16 unchanged sentences
The internal audit function provides an ongoing independent and objective assessment of the effectiveness of internal controls.
−Removed: The Chief Risk Officer (“CRO”) heads our risk management process and reports directly to our Chief Executive Officer (“CEO”).
+Added: The CRAO heads our risk management process and reports directly to our Chief Executive Officer (“CEO”).
Our Enterprise Risk Management Committee (“ERMC”) reviews all risk policies, risk appetites, and discusses market risks associated with our activities.
14 unchanged sentences
Our risk metrics cover the most important aspects in terms of performance measures where risk can materialize and are representative of the regulatory constraints to which our business is subject.
−Removed: The sensitivities for earnings
−Removed: and statutory capital are important metrics since they provide insight into the level of risk we take under stress scenarios.
+Added: The sensitivities for earnings and statutory capital are important metrics since they provide insight into the level of risk we take under stress scenarios.
They also are the basis for internal risk management.
−Removed: We are also subject to cash flow stress testing pursuant to regulatory requirements.
+Added: We are also subject to cash flow testing pursuant to regulatory requirements.
This analysis measures the effect of changes in interest rate assumptions on asset and liability cash flows.
8 unchanged sentences
Asset Liability Management (“ALM”)
−Removed: As part of our ALM program, we have made a significant effort to identify the assets appropriate to different product lines and ensure investing strategies match the profile of these liabilities.
+Added: As part of our ALM program, we have made significant efforts to identify the assets appropriate to support different product lines and ensure investing strategies match the profile of these liabilities.
We monitor ALM metrics (such as duration, key-rate durations, net cash flows and liquidity) and manage the risk exposures at levels that are consistent with our risk appetite.
13 unchanged sentences
20-29 69 — 33 —
+Added: 30 and over 26 — — —
Total $ 57,750 100 % $ 54,232 100 %
10 unchanged sentences
The profitability of most of our products depends on the spreads between interest yield on investments and rates credited on insurance liabilities.
−Removed: We have the ability to adjust the rates credited on the majority of the annuity liabilities at least annually, subject to minimum guaranteed values.
+Added: We have the ability to adjust the rates credited on the majority of the annuity liabilities annually, subject to minimum guaranteed values.
In addition, the majority of the annuity products have surrender and withdrawal penalty provisions designed to encourage persistency and to help ensure targeted spreads are earned.
3 unchanged sentences
Both rising and declining interest rates can negatively affect interest earnings, spread income and the attractiveness of certain products.
−Removed: During periods of increasing interest rates, we may offer higher crediting rates on interest-sensitive products, such as IUL insurance and fixed annuities, and may increase crediting rates on in-force products to keep these products competitive.
+Added: During periods of increasing interest rates, we may offer higher crediting rates on interest-sensitive products, such as IUL insurance and fixed annuities, and may increase crediting rates on inforce products to keep these products competitive.
A rise in interest rates, in the absence of other countervailing changes, will result in a decline in the market value of our investment portfolio, partially offset by gains related to the fair value of MRBs.
7 unchanged sentences
The impact to net earnings, however, will again be significantly offset by corresponding changes in investment income associated with our floating rate investments.
−Removed: There was no balance outstanding on the revolving credit facility at December 31, 2024.
+Added: There was no balance outstanding on the revolving credit facility at December 31, 2025 and December 31, 2024.
Equity Price Risk
1 unchanged sentence
In the past, our exposure to changes in equity prices primarily resulted from our holdings of equity securities.
−Removed: Note B - Fair Value of Financial Instruments to the Consolidated Financial Statements included in Part II - Item 8 of this Annual Report on Form 10-K for additional details on how the carrying values of these investments are determined as of the balance sheet date.
−Removed: Carrying values are subject to fluctuation and, consequently, the amount realized in the subsequent sale of an investment may significantly differ from the reported carrying value.
+Added: Refer to Note B - Fair Value of Financial Instruments to the Consolidated Financial Statements included in Part II - Item 8 of this Annual Report on Form 10-K for additional details on how the carrying values of these investments are determined as of the balance sheet date.
+Added: Carrying values are subject to fluctuation and, consequently, the amount
+Added: realized in the subsequent sale of an investment may significantly differ from the reported carrying value.
Fluctuation in the carrying value of a security may result from perceived changes in the underlying economic characteristics of the investee, the relative price of alternative investments and general market conditions.
2 unchanged sentences
We offer a variety of indexed annuities and IUL contracts with crediting strategies linked to the performance of indices such as the S&P 500 Index, Dow Jones Industrials or the NASDAQ 100 Index, and target volatility indices.
−Removed: Additionally, the estimated cost of providing GMWB on FIA products incorporates various assumptions about the overall performance of equity markets over certain time periods.
+Added: Additionally, the estimated cost of providing GMWB on indexed annuity products incorporates various assumptions about the overall performance of equity markets over certain time periods.
Periods of significant and sustained downturns in equity markets or increased equity volatility could result in an increase in the valuation of the MRB liabilities and decrease in the valuation of contractholder funds liabilities associated with such products.
19 unchanged sentences
Other market exposures are hedged periodically depending on market conditions and our risk tolerance.
−Removed: The indexed annuity/ IUL hedging strategy economically hedges the equity returns and exposes us to the risk that unhedged market exposures result in divergence between changes in the fair value of the liabilities and the hedging assets.
+Added: The indexed annuity and IUL hedging strategy economically hedges the equity returns and exposes us to the risk that unhedged market exposures result in divergence between changes in the fair value of the liabilities and the hedging
We use a variety of techniques, including direct estimation of market sensitivities, to monitor this risk daily.
We intend to continue to adjust the hedging strategy as market conditions and risk tolerance change.
+Added: Foreign Currency Exchange Rate Risk
+Added: Our fair value exposure to fluctuations in foreign currency exchange rates against the U.S.
+Added: dollar results from our holdings in non-U.S.
+Added: dollar denominated fixed maturity securities and an investment in an unconsolidated affiliate.
+Added: The principal currencies that create foreign currency exchange rate risk in our investment portfolio are the Euro and the British pound.
+Added: We use various derivative instruments to hedge substantially all of our foreign currency exposure such that sensitivity to changes in foreign currencies is minimal.
Sensitivity Analysis
17 unchanged sentences
An increase in the levels of interest rates of 100 basis points, with all other variables held constant, would result in a decrease in the fair value of our fixed maturity securities and certain investments in preferred securities of approximately $3.1 billion, a net decrease in the fair value of interest rate swaps of approximately $0.1 billion and a net decrease in the combined fair value of embedded derivatives and MRBs of approximately $0.8 bil lion at December 31, 2025 .
−Removed: For comparison, a similar increase in the levels of interest rates of 100 basis points, with all other variables held constant, would have resulted in a decrease in the fair value of our fixed maturity securities and certain investments in preferred securities of approximately $2.4 billion, a net decrease in the fair value of interest rate swaps of approximately $0.1 billion and a net decrease in the combined fair value of embedded derivatives and MRBs of approximately $0.5 billion at December 31, 2023.
+Added: For comparison, a similar increase in the levels of interest rates of 100 basis points, with all
+Added: other variables held constant, would have resulted in a decrease in the fair value of our fixed maturity securities and certain investments in preferred securities of approximately $2.6 billion, a net decrease in the fair value of interest rate swaps of approximately $0.1 billion and a net decrease in the combined fair value of embedded derivatives and MRBs of approximately $0.6 billion at December 31, 2024.
A 100 basis point shift in interest rates for our floating rate debt and funding agreements will increase or decrease floating expense by approximatel y $28 million and $17 million per year as of December 31, 2025 and December 31, 2024, respectively .
−Removed: As noted above, the impact to net earnings related to the interest rate swaps and floating rate notes payable and funding agreements will be significantly offset by corresponding changes in investment income associated with our floating rate investments.
+Added: As noted above, the impact to net earnings related to the interest rate swaps, floating rate notes payable and funding agreements will be significantly offset by corresponding changes in investment income associated with our floating rate investments.
The actuarial models used to estimate the impact of a one percentage point change in market interest rates incorporate numerous assumptions, require significant estimates and assume an immediate and parallel change in interest rates without any management of the investment portfolio in reaction to such change.
5 unchanged sentences
At December 31, 2025, a 10% decrease in market prices, with all other variables held constant, would result in a net decrease in the fair value of our equity securities portfolio of $34 million, as compared with a decrease of $42 million at December 31, 2024 .
+Added: Foreign Currency Exchange Rate Risk
+Added: As noted above, we use various derivative instruments to hedge substantially all of our foreign currency exposure such that sensitivity to changes in foreign currencies is minimal.
Credit Risk and Counterparty Risk
34 unchanged sentences
We are exposed to financial and capital markets risk, including changes in interest rates and credit spreads, which can have an adverse effect on our results of operations, financial condition and liquidity.
−Removed: Exposure to such financial and capital markets risk relates primarily to the market price and cash flow variability associated with changes in interest rates.
+Added: Exposure to such financial and capital markets risk relates primarily to the market price and cash flow variability associated with
+Added: changes in interest rates.
A rise in interest rates, in the absence of other countervailing changes, will increase the net unrealized loss position and, if long-term interest rates rise dramatically within a six- to twelve-month time period, certain of our products may be exposed to disintermediation risk.
4 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.