on investments		(1,405,753	)		(1,416	)		(2,954,461	)		293,998			(3,738,566	)		1,216,793			(789,348	)		(549,589	)
Realized gain distribution received		11,621,525			4,105,767			21,151,108			7,603,982			—			22,279,601			—			—
Change in unrealized appreciation/(depreciation) on investments		(2,900,155	)		(7,978,093	)		(4,822,776	)		(14,862,782	)		9,985,179			(32,519,377	)		1,356,288			(4,510,655	)

Net increase (decrease) in net assets resulting from operations		7,253,249			(3,803,133	)		13,029,601			(7,109,444	)		6,548,750			(9,867,325	)		852,536			(4,950,113	)

Contributions and (withdrawals):
Payments received from policyowners		133,277			184,274			1,958,419			1,577,891			8,728,075			11,592,752			112,464			784,178
Policyowners’ surrenders		(4,455,477	)		(2,909,374	)		(10,941,068	)		(8,982,759	)		(13,403,479	)		(12,484,473	)		(3,170,509	)		(1,999,091	)
Policyowners’ annuity and death benefits		(1,232,268	)		(773,548	)		(623,411	)		(1,137,261	)		(1,878,688	)		(2,298,304	)		(533,099	)		(793,945	)
Net transfers from (to) Fixed Account		(1,514,744	)		(402,460	)		209,193			(11,676	)		4,150,615			3,114,167			(178,819	)		(401,801	)
Transfers between Investment Divisions		(473,740	)		(832,212	)		(2,326,432	)		(3,043,370	)		(3,666,150	)		(1,570,355	)		229,387			(938,776	)

Net contributions and (withdrawals)		(7,542,952	)		(4,733,320	)		(11,723,299	)		(11,597,175	)		(6,069,627	)		(1,646,213	)		(3,540,576	)		(3,349,435	)

Increase (decrease) in net assets		(289,703	)		(8,536,453	)		1,306,302			(18,706,619	)		479,123			(11,513,538	)		(2,688,040	)		(8,299,548	)
NET ASSETS:
Beginning of period		35,058,759			43,595,212			64,259,197			82,965,816			119,142,075			130,655,613			23,834,004			32,133,552

End of period	$	34,769,056		$	35,058,759		$	65,565,499		$	64,259,197		$	119,621,198		$	119,142,075		$	21,145,964		$	23,834,004

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP Bond— Service Class						MainStay VP Candriam Emerging Markets Equity— Initial Class						MainStay VP Candriam Emerging Markets Equity— Service Class						MainStay VP CBRE Global Infrastructure— Service Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	1,124,058		$	106,950		$	16,846		$	(45,408	)	$	(39,595	)	$	(279,962	)	$	19,011		$	(15,934	)
Net realized gain (loss) on investments		(3,331,920	)		(2,676,007	)		(374,176	)		(112,076	)		(1,007,651	)		279,661			(174,306	)		(727,612	)
Realized gain distribution received		—			—			—			1,100,049			—			3,885,534			—			—
Change in unrealized appreciation/(depreciation) on investments		5,795,557			(17,618,980	)		738,268			(4,102,070	)		2,351,686			(14,764,892	)		372,509			(356,029	)

Net increase (decrease) in net assets resulting from operations		3,587,695			(20,188,037	)		380,938			(3,159,505	)		1,304,440			(10,879,659	)		217,214			(1,099,575	)

Contributions and (withdrawals):
Payments received from policyowners		4,843,306			4,680,741			46,055			81,409			393,154			582,187			774,018			1,516,617
Policyowners’ surrenders		(13,064,162	)		(11,467,488	)		(756,996	)		(479,890	)		(3,735,022	)		(3,452,883	)		(858,920	)		(1,193,109	)
Policyowners’ annuity and death benefits		(1,087,721	)		(1,669,462	)		(153,898	)		(161,707	)		(199,371	)		(225,407	)		(120,335	)		(39,147	)
Net transfers from (to) Fixed Account		1,005,085			1,464,811			(40,761	)		(119,425	)		(44,678	)		11,219			819,727			1,010,833
Transfers between Investment Divisions		3,093,354			(4,695,741	)		(70,541	)		140,436			528,420			2,927,276			(543,587	)		3,022,288

Net contributions and (withdrawals)		(5,210,138	)		(11,687,139	)		(976,141	)		(539,177	)		(3,057,497	)		(157,608	)		70,903			4,317,482

Increase (decrease) in net assets		(1,622,443	)		(31,875,176	)		(595,203	)		(3,698,682	)		(1,753,057	)		(11,037,267	)		288,117			3,217,907
NET ASSETS:
Beginning of period		99,293,395			131,168,571			7,118,845			10,817,527			25,582,180			36,619,447			8,648,385			5,430,478

End of period	$	97,670,952		$	99,293,395		$	6,523,642		$	7,118,845		$	23,829,123		$	25,582,180		$	8,936,502		$	8,648,385

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP Conservative Allocation— Service Class						MainStay VP Epoch U.S. Equity Yield— Initial Class						MainStay VP Epoch U.S. Equity Yield— Service Class						MainStay VP Equity Allocation— Service Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	2,133,985		$	5,482,792		$	966,432		$	553,044		$	1,443,446		$	637,443		$	4,781,862		$	1,903,395
Net realized gain (loss) on investments		(6,360,494	)		(164,930	)		664,870			2,402,228			3,349,482			4,222,916			(5,388,873	)		1,048,026
Realized gain distribution received		5,885,727			19,299,748			5,206,457			2,040,222			9,860,417			3,797,739			12,876,453			22,320,750
Change in unrealized appreciation/(depreciation) on investments		12,623,953			(56,694,812	)		(1,343,443	)		(9,181,166	)		(4,831,266	)		(15,750,093	)		7,122,245			(59,409,605	)

Net increase (decrease) in net assets resulting from operations		14,283,171			(32,077,202	)		5,494,316			(4,185,672	)		9,822,079			(7,091,995	)		19,391,687			(34,137,434	)

Contributions and (withdrawals):
Payments received from policyowners		3,712,049			5,705,580			346,857			873,885			8,868,767			6,874,774			3,659,660			4,925,573
Policyowners’ surrenders		(28,324,643	)		(26,396,817	)		(8,554,301	)		(6,776,506	)		(20,519,069	)		(15,396,319	)		(16,798,593	)		(13,375,432	)
Policyowners’ annuity and death benefits		(3,633,231	)		(3,379,680	)		(1,966,126	)		(1,894,900	)		(1,398,774	)		(1,537,110	)		(723,519	)		(1,007,051	)
Net transfers from (to) Fixed Account		3,583,720			6,269,189			(346,567	)		(754,359	)		2,367,689			2,226,013			619,016			(176,331	)
Transfers between Investment Divisions		(3,566,641	)		(5,289,346	)		(531,828	)		(1,557,861	)		(8,078,346	)		1,734,690			(2,983,176	)		(4,509,205	)

Net contributions and (withdrawals)		(28,228,746	)		(23,091,074	)		(11,051,965	)		(10,109,741	)		(18,759,733	)		(6,097,952	)		(16,226,612	)		(14,142,446	)

Increase (decrease) in net assets		(13,945,575	)		(55,168,276	)		(5,557,649	)		(14,295,413	)		(8,937,654	)		(13,189,947	)		3,165,075			(48,279,880	)
NET ASSETS:
Beginning of period		188,130,081			243,298,357			87,745,591			102,041,004			162,034,873			175,224,820			135,658,712			183,938,592

End of period	$	174,184,506		$	188,130,081		$	82,187,942		$	87,745,591		$	153,097,219		$	162,034,873		$	138,823,787		$	135,658,712

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP Fidelity Institutional AM^® Utilities— Initial Class						MainStay VP Fidelity Institutional AM^® Utilities— Service Class						MainStay VP Floating Rate— Service Class						MainStay VP Growth Allocation— Service Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	3,007		$	3,556		$	622,187		$	888,781		$	13,350,241		$	5,303,973		$	5,529,070		$	4,549,765
Net realized gain (loss) on investments		970			14,031			86,008			8,663,167			(2,122,229	)		(2,398,557	)		(11,413,324	)		(1,280,020	)
Realized gain distribution received		99,619			36,575			36,523,104			14,705,690			—			—			17,345,135			38,474,219
Change in unrealized appreciation/(depreciation) on investments		(117,075	)		(25,231	)		(46,838,328	)		(13,773,151	)		7,957,190			(7,909,588	)		21,217,398			(97,346,943	)

Net increase (decrease) in net assets resulting from operations		(13,479	)		28,931			(9,607,029	)		10,484,487			19,185,202			(5,004,172	)		32,678,279			(55,602,979	)

Contributions and (withdrawals):
Payments received from policyowners		—			—			10,068,967			11,457,071			17,718,780			18,232,748			8,730,843			8,150,436
Policyowners’ surrenders		(9,096	)		(15,935	)		(38,403,723	)		(30,642,011	)		(28,196,264	)		(24,556,439	)		(38,579,012	)		(34,293,952	)
Policyowners’ annuity and death benefits		(16,690	)		(3,905	)		(3,140,029	)		(3,390,751	)		(3,024,835	)		(2,186,935	)		(3,114,328	)		(3,393,118	)
Net transfers from (to) Fixed Account		688			718			4,040,680			3,663,094			8,367,917			9,408,632			503,587			51,075
Transfers between Investment Divisions		111,526			(37,001	)		944,662			(10,518,924	)		23,205,442			27,256,846			(5,093,334	)		(6,307,061	)

Net contributions and (withdrawals)		86,428			(56,123	)		(26,489,443	)		(29,431,521	)		18,071,040			28,154,852			(37,552,244	)		(35,792,620	)

Increase (decrease) in net assets		72,949			(27,192	)		(36,096,472	)		(18,947,034	)		37,256,242			23,150,680			(4,873,965	)		(91,395,599	)
NET ASSETS:
Beginning of period		728,503			755,695			289,998,116			308,945,150			180,642,699			157,492,019			265,556,222			356,951,821

End of period	$	801,452		$	728,503		$	253,901,644		$	289,998,116		$	217,898,941		$	180,642,699		$	260,682,257		$	265,556,222

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP Income Builder— Initial Class						MainStay VP Income Builder— Service Class						MainStay VP IQ Hedge Multi- Strategy— Service Class						MainStay VP Janus Henderson Balanced— Initial Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	720,437		$	587,247		$	2,090,293		$	1,416,294		$	1,232,879		$	(3,578	)	$	(93,341	)	$	(527,847	)
Net realized gain (loss) on investments		(1,741,574	)		(428,021	)		(4,626,071	)		(1,348,706	)		(1,288	)		(69,941	)		4,747,266			5,193,864
Realized gain distribution received		—			4,223,024			—			12,292,661			—			—			4,767,625			9,999,508
Change in unrealized appreciation/(depreciation) on investments		4,143,724			(12,256,350	)		12,292,879			(34,461,595	)		2,222,906			(5,523,723	)		7,153,326			(44,370,220	)

Net increase (decrease) in net assets resulting from operations		3,122,587			(7,874,100	)		9,757,101			(22,101,346	)		3,454,497			(5,597,242	)		16,574,876			(29,704,695	)

Contributions and (withdrawals):
Payments received from policyowners		200,258			354,419			7,981,345			11,249,321			1,332,952			1,299,744			764,064			789,355
Policyowners’ surrenders		(4,852,141	)		(3,630,594	)		(12,438,667	)		(12,219,819	)		(5,993,707	)		(5,866,286	)		(13,668,976	)		(9,747,091	)
Policyowners’ annuity and death benefits		(1,466,110	)		(978,854	)		(1,551,840	)		(1,039,438	)		(468,318	)		(682,468	)		(3,598,126	)		(3,094,119	)
Net transfers from (to) Fixed Account		(106,100	)		(513,787	)		3,058,359			4,485,665			536,316			309,974			(501,081	)		(1,450,335	)
Transfers between Investment Divisions		(13,000	)		(10,249	)		(3,021,119	)		(4,044,504	)		(152,872	)		(2,484,129	)		14,748			(1,025,138	)

Net contributions and (withdrawals)		(6,237,093	)		(4,779,065	)		(5,971,922	)		(1,568,775	)		(4,745,629	)		(7,423,165	)		(16,989,371	)		(14,527,328	)

Increase (decrease) in net assets		(3,114,506	)		(12,653,165	)		3,785,179			(23,670,121	)		(1,291,132	)		(13,020,407	)		(414,495	)		(44,232,023	)
NET ASSETS:
Beginning of period		41,398,420			54,051,585			123,568,392			147,238,513			44,467,743			57,488,150			128,570,519			172,802,542

End of period	$	38,283,914		$	41,398,420		$	127,353,571		$	123,568,392		$	43,176,611		$	44,467,743		$	128,156,024		$	128,570,519

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP Janus Henderson Balanced— Service Class						MainStay VP MacKay Convertible— Initial Class						MainStay VP MacKay Convertible— Service Class						MainStay VP MacKay Government— Initial Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(317,053	)	$	(1,814,383	)	$	390,512		$	1,252,292		$	1,454,537		$	4,747,509		$	129,104		$	57,855
Net realized gain (loss) on investments		748,272			5,652,372			775,376			2,351,828			535,808			9,304,405			(466,774	)		(405,913	)
Realized gain distribution received		16,057,242			26,675,579			—			7,098,407			—			31,274,164			—			—
Change in unrealized appreciation/(depreciation) on investments		34,483,385			(100,764,470	)		2,723,085			(21,388,509	)		16,667,219			(91,156,335	)		810,730			(2,138,680	)

Net increase (decrease) in net assets resulting from operations		50,971,846			(70,250,902	)		3,888,973			(10,685,982	)		18,657,564			(45,830,257	)		473,060			(2,486,738	)

Contributions and (withdrawals):
Payments received from policyowners		57,862,577			70,488,492			310,302			699,427			18,986,310			19,260,186			88,687			127,234
Policyowners’ surrenders		(39,751,737	)		(27,231,608	)		(6,568,429	)		(5,327,404	)		(28,394,373	)		(28,970,461	)		(1,821,585	)		(1,646,403	)
Policyowners’ annuity and death benefits		(4,897,874	)		(4,610,156	)		(1,407,995	)		(1,536,242	)		(3,005,300	)		(3,913,848	)		(440,110	)		(539,580	)
Net transfers from (to) Fixed Account		14,182,293			20,578,162			(159,039	)		(1,848,955	)		12,104,134			13,748,757			21,668			(359,973	)
Transfers between Investment Divisions		15,627,061			(16,464,182	)		(220,499	)		(2,074,211	)		6,367,824			(20,976,378	)		(29,808	)		269,467

Net contributions and (withdrawals)		43,022,320			42,760,708			(8,045,660	)		(10,087,385	)		6,058,595			(20,851,744	)		(2,181,148	)		(2,149,255	)

Increase (decrease) in net assets		93,994,166			(27,490,194	)		(4,156,687	)		(20,773,367	)		24,716,159			(66,682,001	)		(1,708,088	)		(4,635,993	)
NET ASSETS:
Beginning of period		353,279,628			380,769,822			58,294,405			79,067,772			261,220,848			327,902,849			15,653,363			20,289,356

End of period	$	447,273,794		$	353,279,628		$	54,137,718		$	58,294,405		$	285,937,007		$	261,220,848		$	13,945,275		$	15,653,363

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP MacKay Government— Service Class						MainStay VP MacKay High Yield Corporate Bond— Initial Class						MainStay VP MacKay High Yield Corporate Bond— Service Class						MainStay VP MacKay Strategic Bond— Service Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	350,929		$	(4,974	)	$	4,066,066		$	4,370,787		$	25,990,686		$	23,397,919		$	4,310,603		$	2,561,448
Net realized gain (loss) on investments		(1,737,824	)		(1,360,400	)		(2,021,689	)		(1,779,721	)		(12,183,549	)		(10,242,042	)		(2,290,989	)		(1,960,594	)
Realized gain distribution received		—			—			—			—			—			—			—			—
Change in unrealized appreciation/(depreciation) on investments		2,973,371			(6,849,997	)		7,568,003			(14,975,841	)		45,390,221			(84,388,256	)		8,616,230			(15,945,944	)

Net increase (decrease) in net assets resulting from operations		1,586,476			(8,215,371	)		9,612,380			(12,384,775	)		59,197,358			(71,232,379	)		10,635,844			(15,345,090	)

Contributions and (withdrawals):
Payments received from policyowners		1,775,526			1,942,793			329,710			929,927			35,500,075			32,893,753			6,709,130			4,851,178
Policyowners’ surrenders		(7,316,226	)		(5,528,568	)		(15,588,084	)		(10,445,137	)		(76,009,406	)		(66,989,602	)		(19,696,992	)		(19,702,387	)
Policyowners’ annuity and death benefits		(882,754	)		(920,003	)		(3,635,535	)		(4,313,471	)		(8,257,317	)		(11,765,058	)		(1,488,148	)		(1,880,307	)
Net transfers from (to) Fixed Account		1,949,092			568,969			(1,164,732	)		(2,249,635	)		15,052,518			19,504,436			1,496,535			894,211
Transfers between Investment Divisions		1,929,888			(3,546,208	)		(293,615	)		(598,622	)		8,922,842			(40,029,837	)		599,845			(11,083,202	)

Net contributions and (withdrawals)		(2,544,474	)		(7,483,017	)		(20,352,256	)		(16,676,938	)		(24,791,288	)		(66,386,308	)		(12,379,630	)		(26,920,507	)

Increase (decrease) in net assets		(957,998	)		(15,698,388	)		(10,739,876	)		(29,061,713	)		34,406,070			(137,618,687	)		(1,743,786	)		(42,265,597	)
NET ASSETS:
Beginning of period		52,045,055			67,743,443			105,326,515			134,388,228			612,170,453			749,789,140			137,333,833			179,599,430

End of period	$	51,087,057		$	52,045,055		$	94,586,639		$	105,326,515		$	646,576,523		$	612,170,453		$	135,590,047		$	137,333,833

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP Moderate Allocation— Service Class						MainStay VP Natural Resources— Initial Class						MainStay VP PIMCO Real Return— Service Class						MainStay VP PineStone International Equity— Initial Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	3,518,591		$	5,363,772		$	676,739		$	(506,247	)	$	6,087,733		$	3,984,451		$	(195,125	)	$	(196,338	)
Net realized gain (loss) on investments		(9,781,294	)		(1,846,962	)		13,006,784			15,449,495			(1,689,320	)		1,014,891			(1,065,312	)		(77,062	)
Realized gain distribution received		11,782,513			33,109,807			—			—			—			—			—			2,897,838
Change in unrealized appreciation/(depreciation) on investments		21,634,130			(87,179,114	)		(12,821,517	)		16,276,719			(2,772,764	)		(18,709,489	)		1,623,554			(8,533,212	)

Net increase (decrease) in net assets resulting from operations		27,153,940			(50,552,497	)		862,006			31,219,967			1,625,649			(13,710,147	)		363,117			(5,908,774	)

Contributions and (withdrawals):
Payments received from policyowners		9,478,330			10,146,370			4,928,300			7,941,015			4,506,676			6,012,215			65,507			164,486
Policyowners’ surrenders		(35,384,500	)		(27,687,674	)		(14,290,016	)		(11,961,439	)		(10,172,484	)		(9,175,695	)		(1,628,707	)		(1,282,907	)
Policyowners’ annuity and death benefits		(3,488,378	)		(5,632,365	)		(1,501,980	)		(1,696,328	)		(1,071,213	)		(959,155	)		(443,329	)		(398,828	)
Net transfers from (to) Fixed Account		4,537,718			2,530,591			3,642,410			3,281,748			2,794,009			4,882,486			268,145			(149,306	)
Transfers between Investment Divisions		(5,032,586	)		(2,444,388	)		(13,919,926	)		2,582,042			(615,591	)		(5,943,253	)		(279,984	)		7,408

Net contributions and (withdrawals)		(29,889,416	)		(23,087,466	)		(21,141,212	)		147,038			(4,558,603	)		(5,183,402	)		(2,018,368	)		(1,659,147	)

Increase (decrease) in net assets		(2,735,476	)		(73,639,963	)		(20,279,206	)		31,367,005			(2,932,954	)		(18,893,549	)		(1,655,251	)		(7,567,921	)
NET ASSETS:
Beginning of period		262,928,908			336,568,871			123,568,040			92,201,035			89,857,839			108,751,388			14,098,336			21,666,257

End of period	$	260,193,432		$	262,928,908		$	103,288,834		$	123,568,040		$	86,924,885		$	89,857,839		$	12,443,085		$	14,098,336

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP PineStone International Equity— Service Class						MainStay VP S&P 500 Index— Initial Class						MainStay VP S&P 500 Index— Service Class						MainStay VP Small Cap Growth— Initial Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(981,917	)	$	(1,113,374	)	$	(148,579	)	$	(87,070	)	$	(970,097	)	$	(1,233,393	)	$	(494,963	)	$	(563,444	)
Net realized gain (loss) on investments		(4,983,197	)		(854,019	)		18,110,921			16,626,560			27,506,793			25,653,855			(774,637	)		766,123
Realized gain distribution received		—			13,835,042			2,565,256			5,579,242			9,168,399			16,034,877			113,836			8,760,789
Change in unrealized appreciation/(depreciation) on investments		7,814,314			(37,603,161	)		16,724,169			(64,356,535	)		86,716,849			(149,994,005	)		5,325,188			(22,276,563	)

Net increase (decrease) in net assets resulting from operations		1,849,200			(25,735,512	)		37,251,767			(42,237,803	)		122,421,944			(109,538,666	)		4,169,424			(13,313,095	)

Contributions and (withdrawals):
Payments received from policyowners		2,592,707			3,025,121			726,098			966,863			92,051,053			70,922,501			222,540			293,983
Policyowners’ surrenders		(7,913,667	)		(6,464,916	)		(18,009,505	)		(12,356,758	)		(55,673,136	)		(37,456,371	)		(4,707,040	)		(2,593,393	)
Policyowners’ annuity and death benefits		(740,252	)		(834,225	)		(4,226,519	)		(4,197,661	)		(3,730,200	)		(4,384,425	)		(404,117	)		(728,156	)
Net transfers from (to) Fixed Account		593,036			578,464			(483,867	)		(1,309,386	)		24,167,751			23,012,012			(158,484	)		(355,665	)
Transfers between Investment Divisions		1,588,336			5,554,696			537,821			(1,732,384	)		5,497,995			(5,349,241	)		(73,818	)		873,077

Net contributions and (withdrawals)		(3,879,840	)		1,859,140			(21,455,972	)		(18,629,326	)		62,313,463			46,744,476			(5,120,919	)		(2,510,154	)

Increase (decrease) in net assets		(2,030,640	)		(23,876,372	)		15,795,795			(60,867,129	)		184,735,407			(62,794,190	)		(951,495	)		(15,823,249	)
NET ASSETS:
Beginning of period		67,968,861			91,845,233			163,252,949			224,120,078			482,716,948			545,511,138			32,922,710			48,745,959

End of period	$	65,938,221		$	67,968,861		$	179,048,744		$	163,252,949		$	667,452,355		$	482,716,948		$	31,971,215		$	32,922,710

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP Small Cap Growth— Service Class						MainStay VP U.S. Government Money Market— Initial Class						MainStay VP Wellington Growth— Initial Class						MainStay VP Wellington Growth— Service Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(476,232	)	$	(511,637	)	$	6,475,186		$	(158,676	)	$	(1,002,578	)	$	(1,086,068	)	$	(280,540	)	$	(308,640	)
Net realized gain (loss) on investments		(2,568,501	)		(206,244	)		18			28			(2,588,369	)		(185,035	)		(919,051	)		69,091
Realized gain distribution received		138,729			8,676,497			—			—			—			21,344,339			—			5,762,593
Change in unrealized appreciation/(depreciation) on investments		7,381,369			(20,668,795	)		(18	)		(28	)		25,038,744			(54,667,089	)		6,748,560			(14,632,124	)

Net increase (decrease) in net assets resulting from operations		4,475,365			(12,710,179	)		6,475,186			(158,676	)		21,447,797			(34,593,853	)		5,548,969			(9,109,080	)

Contributions and (withdrawals):
Payments received from policyowners		3,806,081			1,898,180			27,375,431			10,695,159			310,795			449,174			145,844			161,142
Policyowners’ surrenders		(3,342,592	)		(2,992,072	)		(61,598,550	)		(63,625,834	)		(6,236,529	)		(5,731,143	)		(2,210,659	)		(1,769,103	)
Policyowners’ annuity and death benefits		(471,208	)		(509,622	)		(2,575,350	)		(2,065,261	)		(1,409,664	)		(1,647,684	)		(203,342	)		(278,600	)
Net transfers from (to) Fixed Account		753,296			1,337,231			7,918,515			(231,232	)		(208,826	)		(755,758	)		(93,828	)		(124,648	)
Transfers between Investment Divisions		1,804,489			(1,912,240	)		(4,370,431	)		134,738,807			(403,425	)		(386,966	)		(520,595	)		755,092

Net contributions and (withdrawals)		2,550,066			(2,178,523	)		(33,250,385	)		79,511,639			(7,947,649	)		(8,072,377	)		(2,882,580	)		(1,256,117	)

Increase (decrease) in net assets		7,025,431			(14,888,702	)		(26,775,199	)		79,352,963			13,500,148			(42,666,230	)		2,666,389			(10,365,197	)
NET ASSETS:
Beginning of period		31,636,694			46,525,396			217,453,537			138,100,574			61,761,040			104,427,270			16,494,755			26,859,952

End of period	$	38,662,125		$	31,636,694		$	190,678,338		$	217,453,537		$	75,261,188		$	61,761,040		$	19,161,144		$	16,494,755

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP Wellington Mid Cap— Initial Class						MainStay VP Wellington Mid Cap— Service Class						MainStay VP Wellington Small Cap— Initial Class						MainStay VP Wellington Small Cap— Service Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(416,450	)	$	(525,594	)	$	(1,943,791	)	$	(2,155,876	)	$	(95,954	)	$	(71,232	)	$	(609,548	)	$	(528,916	)
Net realized gain (loss) on investments		(4,253,697	)		(931,479	)		(15,734,561	)		(4,069,336	)		(1,325,861	)		(111,819	)		(5,245,061	)		(450,755	)
Realized gain distribution received		—			13,217,597			—			55,479,396			—			4,451,516			—			19,032,536
Change in unrealized appreciation/(depreciation) on investments		8,122,473			(21,269,902	)		32,541,207			(87,293,009	)		3,121,826			(9,018,283	)		13,606,850			(38,191,683	)

Net increase (decrease) in net assets resulting from operations		3,452,326			(9,509,378	)		14,862,855			(38,038,825	)		1,700,011			(4,749,818	)		7,752,241			(20,138,818	)

Contributions and (withdrawals):
Payments received from policyowners		330,652			238,528			5,654,891			4,852,268			279,682			154,257			4,513,479			2,415,561
Policyowners’ surrenders		(3,430,024	)		(2,694,811	)		(14,619,348	)		(12,118,237	)		(1,756,796	)		(1,398,185	)		(9,907,022	)		(7,450,190	)
Policyowners’ annuity and death benefits		(970,148	)		(714,719	)		(1,356,422	)		(1,540,287	)		(682,007	)		(197,987	)		(660,370	)		(745,607	)
Net transfers from (to) Fixed Account		224,085			(365,350	)		1,299,379			1,844,313			288,286			(188,720	)		603,994			597,575
Transfers between Investment Divisions		(803,099	)		(198,130	)		(579,134	)		588,586			(94,643	)		(534,567	)		1,850,524			(1,233,422	)

Net contributions and (withdrawals)		(4,648,534	)		(3,734,482	)		(9,600,634	)		(6,373,357	)		(1,965,478	)		(2,165,202	)		(3,599,395	)		(6,416,083	)

Increase (decrease) in net assets		(1,196,208	)		(13,243,860	)		5,262,221			(44,412,182	)		(265,467	)		(6,915,020	)		4,152,846			(26,554,901	)
NET ASSETS:
Beginning of period		31,555,560			44,799,420			131,081,269			175,493,451			15,671,354			22,586,374			66,744,522			93,299,423

End of period	$	30,359,352		$	31,555,560		$	136,343,490		$	131,081,269		$	15,405,887		$	15,671,354		$	70,897,368		$	66,744,522

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MainStay VP Wellington U.S. Equity— Initial Class						MainStay VP Wellington U.S. Equity— Service Class						MainStay VP Winslow Large Cap Growth— Initial Class						MainStay VP Winslow Large Cap Growth— Service Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(321,362	)	$	(588,472	)	$	(474,943	)	$	(727,607	)	$	(618,061	)	$	(664,198	)	$	(3,572,590	)	$	(3,509,331	)
Net realized gain (loss) on investments		(61,168	)		3,805,133			(2,182,401	)		51,169			584,279			1,488,930			(7,641,864	)		1,715,328
Realized gain distribution received		—			13,319,524			—			12,591,776			1,576,549			10,255,685			10,531,646			60,559,989
Change in unrealized appreciation/(depreciation) on investments		14,001,905			(35,754,484	)		15,916,519			(29,106,637	)		13,005,886			(31,019,199	)		86,077,394			(157,510,806	)

Net increase (decrease) in net assets resulting from operations		13,619,375			(19,218,299	)		13,259,175			(17,191,299	)		14,548,653			(19,938,782	)		85,394,586			(98,744,820	)

Contributions and (withdrawals):
Payments received from policyowners		280,850			384,711			4,016,080			3,309,891			156,831			374,518			20,685,430			18,092,612
Policyowners’ surrenders		(6,111,022	)		(5,216,986	)		(7,152,496	)		(4,637,078	)		(4,734,538	)		(3,083,277	)		(24,367,431	)		(18,778,592	)
Policyowners’ annuity and death benefits		(1,671,922	)		(1,545,732	)		(738,198	)		(688,120	)		(1,329,917	)		(762,069	)		(2,332,140	)		(3,212,622	)
Net transfers from (to) Fixed Account		163,578			(1,071,586	)		1,213,946			1,796,904			(25,783	)		(757,934	)		7,390,626			12,866,723
Transfers between Investment Divisions		(932,599	)		(552,078	)		(1,543,343	)		(112,473	)		276,095			(1,238,233	)		(17,289,050	)		5,666,299

Net contributions and (withdrawals)		(8,271,115	)		(8,001,671	)		(4,204,011	)		(330,876	)		(5,657,312	)		(5,466,995	)		(15,912,565	)		14,634,420

Increase (decrease) in net assets		5,348,260			(27,219,970	)		9,055,164			(17,522,175	)		8,891,341			(25,405,777	)		69,482,021			(84,110,400	)
NET ASSETS:
Beginning of period		63,476,613			90,696,583			60,476,435			77,998,610			38,111,691			63,517,468			216,396,425			300,506,825

End of period	$	68,824,873		$	63,476,613		$	69,531,599		$	60,476,435		$	47,003,032		$	38,111,691		$	285,878,446		$	216,396,425

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	AB VPS Relative Value Portfolio— Class B						American Funds IS Asset Allocation Fund— Class 4						American Funds IS The Bond Fund of America^®— Class 4						American Funds IS Global Small Capitalization Fund— Class 4
	2023			2022 (a)			2023			2022			2023			2022 (a)			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	39,683		$	3,492		$	1,055,682		$	482,664		$	154,937		$	44,172		$	(185,535	)	$	(185,968	)
Net realized gain (loss) on investments		(2,938	)		(80,648	)		(1,206,699	)		494,593			(37,920	)		(10,266	)		(1,076,009	)		(714,351	)
Realized gain distribution received		618,931			185,324			4,988,212			11,570,572			—			1,767			181,931			4,474,589
Change in unrealized appreciation/(depreciation) on investments		226,098			38,139			11,034,835			(30,244,554	)		124,039			(85,522	)		3,023,186			(8,534,211	)

Net increase (decrease) in net assets resulting from operations		881,774			146,307			15,872,030			(17,696,725	)		241,056			(49,849	)		1,943,573			(4,959,941	)

Contributions and (withdrawals):
Payments received from policyowners		3,714,823			1,759,470			18,719,804			19,281,346			2,261,323			1,283,247			1,194,828			1,340,375
Policyowners’ surrenders		(470,298	)		(26,807	)		(10,142,061	)		(5,784,465	)		(783,577	)		(56,751	)		(1,135,651	)		(921,200	)
Policyowners’ annuity and death benefits		(62,649	)		—			(1,343,088	)		(1,380,830	)		(59,356	)		(9,825	)		(81,062	)		(81,425	)
Net transfers from (to) Fixed Account		985,606			437,434			6,822,590			12,078,691			958,566			578,075			800,401			922,804
Transfers between Investment Divisions		2,660,454			887,242			994,947			(2,988,390	)		1,917,409			639,314			64,691			1,430,124

Net contributions and (withdrawals)		6,827,936			3,057,339			15,052,192			21,206,352			4,294,365			2,434,060			843,207			2,690,678

Increase (decrease) in net assets		7,709,710			3,203,646			30,924,222			3,509,627			4,535,421			2,384,211			2,786,780			(2,269,263	)
NET ASSETS:
Beginning of period		3,203,646			—			117,206,718			113,697,091			2,384,211			—			13,060,799			15,330,062

End of period	$	10,913,356		$	3,203,646		$	148,130,940		$	117,206,718		$	6,919,632		$	2,384,211		$	15,847,579		$	13,060,799

(a) For the period May 1, 2022 (commencement of Investment Division) through December 31, 2022.

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	American Funds IS Growth Fund— Class 4						American Funds IS New World Fund^®— Class 4						American Funds IS Washington Mutual Investors Fund^SM— Class 4						BlackRock^® Global Allocation V.I. Fund— Class III
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(1,358,052	)	$	(817,729	)	$	(94,033	)	$	(181,977	)	$	545,490		$	368,480		$	1,304,942		$	(1,661,418	)
Net realized gain (loss) on investments		(186,131	)		412,199			74,856			(39,686	)		(74,894	)		1,262,356			(2,963,589	)		(2,800,909	)
Realized gain distribution received		6,707,595			8,573,395			—			4,430,058			1,039,454			18,126,970			—			1,725,757
Change in unrealized appreciation/(depreciation) on investments		32,339,641			(31,418,280	)		6,350,067			(17,690,874	)		15,387,487			(27,939,835	)		13,337,278			(18,996,272	)

Net increase (decrease) in net assets resulting from operations		37,503,053			(23,250,415	)		6,330,890			(13,482,479	)		16,897,537			(8,182,029	)		11,678,631			(21,732,842	)

Contributions and (withdrawals):
Payments received from policyowners		64,849,932			27,889,548			3,630,387			2,844,612			27,115,843			17,052,804			12,164,467			13,988,426
Policyowners’ surrenders		(6,928,675	)		(4,318,424	)		(4,668,466	)		(3,859,405	)		(8,011,830	)		(5,280,047	)		(13,178,341	)		(12,397,286	)
Policyowners’ annuity and death benefits		(346,165	)		(236,252	)		(421,581	)		(337,729	)		(887,660	)		(662,683	)		(911,295	)		(1,150,418	)
Net transfers from (to) Fixed Account		10,035,203			7,164,034			962,654			1,115,660			6,641,136			7,489,714			4,196,392			5,761,687
Transfers between Investment Divisions		1,541,391			2,176,509			(1,758,207	)		3,344,005			(566,386	)		(1,210,308	)		(1,100,998	)		433,134

Net contributions and (withdrawals)		69,151,686			32,675,415			(2,255,213	)		3,107,143			24,291,103			17,389,480			1,170,225			6,635,543

Increase (decrease) in net assets		106,654,739			9,425,000			4,075,677			(10,375,336	)		41,188,640			9,207,451			12,848,856			(15,097,299	)
NET ASSETS:
Beginning of period		77,013,185			67,588,185			46,387,773			56,763,109			93,039,348			83,831,897			106,592,459			121,689,758

End of period	$	183,667,924		$	77,013,185		$	50,463,450		$	46,387,773		$	134,227,988		$	93,039,348		$	119,441,315		$	106,592,459

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	BlackRock^® High Yield V.I. Fund— Class III						BNY Mellon IP Technology Growth Portfolio— Initial Shares						BNY Mellon IP Technology Growth Portfolio— Service Shares						BNY Mellon Sustainable U.S. Equity Portfolio— Service Shares
	2023			2022			2023			2022			2023			2022			2023			2022 (a)
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	4,222,741		$	2,904,516		$	(253,574	)	$	(268,785	)	$	(2,013,884	)	$	(1,908,747	)	$	(7,943	)	$	(1,796	)
Net realized gain (loss) on investments		(1,432,156	)		(1,102,998	)		(158,525	)		(262,168	)		(2,420,263	)		(2,997,211	)		(8,626	)		(244	)
Realized gain distribution received		—			—			—			1,792,136			—			13,503,679			83,643			—
Change in unrealized appreciation/(depreciation) on investments		6,641,160			(12,585,928	)		7,890,325			(14,173,189	)		67,761,359			(98,126,374	)		143,881			(16,329	)

Net increase (decrease) in net assets resulting from operations		9,431,745			(10,784,410	)		7,478,226			(12,912,006	)		63,327,212			(89,528,653	)		210,955			(18,369	)

Contributions and (withdrawals):
Payments received from policyowners		8,999,743			7,774,766			107,738			238,991			13,011,379			10,432,678			348,695			245,208
Policyowners’ surrenders		(9,209,683	)		(7,119,992	)		(1,442,450	)		(1,422,324	)		(14,880,833	)		(9,555,692	)		(94,291	)		(11,103	)
Policyowners’ annuity and death benefits		(872,991	)		(625,402	)		(604,576	)		(334,446	)		(1,453,405	)		(1,531,744	)		—			—
Net transfers from (to) Fixed Account		5,842,614			7,525,499			66,047			(256,084	)		6,498,626			7,333,529			222,368			137,211
Transfers between Investment Divisions		2,428,016			(6,767,908	)		1,661,557			110,341			(786,390	)		10,935,285			357,356			187,500

Net contributions and (withdrawals)		7,187,699			786,963			(211,684	)		(1,663,522	)		2,389,377			17,614,056			834,128			558,816

Increase (decrease) in net assets		16,619,444			(9,997,447	)		7,266,542			(14,575,528	)		65,716,589			(71,914,597	)		1,045,083			540,447
NET ASSETS:
Beginning of period		79,685,346			89,682,793			13,457,965			28,033,493			111,217,536			183,132,133			540,447			—

End of period	$	96,304,790		$	79,685,346		$	20,724,507		$	13,457,965		$	176,934,125		$	111,217,536		$	1,585,530		$	540,447

(a) For the period May 1, 2022 (commencement of Investment Division) through December 31, 2022.

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	ClearBridge Variable Appreciation Portfolio— Class II						Columbia Variable Portfolio— Commodity Strategy Fund— Class 2						Columbia Variable Portfolio— Emerging Markets Bond Fund— Class 2						Columbia Variable Portfolio— Intermediate Bond Fund— Class 2
	2023			2022			2023			2022			2023			2022			2023			2022 (a)
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(120,166	)	$	(110,697	)	$	258,038		$	356,123		$	1,254,009		$	931,330		$	4,469		$	2,372
Net realized gain (loss) on investments		530,442			482,496			(35,766	)		126,453			(1,382,951	)		(971,288	)		(6,727	)		(1,300	)
Realized gain distribution received		574,374			887,628			—			—			—			—			—			84
Change in unrealized appreciation/(depreciation) on investments		2,235,117			(3,973,950	)		(331,066	)		(186,307	)		2,855,420			(7,432,528	)		56,553			(11,724	)

Net increase (decrease) in net assets resulting from operations		3,219,767			(2,714,523	)		(108,794	)		296,269			2,726,478			(7,472,486	)		54,295			(10,568	)

Contributions and (withdrawals):
Payments received from policyowners		1,778,244			1,733,091			9,601			20,729			863,967			751,249			537,535			47,726
Policyowners’ surrenders		(1,648,471	)		(1,105,516	)		(177,193	)		(170,910	)		(2,826,531	)		(2,602,733	)		(40,610	)		(9,420	)
Policyowners’ annuity and death benefits		(44,229	)		(216,716	)		—			—			(294,584	)		(203,221	)		—			—
Net transfers from (to) Fixed Account		700,937			892,312			4,896			18,440			472,350			504,259			320,066			111,023
Transfers between Investment Divisions		343,536			(612,492	)		73,137			(375,366	)		(544,336	)		530,796			156,839			130,662

Net contributions and (withdrawals)		1,130,017			690,679			(89,559	)		(507,107	)		(2,329,134	)		(1,019,650	)		973,830			279,991

Increase (decrease) in net assets		4,349,784			(2,023,844	)		(198,353	)		(210,838	)		397,344			(8,492,136	)		1,028,125			269,423
NET ASSETS:
Beginning of period		17,879,143			19,902,987			1,336,407			1,547,245			34,288,719			42,780,855			269,423			—

End of period	$	22,228,927		$	17,879,143		$	1,138,054		$	1,336,407		$	34,686,063		$	34,288,719		$	1,297,548		$	269,423

(a) For the period May 1, 2022 (commencement of Investment Division) through December 31, 2022.

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	Columbia Variable Portfolio— Small Cap Value Fund— Class 2						Delaware VIP^® Small Cap Value Series— Service Class						DWS Alternative Asset Allocation VIP— Class B						Fidelity^® VIP Bond Index Portfolio— Service Class 2
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(383,833	)	$	(405,099	)	$	(101,581	)	$	(128,885	)	$	3,136,938		$	3,723,701		$	408,200		$	(22,228	)
Net realized gain (loss) on investments		(5,661,141	)		(1,094,777	)		(179,776	)		574,100			(324,769	)		843,763			(1,254,072	)		(1,333,598	)
Realized gain distribution received		2,921,385			15,372,826			609,993			1,022,177			574,456			68,808			—			—
Change in unrealized appreciation/(depreciation) on investments		10,670,512			(18,745,815	)		979,084			(3,721,371	)		(840,926	)		(11,206,543	)		2,580,028			(6,555,977	)

Net increase (decrease) in net assets resulting from operations		7,546,923			(4,872,865	)		1,307,720			(2,253,979	)		2,545,699			(6,570,271	)		1,734,156			(7,911,803	)

Contributions and (withdrawals):
Payments received from policyowners		3,615,508			2,963,030			1,329,930			2,254,244			1,660,777			3,276,184			4,802,097			3,711,230
Policyowners’ surrenders		(4,789,484	)		(3,867,843	)		(1,074,366	)		(827,732	)		(5,495,886	)		(4,661,955	)		(3,947,295	)		(2,958,107	)
Policyowners’ annuity and death benefits		(686,842	)		(417,472	)		(68,203	)		(128,226	)		(599,189	)		(403,012	)		(468,915	)		(362,393	)
Net transfers from (to) Fixed Account		1,116,239			702,368			1,327,593			1,195,235			885,429			1,335,817			1,608,895			1,903,423
Transfers between Investment Divisions		(816,938	)		(2,667,536	)		(56,874	)		(2,812,132	)		521,764			(2,785,191	)		1,600,039			(3,770,313	)

Net contributions and (withdrawals)		(1,561,517	)		(3,287,453	)		1,458,080			(318,611	)		(3,027,105	)		(3,238,157	)		3,594,821			(1,476,160	)

Increase (decrease) in net assets		5,985,406			(8,160,318	)		2,765,800			(2,572,590	)		(481,406	)		(9,808,428	)		5,328,977			(9,387,963	)
NET ASSETS:
Beginning of period		38,491,207			46,651,525			13,816,343			16,388,933			63,981,360			73,789,788			45,746,428			55,134,391

End of period	$	44,476,613		$	38,491,207		$	16,582,143		$	13,816,343		$	63,499,954		$	63,981,360		$	51,075,405		$	45,746,428

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	Fidelity^® VIP Contrafund^SM Portfolio— Initial Class						Fidelity^® VIP Contrafund^SM Portfolio— Service Class 2						Fidelity^® VIP Emerging Markets Portfolio— Service Class 2						Fidelity^® VIP Equity-Income Portfolio^SM— Initial Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(1,140,273	)	$	(1,202,854	)	$	(4,348,245	)	$	(4,489,704	)	$	113,056		$	31,358		$	159,152		$	179,169
Net realized gain (loss) on investments		4,025,379			5,727,247			18,503,477			9,418,451			(1,781,394	)		(511,485	)		600,161			549,751
Realized gain distribution received		4,089,609			5,872,717			12,999,743			17,686,986			—			—			1,153,407			1,503,569
Change in unrealized appreciation/(depreciation) on investments		25,175,598			(54,594,681	)		68,894,020			(145,532,319	)		2,525,093			(2,453,129	)		1,670,493			(5,517,004	)

Net increase (decrease) in net assets resulting from operations		32,150,313			(44,197,571	)		96,048,995			(122,916,586	)		856,755			(2,933,256	)		3,583,213			(3,284,515	)

Contributions and (withdrawals):
Payments received from policyowners		613,416			752,484			22,796,874			18,284,732			2,027,238			1,607,156			216,719			275,917
Policyowners’ surrenders		(12,688,175	)		(8,227,841	)		(46,821,431	)		(34,943,305	)		(876,037	)		(829,168	)		(4,614,981	)		(3,159,436	)
Policyowners’ annuity and death benefits		(2,787,848	)		(2,812,425	)		(3,011,200	)		(3,023,527	)		(115,505	)		(54,734	)		(1,111,924	)		(905,466	)
Net transfers from (to) Fixed Account		(162,944	)		(1,009,966	)		8,613,541			10,625,769			512,535			1,132,322			(103,505	)		(386,532	)
Transfers between Investment Divisions		(1,015,768	)		(1,319,427	)		(17,147,732	)		7,189,271			369,576			173,322			(721,272	)		(74,950	)

Net contributions and (withdrawals)		(16,041,319	)		(12,617,175	)		(35,569,948	)		(1,867,060	)		1,917,807			2,028,898			(6,334,963	)		(4,250,467	)

Increase (decrease) in net assets		16,108,994			(56,814,746	)		60,479,047			(124,783,646	)		2,774,562			(904,358	)		(2,751,750	)		(7,534,982	)
NET ASSETS:
Beginning of period		108,370,068			165,184,814			322,649,536			447,433,182			12,754,091			13,658,449			44,297,948			51,832,930

End of period	$	124,479,062		$	108,370,068		$	383,128,583		$	322,649,536		$	15,528,653		$	12,754,091		$	41,546,198		$	44,297,948

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	Fidelity^® VIP Equity-Income Portfolio^SM— Service Class 2						Fidelity^® VIP FundsManager^® 60% Portfolio— Investor Class						Fidelity^® VIP FundsManager^® 60% Portfolio— Service Class						Fidelity^® VIP Government Money Market Portfolio— Investor Class
	2023			2022			2023			2022			2023			2022			2023		2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	600,099		$	455,638		$	4,385,434		$	242,806		$	454,151		$	152,861		$	—	$	(829	)
Net realized gain (loss) on investments		2,465,670			2,405,681			(83,693	)		(217,116	)		(554,557	)		(640,249	)		—		—
Realized gain distribution received		4,565,343			5,100,288			—			120,303,257			—			4,065,223			—		—
Change in unrealized appreciation/(depreciation) on investments		5,333,754			(17,920,535	)		94,266,448			(258,858,130	)		4,245,676			(8,127,738	)		—		—

Net increase (decrease) in net assets resulting from operations		12,964,866			(9,958,928	)		98,568,189			(138,529,183	)		4,145,270			(4,549,903	)		—		(829	)

Contributions and (withdrawals):
Payments received from policyowners		13,222,386			13,957,859			52,712,343			182,553,244			7,442,285			6,621,072			—		699,981
Policyowners’ surrenders		(16,570,312	)		(11,867,734	)		(9,623,070	)		(5,406,313	)		(2,017,750	)		(1,535,007	)		—		—
Policyowners’ annuity and death benefits		(1,384,521	)		(2,110,703	)		(4,890,366	)		(1,675,887	)		(279,518	)		(109,735	)		—		—
Net transfers from (to) Fixed Account		6,631,685			5,984,233			—			—			1,859,702			2,722,700			—		—
Transfers between Investment Divisions		(1,704,375	)		243,511			—			699,152			2,608,411			(787,145	)		—		(699,152	)

Net contributions and (withdrawals)		194,863			6,207,166			38,198,907			176,170,196			9,613,130			6,911,885			—		829

Increase (decrease) in net assets		13,159,729			(3,751,762	)		136,767,096			37,641,013			13,758,400			2,361,982			—		—
NET ASSETS:
Beginning of period		146,348,958			150,100,720			798,095,221			760,454,208			28,198,482			25,836,500			—		—

End of period	$	159,508,687		$	146,348,958		$	934,862,317		$	798,095,221		$	41,956,882		$	28,198,482		$	—	$	—

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	Fidelity^® VIP Growth Opportunities Portfolio— Service Class 2						Fidelity^® VIP Health Care Portfolio— Service Class 2						Fidelity^® VIP International Index Portfolio— Service Class 2						Fidelity^® VIP Investment Grade Bond Portfolio— Service Class 2
	2023			2022			2023			2022			2023			2022			2023			2022 (a)
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(2,730,415	)	$	(2,538,142	)	$	(764,240	)	$	(734,044	)	$	369,993		$	124,406		$	86,967		$	23,328
Net realized gain (loss) on investments		(1,431,369	)		(2,599,446	)		(899,781	)		(1,670,553	)		26,597			(59,049	)		(32,869	)		(1,077	)
Realized gain distribution received		—			32,344,759			—			3,230,112			—			—			—			—
Change in unrealized appreciation/(depreciation) on investments		73,445,650			(118,277,685	)		3,294,808			(8,697,018	)		2,067,915			(1,662,050	)		100,454			(29,150	)

Net increase (decrease) in net assets resulting from operations		69,283,866			(91,070,514	)		1,630,787			(7,871,503	)		2,464,505			(1,596,693	)		154,552			(6,899	)

Contributions and (withdrawals):
Payments received from policyowners		22,718,539			19,466,751			5,723,752			7,205,189			8,283,761			4,645,063			2,781,396			576,379
Policyowners’ surrenders		(17,493,547	)		(12,705,937	)		(4,087,778	)		(4,214,958	)		(940,891	)		(452,271	)		(272,454	)		(33,426	)
Policyowners’ annuity and death benefits		(1,794,544	)		(1,137,576	)		(534,714	)		(308,347	)		(56,181	)		(76,733	)		(357	)		(7,753	)
Net transfers from (to) Fixed Account		11,441,464			14,784,442			4,719,088			6,385,141			1,849,002			978,105			633,525			310,144
Transfers between Investment Divisions		4,245,117			(278,009	)		3,262,090			(5,883,883	)		1,335,125			107,549			700,389			439,548

Net contributions and (withdrawals)		19,117,029			20,129,671			9,082,438			3,183,142			10,470,816			5,201,713			3,842,499			1,284,892

Increase (decrease) in net assets		88,400,895			(70,940,843	)		10,713,225			(4,688,361	)		12,935,321			3,605,020			3,997,051			1,277,993
NET ASSETS:
Beginning of period		152,397,900			223,338,743			53,373,812			58,062,173			12,039,869			8,434,849			1,277,993			—

End of period	$	240,798,795		$	152,397,900		$	64,087,037		$	53,373,812		$	24,975,190		$	12,039,869		$	5,275,044		$	1,277,993

(a) For the period May 1, 2022 (commencement of Investment Division) through December 31, 2022.

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	Fidelity^® VIP Mid Cap Portfolio— Service Class 2						Franklin Templeton Aggressive Model Portfolio— Class II						Franklin Templeton Conservative Model Portfolio— Class II						Franklin Templeton Moderate Model Portfolio— Class II
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(1,228,020	)	$	(1,487,889	)	$	(116,092	)	$	1,117,005		$	1,282,198		$	587,918		$	2,634,900		$	4,620,483
Net realized gain (loss) on investments		902,932			1,125,712			(39,018	)		239,842			(1,847,268	)		(1,477,896	)		(1,657,082	)		(418,808	)
Realized gain distribution received		3,389,510			8,327,920			548,727			2,645,622			—			90,553			1,376,222			2,711,504
Change in unrealized appreciation/(depreciation) on investments		11,677,623			(31,205,932	)		17,006,111			(15,461,155	)		4,683,476			(6,403,606	)		42,952,559			(54,660,375	)

Net increase (decrease) in net assets resulting from operations		14,742,045			(23,240,189	)		17,399,728			(11,458,686	)		4,118,406			(7,203,031	)		45,306,599			(47,747,196	)

Contributions and (withdrawals):
Payments received from policyowners		8,263,283			6,098,399			29,979,558			28,475,527			9,832,507			6,980,953			69,256,432			67,833,494
Policyowners’ surrenders		(15,862,657	)		(11,080,445	)		(7,055,518	)		(2,862,439	)		(4,538,523	)		(7,504,750	)		(21,416,751	)		(14,599,501	)
Policyowners’ annuity and death benefits		(1,318,320	)		(999,448	)		(1,251,869	)		(17,874	)		(753,522	)		(15,318	)		(1,462,750	)		(2,013,318	)
Net transfers from (to) Fixed Account		2,508,006			2,943,508			12,537,615			14,368,148			6,741,978			5,400,649			58,639,967			61,194,725
Transfers between Investment Divisions		703,384			(4,739,431	)		353,856			3,744,919			(2,596,461	)		9,764,899			(3,897,443	)		50,115

Net contributions and (withdrawals)		(5,706,304	)		(7,777,417	)		34,563,642			43,708,281			8,685,979			14,626,433			101,119,455			112,465,515

Increase (decrease) in net assets		9,035,741			(31,017,606	)		51,963,370			32,249,595			12,804,385			7,423,402			146,426,054			64,718,319
NET ASSETS:
Beginning of period		115,157,127			146,174,733			84,897,307			52,647,712			53,493,419			46,070,017			328,983,641			264,265,322

End of period	$	124,192,868		$	115,157,127		$	136,860,677		$	84,897,307		$	66,297,804		$	53,493,419		$	475,409,695		$	328,983,641

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	Franklin Templeton Moderately Aggressive Model Portfolio— Class II						Franklin Templeton Moderately Conservative Model Portfolio— Class II						Invesco V.I. EQV International Equity Fund— Series II Shares						Invesco V.I. Main Street Small Cap Fund^®— Series II Shares
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	693,643		$	2,894,446		$	2,003,832		$	1,568,448		$	(431,651	)	$	(24,596	)	$	(24,980	)	$	(88,286	)
Net realized gain (loss) on investments		(688,772	)		(220,227	)		(2,237,223	)		(876,503	)		(1,946,760	)		(539,289	)		(636,831	)		(249,248	)
Realized gain distribution received		1,239,683			4,162,660			—			343,142			22,104			3,378,309			—			1,140,554
Change in unrealized appreciation/(depreciation) on investments		40,642,391			(45,761,591	)		12,798,773			(18,879,914	)		6,739,825			(9,746,543	)		2,816,057			(2,155,813	)

Net increase (decrease) in net assets resulting from operations		41,886,945			(38,924,712	)		12,565,382			(17,844,827	)		4,383,518			(6,932,119	)		2,154,246			(1,352,793	)

Contributions and (withdrawals):
Payments received from policyowners		74,122,524			59,488,364			17,890,422			20,920,682			1,362,543			1,128,450			3,081,110			2,232,615
Policyowners’ surrenders		(18,447,696	)		(12,219,122	)		(10,403,250	)		(5,690,921	)		(3,609,603	)		(2,763,734	)		(1,063,143	)		(365,206	)
Policyowners’ annuity and death benefits		(1,471,043	)		(2,241,355	)		(1,836,251	)		(1,039,028	)		(238,139	)		(335,514	)		(143,961	)		(28,535	)
Net transfers from (to) Fixed Account		41,750,490			44,315,473			15,819,097			23,610,841			607,963			943,717			1,246,050			2,088,751
Transfers between Investment Divisions		(5,096,103	)		479,045			(1,614,816	)		(649,685	)		(317,772	)		720,437			1,762,212			690,579

Net contributions and (withdrawals)		90,858,172			89,822,405			19,855,202			37,151,889			(2,195,008	)		(306,644	)		4,882,268			4,618,204

Increase (decrease) in net assets		132,745,117			50,897,693			32,420,584			19,307,062			2,188,510			(7,238,763	)		7,036,514			3,265,411
NET ASSETS:
Beginning of period		249,078,611			198,180,918			129,398,005			110,090,943			28,359,472			35,598,235			9,915,605			6,650,194

End of period	$	381,823,728		$	249,078,611		$	161,818,589		$	129,398,005		$	30,547,982		$	28,359,472		$	16,952,119		$	9,915,605

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	Janus Henderson Enterprise Portfolio— Service Shares						Janus Henderson Global Research Portfolio— Institutional Shares						Janus Henderson Global Research Portfolio— Service Shares						MFS^® International Intrinsic Value Portfolio— Service Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(514,846	)	$	(479,315	)	$	(233,754	)	$	(190,711	)	$	(223,144	)	$	(194,066	)	$	(356,743	)	$	(353,860	)
Net realized gain (loss) on investments		(701,769	)		(308,474	)		2,583,906			2,454,347			1,172,759			1,065,332			142,800			(307,072	)
Realized gain distribution received		3,115,983			6,113,046			1,250,623			5,196,668			1,093,562			3,928,503			3,145,554			1,715,794
Change in unrealized appreciation/(depreciation) on investments		4,504,380			(12,241,863	)		6,235,452			(19,168,548	)		6,291,801			(13,288,599	)		3,068,895			(12,600,688	)

Net increase (decrease) in net assets resulting from operations		6,403,748			(6,916,606	)		9,836,227			(11,708,244	)		8,334,978			(8,488,830	)		6,000,506			(11,545,826	)

Contributions and (withdrawals):
Payments received from policyowners		6,419,968			5,276,924			238,933			424,256			2,863,800			2,750,616			3,926,012			3,788,077
Policyowners’ surrenders		(3,944,205	)		(2,639,493	)		(3,726,099	)		(3,204,280	)		(4,339,598	)		(3,004,966	)		(3,288,604	)		(2,629,612	)
Policyowners’ annuity and death benefits		(379,067	)		(140,725	)		(1,205,360	)		(761,315	)		(285,470	)		(294,264	)		(233,413	)		(270,587	)
Net transfers from (to) Fixed Account		2,922,292			3,591,772			(5,297	)		(620,180	)		2,021,719			1,333,929			1,341,442			2,178,074
Transfers between Investment Divisions		3,459,140			(3,849,976	)		(345,938	)		(418,422	)		294,209			187,558			(717,750	)		382,081

Net contributions and (withdrawals)		8,478,128			2,238,502			(5,043,761	)		(4,579,941	)		554,660			972,873			1,027,687			3,448,033

Increase (decrease) in net assets		14,881,876			(4,678,104	)		4,792,466			(16,288,185	)		8,889,638			(7,515,957	)		7,028,193			(8,097,793	)
NET ASSETS:
Beginning of period		35,643,426			40,321,530			41,646,882			57,935,067			33,394,856			40,910,813			37,841,990			45,939,783

End of period	$	50,525,302		$	35,643,426		$	46,439,348		$	41,646,882		$	42,284,494		$	33,394,856		$	44,870,183		$	37,841,990

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MFS^® Investors Trust Series— Initial Class						MFS^® Investors Trust Series— Service Class						MFS^® Mid Cap Value Portfolio— Service Class						MFS^® Research International Portfolio— Service Class
	2023			2022			2023			2022			2023			2022			2023			2022 (a)
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(55,506	)	$	(65,989	)	$	(575,020	)	$	(676,607	)	$	73,853		$	(130,082	)	$	(1,957	)	$	5,326
Net realized gain (loss) on investments		435,469			245,983			1,093,779			1,586,081			(230,214	)		874,309			21,817			(2,006	)
Realized gain distribution received		386,795			1,055,429			3,202,744			7,900,014			856,919			1,702,954			—			11,041
Change in unrealized appreciation/(depreciation) on investments		391,478			(2,964,591	)		5,202,763			(21,561,574	)		2,065,884			(4,703,678	)		95,331			6,092

Net increase (decrease) in net assets resulting from operations		1,158,236			(1,729,168	)		8,924,266			(12,752,086	)		2,766,442			(2,256,497	)		115,191			20,453

Contributions and (withdrawals):
Payments received from policyowners		36,885			19,366			1,932,815			1,697,705			4,147,554			3,561,670			507,866			301,752
Policyowners’ surrenders		(947,169	)		(511,888	)		(5,571,309	)		(4,061,916	)		(2,500,909	)		(1,654,065	)		(84,476	)		(17,768	)
Policyowners’ annuity and death benefits		(522,021	)		(123,627	)		(414,076	)		(430,787	)		(206,736	)		(239,197	)		(360	)		—
Net transfers from (to) Fixed Account		2,505			(36,245	)		763,522			608,887			1,706,856			1,596,811			139,748			62,451
Transfers between Investment Divisions		(79,831	)		(92,178	)		(2,142,062	)		(2,322,698	)		225,135			(1,920,911	)		412,152			214,420

Net contributions and (withdrawals)		(1,509,631	)		(744,572	)		(5,431,110	)		(4,508,809	)		3,371,900			1,344,308			974,930			560,855

Increase (decrease) in net assets		(351,395	)		(2,473,740	)		3,493,156			(17,260,895	)		6,138,342			(912,189	)		1,090,121			581,308
NET ASSETS:
Beginning of period		7,502,653			9,976,393			55,323,287			72,584,182			22,020,892			22,933,081			581,308			—

End of period	$	7,151,258		$	7,502,653		$	58,816,443		$	55,323,287		$	28,159,234		$	22,020,892		$	1,671,429		$	581,308

(a) For the period May 1, 2022 (commencement of Investment Division) through December 31, 2022.

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	MFS^® Research Series— Initial Class						MFS^® Research Series— Service Class						Morgan Stanley VIF U.S. Real Estate Portfolio— Class II						Neuberger Berman AMT Mid Cap Growth Portfolio— Class I
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(74,415	)	$	(82,333	)	$	(508,996	)	$	(583,148	)	$	129,872		$	(104,437	)	$	(20,380	)	$	(22,820	)
Net realized gain (loss) on investments		172,858			268,095			493,377			898,525			(1,838,970	)		(594,444	)		20,685			25,167
Realized gain distribution received		439,712			1,067,015			2,284,953			5,699,545			—			4,286,215			—			261,826
Change in unrealized appreciation/(depreciation) on investments		966,530			(3,128,735	)		5,485,240			(15,909,879	)		4,076,357			(10,279,478	)		203,424			(839,667	)

Net increase (decrease) in net assets resulting from operations		1,504,685			(1,875,958	)		7,754,574			(9,894,957	)		2,367,259			(6,692,144	)		203,729			(575,494	)

Contributions and (withdrawals):
Payments received from policyowners		43,946			58,852			1,752,888			1,075,005			3,103,193			2,140,725			—			(16,744	)
Policyowners’ surrenders		(940,843	)		(487,786	)		(4,113,055	)		(3,321,273	)		(2,345,440	)		(1,777,029	)		(77,731	)		(49,990	)
Policyowners’ annuity and death benefits		(195,514	)		(78,566	)		(406,518	)		(368,674	)		(93,550	)		(320,048	)		(15,628	)		(12,262	)
Net transfers from (to) Fixed Account		(41,433	)		(250,897	)		407,993			761,343			1,141,063			1,291,891			753			933
Transfers between Investment Divisions		(53,155	)		(166,533	)		(1,589,556	)		(1,940,198	)		(706,437	)		(934,165	)		(1,301	)		(10,916	)

Net contributions and (withdrawals)		(1,186,999	)		(924,930	)		(3,948,248	)		(3,793,797	)		1,098,829			401,374			(93,907	)		(88,979	)

Increase (decrease) in net assets		317,686			(2,800,888	)		3,806,326			(13,688,754	)		3,466,088			(6,290,770	)		109,822			(664,473	)
NET ASSETS:
Beginning of period		7,772,053			10,572,941			40,028,248			53,717,002			17,982,340			24,273,110			1,271,259			1,935,732

End of period	$	8,089,739		$	7,772,053		$	43,834,574		$	40,028,248		$	21,448,428		$	17,982,340		$	1,381,081		$	1,271,259

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	Neuberger Berman AMT Mid Cap Growth Portfolio— Class S						PIMCO VIT Income Portfolio— Advisor Class						PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)— Advisor Class						PIMCO VIT Low Duration Portfolio— Advisor Class
	2023			2022			2023			2022			2023			2022			2023			2022
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	(1,017,172	)	$	(1,090,826	)	$	886,046		$	348,364		$	640,349		$	(145,797	)	$	843,311		$	75,698
Net realized gain (loss) on investments		(4,301,457	)		(429,259	)		(256,764	)		(372,565	)		(2,634,109	)		(1,966,213	)		(595,988	)		(441,754	)
Realized gain distribution received		—			14,835,516			—			1,295			1,810,889			30,345			—			—
Change in unrealized appreciation/(depreciation) on investments		16,180,841			(41,720,894	)		1,002,640			(1,423,608	)		4,800,832			(7,758,177	)		1,090,960			(1,935,550	)

Net increase (decrease) in net assets resulting from operations		10,862,212			(28,405,463	)		1,631,922			(1,446,514	)		4,617,961			(9,839,842	)		1,338,283			(2,301,606	)

Contributions and (withdrawals):
Payments received from policyowners		5,726,451			4,017,894			6,351,127			4,015,089			2,377,618			2,100,719			3,583,097			3,533,184
Policyowners’ surrenders		(8,576,759	)		(6,813,259	)		(1,737,667	)		(1,078,298	)		(9,006,193	)		(7,526,586	)		(4,293,442	)		(3,575,100	)
Policyowners’ annuity and death benefits		(907,368	)		(915,811	)		(87,190	)		(108,398	)		(696,838	)		(1,015,120	)		(413,494	)		(247,765	)
Net transfers from (to) Fixed Account		1,954,931			2,105,443			2,617,592			2,878,274			578,446			1,387,667			3,790,152			4,758,098
Transfers between Investment Divisions		5,991,925			(609,241	)		4,094,098			(2,531,968	)		864,551			(7,560,588	)		951,289			2,258,802

Net contributions and (withdrawals)		4,189,180			(2,214,974	)		11,237,960			3,174,699			(5,882,416	)		(12,613,908	)		3,617,602			6,727,219

Increase (decrease) in net assets		15,051,392			(30,620,437	)		12,869,882			1,728,185			(1,264,455	)		(22,453,750	)		4,955,885			4,425,613
NET ASSETS:
Beginning of period		64,245,442			94,865,879			17,290,672			15,562,487			67,669,791			90,123,541			36,284,968			31,859,355

End of period	$	79,296,834		$	64,245,442		$	30,160,554		$	17,290,672		$	66,405,336		$	67,669,791		$	41,240,853		$	36,284,968

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Statement of Changes in Net Assets (Continued)

For the years ended December 31, 2023

and December 31, 2022


	PIMCO VIT Total Return Portfolio— Advisor Class						Western Asset Core Plus VIT Portfolio— Class II
	2023			2022			2023			2022 (a)
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)	$	2,636,985		$	1,402,538		$	39,379		$	15,462
Net realized gain (loss) on investments		(6,501,836	)		(3,987,343	)		(18,589	)		(892	)
Realized gain distribution received		—			—			—			—
Change in unrealized appreciation/(depreciation) on investments		9,396,626			(23,366,763	)		50,404			(30,324	)

Net increase (decrease) in net assets resulting from operations		5,531,775			(25,951,568	)		71,194			(15,754	)

Contributions and (withdrawals):
Payments received from policyowners		9,486,422			7,470,193			326,628			550,675
Policyowners’ surrenders		(15,080,215	)		(11,705,895	)		(557,742	)		(8,034	)
Policyowners’ annuity and death benefits		(1,605,272	)		(1,258,942	)		(22,165	)		—
Net transfers from (to) Fixed Account		2,919,702			3,775,785			232,179			289,153
Transfers between Investment Divisions		3,544,620			(10,665,007	)		251,472			411,258

Net contributions and (withdrawals)		(734,743	)		(12,383,866	)		230,372			1,243,052

Increase (decrease) in net assets		4,797,032			(38,335,434	)		301,566			1,227,298
NET ASSETS:
Beginning of period		132,110,402			170,445,836			1,227,298			—

End of period	$	136,907,434		$	132,110,402		$	1,528,864		$	1,227,298

(a) For the period May 1, 2022 (commencement of Investment Division) through December 31, 2022.

Not all investment divisions are available under all policies.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements

NOTE 1—Organization and Significant Accounting Policies:

NYLIAC Variable Annuity Separate Account-III (the “Separate Account”) was established on November 30, 1994, under Delaware law by New York Life Insurance and Annuity Corporation (“NYLIAC”), a wholly-owned subsidiary of New York Life Insurance Company (“NYLIC”). The Separate Account funds Series I policies (New York Life Variable Annuity, New York Life Flexible Premium Variable Annuity, New York Life Plus Variable Annuity and New York Life Flexible Premium Variable Annuity II), Series II policies (New York Life Access Variable Annuity), Series III policies (New York Life Premium Plus Variable Annuity), Series IV policies (New York Life Essentials Variable Annuity and New York Life Plus II Variable Annuity), Series V policies (New York Life Select Variable Annuity), Series VI policies (New York Life Premium Plus II Variable Annuity), Series VII policies (New York Life Complete Access Variable Annuity), Series VIII policies (New York Life Premier Variable Annuity), Series IX policies (New York Life Premier Plus Variable Annuity), Series X policies (New York Life Income Plus Variable Annuity), Series XI policies (New York Life Premier Variable Annuity II), Series XII policies (New York Life Premier Plus Variable Annuity II), Series XIII policies (New York Life Complete Access Variable Annuity II), Series XIV policies (New York Life Flexible Premium Variable Annuity III), Series XV policies (New York Life Income Plus Variable Annuity II), Series XVI policies (New York Life Premier Variable Annuity—FP Series), Series XVII policies (New York Life Premier Variable Annuity—P Series), Series XVIII policies (New York Life IndexFlex Variable Annuity and New York Life IndexFlex Variable Annuity—FP Series) and Series XIX policies (New York Life Premier Advisory Variable Annuity). Effective December 4, 2006, sales of the New York Life Variable Annuity and New York Life Plus Variable Annuity were discontinued. Sales of the Series II policies formerly known as MainStay Access Variable Annuity were discontinued effective October 14, 2002. Effective January 1, 2009, sales of all Series III, IV, V and VI policies formerly known as MainStay Variable Annuities were discontinued. Effective July 27, 2009, sales of Series V policies known as New York Life Select Variable Annuity were discontinued. Effective August 16, 2010, sales of all the remaining Series II, Series III, Series IV and Series VI policies were discontinued. Effective July 16, 2012 sales of the New York Life Flexible Premium Variable Annuity were discontinued. Effective February 12, 2016, sales of the Series X policies (New York Life Income Plus Variable Annuity) and Series XV policies (New York Life Income Plus II Variable Annuity) were discontinued. Effective May 1, 2015, sales of the Series VII policies (New York Life Complete Access Variable Annuity), the remaining Series I policies (New York Life Flexible Premium Variable Annuity II), Series VIII policies (New York Life Premier Variable Annuity) and Series IX policies (New York Life Premier Plus Variable Annuity) were discontinued. Effective May 1, 2020, sales of the Series XIII policies (New York Life Complete Access Variable Annuity II) were discontinued.

NYLIAC established the Separate Account to receive and invest premium payments under Non-Qualified Deferred and Tax-Qualified Deferred Flexible Premium Variable Annuity Policies issued by NYLIAC. The Non-Qualified policies are designed to establish retirement benefits to provide individuals with supplemental retirement income. The Qualified policies are designed to establish retirement benefits for individuals who participate in tax-qualified pension, profit sharing or annuity plans. The policies are distributed by NYLIFE Distributors LLC and sold by registered representatives of NYLIFE Securities LLC, as well as certain banking and financial institutions that have entered into selling agreements with NYLIAC and registered representatives of unaffiliated broker-dealers. NYLIFE Securities LLC and NYLIFE Distributors LLC are both indirect, wholly-owned subsidiaries of NYLIC. The Separate Account is registered under the Investment Company Act of 1940, as amended, as a unit investment trust that follows the accounting and reporting guidance under ASC 946.

The assets of the Separate Account are invested in shares of eligible portfolios of the MainStay VP Funds Trust, the AB Variable Products Series Fund, Inc., the AIM Variable Insurance Funds, the American Funds Insurance Series, the BlackRock^® Variable Series Funds, Inc., the BlackRock^® Variable Series Funds II, Inc., the BNY Mellon Investment Portfolios, the Columbia Funds Variable Insurance Trust, the Columbia Funds Variable Series Trust II, the Delaware VIP^® Trust, the Deutsche DWS Variable Series II, the Fidelity Variable Insurance Products Fund, the Janus Aspen Series, the Legg Mason Partners Variable Equity Trust, the Legg Mason Partners Variable Income Trust, the MFS^® Variable Insurance Trust, the MFS^® Variable Insurance Trust II, the MFS^® Variable Insurance Trust III, the Morgan Stanley Variable Insurance Fund, Inc., the Neuberger Berman Advisers Management Trust and the PIMCO Variable Insurance Trust, (collectively “Funds”). These assets are clearly identified and distinguished from the other assets and liabilities of NYLIAC. These assets are the property of NYLIAC; however, the portion of the assets attributable to the policies will not be charged with liabilities arising out of any other business NYLIAC may conduct. The Fixed Account and the Dollar Cost Averaging (DCA) Advantage Accounts represent a portion of the general account assets of NYLIAC and are not included in this report. NYLIAC’s Fixed Account and the DCA Advantage Accounts may be charged with liabilities arising out of other business NYLIAC may conduct.

The MainStay VP U.S. Government Money Market—Initial Class, MainStay VP Natural Resources—Initial Class and Fidelity^® VIP Government Money Market Portfolio—Investor Class offer one class of shares under this Separate Account which are presented within the initial class section. MainStay VP Balanced—Service Class, MainStay VP CBRE Global Infrastructure—Service Class, MainStay VP Conservative Allocation—Service Class, MainStay VP Equity Allocation—Service Class, MainStay VP Floating Rate—Service Class, MainStay VP Growth Allocation—Service Class, MainStay VP IQ Hedge Multi-Strategy—Service Class, MainStay VP MacKay Strategic Bond—Service Class, MainStay VP Moderate Allocation—Service Class, MainStay VP PIMCO Real Return—Service Class, AB VPS

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 1—Organization and Significant Accounting Policies (Continued):

Relative Value Portfolio—Class B, American Funds IS Asset Allocation Fund—Class 4, American Funds IS The Bond Fund of America^®—Class 4, American Funds IS Global Small Capitalization Fund—Class 4, American Funds IS Growth Fund—Class 4, American Funds IS New World Fund^®—Class 4, American Funds IS Washington Mutual Investors FundSM—Class 4, BlackRock^® Global Allocation V.I. Fund—Class III, BlackRock^® High Yield V.I. Fund—Class III, BNY Mellon Sustainable U.S. Equity Portfolio—Service Shares, ClearBridge Variable Appreciation Portfolio—Class II, Columbia Variable Portfolio—Commodity Strategy Fund—Class 2, Columbia Variable Portfolio—Emerging Markets Bond Fund—Class 2, Columbia Variable Portfolio—Intermediate Bond Fund—Class 2, Columbia Variable Portfolio—Small Cap Value Fund—Class 2, Delaware VIP^® Small Cap Value Series—Service Class, DWS Alternative Asset Allocation VIP—Class B, Fidelity^® VIP Bond Index Portfolio—Service Class 2, Fidelity^® VIP Emerging Markets Portfolio—Service Class 2, Fidelity^® VIP Growth Opportunities Portfolio—Service Class 2, Fidelity^® VIP Health Care Portfolio—Service Class 2, Fidelity^® VIP International Index Portfolio—Service Class 2, Fidelity^® VIP Investment Grade Bond Portfolio—Service Class 2, Fidelity^® VIP Mid Cap Portfolio—Service Class 2, Franklin Templeton Aggressive Model Portfolio—Class II, Franklin Templeton Conservative Model Portfolio —Class II, Franklin Templeton Moderate Model Portfolio—Class II, Franklin Templeton Moderately Aggressive Model Portfolio—Class II, Franklin Templeton Moderately Conservative Model Portfolio—Class II, Invesco V.I. EQV International Equity Fund—Series II Shares, Invesco V.I. Main Street Small Cap Fund^®—Series II Shares, Janus Henderson Enterprise Portfolio—Service Shares, MFS^® International Intrinsic Value Portfolio—Service Class, MFS^® Mid Cap Value Portfolio—Service Class, MFS^® Research International Portfolio—Service Class, Morgan Stanley VIF U.S. Real Estate Portfolio—Class II, PIMCO VIT Income Portfolio—Advisor Class, PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)—Advisor Class, PIMCO VIT Low Duration Portfolio—Advisor Class, PIMCO VIT Total Return Portfolio—Advisor Class and Western Asset Core Plus VIT Portfolio—Class II offer one class of shares under this Separate Account which are presented within the service class section.

The following Investment Divisions, with their respective Fund portfolios, are available in this Separate Account:

MainStay VP American Century Sustainable Equity—Initial Class

MainStay VP American Century Sustainable Equity—Service Class

MainStay VP Balanced—Service Class

MainStay VP Bond—Initial Class

MainStay VP Bond—Service Class

MainStay VP Candriam Emerging Markets Equity—Initial Class

MainStay VP Candriam Emerging Markets Equity—Service Class

MainStay VP CBRE Global Infrastructure—Service Class

MainStay VP Conservative Allocation—Service Class

MainStay VP Epoch U.S. Equity Yield—Initial Class

MainStay VP Epoch U.S. Equity Yield—Service Class

MainStay VP Equity Allocation—Service Class

MainStay VP Fidelity Institutional AM^® Utilities—Initial Class

MainStay VP Fidelity Institutional AM^® Utilities—Service Class

MainStay VP Floating Rate—Service Class

MainStay VP Growth Allocation—Service Class

MainStay VP Income Builder—Initial Class

MainStay VP Income Builder—Service Class

MainStay VP IQ Hedge Multi-Strategy—Service Class

MainStay VP Janus Henderson Balanced—Initial Class

MainStay VP Janus Henderson Balanced—Service Class

MainStay VP MacKay Convertible—Initial Class

MainStay VP MacKay Convertible—Service Class

MainStay VP MacKay Government—Initial Class

MainStay VP MacKay Government—Service Class

MainStay VP MacKay High Yield Corporate Bond—Initial Class

MainStay VP MacKay High Yield Corporate Bond—Service Class

MainStay VP MacKay Strategic Bond—Service Class

MainStay VP Moderate Allocation—Service Class

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 1—Organization and Significant Accounting Policies (Continued):

MainStay VP Natural Resources—Initial Class

MainStay VP PIMCO Real Return—Service Class

MainStay VP PineStone International Equity—Initial Class (formerly MainStay VP MacKay International Equity—Initial Class)

MainStay VP PineStone International Equity—Service Class (formerly MainStay VP MacKay International Equity—Service Class)

MainStay VP S&P 500 Index—Initial Class

MainStay VP S&P 500 Index—Service Class

MainStay VP Small Cap Growth—Initial Class

MainStay VP Small Cap Growth—Service Class

MainStay VP U.S. Government Money Market—Initial Class

MainStay VP Wellington Growth—Initial Class

MainStay VP Wellington Growth—Service Class

MainStay VP Wellington Mid Cap—Initial Class

MainStay VP Wellington Mid Cap—Service Class

MainStay VP Wellington Small Cap—Initial Class

MainStay VP Wellington Small Cap—Service Class

MainStay VP Wellington U.S. Equity—Initial Class

MainStay VP Wellington U.S. Equity—Service Class

MainStay VP Winslow Large Cap Growth—Initial Class

MainStay VP Winslow Large Cap Growth—Service Class

AB VPS Relative Value Portfolio—Class B (formerly AB VPS Growth and Income Portfolio—Class B)

American Funds IS Asset Allocation Fund—Class 4

American Funds IS The Bond Fund of America^®—Class 4

American Funds IS Global Small Capitalization Fund—Class 4

American Funds IS Growth Fund—Class 4

American Funds IS New World Fund^®—Class 4

American Funds IS Washington Mutual Investors Fund^SM—Class 4

BlackRock^® Global Allocation V.I. Fund—Class III

BlackRock^® High Yield V.I. Fund—Class III

BNY Mellon IP Technology Growth Portfolio—Initial Shares

BNY Mellon IP Technology Growth Portfolio—Service Shares

BNY Mellon Sustainable U.S. Equity Portfolio—Service Shares

ClearBridge Variable Appreciation Portfolio—Class II

Columbia Variable Portfolio—Commodity Strategy Fund—Class 2

Columbia Variable Portfolio—Emerging Markets Bond Fund—Class 2

Columbia Variable Portfolio—Intermediate Bond Fund—Class 2

Columbia Variable Portfolio—Small Cap Value Fund—Class 2

Delaware VIP^® Small Cap Value Series—Service Class

DWS Alternative Asset Allocation VIP—Class B

Fidelity^® VIP Bond Index Portfolio—Service Class 2

Fidelity^® VIP Contrafund^SM Portfolio—Initial Class

Fidelity^® VIP Contrafund^SM Portfolio—Service Class 2

Fidelity^® VIP Emerging Markets Portfolio—Service Class 2

Fidelity^® VIP Equity-Income Portfolio^SM—Initial Class

Fidelity^® VIP Equity-Income Portfolio^SM—Service Class 2

Fidelity^® VIP FundsManager^® 60% Portfolio—Investor Class

Fidelity^® VIP FundsManager^® 60% Portfolio—Service Class

Fidelity^® VIP Government Money Market Portfolio—Investor Class

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 1—Organization and Significant Accounting Policies (Continued):

Fidelity^® VIP Growth Opportunities Portfolio—Service Class 2

Fidelity^® VIP Health Care Portfolio—Service Class 2

Fidelity^® VIP International Index Portfolio—Service Class 2

Fidelity^® VIP Investment Grade Bond Portfolio—Service Class 2

Fidelity^® VIP Mid Cap Portfolio—Service Class 2

Franklin Templeton Aggressive Model Portfolio—Class II

Franklin Templeton Conservative Model Portfolio—Class II

Franklin Templeton Moderate Model Portfolio—Class II

Franklin Templeton Moderately Aggressive Model Portfolio—Class II

Franklin Templeton Moderately Conservative Model Portfolio—Class II

Invesco V.I. EQV International Equity Fund—Series II Shares

Invesco V.I. Main Street Small Cap Fund^®—Series II Shares

Janus Henderson Enterprise Portfolio—Service Shares

Janus Henderson Global Research Portfolio—Institutional Shares

Janus Henderson Global Research Portfolio—Service Shares

MFS^® International Intrinsic Value Portfolio—Service Class

MFS^® Investors Trust Series—Initial Class

MFS^® Investors Trust Series—Service Class

MFS^® Mid Cap Value Portfolio—Service Class

MFS^® Research International Portfolio—Service Class

MFS^® Research Series—Initial Class

MFS^® Research Series—Service Class

Morgan Stanley VIF U.S. Real Estate Portfolio—Class II

Neuberger Berman AMT Mid Cap Growth Portfolio—Class I

Neuberger Berman AMT Mid Cap Growth Portfolio—Class S

PIMCO VIT Income Portfolio—Advisor Class

PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)—Advisor Class

PIMCO VIT Low Duration Portfolio—Advisor Class

PIMCO VIT Total Return Portfolio—Advisor Class

Western Asset Core Plus VIT Portfolio—Class II

Not all investment options are available under all policies.

New investments in the MainStay VP Candriam Emerging Markets Equity, MainStay VP Wellington Growth and Columbia Variable Portfolio—Commodity Strategy Fund Investment Divisions are restricted to those policies already invested in these Investment Divisions.

For Series I policies known as New York Life Flexible Premium Variable Annuity II and Series VII, VIII, IX, X, XI, XII, XIII, XIV, XV, XVI and XIX policies, initial premium payments are allocated to the Investment Divisions, Fixed Account (where available) and/or DCA Advantage Accounts (where available) within two business days after receipt. For Series I, III, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII, XIV, XV, XVI and XIX policies, subsequent premium payments for flexible premium policies are generally allocated to the Investment Divisions, one year Fixed Account (where available), three year Fixed Account (where available), and/or DCA Advantage Accounts (where available) at the close of the business day they are received. For Series II policies, known as New York Life Access Variable Annuity, subsequent premium payments are not permitted for policies purchased prior to November 15, 2004. In those states where NYLIAC offers a single premium version of the Series III, VI, VIII and IX policies, only one premium payment is allowed. In those states where NYLIAC offers a modified premium version of the Series IV and V policies, subsequent premium payments are allowed only during the first policy year. For Series XVII and XVIII policies known as the New York Life Premier Variable Annuity—P Series, New York Life IndexFlex Variable Annuity and New York Life IndexFlex Variable Annuity—FP Series, initial premium payments are allocated to the Investment Division within two business days after receipt. Subsequent initial premium payments must be received within 90 days after the Policy Date and will be allocated to your policy at the close of the Business Day on which they are received.

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 1—Organization and Significant Accounting Policies (Continued):

In addition, for Series I, II, III, VI, VII, VIII, IX, XI, XII, XIII, XIV and XVI policies, the policyowner has the option to transfer amounts between the Investment Divisions of the Separate Account and the Fixed Account of NYLIAC subject to certain restrictions. For Series IV policies, the policyowner has the option to transfer amounts between the Investment Divisions of the Separate Account and the one-year Fixed Account of NYLIAC subject to certain restrictions. For Series XVIII policies, the policyowner has the option to transfer amounts between the Investment Divisions of the Separate Account, from one or more Investment Divisions to the Index-linked Account or the Fixed Account of NYLIAC, subject to certain restrictions. For Series XIX policies, the policyowner has the option to transfer amounts between the Investment Divisions of the Separate Account subject to certain restrictions. On the accompanying Statement of Changes in Net Assets, all references to the Fixed Account include the Fixed Account and the DCA Advantage Accounts.

No Federal income tax is payable on investment income or capital gains of the Separate Account under current Federal income tax law.

Security Valuation—The investments are valued at the net asset value (“NAV”) of shares of the respective Fund portfolios.

Security Transactions—Realized gains and losses from security transactions are reported on the identified cost basis. Security transactions are accounted for as of the date the securities are purchased or sold (trade date).

Distributions Received—Dividend income and capital gain distributions are recorded on the ex-dividend date and reinvested in the corresponding Fund portfolio.

The authoritative guidance 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. The authoritative guidance also establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.

The levels of the fair value hierarchy are based on the inputs to the valuation as follows:

Level 1—Fair Value is based on unadjusted quoted prices for identical assets or liabilities in an active market. Active markets are defined as a market in which many transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data for substantially the full term of the asset.

Level 3—Instruments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions in pricing the asset or liability.

Investments in the mutual funds represent open-end mutual funds in which the valuation is based on the aggregate NAV of the shares held at the valuation date, which represents fair value, and are classified as level 1.

The amounts shown as net receivable from (payable to) NYLIAC on the Statement of Assets and Liabilities reflect transactions that occurred on the last business day of the reporting period. These amounts will be deposited to or withdrawn from the separate account in accordance with the policyowners’ instructions on the first business day subsequent to the close of the period presented. The amounts shown as net receivable from (payable to) the Fund for shares sold or purchased represent unsettled trades.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Each Investment Division of the Separate Account indirectly bears exposure to the market, credit and liquidity risks of the Fund portfolio in which it invests. These financial statements should be read in conjunction with the financial statements and footnotes of the Fund portfolios.

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 2—Purchases and Sales (in 000’s):

The cost of purchases and proceeds from sales of investments for the year ended December 31, 2023 were as follows:


	Purchases		Sales
MainStay VP American Century Sustainable Equity—Initial Class	$	12,362	$	8,346
MainStay VP American Century Sustainable Equity—Service Class		27,511		18,427
MainStay VP Balanced—Service Class		21,408		27,175
MainStay VP Bond—Initial Class		865		4,120
MainStay VP Bond—Service Class		14,375		18,461
MainStay VP Candriam Emerging Markets Equity—Initial Class		196		1,155
MainStay VP Candriam Emerging Markets Equity—Service Class		1,380		4,477
MainStay VP CBRE Global Infrastructure—Service Class		3,602		3,512
MainStay VP Conservative Allocation—Service Class		25,928		46,137
MainStay VP Epoch U.S. Equity Yield—Initial Class		7,590		12,469
MainStay VP Epoch U.S. Equity Yield—Service Class		30,963		38,419
MainStay VP Equity Allocation—Service Class		31,380		29,949
MainStay VP Fidelity Institutional AM^® Utilities—Initial Class		228		39
MainStay VP Fidelity Institutional AM^® Utilities—Service Class		73,183		62,527
MainStay VP Floating Rate—Service Class		81,017		49,595
MainStay VP Growth Allocation—Service Class		48,163		62,841
MainStay VP Income Builder—Initial Class		1,524		7,041
MainStay VP Income Builder—Service Class		21,292		25,174
MainStay VP IQ Hedge Multi-Strategy—Service Class		7,986		11,499
MainStay VP Janus Henderson Balanced—Initial Class		7,292		19,607
MainStay VP Janus Henderson Balanced—Service Class		115,188		56,426
MainStay VP MacKay Convertible—Initial Class		2,049		9,704
MainStay VP MacKay Convertible—Service Class		52,667		45,154
MainStay VP MacKay Government—Initial Class		533		2,585
MainStay VP MacKay Government—Service Class		9,019		11,213
MainStay VP MacKay High Yield Corporate Bond—Initial Class		6,044		22,330
MainStay VP MacKay High Yield Corporate Bond—Service Class		109,559		108,360
MainStay VP MacKay Strategic Bond—Service Class		28,985		37,054
MainStay VP Moderate Allocation—Service Class		43,770		58,358
MainStay VP Natural Resources—Initial Class		18,660		39,124
MainStay VP PIMCO Real Return—Service Class		21,075		19,546
MainStay VP PineStone International Equity—Initial Class		626		2,839
MainStay VP PineStone International Equity—Service Class		8,392		13,253
MainStay VP S&P 500 Index—Initial Class		6,813		25,852
MainStay VP S&P 500 Index—Service Class		161,277		90,765
MainStay VP Small Cap Growth—Initial Class		464		5,966
MainStay VP Small Cap Growth—Service Class		8,826		6,613
MainStay VP U.S. Government Money Market—Initial Class		110,775		137,551
MainStay VP Wellington Growth—Initial Class		294		9,244
MainStay VP Wellington Growth—Service Class		379		3,542

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 2—Purchases and Sales (in 000’s) (Continued):


	Purchases		Sales
MainStay VP Wellington Mid Cap—Initial Class	$	842	$	5,907
MainStay VP Wellington Mid Cap—Service Class		11,016		22,560
MainStay VP Wellington Small Cap—Initial Class		1,011		3,072
MainStay VP Wellington Small Cap—Service Class		11,092		15,301
MainStay VP Wellington U.S. Equity—Initial Class		1,268		9,860
MainStay VP Wellington U.S. Equity—Service Class		9,278		13,956
MainStay VP Winslow Large Cap Growth—Initial Class		3,076		7,775
MainStay VP Winslow Large Cap Growth—Service Class		45,713		54,666
AB VPS Relative Value Portfolio—Class B		9,840		2,353
American Funds IS Asset Allocation Fund—Class 4		37,921		16,825
American Funds IS The Bond Fund of America^®—Class 4		5,946		1,497
American Funds IS Global Small Capitalization Fund—Class 4		4,108		3,269
American Funds IS Growth Fund—Class 4		88,001		13,500
American Funds IS New World Fund^®—Class 4		8,130		10,480
American Funds IS Washington Mutual Investors Fund^SM—Class 4		41,948		16,072
BlackRock^® Global Allocation V.I. Fund—Class III		25,277		22,802
BlackRock^® High Yield V.I. Fund—Class III		28,077		16,749
BNY Mellon IP Technology Growth Portfolio—Initial Shares		3,136		3,601
BNY Mellon IP Technology Growth Portfolio—Service Shares		33,751		33,376
BNY Mellon Sustainable U.S. Equity Portfolio—Service Shares		1,484		574
ClearBridge Variable Appreciation Portfolio—Class II		5,852		4,268
Columbia Variable Portfolio—Commodity Strategy Fund—Class 2		534		366
Columbia Variable Portfolio—Emerging Markets Bond Fund—Class 2		4,565		5,641
Columbia Variable Portfolio—Intermediate Bond Fund—Class 2		1,223		245
Columbia Variable Portfolio—Small Cap Value Fund—Class 2		14,211		13,234
Delaware VIP^® Small Cap Value Series—Service Class		5,463		3,496
DWS Alternative Asset Allocation VIP—Class B		10,750		10,065
Fidelity^® VIP Bond Index Portfolio—Service Class 2		11,288		7,285
Fidelity^® VIP Contrafund^SM Portfolio—Initial Class		5,430		18,522
Fidelity^® VIP Contrafund^SM Portfolio—Service Class 2		60,162		87,081
Fidelity^® VIP Emerging Markets Portfolio—Service Class 2		7,764		5,733
Fidelity^® VIP Equity-Income Portfolio^SM—Initial Class		2,218		7,241
Fidelity^® VIP Equity-Income Portfolio^SM—Service Class 2		36,402		31,041
Fidelity^® VIP FundsManager^® 60% Portfolio—Investor Class		59,077		16,493
Fidelity^® VIP FundsManager^® 60% Portfolio—Service Class		13,855		3,788
Fidelity^® VIP Government Money Market Portfolio—Investor Class		—		—
Fidelity^® VIP Growth Opportunities Portfolio—Service Class 2		53,111		36,724
Fidelity^® VIP Health Care Portfolio—Service Class 2		17,283		8,965
Fidelity^® VIP International Index Portfolio—Service Class 2		14,721		3,881
Fidelity^® VIP Investment Grade Bond Portfolio—Service Class 2		5,707		1,778
Fidelity^® VIP Mid Cap Portfolio—Service Class 2		21,653		25,198

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 2—Purchases and Sales (in 000’s) (Continued):


	Purchases		Sales
Franklin Templeton Aggressive Model Portfolio—Class II	$	52,749	$	17,753
Franklin Templeton Conservative Model Portfolio—Class II		24,455		14,487
Franklin Templeton Moderate Model Portfolio—Class II		139,643		34,513
Franklin Templeton Moderately Aggressive Model Portfolio—Class II		125,534		32,743
Franklin Templeton Moderately Conservative Model Portfolio—Class II		48,800		26,941
Invesco V.I. EQV International Equity Fund—Series II Shares		7,589		10,193
Invesco V.I. Main Street Small Cap Fund^®—Series II Shares		7,865		3,008
Janus Henderson Enterprise Portfolio—Service Shares		17,843		6,764
Janus Henderson Global Research Portfolio—Institutional Shares		1,909		5,936
Janus Henderson Global Research Portfolio—Service Shares		9,244		7,818
MFS^® International Intrinsic Value Portfolio—Service Class		11,511		7,694
MFS^® Investors Trust Series—Initial Class		514		1,692
MFS^® Investors Trust Series—Service Class		8,773		11,576
MFS^® Mid Cap Value Portfolio—Service Class		10,843		6,540
MFS^® Research International Portfolio—Service Class		1,297		324
MFS^® Research Series—Initial Class		750		1,572
MFS^® Research Series—Service Class		6,400		8,573
Morgan Stanley VIF U.S. Real Estate Portfolio—Class II		7,180		5,951
Neuberger Berman AMT Mid Cap Growth Portfolio—Class I		95		209
Neuberger Berman AMT Mid Cap Growth Portfolio—Class S		18,474		15,302
PIMCO VIT Income Portfolio—Advisor Class		15,766		3,642
PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)—Advisor Class		14,911		18,342
PIMCO VIT Low Duration Portfolio—Advisor Class		14,841		10,381
PIMCO VIT Total Return Portfolio—Advisor Class		33,811		31,909
Western Asset Core Plus VIT Portfolio—Class II		1,404		1,135

Total	$	2,428,025	$	2,006,687

Not all investment divisions are available under all policies.

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 3—Expenses and Related Party Transactions:

New York Life Investment Management LLC (“New York Life Investments”) provides investment advisory services to the MainStay VP Funds Trust, for a fee. New York Life Investments retains several sub-advisors, including American Century Investment Management, Inc. (“American Century”), Brown Advisory LLC (“Brown Advisory”), Candriam (“Candriam”), CBRE Investment Management Listed Real Assets LLC (“CBRE”), Epoch Investment Partners, Inc. (“Epoch”), FIAM LLC (“FIAM”), IndexIQ Advisors LLC (“IndexIQ Advisors”), Janus Henderson Investors US LLC (“Janus”), MacKay Shields LLC (“MacKay”), Newton Investment Management North America, LLC (“NIMNA”), NYL Investors LLC (“NYLI”), Pacific Investment Management Company LLC (“PIMCO”), PineStone Asset Management Inc. (“PineStone”), Segall Bryant & Hamill, LLC (“SBH”), Wellington Management Company LLP (“Wellington”) and Winslow Capital Management, LLC (“Winslow Capital”) to provide investment advisory services to certain portfolios of the MainStay VP Funds Trust.

New York Life Investments, MacKay, IndexIQ Advisors and NYLI are all wholly-owned direct and indirect subsidiaries of NYLIC. Candriam is an indirect majority-owned subsidiary of NYLIC. American Century is a wholly-owned subsidiary of American Century Companies, Inc., a privately held corporation. Brown Advisory is a wholly-owned subsidiary of Brown Advisory Management, LLC. CBRE is the listed real asset solution within CBRE Investment Management. Epoch is an indirect, wholly-owned subsidiary of Toronto Dominion Bank. FIAM is an indirectly held wholly-owned subsidiary of FMR LLC. Janus is a wholly-owned subsidiary of Janus Henderson Group, Plc, doing business as Janus Henderson Investors. NIMNA is an indirect subsidiary of the Bank of New York Mellon Corporation. PIMCO is a majority owned subsidiary of Allianz Asset Management of America L.P. PineStone is an independent advisory firm. SBH is a wholly-owned subsidiary of CI Financial Corp, Wellington is an independent investment advisory firm. Winslow Capital is a wholly-owned subsidiary of Nuveen, LLC.

NYLIAC deducts a surrender charge on certain partial withdrawals and surrenders of Series I, III, IV, V, VI, VIII, IX, X, XI, XII, XIV, XV, XVI, XVII and XVIII policies. Policies in Series II, VII and XIII are not subject to surrender charges on partial withdrawals and surrenders. For New York Life Variable Annuity and New York Life Plus Variable Annuity policies which are part of Series I, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 7% during the first three payment years and declines 1% per year for each additional payment year, until the sixth payment year, after which no charge is made. For New York Life Flexible Premium Variable Annuity and New York Life Flexible Premium Variable Annuity II policies, which are also part of Series I, this charge is 7% for the first three policy years and declines to 1% per year for each additional policy year, until the ninth policy year, after which no charge is made.

For New York Life Premium Plus Variable Annuity policies, which are part of Series III and New York Life Premium Plus II Variable Annuity policies, which are part of Series VI, the percentage of the surrender charge varies; depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 8% during the first three payment years (8% during the first four payment years for policies sold by registered representatives of broker-dealers that have selling agreements with NYLIFE Distributors and NYLIAC or banks) and declines 1% per year for each additional payment year, until the eighth payment year, after which no charge is made. In those states where NYLIAC offered a single premium version of the New York Life Premium Plus Variable Annuity and New York Life Premium Plus II Variable Annuity, the surrender charge was lower.

For the New York Life Essentials Variable Annuity and New York Life Plus II Variable Annuity policies, which are part of Series IV, the percentage of the surrender charge varies; depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 7% during the first three payment years, 6% during the fourth and fifth payment years and declines 1% per year for each additional payment year, until the seventh payment year, after which no charge is made.

For New York Life Select Variable Annuity policies, which are part of Series V, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 8% during the first two payment years and declines to 7% for the third payment year, after which no charge is made.

For New York Life Premier Variable Annuity policies, which are part of Series VIII, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 8% during the first payment year and declines by 1% per year for each additional payment year, until the seventh payment year, after which no charge is made.

For New York Life Premier Plus Variable Annuity policies, which are part of Series IX, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 8% during the first two payment years and declines by 1% per year for each additional payment year, until the eighth payment year, after which no charge is made.

For New York Life Income Plus Variable Annuity policies with the Income Benefit Rider, which are part of Series X, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 8% during the first payment year and declines by 1% per year for each additional payment year, until the seventh payment year, after which no charge is made.

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 3—Expenses and Related Party Transactions (Continued):

For New York Life Income Plus Variable Annuity policies with the Guaranteed Future Income Benefit Rider, which are also part of Series X, the product becomes a single premium product where surrender charges are based on the Policy Year. This charge is 8% during the first Policy Year and declines by 1% per year for each Policy Year, until the seventh Policy Year, after which no charge is made.

For New York Life Premier Variable Annuity II policies, which are part of Series XI, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. For policies applied for before May 1, 2019, this charge is 8% during the first payment year and declines by 1% per year for each additional payment year, until the seventh payment year, after which no charge is made. For policies applied for on or after May 1, 2019, this charge is 7% during the first two payment years and declines by 1% per year for each additional payment year, until the seventh payment year, after which no charge is made.

For New York Life Premier Plus Variable Annuity II policies, which are part of Series XII, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. In most jurisdictions, this charge is 8% during the first two payment years and declines by 1% per year for each additional payment year, until the eighth payment year, after which no charge is made.

For New York Life Flexible Premium Variable Annuity III policies, which are part of Series XIV, the percentage of surrender charge is based on the Policy Year. In most jurisdictions, this charge is 7% for the first three Policy Years and declines to 1% per year for each additional Policy Year, until the ninth Policy Year, after which no charge is made.

For New York Life Income Plus Variable Annuity II policies with the Guaranteed Future Income Benefit Rider, which are part of Series XV, the product is a single premium product where surrender charges are based on the Policy Year. This charge is 8% during the first Policy Year and declines by 1% per year for each additional Policy Year, until the seventh Policy Year, after which no charge is made.

For New York Life Premier Variable Annuity—FP Series policies, which are part of Series XVI, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 8% during the first payment year and declines by 1% per year for each additional payment year, until the seventh payment year, after which no charge is made.

For New York Life Premier Variable Annuity—P Series policies, which are part of Series XVII, the charge is assessed as a percentage of the amount withdrawn or surrendered during the first seven Policy Years following the Policy Date. This charge is 7% during the first two Policy Years and declines by 1% per year for each additional Policy Year, until the seventh Policy Year, after which no charge is made.

For New York Life IndexFlex Variable Annuity and New York Life IndexFlex Variable Annuity—FP Series policies, which are part of Series XVIII, the charge is assessed as a percentage of the amount withdrawn or surrendered during the first seven Policy Years, first six Policy Years or first five Policy Years following the Policy Date, depending on the surrender charge period chosen when the policy is issued. For the seven year surrender charge period, the charge is 8% during the first two Policy Years and declines by 1% per year for each additional Policy Year, until the seventh Policy Year, after which no charge is made. For the six year surrender charge period, the charge is 8% during the first two Policy Years and declines by 1% per year for each additional Policy Year, until the sixth Policy Year, after which no charge is made. For the five year surrender charge period, the charge is 8% during the first two Policy Years and declines by 1% per year for each additional Policy Year, until the fifth Policy Year, after which no charge is made.

All surrender charges are recorded with policyowners’ surrenders in the accompanying Statement of Changes in Net Assets. Surrender charges are paid to NYLIAC.

NYLIAC also deducts an annual policy service charge from the policy’s accumulation value on each policy anniversary date and upon surrender, if on the policy anniversary and/or date of surrender the accumulation value is less than $20,000 for Series I policies, $50,000 for Series II, IV, VII and XIV policies and $100,000 for Series III, V, VI, VIII, IX, XI, XII, XIII and XVI policies. For New York Life Variable Annuity and New York Life Plus Variable Annuity policies which are part of Series I, this charge is the lesser of $30 or 2% of the accumulation value per policy. For New York Life Flexible Premium Variable Annuity and New York Life Flexible Premium Variable Annuity II, which are also part of Series I, this charge is $30 per policy. For Series II, VII and XIII policies, this charge is $40 per policy (may be lower in some states). For Series III, IV, VI, VIII, IX, XI, XII, XIV and XVI policies, this charge is $30 per policy. For Series V policies, this charge is $50 per policy. For Series X and XV policies, the charge is $30 per policy and is waived either upon (a) registration with delivery of all available materials that we normally mail, (b) the Variable Account Annuity Commencement Date, or (c) the Income Benefit (for Series X policies)/GFIB Payment Commencement Date (whichever comes first). These charges are shown as a reduction to payments received from policyowners in the accompanying Statement of Changes in Net Assets.

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 3—Expenses and Related Party Transactions (Continued):

Additionally, NYLIAC reserves the right to charge Series I, II, III, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII, XIV, XV, XVI and XVIII policies $30 for each transfer in excess of 12 in any one policy year, subject to certain restrictions.

The Separate Account is charged for administrative services provided and the mortality and expense risks assumed by NYLIAC. For Series I, II, III, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII, XIV and XV policies, these charges are made daily at an annual rate of 1.40%, 1.55%, 1.60%, 1.45%, 1.85%, 1.75%, 1.65%, 1.35%, 1.65%, 1.35%, 1.30% during the surrender charge period for the initial premium and 1.10% after the surrender charge period for the initial premium for policies applied for before May 1, 2016 and 1.20% during the surrender charge period for the initial premium and 1.00% after the surrender charge period for the initial premium for policies applied for on or after May 1, 2016, 1.60% during the surrender charge period for the initial premium and 1.40% after the surrender charge period for the initial premium for policies applied for before May 1, 2016 and 1.50% during the surrender charge period for the initial premium and 1.30% after the surrender charge period for the initial premium for policies applied for on or after May 1, 2016, 1.60%, 1.35% during the surrender charge period for the initial premium and 1.15% after the surrender charge period for the initial premium for policies applied for before May 1, 2016 and 1.30% during the surrender charge period for the initial premium and 1.10% after the surrender charge period for the initial premium for policies applied for on or after May 1, 2016 and 1.35%, for Series XVI policies, the charge is 1.20% during the surrender charge period for the initial premium and 1.00% after the surrender charge period for the initial premium, for New York Life Premier Variable Annuity—FP Series, for Series XVII policies, the charge is 1.20% during the surrender charge period and 1.00% after the surrender charge period, for New York Life Premier Variable Annuity—P Series, for Series XVIII policies, the charge is 1.20% for the seven year surrender charge period, 1.25% for the six year surrender charge period and 1.30% for the five year surrender charge period, for New York Life IndexFlex Variable Annuity and New York Life IndexFlex Variable Annuity—FP Series, for Series XIX policies, the charge is 0.30% if on a monthly policy anniversary, the accumulation value is greater than or equal to $1,000,000, the charge is 0.35% if on a monthly policy anniversary, the accumulation value is greater than or equal to $500,000 but less than $1,000,000 and the charge is 0.40% if on a monthly policy anniversary, the accumulation value is less than $500,000 for New York Life Premier Advisory Variable Annuity, respectively, of the daily average variable accumulation value of each Investment Division, and is the same rate for each of the five periods presented in the Financial Highlights section. These charges are disclosed in the accompanying Statement of Operations.

In addition, New York Life Income Plus Variable Annuity and New York Life Income Plus Variable Annuity II policies, which are part of Series X and Series XV, are subject to a Guaranteed Future Income Benefit Charge if the Guaranteed Future Income Benefit Rider is chosen. This charge is an annualized percentage of the average daily Unfunded Income Benefit Base (as defined in the New York Life Income Plus Variable Annuity and New York Life Income Plus Variable Annuity II prospectuses) each policy quarter, deducted from the variable accumulation unit value on a quarterly basis. On an annual basis, the charge equals 1.00% (0.25% quarterly) of the Unfunded Income Benefit Base.

In order to purchase the New York Life Premier Advisory Variable Annuity, which is part of Series XIX, the purchaser must be an advisory client of Eagle Strategies LLC (Eagle or the Investment Adviser), NYLIAC’s affiliated investment adviser, and agree to pay an ongoing, asset-based fee (Advisory Fee) to Eagle for ongoing, investment advisory services relating to the policy. The Advisory Fee that is charged by the Investment Adviser is covered in a separate agreement between the purchaser and the Investment Adviser, and is separate from, and in addition to, the fees and expenses that are described in the prospectus.

Separate Account policyowners may pay certain Fund portfolio company operating expenses during the time they own their policy, which are reflected in the daily computation of NAVs for the Funds. NYLIAC may receive payment or compensation from the Funds resulting from certain of these operating expenses in connection with the administration, distribution and other services it provides to the Funds, some of whom may be affiliates of NYLIAC. Management Fees (which may include administration and/or advisory fees) range from 0.00% to 1.00%, distribution (12b-1) fees range from 0.00% to 0.30%, and other expenses range from 0.00% to 0.31%. These ranges are shown as a percentage of average net assets as of December 31, 2022, and approximate the ranges as of December 31, 2023.

NOTE 4—Distribution of Net Income:

The Separate Account does not expect to declare dividends to policyowners from accumulated net investment income and realized gains. The income and gains are distributed to policyowners as part of withdrawals of amounts (in the form of surrenders, death benefits, transfers, or annuity payments) in excess of the net premium payments.

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 5—Changes in Units Outstanding (in 000’s):

The changes in units outstanding for the years ended December 31, 2023 and 2022 were as follows:


	2023								2022
	Units Issued		Units Redeemed			Net Increase (Decrease)			Units Issued		Units Redeemed			Net Increase (Decrease)
MainStay VP American Century Sustainable Equity—Initial Class		15		(315	)		(300	)		13		(220	)		(207	)
MainStay VP American Century Sustainable Equity—Service Class		526		(887	)		(361	)		256		(717	)		(461	)
MainStay VP Balanced—Service Class		1,674		(1,628	)		46			2,125		(1,836	)		289
MainStay VP Bond—Initial Class		18		(196	)		(178	)		52		(227	)		(175	)
MainStay VP Bond—Service Class		1,273		(1,709	)		(436	)		1,022		(2,035	)		(1,013	)
MainStay VP Candriam Emerging Markets Equity—Initial Class		14		(137	)		(123	)		45		(108	)		(63	)
MainStay VP Candriam Emerging Markets Equity—Service Class		140		(529	)		(389	)		427		(437	)		(10	)
MainStay VP CBRE Global Infrastructure—Service Class		413		(450	)		(37	)		1,348		(903	)		445
MainStay VP Conservative Allocation—Service Class		1,446		(3,124	)		(1,678	)		1,558		(2,763	)		(1,205	)
MainStay VP Epoch U.S. Equity Yield—Initial Class		14		(384	)		(370	)		25		(375	)		(350	)
MainStay VP Epoch U.S. Equity Yield—Service Class		1,431		(1,711	)		(280	)		1,279		(1,098	)		181
MainStay VP Equity Allocation—Service Class		1,065		(1,637	)		(572	)		745		(1,301	)		(556	)
MainStay VP Fidelity Institutional AM^® Utilities—Initial Class		5		(1	)		4			1		(3	)		(2	)
MainStay VP Fidelity Institutional AM^® Utilities—Service Class		2,767		(3,653	)		(886	)		2,323		(3,528	)		(1,205	)
MainStay VP Floating Rate—Service Class		5,706		(3,835	)		1,871			6,129		(3,390	)		2,739
MainStay VP Growth Allocation—Service Class		1,920		(3,505	)		(1,585	)		1,033		(2,633	)		(1,600	)
MainStay VP Income Builder—Initial Class		10		(185	)		(175	)		25		(172	)		(147	)
MainStay VP Income Builder—Service Class		1,673		(1,702	)		(29	)		1,708		(1,437	)		271
MainStay VP IQ Hedge Multi-Strategy—Service Class		641		(1,323	)		(682	)		412		(1,392	)		(980	)
MainStay VP Janus Henderson Balanced—Initial Class		46		(834	)		(788	)		47		(728	)		(681	)
MainStay VP Janus Henderson Balanced—Service Class		7,787		(3,309	)		4,478			7,526		(2,787	)		4,739
MainStay VP MacKay Convertible—Initial Class		19		(185	)		(166	)		18		(233	)		(215	)
MainStay VP MacKay Convertible—Service Class		3,748		(2,230	)		1,518			2,181		(2,399	)		(218	)
MainStay VP MacKay Government—Initial Class		14		(145	)		(131	)		42		(170	)		(128	)
MainStay VP MacKay Government—Service Class		876		(1,121	)		(245	)		587		(1,331	)		(744	)
MainStay VP MacKay High Yield Corporate Bond—Initial Class		17		(505	)		(488	)		42		(441	)		(399	)
MainStay VP MacKay High Yield Corporate Bond—Service Class		6,696		(6,560	)		136			3,713		(7,052	)		(3,339	)
MainStay VP MacKay Strategic Bond—Service Class		2,249		(3,280	)		(1,031	)		1,016		(3,416	)		(2,400	)
MainStay VP Moderate Allocation—Service Class		2,246		(3,561	)		(1,315	)		1,393		(2,517	)		(1,124	)
MainStay VP Natural Resources—Initial Class		1,324		(3,030	)		(1,706	)		3,369		(3,722	)		(353	)
MainStay VP PIMCO Real Return—Service Class		1,436		(1,909	)		(473	)		1,436		(1,939	)		(503	)
MainStay VP PineStone International Equity—Initial Class		29		(103	)		(74	)		27		(96	)		(69	)
MainStay VP PineStone International Equity—Service Class		758		(817	)		(59	)		707		(496	)		211
MainStay VP S&P 500 Index—Initial Class		36		(354	)		(318	)		35		(310	)		(275	)
MainStay VP S&P 500 Index—Service Class		10,630		(3,862	)		6,768			7,436		(2,545	)		4,891
MainStay VP Small Cap Growth—Initial Class		22		(264	)		(242	)		59		(179	)		(120	)
MainStay VP Small Cap Growth—Service Class		687		(378	)		309			372		(418	)		(46	)
MainStay VP U.S. Government Money Market—Initial Class		23,465		(48,064	)		(24,599	)		56,393		(34,712	)		21,681
MainStay VP Wellington Growth—Initial Class		10		(193	)		(183	)		14		(205	)		(191	)
MainStay VP Wellington Growth—Service Class		31		(120	)		(89	)		37		(79	)		(42	)
MainStay VP Wellington Mid Cap—Initial Class		24		(143	)		(119	)		13		(108	)		(95	)
MainStay VP Wellington Mid Cap—Service Class		943		(1,012	)		(69	)		747		(736	)		11
MainStay VP Wellington Small Cap—Initial Class		95		(289	)		(194	)		43		(239	)		(196	)

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 5—Changes in Units Outstanding (in 000’s) (Continued):


	2023								2022
	Units Issued		Units Redeemed			Net Increase (Decrease)			Units Issued		Units Redeemed			Net Increase (Decrease)
MainStay VP Wellington Small Cap—Service Class		996		(1,191	)		(195	)		458		(907	)		(449	)
MainStay VP Wellington U.S. Equity—Initial Class		16		(147	)		(131	)		11		(142	)		(131	)
MainStay VP Wellington U.S. Equity—Service Class		662		(576	)		86			493		(344	)		149
MainStay VP Winslow Large Cap Growth—Initial Class		40		(152	)		(112	)		23		(151	)		(128	)
MainStay VP Winslow Large Cap Growth—Service Class		2,408		(2,040	)		368			2,364		(1,050	)		1,314
AB VPS Relative Value Portfolio—Class B		885		(224	)		661			365		(46	)		319
American Funds IS Asset Allocation Fund—Class 4		2,715		(1,336	)		1,379			2,968		(1,093	)		1,875
American Funds IS The Bond Fund of America^®—Class 4		601		(153	)		448			272		(23	)		249
American Funds IS Global Small Capitalization Fund—Class 4		354		(263	)		91			337		(132	)		205
American Funds IS Growth Fund—Class 4		7,293		(901	)		6,392			3,342		(454	)		2,888
American Funds IS New World Fund^®—Class 4		673		(769	)		(96	)		665		(413	)		252
American Funds IS Washington Mutual Investors Fund^SM—Class 4		3,527		(1,160	)		2,367			2,469		(852	)		1,617
BlackRock^® Global Allocation V.I. Fund—Class III		2,142		(1,738	)		404			2,179		(1,405	)		774
BlackRock^® High Yield V.I. Fund—Class III		2,081		(1,387	)		694			1,365		(1,278	)		87
BNY Mellon IP Technology Growth Portfolio—Initial Shares		80		(89	)		(9	)		39		(82	)		(43	)
BNY Mellon IP Technology Growth Portfolio—Service Shares		2,126		(1,370	)		756			1,901		(674	)		1,227
BNY Mellon Sustainable U.S. Equity Portfolio—Service Shares		138		(56	)		82			85		(26	)		59
ClearBridge Variable Appreciation Portfolio—Class II		378		(284	)		94			280		(186	)		94
Columbia Variable Portfolio—Commodity Strategy Fund—Class 2		27		(31	)		(4	)		17		(57	)		(40	)
Columbia Variable Portfolio—Emerging Markets Bond Fund—Class 2		299		(543	)		(244	)		319		(435	)		(116	)
Columbia Variable Portfolio—Intermediate Bond Fund—Class 2		128		(25	)		103			32		(3	)		29
Columbia Variable Portfolio—Small Cap Value Fund—Class 2		769		(662	)		107			638		(639	)		(1	)
Delaware VIP^® Small Cap Value Series—Service Class		454		(300	)		154			501		(511	)		(10	)
DWS Alternative Asset Allocation VIP—Class B		632		(867	)		(235	)		1,101		(1,344	)		(243	)
Fidelity^® VIP Bond Index Portfolio—Service Class 2		1,207		(818	)		389			841		(1,028	)		(187	)
Fidelity^® VIP Contrafund^SM Portfolio—Initial Class		16		(220	)		(204	)		12		(192	)		(180	)
Fidelity^® VIP Contrafund^SM Portfolio—Service Class 2		3,395		(3,200	)		195			2,556		(1,590	)		966
Fidelity^® VIP Emerging Markets Portfolio—Service Class 2		705		(537	)		168			434		(233	)		201
Fidelity^® VIP Equity-Income Portfolio^SM—Initial Class		9		(156	)		(147	)		30		(129	)		(99	)
Fidelity^® VIP Equity-Income Portfolio^SM—Service Class 2		2,271		(1,575	)		696			2,160		(1,237	)		923
Fidelity^® VIP FundsManager^® 60% Portfolio—Investor Class		4,039		(769	)		3,270			14,915		(150	)		14,765
Fidelity^® VIP FundsManager^® 60% Portfolio—Service Class		1,177		(308	)		869			1,072		(443	)		629
Fidelity^® VIP Government Money Market Portfolio—Investor Class		—		—			—			73		(73	)		—
Fidelity^® VIP Growth Opportunities Portfolio—Service Class 2		3,191		(1,569	)		1,622			2,481		(1,207	)		1,274
Fidelity^® VIP Health Care Portfolio—Service Class 2		1,437		(673	)		764			1,442		(1,150	)		292
Fidelity^® VIP International Index Portfolio—Service Class 2		1,376		(360	)		1,016			661		(134	)		527
Fidelity^® VIP Investment Grade Bond Portfolio—Service Class 2		572		(182	)		390			141		(7	)		134
Fidelity^® VIP Mid Cap Portfolio—Service Class 2		1,434		(1,070	)		364			772		(735	)		37
Franklin Templeton Aggressive Model Portfolio—Class II		4,535		(1,531	)		3,004			4,215		(472	)		3,743
Franklin Templeton Conservative Model Portfolio—Class II		2,330		(1,422	)		908			2,962		(1,497	)		1,465
Franklin Templeton Moderate Model Portfolio—Class II		12,614		(3,035	)		9,579			12,291		(2,017	)		10,274
Franklin Templeton Moderately Aggressive Model Portfolio—Class II		11,022		(2,776	)		8,246			9,729		(1,801	)		7,928
Franklin Templeton Moderately Conservative Model Portfolio—Class II		4,384		(2,438	)		1,946			4,888		(1,424	)		3,464
Invesco V.I. EQV International Equity Fund—Series II Shares		670		(834	)		(164	)		427		(450	)		(23	)

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 5—Changes in Units Outstanding (in 000’s) (Continued):


	2023								2022
	Units Issued		Units Redeemed			Net Increase (Decrease)			Units Issued		Units Redeemed			Net Increase (Decrease)
Invesco V.I. Main Street Small Cap Fund^®—Series II Shares		592		(217	)		375			440		(100	)		340
Janus Henderson Enterprise Portfolio—Service Shares		1,152		(457	)		695			690		(451	)		239
Janus Henderson Global Research Portfolio—Institutional Shares		12		(152	)		(140	)		14		(154	)		(140	)
Janus Henderson Global Research Portfolio—Service Shares		575		(365	)		210			402		(231	)		171
MFS^® International Intrinsic Value Portfolio—Service Class		718		(586	)		132			820		(505	)		315
MFS^® Investors Trust Series—Initial Class		2		(49	)		(47	)		3		(26	)		(23	)
MFS^® Investors Trust Series—Service Class		437		(547	)		(110	)		220		(350	)		(130	)
MFS^® Mid Cap Value Portfolio—Service Class		798		(443	)		355			761		(580	)		181
MFS^® Research International Portfolio—Service Class		125		(30	)		95			64		(4	)		60
MFS^® Research Series—Initial Class		8		(38	)		(30	)		2		(27	)		(25	)
MFS^® Research Series—Service Class		295		(363	)		(68	)		160		(276	)		(116	)
Morgan Stanley VIF U.S. Real Estate Portfolio—Class II		793		(612	)		181			597		(491	)		106
Neuberger Berman AMT Mid Cap Growth Portfolio—Class I		2		(5	)		(3	)		1		(3	)		(2	)
Neuberger Berman AMT Mid Cap Growth Portfolio—Class S		1,328		(718	)		610			717		(581	)		136
PIMCO VIT Income Portfolio—Advisor Class		1,426		(342	)		1,084			888		(574	)		314
PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)—Advisor
Class		1,189		(1,745	)		(556	)		562		(1,750	)		(1,188	)
PIMCO VIT Low Duration Portfolio—Advisor Class		1,418		(1,055	)		363			1,690		(1,001	)		689
PIMCO VIT Total Return Portfolio—Advisor Class		3,112		(3,234	)		(122	)		1,551		(2,801	)		(1,250	)
Western Asset Core Plus VIT Portfolio—Class II		141		(117	)		24			131		(2	)		129

Not all investment divisions are available under all policies.

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights:

The following table presents financial highlights for each Investment Division as of December 31, 2023, 2022, 2021, 2020 and 2019:


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
MainStay VP American Century Sustainable Equity—Initial Class	2023	$	34,769		1,269	$	26.08 to $27.51		22.1% to 22.7%		1.3	%
	2022		35,059		1,569		21.36 to 22.43		(9.4%) to (9.0%)		1.7	%
	2021		43,595		1,776		23.57 to 24.64		23.2% to 23.7%		2.5	%
	2020		39,678		2,000		19.13 to 19.91		(0.9%) to (0.4%)		3.5	%
	2019		45,464		2,281		19.30 to 20.00		24.0% to 24.6%		2.3	%
MainStay VP American Century Sustainable Equity—Service Class	2023	$	65,565		2,822	$	11.46 to $26.86		21.8% to 23.7%		1.0	%
	2022		64,259		3,183		9.38 to 21.94		(9.6%) to (5.5%)		1.4	%
	2021		82,966		3,644		16.28 to 24.16		22.9% to 23.7%		2.2	%
	2020		81,906		4,443		13.21 to 19.56		(1.1%) to (0.5%)		3.2	%
	2019		95,756		5,130		13.33 to 19.69		23.7% to 24.5%		1.9	%
MainStay VP Balanced—Service Class	2023	$	119,621		7,273	$	10.42 to $24.71		5.3% to 7.0%		1.7	%
	2022		119,142		7,227		9.87 to 23.35		(7.7%) to (0.9%)		0.8	%
	2021		130,656		6,938		14.14 to 25.17		14.9% to 15.6%		1.2	%
	2020		106,930		6,274		12.28 to 21.80		5.7% to 6.3%		1.8	%
	2019		111,487		6,699		11.59 to 20.53		14.3% to 15.1%		1.7	%
MainStay VP Bond—Initial Class	2023	$	21,146		1,043	$	13.90 to $21.97		3.6% to 4.1%		2.8	%
	2022		23,834		1,221		13.41 to 21.11		(16.0%) to (15.7%)		1.9	%
	2021		32,134		1,396		15.97 to 25.02		(3.2%) to (2.7%)		1.7	%
	2020		35,395		1,497		16.49 to 25.73		6.0% to 6.4%		2.0	%
	2019		36,491		1,644		15.57 to 24.17		7.1% to 7.6%		2.7	%
MainStay VP Bond—Service Class	2023	$	97,671		9,386	$	9.40 to $13.27		3.4% to 5.0%		2.6	%
	2022		99,293		9,822		9.06 to 12.78		(16.2%) to (4.7%)		1.6	%
	2021		131,169		10,835		10.78 to 15.19		(3.4%) to (2.8%)		1.6	%
	2020		139,819		11,073		11.12 to 15.66		5.7% to 6.4%		2.0	%
	2019		113,336		9,256		10.49 to 14.75		6.9% to 7.6%		2.7	%
MainStay VP Candriam Emerging Markets Equity—Initial Class	2023	$	6,524		801	$	7.74 to $8.17		5.3% to 5.8%		1.7	%
	2022		7,119		924		7.35 to 7.72		(30.0%) to (29.7%)		0.9	%
	2021		10,818		987		10.51 to 10.99		(3.8%) to (3.4%)		1.1	%
	2020		12,171		1,073		10.92 to 11.37		23.4% to 24.0%		3.2	%
	2019		11,803		1,290		8.85 to 9.17		17.9% to 18.4%		1.4	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
MainStay VP Candriam Emerging Markets Equity—Service Class	2023	$	23,829		2,966	$	7.51 to $12.02		5.0% to 5.9%		1.4	%
	2022		25,582		3,355		7.16 to 11.37		(30.2%) to (16.1%)		0.6	%
	2021		36,619		3,365		10.25 to 16.19		(4.0%) to (3.4%)		0.8	%
	2020		43,338		3,842		10.68 to 16.76		23.1% to 23.9%		2.9	%
	2019		44,608		4,883		8.68 to 13.52		17.6% to 18.4%		1.1	%
MainStay VP CBRE Global Infrastructure—Service Class	2023	$	8,937		1,084	$	6.58 to $9.91		2.0% to 3.5%		1.6	%
	2022		8,648		1,121		6.46 to 9.57		(7.8%) to (4.3%)		1.3	%
	2021		5,430		676		7.00 to 8.92		13.0% to 13.6%		0.0	%
	2020		3,700		530		6.20 to 7.85		(14.5%) to (14.1%)		6.8	%
	2019		4,406		549		7.25 to 9.14		3.2% to 3.8%		0.0	%
MainStay VP Conservative Allocation—Service Class	2023	$	174,185		11,794	$	10.39 to $18.58		8.0% to 9.6%		2.7	%
	2022		188,130		13,472		9.59 to 17.13		(13.9%) to (3.6%)		4.2	%
	2021		243,298		14,677		12.69 to 19.80		4.9% to 5.6%		1.7	%
	2020		242,878		15,145		12.07 to 18.79		8.0% to 8.7%		1.8	%
	2019		245,989		16,313		11.15 to 17.32		12.4% to 13.2%		2.5	%
MainStay VP Epoch U.S. Equity Yield—Initial Class	2023	$	82,188		2,574	$	28.66 to $38.86		6.7% to 7.2%		2.6	%
	2022		87,746		2,944		26.79 to 36.42		(4.3%) to (3.8%)		2.1	%
	2021		102,041		3,294		27.92 to 38.05		20.6% to 21.2%		2.4	%
	2020		93,361		3,652		23.08 to 31.54		(1.8%) to (1.4%)		2.7	%
	2019		106,293		4,100		23.45 to 32.12		21.9% to 22.5%		3.1	%
MainStay VP Epoch U.S. Equity Yield—Service Class	2023	$	153,097		6,462	$	10.73 to $34.50		6.4% to 8.1%		2.4	%
	2022		162,035		6,742		10.05 to 32.27		(4.5%) to 1.1%		1.9	%
	2021		175,225		6,561		14.93 to 33.65		20.3% to 21.1%		2.2	%
	2020		159,904		7,058		12.38 to 27.83		(2.1%) to (1.4%)		2.5	%
	2019		176,421		7,381		12.61 to 28.29		21.6% to 22.4%		2.9	%
MainStay VP Equity Allocation—Service Class	2023	$	138,824		7,210	$	10.82 to $29.69		15.0% to 16.7%		5.1	%
	2022		135,659		7,782		9.39 to 25.70		(19.4%) to (5.7%)		2.9	%
	2021		183,939		8,338		16.24 to 31.71		17.7% to 18.4%		1.7	%
	2020		181,048		9,593		13.77 to 26.81		12.6% to 13.4%		2.0	%
	2019		182,539		10,808		12.20 to 23.69		22.0% to 22.8%		2.6	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
MainStay VP Fidelity Institutional AM^® Utilities—Initial Class	2023	$	801		39	$	19.60 to $20.68		(3.3%) to (2.8%)		2.0	%
	2022		729		35		20.26 to 21.28		3.6% to 4.1%		2.1	%
	2021		756		37		19.55 to 20.44		15.1% to 15.6%		2.0	%
	2020		886		50		16.99 to 17.68		(2.2%) to (1.8%)		2.5	%
	2019		1,009		56		17.37 to 18.00		21.0% to 21.5%		2.5	%
MainStay VP Fidelity Institutional AM^® Utilities—Service Class	2023	$	253,902		14,768	$	10.05 to $20.19		(3.5%) to (2.0%)		1.7	%
	2022		289,998		15,654		10.39 to 20.82		3.4% to 4.4%		1.8	%
	2021		308,945		16,859		13.62 to 20.04		14.8% to 15.6%		1.8	%
	2020		300,990		18,820		11.83 to 17.37		(2.4%) to (1.8%)		2.3	%
	2019		362,585		21,979		12.10 to 17.72		20.7% to 21.5%		2.2	%
MainStay VP Floating Rate—Service Class	2023	$	217,899		17,025	$	10.84 to $15.11		9.5% to 11.2%		8.0	%
	2022		180,643		15,154		9.88 to 13.73		(3.3%) to (0.7%)		4.6	%
	2021		157,492		12,415		11.19 to 14.13		1.6% to 2.2%		2.9	%
	2020		150,175		11,927		10.99 to 13.85		0.3% to 1.0%		3.6	%
	2019		173,643		13,764		10.93 to 13.74		6.2% to 6.9%		4.7	%
MainStay VP Growth Allocation—Service Class	2023	$	260,682		13,532	$	10.78 to $25.79		13.1% to 14.9%		3.7	%
	2022		265,556		15,117		9.51 to 22.69		(16.2%) to (4.4%)		3.2	%
	2021		356,952		16,717		15.04 to 26.94		13.6% to 14.3%		2.2	%
	2020		368,873		19,447		13.21 to 23.60		10.6% to 11.3%		2.6	%
	2019		400,492		23,196		11.91 to 21.23		18.9% to 19.7%		2.9	%
MainStay VP Income Builder—Initial Class	2023	$	38,284		1,042	$	17.40 to $41.06		8.0% to 8.5%		3.3	%
	2022		41,398		1,217		16.06 to 37.84		(15.1%) to (14.7%)		2.7	%
	2021		54,052		1,364		18.87 to 44.37		8.5% to 9.0%		2.9	%
	2020		53,336		1,467		17.35 to 40.71		6.0% to 6.5%		2.5	%
	2019		54,940		1,618		16.33 to 38.24		15.9% to 16.4%		4.8	%
MainStay VP Income Builder—Service Class	2023	$	127,354		8,852	$	10.33 to $24.68		7.8% to 9.4%		3.1	%
	2022		123,568		8,881		9.53 to 22.81		(15.3%) to (3.5%)		2.5	%
	2021		147,239		8,610		11.19 to 26.82		8.2% to 8.9%		2.7	%
	2020		131,534		7,957		12.53 to 24.69		5.7% to 6.4%		2.3	%
	2019		122,996		7,495		11.82 to 23.25		15.6% to 16.4%		4.6	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
MainStay VP IQ Hedge Multi-Strategy—Service Class	2023	$	43,177		4,792	$	7.81 to $10.66		8.1% to 9.6%		4.4	%
	2022		44,468		5,474		7.22 to 9.72		(10.3%) to (2.8%)		1.6	%
	2021		57,488		6,454		8.05 to 10.09		(2.5%) to (2.0%)		0.0	%
	2020		61,029		6,737		8.26 to 10.30		3.3% to 3.9%		1.8	%
	2019		66,782		7,684		8.00 to 9.91		6.4% to 6.9%		1.4	%
MainStay VP Janus Henderson Balanced—Initial Class	2023	$	128,156		5,516	$	22.08 to $23.43		13.4% to 14.0%		1.4	%
	2022		128,571		6,304		19.47 to 20.55		(17.9%) to (17.5%)		1.1	%
	2021		172,803		6,985		23.72 to 24.92		15.2% to 15.8%		1.3	%
	2020		164,644		7,700		20.59 to 21.52		12.2% to 12.8%		1.8	%
	2019		165,768		8,738		18.35 to 19.08		20.7% to 21.3%		1.8	%
MainStay VP Janus Henderson Balanced—Service Class	2023	$	447,274		28,130	$	10.76 to $22.74		13.1% to 14.9%		1.2	%
	2022		353,280		23,652		9.48 to 20.00		(18.1%) to (4.7%)		0.9	%
	2021		380,770		18,913		11.94 to 24.31		14.9% to 15.7%		1.1	%
	2020		300,355		16,410		15.46 to 21.05		11.9% to 12.7%		1.7	%
	2019		263,000		15,736		13.77 to 18.71		20.4% to 21.2%		1.6	%
MainStay VP MacKay Convertible—Initial Class	2023	$	54,138		1,022	$	31.53 to $60.64		6.9% to 7.3%		2.2	%
	2022		58,294		1,188		29.43 to 56.49		(14.3%) to (13.9%)		3.4	%
	2021		79,068		1,403		34.25 to 65.60		7.2% to 7.7%		1.2	%
	2020		80,316		1,534		31.85 to 60.89		33.6% to 34.2%		0.7	%
	2019		65,591		1,690		23.79 to 45.39		20.2% to 20.8%		1.4	%
MainStay VP MacKay Convertible—Service Class	2023	$	285,937		14,491	$	10.05 to $37.73		6.6% to 8.3%		1.9	%
	2022		261,221		12,973		9.40 to 35.24		(14.5%) to (5.5%)		3.1	%
	2021		327,903		13,191		18.65 to 41.02		7.0% to 7.7%		0.9	%
	2020		287,096		11,814		17.39 to 38.17		33.2% to 34.1%		0.5	%
	2019		223,172		11,663		13.02 to 28.53		19.9% to 20.7%		1.2	%
MainStay VP MacKay Government—Initial Class	2023	$	13,945		810	$	11.88 to $18.74		3.1% to 3.5%		2.4	%
	2022		15,653		941		11.52 to 18.10		(12.9%) to (12.5%)		1.8	%
	2021		20,289		1,069		13.23 to 20.69		(3.3%) to (2.9%)		1.5	%
	2020		22,972		1,181		13.68 to 21.30		3.0% to 3.5%		1.4	%
	2019		23,639		1,258		13.28 to 20.58		3.5% to 4.0%		2.0	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
MainStay VP MacKay Government—Service Class	2023	$	51,087		5,247	$	8.88 to $11.45		2.8% to 4.4%		2.2	%
	2022		52,045		5,492		8.62 to 11.08		(13.1%) to (4.4%)		1.5	%
	2021		67,743		6,236		9.90 to 12.70		(3.5%) to (2.9%)		1.3	%
	2020		79,527		7,079		10.24 to 13.11		2.8% to 3.5%		1.4	%
	2019		60,199		5,386		9.93 to 12.70		3.2% to 3.9%		1.9	%
MainStay VP MacKay High Yield Corporate Bond—Initial Class	2023	$	94,587		2,050	$	30.64 to $51.17		9.8% to 10.3%		5.6	%
	2022		105,327		2,538		27.83 to 46.38		(9.7%) to (9.3%)		5.2	%
	2021		134,388		2,937		30.76 to 51.16		3.6% to 4.0%		4.7	%
	2020		141,115		3,215		29.62 to 49.17		3.5% to 3.9%		5.7	%
	2019		158,795		3,771		28.55 to 47.31		11.1% to 11.6%		5.5	%
MainStay VP MacKay High Yield Corporate Bond—Service Class	2023	$	646,577		42,046	$	10.70 to $27.19		9.5% to 11.3%		5.6	%
	2022		612,170		41,910		9.74 to 24.71		(10.0%) to (2.1%)		5.1	%
	2021		749,789		45,249		12.88 to 27.32		3.3% to 4.0%		4.7	%
	2020		713,678		43,047		12.44 to 26.33		3.2% to 3.9%		5.7	%
	2019		711,474		42,306		12.02 to 25.39		10.9% to 11.6%		5.5	%
MainStay VP MacKay Strategic Bond—Service Class	2023	$	135,590		11,798	$	10.52 to $12.53		8.0% to 9.6%		4.7	%
	2022		137,334		12,829		9.73 to 11.55		(9.1%) to (2.2%)		3.3	%
	2021		179,599		15,229		10.91 to 12.65		(0.1%) to 0.5%		2.2	%
	2020		188,416		15,962		10.90 to 12.61		4.0% to 4.6%		2.4	%
	2019		202,265		17,833		10.46 to 12.07		4.9% to 5.5%		3.3	%
MainStay VP Moderate Allocation—Service Class	2023	$	260,193		15,522	$	10.57 to $21.73		10.7% to 12.3%		2.8	%
	2022		262,929		16,837		9.53 to 19.54		(15.5%) to (4.2%)		3.4	%
	2021		336,569		17,961		13.87 to 23.00		9.1% to 9.8%		0.9	%
	2020		333,590		19,255		12.68 to 20.99		9.3% to 10.0%		2.2	%
	2019		344,251		21,443		11.58 to 19.11		15.8% to 16.6%		2.8	%
MainStay VP Natural Resources—Initial Class	2023	$	103,289		8,463	$	10.39 to $17.88		0.1% to 1.6%		2.1	%
	2022		123,568		10,169		10.36 to 17.78		3.6% to 34.2%		1.1	%
	2021		92,201		10,522		7.99 to 13.27		35.5% to 36.4%		1.2	%
	2020		73,976		11,685		5.89 to 9.74		4.9% to 5.6%		2.6	%
	2019		78,482		13,186		5.62 to 9.24		14.5% to 15.2%		0.7	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
MainStay VP PIMCO Real Return—Service Class	2023	$	86,925		8,440	$	9.50 to $10.74		1.7% to 3.2%		8.3	%
	2022		89,858		8,913		9.33 to 10.52		(13.2%) to (6.2%)		5.7	%
	2021		108,751		9,416		10.77 to 12.08		3.3% to 3.9%		0.3	%
	2020		116,509		10,560		10.43 to 11.64		9.6% to 10.2%		2.0	%
	2019		81,335		8,142		9.50 to 10.58		6.8% to 7.3%		3.0	%
MainStay VP PineStone International Equity—Initial Class	2023	$	12,443		426	$	19.52 to $33.17		2.4% to 2.8%		0.0	%
	2022		14,098		500		19.02 to 32.26		(27.8%) to (27.5%)		0.3	%
	2021		21,666		569		26.27 to 44.48		10.2% to 10.7%		0.1	%
	2020		21,395		625		23.78 to 40.19		18.6% to 19.2%		0.7	%
	2019		21,538		754		20.00 to 33.73		22.5% to 23.1%		0.4	%
MainStay VP PineStone International Equity—Service Class	2023	$	65,938		4,001	$	9.37 to $23.70		2.1% to 3.7%		0.0	%
	2022		67,969		4,060		9.16 to 23.11		(28.0%) to (7.9%)		0.0	%
	2021		91,845		3,849		16.43 to 31.94		9.9% to 10.6%		0.0	%
	2020		90,859		4,162		14.91 to 28.93		18.3% to 19.1%		0.5	%
	2019		90,448		4,828		12.57 to 24.34		22.2% to 23.0%		0.2	%
MainStay VP S&P 500 Index—Initial Class	2023	$	179,049		2,206	$	33.87 to $95.55		23.8% to 24.4%		1.4	%
	2022		163,253		2,524		27.28 to 76.81		(19.7%) to (19.3%)		1.4	%
	2021		224,120		2,799		33.89 to 95.22		26.2% to 26.8%		1.2	%
	2020		192,592		3,055		26.79 to 75.12		16.1% to 16.6%		1.4	%
	2019		184,277		3,420		23.02 to 64.42		28.8% to 29.4%		1.7	%
MainStay VP S&P 500 Index—Service Class	2023	$	667,452		30,408	$	11.47 to $49.32		23.5% to 25.5%		1.2	%
	2022		482,717		23,640		9.26 to 39.75		(19.9%) to (6.9%)		1.2	%
	2021		545,511		18,749		13.29 to 49.40		25.9% to 26.7%		1.0	%
	2020		417,159		16,972		17.77 to 39.07		15.8% to 16.5%		1.3	%
	2019		361,362		16,142		15.31 to 33.59		28.5% to 29.4%		1.6	%
MainStay VP Small Cap Growth—Initial Class	2023	$	31,971		1,404	$	21.71 to $23.04		13.4% to 14.0%		0.0	%
	2022		32,923		1,646		19.15 to 20.22		(27.8%) to (27.5%)		0.0	%
	2021		48,746		1,766		26.54 to 27.88		8.3% to 8.8%		0.0	%
	2020		50,906		2,006		24.50 to 25.62		37.9% to 38.6%		0.0	%
	2019		43,936		2,397		17.77 to 18.48		23.3% to 23.9%		0.0	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
MainStay VP Small Cap Growth—Service Class	2023	$	38,662		2,142	$	10.40 to $23.73		13.1% to 14.9%		0.0	%
	2022		31,637		1,833		9.17 to 20.87		(28.0%) to (7.8%)		0.0	%
	2021		46,525		1,879		20.50 to 28.85		8.0% to 8.7%		0.0	%
	2020		43,174		1,866		18.93 to 26.58		37.6% to 38.5%		0.0	%
	2019		35,240		2,089		13.73 to 19.22		23.0% to 23.8%		0.0	%
MainStay VP U.S. Government Money Market—Initial Class	2023	$	190,678		58,351	$	0.87 to $10.56		2.9% to 4.5%		4.7	%
	2022		217,454		82,950		0.85 to 10.11		(0.6%) to 1.1%		1.4	%
	2021		138,101		61,269		0.85 to 9.71		(1.8%) to (1.2%)		0.0	%
	2020		187,903		87,254		0.87 to 9.82		(1.6%) to (1.0%)		0.1	%
	2019		83,325		50,644		0.90 to 9.92		0.0% to 0.6%		1.8	%
MainStay VP Wellington Growth—Initial Class	2023	$	75,261		1,445	$	18.64 to $56.59		36.1% to 36.7%		0.0	%
	2022		61,761		1,628		13.66 to 41.40		(34.4%) to (34.1%)		0.0	%
	2021		104,427		1,819		20.77 to 62.82		17.6% to 18.1%		0.3	%
	2020		98,253		2,024		17.63 to 53.20		29.9% to 30.5%		0.6	%
	2019		84,433		2,286		13.54 to 40.78		27.6% to 28.2%		0.5	%
MainStay VP Wellington Growth—Service Class	2023	$	19,161		563	$	11.54 to $37.36		35.7% to 36.9%		0.0	%
	2022		16,495		652		8.48 to 27.39		(34.6%) to (15.2%)		0.0	%
	2021		26,860		694		22.46 to 41.64		17.3% to 18.0%		0.1	%
	2020		26,999		821		19.11 to 35.33		29.6% to 30.4%		0.3	%
	2019		25,575		1,012		14.71 to 27.14		27.3% to 28.1%		0.3	%
MainStay VP Wellington Mid Cap—Initial Class	2023	$	30,359		726	$	41.73 to $45.98		11.6% to 12.1%		0.1	%
	2022		31,556		845		37.29 to 41.20		(22.0%) to (21.6%)		0.0	%
	2021		44,799		940		47.61 to 52.80		17.8% to 18.3%		0.6	%
	2020		41,787		1,037		40.24 to 44.82		9.2% to 9.7%		1.0	%
	2019		44,822		1,221		36.67 to 41.03		20.6% to 21.2%		1.1	%
MainStay VP Wellington Mid Cap—Service Class	2023	$	136,343		6,269	$	10.37 to $43.79		11.3% to 13.1%		0.0	%
	2022		131,081		6,338		9.29 to 39.15		(22.2%) to (6.6%)		0.0	%
	2021		175,493		6,327		15.80 to 50.08		17.5% to 18.3%		0.4	%
	2020		168,683		7,048		13.41 to 42.42		9.0% to 9.7%		0.7	%
	2019		164,038		6,885		12.27 to 38.76		20.3% to 21.1%		0.9	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
MainStay VP Wellington Small Cap—Initial Class	2023	$	15,406		1,371	$	11.03 to $11.26		11.8% to 12.3%		0.8	%
	2022		15,671		1,565		9.86 to 10.03		(22.3%) to (21.9%)		1.1	%
	2021		22,586		1,761		12.69 to 12.84		15.9% to 16.4%		0.4	%
	2020		21,106		1,914		10.95 to 11.03		8.2% to 8.7%		0.1	%
	2019		22,343		2,202		10.12 to 10.15		1.2% to 1.5%		0.2	%
MainStay VP Wellington Small Cap—Service Class	2023	$	70,897		5,171	$	10.16 to $14.25		11.5% to 13.3%		0.6	%
	2022		66,745		5,366		9.09 to 12.69		(22.5%) to (8.6%)		0.8	%
	2021		93,299		5,815		14.92 to 16.27		15.6% to 16.3%		0.2	%
	2020		90,266		6,530		12.91 to 13.99		7.9% to 8.6%		0.0	%
	2019		95,245		7,469		11.96 to 12.87		15.4% to 16.1%		0.1	%
MainStay VP Wellington U.S. Equity—Initial Class	2023	$	68,825		933	$	28.94 to $85.73		22.3% to 22.9%		0.9	%
	2022		63,477		1,064		23.61 to 69.78		(22.1%) to (21.8%)		0.6	%
	2021		90,697		1,195		30.24 to 89.21		26.4% to 27.0%		0.9	%
	2020		80,217		1,335		23.86 to 70.25		13.4% to 13.9%		1.6	%
	2019		79,317		1,514		20.98 to 61.65		23.9% to 24.5%		1.5	%
MainStay VP Wellington U.S. Equity—Service Class	2023	$	69,532		2,800	$	11.22 to $45.72		22.0% to 23.9%		0.7	%
	2022		60,476		2,714		9.17 to 37.30		(22.3%) to (7.8%)		0.4	%
	2021		77,999		2,565		20.52 to 47.81		26.1% to 26.9%		0.7	%
	2020		66,695		2,695		16.23 to 37.74		13.2% to 13.9%		1.3	%
	2019		66,132		2,931		14.31 to 33.21		23.6% to 29.8%		1.2	%
MainStay VP Winslow Large Cap Growth—Initial Class	2023	$	47,003		800	$	31.06 to $67.65		40.4% to 41.1%		0.0	%
	2022		38,112		912		22.06 to 47.95		(32.4%) to (32.1%)		0.0	%
	2021		63,517		1,040		32.56 to 70.64		22.2% to 22.8%		0.0	%
	2020		57,759		1,172		26.57 to 57.53		34.6% to 35.3%		0.0	%
	2019		47,811		1,314		19.69 to 42.54		31.2% to 31.8%		0.0	%
MainStay VP Winslow Large Cap Growth—Service Class	2023	$	285,878		9,685	$	12.41 to $57.84		40.1% to 42.3%		0.0	%
	2022		216,396		9,317		8.84 to 41.12		(32.6%) to (11.1%)		0.0	%
	2021		300,507		8,003		27.70 to 60.81		21.9% to 22.7%		0.0	%
	2020		251,602		7,805		22.66 to 49.73		34.3% to 35.2%		0.0	%
	2019		190,458		7,409		16.83 to 36.91		30.9% to 31.7%		0.0	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Unit Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
AB VPS Relative Value Portfolio—Class B	2023	$	10,913		980	$	10.96 to $11.23		9.8% to 11.4%		1.4	%
	2022		3,204		319		9.99 to 10.07		(0.1%) to 0.7%		0.7	%
American Funds IS Asset Allocation Fund—Class 4	2023	$	148,131		11,424	$	10.78 to $13.73		12.1% to 13.7%		2.1	%
	2022		117,207		10,045		9.60 to 12.18		(15.2%) to (3.5%)		1.8	%
	2021		113,697		8,170		11.76 to 14.28		12.9% to 13.5%		1.6	%
	2020		63,845		5,095		12.40 to 12.59		10.2% to 10.8%		1.6	%
	2019		38,478		3,399		11.25 to 11.36		18.8% to 19.5%		2.2	%
American Funds IS The Bond Fund of America^®—Class 4	2023	$	6,920		697	$	9.79 to $10.03		2.9% to 4.4%		4.6	%
	2022		2,384		249		9.52 to 9.61		(4.8%) to (3.9%)		3.8	%
American Funds IS Global Small Capitalization Fund—Class 4	2023	$	15,848		1,106	$	10.31 to $15.63		13.8% to 15.4%		0.0	%
	2022		13,061		1,015		9.05 to 13.66		(30.9%) to (9.1%)		0.0	%
	2021		15,330		810		17.05 to 19.66		4.6% to 5.2%		0.0	%
	2020		12,259		685		16.30 to 18.70		27.1% to 27.8%		0.1	%
	2019		9,946		716		12.82 to 14.62		29.0% to 29.7%		0.0	%
American Funds IS Growth Fund—Class 4	2023	$	183,668		12,193	$	11.60 to $21.99		35.8% to 37.7%		0.2	%
	2022		77,013		5,801		8.52 to 16.11		(31.3%) to (14.2%)		0.1	%
	2021		67,588		2,913		22.80 to 23.33		19.6% to 20.2%		0.1	%
	2020		41,794		2,164		19.07 to 19.40		49.1% to 49.9%		0.2	%
	2019		18,369		1,424		12.79 to 12.94		28.2% to 28.9%		0.6	%
American Funds IS New World Fund^®—Class 4	2023	$	50,463		3,495	$	10.74 to $15.89		13.7% to 15.3%		1.2	%
	2022		46,388		3,591		9.43 to 13.92		(23.6%) to (5.2%)		1.1	%
	2021		56,763		3,339		15.10 to 18.15		2.8% to 3.4%		0.7	%
	2020		56,063		3,424		14.69 to 17.59		21.2% to 21.8%		0.0	%
	2019		45,811		3,439		12.12 to 14.46		26.6% to 27.3%		0.8	%
American Funds IS Washington Mutual Investors Fund^SM—Class 4	2023	$	134,228		9,455	$	11.31 to $16.06		14.9% to 16.6%		1.8	%
	2022		93,039		7,088		9.81 to 13.90		(10.3%) to (1.2%)		1.9	%
	2021		83,832		5,471		15.05 to 15.40		25.3% to 26.0%		1.3	%
	2020		62,731		5,154		12.01 to 12.22		6.6% to 7.2%		1.7	%
	2019		42,548		3,743		11.27 to 11.40		18.9% to 19.6%		2.3	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
BlackRock^® Global Allocation V.I. Fund—Class III	2023	$	119,441		9,180	$	10.14 to $15.96		10.5% to 12.2%		2.6	%
	2022		106,592		8,776		9.13 to 14.38		(17.5%) to (5.0%)		0.0	%
	2021		121,690		8,002		11.02 to 17.37		4.6% to 5.1%		0.8	%
	2020		108,093		7,208		13.36 to 16.54		18.6% to 19.3%		1.2	%
	2019		110,228		8,699		11.25 to 13.89		15.7% to 16.4%		1.2	%
BlackRock^® High Yield V.I. Fund—Class III	2023	$	96,305		7,547	$	10.74 to $13.31		11.0% to 12.6%		6.3	%
	2022		79,685		6,853		9.67 to 11.93		(12.1%) to (2.8%)		5.1	%
	2021		89,683		6,766		12.67 to 13.50		3.4% to 4.0%		4.2	%
	2020		65,936		5,187		12.25 to 12.98		5.2% to 5.8%		5.0	%
	2019		51,028		4,257		11.64 to 12.28		12.9% to 13.5%		5.1	%
BNY Mellon IP Technology Growth Portfolio—Initial Shares	2023	$	20,725		419	$	47.56 to $72.12		56.5% to 57.2%		0.0	%
	2022		13,458		428		30.31 to 46.08		(47.4%) to (47.1%)		0.0	%
	2021		28,033		471		57.45 to 87.55		10.9% to 11.4%		0.0	%
	2020		28,831		540		51.69 to 78.98		66.8% to 67.6%		0.2	%
	2019		19,362		607		30.91 to 47.34		23.5% to 24.1%		0.0	%
BNY Mellon IP Technology Growth Portfolio—Service Shares	2023	$	176,934		6,141	$	11.87 to $62.36		56.1% to 58.5%		0.0	%
	2022		111,218		5,385		7.58 to 39.77		(47.5%) to (23.8%)		0.0	%
	2021		183,132		4,158		31.88 to 75.41		10.6% to 11.3%		0.0	%
	2020		162,920		3,872		28.76 to 67.89		66.5% to 67.6%		0.1	%
	2019		102,678		3,841		17.23 to 40.60		23.2% to 24.0%		0.0	%
BNY Mellon Sustainable U.S. Equity Portfolio—Service Shares	2023	$	1,586		141	$	11.11 to $11.35		21.5% to 23.1%		0.3	%
	2022		540		59		9.15 to 9.23		(8.5%) to (7.7%)		0.0	%
ClearBridge Variable Appreciation Portfolio—Class II	2023	$	22,229		1,244	$	11.39 to $19.29		17.3% to 19.0%		0.8	%
	2022		17,879		1,150		9.69 to 16.35		(14.2%) to (2.6%)		0.8	%
	2021		19,903		1,056		18.46 to 18.94		21.2% to 21.9%		0.4	%
	2020		15,527		1,004		15.23 to 15.54		12.5% to 13.1%		0.9	%
	2019		11,486		839		13.54 to 13.74		27.3% to 28.0%		1.7	%
Columbia Variable Portfolio—Commodity Strategy Fund—Class 2	2023	$	1,138		105	$	8.19 to $12.72		(8.7%) to (8.1%)		22.0	%
	2022		1,336		109		10.86 to 13.86		16.6% to 17.3%		24.6	%
	2021		1,547		149		9.31 to 11.82		29.7% to 30.4%		0.0	%
	2020		1,402		176		7.18 to 9.06		(3.3%) to (2.7%)		22.0	%
	2019		1,464		182		7.42 to 9.32		5.9% to 6.5%		0.9	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
Columbia Variable Portfolio—Emerging Markets Bond Fund—Class 2	2023	$	34,686		3,299	$	10.14 to $10.69		8.1% to 9.6%		5.2	%
	2022		34,289		3,543		9.38 to 10.17		(17.6%) to (2.5%)		4.1	%
	2021		42,781		3,659		11.38 to 12.29		(4.1%) to (3.6%)		3.7	%
	2020		41,466		3,416		11.87 to 12.77		5.3% to 5.9%		3.3	%
	2019		34,358		2,996		11.28 to 11.54		10.1% to 10.7%		4.8	%
Columbia Variable Portfolio—Intermediate Bond Fund—Class 2	2023	$	1,298		132	$	9.66 to $9.87		4.4% to 5.8%		1.4	%
	2022		269		29		9.25 to 9.34		(7.5%) to (6.6%)		2.2	%
Columbia Variable Portfolio—Small Cap Value Fund—Class 2	2023	$	44,477		1,949	$	11.70 to $36.89		19.4% to 21.3%		0.4	%
	2022		38,491		1,842		9.77 to 30.73		(10.6%) to (1.8%)		0.5	%
	2021		46,652		1,843		17.36 to 34.22		26.4% to 27.3%		0.5	%
	2020		34,467		1,671		13.69 to 26.92		6.6% to 7.3%		0.3	%
	2019		35,741		1,764		12.81 to 25.13		18.8% to 19.5%		0.3	%
Delaware VIP^® Small Cap Value Series—Service Class	2023	$	16,582		1,341	$	10.32 to $12.86		7.2% to 8.8%		0.6	%
	2022		13,816		1,187		9.61 to 11.93		(13.9%) to (3.3%)		0.5	%
	2021		16,389		1,197		13.47 to 13.78		31.7% to 32.4%		0.5	%
	2020		7,183		693		10.23 to 10.41		(3.9%) to (3.3%)		0.9	%
	2019		3,883		362		10.64 to 10.77		25.5% to 26.2%		0.6	%
DWS Alternative Asset Allocation VIP—Class B	2023	$	63,500		5,503	$	9.72 to $11.83		3.8% to 5.4%		6.4	%
	2022		63,981		5,738		9.35 to 11.33		(9.3%) to (6.0%)		7.0	%
	2021		73,790		5,981		12.04 to 12.43		10.4% to 11.0%		1.7	%
	2020		72,333		6,503		10.91 to 11.19		3.5% to 4.1%		2.3	%
	2019		55,025		5,144		10.54 to 10.76		12.4% to 13.0%		3.0	%
Fidelity^® VIP Bond Index Portfolio—Service Class 2	2023	$	51,075		5,922	$	8.44 to $10.08		3.3% to 4.8%		2.3	%
	2022		45,746		5,533		8.16 to 9.61		(14.9%) to (3.9%)		1.4	%
	2021		55,134		5,720		9.59 to 9.66		(3.9%) to (3.4%)		0.8	%
	2020		54,497		5,455		9.99 to 9.99		(0.1%) to (0.1%)		0.9	%
Fidelity^® VIP Contrafund^SM Portfolio—Initial Class	2023	$	124,479		1,383	$	49.02 to $101.02		31.0% to 31.6%		0.5	%
	2022		108,370		1,587		37.32 to 76.76		(27.7%) to (27.3%)		0.5	%
	2021		165,185		1,767		51.46 to 105.64		25.5% to 26.1%		0.1	%
	2020		143,799		1,946		40.91 to 83.80		28.2% to 28.8%		0.2	%
	2019		129,927		2,277		31.84 to 65.09		29.2% to 29.7%		0.4	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
Fidelity^® VIP Contrafund^SM Portfolio—Service Class 2	2023	$	383,129		13,656	$	11.85 to $60.96		30.7% to 32.7%		0.3	%
	2022		322,650		13,461		9.05 to 46.46		(27.8%) to (9.1%)		0.3	%
	2021		447,433		12,495		23.16 to 64.12		25.2% to 26.0%		0.0	%
	2020		393,608		13,307		18.46 to 51.02		27.8% to 28.7%		0.1	%
	2019		365,880		15,292		14.40 to 39.75		28.9% to 29.7%		0.2	%
Fidelity^® VIP Emerging Markets Portfolio—Service Class 2	2023	$	15,529		1,414	$	10.24 to $11.18		7.6% to 9.2%		2.1	%
	2022		12,754		1,246		9.50 to 10.33		(21.8%) to (4.5%)		1.7	%
	2021		13,658		1,045		12.87 to 13.13		(4.1%) to (3.6%)		2.2	%
	2020		8,702		641		13.42 to 13.62		28.6% to 29.3%		0.7	%
	2019		4,563		434		10.44 to 10.53		27.0% to 27.7%		1.7	%
Fidelity^® VIP Equity-Income Portfolio^SM—Initial Class	2023	$	41,546		878	$	31.20 to $52.02		8.6% to 9.1%		1.8	%
	2022		44,298		1,025		28.72 to 47.68		(6.7%) to (6.3%)		1.8	%
	2021		51,833		1,124		30.78 to 50.87		22.6% to 23.2%		1.9	%
	2020		46,858		1,251		25.11 to 41.31		0.3% to 5.2%		1.8	%
	2019		50,417		1,425		23.97 to 39.26		25.1% to 25.7%		2.0	%
Fidelity^® VIP Equity-Income Portfolio^SM—Service Class 2	2023	$	159,509		7,866	$	10.80 to $35.48		8.4% to 10.0%		1.8	%
	2022		146,349		7,170		9.95 to 32.60		(7.0%) to (0.0%)		1.8	%
	2021		150,101		6,247		17.10 to 34.89		22.3% to 23.1%		1.7	%
	2020		123,481		6,164		13.95 to 28.39		4.5% to 5.2%		1.7	%
	2019		115,495		5,662		13.31 to 27.05		24.8% to 25.6%		1.8	%
Fidelity^® VIP FundsManager^® 60% Portfolio—Investor Class	2023	$	934,862		74,991	$	12.47 to $12.88		12.0% to 12.8%		2.4	%
	2022		798,095		71,721		11.13 to 11.42		(16.7%) to (16.1%)		1.9	%
	2021		760,454		56,956		13.35 to 13.60		10.2% to 11.0%		1.2	%
	2020		497,417		41,067		12.11 to 12.11		13.0% to 13.0%		1.1	%
	2019		250,095		23,323		10.72 to 10.72		7.2% to 7.2%		2.0	%
Fidelity^® VIP FundsManager^® 60% Portfolio—Service Class	2023	$	41,957		3,455	$	10.69 to $12.89		12.2% to 13.8%		2.6	%
	2022		28,198		2,586		9.47 to 11.43		(16.5%) to (4.8%)		2.0	%
	2021		25,837		1,957		11.56 to 13.61		10.4% to 11.0%		1.4	%
	2020		9,963		815		12.15 to 12.26		13.1% to 13.8%		1.2	%
	2019		3,992		371		10.74 to 10.78		7.4% to 7.8%		1.8	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
Fidelity^® VIP Government Money Market Portfolio—Investor Class	2023	$	—		—	$	—		—		—
	2022		—		—		—		—		—
	2021		—		—		—		—		—
	2020		—		—		—		—		—
	2019		—		—		—		—		—
Fidelity^® VIP Growth Opportunities Portfolio—Service Class 2	2023	$	240,799		8,557	$	11.80 to $37.48		42.8% to 44.9%		0.0	%
	2022		152,398		6,935		8.25 to 26.14		(39.4%) to (17.0%)		0.0	%
	2021		223,339		5,661		35.85 to 42.96		9.7% to 10.3%		0.0	%
	2020		171,507		4,750		32.62 to 38.99		65.3% to 66.2%		0.0	%
	2019		87,880		4,008		19.70 to 23.49		38.1% to 38.8%		0.0	%
Fidelity^® VIP Health Care Portfolio—Service Class 2	2023	$	64,087		4,686	$	10.71 to $14.25		2.2% to 3.7%		0.0	%
	2022		53,374		3,922		10.47 to 13.86		(14.1%) to 5.2%		0.0	%
	2021		58,062		3,630		15.82 to 16.06		9.5% to 10.1%		0.0	%
	2020		30,925		2,126		14.45 to 14.58		19.2% to 19.8%		0.6	%
	2019		4,613		379		12.12 to 12.17		21.2% to 21.7%		0.3	%
Fidelity^® VIP International Index Portfolio—Service Class 2	2023	$	24,975		2,249	$	10.59 to $11.72		13.9% to 15.5%		3.1	%
	2022		12,040		1,233		9.26 to 10.24		(17.7%) to (4.3%)		2.5	%
	2021		8,435		706		11.20 to 12.37		5.6% to 6.2%		3.3	%
	2020		2,789		240		11.54 to 11.65		8.4% to 9.0%		1.9	%
	2019		1,025		96		10.64 to 10.68		6.4% to 6.8%		3.9	%
Fidelity^® VIP Investment Grade Bond Portfolio—Service Class 2	2023	$	5,275		524	$	9.91 to $10.15		4.2% to 5.7%		3.3	%
	2022		1,278		134		9.52 to 9.60		(4.8%) to (4.0%)		4.4	%
Fidelity^® VIP Mid Cap Portfolio—Service Class 2	2023	$	124,193		4,875	$	10.97 to $52.24		12.7% to 14.5%		0.4	%
	2022		115,157		4,511		9.71 to 46.17		(16.5%) to (2.4%)		0.3	%
	2021		146,175		4,474		17.66 to 55.09		23.0% to 23.8%		0.4	%
	2020		127,589		4,529		14.32 to 44.60		15.7% to 16.5%		0.4	%
	2019		128,805		5,067		12.34 to 38.39		20.9% to 21.7%		0.7	%
Franklin Templeton Aggressive Model Portfolio—Class II	2023	$	136,861		10,322	$	10.93 to $14.59		16.0% to 17.7%		1.1	%
	2022		84,897		7,318		9.41 to 12.51		(18.3%) to (5.4%)		2.9	%
	2021		52,648		3,575		12.33 to 15.21		17.4% to 18.1%		2.1	%
	2020		16,536		1,284		12.84 to 12.88		28.4% to 28.8%		1.8	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
Franklin Templeton Conservative Model Portfolio—Class II	2023	$	66,298		6,469	$	9.61 to $10.39		6.4% to 8.0%		3.4	%
	2022		53,493		5,561		8.99 to 9.70		(14.7%) to (4.5%)		2.6	%
	2021		46,070		4,096		10.49 to 11.31		2.9% to 3.5%		2.4	%
	2020		21,417		1,961		10.90 to 10.94		9.0% to 9.4%		2.5	%
Franklin Templeton Moderate Model Portfolio—Class II	2023	$	475,410		40,262	$	10.52 to $12.26		11.2% to 12.8%		1.9	%
	2022		328,984		30,683		9.44 to 10.97		(16.5%) to (5.1%)		3.0	%
	2021		264,265		20,409		11.40 to 13.05		10.4% to 11.0%		2.4	%
	2020		75,114		6,389		11.72 to 11.76		17.2% to 17.6%		1.8	%
Franklin Templeton Moderately Aggressive Model Portfolio—Class II	2023	$	381,824		30,589	$	10.74 to $13.21		13.5% to 15.2%		1.5	%
	2022		249,079		22,343		9.44 to 11.57		(17.5%) to (5.1%)		2.7	%
	2021		198,181		14,415		11.72 to 13.95		12.6% to 13.2%		2.4	%
	2020		52,106		4,231		12.28 to 12.32		22.8% to 23.2%		1.8	%
Franklin Templeton Moderately Conservative Model Portfolio—Class II	2023	$	161,819		14,386	$	10.26 to $11.51		8.4% to 10.0%		2.6	%
	2022		129,398		12,440		9.42 to 10.56		(14.8%) to (4.2%)		2.7	%
	2021		110,091		8,976		11.01 to 12.32		7.1% to 7.7%		2.3	%
	2020		41,342		3,615		11.41 to 11.45		14.1% to 14.5%		2.1	%
Invesco V.I. EQV International Equity Fund—Series II Shares	2023	$	30,548		2,368	$	11.33 to $13.98		15.8% to 17.5%		0.0	%
	2022		28,359		2,532		9.77 to 12.02		(19.9%) to (1.8%)		1.5	%
	2021		35,598		2,555		12.91 to 14.95		3.8% to 4.3%		1.1	%
	2020		35,610		2,670		12.42 to 14.35		11.8% to 12.4%		2.1	%
	2019		35,220		2,974		11.10 to 12.79		26.0% to 26.7%		1.3	%
Invesco V.I. Main Street Small Cap Fund^®—Series II Shares	2023	$	16,952		1,075	$	11.12 to $17.90		15.8% to 17.5%		1.0	%
	2022		9,916		700		9.59 to 15.37		(17.5%) to (3.6%)		0.3	%
	2021		6,650		360		18.36 to 18.53		20.1% to 20.8%		0.2	%
	2020		463		30		15.30 to 15.34		53.0% to 53.4%		0.4	%
Janus Henderson Enterprise Portfolio—Service Shares	2023	$	50,525		3,170	$	11.20 to $17.48		15.7% to 17.4%		0.1	%
	2022		35,643		2,475		9.66 to 15.02		(17.6%) to (2.8%)		0.1	%
	2021		40,322		2,236		17.72 to 18.13		14.5% to 15.2%		0.2	%
	2020		29,462		1,881		15.48 to 15.74		17.1% to 17.8%		0.0	%
	2019		19,646		1,475		13.21 to 20.83		27.2% to 33.5%		0.1	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
Janus Henderson Global Research Portfolio—Institutional Shares	2023	$	46,439		1,134	$	16.71 to $44.42		24.5% to 25.0%		0.9	%
	2022		41,647		1,274		13.39 to 35.53		(20.9%) to (20.5%)		1.0	%
	2021		57,935		1,414		16.88 to 44.71		15.9% to 16.4%		0.5	%
	2020		54,912		1,565		14.53 to 38.40		17.9% to 18.4%		0.7	%
	2019		52,405		1,773		12.29 to 32.43		26.7% to 27.2%		1.0	%
Janus Henderson Global Research Portfolio—Service Shares	2023	$	42,284		1,926	$	11.72 to $33.15		24.2% to 26.1%		0.8	%
	2022		33,395		1,716		9.42 to 26.58		(21.1%) to (5.3%)		0.9	%
	2021		40,911		1,545		17.75 to 33.53		15.6% to 16.4%		0.4	%
	2020		38,065		1,620		15.31 to 28.87		17.6% to 18.3%		0.6	%
	2019		35,852		1,740		12.99 to 24.44		26.4% to 27.2%		0.9	%
MFS^® International Intrinsic Value Portfolio—Service Class	2023	$	44,870		3,285	$	10.88 to $14.22		15.3% to 17.0%		0.5	%
	2022		37,842		3,153		9.42 to 12.27		(25.1%) to (5.3%)		0.5	%
	2021		45,940		2,838		15.87 to 16.28		8.4% to 9.0%		0.1	%
	2020		34,902		2,346		14.64 to 14.94		18.1% to 18.8%		0.8	%
	2019		23,489		1,874		12.40 to 12.58		23.5% to 24.2%		1.6	%
MFS^® Investors Trust Series—Initial Class	2023	$	7,151		195	$	31.00 to $49.42		16.8% to 17.3%		0.7	%
	2022		7,503		242		26.48 to 42.31		(18.0%) to (17.6%)		0.7	%
	2021		9,976		265		32.21 to 51.61		24.5% to 25.1%		0.6	%
	2020		9,089		302		25.81 to 41.46		11.8% to 12.3%		0.6	%
	2019		8,733		326		23.03 to 37.09		29.2% to 29.8%		0.7	%
MFS^® Investors Trust Series—Service Class	2023	$	58,816		2,703	$	11.05 to $44.91		16.5% to 18.3%		0.5	%
	2022		55,323		2,813		9.47 to 38.39		(18.2%) to (4.9%)		0.4	%
	2021		72,584		2,943		20.79 to 46.75		24.2% to 25.0%		0.4	%
	2020		69,351		3,492		16.70 to 37.50		11.5% to 12.2%		0.4	%
	2019		61,623		3,373		14.94 to 33.49		28.8% to 29.7%		0.5	%
MFS^® Mid Cap Value Portfolio—Service Class	2023	$	28,159		1,846	$	10.82 to $17.58		10.4% to 12.1%		1.5	%
	2022		22,021		1,491		9.78 to 15.83		(10.6%) to (1.6%)		0.8	%
	2021		22,933		1,310		13.47 to 17.61		28.3% to 29.0%		0.8	%
	2020		11,861		872		10.48 to 13.64		4.8% to 36.4%		0.1	%
MFS^® Research International Portfolio—Service Class	2023	$	1,671		155	$	10.69 to $10.92		11.0% to 12.4%		0.8	%
	2022		581		60		9.62 to 9.71		(3.8%) to (2.9%)		2.0	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
MFS^® Research Series—Initial Class	2023	$	8,090		194	$	28.39 to $47.27		20.5% to 20.7%		0.5	%
	2022		7,772		224		23.56 to 39.18		(18.5%) to (18.4%)		0.5	%
	2021		10,573		249		28.92 to 48.01		22.8% to 23.1%		0.5	%
	2020		10,008		290		23.54 to 39.03		14.7% to 15.0%		0.7	%
	2019		9,986		333		20.52 to 33.96		30.8% to 31.1%		0.8	%
MFS^® Research Series—Service Class	2023	$	43,835		1,851	$	11.42 to $51.67		19.9% to 21.8%		0.2	%
	2022		40,028		1,919		9.50 to 42.91		(18.9%) to (4.5%)		0.2	%
	2021		53,717		2,035		21.42 to 52.70		22.2% to 23.0%		0.3	%
	2020		49,996		2,305		17.48 to 42.92		14.2% to 14.9%		0.6	%
	2019		40,050		2,025		15.27 to 37.42		30.2% to 31.0%		0.6	%
Morgan Stanley VIF U.S. Real Estate Portfolio—Class II	2023	$	21,448		2,091	$	8.98 to $11.90		12.2% to 13.9%		2.0	%
	2022		17,982		1,910		7.99 to 10.56		(28.5%) to (19.7%)		1.0	%
	2021		24,273		1,804		12.16 to 14.70		37.0% to 37.8%		1.8	%
	2020		17,675		1,784		8.85 to 10.69		(18.5%) to (18.1%)		2.6	%
	2019		21,447		1,741		10.84 to 13.07		16.6% to 17.3%		1.6	%
Neuberger Berman AMT Mid Cap Growth Portfolio—Class I	2023	$	1,381		32	$	40.40 to $57.78		16.0% to 16.5%		0.0	%
	2022		1,271		35		34.74 to 49.62		(30.0%) to (29.7%)		0.0	%
	2021		1,936		37		49.48 to 70.64		10.9% to 11.4%		0.0	%
	2020		1,878		40		44.41 to 63.43		37.4% to 38.0%		0.0	%
	2019		1,536		45		32.17 to 45.97		30.3% to 30.9%		0.0	%
Neuberger Berman AMT Mid Cap Growth Portfolio—Class S	2023	$	79,297		3,604	$	10.35 to $50.98		15.8% to 17.6%		0.0	%
	2022		64,245		2,994		8.91 to 43.84		(30.1%) to (10.4%)		0.0	%
	2021		94,866		2,858		21.45 to 62.50		10.7% to 11.4%		0.0	%
	2020		88,209		2,807		19.33 to 56.25		37.2% to 38.0%		0.0	%
	2019		76,952		3,198		14.06 to 40.85		30.1% to 30.9%		0.0	%
PIMCO VIT Income Portfolio—Advisor Class	2023	$	30,161		2,789	$	10.48 to $10.91		6.3% to 7.8%		5.1	%
	2022		17,291		1,705		9.85 to 10.21		(9.5%) to (1.0%)		3.6	%
	2021		15,562		1,391		11.11 to 11.21		0.1% to 0.7%		2.7	%
	2020		4,291		386		11.10 to 11.14		11.0% to 11.4%		2.8	%

NYLIAC Variable Annuity Separate Account-III

Notes to Financial Statements (Continued)

NOTE 6—Financial Highlights (Continued):


		Net Assets (in 000’s)		Units Outstanding (in 000’s)		Variable Accumulation Unit Value (Lowest to Highest)		Total Return¹ (Lowest to Highest)		Investment Income Ratio²
PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)—Advisor Class	2023	$	66,405		6,227	$	10.16 to $11.36		7.0% to 8.6%		2.5	%
	2022		67,670		6,783		9.48 to 10.57		(11.8%) to (4.7%)		1.4	%
	2021		90,124		7,971		10.94 to 11.94		(3.8%) to (3.2%)		1.5	%
	2020		90,868		7,742		11.35 to 12.35		3.6% to 4.2%		5.7	%
	2019		90,456		7,990		10.94 to 11.87		5.0% to 5.6%		1.7	%
PIMCO VIT Low Duration Portfolio—Advisor Class	2023	$	41,241		4,238	$	9.33 to $10.25		3.1% to 4.6%		3.5	%
	2022		36,285		3,875		9.06 to 9.81		(7.5%) to (1.9%)		1.6	%
	2021		31,859		3,186		9.79 to 10.10		(2.7%) to (2.2%)		0.4	%
	2020		31,796		3,106		10.06 to 10.32		1.1% to 1.7%		1.0	%
	2019		21,157		2,098		9.95 to 10.15		2.1% to 2.7%		2.7	%
PIMCO VIT Total Return Portfolio—Advisor Class	2023	$	136,907		13,768	$	9.67 to $10.11		4.0% to 5.5%		3.5	%
	2022		132,110		13,890		9.29 to 9.68		(15.9%) to (4.6%)		2.5	%
	2021		170,446		15,140		11.02 to 11.46		(3.1%) to (2.5%)		1.7	%
	2020		178,964		15,477		11.35 to 11.78		6.7% to 7.2%		2.0	%
	2019		118,132		10,934		10.63 to 11.00		6.4% to 7.0%		2.9	%
Western Asset Core Plus VIT Portfolio—Class II	2023	$	1,529		153	$	9.88 to $10.09		4.7% to 6.1%		3.5	%
	2022		1,227		129		9.44 to 9.52		(5.6%) to (4.8%)		2.9	%

Not all Investment Divisions are available under all policies.

Charges and fees levied by NYLIAC are disclosed in Note 3.

Expenses as a percent of average variable accumulation value are 0.30% to 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions.

1 Total returns are not annualized for periods less than a year. These amounts represent the total return for the periods indicated, including changes in the value of the underlying Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total returns are calculated for each period indicated or from the effective date through the end of the reporting period.

2 These amounts represent the dividends excluding distributions of capital gains, received by an Investment Division from the underlying Fund, net of management fees assessed by the Fund manager, divided by the average investment at 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 Investment Division is affected by the timing of the declaration of dividends by the underlying Fund in which the Investment Division invests. Annualized percentages are shown for the Investment Income Ratio for all Investment Divisions in all periods.

Report of Independent Registered Public Accounting Firm

To the Board of Directors of New York Life Insurance and Annuity Corporation and the Policyowners of NYLIAC Variable Annuity Separate Account-III

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the investment divisions of NYLIAC Variable Annuity Separate Account-III indicated in the table below as of December 31, 2023, and the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the investment divisions of NYLIAC Variable Annuity Separate Account-III as of December 31, 2023, and the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.


MainStay VP American Century Sustainable Equity—Initial Class ⁽¹⁾	MainStay VP Small Cap Growth—Service Class ⁽¹⁾	Fidelity^® VIP Equity-Income Portfolio^SM—Initial Class ⁽¹⁾

MainStay VP American Century Sustainable Equity—Service Class ⁽¹⁾	MainStay VP U.S. Government Money Market—Initial Class ⁽¹⁾	Fidelity^® VIP Equity-Income Portfolio^SM—Service Class 2 ⁽¹⁾

MainStay VP Balanced—Service Class ⁽¹⁾	MainStay VP Wellington Growth—Initial Class ⁽¹⁾	Fidelity^® VIP FundsManager^® 60% Portfolio—Investor Class ⁽¹⁾

MainStay VP Bond—Initial Class ⁽¹⁾	MainStay VP Wellington Growth—Service Class ⁽¹⁾	Fidelity^® VIP FundsManager^® 60% Portfolio—Service Class ⁽¹⁾

MainStay VP Bond—Service Class ⁽¹⁾	MainStay VP Wellington Mid Cap—Initial Class ⁽¹⁾	Fidelity^® VIP Government Money Market Portfolio—Investor Class ⁽¹⁾

MainStay VP Candriam Emerging Markets Equity—Initial Class ⁽¹⁾	MainStay VP Wellington Mid Cap—Service Class ⁽¹⁾	Fidelity^® VIP Growth Opportunities Portfolio—Service Class 2 ⁽¹⁾

MainStay VP Candriam Emerging Markets Equity—Service Class ⁽¹⁾	MainStay VP Wellington Small Cap—Initial Class ⁽¹⁾	Fidelity^® VIP Health Care Portfolio—Service Class 2 ⁽¹⁾

MainStay VP CBRE Global Infrastructure—Service Class ⁽¹⁾	MainStay VP Wellington Small Cap—Service Class ⁽¹⁾	Fidelity^® VIP International Index Portfolio—Service Class 2 ⁽¹⁾

MainStay VP Conservative Allocation— Service Class ⁽¹⁾	MainStay VP Wellington U.S. Equity—Initial Class ⁽¹⁾	Fidelity^® VIP Investment Grade Bond Portfolio—Service Class 2 ⁽²⁾

MainStay VP Epoch U.S. Equity Yield— Initial Class ⁽¹⁾	MainStay VP Wellington U.S. Equity—Service Class ⁽¹⁾	Fidelity^® VIP Mid Cap Portfolio—Service Class 2 ⁽¹⁾

MainStay VP Epoch U.S. Equity Yield—Service Class ⁽¹⁾	MainStay VP Winslow Large Cap Growth—Initial Class ⁽¹⁾	Franklin Templeton Aggressive Model Portfolio—Class II ⁽¹⁾

MainStay VP Equity Allocation—Service Class ⁽¹⁾	MainStay VP Winslow Large Cap Growth—Service Class ⁽¹⁾	Franklin Templeton Conservative Model Portfolio—Class II ⁽¹⁾

MainStay VP Fidelity Institutional AM^® Utilities—Initial Class ⁽¹⁾	AB VPS Relative Value Portfolio—Class B ⁽²⁾	Franklin Templeton Moderate Model Portfolio—Class II ⁽¹⁾

MainStay VP Fidelity Institutional AM^® Utilities—Service Class ⁽¹⁾	American Funds IS Asset Allocation Fund—Class 4 ⁽¹⁾	Franklin Templeton Moderately Aggressive Model Portfolio—Class II ⁽¹⁾

MainStay VP Floating Rate—Service Class ⁽¹⁾	American Funds IS The Bond Fund of America^®—Class 4 ⁽²⁾	Franklin Templeton Moderately Conservative Model Portfolio—Class II ⁽¹⁾

MainStay VP Growth Allocation—Service Class ⁽¹⁾	American Funds IS Global Small Capitalization Fund—Class 4 ⁽¹⁾	Invesco V.I. EQV International Equity Fund—Series II Shares ⁽¹⁾

MainStay VP Income Builder—Initial Class ⁽¹⁾	American Funds IS Growth Fund—Class 4 ⁽¹⁾	Invesco V.I. Main Street Small Cap Fund^®—Series II Shares ⁽¹⁾

MainStay VP Income Builder—Service Class ⁽¹⁾	American Funds IS New World Fund^®—Class 4 ⁽¹⁾	Janus Henderson Enterprise Portfolio—Service Shares ⁽¹⁾

Report of Independent Registered Public Accounting Firm (Continued)


MainStay VP IQ Hedge Multi-Strategy—Service Class ⁽¹⁾	American Funds IS Washington Mutual Investors Fund^SM—Class 4 ⁽¹⁾	Janus Henderson Global Research Portfolio—Institutional Shares ⁽¹⁾

MainStay VP Janus Henderson Balanced—Initial Class ⁽¹⁾	BlackRock^® Global Allocation V.I. Fund—Class III ⁽¹⁾	Janus Henderson Global Research Portfolio—Service Shares ⁽¹⁾

MainStay VP Janus Henderson Balanced—Service Class ⁽¹⁾	BlackRock^® High Yield V.I. Fund—Class III ⁽¹⁾	MFS^® International Intrinsic Value Portfolio—Service Class ⁽¹⁾

MainStay VP MacKay Convertible—Initial Class ⁽¹⁾	BNY Mellon IP Technology Growth Portfolio—Initial Shares ⁽¹⁾	MFS^® Investors Trust Series—Initial Class ⁽¹⁾

MainStay VP MacKay Convertible—Service Class ⁽¹⁾	BNY Mellon IP Technology Growth Portfolio—Service Shares ⁽¹⁾	MFS^® Investors Trust Series—Service Class ⁽¹⁾

MainStay VP MacKay Government—Initial Class ⁽¹⁾	BNY Mellon Sustainable U.S. Equity Portfolio—Service Shares ⁽²⁾	MFS^® Mid Cap Value Portfolio—Service Class ⁽¹⁾

MainStay VP MacKay Government—Service Class ⁽¹⁾	ClearBridge Variable Appreciation Portfolio—Class II ⁽¹⁾	MFS^® Research International Portfolio—Service Class ⁽²⁾

MainStay VP MacKay High Yield Corporate Bond—Initial Class ⁽¹⁾	Columbia Variable Portfolio—Commodity Strategy Fund—Class 2 ⁽¹⁾	MFS^® Research Series—Initial Class ⁽¹⁾

MainStay VP MacKay High Yield Corporate Bond—Service Class ⁽¹⁾	Columbia Variable Portfolio—Emerging Markets Bond Fund—Class 2 ⁽¹⁾	MFS^® Research Series—Service Class ⁽¹⁾

MainStay VP MacKay Strategic Bond—Service Class ⁽¹⁾	Columbia Variable Portfolio—Intermediate Bond Fund—Class 2 ⁽²⁾	Morgan Stanley VIF U.S. Real Estate Portfolio—Class II ⁽¹⁾

MainStay VP Moderate Allocation—Service Class ⁽¹⁾	Columbia Variable Portfolio—Small Cap Value Fund—Class 2 ⁽¹⁾	Neuberger Berman AMT Mid Cap Growth Portfolio—Class I ⁽¹⁾

MainStay VP Natural Resources—Initial Class ⁽¹⁾	Delaware VIP^® Small Cap Value Series—Service Class ⁽¹⁾	Neuberger Berman AMT Mid Cap Growth Portfolio—Class S ⁽¹⁾

MainStay VP PIMCO Real Return—Service Class ⁽¹⁾	DWS Alternative Asset Allocation VIP—Class B ⁽¹⁾	PIMCO VIT Income Portfolio—Advisor Class ⁽¹⁾

MainStay VP PineStone International Equity—Initial Class ⁽¹⁾	Fidelity^® VIP Bond Index Portfolio—Service Class 2 ⁽¹⁾	PIMCO VIT International Bond Portfolio (U.S. Dollar-Hedged)—Advisor Class ⁽¹⁾

MainStay VP PineStone International Equity—Service Class ⁽¹⁾	Fidelity^® VIP Contrafund^SM Portfolio—Initial Class ⁽¹⁾	PIMCO VIT Low Duration Portfolio—Advisor Class ⁽¹⁾

MainStay VP S&P 500 Index—Initial Class ⁽¹⁾	Fidelity^® VIP Contrafund^SM Portfolio—Service Class 2 ⁽¹⁾	PIMCO VIT Total Return Portfolio—Advisor Class ⁽¹⁾

MainStay VP S&P 500 Index—Service Class ⁽¹⁾	Fidelity^® VIP Emerging Markets Portfolio—Service Class 2 ⁽¹⁾	Western Asset Core Plus VIT Portfolio—Class II ⁽²⁾

MainStay VP Small Cap Growth—Initial Class ⁽¹⁾

⁽¹⁾Statement of operations for the year ended December 31, 2023 and statement of changes in net assets for the years ended December 31, 2023 and 2022

⁽²⁾Statement of operations for the year ended December 31, 2023 and statement of changes in net assets for the year ended December 31, 2023 and the period May 1, 2022 (commencement of operations) through December 31, 2022

Basis for Opinions

These financial statements are the responsibility of the New York Life Insurance and Annuity Corporation management. Our responsibility is to express an opinion on the financial statements of each of the investment divisions of NYLIAC Variable Annuity Separate Account-III based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight

Report of Independent Registered Public Accounting Firm (Continued)

Board (United States) (PCAOB) and are required to be independent with respect to each of the investment divisions of NYLIAC Variable Annuity Separate Account-III 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 of these financial statements 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. 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. Our procedures included confirmation of investments owned as of December 31, 2023 by correspondence with the custodian and the investee mutual funds. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

New York, New York

April 4, 2024

We have served as the auditor of one or more of the investment divisions of NYLIAC Variable Annuity Separate Account-III since 1995.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

(A wholly-owned subsidiary of

New York Life Insurance Company)

FINANCIAL STATEMENTS

AND SUPPLEMENTAL SCHEDULES

(STATUTORY BASIS)

December 31, 2023, 2022 and 2021

Table of Contents


	Page Number
Report of Independent Auditors		1
Statutory Statements of Financial Position		3
Statutory Statements of Operations		4
Statutory Statements of Changes in Capital and Surplus		5
Statutory Statements of Cash Flows		6
Notes to Statutory Financial Statements
Note 1 - Nature of Operations		8
Note 2 - Basis of Presentation		8
Note 3 - Significant Accounting Policies		10
Note 4 - Business Risks and Uncertainties		17
Note 5 - Recent Accounting Pronouncements		18
Note 6 - Investments		19
Note 7 - Derivative Instruments and Risk Management		32
Note 8 - Separate Accounts		38
Note 9 - Fair Value Measurements		41
Note 10 - Investment Income and Capital Gains and Losses		50
Note 11 - Related Party Transactions		54
Note 12 - Insurance Liabilities		57
Note 13 - Reinsurance		64
Note 14 - Benefit Plans		65
Note 15 - Commitments and Contingencies		66
Note 16 - Income Taxes		68
Note 17 - Capital and Surplus		72
Note 18 - Dividends to Stockholder		73
Note 19 - Written Premiums		73
Note 20 - Loan-Backed and Structured Security Impairments		74
Note 21 - Subsequent Events		75
Glossary of Terms		76

Supplemental Schedules and Interrogatories
Schedule 1- Supplemental Schedule of Selected Financial Data		78
Schedule 2- Summary Investment Schedule		82
Schedule 3- Investment Risks Interrogatories		84
Schedule 4- Supplemental Schedule of Reinsurance Contracts		90

LOGO

Report of Independent Auditors

To the Board of Directors of New York Life Insurance and Annuity Corporation

Opinions

We have audited the accompanying statutory basis financial statements of New York Life Insurance and Annuity Corporation (the “Company”), which comprise the statutory statements of financial position as of December 31, 2023 and 2022, and the related statutory statements of operations, of changes in capital and surplus, and of cash flows for each of the three years ended December 31, 2023, including the related notes (collectively referred to as 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, 2023 and 2022, and the results of its operations and its cash flows for each of the three years ended December 31, 2023, in accordance with the accounting practices prescribed or permitted by the Delaware Department 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 accompanying financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2023 and 2022, or the results of its operations or its cash flows for each of the three years ended December 31, 2023.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US 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 audit. 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 on the basis of the accounting practices prescribed or permitted by the Delaware Department of Insurance, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Delaware Department of 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 the financial statements are available to be issued.

PricewaterhouseCoopers LLP, 300 Madison Avenue, New York, New York 10017

T: (646) 471 3000, www.pwc.com/us

LOGO

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 US 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 US 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.

Supplemental Information

Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental schedule of selected financial data, summary investment schedule, investment risks interrogatories, and supplemental schedule of reinsurance contracts (collectively referred to as the “supplemental schedules”) of the Company as of December 31, 2023 and for the year then ended are presented to comply with the National Association of Insurance Commissioners’ Annual Statement Instructions and Accounting Practices and Procedures Manual and for purposes of additional analysis and are not a required part of the financial statements. The supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves and other additional procedures, in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental schedules are fairly stated, in all material respects, in relation to the financial statements taken as a whole.

New York, New York

February 28, 2024

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

(A wholly-owned subsidiary of New York Life Insurance Company)

STATUTORY STATEMENTS OF FINANCIAL POSITION


	December 31,
	2023			2022

	(in millions)
Assets
Bonds	$	102,056		$	93,817
Common and preferred stocks		659			1,285
Mortgage loans		15,484			15,544
Policy loans		928			862
Other invested assets		3,583			3,721
Cash, cash equivalents and short-term investments		1,696			6,401
Derivatives		1,196			1,360

Total cash and invested assets		125,602			122,990
Investment income due and accrued		1,005			851
Admitted disallowed interest maintenance reserve		328			—
Interest in annuity contracts		10,774			10,236
Other assets		1,201			1,101
Separate accounts assets		55,405			49,808

Total assets	$	194,315		$	184,986

Liabilities, capital and surplus
Liabilities:
Policy reserves	$	112,990		$	109,695
Deposit funds		1,583			1,441
Policy claims		1,041			1,049
Separate accounts transfers due and accrued		(1,114	)		(1,104	)
Obligations under structured settlement agreements		10,774			10,236
Amounts payable under security lending agreements		678			675
Other liabilities		2,106			2,798
Interest maintenance reserve		—			(8	)
Asset valuation reserve		1,939			1,890
Separate accounts liabilities		55,388			49,777

Total liabilities		185,385			176,449

Capital and Surplus:
Capital stock - par value $10,000 (20,000 shares authorized, 2,500 issued and outstanding)		25			25
Gross paid in and contributed surplus		4,458			4,458
Special surplus for admitted disallowed interest maintenance reserve		328			—
Unassigned surplus		4,119			4,054

Total capital and surplus		8,930			8,537

Total liabilities, capital and surplus	$	194,315		$	184,986

See accompanying notes to financial statements.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

(A wholly-owned subsidiary of New York Life Insurance Company)

STATUTORY STATEMENTS OF OPERATIONS


Years Ended December 31,
2023	2022	2021


	(in millions)
Income
Premiums	$	16,743		$	21,033		$	14,012
Net investment income		5,276			4,304			4,261
Other income		1,129			1,093			1,073

Total income		23,148			26,430			19,346

Benefits and expenses
Benefit payments:
Death benefits		2,275			2,345			2,343
Annuity benefits		3,664			3,431			3,430
Surrender benefits		12,037			9,256			9,054
Other benefit payments		103			93			87

Total benefit payments		18,079			15,125			14,914
Additions to policy reserves		3,334			9,721			418
Net transfers (from)/to separate accounts		(648	)		444			1,909
Operating expenses		1,710			1,645			1,432

Total benefits and expenses		22,475			26,935			18,673

Gain/(loss) from operations before federal and foreign income taxes		673			(505	)		673
Federal and foreign income taxes		268			114			187

Net gain/(loss) from operations		405			(619	)		486
Net realized capital gains/(losses), after taxes and transfers to interest maintenance reserve		188			(37	)		(157	)

Net income/(loss)	$	593		$	(656	)	$	329

See accompanying notes to financial statements.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

(A wholly-owned subsidiary of New York Life Insurance Company)

STATUTORY STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS


	Years Ended December 31,
	2023			2022			2021
	(in millions)
Capital and surplus, beginning of year	$	8,537		$	9,734		$	9,448
Net increase/(decrease) due to:
Net income/(loss)		593			(656	)		329
Change in net unrealized capital (losses)/gains on investments		(268	)		(153	)		589
Change in nonadmitted assets		(89	)		(300	)		(7	)
Change in reserve valuation basis		31			—			536
Change in asset valuation reserve		(49	)		(16	)		(271	)
Change in net deferred income tax		189			311			106
Dividends to parent		—			(400	)		(942	)
Prior period corrections		—			—			(77	)
Other adjustments, net		(14	)		17			23

Net increase/(decrease)		393			(1,197	)		286

Capital and surplus, end of year	$	8,930		$	8,537		$	9,734

See accompanying notes to financial statements.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

(A wholly-owned subsidiary of New York Life Insurance Company)

STATUTORY STATEMENTS OF CASH FLOWS


	Years Ended December 31,
	2023			2022			2021
	(in millions)
Cash flows from operating activities:
Premiums received	$	16,730		$	20,995		$	13,623
Net investment income received		4,878			3,888			4,237
Other		1,130			1,095			1,080

Total received		22,738			25,978			18,940

Benefits and other payments		18,054			15,140			14,154
Net transfers (from)/to separate accounts		(635	)		334			2,020
Operating expenses		1,548			1,580			1,356
Federal income taxes		235			101			285

Total paid		19,202			17,155			17,815

Net cash from/(used in) operating activities		3,536			8,823			1,125

Cash flows from investing activities:
Proceeds from investments sold		4,331			6,998			8,403
Proceeds from investments matured or repaid		9,850			8,889			12,844
Cost of investments acquired		(21,917	)		(20,237	)		(22,397	)
Net change in policy loans		(66	)		(9	)		34

Net cash (used in)/from investing activities		(7,802	)		(4,359	)		(1,116	)

Cash flows from financing and miscellaneous activities:
Dividends to New York Life		—			(400	)		(942	)
Other miscellaneous uses		(438	)		574			(103	)

Net cash (used in)/from financing and miscellaneous activities		(438	)		174			(1,045	)

Net (decrease)/increase in cash, cash equivalents and short-term investments		(4,704	)		4,638			(1,036	)
Cash, cash equivalents and short-term investments, beginning of year		6,401			1,763			2,799

Cash, cash equivalents and short-term investments, end of year	$	1,697		$	6,401		$	1,763

See accompanying notes to financial statements.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

(A wholly-owned subsidiary of New York Life Insurance Company)

STATUTORY STATEMENTS OF CASH FLOWS (supplemental)


	Years Ended December 31,
	2023		2022		2021
	(in millions)
Non-cash activities during the year not included in the Statutory Statements of Cash Flows:
Transfer of bond investment to bond investment	$	556	$	6,760	$	1,348
Transfer of other invested assets investment to insurance affiliate in exchange for bonds	$	—	$	250	$	—
Transfer of assets between bond investment and other invested assets	$	23	$	146	$	66
Capitalized interest on bonds and mortgage loans	$	76	$	95	$	119
Depreciation/amortization on fixed assets	$	92	$	73	$	73
Low-income housing tax credit future commitments	$	10	$	68	$	80
Transfer of mortgage loans to other invested assets	$	3	$	44	$	72
Transfers between equity investment and equity investment	$	40	$	34	$	5
Bonds to be announced commitments - purchased/sold	$	—	$	19	$	1,535
Other invested assets stock distribution	$	—	$	6	$	16
Dividend to New York Life paid in bonds	$	—	$	—	$	402
Exchange of bonds to stocks	$	—	$	—	$	3

See accompanying notes to financial statements.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

December 31, 2023, 2022 and 2021

NOTE 1—NATURE OF OPERATIONS

New York Life Insurance and Annuity Corporation (“the Company”), domiciled in the State of Delaware, is a direct, wholly-owned subsidiary of New York Life Insurance Company (“New York Life”). The Company’s primary business operations are its life and annuity business and its investment management activities. The Company offers a wide variety of interest sensitive and variable life insurance and annuity products to a large cross section of the insurance market. The Company markets its products in all 50 states of the United States of America and the District of Columbia, primarily through New York Life’s career agency force, with certain products also marketed through independent brokers, brokerage general agents and banks.

NOTE 2—BASIS OF PRESENTATION

The accompanying financial statements have been prepared using accounting practices prescribed or permitted by the Delaware State Insurance Department (“the Department” or “statutory accounting practices”), which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The Department recognizes only statutory accounting practices prescribed or permitted by the State of Delaware for determining and reporting the financial position and results of operations of an insurance company and for determining its solvency under the Delaware State Insurance Law. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the State of Delaware. Prescribed statutory accounting practices include state laws and regulations. Permitted statutory accounting practices encompass accounting practices that are not prescribed; such practices differ from state to state, may differ from company to company within a state, and may change in the future. The Company has no permitted practices.

Prior Period Correction

In 2021, the Company corrected its assumption of the duration in which bank owned life insurance policies paid premiums under the universal life (“UL”) Commissioners Reserve Valuation Methodology. As a result, the Company recorded a prior period correction decreasing surplus by $77 million in 2021.

Statutory vs. U.S. GAAP Basis of Accounting

Financial statements prepared under NAIC SAP as determined under Delaware State Insurance Law vary from those prepared under U.S. GAAP. The effects of those differences are material to the Company’s financial statements. The primary differences that would most likely be material are as follows:

Investments

•

investments in bonds are generally carried at amortized cost or values as prescribed by the Department, whereas under U.S. GAAP, investments in bonds that are classified as available for sale or trading are carried at fair value, with changes in fair value of bonds classified as available for sale reflected in equity, and changes in fair value of bonds classified as trading reflected in earnings;

•

investments in noncontrolled partnerships and limited liability companies are accounted for under the equity method for both NAIC SAP and U.S. GAAP. Under the statutory equity method, undistributed income and capital gains and losses for these investments are reported in surplus as unrealized gains or losses, whereas under U.S. GAAP, in many cases, for investment companies, unrealized gains and losses are included in net investment income;

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 2—BASIS OF PRESENTATION (continued)

•

credit loss-related bond impairments that are deemed to be other than temporary are recorded as a direct write-down to the security without the ability to reverse those losses in the future if expected cash flows increase. Under U.S. GAAP, estimated credit losses on bonds classified as available for sale are recorded through an allowance for credit losses subject to future reversals if expected cash flows increase;

•

specific valuation allowances are established for the excess carrying value of a mortgage loan over the estimated fair value of the collateral as an unrealized loss in surplus when it is probable that based on current information and events, the Company will be unable to collect amounts due under the contractual terms of the loan agreement. Under U.S. GAAP, a valuation allowance is established for expected credit losses. The valuation allowance under U.S. GAAP is based on historical experience, current economic conditions and reasonable and supportable forecasts;

•

realized gains and losses resulting from changes in interest rates are deferred in the interest maintenance reserve (“IMR”) and amortized into investment income over the remaining life of the investment sold, whereas under U.S. GAAP, the gains and losses are recognized in income at the time of sale;

•

certain derivative instruments are carried at amortized cost, whereas under U.S. GAAP, all derivative instruments are carried at fair value;

Insurance Contracts

•

contracts that have any mortality or morbidity risk, regardless of significance, and contracts with life contingent annuity purchase rate guarantees are classified as insurance contracts, whereas under U.S. GAAP, only contracts that have significant mortality or morbidity risk are classified as insurance contracts otherwise they are accounted for in a manner consistent with the accounting for interest bearing or other financial instruments;

•

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;

•

the costs related to acquiring insurance contracts (principally commissions), policy issue expenses and sales inducements are charged to income in the period incurred, whereas under U.S. GAAP, these costs are deferred when related directly to successful sales and amortized over the periods benefited;

•

life insurance and annuity reserves are based on different statutory methods and assumptions than they are under U.S. GAAP;

•

reinsurance agreements are accounted for as reinsurance on an NAIC SAP and U.S. GAAP basis if certain risk transfer provisions have been met. NAIC SAP requires the reinsurer to assume insurance risk, regardless of the significance of the loss potential, whereas U.S. GAAP requires that there is a reasonable possibility that the reinsurer may realize significant loss from assuming insurance risk; assets and liabilities from reinsurance transactions are reported net of reinsurance, whereas under U.S. GAAP, assets and liabilities from reinsurance transactions are reported gross of reinsurance;

Taxes

•

deferred income taxes exclude state income taxes and are admitted to the extent they can be realized within three years subject to a 15% limitation of capital and surplus with changes in the net deferred tax reflected as a component of surplus, whereas under U.S. GAAP, deferred income taxes include federal and state income taxes and changes in deferred taxes are reflected in either earnings or other comprehensive income;

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 2—BASIS OF PRESENTATION (continued)

•

a tax loss contingency is required to be established if it is more likely than not that a tax position will not be sustained upon examination by taxing authorities. If a loss contingency is greater than 50% of the tax benefit associated with a tax position, the loss contingency is increased to 100%, whereas under U.S. GAAP the amount of the benefit for any uncertain tax position is the largest amount that is greater than 50% likely of being realized upon settlement;

Surplus

•

an asset valuation reserve (“AVR”) based on a formula prescribed by the NAIC is established as a liability to offset potential non-interest related investment losses. Changes in the AVR are recorded directly to surplus, whereas under U.S. GAAP, no AVR is recognized;

•

certain assets, such as deferred taxes as noted above, intangible assets, furniture and equipment, and unsecured receivables are considered nonadmitted and excluded from assets, whereas they are included in assets under U.S. GAAP subject to a valuation allowance, as appropriate.

NOTE 3—SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements. Management is also required to disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results may differ from those estimates.

Bonds

Bonds are stated at amortized cost using the interest method. Bonds in or near default (rated NAIC 6) are stated at the lower of amortized cost or fair value. Residual interests in securitizations are reported as other invested assets at the lower of cost or fair value. Refer to Note 9 - Fair Value Measurements for discussion on the valuation approach and methods for bonds.

Under NAIC SAP, Securities Valuation Office (“SVO”)-identified investments, which include certain SVO approved exchange traded funds (“ETFs”) and mutual funds, are eligible for classification as bonds as identified in the SVO’s Purposes and Procedures Manual. SVO-identified bond ETFs are stated at fair value.

The interest method for loan-backed and structured securities, which are included in bonds, uses current assumptions of projected cash flows. Amortization of premium or accretion of discount from the purchase of these securities considers the estimated timing and amount of cash flows of the underlying loans, including prepayment assumptions based on data obtained from external sources or internal estimates. Projected future cash flows are updated monthly, and the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. For high credit quality loan-backed and structured securities backed by the U.S. government (those rated AA or above at the date of acquisition), the adjustments to amortized cost are recorded as a charge or credit to net investment income in accordance with the retrospective method. For all other securities, including all loan-backed and structured securities that are not of high credit quality (those rated below AA at date of acquisition), floating rate securities and securities with the potential for a loss of a portion of the original investment due to contractual prepayments (e.g., interest only securities), the effective yield is adjusted prospectively for any changes in estimated cash flows.

All acquisitions of securities are recorded in the financial statements on a trade date basis except for the acquisitions of private placement bonds, which are recorded on the funding date.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 3—SIGNIFICANT ACCOUNTING POLICIES (continued)

Preferred Stocks

Redeemable preferred stocks in “good standing” (NAIC designation of 1 to 3) are valued at amortized cost. Redeemable preferred stocks “not in good standing” (NAIC designation of 4 to 6) are valued at the lower of amortized cost or fair value. Perpetual preferred stock and mandatory convertible preferred stock are valued at fair value, not to exceed any currently effective call price. Refer to Note 9 - Fair Value Measurements for discussion on the valuation approach and methods for preferred stocks.

Common Stocks

Common stocks include the Company’s investments in unaffiliated stocks, which includes investments in shares of SEC registered investment funds as well as regulated foreign open-end investment funds, which are carried at fair value. Unrealized gains and losses are reflected in surplus, net of deferred taxes. Refer to Note 9 - Fair Value Measurements for a discussion on the valuation approach and methods for common stocks.

Other than Temporary Impairments

The cost basis of bonds and equity securities is adjusted for impairments in value that are deemed to be other than temporary. An other-than-temporary loss is recognized in net income when it is anticipated that the amortized cost will not be recovered. Factors considered in evaluating whether a decline in value is other than temporary include: (1) whether the decline is substantial; (2) the duration that the fair value has been less than cost; (3) the financial condition and near-term prospects of the issuer; and (4) the Company’s ability and intent to retain the investment for a period of time sufficient to allow for an anticipated recovery in value.

When a bond (other than loan-backed and structured securities), preferred stock or common stock is deemed other-than-temporarily impaired, the difference between the investment’s amortized cost and its fair value is recognized as a realized loss and reported in net income if the loss is credit related, or deferred in the IMR if interest related for bonds.

For loan-backed and structured securities, the entire difference between the security’s amortized cost and its fair value is recognized in net income only when the Company (a) has the intent to sell the security or (b) it does not have the intent and ability to hold the security to recovery. If neither of these two conditions exists, a realized loss is recognized in net income for the difference between the amortized cost basis of the security and the net present value of projected future cash flows expected to be collected. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the loan-backed or structured security prior to impairment.

The determination of cash flow estimates in the net present value calculation is subjective and methodologies will vary, depending on the type of security. The Company considers all information relevant to the collectability of the security, including past events, current conditions, and reasonably supportable assumptions and forecasts in developing the estimate of cash flows expected to be collected. This information generally includes, but may not be limited to, the remaining payment terms of the security, estimated prepayment speeds, defaults, recoveries upon liquidation of the underlying collateral securing the notes, the financial condition of the issuer(s), credit enhancements and other third-party guarantees. In addition, other information, such as industry analyst reports and forecasts, sector credit ratings, the financial condition of the bond insurer for insured fixed income securities and other market data relevant to the collectability may also be considered, as well as the expected timing of the receipt of insured payments, if any. The estimated fair value of the collateral may be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of the collateral for recovery.

The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an other-than-temporary impairment (“OTTI”), the impaired bond security is accounted for as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis may be accreted (or amortized) into net investment income in future periods based on prospective changes in cash flow estimates, to reflect adjustments to the effective yield.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 3—SIGNIFICANT ACCOUNTING POLICIES (continued)

Mortgage Loans

Mortgage loans on real estate are carried at unpaid principal balances, net of discounts, premiums, deferred origination fees related to points, and specific valuation allowances, and are collateralized. Specific valuation allowances are established for the excess carrying value of the mortgage loan over the estimated fair value of the collateral as an unrealized loss in surplus when it is probable that based on current information and events, the Company will be unable to collect amounts due under the contractual terms of the loan agreement. Fair value of the collateral is estimated by performing an internal or external current appraisal. If impairment is deemed to be other-than-temporary, which can include a loan modification that qualifies as a troubled debt restructuring (“TDR”), a direct write-down is recognized as a realized loss reported in net income, and a new cost basis for the individual mortgage loan, which is equal to the fair value of the collateral, less costs to obtain and sell, is established. Refer to Note 9 - Fair Value Measurements for a discussion of the valuation approach and methods for mortgage loans.

The Company accrues interest income on mortgage loans to the extent it is deemed collectible. The Company places loans on non-accrual status, and ceases to recognize interest income when management determines that the collection of interest and repayment of principal is not probable. Any accrued but uncollected interest is reversed out of interest income once a loan is put on non-accrual status. Interest payments received on mortgage loans where interest payments have been deemed uncollectible are recognized on a cash basis and recorded as interest income. If a determination is made that the principal will not be collected, the interest payment received is used to reduce the principal balance. If a mortgage loan has any investment income due and accrued that is 90 days past due and collectible, the investment income will continue to accrue but all accrued interest related to the mortgage loan is reported as a nonadmitted asset, until such time that it has been paid or is deemed uncollectible.

Policy Loans

Policy loans are stated at the aggregate balance due. The excess of the unpaid balance of a policy loan that exceeds the cash surrender value is nonadmitted.

Other Invested Assets

Investments in limited partnerships and limited liability companies, including equity investments in affiliated entities organized as limited liability companies, which have admissible audits are carried at the underlying audited equity of the investee. In the absence of an admissible audit, the entire investment is nonadmitted. The financial statements of equity method investees are usually not received in time for the Company to apply the equity method at each reporting period. Therefore, the equity pick-up on these investments has been recorded on a one to three-month lag.

The cost basis of limited partnerships and limited liability companies is adjusted for impairments in value deemed to be other-than-temporary, with the difference between cost and carrying value, which approximates fair value, recognized as a realized loss reported in net income. The new cost basis of an impaired limited partnership or limited liability company is not adjusted for subsequent increases in the underlying audited equity of the investee.

Dividends and distributions from limited partnerships and limited liability companies, other than those deemed a return of capital, are recorded in net investment income. Undistributed earnings are included in unrealized gains and losses and are reflected in surplus, net of deferred taxes.

Residual tranches of securitizations are reported at the lower of cost or market.

Low-Income Housing Tax Credit (“LIHTC”) investments, which are included in other invested assets, are recorded at proportional amortized cost and include remaining unfunded commitments. The carrying value of the investment is amortized into income in proportion to the actual and projected future amounts of tax credits and deductible losses. The amortization is recorded through net investment income.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 3—SIGNIFICANT ACCOUNTING POLICIES (continued)

Real Estate

Real estate includes properties that are directly-owned and real estate property investments that are directly and wholly-owned through a limited liability company and meet certain criteria. Real estate held for the production of income is stated at cost less accumulated depreciation and encumbrances. Real estate held for sale is stated at the lower of cost less accumulated depreciation or fair value, less encumbrances and estimated costs to sell. If there is an indication that the carrying amount of the real estate may not be recoverable, then it must be tested for impairment. If the carrying amount of a real estate investment exceeds its undiscounted cash flows, an OTTI is recorded as a realized loss in net income, calculated as the difference between the carrying amount of the real estate investment and the fair value of the real estate investment. Depreciation of real estate held for the production of income is calculated using the straight-line method over the estimated lives of the assets, generally 40 years. Costs of permanent improvements are depreciated over the shorter of their estimated useful life, or the remaining estimated life of the real estate. Rental revenue from leased real estate is recognized on a straight-line basis over the lease term.

Derivative Instruments

Derivative instruments that qualify and are designated for hedge accounting are valued in a manner consistent with the items being hedged. Periodic payments and receipts on these derivatives are recorded on an accrual basis within net investment income for hedges of fixed income securities, and within other income for hedges of liabilities. Net realized gains and losses are recognized upon termination or maturity of these contracts in a manner consistent with the hedged item and when subject to the IMR, are transferred to the IMR, net of taxes.

To qualify for hedge accounting, the hedge relationship is designated and formally documented at inception, which means any time prior to the first quarterly hedge effectiveness assessment date, by detailing the particular risk, management objective and strategy for the hedge. This includes the item and risk that is being hedged, the derivative that is being used, as well as how effectiveness is being assessed. A derivative must be highly effective in accomplishing the objective of offsetting either changes in fair value or cash flows for the risk being hedged. The hedging relationship is considered highly effective if the changes in fair value or cash flows of the hedging instrument are within 80% to 125% of the inverse changes in the fair value or cash flows of the hedged item. For foreign currency swaps used under a fair value hedge designation, the Company excludes the cross-currency basis spread in its calculation of effectiveness as allowed under statutory accounting guidance. The Company formally assesses effectiveness of its hedging relationships both at the hedge inception and on a quarterly basis over the life of the hedge relationship in accordance with its risk management policy. The Company assesses hedge effectiveness qualitatively on a quarterly basis if (1) the initial quantitative prospective assessment demonstrates that the relationship is expected to be highly effective and (2) at inception, the Company is able to reasonably support an expectation of high effectiveness on a qualitative basis in subsequent periods. The Company continually assesses the credit standing of the derivative counterparty and, if the counterparty is deemed to be no longer creditworthy, the hedge relationship will no longer be considered effective.

The Company discontinues hedge accounting prospectively if: (1) it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of a hedged item; (2) the derivative expired or is sold, terminated, or exercised; (3) it is probable that the forecasted transaction will not occur, or (4) management determines that designation of the derivative as a hedge instrument is no longer appropriate.

Derivative instruments that do not qualify or are not designated for hedge accounting are carried at fair value and changes in fair value are recorded in surplus as unrealized gains and losses, net of deferred taxes. Periodic payments and receipts on these derivatives are recorded on an accrual basis within net investment income for hedges of fixed income securities and within other income for hedges of liabilities. Upon termination or maturity, the gains or losses on these contracts are recognized in net realized capital gains and losses, net of taxes. Realized gains or losses on terminated or matured derivatives, which are subject to the IMR, are transferred to the IMR, net of taxes.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 3—SIGNIFICANT ACCOUNTING POLICIES (continued)

The Company also uses derivatives as part of replication transactions. Replication transactions refer to derivative transactions entered into in conjunction with other investments in order to reproduce the investment characteristics of otherwise permissible investments. The accounting for derivatives used in replication transactions depends upon how the underlying cash instrument is accounted for, as well as how the replicated asset would be accounted for if acquired directly; alternatively, the Company can elect to carry the derivative at fair value. The Company uses bonds as the referenced cash instrument in its current replication transactions, and therefore, the derivatives are carried at amortized cost. The Company accrues investment income for the replicated synthetic asset throughout the life of the replication transaction. Realized gains or losses at maturity of the replication transaction, which are subject to the IMR, are transferred to the IMR, net of tax.

Cash, Cash Equivalents and Short-term Investments

Cash and cash equivalents includes cash on hand, amounts due from banks and highly liquid debt instruments that have original maturities of three months or less at date of purchase and are carried at amortized cost. Cash and cash equivalents also include money market mutual funds which are stated at fair value. Short-term investments consist of securities with remaining maturities of one year or less, but greater than three months at the time of acquisition and are carried at amortized cost, which approximates fair value.

AVR and IMR

The AVR is used to stabilize surplus from fluctuations in the fair value of bonds, stocks, mortgage loans, real estate and other invested assets. Changes in the AVR are accounted for as direct increases or decreases in surplus. The IMR captures interest related realized gains and losses on sales (net of taxes) of bonds, preferred stocks, mortgage loans, interest related other-than-temporary impairments (net of taxes) and realized gains or losses (net of taxes) on terminated interest rate related derivatives which are amortized into net income over the expected years to maturity of the investments sold or the item being hedged using the grouped method. An interest related other-than-temporary impairment occurs when the Company has the intent to sell an investment at the reporting date, before recovery of the cost of the investment. For loan-backed and structured securities, the non-interest related other-than-temporary impairment is booked to the AVR, and the interest related portion to the IMR. The Company admits negative IMR up to 10% of its capital and surplus as required to be shown on the balance sheet of the statutory financial statements most recently filed with its domiciliary state insurance regulator, adjusted to exclude any net positive goodwill, electronic database processing equipment and operating system software, net deferred tax assets and admitted net negative IMR.

Loaned Securities and Repurchase Agreements

The Company enters into securities lending agreements whereby certain investment securities are loaned to third-parties. Securities loaned are treated as financing arrangements. With respect to securities loaned, in order to reduce the Company’s risk under these transactions, the Company requires initial cash collateral equal to 102% of the fair value of domestic securities loaned. The Company records an offsetting liability in amounts payable under security lending agreements. The Company monitors the fair value of securities loaned with additional collateral obtained as necessary. The borrower of the loaned securities is permitted to sell or repledge those securities.

The Company enters into dollar roll repurchase agreements to sell and repurchase securities. Assets to be repurchased are the same, or substantially the same, as the assets sold. The Company agrees to sell securities at a specified price and repurchase the securities at a lower price. The Company receives cash in the amount of the sales proceeds and establishes a liability equal to the repurchase amount. The difference between the sale and repurchase amounts represents deferred income which is earned over the life of the agreement. The liability for repurchasing the assets is included in other liabilities.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 3—SIGNIFICANT ACCOUNTING POLICIES (continued)

The Company enters into tri-party reverse repurchase agreements to purchase and resell short-term securities. The Company receives securities as collateral, having a fair value at least equal to 102% of the purchase price paid by the Company for the securities and the Company’s designated custodian takes possession of this collateral. The Company is not permitted to sell or repledge these securities. The collateral is not recorded on the Company’s financial statements. However, if the counterparty defaults, the Company would then exercise its rights with respect to the collateral, including a sale of the collateral. The fair value of the securities held as collateral is monitored daily and additional collateral is obtained, where appropriate, to protect against credit exposure. The Company records the amount paid for securities purchased under agreements to resell in cash, cash equivalents and short-term investments.

Premiums and Related Expenses

Life premiums are recognized as revenue when due. Annuity considerations are recognized as revenue when received. Commissions and other costs associated with acquiring new business are charged to operations as incurred. Amounts received or paid under deposit type contracts without mortality or morbidity risk are not reported as income or benefits but are recorded directly as an adjustment to the liability for deposit funds.

Net Investment Income

Income from investments, including amortization of premium, accrual of discount and similar items, as well as income from prepayment penalties, is recorded within net investment income, unless otherwise stated herein.

Policy Reserves

Policy reserves are based on mortality tables and valuation interest rates, which are consistent with statutory requirements and are designed to be sufficient to provide for contractual benefits. The Company holds reserves greater than those developed under the minimum statutory reserving rules when the valuation actuary determines that the minimum statutory reserves are inadequate. Actual results could differ from these estimates and may result in the establishment of additional reserves. The valuation actuary monitors actual experience and, where circumstances warrant, revises assumptions and the related estimates for policy reserves. Refer to Note 12 - Insurance Liabilities for a discussion of reserves in excess of minimum NAIC requirements.

Federal Income Taxes

The Company is a member of an affiliated group which files a consolidated federal income tax return with New York Life. The consolidated income tax provision or benefit is allocated among the members of the group in accordance with a tax allocation agreement. The tax allocation agreement provides that the Company computes its share of consolidated tax provision or benefit, in general, on a separate company basis, and may, where applicable, include the tax benefits of operating or capital losses utilizable in New York Life’s consolidated returns. Intercompany tax balances are settled quarterly on an estimated basis with a final settlement occurring within 30 days of the filing of the consolidated tax return. Current federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year and any adjustments to such estimates from prior years.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 3—SIGNIFICANT ACCOUNTING POLICIES (continued)

The Company generally recognizes deferred federal income tax assets (“DTAs”) and deferred federal income tax liabilities (“DTLs”) for expected future tax consequences of temporary differences between statutory and taxable income. Changes in DTAs and DTLs are recognized as a separate component of surplus (except for the net deferred taxes related to investments, which are included in unrealized gains and losses). Limitations on the admitted amount of DTA are calculated in accordance with SSAP No. 101, Income Taxes, a replacement of SSAP 10R and SSAP 10. Gross DTAs are reduced by a statutory valuation allowance if it is more likely than not that some portion or all of the gross DTA will not be realized. The Company is required to establish a tax loss contingency if it is more likely than not that a tax position will not be sustained. The amount of the contingency reserve is management’s best estimate of the amount of the original tax benefit that could be reversed upon audit, unless the best estimate is greater than 50% of the original tax benefit, in which case the reserve is equal to the entire tax benefit. Refer to Note 16 - Income Taxes for more detailed information about the Company’s income taxes.

Separate Accounts

The Company has established both non-guaranteed and guaranteed separate accounts with varying investment objectives which are segregated from the Company’s general account and are maintained for the benefit of separate accounts policyholders. Assets held in non-guaranteed separate accounts are stated at market value. Assets held in guaranteed separate accounts are carried at the same basis as the general account up to the value of policyholder reserves and at fair value thereafter.

The liability for separate accounts represents policyholders’ interests in the separate accounts assets, excluding liabilities representing due and accrued transfers to the general account. The liability for non-guaranteed separate accounts represents policyholders’ interests in the separate accounts assets, including accumulated net investment income and realized and unrealized gains and losses on those assets. For the guaranteed separate accounts, the liability represents amounts due to policyholders pursuant to the terms of the contract.

Other Assets and Liabilities

Other assets primarily consist of net DTAs and other receivables.

Other liabilities primarily consist of derivative liabilities, reinsurance payables, amounts payable for undelivered securities and payable to parent.

Nonadmitted Assets

Under statutory accounting practices, certain assets are designated as nonadmitted assets and are not included in the accompanying Statutory Statements of Financial Position since these assets are not permitted by the Department to be taken into account in determining the Company’s financial condition.

Nonadmitted assets typically include agents’ debit balances, DTAs not realizable within three years, and receivables over ninety days past due. Changes to nonadmitted assets are reported as a direct adjustment to surplus in the accompanying Statutory Statements of Changes in Surplus.

Fair Value of Financial Instruments and Insurance Liabilities

Fair value of various assets and liabilities are included throughout the notes to the financial statements. Specifically, fair value disclosure of investments held is reported in Note 6 - Investments. Fair values for derivative instruments are included in Note 7 - Derivative Instruments and Risk Management. Fair values for insurance liabilities are reported in Note 12 - Insurance Liabilities. The aggregate fair value of all financial instruments summarized by type is included in Note 9 - Fair Value Measurements.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 3—SIGNIFICANT ACCOUNTING POLICIES (continued)

Contingencies

Amounts related to contingencies are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable.

At the inception of a guarantee, the Company recognizes an initial liability at fair value for the obligations it has undertaken, regardless of the probability of performance under the guarantee.

Foreign Currency Transactions

For foreign currency items, income and expenses are translated at the average exchange rate for the period while assets and liabilities are translated using the spot rate in effect at the date of the statements. Changes in the asset and liability values due to fluctuations in foreign currency exchange rates are recorded as unrealized capital gains and losses in surplus until the asset is sold or exchanged or the liability is settled. Upon settlement, previously recorded unrealized capital gains and losses are reversed, and the foreign exchange gain or loss for the entire holding period is recorded as a realized capital gain or loss in net income.

NOTE 4—BUSINESS RISKS AND UNCERTAINTIES

The Company is exposed to various risks, including, but not limited to, insurance, financial, operational, and regulatory risks.

The Company is regulated by the insurance departments of the states and territories where it is licensed to do business. Although the federal government does not directly regulate the business of insurance, federal legislation and administrative policies can significantly and adversely affect the insurance industry and the Company. The Company is unable to predict whether any administrative or legislative proposals, at either the federal or state level, will be adopted in the future, or the effect, if any, such proposals would have on the Company.

The Company’s insurance liabilities and assets under management are exposed to market risk, policyholder behavior risk, and mortality/longevity risk. Market volatility and other equity market conditions may affect the Company’s exposure to risks related to guaranteed death benefits and guaranteed living benefits on variable annuity (“VA”) and certain variable universal life (“VUL”) products issued by the Company. Furthermore, the level of sales of the Company’s insurance and investment products is influenced by many factors, including general market rates of interest, the strength, weakness and volatility of equity markets, and terms and conditions of competing products.

The Company is exposed to the risks normally associated with an investment portfolio, which include general risk of loss of investment, market volatility, interest rate, liquidity, credit, valuation, regulatory change, currency, geographic and counterparty risks. In addition, the investment portfolio is exposed to climate risk, which may affect the value of the Company’s investments.

The Company is subject to various operational risks that could adversely impact its profitability, notably technology risks, which include cybersecurity. Technology risks may involve failures or inadequacies in the Company’s technology systems, including the risk of damage to or theft of Company information, whether in digital or physical formats, or breaches of the Company’s technology platforms. Operational risks also include business disruption risks, which may involve disruptions to mission-critical business functions as a result of system or infrastructure failures, malicious activity, pandemics, and natural and man-made disasters. Climate change may increase the frequency and severity of certain natural disasters that can lead to operational risks.

The Company continues to monitor the economic environment and other potential impacts relating to the COVID-19 pandemic. The Company has maintained effective operations and levels of policyholder service throughout the course of the pandemic.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 5—RECENT ACCOUNTING PRONOUNCEMENTS

Changes in Accounting Principles

Accounting changes adopted to conform to the provisions of NAIC SAP or other state prescribed accounting practices are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is generally reported as an adjustment to unassigned surplus in the period of the change in accounting principle. Generally, the cumulative effect is the difference between the amount of capital and surplus at the beginning of the year and the amount of capital and surplus that would have been reported at that date if the new accounting principles had been applied retroactively for all prior periods.

The NAIC adopted revisions to SSAP No. 48 “Joint Ventures, Partnerships and Limited Liability Companies”, SSAP No. 30 “Common Stock” and SSAP No. 32 “Preferred Stock” regarding residual investments. The amended guidance clarified that equity investments issued from entities that are in substance securitization vehicles are to be reported as residual investments. The adoption of this guidance had no impact to the Company’s surplus, but required the reclassification of $3 million of investments in limited partnerships as residual investments.

The NAIC adopted INT 23-01, which is an interpretation that prescribes limited-time, optional, statutory accounting guidance as an exception to the existing guidance detailed in SSAP No. 7 “Asset Valuation Reserve and Interest Maintenance Reserve” and the annual statement instructions that requires non-admittance of a negative IMR. Under the INT, reporting entities are allowed to admit negative IMR if certain criteria are met. The adoption of this guidance allowed the Company to admit $328 million of negative IMR at December 31, 2023, which increased the Company’s total assets. There was no impact to net income from this change. New disclosures required under the INT have been included in Note 6 - Investments.

The NAIC adopted revisions to SSAP No. 86 “Derivatives”, which adopt with modification U.S. GAAP guidance in determining hedge effectiveness. More specifically, SSAP No. 86 was modified to incorporate measurement guidance for excluded components when measuring hedge effectiveness of foreign currency swaps and foreign currency forwards. In addition, new guidance was added regarding the portfolio layer method and partial term hedges for fair value hedges. The Company adopted this guidance on January 1, 2023 with no impact to surplus at adoption. New disclosures related to this guidance were added to Note 7 - Derivative Instruments and Risk Management.

The NAIC adopted revisions to SSAP No. 43R “Loan-Backed and Structured Securities” to require residual tranches of securitizations to be reported as other invested assets at the lower of cost or market. Residual tranches have been defined under SSAP 43R as those investments in a securitization that have no contractual payments, whether principal or interest, or both and where payment to the holders of the instruments only occurs after contractual interest and principal payments have been made to the other tranches in the securitization based on any remaining funds. The Company adopted this guidance at December 31, 2022 and reclassified residual tranches with a book value of $94 million from Bonds to Other invested assets. The reclassification had no impact on income or surplus.

The NAIC adopted revisions to SSAP No. 25 “Affiliates and Other Related Parties” in 2022, with additional revisions issued in 2023, to clarify that for entities not controlled by voting interests, such as limited partnerships, trusts and other special purpose entities, control may be held by a general partner, servicer, or by other arrangements. The ability of the reporting entity or its affiliates to direct the management and policies of an entity through such arrangements shall constitute control as defined in SSAP 25. Updates were also adopted in SSAP 43R to clarify that investments from any arrangement that results in direct or indirect control of an investee, which include but are not limited to control through a servicer or other controlling arrangement, shall be reported as affiliated in accordance with SSAP 25. The Company invests in asset-backed securities issued by securitization vehicles that are managed by its asset management affiliates. These investments do not have any credit risk exposure to affiliates, but are now reported as affiliated investments in Note 6 - Investments based on the revisions adopted. Reporting these investments as affiliated only impacted disclosures and had no impact on the Company’s income or surplus.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 5—RECENT ACCOUNTING PRONOUNCEMENTS (continued)

The NAIC adopted revisions to Statement of Statutory Accounting Principles (“SSAP”) 32 “Preferred Stock.” The revisions include definitions, measurement and impairment guidance. The revisions require perpetual preferred stock and mandatory convertible preferred stock to be reported at fair value, not to exceed any current effective call price, among other changes. The Company adopted this guidance on January 1, 2021, which increased statutory surplus by $14 million.

In 2020, the NAIC issued Interpretation 20-01 to provide statutory accounting and reporting guidance for the adoption of ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting under U.S. GAAP. This Interpretation adopts, with minor modification, the U.S. GAAP adopted guidance, which provides optional expedients and exceptions for applying current accounting guidance to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met, through December 31, 2024. The Company is performing an ongoing evaluation of the impact of reference rate reform on its contracts and hedging relationships. Since most of the Company’s contracts and hedging relationships are expected to meet the criteria for applying the accounting expedients listed in the Interpretation, reference rate reform has no material impact to the Company’s surplus or net income at December 31, 2023.

NOTE 6—INVESTMENTS

Bonds

The carrying value and estimated fair value of bonds by maturity at December 31, 2023 and 2022, were as follows (in millions):


	2023				2022
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Due in one year or less	$	7,562	$	7,396	$	5,257	$	5,138
Due after one year through five years⁽¹⁾		40,965		39,741		35,959		34,142
Due after five years through ten years		25,625		23,810		26,066		23,167
Due after ten years		27,905		24,094		26,535		21,485

Total	$	102,056	$	95,041	$	93,817	$	83,932

⁽¹⁾ Includes an affiliated bond issued by Madison Capital Funding LLC (“MCF”) and two affiliated bonds issued by NYL Investment Management Holdings LLC (“NYL Investments”). Refer to Note 11 - Related Party Transactions for a more detailed discussion of related party investments.

Corporate bonds are shown based on contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage and asset-backed securities (“ABS”) are not due at a single maturity date and therefore are shown based on the expected cash flows of the underlying loans, which includes estimates of anticipated future prepayments.

In addition to the information disclosed above, short-term investments with a carrying value of $44 million and $2,126 million at December 31, 2023 and 2022, respectively, and cash equivalents with a carrying value of $1,875 million and $4,485 million at December 31, 2023 and 2022, respectively, are due in one year or less. Carrying value approximates fair value for these investments.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)

At December 31, 2023 and 2022, the distribution of gross unrealized gains and losses on bonds were as follows (in millions):


	2023
	Carrying Value		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. governments	$	5,663	$	12	$	1,237	$	4,438
All other governments		247		3		17		233
U.S. special revenue and special assessment		10,509		59		1,011		9,557
Industrial and miscellaneous unaffiliated		81,761		613		5,402		76,972
Parent, subsidiaries, and affiliates⁽¹⁾		3,120		1		34		3,087
SVO identified funds		755		—		—		755

Total	$	102,056	$	687	$	7,702	$	95,041

⁽¹⁾ The balance includes $241 million of ABS investments that are managed by affiliates of the Company but have no credit risk exposure to those affiliates.


	2022
	Carrying Value		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. governments	$	5,532	$	4	$	1,209	$	4,327
All other governments		172		1		17		156
U.S. special revenue and special assessment		10,805		17		1,329		9,493
Industrial and miscellaneous unaffiliated		73,324		139		7,394		66,069
Parent, subsidiaries, and affiliates⁽¹⁾		3,149		1		98		3,052
SVO identified funds		835		—		—		835

Total	$	93,817	$	162	$	10,047	$	83,932

⁽¹⁾ The balance includes $200 million of ABS investments that are managed by affiliates of the Company but have no credit risk exposure to those affiliates.

Common and Preferred Stocks

The following table presents the carrying value and change in unrealized gains (losses) of common and preferred stocks at December 31, 2023 and 2022 (in millions):


	2023					2022
	Carrying Value		Change in Unrealized Gains (Losses)			Carrying Value		Change in Unrealized Gains (Losses)
Common stocks	$	615	$	(172	)	$	1,236	$	(217	)
Preferred stocks		44		(3	)		49		(2	)

Total	$	659	$	(175	)	$	1,285	$	(219	)

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)

Mortgage Loans

The Company’s mortgage loans are diversified by property type, location and borrower, and are collateralized. The maximum and minimum lending rates for new commercial mortgage loans funded during 2023 were 12.7% and 5.5% and funded during 2022 were 7.8% and 2.3%, respectively. For 2023 and 2022, the maximum percentage of any one commercial loan to the value of the collateral at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages, was 92.4% (average percentage was 58.0% and 54.5% at December 31, 2023 and 2022, respectively). For 2023 and 2022, the maximum percentage of any residential loan to the value of the collateral at the time of the loan was 80.0% (average percentage was 46.4% and 49.4% at December 31, 2023 and 2022, respectively). The Company has no significant credit risk exposure to any one individual borrower.

The majority of the Company’s commercial mortgage loans were held in a form of participations with the carrying value of $15,185 million and $15,457 million at December 31, 2023 and 2022, respectively. These loans were originated or acquired by New York Life. Refer to Note 11 - Related Party Transactions for more detail on these transactions.

At December 31, 2023 and 2022, the distribution of the mortgage loan portfolio by property type and geographic location was as follows (in millions):


	2023					2022
	Carrying Value		% of Total			Carrying Value		% of Total
Property Type:
Industrial	$	4,713		30.4	%	$	3,998		25.7	%
Apartment buildings		4,225		27.3			4,672		30.1
Office buildings		3,304		21.3			3,752		24.1
Retail facilities		2,742		17.7			2,773		17.8
Hotels		301		1.9			330		2.1
Other		195		1.3			14		0.2
Residential		4		—			5		—

Total	$	15,484		100.0	%	$	15,544		100.0	%


	2023					2022
	Carrying Value		% of Total			Carrying Value		% of Total
Geographic Location:
Central	$	4,331		28.0	%	$	4,245		27.3	%
Pacific		3,641		23.5			3,798		24.4
South Atlantic		3,530		22.8			3,598		23.1
Middle Atlantic		3,215		20.8			3,081		19.8
New England		673		4.3			805		5.2
Other		93		0.6			17		0.2

Total	$	15,484		100.0	%	$	15,544		100.0	%

At December 31, 2023 and 2022, mortgage loans of $110 million and $110 million, respectively, were past due 90 days and over.

The Company maintains a watchlist of commercial mortgage loans that may potentially be impaired. Some of the general guidelines analyzed to include commercial loans within the watchlist are loan-to-value ratio (“LTV”), asset performance such as debt service coverage ratio, lease rollovers, income and expense hurdles, major tenant or

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)

borrower issues, the economic climate, and catastrophic events, among others. Collateral securing loans placed on the watchlist generally take priority in being revalued in the Company’s inspection/evaluation commercial loan program that revalues properties securing commercial mortgage loans.

Fair value of the collateral for commercial mortgages (excluding credit loans) over $10 million is generally updated every three years, unless a more current appraisal is warranted. For portfolio loans, which are collateralized by multiple commercial properties, inspections are done every three years for approximately 50% of the properties in the portfolio. Commercial mortgages less than $10 million have an on-site inspection performed by an external inspection service generally every three years. If the loan is determined to be potentially troubled, the loan is more frequently monitored as to its status. Certain properties that serve as collateral for commercial mortgages have been placed on a different schedule to address additional risks that resulted from rising interest rates or distress in the market due to return to work issues. LTV, which is based on collateral values, is deemed as one of the key mortgage loan indicators to assess credit quality and to assist in identifying problem loans. At December 31, 2023 and 2022, LTVs on the Company’s mortgage loans were as follows (in millions):


	2023
Loan to Value % (By Class)	Apartment Buildings		Office Buildings		Industrial		Retail Facilities		Hotels		Residential		Other		Total
Above 95%	$	—	$	254	$	—	$	—	$	—	$	—	$	—	$	254
91% to 95%		6		47		—		110		—		—		8		171
81% to 90%		70		462		—		203		36		—		—		771
71% to 80%		91		394		110		254		—		—		14		862
Below 70%		4,059		2,147		4,603		2,176		265		4		173		13,426

Total	$	4,225	$	3,304	$	4,713	$	2,742	$	301	$	4	$	195	$	15,484


	2022
Loan to Value % (By Class)	Apartment Buildings		Office Buildings		Industrial		Retail Facilities		Hotels		Residential		Other		Total
Above 95%	$	14	$	107	$	—	$	—	$	—	$	—	$	—	$	121
91% to 95%		—		—		—		110		—		—		—		110
81% to 90%		—		17		—		109		23		—		—		149
71% to 80%		279		257		91		308		40		—		2		977
Below 70%		4,379		3,371		3,907		2,246		267		5		12		14,187

Total	$	4,672	$	3,752	$	3,998	$	2,773	$	330	$	5	$	14	$	15,544

At December 31, 2023 and 2022, impaired mortgage loans were as follows (in millions):


	2023
Type	Impaired Loans with Allowance for Credit Losses		Related Allowance		Impaired Loans Without Allowance for Credit Losses		Average Recorded Investment		Interest Income Recognized		Interest Income on a Cash Basis During the Period
Residential	$	—	$	—	$	—	$	—	$	—	$	—
Commercial		191		72		110		150		14		11

Total	$	191	$	72	$	110	$	150	$	14	$	11

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)


	2022
Type	Impaired Loans with Allowance for Credit Losses		Related Allowance		Impaired Loans Without Allowance for Credit Losses		Average Recorded Investment		Interest Income Recognized		Interest Income on a Cash Basis During the Period
Residential	$	—	$	—	$	—	$	1	$	—	$	—
Commercial		—		—		110		58		8		8

Total	$	—	$	—	$	110	$	59	$	8	$	8

Other Invested Assets

The carrying value of other invested assets at December 31, 2023 and 2022 consisted of the following (in millions):


	2023		2022
Investment in MCF	$	1,238	$	1,316
Limited partnerships and limited liability companies		1,515		1,476
Other investments		509		623
Real estate investment property		91		93
LIHTC investments		217		197
Loan to affiliate		13		16

Total other invested assets	$	3,583	$	3,721

Net investment income (loss) and change in unrealized gains (losses) for other invested assets for the years ended December 31, 2023, 2022 and 2021 consisted of the following (in millions):


	2023						2022						2021
	Net Investment Income (Loss)			Unrealized Gains (Losses)⁽¹⁾			Net Investment Income (Loss)			Unrealized Gains (Losses)⁽¹⁾			Net Investment Income (Loss)			Unrealized Gains (Losses)⁽¹⁾
Investment in MCF	$	345		$	(79	)	$	176		$	29		$	137		$	169
Limited partnerships and limited liability companies		28			(58	)		11			(12	)		42			176
Other investments		25			(5	)		11			(7	)		9			—
Real estate investment property		17			—			22			—			11			—
LIHTC investments		(17	)		—			(10	)		—			(12	)		—
Loans to affiliates		1			—			1			—			—			—

Total other invested assets	$	399		$	(142	)	$	211		$	10		$	187		$	345

⁽¹⁾ Includes unrealized foreign exchange gains (losses) of $2 million, $(18) million and less than $1 million in 2023, 2022, and 2021, respectively.

Investment in MCF consists of the Company’s equity investment in this affiliate. The Company owns a majority interest in MCF. Dividends are recorded in Net investment income in the accompanying Statutory Statements of Operations when declared and changes in the equity of this investment are recorded in Change in unrealized capital gains on investments in the accompanying Statutory Statements of Financial Position.

Limited partnerships and limited liability companies primarily consist of limited partnership interests in leveraged buy-out funds, mezzanine funds, real estate funds, and other private equity investments. Distributions, other than those deemed a return of capital, are recorded as Net investment income in the accompanying Statutory Statements of Operations. Undistributed earnings are included in Change in net unrealized capital gains on investments in the accompanying Statutory Statements of Changes in Capital and Surplus.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)

Other investments consist primarily of investments in surplus notes, preferred units of limited partnerships, residual tranches of securitizations, and other investments with characteristics of debt. Interest earned on these investments is included in Net investment income in the accompanying Statutory Statements of Operations.

The Company receives tax credits related to its investments in LIHTC partnerships. The Company’s unexpired tax credits on its investments in LIHTC expire within a range of 1 year to 13 years. During 2023, 2022 and 2021, the Company recorded amortization on these investments under the proportional amortized cost method of $17 million, $10 million, and $12 million, respectively. The Company recorded tax credits and other tax benefits on these investments of $20 million, $12 million, and $15 million for 2023, 2022 and 2021, respectively. The minimum holding period required for the Company’s LIHTC investments extends from 1 years to 16 years. The LIHTC investments are periodically subject to regulatory reviews by housing authorities where the properties are located. The Company is not aware of any adverse issues related to such regulatory reviews.

Assets on Deposit or Pledged as Collateral

At December 31, 2023 and 2022, the Company’s restricted assets (including pledged collateral) were as follows ($ in millions):


	2023
	Gross (Admitted and Nonadmitted) Restricted											Percentage
Restricted Asset Category	Total General Account		Total From Prior Year		Increase (Decrease)			Total Nonadmitted Restricted		Total Admitted Restricted		Gross (Admitted and Non-admitted) Restricted to Total Assets			Admitted Restricted to Total Admitted Assets

Collateral held under security lending agreements	$	675	$	675	$	—		$	—	$	675		0.3	%		0.3	%
Subject to reverse repurchase agreements		210		185		25			—		210		0.1			0.1
Subject to dollar repurchase agreements		—		—		—			—		—		0.0			0.0
Letter stock or securities restricted as to sale -excluding Federal Home Loan Bank (“FHLB”) capital stock		37		38		(1	)		—		37		0.0			0.0
FHLB capital stock		25		25		—			—		25		0.0			0.0
On deposit with states		4		4		—			—		4		0.0			0.0
Pledged as collateral not captured in other categories		10		3		7			—		10		0.0			0.0

Total restricted assets	$	961	$	930	$	31		$	—	$	961		0.5	%		0.5	%

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)


	2022
	Gross (Admitted and Nonadmitted) Restricted											Percentage
Restricted Asset Category	Total General Account		Total From Prior Year		Increase (Decrease)			Total Nonadmitted Restricted		Total Admitted Restricted		Gross (Admitted and Non-admitted) Restricted to Total Assets			Admitted Restricted to Total Admitted Assets

Collateral held under security lending agreements	$	675	$	675	$	—		$	—	$	675		0.4	%		0.4	%
Subject to reverse repurchase agreements		185		140		45			—		185		0.1			0.1
Subject to dollar repurchase agreements		—		—		—			—		—		0.0			0.0
Letter stock or securities restricted as to sale -excluding FHLB capital stock		38		40		(2	)		—		38		0.0			0.0
FHLB capital stock		25		29		(4	)		—		25		0.0			0.0
On deposit with states		4		4		—			—		4		0.0			0.0
Pledged as collateral not captured in other categories		3				3			—		3		0.0			0.0

Total restricted assets	$	930	$	888	$	42		$	—	$	930		0.5	%		0.5	%

Loaned Securities and Repurchase Agreements

The Company participates in securities lending programs whereby securities, which are included in investments, are loaned to third-parties for the purpose of enhancing income on securities held through reinvestment of cash collateral received upon lending. For securities lending transactions, the Company requires initial collateral, usually in the form of cash, equal to 102% of the fair value of domestic securities loaned. The borrower of the loaned securities is permitted to sell or repledge those securities. At December 31, 2023, the Company recorded cash collateral received under these agreements of $675 million, and established a corresponding liability for the same amount, which is included in Amounts payable under security lending agreements in the accompanying Statutory Statements of Financial Position. For securities lending transactions, the carrying value of securities classified as bonds and on loan at December 31, 2023 was $688 million with a fair value of $658 million. At December 31, 2022, the carrying value was $740 million, with a fair value of $657 million. The reinvested collateral is reported in bonds, and Cash, cash equivalent and short-term investments in the accompanying Statutory Statements of Financial Position. The total fair value of all reinvested collateral positions was $707 million and $701 million at December 31, 2023 and 2022, respectively.

At December 31, 2023, the carrying value and fair value of securities held under agreements to purchase and resell was $210 million, which were classified as tri-party reverse repurchase agreements and included in Cash, cash equivalents, and short-term investments in the accompanying Statutory Statements of Financial Position. The securities had a weighted average maturity of 2 days and a weighted average yield of 5.3%. At December 31, 2022, the carrying value and fair value of securities held under agreements to purchase and resell was $185 million which were classified as tri-party reverse repurchase agreements and included in Cash, cash equivalents, and short-term investments in the accompanying Statutory Statements of Financial Position. The securities had a weighted average maturity of three days and a weighted average yield of 4.3%.

The Company participates in dollar repurchase agreements to sell and repurchase securities. The purchaser of the securities is permitted to sell or repledge those securities. The liability for repurchasing the assets is included in Borrowed money in the accompanying Statutory Statements of Financial Position. At December 31, 2023 and 2022, the Company was not a party to any dollar repurchase agreements in the general account. At December 31, 2023 and 2022, the Company was not a party to any dollar repurchase agreements in the separate accounts.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)

Collateral Received

At December 31, 2023 and 2022, assets received as collateral reflected within the accompanying Statutory Statements of Financial Position, along with a liability to return such collateral, were as follows ($ in millions):


	2023
Cash Collateral Assets	Book/Adjusted Carrying Value		Fair Value			% Total Assets (Admitted and Nonadmitted)			% Total Admitted Assets
Securities lending	$	675	$	675			0.5	%		0.5	%
Derivatives		838		838			0.6			0.6

Total	$	1,513	$	1,513			1.1	%		1.1	%


	2022
Cash Collateral Assets	Book/Adjusted Carrying Value		Fair Value			% Total Assets (Admitted and Nonadmitted)			% Total Admitted Assets
Securities lending	$	675	$	675			0.5	%		0.5	%
Derivatives		831		831			0.6			0.6

Total	$	1,506	$	1,506			1.1	%		1.1	%


	2023					2022
Recognized Liability to Return Collateral	Amount		% Total Liabilities			Amount			% Total Liabilities
Amounts payable under securities lending agreements	$	675		0.5	%	$	675			0.5	%
Other liabilities (derivatives)		823		0.6			813			0.6
Separate accounts liabilities (derivatives)		14		—			17			—

Total	$	1,513		1.1	%	$	1,506			1.1	%

Cash received on securities lending transactions and repurchase agreements is then reinvested in short-term investments and bonds with various maturities.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)

Composition of Collateral Received

The following tables present the terms and amounts of cash collateral received under security lending transactions and dollar repurchase agreements for the following types of securities loaned at December 31, 2023 and 2022 (in millions):


	2023
	Remaining Contractual Maturity of the Agreements
	Open		30 days or less		31 to 60 days		61 to 90 days		Greater than 90 days		Total
US. Treasury	$	84	$	—	$	—	$	—	$	—	$	84
U.S. government corporation & agencies		1		—		—		—		—		1
Foreign governments		3		—		—		—		—		3
U.S. corporate		498		—		—		—		—		498
Foreign corporate		89		—		—		—		—		89

Total general account securities lending transactions	$	675	$	—	$	—	$	—	$	—	$	675


	2022
	Remaining Contractual Maturity of the Agreements
	Open		30 days or less		31 to 60 days		61 to 90 days		Greater than 90 days		Total
U.S. government corporation & agencies	$	1	$	—	$	—	$	—	$	—	$	1
Foreign governments		4		—		—		—		—		4
U.S. corporate		538		—		—		—		—		538
Foreign corporate		132		—		—		—		—		132

Total general account securities lending transactions	$	675	$	—	$	—	$	—	$	—	$	675

At December 31, 2023 and 2022, there were no separate account securities cash collateral received under securities lending agreements.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)

Reinvestment of Collateral Received

The following tables present the term and aggregate fair value at December 31, 2023 and 2022 from the reinvestment of all collateral received in securities lending and dollar repurchase agreements (in millions):


	2023				2022
Period to Maturity	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Open	$	—	$	—	$	—	$	—
30 days or less		429		429		512		512
31 to 60 days		37		37		—		—
61 to 90 days		42		42		—		—
91 to 120 days		—		—		—		—
121 to 180 days		6		6		—		—
181 to 365 days		36		36		18		18
1 to 2 years		86		86		104		103
2 to 3 years		70		70		68		68
Greater than 3 years		—		—		—		—

Total collateral reinvested	$	706	$	707	$	702	$	701

To help manage the mismatch of maturity dates between the security lending transactions and the related reinvestment of the collateral received, the Company invests in highly liquid assets.

Reverse Repurchase Agreement Transactions

The following table provides contractual maturity, maximum balance during the year, and ending balance for tri-party reverse repurchase agreements at December 31, 2023 and 2022 (in millions):


	2023				2022
	Maximum Balance		Ending Balance		Maximum Balance		Ending Balance
Open - No Maturity	$	—	$	—	$	—	$	—
Overnight	$	—	$	—	$	—	$	—
2 Days to 1 Week	$	221	$	210	$	199	$	185
> 1 Week to 1 Month	$	—	$	—	$	—	$	—
> 1 Month to 3 Months	$	—	$	—	$	—	$	—
> 3 Months to 1 Year	$	—	$	—	$	—	$	—
> 1 Year	$	—	$	—	$	—	$	—

At December 31, 2023 and 2022, the Company did not have any defaulted reverse repurchase agreements.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)

The following table presents the fair value of securities acquired under tri-party reverse repurchase agreement transactions, which were all NAIC rating of 1, for all four quarters of 2023 and 2022 (in millions):


	Maximum Balance		Ending Balance
Fourth Quarter 2023	$	221	$	210
Third Quarter 2023	$	224	$	210
Second Quarter 2023	$	222	$	221
First Quarter 2023	$	221	$	206

Fourth Quarter 2022	$	199	$	185
Third Quarter 2022	$	174	$	151
Second Quarter 2022	$	141	$	131
First Quarter 2022	$	141	$	131

The following table presents the securities at fair value pledged as collateral used in tri-party reverse repurchase agreement transactions by remaining contractual maturity for four quarters of 2023 and 2022 (in millions):


	Overnight and Continuous		30 days or Less		31 to 90 Days		> 90 Days
Maximum Amount
Fourth Quarter 2023	$	—	$	—	$	—	$	226
Third Quarter 2023	$	—	$	—	$	—	$	228
Second Quarter 2023	$	—	$	—	$	—	$	226
First Quarter 2023	$	—	$	—	$	—	$	225

Fourth Quarter 2022	$	—	$	—	$	—	$	203
Third Quarter 2022	$	—	$	—	$	—	$	177
Second Quarter 2022	$	—	$	—	$	—	$	144
First Quarter 2022	$	—	$	—	$	—	$	143

Ending Balance
Fourth Quarter 2023	$	—	$	—	$	—	$	215
Third Quarter 2023	$	—	$	—	$	—	$	214
Second Quarter 2023	$	—	$	—	$	—	$	226
First Quarter 2023	$	—	$	—	$	—	$	210

Fourth Quarter 2022	$	—	$	—	$	—	$	189
Third Quarter 2022	$	—	$	—	$	—	$	154
Second Quarter 2022	$	—	$	—	$	—	$	133
First Quarter 2022	$	—	$	—	$	—	$	133

At December 31, 2023, and 2022, the Company had no recognized receivable for return of collateral or a recognized liability to return collateral.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)

Insurer Self-Certified Securities

The following represents securities for which the Company does not have all the information required for the NAIC to provide an NAIC designation, but for which the Company is receiving timely payments of principal and interest. These securities are referred to as “5GI Securities” ($ in millions):


General Account	2023						2022
Investments	Number of 5GI Securities		Carrying Value		Estimated Fair Value		Number of 5GI Securities		Carrying Value		Estimated Fair Value
Bonds—amortized cost		9	$	14	$	13		2	$	1	$	1
Loan-backed and structured securities -amortized cost		43		44		47		28		11		12

Total general account		52	$	58	$	60		30	$	12	$	13

Separate account:
Loan-backed and structured securities -amortized cost		2	$	—	$	1		2	$	1	$	1

Total separate account		2	$	—	$	1		2	$	1	$	1

Wash Sales

In the course of the Company’s investment management activities, securities may be sold and repurchased within 30 days of the sale date to meet individual portfolio objectives and to achieve the ongoing rebalancing of exposure.

The details by NAIC designation of 3 or below, or unrated, securities sold during the years ended December 31, 2023 and 2022, and reacquired within 30 days of the sale date are as follows ($ in millions):


	2023
Description	NAIC Designation		Number of Transactions		Book Value of Securities Sold		Cost of Securities Repurchased		Realized Gains (Losses)
Bonds		NAIC 3		1	$	1	$	1	$	—
Bonds		NAIC 4		—		—		—		—
Bonds		NAIC 5		—		—		—		—
Bonds		NAIC 6		—		—		—		—
Preferred stock		NAIC 3		—		—		—		—
Preferred stock		NAIC 4		—		—		—		—
Preferred stock		NAIC 5		—		—		—		—
Preferred stock		NAIC 6		—		—		—		—
Common stock⁽¹⁾				5		—		—		—

				6	$	1	$	1	$	—

⁽¹⁾ Book value of securities sold and cost of securities repurchased are both less than a million.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)


	2022
Description	NAIC Designation		Number of Transactions		Book Value of Securities Sold		Cost of Securities Repurchased		Realized Gains (Losses)
Bonds		NAIC 3		—	$	—	$	—	$	—
Bonds		NAIC 4		—		—		—		—
Bonds		NAIC 5		—		—		—		—
Bonds		NAIC 6		—		—		—		—
Preferred stock		NAIC 3		—		—		—		—
Preferred stock		NAIC 4		—		—		—		—
Preferred stock		NAIC 5		—		—		—		—
Preferred stock		NAIC 6		—		—		—		—
Common stock⁽¹⁾				1		—		—		—

				1	$	—	$	—	$	—

⁽¹⁾ Book value of securities sold and cost of securities repurchased are both less than $1 million.

Admitted Negative IMR

The Company admitted all of its negative IMR in the general account and the insulated separate accounts at December 31, 2023, which was $328 million and less than a million, respectively. Of the $328 million in the general account, $68 million relates to cumulative realized gains on bonds and $396 million relates to cumulative realized losses on derivatives. The Company’s IMR balance includes interest-related realized gains and losses arising from sales of its fixed income investments that are done in compliance with the Company’s investment management policies. The Company’s IMR balance includes interest-related realized gains and losses arising from sales of its fixed income investments that are made in compliance with the Company’s investment management policies. The Company engages in prudent portfolio management that may require sales of its fixed income investments in order to rebalance the portfolio and match the duration of the Company’s insurance liabilities. Proceeds from the sale of fixed income investments made for these purposes are reinvested in similar assets. If sales are executed due to liquidity pressures related to the Company’s insurance contracts (i.e., excess withdrawal activity), any related realized gains and losses are not deferred into the IMR. The Company did not have any excess withdrawals as of December 31, 2023.

The Company’s general account IMR balance includes interest-related losses on derivatives of $396 million. This amount includes gross gains of $104 million and gross losses of $432 million on derivatives that were reported at amortized cost; and gross gains of $329 million and gross losses of $397 million on derivatives that were reported at fair value. There were no gains or losses in the insulated separate accounts. The Company uses different derivative instruments to manage interest rate risk. Derivatives trading is made in accordance with the Company’s investment management policies and is in accordance with the Company’s derivatives use plan, which is filed with NYSDFS. The Company is allowed to include realized gains and losses arising from the sale of derivatives carried at fair value while held s as the Company’s policy has historically been to defer in the IMR realized gains and losses from all of its interest rate hedges where the underlying is subject to the IMR regardless of whether the derivative is reported at fair value or amortized cost.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 6—INVESTMENTS (continued)

Negative IMR was admitted up to 10% of the Company’s adjusted Capital and Surplus. Capital and Surplus was adjusted to exclude net positive admitted goodwill, electronic data processing equipment and operating system software, admitted negative IMR, and net deferred tax assets. The computation of adjusted Capital and Surplus for purposes of negative IMR admissibility is included below (in millions):


	Calculation of Limitation as of
	September 30, 2023		December 31, 2023
Capital and surplus	$	8,711
Less:
Admitted positive goodwill		—
Admitted EDP equipment and operating system software		—
Admitted net deferred taxes		605
Exclude admitted disallowed IMR-GA	$	296
Exclude admitted disallowed IMR-SA	$	—

Total adjustments		901

Adjusted capital and surplus	$	7,810

Limitation on amount of negative IMR (adjusted capital and surplus times 10%)	$	781
Current period reported admitted negative IMR in GA			$	328
Current period negative IMR, reported as an asset in the Separate Accounts				—

Total admitted negative IMR			$	328
Current period admitted negative IMR as a % of prior period adjusted capital and surplus				4	%

NOTE 7—DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT

The Company uses derivative instruments to manage interest rate, equity and currency risk, and to replicate otherwise permissible investments. These derivative instruments include foreign currency and bond forwards, interest rate and equity options, interest rate and equity futures, interest rate, total return, credit default and foreign currency swaps. The Company does not engage in derivative instrument transactions for speculative purposes.

The Company may enter into exchange traded futures and over-the-counter (“OTC”) derivative instruments. Exchange traded derivatives are executed through regulated exchanges and require initial and daily variation margin collateral postings. The Company is exposed to credit risk resulting from default of the exchange.

OTC derivatives may either be cleared through a clearinghouse (“OTC-cleared”) or transacted between the Company and a counterparty under bilateral agreements (“OTC-bilateral”). Similar to exchange traded futures, OTC-cleared derivatives require initial and daily variation margin collateral postings. When transacting OTC-cleared derivatives, the Company is exposed to credit risk resulting from default of the clearinghouse and/or default of the Futures Commission Merchant (e.g. clearinghouse agent).

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 7—DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (continued)

When transacting OTC-bilateral derivatives, the Company is exposed to the potential default of its OTC-bilateral counterparty. The Company manages its credit risk by entering into transactions with creditworthy counterparties, using master netting arrangements, and obtaining collateral where appropriate. The Company also deals with a large number of counterparties, thus limiting its exposure to any single counterparty. The Company monitors credit exposures to its OTC-bilateral counterparties by limiting transactions within specified dollar limits and adjusting transaction levels where appropriate, to minimize risk. All of the net credit exposure for the Company from derivatives transactions is with investment-grade counterparties. In addition, certain of the Company’s agreements require that if the Company’s (or its counterparty’s) credit rating were to fall below a specified rating assigned by a credit rating agency, the other party could request immediate payout on all transactions under the agreements or full collateralization of the positions thereunder. The Company’s policy is to not offset amounts for derivatives executed with the same counterparty under the same master netting agreement with the associated collateral.

Collateralization plays a central role in the Company’s mitigation of risk related to derivatives. For OTC-cleared and exchange traded derivatives, the Company obtains collateral through variation margin which is adjusted daily based on the parties’ net derivative position.

For OTC-bilateral derivatives, the Company obtains collateral in accordance with the terms of credit support annexes (“CSAs”) negotiated as part of the master agreements entered into with most OTC-bilateral counterparties. CSAs define the terms under which collateral is transferred between the parties in order to mitigate credit risk arising from “in the money” derivative positions. The Variation Margin CSA requires that an OTC-bilateral counterparty post collateral to secure its anticipated derivative obligation, taking into account netting arrangements. Cash collateral received by the Company under Variation Margin CSAs is invested in short-term investments. The Company also enters into Initial Margin CSAs with many of its OTC-bilateral counterparties. These documents require additional margin to be posted to and collected from counterparties to OTC-bilateral derivatives to cover market movements over a ten day close-out period. This “initial margin” must be maintained at a third-party custodian, without any right of rehypothecation. Securities posted by the Company as collateral under derivative contracts continue to be reported as assets in the Company’s Statutory Statements of Financial Position. Securities received as collateral under derivative contracts are not reported in the Company’s Statutory Statements of Financial Position.

The Company may be exposed to credit-related losses in the event that an OTC-bilateral counterparty fails to perform its obligations under its contractual terms. In contractual arrangements with OTC-bilateral counterparties that do not include netting provisions, in the event of default, credit exposure is limited to the positive fair value of derivatives at the reporting date. In contractual arrangements with OTC-bilateral counterparties that include netting provisions, in the event of default, credit exposure is limited to the net fair value, if positive, of all derivatives at the reporting date. At December 31, 2023 and 2022, the Company held collateral for derivatives of $574 million and $710 million, respectively, including $73 million and $169 million, respectively, of securities. Fair value of derivatives in a net asset position, net of collateral, was $10 million and $7 million at December 31, 2023 and 2022, respectively.

Interest Rate Risk Management

The Company enters into interest rate derivatives primarily to minimize exposure to fluctuations in interest rates on assets and liabilities held by the Company.

Interest rate swaps are used by the Company to hedge interest rate risk for individual and portfolios of assets. Interest rate swaps are agreements with other parties to exchange, at specified intervals, the difference between interest amounts calculated by reference to an agreed upon notional value. Generally, no cash is exchanged at the onset of the contract and no principal payments are made by either party. The Company does not act as an intermediary or broker in interest rate swaps.

Interest rate (Treasury) futures are used by the Company to manage duration of the Company’s fixed income portfolio. Interest rate futures are exchange traded contracts to buy or sell a bond at a specific price at a future date.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 7—DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (continued)

Interest rate options are used by the Company to hedge the risk of increasing interest rates on policyholder liabilities. Under these contracts, the Company will receive payments from counterparties should an agreed upon interest rate level be reached and payments will continue to increase under the option contract until an agreed upon interest rate ceiling, if applicable.

Currency Risk Management

The primary purpose of the Company’s foreign currency hedging activities is to protect the value of foreign currency denominated assets from the risk of changes in foreign exchange rates.

Foreign currency swaps are agreements with other parties to exchange, at specified intervals, principal and interest in one currency for the same in another, at a fixed exchange rate, which is generally set at inception and calculated by reference to an agreed upon notional value. Generally, only principal payments are exchanged at the onset and the end of the contract.

Foreign currency forwards involve the exchange of foreign currencies at a specified future date and at a specified price. No cash is exchanged at the time the agreement is entered into.

Equity Risk Management

The Company purchases equity options and equity futures to minimize exposure to the equity risk associated with guarantees on certain underlying policyholder liabilities. There are upfront fees paid related to option contracts at the time the agreements are entered into.

The Company enters into total return swaps to hedge equity exposure in the general account portfolio.

Replication Transactions

Bond forwards are paired with other investment grade bonds in replication transactions to generate the return and price risk of long-dated fixed income securities.

Credit default swaps are paired with investment grade bonds in replication transactions to generate the return and price risk of long dated corporate bonds.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 7—DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (continued)

The following tables present the notional amount, gross fair value and carrying value of derivative instruments that are qualifying and designated for hedge accounting, by type of hedge designation, and those that are not designated for hedge accounting at December 31, 2023 and 2022 (in millions):


	2023
	Primary Risk Exposure		Notional Amount⁽¹⁾		Fair Value⁽²⁾				Carrying Value⁽³⁾
Derivative Type	Primary Risk Exposure		Notional Amount⁽¹⁾		Asset		Liability		Asset		Liability
Derivatives qualifying and designated:
Cash flow hedges:
Foreign currency swaps		Currency	$	265	$	15	$	3	$	16	$	2
Interest rate swaps		Interest		12		1		—		—		—

Subtotal cash flow hedges				276		15		3		16		2
Fair value hedges:
Foreign currency swaps		Currency		1,025		36		36		32		26
Replications:
Bond forwards		Interest		250		—		82		—		—
Credit default swaps		Interest		275		5		—		2		—

Subtotal replications				525		5		82		2		—

Total derivatives qualifying and designated				1,826		56		122		49		28

Derivatives not designated:
Foreign currency forwards		Currency		238		2		3		2		3
Foreign currency swaps		Currency		3,828		410		28		410		28
Futures		Interest		459		1		—		1		—
Equity options		Equity		14,281		222		—		222		—
Interest rate options		Interest		4,574		20		—		20		—
Interest rate swaps		Interest		8,633		492		162		492		162
Bond forwards		Interest		225		—		11		—		11

Total derivatives not designated				32,237		1,147		205		1,147		205

Total derivatives			$	34,063	$	1,203	$	327	$	1,196	$	233

⁽¹⁾ Notional amount of derivative instruments provides a measure of involvement in these types of transactions and generally does not represent the amount exchanged between the parties engaged in the transaction.

⁽²⁾ For a discussion of valuation methods for derivative instruments refer to Note 9 - Fair Value Measurements.

⁽³⁾ The carrying value of derivatives in an asset position is reported within Other investments and the carrying value of derivatives in a liability position is reported within Other liabilities in the accompanying Statutory Statements of Financial Position.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 7—DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (continued)


	2022
	Primary Risk Exposure		Notional Amount⁽¹⁾		Fair Value⁽²⁾				Carrying Value⁽³⁾
Derivative Type	Primary Risk Exposure		Notional Amount⁽¹⁾		Asset		Liability		Asset		Liability
Derivatives qualifying and designated:
Cash flow hedges:
Foreign currency swaps		Currency	$	277	$	29	$	1	$	25	$	—
Interest rate swaps		Interest		12		1		—		—		—

Subtotal cash flow hedges				289		30		1		25		—
Replications:
Bond forwards		Interest		900		—		308		—		—
Credit default swaps		Interest		250		3		—		3		—

Subtotal replications				1,150		3		308		3		—

Total derivatives qualifying and designated				1,439		33		309		28		—

Derivatives not designated:
Foreign currency forwards		Currency		335		5		12		5		12
Foreign currency swaps		Currency		4,313		721		4		721		4
Futures		Interest		173		—		—		—		—
Equity options		Equity		3,391		52		—		52		—
Interest rate options		Interest		6,015		73		—		73		—
Interest rate swaps		Interest		8,588		481		310		481		310

Total derivatives not designated				22,815		1,332		326		1,332		326

Total derivatives			$	24,254	$	1,365	$	635	$	1,360	$	326

⁽²⁾ For a discussion of valuation methods for derivative instruments refer to Note 9 - Fair Value Measurements.

Derivatives Qualifying and Designated

Cash Flow Hedges

The Company’s cash flow hedges primarily include hedges of floating rate securities and foreign currency denominated assets. Derivative instruments used in cash flow hedges that meet criteria indicating that they are highly effective are valued and reported in a manner that is consistent with the hedged asset.

The Company designates and accounts for the following qualified cash flow hedges: (1) interest rate swaps used to convert floating rate investments to fixed rate investments; (2) foreign currency swaps used to hedge the foreign currency cash flow exposure of foreign currency denominated investments.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 7—DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (continued)

The following table presents the effects of derivatives in cash flow hedging relationships for the years ended December 31, 2023, 2022 and 2021 (in millions):


	Surplus⁽¹⁾							Net Realized Capital Gains (Losses)						Net Investment Income
Derivative Type	2023			2022		2021		2023		2022		2021		2023		2022		2021
Foreign currency swaps	$	(12	)	$	20	$	11	$	2	$	1	$	2	$	3	$	3	$	2
Interest rate swaps		—			—		—		—		—		—		—		—		1

Total	$	(12	)	$	20	$	11	$	2	$	1	$	2	$	3	$	3	$	3

⁽¹⁾ The amount of gain (loss) recognized in surplus is reported as a Change in net unrealized losses on investments in the accompanying Statutory Statements of Changes in Surplus.

Fair Value Hedges

The Company’s fair value hedges primarily consist of hedges of foreign currency denominated assets whereby the Company enters into foreign currency swaps to hedge its foreign currency exposure. Derivative instruments used in fair value hedges that meet criteria indicating that they are highly effective are valued and reported in a manner that is consistent with the hedged asset.

The Company excludes the cross-currency basis spread in its foreign currency swaps from the assessment of effectiveness as allowed under SSAP No. 86. The fair value of the cross-currency basis spread on the Company’s foreign currency swaps, which was excluded from the assessment of effectiveness at December 31, 2023 was $(7) million.


	Gain or (Loss) Recognized in Surplus⁽¹⁾							Gain or (Loss) Recognized in Net Realized Capital Gains (Losses)						Gain or (Loss) Recognized in Net Investment Income
Derivative Type	2023			2022		2021		2023		2022		2021		2023		2022		2021
Foreign currency swaps	$	(37	)	$	—	$	—	$	1	$	—	$	—	$	7	$	—	$	—

Total	$	(37	)	$	—	$	—	$	1	$	—	$	—	$	7	$	—	$	—

Derivatives Replications

The following table presents the effects of derivatives in replication relationships for the years ended December 31, 2023, 2022 and 2021 (in millions):


	Gain or (Loss) Recognized in Surplus⁽¹⁾						Gain or (Loss) Recognized in Net Realized Capital Gains (Losses)									Gain or (Loss) Recognized in Net Investment Income
Derivative Type	2023		2022		2021		2023			2022			2021			2023		2022		2021
Bond forwards	$	—	$	—	$	—	$	(227	)	$	(29	)	$	(173	)	$	7	$	12	$	19
Credit default swaps		—		—		—		—			—			—			—		1		—

Total	$	—	$	—	$	—	$	(227	)	$	(29	)	$	(173	)	$	7	$	13	$	19

⁽¹⁾ The amount of gain (loss) recognized in surplus is reported as a Change in net unrealized capital losses on investments in the accompanying Statutory Statements of Changes in Surplus.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 7—DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT (continued)

Derivatives Not Designated

The following table summarizes the surplus and net income impact on derivative instruments not designated for the years ended December 31, 2023, 2022 and 2021 (in millions):


	Surplus⁽¹⁾									Net Realized Capital Gains (Losses)									Net Investment Income
Derivative Type	2023			2022			2021			2023			2022			2021			2023			2022			2021
Equity options	$	61		$	(14	)	$	5		$	23		$	(8	)	$	(4	)	$	—		$	—		$	—
Foreign currency forwards		6			(13	)		19			(12	)		39			—			—			—			—
Foreign currency swaps		(293	)		420			161			42			(12	)		(3	)		52			61			42
Futures		(8	)		—			—			(11	)		(5	)		(87	)		—			—			—
Interest rate options		(54	)		40			3			(10	)		1			5			1			(3	)		(6	)
Interest rate swaps		152			(59	)		(27	)		6			—			(4	)		(102	)		(3	)		22
Bond forwards		(11	)		—			—			—			—			—			—			—			—
Total return swap		—			—			73			—			—			(147	)		—			—			—

Total	$	(146	)	$	374		$	234		$	37		$	15		$	(240	)	$	(48	)	$	55		$	58

⁽¹⁾ The amount of gain (loss) recognized in surplus is reported as a Change in net unrealized capital gains on investments in the accompanying Statutory Statements of Changes in Surplus.

NOTE 8—SEPARATE ACCOUNTS

Separate Accounts Activity

The Company utilizes separate accounts to record and account for assets and liabilities for particular lines of business and/or transactions, including VUL insurance products guaranteed, VUL insurance products non-guaranteed, VA products non-guaranteed, UL insurance products guaranteed.

In accordance with the domiciliary state procedures for approving items within separate accounts, the classification of the separate accounts is subject to Section 2932 of the Delaware Insurance Code and the regulations thereunder. Assets of guaranteed separate accounts are invested in accordance with the provisions of Chapter 13 of the Delaware Insurance Code.

All items that were permitted for separate accounts reporting were supported by state statute.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 8—SEPARATE ACCOUNTS (continued)

The assets legally and not legally insulated from the general account at December 31, 2023 and 2022 are attributed to the following products or transactions (in millions):


	2023				2022
Product/Transaction	Legally Insulated Assets		Separate Accounts Assets (Not Legally Insulated)⁽¹⁾		Legally Insulated Assets		Separate Accounts Assets (Not Legally Insulated)⁽²⁾
VA products non-guaranteed	$	35,691	$	37	$	32,602	$	38
VUL insurance products non-guaranteed		13,116		—		10,550		2
UL insurance products guaranteed		6,313		39		6,404		34
VUL insurance products guaranteed		189		20		156		22

Total	$	55,309	$	96	$	49,712	$	96

⁽¹⁾ Separate accounts assets classified as not legally insulated support $59 million of remittances and items not allocated and other transfers to the general account due or accrued (net), $17 million of surplus, $17 million of derivatives, $2 million of payable for securities, and $1 million of other liabilities.

⁽²⁾ Separate accounts assets classified as not legally insulated support $40 million of remittances and items not allocated and other transfers to the general account due or accrued (net), $31 million of surplus, $20 million of derivatives, $3 million of other liabilities, and $2 million of payable for securities.

Guaranteed Separate Accounts

The Company maintains four guaranteed separate accounts for UL insurance policies and one guaranteed separate account for a private placement VUL policy, with assets of $6,562 million and $6,615 million at December 31, 2023 and 2022, respectively. These accounts provide a guarantee of principal and interest with a market value adjustment imposed upon certain surrenders. A transfer adjustment charge is imposed upon certain transfers. Interest rates on these contracts may be adjusted periodically. The assets of these separate accounts are stated at amortized cost up to the value of policyholder reserves and at fair value thereafter. Certain derivatives not qualifying for hedge accounting are stated at fair value.

Non-Guaranteed Separate Accounts

The Company maintains non-guaranteed separate accounts for its VA and VUL products, some of which are registered with the Securities and Exchange Commission. Assets in non-guaranteed separate accounts were $48,844 million and $43,193 million at December 31, 2023 and 2022, respectively. The assets of these separate accounts represent investments in shares of New York Life sponsored MainStay VP Funds Trust and other non-proprietary insurance-dedicated funds.

Certain of these variable contracts have guaranteed minimum death benefit (“GMDB”) and guaranteed minimum accumulation benefit (“GMAB”) features that are guaranteed by the assets of the general account.

To compensate the general account for the risk taken, the separate accounts have paid risk charges as follows for the past five years (in millions):


Year	Amount
2023	$	65
2022	$	67
2021	$	62
2020	$	57
2019	$	54

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 8—SEPARATE ACCOUNTS (continued)

The general account of the Company made payments toward separate accounts guarantees as follows for the past five years (in millions):


Year	Amount
2023	$	12
2022	$	12
2021	$	4
2020	$	5
2019	$	3

The general account holds reserves on these guarantees. Refer to Note 12 - Insurance Liabilities for discussion of GMAB and GMDB reserves.

Information regarding the separate accounts of the Company at and for the years ended December 31, 2023 and 2022 is as follows (in millions):


	2023
	Non-Indexed Guarantee Less than / Equal to 4%		Non-Indexed Guarantee More than 4%		Non- Guaranteed Separate Accounts		Total
Premiums, considerations or deposits	$	—	$	—	$	3,046	$	3,046

Reserves at 12/31:
For accounts with assets at:
Fair value	$	—	$	—	$	47,728	$	47,728
Amortized cost		5,792		710		—		6,502

Total reserves	$	5,792	$	710	$	47,728	$	54,230

By withdrawal characteristics:
With fair value adjustment	$	5,792	$	710	$	—	$	6,502
At fair value		—		—		47,728		47,728

Total reserves	$	5,792	$	710	$	47,728	$	54,230


	2022
	Non-Indexed Guarantee Less than / Equal to 4%		Non-Indexed Guarantee More than 4%		Non- Guaranteed Separate Accounts		Total
Premiums, considerations or deposits	$	—	$	—	$	2,539	$	2,539

Reserves at 12/31:
For accounts with assets at:
Fair value	$	—	$	—	$	42,088	$	42,088
Amortized cost		6,035		516		—		6,551

Total reserves	$	6,035	$	516	$	42,088	$	48,639

By withdrawal characteristics:
With fair value adjustment	$	6,035	$	516	$	—	$	6,551
At fair value		—		—		42,088		42,088

Total reserves	$	6,035	$	516	$	42,088	$	48,639

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 8—SEPARATE ACCOUNTS (continued)

The following is a reconciliation of net transfers to (from) the general account to the separate accounts (in millions):


	2023			2022			2021
Transfers to separate accounts	$	3,046		$	2,540		$	4,058
Transfers from separate accounts		(3,694	)		(2,096	)		(2,211	)

Net transfers (from)/to separate accounts	$	(648	)	$	444		$	1,847

Reconciling Adjustment:
Change in reserve valuation basis⁽¹⁾	$	—		$	—		$	62

Net transfers (from)/to separate accounts	$	(648	)	$	444		$	1,909

⁽¹⁾ Refer to Note 12 - Insurance liabilities for more details on change in reserve valuation basis.

NOTE 9—FAIR VALUE MEASUREMENTS

The Company’s financial assets and liabilities carried at fair value have been classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100, “Fair Value Measurements”. Fair value is defined 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. This guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.

The levels of the fair value hierarchy are based on the inputs to the valuation as follows:


Level 1		Fair value is based on unadjusted quoted prices for identical assets or liabilities in an active market. Active markets are defined as a market in which many transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2		Observable inputs other than level 1 prices, such as quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active for identical or similar assets or liabilities, or other model driven inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Valuations are generally obtained from third-party pricing services for identical or comparable assets or liabilities or through the use of valuation methodologies using observable market inputs.

Level 3		Instruments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions in pricing the asset or liability. Pricing may also be based upon broker quotes that do not represent an offer to transact. Prices are determined using valuation methodologies such as option pricing models, discounted cash flow models and other similar techniques. Non-binding broker quotes, which are utilized when pricing service information is not available, are reviewed for reasonableness based on the Company’s understanding of the market, and are generally considered Level 3. To the extent the internally developed valuations use significant unobservable inputs, they are classified as Level 3.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 9—FAIR VALUE MEASUREMENTS (continued)

Determination of Fair Value

The Company has an established and well-documented process for determining fair value. Security pricing is applied using a hierarchy approach whereby publicly available prices are first sought from nationally recognized third-party pricing services. For most private placement securities, the Company applies a matrix-based pricing methodology, which uses spreads derived from third-party benchmark bond indices. For private placement securities that cannot be priced through these processes, the Company uses internal models and calculations. All other securities are submitted to independent brokers for prices. The Company performs various analyses to ascertain that the prices represent fair value. Examples of procedures performed include, but are not limited to, back testing recent trades, monitoring trading volumes, and performing variance analysis of monthly price changes using different thresholds based on asset type. The Company also performs an annual review of all third-party pricing services. During this review, the Company obtains an understanding of the process and sources used by the pricing service to ensure that they maximize the use of observable inputs, the pricing service’s frequency of updating prices, and the controls that the pricing service uses to ensure that their prices reflect market assumptions. The Company also selects a sample of securities and obtains a more detailed understanding from each pricing service regarding how they derived the price assigned to each security. Where inputs or prices do not reflect market participant assumptions, the Company will challenge these prices and apply different methodologies that will enhance the use of observable inputs and data. The Company may use non-binding broker quotes or internal valuations to support the fair value of securities that go through this formal price challenge process. At December 31, 2023 and 2022, the Company did not have any price challenges on general account and separate account securities for what it received from third party pricing services.

In addition, the Company has a pricing committee that provides oversight over the Company’s prices and fair value process for securities. The committee meets quarterly and is responsible for the review and approval of the Company’s valuation procedures. The committee is also responsible for the review of pricing exception reports as well as the review of significant inputs used in the valuation of assets that are valued internally.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 9—FAIR VALUE MEASUREMENTS (continued)

The following tables present the estimated fair value and carrying value of the Company’s financial instruments at December 31, 2023 and 2022 (in millions):


	2023
	Fair Value		Carrying Value		Level 1		Level 2		Level 3		NAV as a Practical Expedient
Assets:
Bonds	$	95,041	$	102,056	$	755	$	89,789	$	4,497	$	—
Preferred stocks		44		44		—		16		28		—
Common stocks⁽¹⁾		615		615		590		—		25		—
Mortgage loans		14,534		15,484		—		—		14,534		—
Cash, cash equivalents and short-term investments		1,696		1,696		217		1,479		—		—
Derivatives		1,203		1,196		—		1,203		—		—
Derivatives collateral		137		137		—		137		—		—
Other invested assets⁽¹⁾		598		593		—		126		472		—
Investment income due and accrued		1,005		1,005		—		1,005		—		—
Separate accounts assets		54,822		55,405		47,291		5,012		934		1,585

Total assets	$	169,695	$	178,231	$	48,853	$	98,767	$	20,490	$	1,585

Liabilities:
Deposit fund contracts:
Annuities certain	$	1,219	$	1,257	$	—	$	—	$	1,219	$	—
Derivatives		327		233		—		327		—		—
Derivatives collateral		823		823		—		823		—		—
Amounts payable under securities lending agreements		678		678		—		678		—		—
Payable to parent and affiliates		131		131		—		131		—		—
Separate accounts liabilities - derivatives		22		18		—		18		4		—

Total liabilities	$	3,200	$	3,140	$	—	$	1,977	$	1,223	$	—

⁽¹⁾ Excludes investments accounted for under the equity method.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 9—FAIR VALUE MEASUREMENTS (continued)


	2022
	Fair Value		Carrying Value		Level 1		Level 2		Level 3		NAV as a Practical Expedient
Assets:
Bonds	$	83,932	$	93,817	$	835	$	79,509	$	3,588	$	—
Preferred stocks		49		49		—		15		34		—
Common stocks⁽¹⁾		1,236		1,236		1,057		7		116		56
Mortgage loans		14,360		15,544		—		—		14,360		—
Cash, cash equivalents and short-term investments		6,401		6,401		170		6,231		—		—
Derivatives		1,365		1,360		—		1,361		4		—
Derivatives collateral		306		306		—		306		—		—
Other invested assets⁽¹⁾		528		528		—		114		414		—
Investment income due and accrued		851		851		—		851		—		—
Separate accounts assets		49,048		49,808		42,069		4,838		994		1,147

Total assets	$	158,076	$	169,900	$	44,131	$	93,232	$	19,510	$	1,203

Liabilities:
Deposit fund contracts:
Annuities certain	$	1,010	$	1,077	$	—	$	—	$	1,010	$	—
Derivatives		635		326		—		635		—		—
Derivatives collateral		813		813		—		813		—		—
Amounts payable under securities lending agreements		675		675		—		675		—		—
Payable to parent and affiliates		140		140		—		140		—		—
Separate accounts liabilities - derivatives		27		22		—		22		5		—

Total liabilities	$	3,300	$	3,053	$	—	$	2,285	$	1,015	$	—

⁽¹⁾ Excludes investments accounted for under the equity method.

Bonds

For U.S. SAP, bonds reported as Level 1 represent investments in certain SVO approved ETF and mutual funds. Valuation of these securities is based on unadjusted quoted prices in active markets that are readily and regularly available. All other ETFs and mutual funds are classified and accounted for as common stock.

Securities priced using a pricing service are generally classified as Level 2. Third-party pricing services generally use an income-based valuation approach by using a discounted cash-flow model or it may also use a market approach by looking at recent trades of a specific security to determine fair value on public securities or a combination of the two. Typical inputs used by these pricing services include, but are not limited to: benchmark yields, reported trades, issuer spreads, bids, offers, benchmark securities, estimated cash flows and prepayment speeds, which the Company has determined are observable inputs.

Private placement securities are primarily priced using a market approach such as a matrix-based pricing methodology, which uses spreads derived from third-party benchmark bond indices. Specifically, the Barclays Investment Grade Corporate Index is used for investment-grade securities and the Citi High Yield Cash Index is used for below investment-grade securities. These indices are two widely recognized, reliable and well regarded benchmarks by participants in the financial services industry, which represent the broader U.S. public bond markets. The spreads derived from each matrix are adjusted for liquidity. The liquidity premium is standardized and based on market transactions. These securities are classified as Level 2.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 9—FAIR VALUE MEASUREMENTS (continued)

Certain private placement securities that cannot be priced using the matrix pricing described above, are priced by an internally developed discounted cash flow model or are priced based on internal calculations. The model uses observable inputs with a discount rate based off spreads of comparable public bond issues, adjusted for liquidity, rating and maturity. The Company assigns a credit rating for private placement securities based upon internal analysis. The liquidity premium is usually based on market transactions. These securities are classified as Level 2.

For some of the private placement securities priced through the model, the liquidity adjustments may not be based on market data, but rather, calculated internally. If the impact of the liquidity adjustment, which usually requires the most judgment, is not significant to the overall value of the security, the security is still classified as Level 2. If it is deemed to be significant, the security is classified as Level 3.

The valuation techniques for most Level 3 bonds are generally the same as those described in Level 2. However, if the investments are less liquid or are lightly traded, there is generally less observable market data, and therefore these investments will be classified as Level 3. Circumstances where observable market data are not available may include events such as market illiquidity and credit events related to the security. In addition, certain securities are priced based upon internal valuations using significant unobservable inputs. If a security could not be priced by a third-party vendor or through internal pricing models, broker quotes are received and reviewed by each investment analyst. These inputs may not be observable. Therefore, Level 3 classification is determined to be appropriate.

Included in bonds are affiliated bonds from MCF and NYL Investments. The affiliated bond from MCF had a carrying value of $2,117 million and a fair value of $2,106 million at December 31, 2023, and a carrying value of $2,187 million and a fair value of $2,128 million at December 31, 2022. The fair value of this security is calculated internally and may include inputs that may not be observable. Therefore, this security is classified as Level 3. Also included in bonds is an affiliated bond from NYL Investments which had a carrying value of $762 million and fair value of $740 million at December 31, 2023, and a carrying value of $762 million and a fair value of $729 million at December 31, 2022. The fair value of this security is calculated internally using observable inputs and is therefore classified as Level 2.

Preferred Stocks

Preferred stocks valued using prices from third-party pricing services generally use a discounted cash flow model or a market approach to arrive at the security’s fair value and are classified as Level 2. Preferred stocks classified as Level 3 are valued based on internal valuations where significant inputs are deemed to be unobservable.

Common Stocks

These securities are comprised of exchange traded U.S. and foreign common stock and mutual funds. The fair value of these securities is primarily based on unadjusted quoted prices in active markets that are readily and regularly available and are classified as Level 1. Common stocks that do not trade in an active market and are valued based on prices obtained from independent pricing vendors using unadjusted quoted prices in active markets for similar securities that are readily and regularly available are classified as level 2. Common stocks priced through an internal valuation where significant inputs are deemed to be unobservable, including securities issued by government organizations where fair value is fixed, are classified as Level 3. For common stocks that do not have a readily available fair value, net asset value (“NAV”) is used as a practical expedient.

Mortgage Loans

The estimated fair value of mortgage loans is determined using an income approach, based upon the present value of the expected cash flows discounted at an interpolated treasury yield plus a spread. The spread is based on management’s judgment and assumptions, which takes into account matters such as property type, LTV and remaining term of each loan, etc. The spread is a significant component of the pricing inputs, and therefore, these investments are classified as Level 3.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 9—FAIR VALUE MEASUREMENTS (continued)

Cash, Cash Equivalents, Short-term Investments and Investment Income Due and Accrued

Cash on hand and money market mutual funds are classified as Level 1. Cash overdrafts (i.e. outstanding checks) are classified as Level 2. Due to the short-term maturities of cash equivalents, short term investments, and investment income due and accrued, carrying value approximates fair value and is classified as Level 2.

Derivatives

The fair value of derivative instruments is generally derived using valuation models that use an income approach, except for derivatives that are exchange-traded, which are valued using quoted prices in an active market. Where valuation models are used, the selection of a particular model depends upon the contractual terms of, and specific risks inherent in the instrument, as well as the availability of pricing information in the market. The Company generally uses similar models to value similar instruments. Valuation model inputs include contractual terms, yield curves, foreign exchange rates, equity prices, credit curves, measures of volatility and other factors. Exchange-traded derivatives are valued using a market approach as fair value is based on quoted prices in active market and are classified as Level 1. OTC derivatives that trade in liquid markets, where model inputs are observable for substantially the full term, are classified as Level 2. Derivatives that are valued based upon models with any significant unobservable market inputs or inputs from less actively traded markets, or where the fair value is solely derived using broker quotations, are classified as Level 3.

Derivatives Collateral

The carrying value of these instruments approximates fair value since these assets and liabilities are generally short-term in nature and are classified as Level 2.

Other Invested Assets

Other invested assets are principally comprised of LIHTC investments and surplus notes, an affiliated loan, preferred units of a limited partnership, and other investments with characteristics of debt. Surplus Notes are valued using prices from third-party pricing services that generally use a discounted cash-flow model or a market approach to arrive at the security’s fair value and are classified as Level 2. The fair value of the affiliated loan and the LIHTC investments is derived using an income valuation approach, which is based on a discounted cash flow calculation using a discount rate that is determined internally and therefore classified as Level 3 (refer to Note 6 - Investments for details on LIHTC investments). The fair value of investments with debt characteristics and the fair value of the majority of residual tranches of securitizations is derived using an income valuation approach, which is based on a discounted cash flow calculation that may or may not use observable inputs and therefore is classified as Level 3. The fair value of the preferred units in a limited partnership is derived internally based on market comparable preferred units and recent transactions by the limited partnership. The valuation technique used required inputs that were both unobservable and significant and therefore classified as Level 3.

Separate Accounts Assets

Separate accounts assets reported as Level 1 in the fair value hierarchy are mostly comprised of ETFs, common stocks and actively traded open-end mutual funds with a daily NAV. The NAV can be observed by redemption and subscription transactions between third parties, or may be obtained from third-party asset managers. Common stocks are generally traded on an exchange. Separate accounts assets reported as Level 2 relate to investments in U.S. government and treasury securities, corporate bonds and mortgage-backed securities. These separate accounts assets are valued and assigned within the fair value hierarchy, consistent with the methodologies described herein for similar financial instruments held within the general account of the Company.

Separate accounts assets reported as Level 3 relate to investments in corporate bonds. These are instruments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 9—FAIR VALUE MEASUREMENTS (continued)

The following tables provide additional information for investments that are measured at fair value using NAV as a practical expedient, as allowed under authoritative guidance, for investments that meet specified criteria (in millions):

2023

Category of

Investment

Strategy

Fair Value
Determined
using NAV

Unfunded
Commitments

Redemption Frequency

Redemption Notice Period

Hedge Fund

Multi-Strategy

1,474

—

Monthly, Quarterly, Semi Annually and Annually

180 days or less

Hedge Fund

Fixed Income Arbitrage

—

Quarterly

100 days or less

Hedge Fund

Sector Investing

—

Monthly

30 days

Hedge Fund

Long/Short Equity

—

Monthly

30 days

Private Equity

Venture Capital

—

Quarterly

95 days

Mutual Fund

Multi Strategy, Global Allocation

—

Quarterly, Weekly

5 days - 45 days (Assets subject to lock up periods)

1,585

—

2022

Category of
Investment

Investment Strategy

Fair Value
Determined
using NAV

Unfunded
Commitments

Redemption Frequency

Redemption Notice Period

Hedge Fund

Multi-Strategy

1,067

—

Monthly, Quarterly, Semi Annually and Annually

180 days or less

Hedge Fund

Fixed Income Arbitrage

—

Quarterly

100 days or less

Hedge Fund

Sector Investing

—

Monthly

30 days

Hedge Fund

Long/Short Equity

—

Monthly

30 days

Private Equity

Venture Capital

—

Quarterly

95 days

Mutual Fund

Multi Strategy, Global Allocation

—

Quarterly, Weekly

5 days - 45 days (Assets subject to lock up periods)

1,203

—

Annuities Certain

Fair values for annuities certain liabilities are estimated using discounted cash flow calculations based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued.

Separate Accounts Liabilities – Derivatives

For separate accounts derivative instruments, fair value is determined using the same procedures as the general account disclosed above.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 9—FAIR VALUE MEASUREMENTS (continued)

The following tables present the balances of assets and liabilities measured at fair value at December 31, 2023 and 2022 (in millions):


	2023
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		NAV as a Practical Expedient		Total
Assets at fair value
Bonds
SVO-identified bond ETF	$	755	$	—	$	—	$	—	$	755
Non-agency ABS		—		—		—		—		—

Total bonds		755		13		—		—		768
Preferred stocks		—		15		28		—		43
Common stocks		590		—		25		—		615
Derivatives		1		1,146		—		—		1,147
Separate accounts assets		47,260		9		—		1,585		48,854
Other invested assets		—		—		158		—		158

Total assets at fair value	$	48,606	$	1,183	$	211	$	1,585	$	51,585

Liabilities at fair value
Derivatives	$	—	$	205	$	—	$	—	$	205
Separate accounts liabilities - derivatives⁽¹⁾		—		2		—		—		2

Total liabilities at fair value	$	—	$	207	$	—	$	—	$	207

⁽¹⁾ Separate account contract holder liabilities are not included in the table as they are reported at contract value and not fair value in the Company’s statutory financial statements.


	2022
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		NAV as a Practical Expedient		Total
Assets at fair value
Bonds
SVO-identified bond ETF	$	835	$	—	$	—	$	—	$	835
Non-agency ABS		—		—		6		—		6

Total bonds		835		—		6		—		841
Preferred stocks		—		15		34		—		49
Common stocks		1,057		7		116		56		1,236
Derivatives		—		1,328		4		—		1,332
Separate accounts assets		42,046		9		17		1,147		43,219
Other invested assets		—		—		87		—		87

Total assets at fair value	$	43,938	$	1,359	$	264	$	1,203	$	46,764

Liabilities at fair value
Derivatives	$	—	$	326	$	—	$	—	$	326
Separate accounts liabilities - derivatives⁽¹⁾		—		3		—		—		3

Total liabilities at fair value	$	—	$	329	$	—	$	—	$	329

⁽¹⁾ Separate accounts contract holder liabilities are not included in the table as they are reported at contract value and not fair value in the Company’s statutory financial statements.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 9—FAIR VALUE MEASUREMENTS (continued)

The tables below present a rollforward of Level 3 assets and liabilities for the years ended December 31, 2023 and 2022 (in millions):


2023
	Balance at 1/1		Transfers into Level 3		Transfers out of Level 3			Total Gains (Losses) Included in Net Income			Total Gains (Losses) Included in Surplus			Purchases		Issuances		Sales			Settlements			Balance at 12/31
Bonds:
U.S. corporate	$	—	$	—	$	—		$	—		$	—		$	—	$	—	$	—		$	—		$	—
Non-agency ABS		6		—		(6	)		—			—			—		—		—			—			—

Total bonds		6		—		(6	)		—			—			—		—		—			—			—
Preferred Stocks		34		—		—			(1	)		(5	)		—		—		—			—			28
Common stocks		116		—		—			67			(79	)		—		—		(79	)		—			25
Derivatives		4		—		(4	)		—			—			—		—		—			—			—
Separate accounts assets		17		—		(3	)		11			(13	)		—		—		(12	)		—			—
Other invested assets		87		38		—			(30	)		(6	)		78		—		(9	)		—			158

Total	$	264	$	38	$	(13	)	$	47		$	(103	)	$	78	$	—	$	(100	)	$	—		$	211


2022
	Balance at 1/1		Transfers into Level 3		Transfers out of Level 3			Total Gains (Losses) Included in Net Income			Total Gains (Losses) Included in Surplus			Purchases		Issuances		Sales			Settlements			Balance at 12/31
Bonds:
U.S. corporate	$	—	$	—	$	—		$	—		$	—		$	—	$	—	$	—		$	—		$	—
Non-agency ABS		12		—		(3	)		—			(1	)		7		—		—			(9	)		6

Total bonds		12		—		(3	)		—			(1	)		7		—		—			(9	)		6
Preferred stocks		34		—		—			—			—			—		—		—			—			34
Common stocks		74		—		—			—			46			2		—		(6	)		—			116
Derivatives		—		—		—			(3	)		7			—		—		—			—			4
Separate accounts assets		8		—		—			(1	)		10			—		—		—			—			17
Other invested assets		87		—		—			—			—			—		—		—			—			87

Total	$	215	$	—	$	(3	)	$	(4	)	$	62		$	9	$	—	$	(6	)	$	(9	)	$	264

Transfers Between Levels

Transfers between levels may occur due to changes in valuation sources, or changes in the availability of market observable inputs, which generally are caused by changes in market conditions such as liquidity, trading volume or bid-ask spreads, or as a result of a security measured at amortized cost at the beginning of the period, but measured at estimated fair value at the end of the period, or vice versa due to a ratings downgrade or upgrade.

Transfers into and out of Level 3

The Company’s basis for transferring assets and liabilities into and out of Level 3 is based on changes in the observability of data, a change in the security’s measurement.

Transfers into Level 3 totaled $38 million for the year ended December 31, 2023, which primarily relates to residual tranches of securitizations that were measured at amortized cost at the beginning of the period and measured at fair value at the end of the period. Transfers out of Level 3 totaled $13 million for the year ended December 31, 2023, which primarily relates to $6 million of non-agency asset-backed securities measured at fair value at the beginning of the period and measured at amortized cost at the end of the period; and derivatives securities of $4 million and separate account derivatives securities of $3 million that had price level changes from 3 to 2 due to increase in interest rates in 2023 which changed the market to active and observable.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 9—FAIR VALUE MEASUREMENTS (continued)

Transfers into Level 3 is less than $1 million for the year ended December 31, 2022, which primarily relates to a U.S. corporate security measured at amortized cost at the beginning of the period and measured at fair value at the end of the period. Transfers out of Level 3 totaled $3 million for the year ended December 31, 2022, which primarily relates to non-agency asset-backed securities measured at fair value at the beginning of the period and measured at amortized cost at the end of the period.

There were no liabilities measured at fair value at December 31, 2023 and 2022.

NOTE 10—INVESTMENT INCOME AND CAPITAL GAINS AND LOSSES

The components of net investment income for the years ended December 31, 2023, 2022, and 2021 were as follows (in millions):


	2023			2022			2021
Bonds	$	4,091		$	3,361		$	3,319
Common and preferred stocks		33			23			32
Mortgage loans		757			638			632
Policy loans		53			53			64
Other invested assets¹		419			221			197
Short-term investments		156			55			2
Derivative instruments		(30	)		71			80

Gross investment income		5,479			4,422			4,326
Investment expenses		(266	)		(192	)		(169	)

Net investment income		5,213			4,230			4,157
Net gain from separate accounts		60			46			56
Amortization of IMR		3			28			48

Net investment income, including net gain from separate accounts and amortization of IMR	$	5,276		$	4,304		$	4,261

⁽¹⁾ Includes real estate net investment income of $17 million, $22 million, and $11 million for the years ended December 31, 2023, 2022, and 2021, respectively. Includes dividend received from MCF of $345 million, $176 million and $137 million for the years ended December 31, 2023, 2022, and , 2021, respectively. Refer to Note 11 – Related Party Transactions.

Due and accrued investment income is excluded from surplus when amounts are over 90 days past due or collection is uncertain. At December 31, 2023 and 2022, the Company reported admitted due and accrued investment income of $1,005 million and $851 million, respectively. At December 31, 2023 and 2022, the Company did not have any nonadmitted due and accrued investment income on bonds. For certain fixed income instruments, the contractual agreement allows the issuer/borrower to defer interest (Paid-in-Kind interest). When interest is deferred, it is capitalized into principal. At December 31, 2023, the Company had paid-in-kind interest of $469 million, which has been included in the principal amount of the Company’s bonds of $432 million and mortgage loans of $36 million.

The following table shows the Company’s securities redeemed or otherwise disposed of as a result of a callable feature (including make whole call provisions) or tender and the amount of investment income generated as a result of a prepayment penalty and/or acceleration fee ($ in millions):


	2023				2022				2021
	General Account⁽¹⁾		Separate Account		General Account⁽¹⁾		Separate Account		General Account⁽¹⁾		Separate Account
Number of cusips		30		11		146		77		302		177
Investment income	$	4	$	1	$	39	$	3	$	137	$	8

⁽¹⁾ Included in the net investment income on bonds. Refer to net investment income table above.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 10—INVESTMENT INCOME AND CAPITAL GAINS AND LOSSES (continued)

For the years ended December 31, 2023, 2022, and 2021, net realized capital gains (losses) were as follows (in millions):


	2023			2022			2021
Bonds	$	(167	)	$	(110	)	$	160
Mortgage loans		(3	)		(12	)		4
Common and preferred stocks		305			45			73
Other invested assets		(61	)		18			(9	)
Derivatives		(186	)		(12	)		(408	)

Net realized capital losses before tax and transfers to the IMR		(112	)		(71	)		(180	)
Less:
Capital gains tax (benefit)/expense		(41	)		16			47
Net realized capital losses after tax transferred to IMR		(259	)		(50	)		(70	)

Net realized capital gains/(losses) after tax and transfers to the IMR	$	188		$	(37	)	$	(157	)

Proceeds from investments in bonds sold were $3,342 million, $3,940 million, and $1,857 million for the years ended December 31, 2023, 2022, and 2021, respectively. Gross gains of $19 million, $42 million, and $169 million in 2023, 2022 and 2021, respectively, and gross losses of $130 million, $78 million, and $26 million in 2023, 2022, and 2021, respectively, were realized on these sales. The Company computes gains and losses on sales under the specific identification method.

The following table provides a summary of OTTI losses included as realized capital losses for the years ended December 31, 2023, 2022 and 2021 (in millions):


	2023		2022		2021
Bonds	$	22	$	72	$	23
Common and preferred stocks		33		14		3
Other invested assets		59		27		6
Mortgage Loans		3		12		—

Total	$	117	$	125	$	32

Refer to Note 19 - Loan-Backed and Structured Security Impairments for a list with each loan-backed and structured security at a CUSIP level where the present value of cash flows expected to be collected is less than the amortized cost basis during the current reporting period.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 10—INVESTMENT INCOME AND CAPITAL GAINS AND LOSSES (continued)

The following tables present the Company’s gross unrealized losses and fair values for bonds and equity securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2023 and 2022 (in millions):


	2023
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses⁽¹⁾
Bonds
U.S. governments	$	636	$	113	$	3,222	$	1,124	$	3,858	$	1,237
All other governments		22		1		142		16		164		17
U.S. Special Revenue and Special Assessment		881		68		7,013		943		7,894		1,011
Industrial and miscellaneous unaffiliated		6,557		430		51,349		4,989		57,906		5,419
Parent, subsidiaries, and affiliates⁽²⁾		139		1		2,839		33		2,978		34
SVO identified Funds		—		—		212		18		212		18

Total bonds		8,235		613		64,777		7,123		73,012		7,736

Equity securities (unaffiliated)
Common stocks		67		8		1		—		68		8
Preferred stocks		—		—		—		—		—		—

Total equity securities		67		8		1		—		68		8

Total	$	8,302	$	621	$	64,778	$	7,123	$	73,080	$	7,744

⁽¹⁾ Includes unrealized losses related to NAIC 6 bonds of $17 million and $18 million of Bond ETF MTM losses included in the statutory carrying amount.

⁽²⁾ The unrealized losses include less than $1 million of ABS investments that are managed by affiliates of the Company but have no credit risk exposure to those affiliates.


	2022
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses⁽¹⁾
Bonds
U.S. governments	$	3,921	$	1,185	$	132	$	24	$	4,053	$	1,209
All other governments		98		11		34		6		132		17
U.S. Special Revenue and Special Assessment		8,247		1,291		208		38		8,455		1,329
Industrial and miscellaneous unaffiliated		55,347		6,524		6,734		870		62,081		7,394
Parent, subsidiaries, and affiliates⁽²⁾		2,789		76		208		22		2,997		98

Total bonds		70,402		9,087		7,316		960		77,718		10,047

Equity securities (unaffiliated)
Common stocks		1,048		77		19		—		1,067		77
Preferred stocks		3		1		—		—		3		1

Total equity securities		1,051		78		19		—		1,070		78

Total	$	71,453	$	9,165	$	7,335	$	960	$	78,788	$	10,125

⁽¹⁾ Includes unrealized losses related to NAIC 6 bonds of less than $1 million included in the statutory carrying amount.

⁽²⁾ The unrealized losses include $3 million of ABS investments that are managed by affiliates of the Company but have no credit risk exposure to those affiliates.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 10—INVESTMENT INCOME AND CAPITAL GAINS AND LOSSES (continued)

At December 31, 2023, the gross unrealized loss on bonds and equity securities was comprised of approximately 10,211 and 371 different securities, respectively, which are included in the table above. Of the total amount of bond unrealized losses, $7,443 million or 96% is related to unrealized losses on investment grade securities and $293 million or 4% is related to below investment grade securities. At December 31, 2022, the gross unrealized loss on bonds and equity securities was comprised of approximately 11,372 and 630 different securities, respectively, which are included in the table above. Of the total amount of bond unrealized losses, $9,614 million, or 96%, is related to unrealized losses on investment grade securities and $433 million, or 4%, is related to below investment grade securities. Investment grade is defined as a security having a credit rating from the NAIC of 1 or 2; a rating of Aaa, Aa, A or Baa from Moody’s or a rating of AAA, AA, A or BBB from Standard & Poor’s (“S&P”); or a comparable internal rating if an externally provided rating is not available.

The amount of gross unrealized losses for bonds where fair value had declined by 20% or more of the amortized cost, totaled $2,943 million. The period of time that each of these securities has continuously been below amortized cost by 20% or more consists of $86 million for six months or less, $406 million for greater than six months through 12 months, and $2,451 million for greater than 12 months. In accordance with the Company’s impairment policy, the Company performed quantitative and qualitative analysis to determine if the decline was temporary. For those securities where the decline was considered temporary, the Company did not recognize an impairment when it had the ability and intent to hold until recovery.

The change in unrealized capital gains (losses) for the years ended December 31, 2023, 2022 and 2021 were as follows (in millions):


	Change in Unrealized Gains (Losses)									Change in Unrealized Foreign Exchange Gains (Losses)								Total Change in Unrealized Gains (Losses)
	2023			2022			2021			2023		2022			2021			2023			2022			2021
Bonds	$	27		$	(42	)	$	(2	)	$	236	$	(351	)	$	(113	)	$	263		$	(393	)	$	(115	)
Preferred Stocks		(3	)		(2	)		17			—		—			—			(3	)		(2	)		17
Common stocks unaffiliated		(182	)		(210	)		231			11		(7	)		(18	)		(172	)		(217	)		213
Mortgage loans		(72	)		4			(3	)		—		—			—			(72	)		4			(3	)
Other invested assets		(144	)		28			345			2		(18	)		—			(142	)		10			345
Cash, cash equivalents and short-term investments		—			—			—			2		2			—			2			2			—
Derivatives		(195	)		393			244			—		—			—			(195	)		393			244

Total change in unrealized on investments		(569	)		171			832			251		(374	)		(131	)		(319	)		(203	)		701

Capital gains tax (benefit) expense		(50	)		(49	)		112			—		—			—			(50	)		(49	)		112

Total change in unrealized gains (losses), net of tax	$	(519	)	$	220		$	720		$	251	$	(374	)	$	(131	)	$	(268	)	$	(154	)	$	589

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 11—RELATED PARTY TRANSACTIONS

Capital Contributions

For the years ended December 31, 2023 and 2022, the Company made no capital contribution to MCF. For the year ended December 31, 2021, the Company made capital contributions to MCF of $66 million.

Dividend Distributions

For the year ended December 31, 2023, the Company paid no cash dividend to its parent company, New York Life. For the years ended December 31, 2022 and 2021, the Company paid a cash dividend to its parent company, New York Life, in the amount of $400 million and $942 million, respectively.

For the years ended December 31, 2023, 2022 and 2021, the Company received dividend distributions from MCF of $345 million, $176 million and $137 million, respectively.

Material Transactions

The following table presents material related party transactions between the Company, its parent, and its affiliates, for the years ended December 31, 2023 and 2022:


Date of Transaction	Name of Related Party	Nature of Relationship	Type of Transaction	Description
Loans and Credit Agreements:
12/31/2015 (last amended as of 12/31/2022)	MCF	Non- insurance affiliate	Note funding agreement	The Company and New York Life entered into a note funding agreement with MCF (as amended from time to time, the (“MCF Note Agreement”) and acquired a variable funding note issued by MCF. The note was most recently reissued on December 31, 2022 due to the Company’s transfer of a portion of its interest to Life Insurance Company of North America (“LINA”), direct wholly owned subsidiaries of the Company. The funding limit is determined using 2.25% multiplied by the cash and invested assets amount, as of such date of determination. Cash and invested assets amount means, as of any date of determination, the sum of (x) the net admitted cash and invested assets of the Company (y) the net admitted cash and invested assets of New York Life (excluding any portion thereof attributable to New York Life’s investment in the Company), and LINA, in each case, based on the most recently available quarterly or annual financial statements of New York Life, LINA or the Company, as applicable. All outstanding advances made to MCF under the MCF Note Agreement will be due in full on December 31, 2025.

12/23/2004 (last amended as of 12/30/2022)	New York Life Capital Corporation (“NYLCC”)	Non- insurance affiliate	Revolving credit agreement	NYLCC has agreed to make loans to the Company in an amount up to, but not exceeding, $3,500 million from proceeds from the issuance of commercial paper. During 2023 and 2022, the revolving credit facility was not used, no interest was paid and no outstanding balance was due.

9/30/1993 (last amended on 12/30/2022)	New York Life	Parent	Revolving credit agreement	The Company has a revolving credit agreement with New York Life whereby the Company may borrow in the amount of up to $3,500 million. At December 31, 2023 and 2022, the Company has not borrowed under this agreement.

4/1/1999 (last amended as of 12/30/2022)	New York Life	Parent	Revolving credit agreement	The Company has a revolving credit agreement with New York Life, whereby the Company may lend in the amount of up to $900 million. During 2021, NYLIC borrowed and repaid a $600 million loan to the Company. $3,288 of interest was paid, and there was no outstanding balance due at December 31, 2021. At December 31, 2023 and 2022, the Company has not borrowed under this agreement.

Service Agreements:

4/27/2006 (amended from time to time	NYLIFE Distributors, LLC.	Non- insurance affiliate	Variable product distribution agreement	The Company has appointed NYLIFE Distributors, LLC as the underwriter and/ or wholesale distributor of the Company’s variable products. For the years ended December 31, 2023, 2022 and 2021, the Company received service fees of $40 million, $44 million and $50 million, respectively, under a 12b-1 Plan Services Agreement, in consideration for providing 12b-1 Plan services attributable to the variable products.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 11—RELATED PARTY TRANSACTIONS (continued)


Date of Transaction	Name of Related Party	Nature of Relationship	Type of Transaction	Description
Amended and restated at 5/29/2009	New York Life	Parent	Administration agreement	New York Life provides the Company with certain services and facilities including, but not limited to accounting, tax and auditing services, legal services, actuarial services, electronic data processing operations and communications operations. New York Life charges the Company for the identified costs associated with these services and facilities under the terms of a service agreement between New York Life and the Company. For the years ended December 31, 2023, 2022 and 2021, the fees incurred associated with these services and facilities, amounted to $983 million, $915 million and $862 million, respectively, and are reflected in Operating expenses and Net investment income in the accompanying Statutory Statements of Operations.

Various	New York Life	Parent	Participation in mortgage loans, Real estate owned and real estate	The Company’s interests in commercial mortgage loans are primarily held in the form of participations in mortgages` originated or acquired by New York Life. A real estate property acquired through foreclosure is called REO Portfolio. The Company’s interests in the ownership of REO Portfolio is called REO Ownership Interest. Certain real estate investments acquired may have similar ownership interests through a participation. Under the participation agreement for the mortgage loans, it is agreed between the Company and New York Life that the Company’s proportionate interest (as evidenced by a participation certificate) in the underlying mortgage loan, including without limitation, the principal balance thereof, all interest which accrues thereon, and all proceeds generated therefrom, will be pari passu with New York Life’s and pro rata based upon the respective amounts funded by New York Life and the Company in connection with the applicable mortgage loan origination or acquisition. Consistent with the participation arrangement, all mortgage loan documents name New York Life (and not both New York Life and the Company) as the lender but are held for the benefit of both the Company and New York Life pursuant to the applicable participation agreement. New York Life retains general decision making authority with respect to each mortgage loan, although certain decisions require the Company’s approval. The Company’s mortgage loans, REOs and certain real estate investments acquired through a participation from New York Life had a carrying value of $15,221 million and $15,495 million as of December 31, 2023 and 2022, respectively. There’s no REO in the form of participations owned by the Company as of December 31, 2023 and 2022.

1/1/2005 (amended 3/28/2014)	New York Life Investment Management LLC (“NYLIM”)	Non- insurance affiliate	Administrative service agreement	NYLIM has a management agreement with the MainStay VP Funds Trust (“the Fund”), a registered investment company whose shares are sold to various separate accounts of the Company. Under the terms of the agreement, NYLIM pays the Company administrative fees for providing services to the Fund.

4/1/2000, as amended from time to time	NYL Investors, LLC	Non- insurance affiliate	Investment advisory agreement	The Company is a party to an investment advisory agreement with NYL Investors, LLC, as amended from time to time, to receive investment advisory and administrative services from NYL Investors, LLC. The payments are required to be made within 90 days from the time of billing.

6/30/2008, as amended from time to time	NYLIFE Securities, LLC	Non- insurance affiliate	Service fee agreement	The Company pays NYLIFE Securities LLC a service fee for supervisory services based on a determined revenue factor based on sales and in-force business.

Other Agreements:

Various	New York Life	Parent	Sale of corporate owned life insurance policies (“COLI”)	The Company sold various COLI policies to New York Life for the purpose of informally funding certain benefits for New York Life employees and agents. These policies were issued on the same terms as policies sold to unrelated customers. At December 31, 2023 and 2022, policyholder reserve balances for these policies amounted to $4,308 million and $4,181 million, respectively, and were included in Policy reserves and Separate accounts liabilities in the accompanying Statutory Statements of Financial Position.

10/5/2017	REEP-OFC 2300 Empire LLC / Retreat at Seven Bridges	Non- insurance affiliate	Mortgage loan on real estate	In connection with the acquisition of an office building by REEP-OFC 2300 Empire LLC and a pledge of an unleveraged equity interest in the owner of Retreat at Seven Bridges, an existing multifamily property, the Company provided a first mortgage loan to REEP-OFC 2300 Empire LLC and REEP-MF Woodridge IL LLC.

6/11/2012	New York Life	Parent	Tenancy in common agreement	In connection with a $150 million land acquisition of a fee simple estate in land underlying an office building and related improvements and encumbered by a ground lease located at 1372 Broadway, New York, NY by New York Life (73.8% interest) and the Company (26.2% interest), the Company and New York Life entered into a Tenancy in Common Agreement in which the agreement sets forth the terms that govern, in part, each entity’s interest in the property.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 11—RELATED PARTY TRANSACTIONS (continued)


Date of Transaction	Name of Related Party	Nature of Relationship	Type of Transaction	Description
Various	New York Life	Parent	Structured settlement agreements	The Company has sold certain annuity contracts to New York Life in order that New York Life may satisfy its third-party obligations under certain structured settlement agreements. The Company has been directed by New York Life to make the payments under the annuity contracts directly to the beneficiaries under these structured settlement agreements. At December 31, 2023 and 2022, the policyholder reserves related to these contracts amounted to $148 million and $147 million, respectively, and are included in Policy reserves in the accompanying Statutory Statements of Financial Position.

Various	New York Life	Parent	Structured settlement agreements	The Company is the assumed obligor for certain structured settlement agreements with unaffiliated insurance companies, beneficiaries and other non-affiliated entities. To satisfy its obligations under these agreements, the Company owns all rights, title and interest in and to certain structured settlement annuity contracts issued by New York Life. The obligations are based upon the actuarially determined present value of expected future payments. Interest rates used in establishing such obligations ranged from 3.50% to 7.65%. The Company has directed New York Life to make the payments under the annuity contracts directly to the beneficiaries under the structured settlement agreements. At December 31, 2023 and 2022, the carrying value of the interest in annuity contracts and the corresponding obligations under structured settlement agreements amounted to $10,774 million and $10,236 million, respectively.

Various	New York Life	Parent	Premiums settlement agreement	The Company has an agreement in place with NYLIC to settle premiums associated with the Company’s products sold at field offices. These premiums are typically settled within 1-2 business days. The Company had a receivable of $11 million and $26 million, respectively, for the years ended December 31, 2023 and 2022.

Significant Transactions:

11/29/2022	NYLIC / LINA	Parent / Insurance affiliate	Transfer of assets	Bond asset and cash transfers between the Company, NYLIC and LINA were executed to strengthen duration alignment between asset and liability profiles amongst the insurance companies. The Company acquired bonds with a book value of $2,415 million, including realized losses and accrued interest, and cash of $1,419 million from NYLIC in exchange for bonds valued at $3,801 million. In addition, the Company acquired $250 million of bonds from LINA in exchange for transferring a $250 million equity interest in MCF.

12/31/2020	LINA	Insurance Affiliate	Reinsurance agreement	The Company has an affiliated reinsurance agreement to reinsure mortality risk arising under LINA’s group term life insurance business on a yearly renewable term basis. Additional details of this agreement are included in Note 13 “Reinsurance”.

Various	NYLARC	Insurance Affiliate	Reinsurance agreement	The Company has reinsurance agreements with New York Life Agents Reinsurance Company (“NYLARC”). Additional details of this agreement are included in Note 13 “Reinsurance”.

At December 31, 2023 and 2022, the Company reported a net amount of $94 million and $85 million, respectively, as amounts payable to parent and affiliates. The terms of the underlying agreements generally require that these amounts be settled in cash within 90 days.

In the ordinary course of business, the Company enters into reinsurance agreements with its parent and affiliates. Material reinsurance agreements have been disclosed in Note 13 – Reinsurance. In addition, the Company may enter into guarantees and/or keep wells with its parent and affiliates. Material guarantee agreements and/ or keep wells have been disclosed in Note 15 – Commitments and Contingencies.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 12—INSURANCE LIABILITIES

Insurance liabilities at December 31, 2023 and 2022 were as follows (in millions):


	2023		2022
Life insurance reserves	$	29,546	$	29,525
Annuity reserves and supplementary contracts with life contingencies		83,406		80,033
Asset adequacy and special reserves		38		137

Total policy reserves		112,990		109,695
Deposit funds		1,583		1,441
Policy claims		1,041		1,049

Total insurance liabilities	$	115,614	$	112,185

Life Insurance Reserves

Reserves for life insurance policies are maintained principally using the 1958 Commissioners’ Extended Term Mortality Table and the 1958, 1980 and 2001 Commissioners’ Standard Ordinary Mortality Tables under the Commissioners’ Reserve Valuation Method or Net Level Premium Reserve Method with valuation interest rates ranging from 3.0% to 6.0%. Reserves for universal life secondary guarantee products with multiple sets of cost of insurance are determined using the methodology outlined in the November 2011 Life Actuarial Task Force Statement.

In 2021, the Department granted approval for the Company to change the valuation basis for reserves for certain blocks of life insurance policies from the minimum statutory reserve standard required under either New York or Washington law to the NAIC valuation basis. The Company recorded a net change in reserve valuation basis of $31 million for the year ended December 31, 2023, which was reported as a direct increase in surplus in the accompanying Statutory Statements of Changes in Surplus. For the year ended December 31, 2022, there were no changes in reserve basis for life insurance reserves.

The Company has established policy reserves on contracts issued January 1, 2001 and later that exceed the minimum amounts determined under Appendix A-820, “Minimum Life and Annuity Reserve Standards” of NAIC SAP by approximately $244 million and $56 million at December 31, 2023 and 2022, respectively.

At December 31, 2023 and 2022, the Company’s liabilities for GMDB reserves, which are associated with certain variable life products, amounted to $9 million and $11 million, respectively, and were recorded in Policy reserves in the accompanying Statutory Statements of Financial Position.

Surrender values are promised in excess of life reserves on certain policies. This excess is included as part of miscellaneous reserves. No surrender values are promised in excess of any other reserves. Additional reserves are held on account of anticipated extra mortality for policies subject to extra premiums.

At December 31, 2023 and 2022, the Company had $9,739 million and $10,325 million, respectively, of insurance in-force for which the gross premiums were less than the net premiums according to the standard of valuation set by the state of Delaware.

The tabular interest has been determined by formula as described in the NAIC instructions except for certain UL products for which tabular interest has been determined from the basic data for the calculation of policy reserves. The tabular less actual reserves released has been determined by formula as described in the NAIC instructions. The tabular cost has been determined by formula as described in the NAIC instructions.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 12—INSURANCE LIABILITIES (continued)

Annuity Reserves and Supplementary Contracts with Life Contingencies

Reserves for single premium immediate annuities and guaranteed future income annuities are based principally on A2000, 2012 IAR and the Commissioners’ Annuity Reserve Valuation Method (“CARVM”), with assumed interest rates ranging from 3.75% to 6.0%. Purchases in 2018 and later years are reserved with valuation interest rates satisfying both the valuation manual requirements for maximum valuation interest rates for income annuities (“VM-22”) and the New York State Department of Financial Services (“NYSDFS”) Regulation 213 maximum valuation rate requirements, applying the 2012 IAR Table. The VM-22 rates range from 1.0% to 5.00%.

Reserves for fixed deferred annuities are based principally on 1971 Individual Annuity Mortality, 1983 Table A, A2000, 2012 IAR and CARVM, with assumed interest rates ranging from 3.0% to 10.0%. Reserves for variable deferred annuities are based principally on VM-21 and NYSDFS Regulation 213, where the VM-21 deficiencies are discounted applying scenario specific net asset earned rates ranging from 3.0% to 8.25%. For the index-linked account corresponding to a VA product, we also apply Actuarial Guideline XXXV, with assumed interest rates ranging from 3.0% to 4.75%. Generally, owners of the Company’s deferred annuities are able, at their discretion, to withdraw funds from their policies. The withdrawals in excess of the surrender charge-free withdrawal amount may be subject to surrender charges in the early years.

At December 31, 2023 and 2022, the Company’s liabilities for GMDB, GMAB, guaranteed future income benefit, and enhanced beneficiary benefits reserves, which are associated with VA products, amounted to $38 million and $137 million, respectively, and were recorded in Policy reserves in the accompanying Statutory Statements of Financial Position.

For the year ended December 31, 2023 and 2022, there were no changes in reserve valuation basis for annuities reserves.

The tabular interest has been determined by a formula as described in the NAIC instructions. The tabular less actual reserve released has been determined by a formula as described in the NAIC instructions. The tabular cost has been determined by formula as described in the NAIC instructions.

Deposit Funds

Deposit funds at December 31, 2023 and 2022 were as follows (in millions):


	2023		2022
Fixed period annuities	$	1,271	$	1,077
Supplemental contracts without life contingencies		300		350
Continued interest accounts		12		14

Total deposit funds	$	1,583	$	1,441

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 12—INSURANCE LIABILITIES (continued)

Withdrawal Characteristics of Annuity Reserves and Deposit Funds

The following table reflects the withdrawal characteristics of annuity reserves and deposit fund liabilities at December 31, 2023 and 2022 ($ in millions):

Individual Annuities


	2023
	General Account		Separate Accounts with Guarantees		Separate Accounts Non- guaranteed		Total		% of Total
Subject to discretionary withdrawal:
With fair value adjustment	$	30,270	$	—	$	—	$	30,270		26	%
At book value less current surrender charge of 5% or more		12,128		—		—		12,128		10
At fair value		—		—		34,793		34,793		30

Total with adjustment or at fair value		42,399		—		34,793		77,191		66
At book value without adjustment		20,213		—		—		20,213		17
Not subject to discretionary withdrawal		20,350		—		—		20,350		17

Total	$	82,962	$	—	$	34,793	$	117,754		100	%

Amount with current surrender charge of 5% or more that will have less than a 5% surrender charge in the following year	$	78	$	—	$	—	$	78


	2022
	General Account		Separate Accounts with Guarantees		Separate Accounts Non- guaranteed		Total		% of Total
Subject to discretionary withdrawal:
With fair value adjustment	$	30,662	$	—	$	—	$	30,662		28	%
At book value less current surrender charge of 5% or more		8,173		—		—		8,173		7
At fair value		—		—		31,696		31,696		28

Total with adjustment or at fair value		38,835		—		31,696		70,531		63
At book value without adjustment		21,904		—		—		21,904		20
Not subject to discretionary withdrawal		18,798		—		—		18,798		17

Total	$	79,537	$	—	$	31,696	$	111,233		100	%

Amount with current surrender charge of 5% or more that will have less than a 5% surrender charge in the following year	$	303	$	—	$	—	$	303

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 12—INSURANCE LIABILITIES (continued)

Group Annuities


	2023
	General Account		Separate Accounts with Guarantees		Separate Accounts Non- guaranteed		Total		% of Total
Subject to discretionary withdrawal:
With fair value adjustment	$	24	$	—	$	—	$	24		5	%
At book value less current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		—		—

Total with adjustment or at fair value		24		—		—		24		5
At book value without adjustment		32		—		—		32		7
Not subject to discretionary withdrawal		388		—		—		388		88

Total	$	444	$	—	$	—	$	444		100	%

Amount with current surrender charge of 5% or more that will have less than a 5% surrender charge in the following year	$	—	$	—	$	—	$	—


	2022
	General Account		Separate Accounts with Guarantees		Separate Accounts Non- guaranteed		Total		% of Total
Subject to discretionary withdrawal:
With fair value adjustment	$	31	$	—	$	—	$	31		6	%
At book value less current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		—		—

Total with adjustment or at fair value		31		—		—		31		6
At book value without adjustment		37		—		—		37		7
Not subject to discretionary withdrawal		428		—		—		428		87

Total	$	496	$	—	$	—	$	496		100	%

Amount with current surrender charge of 5% or more that will have less than a 5% surrender charge in the following year	$	—	$	—	$	—	$	—

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 12—INSURANCE LIABILITIES (continued)

Deposit-Type Contracts


	2023
	General Account		Separate Accounts with Guarantees		Separate Accounts Non- guaranteed		Total		% of Total
Subject to discretionary withdrawal:
With fair value adjustment	$	—	$	—	$	—	$	—		—	%
At book value less current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		—		—

Total with adjustment or at fair value		—		—		—		—		—
At book value without adjustment		162		—		—		162		10
Not subject to discretionary withdrawal		1,421		—		—		1,421		90

Total	$	1,583	$	—	$	—	$	1,583		100	%

Amount with current surrender charge of 5% or more that will have less than a 5% surrender charge in the following year	$	—	$	—	$	—	$	—


	2022
	General Account		Separate Accounts with Guarantees		Separate Accounts Non- guaranteed		Total		% of Total
Subject to discretionary withdrawal:
With fair value adjustment	$	—	$	—	$	—	$	—		—	%
At book value less current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		—		—

Total with adjustment or at fair value		—		—		—		—		—
At book value without adjustment		188		—		—		188		13
Not subject to discretionary withdrawal		1,253		—		—		1,253		87

Total	$	1,441	$	—	$	—	$	1,441		100	%

Amount with current surrender charge of 5% or more that will have less than a 5% surrender charge in the following year	$	—	$	—	$	—	$	—

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 12—INSURANCE LIABILITIES (continued)

Withdrawal Characteristics of Life Insurance Reserves

The following tables reflect the withdrawal characteristics of life insurance reserves at December 31, 2023 and 2022 ($ in millions):


	2023
	General Account						Separate Accounts Guaranteed and Non-guaranteed
	Account Value		Cash Value		Reserve		Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender, or policy loans:
Term policies with cash value	$	—	$	—	$	—	$	—	$	—	$	—
Universal life		18,768		19,111		19,299		6,312		6,312		6,312
Universal life with secondary guarantees		5,892		5,397		8,527		—		—		—
Indexed universal life		—		—		—		—		—		—
Indexed universal life with secondary guarantees		—		—		—		—		—		—
Indexed life		—		—		—		—		—		—
Other permanent cash value life insurance		—		—		—		—		—		—
Variable life		11		11		16		58		58		58
Variable universal life		1,748		1,744		1,744		13,233		13,030		13,066
Miscellaneous reserves		—		—		—		—		—		—
Not subject to discretionary withdrawal or no cash values:
Term policies without cash value		—		—		—		—		—		—
Accidental death benefits		—		—		—		—		—		—
Disability - active lives		—		—		2		—		—		—
Disability - disabled lives		—		—		75		—		—		—
Miscellaneous reserves		—		—		612		—		—		—

Total life insurance (gross)		26,419		26,263		30,275		19,603		19,400		19,436
Reinsurance ceded		—		—		728		—		—		—

Total life insurance (net)	$	26,419	$	26,263	$	29,547	$	19,603	$	19,400	$	19,436

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 12—INSURANCE LIABILITIES (continued)


	2022
	General Account						Separate Accounts Guaranteed and Non-guaranteed
	Account Value		Cash Value		Reserve		Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender, or policy loans:
Term policies with cash value	$	—	$	—	$	—	$	—	$	—	$	—
Universal life		19,090		19,424		19,277		6,396		6,396		6,396
Universal life with secondary guarantees		5,727		5,155		8,759		—		—		—
Indexed universal life		—		—		—		—		—		—
Indexed universal life with secondary guarantees		—		—		—		—		—		—
Indexed life		—		—		—		—		—		—
Other permanent cash value life insurance		—		—		—		—		—		—
Variable life		11		11		17		50		50		50
Variable universal life		1,757		1,752		1,501		10,653		10,469		10,498
Miscellaneous reserves		—		—		—		—		—		—
Not subject to discretionary withdrawal or no cash values:
Term policies without cash value		—		—		—		—		—		—
Accidental death benefits		—		—		—		—		—		—
Disability - active lives		—		—		2		—		—		—
Disability - disabled lives		—		—		75		—		—		—
Miscellaneous reserves		—		—		608		—		—		—

Total life insurance (gross)		26,585		26,342		30,239		17,099		16,915		16,944
Reinsurance ceded		—		—		716		—		—		—

Total life insurance (net)	$	26,585	$	26,342	$	29,523	$	17,099	$	16,915	$	16,944

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 13—REINSURANCE

The effects of reinsurance on the accompanying Statutory Statements of Financial Position at December 31, 2023 and 2022 were as follows (in millions):


	2023			2022
Policy reserves:
Direct	$	113,718		$	110,411
Assumed		—			—
Ceded		(728	)		(716	)

Policy reserves	$	112,990		$	109,695

Policy claims:
Direct	$	552		$	523
Assumed		673			658
Ceded⁽¹⁾		(184	)		(132	)

Policy claims	$	1,041		$	1,049

Reinsurance recoverable⁽²⁾	$	39		$	45

⁽¹⁾ Includes reinsurance recoverable related to unpaid losses of $145 million and $91 million at December 31, 2023 and 2022, respectively.

⁽²⁾ Included in Other assets in the accompanying Statutory Statements of Financial Position.

The effects of reinsurance on the accompanying Statutory Statements of Operations for the years ended December 31, 2023, 2022 and 2021 were as follows (in millions):


	2023			2022			2021
Premiums:
Direct⁽¹⁾	$	16,089		$	20,379		$	13,461
Assumed		1,208			1,185			1,090
Ceded		(554	)		(531	)		(539	)

Premiums	$	16,743		$	21,033		$	14,012

Benefit payments:
Direct	$	17,464		$	14,387		$	14,265
Assumed		1,266			1,344			1,388
Ceded		(652	)		(606	)		(739	)

Benefit payments	$	18,078		$	15,125		$	14,914

⁽¹⁾ Includes considerations for supplementary contracts with life contingencies of $47 million, $42 million and $48 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Reinsurance Assumed

The Company has an affiliated reinsurance agreement to reinsure mortality risk arising under LINA’s group term life insurance business on a yearly renewable term basis. This transfer of life insurance mortality risk allows the Company to diversify its overall risk profile, as the Company’s risk profile was previously weighted more heavily toward interest rate and asset risk. Entry into the yearly renewable term treaty also reduces LINA’s exposure to mortality risk. At December 31, 2023 and 2022, the Company held assumed liabilities for policy claims relating to this reinsurance agreement of $667 million and $653 million, respectively, which are included in Policy claims in the accompanying Statutory Statements of Financial Position.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 13—REINSURANCE (continued)

Reinsurance Ceded

The Company enters into reinsurance agreements in the normal course of its insurance business to reduce overall risk and to be able to issue individual life insurance policies in excess of its retention limits. Currently, the Company primarily reinsures the mortality risk on new life insurance policies on a quota share yearly renewable term basis, except for custom guarantee UL, asset flex, and certain VUL products. Most of the reinsurance ceded on new and inforce business is established on an automatic basis. The quota share currently ceded on new business generally ranges from 15% to 90%. All products are ceded from first dollar with the exception of reinsured VUL, which has a minimum size policy ceded of $1 million. Cases in excess of the Company’s retention and certain substandard cases are ceded on a facultative reinsurance basis. The majority of the Company’s facultative reinsurance is for substandard cases in which it typically cedes 90%.

The ceding of risk does not discharge the Company from its primary obligations to policyholders. To the extent that the assuming reinsurers become unable to meet their obligations under reinsurance contracts, the Company remains contingently liable. Each reinsurer is reviewed to evaluate its financial stability before entering into each reinsurance contract and throughout the period that the reinsurance contract is in place.

Life insurance ceded was 43% and 42% of total life insurance in-force at December 31, 2023 and 2022.

The Company has reinsurance agreements with New York Life Agents Reinsurance Company (“NYLARC”). NYLARC is a life insurance company wholly owned by NYLARC Holding Company, Inc., whose shareholders consist of New York Life’s top agents who meet certain criteria and who may also be agents of the Company or NYLIFE Insurance Company of Arizona (“NYLAZ”). NYLARC reinsures a portion of certain life insurance products sold by its shareholders. NYLARC’s purpose is to retain high production agents, and increase the volume and quality of the business that they submit to New York Life, NYLAZ and the Company.

NOTE 14—BENEFIT PLANS

The Company shares in the cost of the following plans sponsored by New York Life: (1) certain defined benefit pension plans for eligible employees and agents, (2) certain defined contribution plans for substantially all employees and agents, (3) certain postretirement life and health benefits for retired employees and agents including their eligible dependents, and (4) postemployment benefits. The expense for these plans is allocated to the Company in accordance with an intercompany cost sharing agreement. The liabilities for these plans are included with the liabilities for the corresponding plan of New York Life. The cost allocated to the Company related to benefit plans is recorded under Operating expenses in the accompanying Statutory Statements of Operations. The Company’s share of the cost of these plans was as follows for the years ended December 31, 2023, 2022 and 2021 (in millions):


	2023		2022		2021
Defined benefit pension	$	25	$	31	$	32
Defined contribution		10		10		10
Postretirement life and health		4		5		6
Postemployment		2		2		2

Total	$	41	$	48	$	50

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 15—COMMITMENTS AND CONTINGENCIES

Guarantees

As stated in Note 3 - Significant Accounting Policies, at the inception of a guarantee (except unlimited guarantees), the Company recognizes an initial liability at fair value for the obligations it has undertaken, regardless of the probability of performance under the guarantee. This includes guarantees made on behalf of affiliates unless the guarantee is deemed unlimited. At December 31, 2023 and 2022, the Company had no such guarantees.

Litigation

The Company is a defendant in individual and/or alleged class action suits arising from their agency sales force, insurance (including variable contracts registered under the federal securities law), investment, retail securities, employment and/or other operations, including actions involving retail sales practices. Some of the actions seek substantial or unspecified compensatory and punitive damages. The Company is also from time to time involved in various governmental, administrative, and investigative proceedings and inquiries.

Notwithstanding the uncertain nature of litigation and regulatory inquiries, the outcome of which cannot be predicted, the Company believes that, after provisions made in the financial statements, the ultimate liability that could result from litigation and proceedings would not have a material adverse effect on the Company’s financial position; however, it is possible that settlements or adverse determinations in one or more actions or other proceedings in the future could have a material adverse effect on the Company’s operating results for a given year.

Borrowed Money

Refer to Note 6 - Investments for a more detailed discussion of the Company’s commitments for loaned securities and repurchase agreements.

Assessments

Most of the jurisdictions in which the Company is licensed to transact business require life insurers to participate in guaranty associations which are organized to pay contractual benefits pursuant to insurance policies issued by impaired, insolvent or failed life insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the line of business in which the impaired, insolvent or failed life insurer is engaged. Some states permit member insurers to recover assessments through full or partial premium tax offsets.

Other Commitments and Contingencies

Prior to July 1, 2002, the Company did business in Taiwan through a branch operation (the “Taiwan Branch”). On July 1, 2002, the Taiwan Branch ceased operations and all of its liabilities and assets, including policy liabilities were transferred to New York Life Insurance Taiwan Corporation (“Taiwan Corporation”), an indirect subsidiary of New York Life. On December 31, 2013, Taiwan Corporation was sold to Yuanta Financial Holding Co. Ltd. (“Yuanta”). Under the terms of the sale agreement, Yuanta has agreed to satisfy in full, or to cause Taiwan Corporation to satisfy in full, all of Taiwan Corporation’s obligations under the Taiwan Branch policies that were transferred to Taiwan Corporation on July 1, 2002. However, the Company, under Taiwan law, also remains contingently liable for these policies in the event that neither Taiwan Corporation nor Yuanta meets its obligations. This contingent liability of the Company has not been recognized on the accompanying Statutory Statements of Financial Position because it does not meet the probable and estimable criteria of SSAP No. 5R.

At December 31, 2023 and 2022, the Company and its guaranteed separate accounts had contractual commitments to extend credit for commercial mortgage loans at both fixed and variable rates of interest, which amounted to approximately $1,100 million and $725 million, respectively. These commitments are diversified by property type and geographic location. There were no contractual commitments to extend credit under residential loan agreements at December 31, 2023 and 2022.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 15—COMMITMENTS AND CONTINGENCIES (continued)

At December 31, 2023 and 2022, the Company and its guaranteed separate accounts had outstanding contractual obligations to acquire additional private placement securities amounting to $1,109 million and $717 million, respectively.

Unfunded commitments on limited partnerships, limited liability companies and other invested assets amounted to $904 million and $960 million at December 31, 2023 and 2022, respectively. Unfunded commitments on LIHTC amounted to $163 million and $153 million at December 31, 2023 and 2022, respectively. At December 31, 2023 and 2022, unfunded commitments on LIHTC are included in Other invested assets, with an offset in Other liabilities in the accompanying Statutory Statements of Financial Position.

Several commercial banks have customary security interests in certain assets of the Company to secure potential overdrafts and other liabilities of the Company that may arise under custody, securities lending and other banking agreements with such banks.

FHLB Agreement

The Company is a member of the FHLB of Pittsburgh. Membership in the FHLB of Pittsburgh provides the Company with a significant source of alternative liquidity. Advances received by the general account are included in Other liabilities in the accompanying Statutory Statements of Financial Position. When borrowing from the FHLB of Pittsburgh, the Company is required to post collateral in the form of eligible securities, including mortgage-backed, government and agency debt instruments for each of the advances received. Upon any event of default by the Company, the FHLB of Pittsburgh’s recovery from the collateral is limited to the amount of the Company’s liability to the FHLB of Pittsburgh.

The amount of FHLB of Pittsburgh common stock held, in aggregate exclusively in the Company’s general account at December 31, 2023 and 2022 was as follows (in millions):


	2023		2022
Membership stock - Class B⁽¹⁾	$	25	$	25
Activity stock		—		—

Aggregate total	$	25	$	25

Actual or estimated borrowing capacity as determined by the insurer	$	6,945	$	6,759

⁽¹⁾ Membership stock is not eligible for redemption.

At December 31, 2023 and 2022, the Company did not have an outstanding balance due to the FHLB of Pittsburgh. The maximum amount borrowed and collateral pledged to the FHLB of Pittsburgh during the years ended December 31, 2023 and 2022 was as follows (in millions):


	2023				2022
	General Account		Separate Account		General Account		Separate Account
Fair Value	$	3,018	$	—	$	1,175	$	—
Carrying Value	$	3,018	$	—	$	1,175	$	—
Maximum Amount Borrowed During the Year	$	5	$	—	$	—	$	—

The Company does not have any prepayment obligations for the borrowing arrangement.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 16—INCOME TAXES

The components of the net DTAs and DTLs were as follows at December 31, 2023 and 2022 (in millions):


	2023							2022							Change
	Ordinary		Capital			Total		Ordinary		Capital			Total		Ordinary			Capital			Total
Gross DTAs	$	1,725	$	356		$	2,081	$	1,433	$	475		$	1,908	$	292		$	(119	)	$	173
Statutory valuation allowance		—		—			—		—		—			—		—			—			—

Adjusted gross DTAs		1,725		356			2,081		1,433		475			1,908		292			(119	)		173
Nonadmitted DTAs ⁽¹⁾		712		—			712		545		—			545		167			—			167

Subtotal net admitted DTAs		1,013		356			1,369		888		475			1,363		125			(119	)		6
Gross DTLs		255		493			748		262		552			814		(7	)		(59	)		(66	)

Net admitted DTAs ⁽²⁾	$	758	$	(137	)	$	621	$	626	$	(77	)	$	549	$	132		$	(60	)	$	72

⁽¹⁾ DTAs are nonadmitted primarily because they are not expected to be realized within three years of the Statutory Statements of Financial Position date.

⁽²⁾ The total net admitted DTAs are included in Other assets in the accompanying Statutory Statements of Financial Position.

The admission calculation components were as follows (paragraph references throughout Note 16 are to paragraphs of SSAP No. 101 “Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10”) (in millions):


	December 31, 2023						December 31, 2022						Change
	Ordinary		Capital		Total		Ordinary		Capital		Total		Ordinary		Capital			Total
Federal income taxes paid in prior years recoverable through loss carrybacks (Paragraph 11.a)	$	—	$	22	$	22	$	—	$	54	$	54	$	—	$	(32	)	$	(32	)
Adjusted gross DTAs expected to be realized (excluding the amount of DTAs from paragraph 11.a above) after application of the threshold limitation (the lesser of paragraph 11.b.i and 11.b.ii below):		597		2		599		495		—		495		102		2			104
Adjusted gross DTAs expected to be realized following the balance sheet date. (Paragraph 11.b.i)		597		2		599		495		—		495		102		2			104
Adjusted gross DTAs allowed per limitation threshold (Paragraph 11.b.ii)		N/A		N/A		1,246		N/A		N/A		1,198		N/A		N/A			48
Adjusted gross DTAs (excluding the amount of DTAs from paragraphs 11.a and 11.b above) offset by gross DTLs (Paragraph 11.c)		416		332		748		393		421		814		23		(89	)		(66	)

DTAs admitted as the result of application of SSAP 101 (Total of paragraphs 11.a, 11.b, 11.c).	$	1,013	$	356	$	1,369	$	888	$	475	$	1,363	$	125	$	(119	)	$	6

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 16—INCOME TAXES (continued)

The ratio used to determine the applicable period used in paragraph 11.b.i above and the amount of adjusted capital and surplus used to determine the percentage threshold limitation in paragraph 11.b.ii above are as follows at December 31, 2023 and 2022 (in millions):


	2023			2022
Ratio percentage used to determine recovery period and threshold limitation amount.		877	%		812	%
Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in paragraph 11.b.ii above.	$	8,308		$	7,987

There was no impact on the Company’s adjusted gross and net admitted DTAs due to tax planning strategies at December 31, 2023 and 2022.

The Company did not use reinsurance in its tax planning strategies. The Company had no unrecognized DTLs at December 31, 2023 and 2022. Additionally, the Company had no adjustments to gross DTAs because of a change in circumstances that causes a change in judgment about the realizability of the related DTAs.

Significant components of the current federal and foreign income taxes for the years ended December 31, 2023, 2022 and 2021 were as follows (in millions):


	2023			2022		2021		Change 2023-2022			Change 2022-2021
Federal⁽¹⁾	$	247		$	114	$	187	$	133		$	(73	)
Foreign		21			—		—		21			—

Subtotal		268			114		187		154			(73	)

Federal income tax on net capital gains (losses)		(41	)		16		47		(57	)		(31	)
Other		—			—		—		—			—

Total federal and foreign income taxes	$	227		$	130	$	234	$	97		$	(104	)

⁽¹⁾ The Company had investment tax credits of $33 million, $28 million and $27 million for the years ended December 31, 2023, 2022 and 2021, respectively.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 16—INCOME TAXES (continued)

The tax effects of temporary differences that give rise to DTAs and DTLs for the years ended December 31, 2023 and 2022 were as follows (in millions):


	2023		2022		Change
DTAs
Ordinary:
Policyholder reserves	$	1,026	$	859	$	167
Deferred acquisition costs		411		376		35
Investments		234		151		83
Pension accrual		20		21		(1	)
Receivables - nonadmitted		17		21		(4	)
Fixed assets		2		2		—
Other		15		3		12

Subtotal		1,725		1,433		292
Nonadmitted		712		545		167

Admitted ordinary DTAs		1,013		888		125

Capital:
Investments		356		475		(119	)

Subtotal		356		475		(119	)
Nonadmitted		—		—		—

Admitted capital DTAs		356		475		(119	)

Total admitted DTAs		1,369		1,363		6

DTLs
Ordinary:
Policyholder reserves		80		124		(44	)
Investments		166		138		28
Other		9		—		9

Subtotal		255		262		(7	)

Capital:
Investments		493		552		(59	)

Subtotal		493		552		(59	)

Total DTLs		748		814		(66	)

Net admitted DTAs	$	621	$	549	$	72

Change in deferred income tax on change in net unrealized capital gains/ losses					$	50
Change in net deferred taxes related to other items						189
Change in DTAs nonadmitted						(167	)

Change in net admitted DTAs					$	72

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 16—INCOME TAXES (continued)

The Company’s income tax expense and change in net DTAs for the years ended December 31, 2023, 2022 and 2021 differs from the amount obtained by applying the statutory rate of 21% to net gain from operations after dividends to policyholders and before federal income taxes for the following reasons (in millions):


	2023			2022			2021			Change 2023-2022			Change 2022-2021
Net gain from operations after dividends to policyholders and before federal and foreign income taxes at statutory rate	$	141		$	(106	)	$	141		$	247		$	(247	)
Net realized capital (losses)/gains at statutory rate		(24	)		(15	)		(38	)		(9	)		23
Tax exempt income		(33	)		(35	)		(39	)		2			4
Tax credits, net of withholding		(41	)		(40	)		(37	)		(1	)		(3	)
Amortization of IMR		(1	)		(6	)		(10	)		5			4
Dividend from MCF		(72	)		(37	)		(29	)		(35	)		(8	)
Partnership income from MCF		57			54			46			3			8
Prior year audit liability and settlement		4			1			(1	)		3			2
Non-admitted assets		4			(6	)		—			10			(6	)
Other items impacting surplus		4			4			96			—			(92	)
Other		(1	)		5			(1	)		(6	)		6

Federal and foreign income taxes incurred and change in net deferred taxes during the year	$	38		$	(181	)	$	128		$	219		$	(309	)

Federal and foreign income tax expense reported in the Company’s Statutory Statements of Operations	$	268		$	114		$	187		$	154		$	(73	)
Capital gains tax (benefit)/expense incurred		(41	)		16			47			(57	)		(31	)
Change in net DTAs		(189	)		(311	)		(106	)		122			(205	)
Change in current and deferred income taxes reported in surplus		—			—			—			—			—

Federal and foreign income taxes incurred and change in net deferred taxes during the year	$	38		$	(181	)	$	128		$	219		$	(309	)

For years ended December 31, 2023, 2022 and 2021, the Company’s federal income tax return is consolidated with New York Life, NYLAZ, NYLIFE LLC, New York Life Enterprises LLC, NYL Investments, NYL Investors, LLC, LINA, New York Life Group Insurance Company of NY (“NYLGICNY”), and LINA Benefit Payments, Inc. Refer to Note 3 – Significant Accounting Policies - Federal Income Taxes.

As a member of NYLIC’s consolidated group, the Company’s federal income tax returns are routinely audited by the Internal Revenue Service (“IRS”) and provisions are made in the financial statements in anticipation of the results of these audits. The IRS has completed audits through 2013, and tax years 2014 through 2018 are currently under examination. There were no material effects in the Company’s Statement of Operations as a result of these audits.

The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 16—INCOME TAXES (continued)

The Company did not have any operating loss and tax credit carry forwards available for tax purposes. For the years ended December 2023, 2022, and 2021, the Company’s income taxes incurred in current and prior years that will be available for recoupment in the event of future net losses were as follows (in millions):


Year 2023	$	—
Year 2022	$	21
Year 2021	$	120

The Inflation Reduction Act (“IRA”) of 2022 was enacted on August 16, 2022. The IRA includes a new Federal corporate alternative minimum tax (“CAMT”), effective in 2023, that is based on the adjusted financial statement income set forth on the applicable financial statement of an applicable corporation. The NAIC adopted Interpretation (“INT”) 23-04 to apply to December 31, 2023. Following that guidance, the Company has determined as of the reporting date it will not be an applicable corporation and will not be liable for CAMT in 2023. The Company is also not a member of a controlled group of corporations that is an applicable corporation.

At December 31, 2023 and 2022, the Company recorded a current income tax payable of $23 million and $31 million, respectively, which is included in Other liabilities in the accompanying Statutory Statements of Financial Position.

At December 31, 2023, the Company had no protective tax deposits on deposit with the IRS under Section 6603 of the Internal Revenue Code.

NOTE 17—CAPITAL AND SURPLUS

Capitalization

The Company has 20,000 shares authorized, with a par value of $10,000 per share with 2,500 shares issued and outstanding. All shares are common stock and are owned by New York Life. The Company has no preferred stock.

The Company did not receive a capital contribution from New York Life for the years ended December 31, 2023 and 2022. For the year ended December 31, 2021, the Company received a capital contribution in the form of an affiliated equity investment in MCF from New York Life for $530 million.

Other Surplus Adjustments

Other adjustments, net in the accompanying Statutory Statements of Changes in Surplus at December 31, 2023, 2022 and 2021, principally include the effects of the following (in millions):


	2023			2022			2021
Surplus withdrawn from separate accounts	$	58		$	48		$	55
Changes in surplus relating to separate accounts		(74	)		(29	)		(44	)
Change in liability for reinsurance in unauthorized companies		2			(2	)		(2	)

Total	$	(14	)	$	17		$	9

Nonadmitted Assets

Under statutory accounting rules, a nonadmitted asset is defined as an asset having economic value other than that which can be used to fulfill policyholder obligations, or those assets that are unavailable due to encumbrances or other third-party interests. These assets are not recognized in the accompanying Statutory Statements of Financial Position, and are, therefore, considered nonadmitted. The changes between years in nonadmitted assets are charged or credited directly to surplus.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 18—DIVIDENDS TO STOCKHOLDER

The Company is subject to restrictions on the payment of dividends to New York Life. Under the Delaware Insurance Code, cash dividends can be paid only out of that part of the Company’s available and accumulated surplus funds which are derived from realized net operating profits on its business and realized capital gains, and dividends (or other distributions) on capital stock can be declared and paid only out of earned surplus (being an amount equal to the unassigned funds of the Company as set forth in its most recent annual statement submitted to the Delaware Insurance Commissioner (“the Commissioner”), including all or part of the surplus arising from unrealized capital gains or revaluation of assets), except as otherwise approved by the Commissioner (provided that stock dividends may be paid out of any available surplus funds). Furthermore, no extraordinary dividend may be paid until 30 days after the Commissioner has received notice of such declaration and has not disapproved such payment within such 30 day period, or the Commissioner has approved such payment within that 30 day period. Extraordinary dividends are defined as any dividend or distribution or cash or other property, whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceeds the greater of (1) 10 percent of the Company’s surplus as regards policyholders as of the preceding December 31 or (2) the net gain from operations, not including realized capital gains, not to exceed thirty percent of its surplus to policyholders as of the immediately preceding calendar year, of the Company for the 12 month period ending on the preceding December 31 (not including pro rata distributions of any class of the Company’s own securities).

At December 31, 2023, the amount of earned surplus of the Company available for the payment of dividends was $4,119 million. The maximum amount of dividends that may be paid in 2024 without prior notice to or approval of the Commissioner is $890 million.

Dividends may be declared by the Board of Directors of the Company from available surplus, as it deems appropriate, on a non-cumulative basis. At December 31, 2023, the Company paid no dividends to its sole stockholder, New York Life, and paid dividends of $400 million and $942 million in 2022 and 2021, respectively.

The Company’s special surplus funds increased from December 31, 2022 to December 31, 2023 by $328 million due to the admittance of negative IMR. For more details, refer to Note 6 - Investments for Admitted Negative IMR.

NOTE 19—WRITTEN PREMIUMS

Deferred and uncollected life insurance premiums and annuity considerations at December 31, 2023 and 2022 were as follows (in millions):


	2023				2022
	Gross		Net of Loading		Gross		Net of Loading
Group life⁽¹⁾	$	441	$	441	$	418	$	418

⁽¹⁾ Represents reinsurance premiums assumed from LINA. Refer to Note 13 - Reinsurance for more details.

Deferred premium is the portion of the annual premium not earned at the reporting date. Loading of 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 at the reporting date. Net premium is the amount used in the calculation of reserves. The change in loading is included as an expense and is not shown as a reduction to premium income.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 20—LOAN-BACKED AND STRUCTURED SECURITY IMPAIRMENTS

The Company does not have any loan-backed and structured securities, which are other-than-temporarily impaired where the Company intends to sell, or does not have the intent and ability to hold until recovery, at December 31, 2023.

The following table lists each loan-backed and structured security at a CUSIP level where the present value of cash flows expected to be collected is less than the amortized cost basis during the year (in thousands):


IMPAIRMENTS TAKEN ON CURRENT HOLDINGS DURING THE CURRENT YEAR
(1)	(2)	(3)	(4)	(5)	(6)	(7)
CUSIP^(1,2)	Amortized Cost Before Current Period OTTI	Projected Cash Flows	Current Period Recognized OTTI	Amortized Cost After OTTI	Fair Value	Financial Statement Reporting Period
General Account
001406AA5	$5,236	$4,522	$713	$4,522	$4,383	12/31/2023
07389NAC9	280	273	7	273	278	12/31/2023
12544ABN4	247	245	2	245	252	12/31/2023
12544TAH7	500	491	9	491	500	12/31/2023
12544VAB5	15	14	1	14	15	12/31/2023
12667FJ55	685	679	6	679	530	12/31/2023
12668AY25	431	431	—	431	440	12/31/2023
12668BFL2	138	129	9	129	131	12/31/2023
15132EFL7	30	25	5	25	27	12/31/2023
16162WNB1	484	459	25	459	470	12/31/2023
17029PAA3	656	636	20	636	636	12/31/2023
3622MPAB4	180	171	9	171	176	12/31/2023
3623416X2	124	90	34	90	116	12/31/2023
36242DD26	190	160	30	160	164	12/31/2023
69337VAE0	1,053	1,049	4	1,049	839	12/31/2023
76111XZW6	949	941	7	941	967	12/31/2023
81744HAF0	190	189	1	189	191	12/31/2023
93934FCE0	484	472	12	472	428	12/31/2023
93934FEM0	481	480	1	480	436	12/31/2023
93934FLW0	513	511	2	511	478	12/31/2023
001406AA5	6,409	5,634	775	5,634	4,506	9/30/2023
15132EFL7	30	30	—	30	29	9/30/2023
16162WNB1	629	518	110	518	496	9/30/2023
32052MAA9	6	—	6	—	—	9/30/2023
3622MPAB4	183	183	—	183	172	9/30/2023
3623416X2	133	133	1	133	119	9/30/2023
38237KAA8	8,845	8,845	—	8,845	7,701	9/30/2023
45660LEW5	488	248	240	248	454	9/30/2023
93934FEM0	500	500	1	500	436	9/30/2023
93934FLW0	553	552	2	552	499	9/30/2023
001406AA5	7,722	7,046	677	7,046	4,638	6/30/2023
12667FJ55	728	709	19	709	571	6/30/2023
17029PAA3	703	656	47	656	695	6/30/2023
17029RAA9	18	—	17	—	16	6/30/2023
17309BAD9	1,355	907	448	907	1,057	6/30/2023

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

NOTE 20—LOAN-BACKED AND STRUCTURED SECURITY IMPAIRMENTS (continued)


IMPAIRMENTS TAKEN ON CURRENT HOLDINGS DURING THE CURRENT YEAR
(1)	(2)	(3)	(4)	(5)	(6)	(7)
CUSIP^(1,2)	Amortized Cost Before Current Period OTTI	Projected Cash Flows	Current Period Recognized OTTI	Amortized Cost After OTTI	Fair Value	Financial Statement Reporting Period
46628BBD1	124	113	10	113	102	6/30/2023
69336QAL6	413	411	1	411	396	6/30/2023
93934FEM0	519	518	1	518	463	6/30/2023
93934FLW0	564	559	5	559	517	6/30/2023
3623416X2	139	138	1	138	140	3/31/2023
38237KAA8	11,217	11,205	13	11,205	10,191	3/31/2023
61946TAA3	3,297	3,288	9	3,288	2,771	3/31/2023
69336QAL6	416	415	1	415	400	3/31/2023
93934FEM0	524	522	2	522	501	3/31/2023
93934FLW0	615	572	42	572	534	3/31/2023

Subtotal - General Account	XXX	XXX	$3,327	XXX	XXX

Guaranteed Separate Accounts
001406AA5	$1,626	$1,404	$222	$1,404	$1,361	12/31/2023
07389NAC9	7	7	—	7	7	12/31/2023
12544VAB5	6	6	—	6	6	12/31/2023
12668BFL2	184	172	12	172	175	12/31/2023
001406AA5	1,990	1,749	241	1,749	1,399	9/30/2023
001406AA5	2,398	2,188	210	2,188	1,440	6/30/2023
38237KAA8	556	556	1	556	505	3/31/2023
61946TAA3	384	383	1	383	323	3/31/2023

Subtotal - Guaranteed Separate Accounts	XXX	XXX	$ 687	XXX	XXX
Grand Total	XXX	XXX	$4,014	XXX	XXX

⁽¹⁾ Only the impaired lots within each CUSIP are included within this table.

⁽²⁾ CUSIP amounts less than $1 thousand within this table are shown as zero.

NOTE 21—SUBSEQUENT EVENTS

At February 28, 2024, the date the financial statements were available to be issued, there have been no events occurring subsequent to the close of the Company’s books or accounts for the accompanying statutory financial statements that would have a material effect on the financial condition of the Company.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS

GLOSSARY OF TERMS


Term		Description
ABS		Asset-backed securities
AG 43		Actuarial Guideline 43 CARVM for variable annuities
AVR		Asset valuation reserve
CARES Act		Coronavirus Aid, Relief, and Economic Security Act
CAMT		Corporate Alternative Minimum Tax
CARVM		Commissioners’ Annuity Reserve Valuation Method
COLI		Corporate owned life insurance
CRVM		Commissioners’ Reserve Valuation Method
CSAs		Credit support annexes
DTA(s)		Deferred tax asset(s)
DTL(s)		Deferred tax liability(ies)
ETFs		Exchange traded funds
FHLB		Federal Home Loan Bank
GMAB		Guaranteed minimum accumulation benefit
GMDB		Guaranteed minimum death benefit
IMR		Interest maintenance reserve
IRA		The Inflation Reduction Act of 2022
IRS		Internal Revenue Service
LIHTC		Low-income housing tax credit
LINA		Life Insurance Company of North America
LTV		Loan to value ratio
MCF		Madison Capital Funding LLC
MCF Note Agreement		New York Life note funding agreement with MCF
NAIC		National Association of Insurance Commissioners
NAIC SAP		National Association of Insurance Commissioners’ Accounting Practices and Procedures
NAV		Net asset value
New York Life		New York Life Insurance Company
NYLARC		New York Life Agents Reinsurance Company
NYLAZ		NYLIFE Insurance Company of Arizona
NYLCC		New York Life Capital Corporation
NYLGICNY		New York Life Group Insurance Company of NY
NYLIM		New York Life Investment Management LLC
NYL Investments		New York Life Investment Management Holdings LLC
NYSDFS		New York State Department of Financial Services
OTC		Over-the-counter
OTC-bilateral		Over-the-counter bilateral agreements
OTC-cleared		Over-the-counter clearinghouse
OTTI		Other-than-temporary impairment(s)
PBR		Principle-based reserving
SSAP		Statement of statutory accounting principle
SVO		Securities Valuation Office

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

NOTES TO STATUTORY FINANCIAL STATEMENTS


Term		Description
Taiwan Branch		NYLIAC’s former branch operations in Taiwan
Taiwan Corporation		New York Life Insurance Taiwan Corporation
TDR		Troubled debt restructuring
The Commissioner		Delaware Insurance Commissioner
The Company		New York Life Insurance and Annuity Corporation
The Department		Delaware State Insurance Department
The Fund		The MainStay VP Funds Trust
U.S. GAAP		Accounting principles generally accepted in the United States of America
UL		Universal life
VA		Variable annuity
VM-20		Valuation manual requirements for PBR for individual life products
VM-21		Valuation manual requirements for PBR for variable annuity products
VM-22		Valuation manual requirements for maximum valuation interest rates for income annuities
VUL		Variable universal life
Yuanta		Yuanta Financials Holding Co., Ltd.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 1—SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA

At and for the Year Ended December 31, 2023

The following is a summary of certain financial information included in exhibits and schedules in the Annual Statement filed with the Delaware Insurance Department subjected to audit procedures by independent auditors and utilized by actuaries in the determination of reserves.


Investment Income Earned:
U.S. government bonds	$	163,438,981
Other bonds (unaffiliated)		3,716,493,278
Bonds of affiliates		211,433,316
Preferred stocks (unaffiliated)		1,770,431
Preferred stocks of affiliates		—
Common stocks (unaffiliated)		31,482,807
Common stocks of affiliates		—
Mortgage loans		756,667,188
Real estate		17,251,373
Premium notes, policy loans and liens		52,769,039
Cash on hand and on deposit		10,449,940
Short-term investments		156,284,647
Derivative instruments		(29,735,277	)
Other invested assets		382,452,247
Aggregate write-ins for investment income		8,366,616

Gross investment income	$	5,479,124,586

Real Estate Owned - Book Value less Encumbrances	$	91,166,137

Mortgage Loans - Book Value:
Residential mortgages	$	4,075,801
Commercial mortgages		15,186,978,388
Mezzanine real estate loans		292,876,613

Total mortgage loans	$	15,483,930,802

Mortgage Loans by Standing - Book Value:
Good standing	$	15,374,430,802

Good standing with restructured terms	$	—

Interest overdue more than 90 days, not in foreclosure	$	—

Foreclosures in process	$	109,500,000

Other Invested Assets - Statement Value	$	3,338,621,735

Collateral Loans	$	—

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 1—SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA (continued)


Bonds and Stocks of Parent, Subsidiaries and Affiliates - Book Value:
Bonds	$	3,120,177,818

Preferred stocks	$	—

Common stocks	$	—

Bonds and Short-Term Investments by Maturity and NAIC Designation:
Bonds by maturity - statement value:
Due within one year or less	$	9,288,152,168
Over one year through five years		40,964,712,901
Over five years through 10 years		25,624,957,942
Over 10 years through 20 years		11,246,900,203
Over 20 years		16,657,862,973

Total by maturity	$	103,782,586,187

Bonds by NAIC designation - statement value
NAIC 1	$	63,955,395,170
NAIC 2		35,090,242,232
NAIC 3		2,571,262,521
NAIC 4		1,840,642,384
NAIC 5		302,130,565
NAIC 6		22,913,315

Total by NAIC designation	$	103,782,586,187

Total bonds publicly traded	$	55,703,777,216

Total bonds privately placed	$	48,078,808,971

Preferred Stocks - Statement Value	$	43,512,713

Common Stocks - Fair Value	$	615,258,682

Short-Term Investments - Book Value	$	43,908,215

Options, Caps and Floors Owned - Statement Value	$	242,527,246

Options, Caps and Floors Written and In-Force - Statement Value	$	—

Collar, Swap and Forward Agreements Open - Statement Value	$	720,426,711

Future Contracts Open - Current Value	$	416,564

Cash on Deposit	$	(222,657,159	)

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 1—SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA (continued)


Life Insurance In-Force (in thousands):
Industrial	$	—

Ordinary	$	183,564

Credit life	$	—

Group life	$	741,943

Amount of Accidental Death Insurance In-Force Under Ordinary Policies (in thousands):	$	798

Life Insurance Policies with Disability Provisions In-Force (in thousands):
Industrial	$	—

Ordinary	$	14,507

Credit life	$	—

Group life	$	—

Supplementary Contracts In-Force:
Ordinary - not involving life contingencies
Amount on deposit	$	312,748,977

Income payable	$	51,726,610

Ordinary - involving life contingencies
Income payable	$	51,211,980

Group - not involving life contingencies
Amount on deposit

Income payable

Group - involving life contingencies
Income payable

Annuities:
Ordinary
Immediate - amount of income payable	$	2,056,329,740

Deferred - fully paid account balance	$	54,029,137,239

Deferred - not fully paid - account balance	$	36,540,076,416

Group
Amount of income payable	$	79,031,942

Fully paid account balance	$	990,567

Not fully paid - account balance	$	—

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 1—SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA (continued)


Accident and Health Insurance - Premiums In-Force
Ordinary	$	—

Group	$	—

Credit	$	—

Deposit Funds and Dividend Accumulations:
Deposit funds - account balance	$	282,022,138

Dividend accumulations - account balance	$	—

Claim Payments 2023 (in thousands):
Group accident and health - year ended December 31, 2023
2023

2022

2021

2020

2019

Prior

Other accident and health
2023

2022

2021

2020

2019

Prior

Other coverages that use developmental methods to calculate claims reserves (in thousands):
2023	$	881

2022	$	988

2021	$	926

2020	$	956

2019	$	774

Prior	$	18

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 2—SUMMARY INVESTMENT SCHEDULE

At and for the Year Ended December 31, 2023


Investment Categories	Gross Investment Holdings*					Admitted Assets as Reported in the Annual Statement
	Amount		Percentage			Amount		Securities Lending Reinvested Collateral Amount		Total Amount		Percentage
Bonds:
U.S. governments	$	5,663,493,664		4.508	%	$	5,663,493,652			$	5,663,493,652		4.509	%
All other governments		247,349,546		0.197			247,349,543				247,349,543		0.197
U.S. states, territories and possessions, etc. guaranteed		—		—			—		—		—		—
U.S. political subdivisions of states, territories, and possessions, guaranteed		—		—			—		—		—		—
U.S. special revenue and special assessment obligations, etc. non-guaranteed		10,509,428,813		8.366			10,509,428,777				10,509,428,777		8.367
Industrial and miscellaneous		81,208,552,375		64.643			81,208,552,430				81,208,552,430		64.656
Hybrid securities		—		—			—		—		—		—
Parent, subsidiaries and affiliates		3,120,177,818		2.484			3,120,177,819				3,120,177,819		2.484
SVO identified funds		754,823,659		0.601			754,823,659				754,823,659		0.601
Unaffiliated Bank loans		552,112,378		0.439			552,112,374				552,112,374		0.440
Unaffiliated Certificates of deposit		—		0.000			—		—		—		—
Total long-term bonds		102,055,938,253		81.238			102,055,938,254				102,055,938,254		81.254
Preferred Stocks:
Industrial and miscellaneous (Unaffiliated)		43,512,713		0.035			43,512,713				43,512,713		0.035
Parent, subsidiaries and affiliates		—		—			—		—		—		—
Total preferred stocks		43,512,713		0.035			43,512,713				43,512,713		0.035
Common Stock:
Industrial and miscellaneous Publicly traded (Unaffiliated)		454,040,222		0.361			454,096,287				454,096,287		0.362
Industrial and miscellaneous Other (Unaffiliated)		33,970,920		0.027			33,914,836				33,914,836		0.027
Parent, subsidiaries and affiliates Publicly traded				—									—
Parent, subsidiaries and affiliates Other				—									—
Mutual funds		125,959,006		0.100			125,959,005				125,959,005		0.100
Unit investment trusts				—									—
Closed-end funds				—									—
Exchange traded funds		1,288,554		0.001			1,288,554				1,288,554		0.001
Total common stocks		615,258,702		0.490			615,258,682				615,258,682		0.490
Mortgage loans:
Farm mortgages		—		—			—		—		—		—
Residential mortgages		4,075,801		0.003			4,075,801				4,075,801		0.003
Commercial mortgages		15,186,978,392		12.089			15,186,978,388				15,186,978,388		12.091
Mezzanine real estate loans		292,876,613		0.233			292,876,613				292,876,613		0.233
Total valuation allowance				—									—
Total mortgage loans		15,483,930,806		12.325			15,483,930,802				15,483,930,802		12.328

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 2—SUMMARY INVESTMENT SCHEDULE (continued)


Investment Categories	Gross Investment Holdings*						Admitted Assets as Reported in the Annual Statement
	Amount			Percentage			Amount			Securities Lending Reinvested Collateral Amount		Total Amount			Percentage
Real Estate:
Properties occupied by company		—			—			—			—		—			—
Properties held for production of income		91,166,137			0.073			91,166,137					91,166,137			0.073
Properties held for sale					—											—
Total real estate		91,166,137			0.073			91,166,137					91,166,137			0.073
Cash, cash equivalents and short-term investments:
Cash		(222,657,159	)		(0.177	)		(222,657,159	)				(222,657,159	)		(0.177	)
Cash equivalents		1,874,558,563			1.492			1,874,558,564					1,874,558,564			1.492
Short-term investments		43,908,216			0.035			43,908,215					43,908,215			0.035
Total cash, cash equivalents and short-term investments		1,695,809,620			1.35			1,695,809,620					1,695,809,620			1.35
Contract loans		948,865,372			0.755			927,584,607					927,584,607			0.739
Derivatives		1,196,422,700			0.952			1,196,422,700					1,196,422,700			0.953
Other invested assets		3,342,739,779			2.661			3,338,621,735					3,338,621,735			2.658
Receivables for securities		15,694,487			0.012			15,694,487					15,694,487			0.012
Securities Lending					—
Other invested assets		137,225,563			0.109			137,225,563					137,225,563			0.109
Total invested assets	$	125,626,564,132			100.000	%	$	125,601,165,300				$	125,601,165,300			100.000	%

* Gross investment holdings as valued in compliance with NAIC Accounting Practices & Procedures Manual.

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 3 – INVESTMENT RISKS INTERROGATORIES

At and for the Year Ended December 31, 2023


NAIC Group Code: 0826		NAIC Company Code: 91596		EIN: 13-3044743

The Investment Risks Interrogatories are to be filed by April 1. They are also to be included with the Audited Statutory Financial Statements.

Answer the following interrogatories by reporting the applicable U.S. dollar amounts and percentages of the reporting entity’s total admitted assets held in that category of investments.

1. Reporting entity’s total admitted assets as reported on Page 2 of this annual statement. $138,909,313,692

2. Ten largest exposures to a single issuer/borrower/investment.


Issuer	Description of Exposure	Amount		Total Admitted Assets
NEW YORK LIFE INS CO (MADISON CAPITAL FUNDING LLC )	Bonds/Limited Partnership	$	3,354,928,668		2.42	%
WELLS FARGO	Bonds/Equity/Derivatives	$	1,195,627,853		0.86	%
JP MORGAN	Bonds/Equity	$	985,098,692		0.71	%
NYLIM HOLDINGS NOTE	Bonds	$	762,000,000		0.55	%
MORGAN STANLEY	Bonds/Equity	$	746,120,149		0.54	%
CITIGROUP	Bonds/Equity	$	730,734,981		0.53	%
GS MORTGAGE	Mortgage Loans	$	649,165,715		0.47	%
GIC REAL ESTATE	Mortgage Loans	$	612,143,034		0.44	%
BLACKSTONE	Mortgage Loans	$	557,954,388		0.40	%
MAPLETREE INVESTMENTS PTE LTD	Mortgage Loans	$	476,000,000		0.34	%

3. Amounts and percentages of the reporting entity’s total admitted assets held in bonds and preferred stocks by NAIC rating.


Rating	Bonds		Percentage of Total Admitted Assets			Preferred Stocks				Percentage of Total Admitted Assets
NAIC – 1	$	63,955,395,171		46.04	%		P/RP - 1	$	65,032		—	%
NAIC – 2	$	35,090,242,233		25.26	%		P/RP - 2	$	15,347,799		0.01	%
NAIC – 3	$	2,571,262,520		1.85	%		P/RP - 3	$	—		—	%
NAIC – 4	$	1,840,642,384		1.33	%		P/RP - 4	$	—		—	%
NAIC – 5	$	302,130,564		0.22	%		P/RP - 5	$	—		—	%
NAIC – 6	$	22,913,315		0.02	%		P/RP - 6	$	28,099,882		0.02	%

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 3 – INVESTMENT RISKS INTERROGATORIES (continued)

4. Assets held in foreign investments:

Are assets held in foreign investments less than 2.5% of the reporting entity’s total admitted assets?

Yes [ ] No [X]


If response to 4.01 above is Yes, responses are not required for interrogatories 5-10
Total admitted assets held in foreign investments	$	18,511,069,601	13.33	%
Foreign-currency-denominated investments	$	—	—	%
Insurance liabilities denominated in that same foreign currency	$	—	—	%
5. Aggregate foreign investment exposure categorized by NAIC sovereign rating:
Countries rated NAIC-1	$	17,761,826,949	12.79	%
Countries rated NAIC-2	$	520,191,736	0.37	%
Countries rated NAIC-3 or below	$	229,050,917	0.16	%
6. Largest foreign investment exposures by country, categorized by NAIC sovereign rating:
Countries rated NAIC-1:
UNITED KINGDOM	$	4,746,859,397	3.42	%
CAYMAN ISLANDS	$	4,482,414,317	3.23	%
Countries rated NAIC-2:
MEXICO	$	203,842,021	0.15	%
INDONESIA	$	83,830,111	0.06	%
Countries rated NAIC-3 or below:
BARBADOS	$	49,020,877	0.04	%
COLOMBIA	$	37,278,781	0.03	%
7. Aggregate unhedged foreign currency exposure	$	220,659,049	0.15	%
8. Aggregate unhedged foreign currency exposure categorized by the country’s NAIC sovereign rating:
Countries rated NAIC-1:	$	208,109,241	0.15	%
Countries rated NAIC-2:	$	10,694,773	0.01	%
Countries rated NAIC-3 or below:	$	1,855,035	0.00	%
9. Largest unhedged foreign currency exposures by country, categorized by the country’s NAIC sovereign rating:
Countries rated NAIC-1:
LUXEMBOURG	$	57,974,189	0.04	%
UNITED KINGDOM	$	52,536,273	0.04	%
Countries rated NAIC-2:
ITALY	$	5,062,225	—	%
INDIA	$	3,615,519	—	%
Countries rated NAIC-3 or below:
BRAZIL	$	1,256,120	—	%
SOUTH AFRICA	$	518,764	—	%

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 3 – INVESTMENT RISKS INTERROGATORIES (continued)

10. Ten largest non-sovereign (i.e. non-governmental) foreign issues:


Issuer	NAIC Rating
INTERTEK GROUP PLC	2A	$	202,465,014	0.15	%
UBS GROUP AG	2.A FE	$	167,127,233	0.12	%
BANCO SANTANDER SA	1.E FE	$	146,426,296	0.11	%
BALLYROCK CLO LTD BALLY_23-23A	1.A FE	$	140,000,000	0.10	%
LLOYDS BANKING GROUP PLC	2.A FE	$	139,043,214	0.10	%
MITSUBISHI UFJ FINANCIAL GROUP	1.G FE	$	138,397,882	0.10	%
BARCLAYS PLC	2.A FE	$	134,755,020	0.10	%
TRITAX BIG BOX REIT PLC	2.A	$	127,798,663	0.09	%
RAD CLO LTD RAD_23-18	1.A FE	$	125,748,000	0.09	%
STATNETT SF	1.F	$	123,800,000	0.09	%

11. Amounts and percentages of the reporting entity’s total admitted assets held in Canadian investments and unhedged Canadian currency exposure.

Are assets held in Canadian investments less than 2.5% of the reporting entity’s total admitted assets? Yes [X] No [ ]

If response to 11.01 is Yes, detail is not required for the remainder of Interrogatory 11

12. Report aggregate amounts and percentages of the reporting entity’s total admitted assets held in investments with contractual sales restrictions.

Are assets held in investments with contractual sales restrictions less than 2.5% of the reporting entity’s total admitted assets? Yes[X] No[ ]

If response to 12.01 is Yes, responses are not required for the remainder of Interrogatory 12

13. Amounts and percentages of admitted assets held in the ten largest equity interests:

Are assets held in equity interest less than 2.5% of the reporting entity’s total admitted assets?

Yes [] No [X]

If response to 13.01 above is Yes, responses are not required for the remainder of Interrogatory 13


Issuer
MADISON CAPITAL FUNDING LLC	$	1,237,699,316	0.89	%
CURZON CAPITAL PARTNERS 5 LONG-LIFE LP	$	93,561,798	0.07	%
STONE RIDGE HOLDING GROUP LP - PREFERRED SHARES	$	87,210,000	0.06	%
MSSDF MEMBER LLC	$	78,794,423	0.06	%
TRISTAN INCOME PLUS STRATEGY ONE SCSP	$	67,987,386	0.05	%
GOLDPOINT MEZZANINE PARTNERS IV, LP	$	63,123,195	0.05	%
NYLIC HKP MEMBER LLC	$	48,889,200	0.04	%
INE CANDRIAM GF US COR BD SQ USD DIS	$	48,056,000	0.03	%
MACKAY SHIELDS EMERGING MARKETS DEBT PORTFOLIO	$	47,788,680	0.03	%
REEP-RTL NPM GA LLC	$	46,379,003	0.03	%

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 3 – INVESTMENT RISKS INTERROGATORIES (continued)

14. Amounts and percentages of the reporting entity’s total admitted assets held in nonaffiliated, privately placed equities:

Are assets held in nonaffiliated, privately placed equities less than 2.5% of the reporting entity’s total admitted assets? Yes [X] No [ ]

If response to 14.01 above is yes, responses are not required for 14.02 through 14.05. Aggregate statement value of investments held in nonaffiliated, privately placed equities Largest three investments held in nonaffiliated, privately placed equities:

Ten largest fund managers:


Fund Manager	Total Invested		Diversified		Nondiversified
STONE RIDGE	$	1,054,516,681	$	—	$	1,054,516,681
BLACKROCK ADVISORS, LLC	$	755,442,686	$	755,442,686	$	—
APOGEM CAPITAL	$	172,137,115	$	—	$	172,137,115
CANDRIAM LUXEMBOURG	$	146,106,989	$	—	$	146,106,989
FIDELITY MANAGEMENT & RESEARCH COMPANY	$	105,000,100	$	105,000,100	$	—
NYL INVESTORS LLC - REAL ESTATE INVESTORS	$	88,929,792	$	—	$	88,929,792
MACKAY	$	77,917,953	$	—	$	77,917,953
WHITEHORSE	$	51,344,733	$	—	$	51,344,733
EQT	$	23,646,071	$	—	$	23,646,071
AUSBIL INVESTMENT MANAGEMENT LIMITED	$	20,007,322	$	—	$	20,007,322

15. Amounts and percentages of the reporting entity’s total admitted assets held in general partnership interests:

Are assets held in general partnership interests less than 2.5% of the reporting entity’s total admitted assets? Yes [X] No [ ]

If response to 15.01 above is Yes responses are not required for the remainder of Interrogatory 15

16. Amounts and percentages of the reporting entity’s total admitted assets held in mortgage loans:

Are mortgage loans reported in Schedule B less than 2.5% of the reporting entity’s total admitted assets? Yes [ ] No [X]

If response to 16.01 above is Yes, responses are not required for the remainder of Interrogatory 16 and Interrogatory 17

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 3 – INVESTMENT RISKS INTERROGATORIES (continued)


Type ( Residential, Commercial, Agricultural)
COMMERCIAL	$	306,245,000	0.22	%
COMMERCIAL	$	286,896,178	0.21	%
COMMERCIAL	$	257,320,000	0.19	%
COMMERCIAL	$	247,100,000	0.18	%
COMMERCIAL	$	228,900,000	0.16	%
COMMERCIAL	$	228,823,034	0.16	%
COMMERCIAL	$	224,516,000	0.16	%
COMMERCIAL	$	219,484,000	0.16	%
COMMERCIAL	$	164,125,741	0.12	%
COMMERCIAL	$	162,895,054	0.12	%

Amount and percentage of the reporting entity’s total admitted assets held in the following categories of mortgage loans:


Construction loans	$	471,938,271	0.34	%
Mortgage loans over 90 days past due	$	—	—	%
Mortgage loans in the process of foreclosure	$	109,500,000	0.08	%
Mortgage loans foreclosed	$	481,372	—	%
Restructured mortgage loans	$	—	—	%

17. Aggregate mortgage loans having the following loan-to-value ratios as determined from the most current appraisal as of the annual statement date:


Loan-to-Value	Residential				Commercial				Agricultural
above 95%	$	—	—	%	$	254,186,512	0.18	%	$	—	—	%
91% to 95%	$	—	—	%	$	170,532,138	0.12	%	$	—	—	%
81% to 90%	$	—	—	%	$	771,088,603	0.56	%	$	—	—	%
71% to 80%	$	—	—	%	$	861,690,745	0.62	%	$	—	—	%
Below 70%	$	4,075,801	—	%	$	13,422,357,003	9.66	%	$	—	—	%

18. Amounts and percentages of the reporting entity’s total admitted assets held in each of the five largest investments in real estate:

Are assets held in real estate reported less than 2.5% of the reporting entity’s total admitted assets Yes [X] No [ ]

If response to 18.01 above is Yes, responses are not required for the remainder of Interrogatory 18

19. Report aggregate amounts and percentages of the reporting entity’s total admitted assets held in investments held in mezzanine real estate loans:

Are assets held in investment held in mezzanine real estate loans less than 2.5% of the reporting entity’s total admitted assets Yes [X] No [ ]

If response to 19.01 above is Yes, responses are not required for the remainder of Interrogatory 19

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 3 – INVESTMENT RISKS INTERROGATORIES (continued)

20. Amounts and percentages of the reporting entity’s total admitted assets subject to the following types of agreements:


	At End of Each Quarter
	At Year End				1st Qtr		2nd Qtr		3rd Qtr
Securities lending agreements (do not include assets held as collateral for such transactions)	$	687,857,306	0.50	%	$	722,615,099	$	717,899,970	$	740,937,316
Repurchase agreements	$	—	—	%	$	—	$	—	$	—
Reverse repurchase agreements	$	210,310,000	0.15	%	$	206,055,000	$	221,343,000	$	209,568,000
Dollar repurchase agreements	$	—	—	%	$	—	$	—	$	—
Dollar reverse repurchase agreements	$	—	—	%	$	—	$	—	$	—

21. Amounts and percentages of the reporting entity’s total admitted assets for warrants not attached to other financial instruments, options, caps, and floors:


	Owned				Written
Hedging	$	242,527,246	0.17	%	$	—	—	%
Income generation	$	—	—	%	$	—	—	%
Other	$	—	—	%	$	—	—	%

22. Amounts and percentages of the reporting entity’s total admitted assets of potential exposure for collars, swaps, and forwards:


	At End of Each Quarter
	At Year End				1st Qtr		2nd Qtr		3rd Qtr
Hedging	$	151,921,846	0.11	%	$	156,483,624	$	160,944,946	$	154,784,326
Income generation	$	—	—	%	$	—	$	—	$	—
Replications	$	275,686,214	0.20	%	$	251,800,085	$	251,121,856	$	250,929,906
Other	$	—	—	%	$	—	$	—	$	—

23. Amounts and percentages of the reporting entity’s total admitted assets of potential exposure for futures contracts:


	At End of Each Quarter
	At Year End				1st Qtr		2nd Qtr		3rd Qtr
Hedging	$	7,380,050	0.01	%	$	1,347,575	$	1,026,425	$	14,225,025
Income generation	$	—	—	%	$	—	$	—	$	—
Replications	$	—	—	%	$	—	$	—	$	—
Other	$	—	—	%	$	—	$	—	$	—

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

SCHEDULE 4—SUPPLEMENTAL SCHEDULE OF REINSURANCE CONTRACTS

At and for the Year Ended December 31, 2023

1.	Ceded Reinsurance contracts (or multiple contracts with the same reinsurer or its affiliates) subject to A-791 that includes a provision, which limits the reinsurer’s assumption of significant risks identified as in A-791.

None

2.	Ceded Reinsurance contracts (or multiple contracts with the same reinsurer or its affiliates) not subject to A-791, for which reinsurance accounting was applied and includes a provision that limits the reinsurer’s assumption of risk.

None

3.	Ceded Reinsurance contracts containing features (except reinsurance contracts with a federal or state facility) described below which result in delays in payment in form or in fact:

a.	Provisions which permit the reporting of losses, or settlements are made, less frequently than quarterly or payments due from the reinsurer are not made in cash within ninety (90) days of the settlement date (unless there is no activity during the period).

None

b.	Payment schedules, accumulating retentions from multiple years or any features inherently designed to delay timing of the reimbursement to the ceding entity.

None

4.	Contracts for which the reporting entity has reflected reinsurance accounting credit for any contracts not subject to Appendix A-791 and not yearly renewable term, which meet the risk-transfer requirements of SSAP 61R, including any new assumption reinsurance contracts.

None

5.	Risk ceded which is not subject to A-791 and not yearly renewable term reinsurance, under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statement, and either:

a.	Accounted for that contract as reinsurance under statutory accounting principles (SAP) and as a deposit under U.S. generally accepted accounting principles (GAAP); or

None

b.	Accounted for that contract as reinsurance under U.S. GAAP and as a deposit under SAP. If yes, explain why the contract (s) is treated different for GAAP and SAP.

None