7 unchanged sentences
Our Finance Department and our Investment Department, together with Risk Management, are responsible for coordinating our ALM strategies throughout the enterprise.
−Removed: The membership of the BSC is comprised of the following members of senior management:
−Removed: Chief Executive Officer, Chief Risk Officer, Chief Financial Officer, Chief Investment Officer and Head of Product Strategy and Pricing.
+Added: The voting membership of the BSC is comprised of the following members of senior management:
+Added: Chief Executive Officer, Chief Risk Officer, Chief Financial Officer, Chief Investment Officer and Head of Product Strategy and Underwriting.
Our significant market risk management practices include, but are not limited to, the following:
8 unchanged sentences
These strategies include the use of surrender charges, market value adjustment features or restrictions on withdrawals, and for certain products, the ability to reset crediting rates.
+Added: Tab le of Contents
We analyze interest rate risk using various models, including multi-scenario cash flow projection models that forecast cash flows of the liabilities and their supporting investments, including derivatives.
14 unchanged sentences
Market Risk - Fair Value Exposures
−Removed: We regularly analyze our market risk exposure to interest rate, equity market price, credit spreads and foreign currency exchange rate risks.
−Removed: As a result of that analysis, we have determined that the estimated fair values of certain assets and liabilities are significantly exposed to changes in interest rates, and to a lesser extent, to changes in equity market prices and foreign currency exchange rates.
−Removed: We have exposure to market risk through our insurance operations and investment activities.
+Added: We have exposure to market risk through our insurance operations and general account investment activities.
For purposes of this discussion, “market risk” is defined as changes in estimated fair value resulting from changes in interest rates, equity market prices, credit spreads and foreign currency exchange rates.
−Removed: We may have additional financial impacts other than changes in estimated fair value, which are beyond the scope of this discussion.
+Added: We regularly analyze our market risk exposure.
+Added: As a result of that analysis, we have determined that the estimated fair values of certain assets and liabilities are significantly exposed to changes in interest rates, and to a lesser extent, to changes in equity market prices and foreign currency exchange rates.
+Added: We may have additional financial impacts other than changes in estimated fair value.
See “Risk Factors” for additional disclosure regarding our market risk and related sensitivities.
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We economically hedge substantially all of our foreign currency exposure.
+Added: Tab le of Contents
Risk Measurement:
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• the estimated fair value of our equity positions due to a 10% change (increase or decrease) in equity market prices;
−Removed: dollar equivalent of estimated fair values of our foreign currency exposures due to a 10% change (increase in the value of the U.S.
−Removed: dollar compared to the foreign currencies or decrease in the value of the U.S.
−Removed: dollar compared to the foreign currencies) in foreign currency exchange rates.
+Added: dollar equivalent of estimated fair values of our foreign currency exposures due to a 10% change (increase or decrease) in foreign currency exchange rates.
The sensitivity analysis is an estimate and should not be viewed as predictive of our future financial performance.
8 unchanged sentences
Accordingly, we use such models as tools and not as substitutes for the experience and judgment of our management.
+Added: Tab le of Contents
The potential loss in the estimated fair value of our interest rate sensitive financial instruments due to a 100 basis point increase in the yield curve by type of asset and liability was as follows at:
December 31, 2025
−Removed: Amount Estimated
−Removed: Value (1) 100 Basis Point Increase
+Added: Fair Value (1)
+Added: 100 Basis Point Increase in the Yield Curve
(In millions)
2 unchanged sentences
Mortgage loans
−Removed: Policy loans $ 2,104 (99)
Premiums, reinsurance and other receivables
−Removed: Reinsurance of market risk benefits $ 17 (26)
+Added: Reinsurance of index-linked annuities and market risk benefits
Increase (decrease) in estimated fair value of assets
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Increase (decrease) in estimated fair value of derivative instruments
−Removed: Net change $ (4,439)
_______________
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Sensitivity Summary
−Removed: Sensitivity to a 100 basis point rise in interest rates decreased by $390 million, or 8% to $4.4 billion at December 31, 2024 from $4.8 billion at December 31, 2023, primarily as a result of a decrease in the estimated fair value of our fixed maturity securities due to higher interest rates, in line with management expectation.
−Removed: Sensitivity to a 10% decrease in equity prices increased by $233 million, or 262% to $322 million at December 31, 2024 from $89 million at December 31, 2023, primarily as a result of increase sales of index-linked annuities.
+Added: Sensitivity to a 100 basis point rise in interest rates increased by $474 million, or 11% to $4.9 billion at December 31, 2025 from $4.4 billion at December 31, 2024, primarily as a result of an increase in derivatives used to mitigate interest rate exposures from our policyholder liabilities.
+Added: Sensitivity to a 10% decrease in equity prices increased by $403 million, or 125% to $725 million at December 31, 2025 from $322 million at December 31, 2024, primarily due to differences between the fair value methodologies of our equity-sensitive liabilities compared to the methodologies used to value the related derivative instruments.
As discussed above, we economically hedge substantially all of our foreign currency exposure such that sensitivity to changes in foreign currencies is minimal.
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.