4 unchanged sentences
The Company manages interest rate, inflation and currency risk as part of its asset and liability management strategies, which includes maintaining a portfolio with a weighted average duration that approximates the estimated liability cash flows, and maintaining hedging programs including the use of cross currency, interest rate and inflation swaps.
−Removed: The PRT liabilities represent long-dated pound sterling-denominated, inflation-linked pension benefits with the largest tranche of benefits escalating with the U.K.
−Removed: Retail Price Index subject to a floor of 0% and a cap of 5%.
−Removed: The reinsured book of business covers periodic pensioners’ payments as well as allowable lump sum payments.
+Added: The PRT liabilities represent long-dated pound sterling-denominated pension benefits comprising a combination of fixed and inflation‑linked benefit payments.
+Added: Inflation‑linked benefits escalate based on the U.K.
+Added: Retail Price Index or U.K.
+Added: Consumer Price Index and are subject to specified contractual floors and caps.
+Added: This reinsured book of business covers periodic pensioners’ payments as well as allowable lump sum payments.
The assets supporting the PRT book of business include both pound sterling and U.S.
−Removed: dollar denominated investments, and derivatives that hedge a portion of the interest rate, foreign exchange rate and inflation rate volatility.
+Added: dollar denominated investments and derivatives that hedge a portion of the interest rate, foreign exchange rate and inflation rate exposure.
The table below shows the carrying value of invested assets, derivatives and future policy benefits for annuity reinsurance contracts associated with the annuity reinsurance business as well as the estimated sensitivity of the carrying value to hypothetical changes in interest rates, foreign currency exchange rates and inflation.
Annuity Reinsurance
−Removed: As of March 31, 2026
+Added: As of June 30, 2026
Interest rates Pound Sterling/U.S.
19 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.