Quantitative and Qualitative Disclosures about Market Risk
−Removed: Refer to Item 7A included in our 2023 Form 10-K.
Foreign currency management
11 unchanged sentences
Therefore, we evaluate this business in terms of its long-term economic risk and reward.
−Removed: The tables below are estimates of the sensitivities to instantaneous changes in economic inputs (e.g., equity shock, interest rate shock etc.) at September 30, 2024, for both the fair value of the MRB liability (FVL) and the fair value of specific derivative instruments held (hedge value) to partially offset the risk in the MRB reinsurance portfolio.
+Added: The tables below are estimates of the sensitivities to instantaneous changes in economic inputs (e.g., equity shock, interest rate shock etc.) at March 31, 2025, for both the fair value of the MRB liability (FVL) and the fair value of specific derivative instruments held (hedge value) to partially offset the risk in the MRB reinsurance portfolio.
The following assumptions should be considered when using the below tables:
13 unchanged sentences
AA-rated credit spreads are a proxy for both our own credit spreads and the credit spreads of the ceding insurers.
−Removed: • The hedge sensitivity is from September 30, 2024, market levels and only applicable to the equity and interest rate sensitivities table below.
+Added: • The hedge sensitivity is from March 31, 2025, market levels and only applicable to the equity and interest rate sensitivities table below.
• The sensitivities do not scale linearly and may be proportionally greater for larger movements in the market factors.
20 unchanged sentences
All our MRB reinsurance treaties include annual or aggregate claim limits and many include an aggregate deductible which limit the net amount at risk under these programs.
−Removed: The tables below present the net amount at risk at September 30, 2024, following an immediate change in equity market levels, assuming all global equity markets are impacted equally.
+Added: The tables below present the net amount at risk at March 31, 2025, following an immediate change in equity market levels, assuming all global equity markets are impacted equally.
a) Reinsurance covering the GMDB risk only
5 unchanged sentences
As the shocks in the table above become incrementally more negative, the impacts begin to drop due to the specific nature of these claim limits, many of which are annual claim limits calculated as a percentage of the reinsured account value.
−Removed: There is also an impact due to a portion of the reinsurance under which claims are positively correlated to equity markets (claims decrease as equity markets fall).
+Added: There is also an impact due to a portion of the book under which claims are positively correlated to equity markets (claims decrease as equity markets fall).
b) Reinsurance covering the GLB risk only
2 unchanged sentences
GLB net amount at risk $ 781 $ 1,012 $ 1,364 $ 1,784 $ 2,038 $ 2,265
−Removed: The treaty limits cause the net amount at risk to increase at a declining rate as equity markets fall.
+Added: Beyond a certain point, the treaty limits cause the net amount at risk to increase at a declining rate as equity markets fall.
c) Reinsurance covering both the GMDB and GLB risks on the same underlying policyholders
4 unchanged sentences
Claims at 100% immediate mortality 25 24 24 24 24 24
−Removed: The treaty limits cause the GMDB and GLB net amount at risk to increase at a declining rate as equity markets fall.
+Added: Beyond a certain point, the treaty limits cause the net amount at risk to increase at a declining rate as equity markets fall.
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.