1 unchanged sentence
In the normal course of business, we are routinely subject to a variety of risks, as described in Item 1A.
−Removed: Risk Factors of this Annual Report and in our other filings with the Securities and Exchange Commission.
+Added: Risk Factors of this Annual Report and in our other filings with the SEC.
For example, we are exposed to the risk that decreased real estate activity, which depends in part on the level of interest rates, may reduce our revenues.
2 unchanged sentences
We regularly assess these market risks and have established policies and business practices designed to protect against the adverse effects of these exposures.
−Removed: At December 31, 2021, we had $3,096 million in long-term debt, none of which bears interest at a floating rate.
+Added: At December 31, 2022, we had $3,238 million in long-term debt, none of which bears interest at a floating rate, other than the F&G Credit Facility.
Accordingly, fluctuations in market interest rates will not have a material impact on our resulting interest expense.
9 unchanged sentences
Market prices are subject to fluctuation and, consequently, the amount realized in the subsequent sale of an investment may significantly differ from the reported market value.
−Removed: Fluctuation in the market price 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.
+Added: Fluctuation in the market price of a security may result from perceived changes in the underlying economic characteristics of the investee, the
+Added: relative price of alternative investments and general market conditions.
Furthermore, amounts realized in the sale of a particular security may be affected by the relative quantity of the security being sold.
7 unchanged sentences
The changes in fair values for interest rate risks are determined by estimating the present value of future cash flows using various models, primarily duration modeling.
−Removed: The changes in fair
−Removed: values for equity price risk are determined by comparing the market price of investments against their reported values as of the balance sheet date.
+Added: The changes in fair values for equity price risk are determined by comparing the market price of investments against their reported values as of the balance sheet date.
Information provided by the sensitivity analysis does not necessarily represent the actual changes in fair value that we would incur under normal market conditions because, due to practical limitations, all variables other than the specific market risk factor are held constant.
38 unchanged sentences
When the durations of assets and liabilities are similar, exposure to interest rate risk is minimized because a change in the value of assets could be expected to be largely offset by a change in the value of liabilities.
−Removed: The duration of the investment portfolio, excluding cash and cash equivalents, derivatives, policy loans, and common stocks as of December 31, 2021, is summarized as follows:
−Removed: (Dollars in millions)
+Added: The duration of the investment portfolio, excluding cash and cash equivalents, derivatives, policy loans, and common stocks as of December 31, 2022 and 2021 is summarized as follows:
+Added: (Dollars in millions) December 31, 2022
Duration (years) Amortized Cost % of Total
3 unchanged sentences
15-19 2,515 5 %
+Added: Total $ 47,335 100 %
+Added: (Dollars in millions) December 31, 2021
+Added: Duration (years) Amortized Cost % of Total
0-4 $ 17,765 48 %
+Added: 5-9 8,414 23 %
+Added: 10-14 5,619 15 %
+Added: 15-19 4,474 12 %
+Added: 20-30 883 2 %
Total $ 37,155 100 %
15 unchanged sentences
While the FIA/ IUL hedging program does not explicitly hedge GAAP income volatility, the FIA/ IUL hedging program tends to mitigate a significant portion of the GAAP reserve changes associated with movements in the equity market.
−Removed: This is due to the fact that a key component in the calculation of GAAP reserves is the market valuation of
−Removed: the current term embedded derivative.
+Added: This is due to the fact that a key component in the calculation of GAAP reserves is the market valuation of the current term embedded derivative.
Due to the alignment of the embedded derivative reserve component with hedging of this same embedded derivative, there should be a reasonable match between changes in this component of the reserve and changes in the assets backing this component of the reserve.
4 unchanged sentences
When index credits to policyholders exceed option proceeds received at expiration related to such credits, any shortfall is funded by F&G's net investment spread earnings and futures income.
−Removed: See "Non-GAAP Financial Measures" for further information.
−Removed: For the year ended December 31, 2021 and the seven months ended December 31, 2020, the annual index credits to policyholders on their anniversaries were $628 million and $178 million, respectively.
+Added: For the years ended December 31, 2022 and 2021, the annual index credits to policyholders on their anniversaries were $155 million and $628 million, respectively.
Proceeds received at expiration on options related to such credits were $158 million and $702 million, respectively.
28 unchanged sentences
When exceptions are made to that principle, F&G ensures that collateral is obtained to mitigate risk of loss.
−Removed: The following table presents F&G's reinsurance recoverable balances and financial strength ratings for our five largest reinsurance recoverable balances as of December 31, 2021:
+Added: The following table presents F&G's reinsurance recoverable balances and financial strength ratings for our five largest reinsurance recoverable balances as of December 31, 2022 and 2021:
+Added: December 31, 2022
(Dollars in millions) Financial Strength Rating
Parent Company/Principal Reinsurers Reinsurance Recoverable AM Best S&P Fitch Moody's
−Removed: Wilton Reinsurance Company $1,269 A+ not rated A+ not rated
−Removed: Aspida Re 873 A- not rated BBB not rated
+Added: Aspida $ 3,121 A- Not Rated Not Rated Not Rated
+Added: Wilton Reassurance Company 1,231 A+ Not Rated A Not Rated
Somerset 570 A- BBB+ Not Rated Not Rated
−Removed: Security Life of Denver Insurance Company 102 not rated A- A- Baa1
London Life 100 A+ Not Rated Not Rated Not Rated
+Added: Security Life of Denver Insurance Company 93 Not Rated A- A- Baa1
+Added: December 31, 2021
+Added: (Dollars in millions) Financial Strength Rating
+Added: Parent Company/Principal Reinsurers Reinsurance Recoverable AM Best S&P Fitch Moody's
+Added: Wilton Re $ 1,269 A+ Not Rated A+ Not Rated
+Added: Aspida Life Re Ltd 873 A- Not Rated BBB Not Rated
+Added: Somerset Reinsurance Ltd 780 A- BBB+ Not Rated Not Rated
+Added: Security Life of Denver 102 Not Rated A- A- Baa1
+Added: London Life Reinsurance Co.
+Added: 102 A+ Not Rated Not Rated Not Rated
In the normal course of business, certain reinsurance recoverables are subject to reviews by the reinsurers.
We are not aware of any material disputes arising from these reviews or other communications with the counterparties as of December 31, 2022 that would require an allowance for uncollectible amounts.
−Removed: For information on concentrations of reinsurance risk, refer to Note O Reinsurance in the Consolidated Financial Statements included in Item 8 of Part II of this Annual Report .
+Added: For information on concentrations of reinsurance risk, refer to Note O F&G Reinsurance in the Consolidated Financial Statements included in Item 8 of Part II of this Annual Report .
For information on counter party risk associated with our title business, refer to Note H Commitments and Contingencies in the Consolidated Financial Statements included in Item 8 of Part II of this Annual Report .
Use of Estimates and Assumptions
−Removed: The preparation of our Consolidated Financial Statements included in Item 8 of Part II of this Annual Report in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
+Added: The preparation of our Consolidated Financial Statements included in Item 8 of Part II of this Annual Report in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
+Added: liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates and assumptions used.
Concentrations of Financial Instruments Related to our F&G Segment
−Removed: As of December 31, 2021, our F&G segment’s most significant investment in one industry, excluding United States ("U.S.") and Foreign Government securities, was its investment securities in the Banking industry with a fair value of $2,919 million or 8% of the invested assets portfolio and an amortized cost of $2,854 million.
+Added: As of December 31, 2022, our F&G segment’s most significant investment in one industry, excluding United States, Foreign Government securities and structured securities, was its investment securities in the Banking industry with a fair value of $2,855 million or 7% of the invested assets portfolio and an amortized cost of $3,301 million.
As of December 31, 2022, F&G’s holdings in this industry include investments in 132 different issuers with the top ten investments accounting for 37% of the total holdings in this industry.
11 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.