# ULLICO INVESTMENT COMPANY, LLC X-17A-5 (2024-03-18) — Broker-dealer annual report - Company: ULLICO INVESTMENT COMPANY, LLC - Form: X-17A-5 - Filed: 2024-03-18 - Period: 2023-12-31 - Accession: 0001324190-24-000002 - CIK: 1324190 - File #: 8-66906 - Type: Broker-dealer - Material weakness: No - Auditor: Ernst & Young LLP - Auditor location: Philadelphia, PA - Contact: Yinan Yu - Phone: 202-682-67 49 - Email: yyu@ullico.com - Website: ullico.com - Signed by: Yinan Yu (VP, CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1324190/000132419024000002/uicpublicfinancials2023.pdf --- {0}------------------------------------------------ ### FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION Ullico Investment Company, LLC Year Ended December 31, 2023 With Report of Independent Registered Public Accounting Firm {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ### ANNUAL REPORTS FORM X-17A-5 PART III | OMB APPROVAL | |---------------------------| | OMB Number: 3235-0123 | | Expires: Nov. 30, 2026 | | Estimated average burden | | 12
hours per response: | SEC FILE NUMBER FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING 01/01/23 - -----------------------------------------------------------------------------------------------------------------------------------MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: Ullico Investment Company, LLC TYPE OF REGISTRANT (check all applicable boxes): | Broker-dealer □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 8403 Colosvilla RD | 0400 UUGSVIIIG IN | | | | | |--------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|-----------------|--------------------------------------------|--| | | (No. and Street) | | | | | Silver Spring | MD | | 20910 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Yinan Yu | 202-682-6749 | | Yyu@ullico.com | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | Ernst & Young LLP | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing *
(Name - if individual, state last, first, and middle name) | | | | | | 2005 Market Street, Suite 700 Philadelphia | PA | 19103 | | | (Address) | (City) | (State) | (Zip Code) | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | | | * Claims for exemption from the requirement that the annual reports of an independent public | | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {2}------------------------------------------------ ### OATH OR AFFIRMATION | Yinan Yu | swear (or affirm) that, to the best of my knowledge and belief, the | | |--------------------------------------------------------------------------|---------------------------------------------------------------------|--| | financial renort nertaining to the firm of Ullico Investment Company LLC | | | 12/31 , 2 023 , is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. ![](_page_2_Picture_3.jpeg) | Signature: | DocuSigned by:
yinan yu | | |--------------------|------------------------------|--| | Title:
VP & CFO | C97D041856C1452
3/13/2024 | | ### This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - [ (b) Notes to consolidated statement of financial condition. - | (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - (d) Statement of cash flows. - = (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ (f) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ {i) Computation of tangible net worth under 17 CFR 240.18a-2. - | |j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - | (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit 8 to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - [ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - | (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - | (q) Oath or affirmation in accordance with 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - = (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | (t) Independent public accountant's report based on an examination of the statement of financial condition. - (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - | (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | (x) Supplemental reports on applying agreed upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - □ (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(d)(2), as applicable. {3}------------------------------------------------ # Ullico Investment Company, LLC Financial Statements and Supplemental Information Year Ended December 31, 2023 # Contents | Report of Independent Registered Public Accounting Firm | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Financial Statements | | Statement of Financial Condition | | Statement of Income | | Statement of Changes in Stockholder's Equity | | Statement of Cash Flows | | Notes to Financial Statements | | Supplemental Information | | Schedule I - Computation of Net Capital Pursuant to Rule 15c3-1 of the Securities and
Exchange Commission | | Schedule II - Statement Pursuant to SEC Rule 17a-5(d) Regarding Computation for
Determination of Reserves Requirements under Rule 15c3-3 of the Securities and
Exchange Commission | | Schedule III - Statement Pursuant to SEC Rule 17a-5(d) Regarding Information
Relating to Possessions or Control of Securities under Rule 15c3-3 of the Securities and
Exchange Commission | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Ernst & Young LLP Tel: +1 215 448 5000 2005 Market Street Fax: +1 215 448 4069 Suite 700 ey.com Philadelphia, PA 19103 ### Report of Independent Registered Public Accounting Firm ### To the Shareholder and Board of Managers of Ullico Investment Company, LLC ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Ullico Investment Company) as of December 31, 2023, the related statements of income, changes in stockholder's equity, and cash flows for the year 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 the Company at December 31, 2023, and the results of its cash flows for the year then ended in conformity with U.S. generally accepted accounting principles. ### Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company 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 audit in accordance with the standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial misstatement, whether due to error or raud. Our audit included performing procedures to assess the risks of material misstatements, whether due to error or fraud, and performing procedures that respond to those included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. ### Supplemental Information The accompanying information contained in Schedules I, II, and III has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. Such information is the Company's management. Our audit procedures included determining whether the information to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information. In forming our opinion on the information, we evaluated whether such information, including its form and content, is presented in conformity with Rule 17a-5 under the Securities Exchange Act of 1934. In our opinion is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2014. March 14, 2024 {5}------------------------------------------------ # Ullico Investment Company, LLC ## Statement of Financial Condition As of December 31, 2023 | Assets | | | |---------------------------------------------------------------|---|-------------| | Cash and cash equivalents | | \$4,888,807 | | Prepaid assets | | 34,122 | | Intercompany receivable | | 23,383 | | Accrued investment income | | 16,032 | | Total assets | S | 4,962,344 | | Liabilities | | | | Compensation payable | S | 1,276,448 | | Intercompany payable | | 44.119 | | Total liabilities | | 1,320,567 | | Stockholder's Equity | | | | Common stock (\$1 par value; 1,000 shares authorized, issued, | | | | and outstanding) | S | 1,000 | | Additional paid-in capital | | 249,000 | | Retained earnings | | 3,391,777 | | Total stockholder's equity | | 3,641,777 | | Total liabilities and stockholder's equity | S | 4,962,344 | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ ### Ullico Investment Company, LLC ### Statement of Income For the Year Ended December 31, 2023 | Revenues | | | |---------------------------------------------|---|------------| | Commissions | S | 14,746,087 | | Interest income | | 130,070 | | Total revenues | | 14,876,157 | | | | | | Expenses | | | | Sales commissions | | 5,233,015 | | Allocated compensation and related expenses | | 2,723,160 | | Allocated operating expenses | | 682,344 | | Promotional fees | | 368,877 | | Insurance expense | | 107,721 | | Professional fees | | 100,391 | | Regulatory fees and expenses | | 46,579 | | Direct operating expenses | | 7,672 | | Total expenses | | 9,269,759 | | Net income | S | 5,606,398 | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ # # ,./-0 1123-456764 |

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Income tax payments (paid to parent) | | | The accompanying notes are an integral part of these financial statements. {9}------------------------------------------------ ### # !"#\$%&'\$(&)%\$%\*+\$(,"-)./,0&%-00 1 2 3424 5657 813 4 5 9:;5< 54 2 2886 5=>2 < 1=3 57 2 56 ?<6 @6 2 1?@38A2 < 8A2 : <6 6 5 76 5 2 254 5 5B <577 8 A2 7<6 5 77 5 2 6 55 2 86 7 65 57 < 7188 3422 <7 2 < 7 5 @5 81@3 5A2 7 6 13 2 424 56578 @5 < 5 7 2 42 2 < 24 2 25 < 5 7 2 5 2 :252 < 5 7 625 < 7 2 7 < :258 # C D&#%&.&E\$%(FEE),%(&%#G)H&E&-0\$%\*+-IFEE),%(&%#D(\$%\*\$"\*0 # /\$0&0).G"-0-%(\$(&)%\$%\*J0-).K0(&L\$(-0 A2MNOPQRSTU7 5 5 4 288< 5 6 < 1V@@W3422X6 267 < 56 8 @ 66 655777 2 8 A2 5 277 5 2 5 2 6 5 4 2 5 < 8A2> 7 2 656 2 TU <6 7 << 7 577 7 2 2 4652 57 2 46 68 # Y-Z-%,-Y-E)#%&(&)% ? 6< [5 5 5 4 2 < < 4 2 5 2 8 5 2 < < 2 <7 < 7 5 5@7 < < 8? 6 5 5 5 277 2 8A2 675 @ \]N^\_`aTU^bbcbdbRebcbfQgbhgNgib\_`j8A275@ 8k\] {10}------------------------------------------------ ### Ullico Investment Company, LLC Notes to Financial Statements (continued) ### 2. Significant Accounting Policies and New Accounting Standards (continued) of the fee income of ULL's Separate Accounts. There were no up-front commissions or fixed amounts of fees that ware recognized in the year ended December 31, 2023. For variable amounts, as the uncertainty is dependent on the value of the accounts at future points in time as well as the length of time the investor remains invested, both of which are highly susceptible to factors outside the Company's influence, the Company does not believe that it can overcome this constraint until the market value of the fund and the investor activities are known, which are usually monthly or quarterly and such revenue is recognized accordingly. Revenue recognized in the current period are primarily related to performance obligations that have been satisfied in prior periods. ### Income Taxes The Company is organized as a single member Limited Liability Company and has elected to be treated as a disregarded entity for federal and state income tax reporting purposes. The Company's earnings are included in the federal tax return filed by the sole member. Accordingly, the accompanying financial statements do not reflect any provisions or credits for federal income taxes. ### Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments in a money market fund and/or investments purchased with an original maturity of three months or less. Fair value approximates carrying value for these investments. ### Stockholder Dividends During 2023, the Board of Directors approved stockholder dividends of \$4,155,000 which were paid to Ullico, its sole stockholder and parent. ### Fair Value Measurements The Company has adopted ASC 820, Fair Value Measurements and Disclosures, for all financial instruments accounted for at fair value on a recurring basis in the Company's financial statements. ASC 820 established a new framework for measuring fair value and expands related disclosures. Broadly, the framework requires fair value to be determined based on the price that would be received for an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants. It also establishes market or observable inputs as the preferred source of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. {11}------------------------------------------------ ### Ullico Investment Company, LLC Notes to Financial Statements (continued) ### 2. Significant Accounting Policies and New Accounting Standards (continued) ASC 820 specifies that a hierarchy of valuation techniques be determined for each asset based on whether the inputs to the valuation technique for those assets are observable or unobservable. Observable inputs reflect market data corroborated by independent sources while unobservable inputs reflect assumptions that are not observable in an active market or are developed internally. These two types of inputs create three valuation hierarchy levels: - · Level 1 valuations reflect quoted market or exchange prices for the actual or identical assets or liabilities in active markets. - · Level 2 valuations reflect inputs other than quoted prices in Level 1, which are observable. The inputs can include some or all of the following: - o quoted prices on similar assets in active markets - o quoted prices on actual assets that are not active - o inputs other than quoted prices such as yield curves, volatilities, or prepayments speeds - o inputs derived from market data - · Level 3 valuations reflect valuations in which one or more of the significant valuation inputs are not observable in an active market, there is limited if any market activity, and/or are based on management inputs into a valuation model The Company maintains policies and procedures to value instruments using the best and most relevant data available. For the year ended December 31, 2023, there were no transfers between levels. As of December 31, 2023, the Company held no investments at fair value. ### Liabilities Subordinated to the Claims of General Creditors At December 31, 2023, and during the year then ended, the Company had no liabilities subordinated to the claims of general creditors. ### Adoption of New Accounting Standards All new Accounting Standards Updates issued by the FASB were assessed and determined to be either not applicable or insignificant in presentation or amount. ### 3. Net Capital Requirements Pursuant to the Uniform Net Capital Rule (Rule 15c3-1) of the SEC, the Company is required to maintain minimum net capital, as defined under such provisions. The rule requires the Company to maintain minimum net capital equal to the greater of \$5,000 or 6%% of aggregate indebtedness. At December 31, 2023, the Company's net capital was \$3,405,998 in excess of net capital requirements. The Company's ratio of aggregate indebtedness to net capital was 0.38 to 1. {12}------------------------------------------------ ### Ullico Investment Company, LLC Notes to Financial Statements (continued) ### 4. Related-Party Transactions The Company earns a placement agent fee derived from an agreed upon percentage of the annual investment management fees earned by UIA through the management of certain privately offered funds. The Company also earns a placement agent fee derived from an agreed upon percentage of the annual investment management fees earned by ULL through the offer of group annuity products. These revenues are reflected in the Commissions line item on the Statement of Income. The Company pays sales commissions to employees of affiliated companies related to the revenue earned through placement agent fees. These expenses are reflected in the Sales commissions line item on the Statement of Income. The Company has entered into an Expense Sharing Agreement (Agreement) with UIA whereby UIA allocates a certain percentage of expenses for rent, utilities, salaries and employee benefits, telephone, equipment, furniture and fixtures, accounting services and other general administrative and office expenses to the Company. These expenses are reflected in the Allocated operating expenses and the Allocated compensation and related expenses line items on the Statement of Income. All other operating expenses other than those allocated under the Agreement are paid directly by the Company. The intercompany receivable amount of \$23,383 and the intercompany payable amount of \$44,119 is related party balances due to ULL related to activity from the above related-party transactions. ### 5. Risks and Uncertainties The Company maintains its cash in a bank account, which, at times, may exceed federally insured limits. The Company has not experienced any losses on this account. Additionally, approximately 89% of the revenues earned by the Company are generated by two affiliated products, representing a significant concentration. The two affiliated products are Separate Account J and the UIF. Management does not believe there to be any significant risk of loss of these products and its correlated revenues. ### 6. Subsequent Events Events or transactions that occur after the balance sheet date but before the financial statements are issued are categorized as recognized or non-recognized for financial statement purposes. The Company has evaluated subsequent events through March 14, 2024, and has determined the following events require disclosure. On January 29, 2024 and February 29, 2024, the Company paid a dividend to Ullico in the amount of \$475.000. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.