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The Variable Annuity LifeInsurance CompanyAudited Statutory Financial StatementsAt December 31, 2020 and 2019 andfor each of the three years ended December 31, 2020

THE VARIABLE ANNUITY LIFE INSURANCE COMPANYTABLE OF CONTENTS TO AUDITED STATUTORY FINANCIAL STATEMENTS ANDSUPPLEMENTAL INFORMATIONSTATUTORY FINANCIAL STATEMENTSIndependent Auditor’s ReportStatutory Statements of Admitted Assets, Liabilities and Capital and Surplus at December 31, 2020 and 2019Statutory Statements of Operations for the Years Ended December 31, 2020, 2019 and 2018Statutory Statements of Changes in Capital and Surplus for the Years Ended December 31, 2020, 2019 and2018Statutory Statements of Cash Flows for the Years Ended December 31, 2020, 2019 and 2018Page24678NOTES TO STATUTORY FINANCIAL 7.18.19.20.21Nature of OperationsSummary of Significant Accounting PoliciesInvestmentsSecurities Lending and Repurchase AgreementsRestricted AssetsSubprime Mortgage Risk ExposureDerivativesInformation about Financial Instruments with Off-Balance Sheet Risk andFinancial Instruments with Concentrations of Credit RiskFair Value MeasurementsAggregate Policy Reserves and Deposit Fund LiabilitiesSeparate AccountsReserves for Guaranteed Policy Benefits and EnhancementsReinsuranceFederal Income TaxesCapital and SurplusRetirement Plans and Share-Based and Deferred Compensation PlansDebtCommitments and ContingenciesRelated Party TransactionsSubsequent EventsLoan-Backed and Structured Security Impairments and Structured 566SUPPLEMENTAL INFORMATIONSupplemental Schedule of Assets and LiabilitiesSupplemental Investment Risks InterrogatoriesSupplemental Summary Investment ScheduleSupplemental Schedule of Reinsurance Disclosures707278791

Report of Independent AuditorsTo the Board of Directors and Shareholder of The Variable Annuity Life Insurance CompanyWe have audited the accompanying statutory financial statements of The Variable Annuity Life InsuranceCompany (the “Company”), an indirect, wholly-owned subsidiary of American International Group, Inc.,which comprise the statutory statements of admitted assets, liabilities and capital and surplus as ofDecember 31, 2020 and 2019, and the related statutory statements of operations and changes in capitaland surplus, and of cash flows for each of the three years in the period ended December 31, 2020.Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of the financial statements inaccordance with the accounting practices prescribed or permitted by the Texas Department of Insurance.Management is also responsible for the design, implementation, and maintenance of internal controlrelevant to the preparation and fair presentation of financial statements that are free from materialmisstatement, whether due to fraud or error.Auditors’ ResponsibilityOur responsibility is to express an opinion on the financial statements based on our audits. We conductedour audits in accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on our judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In makingthose risk assessments, we consider internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company'sinternal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimatesmade by management, as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.Basis for Adverse Opinion on U.S. Generally Accepted Accounting PrinciplesAs described in Note 2 to the financial statements, the financial statements are prepared by the Companyon the basis of the accounting practices prescribed or permitted by the Texas Department of Insurance,which is a basis of accounting other than accounting principles generally accepted in the United States ofAmerica.The effects on the financial statements of the variances between the statutory basis of accountingdescribed in Note 2 and accounting principles generally accepted in the United States of America,although not reasonably determinable, are presumed to be material.PricewaterhouseCoopers LLP, 1000 Louisiana Street, Suite 5800, Houston, TX 77002T: (713) 356 4000, F: (713) 356 4717, www.pwc.com/us2

Adverse Opinion on U.S. Generally Accepted Accounting PrinciplesIn our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion onU.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to above donot present fairly, in accordance with accounting principles generally accepted in the United States ofAmerica, the financial position of the Company as of December 31, 2020 and 2019, or the results of itsoperations or its cash flows for each of the three years in the period ended December 31, 2020.Opinion on Statutory Basis of AccountingIn our opinion, the financial statements referred to above present fairly, in all material respects, theadmitted assets, liabilities and capital and surplus of the Company as of December 31, 2020 and 2019, andthe results of its operations and its cash flows for each of the three years in the period ended December 31,2020, in accordance with the accounting practices prescribed or permitted by the Texas Department ofInsurance described in Note 2.Other MatterOur audit was conducted for the purpose of forming an opinion on the statutory-basis financial statementstaken as a whole. The Supplemental Schedule of Assets and Liabilities, Supplemental Investment RisksInterrogatories, Supplemental Summary Investment Schedule, and Supplemental Schedule ofReinsurance Disclosures (collectively, the “supplemental schedules”) of the Company as of December 31,2020 and for the year then ended are presented to comply with the National Association of InsuranceCommissioners’ Annual Statement Instructions and Accounting Practices and Procedures Manual and forpurposes of additional analysis and are not a required part of the statutory-basis financial statements. Thesupplemental schedules are the responsibility of management and were derived from and relate directly tothe underlying accounting and other records used to prepare the statutory-basis financial statements. Thesupplemental schedules have been subjected to the auditing procedures applied in the audit of thestatutory-basis financial statements and certain additional procedures, including comparing andreconciling such information directly to the underlying accounting and other records used to prepare thestatutory-basis financial statements or to the statutory-basis financial statements themselves and otheradditional procedures, in accordance with auditing standards generally accepted in the United States ofAmerica. In our opinion, the supplemental schedules are fairly stated, in all material respects, in relationto the statutory-basis financial statements taken as a whole.Houston, TexasApril 23, 20213

THE VARIABLE ANNUITY LIFE INSURANCE COMPANYSTATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL ANDSURPLUSDecember 31,2020(in millions)Admitted assetsCash and investmentsBondsPreferred stockCommon stockCash, cash equivalents and short-term investmentsMortgage loansReal estateContract loansDerivativesSecurities lending reinvested collateral assetsOther invested assetsTotal cash and investmentsAmounts receivable under reinsurance contractsDeferred tax assetDue and accrued investment incomeReceivables from affiliatesOther assetsSeparate account assetsTotal admitted assetsSee accompanying Notes to Statutory Financial Statements.42019 37,621 36,053 72791,110 ,15885,830

THE VARIABLE ANNUITY LIFE INSURANCE COMPANYSTATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL ANDSURPLUS (CONTINUED)(in millions, except per share data)LiabilitiesPolicy reserves and contractual liabilitiesLife and annuity reservesLiabilities for deposit-type contractsTotal policy reserves and contractual liabilitiesPayable to affiliatesInterest maintenance reserveAmounts withheld or retained by Company as agent or trustee and held for agents' accountFederal income taxes payableDerivativesPayable for securities lendingRepurchase agreementsCollateral for derivatives programAccrued expenses and other liabilitiesNet transfers to (from) separate accounts due or accruedAsset valuation reserveSeparate account liabilitiesTotal liabilitiesCommitments and contingencies (see Note 18)Capital and surplusCommon stock, 1 par value; 5,000,000 shares authorized; 3,575,000 issued and outstandingOther than special deficit fundsGross paid-in and contributed surplusUnassigned surplusTotal capital and surplusTotal liabilities and capital and surplusSee accompanying Notes to Statutory Financial Statements.5December 31,20202019 38,090 ,15883,2304(3)2,2636412,90591,110 4(3)2,2633362,60085,830

THE VARIABLE ANNUITY LIFE INSURANCE COMPANYSTATUTORY STATEMENTS OF OPERATIONSYears Ended December 31,20202019(in millions)Revenues Premiums and annuity considerations4,014 4,619 20184,6172,0062,1542,189Amortization of interest maintenance reserve182633Reserve adjustments on reinsurance ceded(55)(40)499Net investment income--1Separate account fees377407363Other ,448146187103Commissions and expense allowancesTotal revenuesBenefits and expensesAnnuity benefitsSurrender benefitsOther benefits1,231657537Commissions153173182General insurance expenses400365333Change in reserves(2,136)Net transfers from separate accounts(1,667)(1,200)1181131195,9466,7337,060Net gain from operations before federal income taxes665663885Federal income tax expense270303189Net gain from operations395360696Other expensesTotal benefits and expenses168Net realized capital gains (losses), net of taxNet incomeSee accompanying Notes to Statutory Financial Statements. 656371 431(14) 682