18 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
−Removed: 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 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.
27 unchanged sentences
As of December 31, 2025, a 10% increase (decrease) in market prices, with all other variables held constant, would result in an increase (decrease) in the fair value of our equity securities portfolio of $49 million, as compared with an increase (decrease) o f $64 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.
Interest Rate Risk Related to our F&G Segment
7 unchanged sentences
Because we actively manage our investments and liabilities, the net exposure to interest rates can vary over time.
−Removed: However, any such decreases in the fair value of fixed maturity securities, unless related to credit concerns of the issuer requiring allowances for credit losses, would generally be realized only if we were required to sell such securities at losses prior to their maturity to meet liquidity needs.
+Added: However, any such decreases in the fair value of fixed maturity securities, unless related to credit concerns of the issuer requiring allowances for credit losses, would generally be realized only if we were required to sell
+Added: such securities at losses prior to their maturity to meet liquidity needs.
Our liquidity needs are managed using the surrender and withdrawal provisions of the annuity contracts and through other means.
7 unchanged sentences
The duration of the investment portfolio, excluding cash and cash equivalents, derivatives, policy loans, and common stocks as of December 31, 2025, and 2024, is summarized as follows:
−Removed: December 31, 2024
−Removed: Duration (years) Amortized Cost (In millions) % of Total
−Removed: 0-4 $ 29,363 54 %
−Removed: 5-9 12,526 23 %
−Removed: 10-14 10,448 19 %
+Added: December 31, 2025 December 31, 2024
+Added: Duration (years) Amortized Cost (In millions) % of Total Amortized Cost (In millions) % of Total
0-4 $ 32,061 56 % $ 29,363 54 %
−Removed: Total $ 54,232 100 %
−Removed: December 31, 2023
−Removed: Duration (years) Amortized Cost (In millions) % of Total
5-9 12,891 22 % 12,526 23 %
2 unchanged sentences
20-29 69 — % 33 — %
+Added: 30 and over 26 — % — — %
Total $ 57,750 100 % $ 54,232 100 %
3 unchanged sentences
In the past, our exposure to changes in equity prices primarily resulted from our holdings of equity securities.
−Removed: Refer to Note D 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: Refer to Note C 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.
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.
2 unchanged sentences
We are also exposed to equity price risk through certain insurance products.
−Removed: We offer a variety of indexed annuities/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 indexed annuities products incorporates various assumptions about the overall performance of equity markets over certain time periods.
+Added: 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.
+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.
To economically hedge the equity returns on these products, we purchase derivatives to hedge the indexed annuities and IUL equity exposures.
−Removed: The primary way we hedge indexed annuities/IUL equity exposure is to purchase over the counter equity index equity options from broker-dealer derivative counterparties approved by F&G.
−Removed: The second way to hedge indexed annuities/ IUL equity exposure is by purchasing exchange traded equity index futures contracts.
+Added: The primary way we hedge indexed annuities and IUL equity exposure is to purchase over the counter equity index equity options from broker-dealer derivative counterparties approved by F&G.
+Added: The second way to hedge indexed annuities and IUL equity exposure is by purchasing exchange traded equity index futures contracts.
This hedging strategy enables us to reduce the overall hedging costs and achieve a high correlation of returns on the equity options purchased relative to the index credits earned by the indexed annuities/IUL contractholders.
2 unchanged sentences
Future returns, which may be reflected in indexed annuities IUL contracts’ credited rates beyond the current policy term, are not hedged.
−Removed: We attempt to manage the costs of these purchases through the terms of the indexed annuities/IUL contracts, which permit us to change cap, spread or participation rates, subject to certain guaranteed minimums that must be maintained.
+Added: We attempt to manage the costs of these
+Added: purchases through the terms of the indexed annuities/IUL contracts, which permit us to change cap, spread or participation rates, subject to certain guaranteed minimums that must be maintained.
The derivatives are used to fund the indexed annuities/IUL contract index credits and the cost of the equity options purchased is treated as a component of spread earnings.
4 unchanged sentences
To the extent index credits earned by the contractholder exceed the proceeds from option expirations and futures income, we incur a raw hedging loss.
−Removed: See Note F Derivative 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 the derivatives portfolio.
+Added: See Note E Derivative 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 the derivatives portfolio.
Fair value changes associated with these investments are intended to, but do not always, substantially offset the increase or decrease in the amounts added to contractholder funds for indexed products.
−Removed: When index credits to policyholders exceed option proceeds received at expiration related to such credits, any shortfall is funded by our excess of net investment income earned over the sum of interest credited to policyholders and the cost of hedging our risk on indexed product policies and futures
+Added: When index credits to policyholders exceed option proceeds received at expiration related to such credits, any shortfall is funded by our excess of net investment income earned over the sum of interest credited to policyholders and the cost of hedging our risk on indexed product policies and futures income.
For the years ended December 31, 2025 , 2024, and 2023, the annual index credits to policyholders on their anniversaries were $721 million, $725 million, and $203 million, respectively.
4 unchanged sentences
We intend to continue to adjust the hedging strategy as market conditions and risk tolerance change.
+Added: Foreign Currency Exchange Rate Risk
+Added: Our F&G segments 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.
Credit Risk and Counterparty Risk Related to our F&G Segment
15 unchanged sentences
The exposure and credit rating of the counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst different approved counterparties to limit the concentration in one counterparty.
−Removed: This policy allows for the purchase of derivative instruments from counterparties and/or clearinghouses that meet the required qualifications under the insurance laws of Iowa.
+Added: policy allows for the purchase of derivative instruments from counterparties and/or clearinghouses that meet the required qualifications under the insurance laws of Iowa.
We review the ratings of all the counterparties periodically.
Collateral support documents are negotiated to further reduce the exposure when deemed necessary.
−Removed: See Note F Derivative Financial Instruments in the Consolidated Financial Statements included in Part II - Item 8 of this Annual Report on Form 10-K for additional information regarding our exposure to credit loss.
+Added: See Note E Derivative Financial Instruments in the Consolidated Financial Statements included in Part II - Item 8 of this Annual Report on Form 10-K for additional information regarding our exposure to credit loss.
We also have credit risk related to the ability of reinsurance counterparties to honor their obligations to pay the contract amounts under various agreements.
3 unchanged sentences
We are not aware of any material disputes arising from these reviews or other communications with the counterparties as of December 31, 2025, and 2024, that would require an increase to the allowance for credit losses.
−Removed: For information on concentrations of reinsurance risk, refer to Note O F&G Reinsurance in the Consolidated Financial Statements included in Part II - Item 8 of this Annual Report on Form 10-K.
−Removed: For further information on certain risk associated with our business, refer to Note H Commitments and Contingencies in the Consolidated Financial Statements included in Part II - Item 8 of this Annual Report on Form 10-K.
+Added: For information on concentrations of reinsurance risk, refer to Note N F&G Reinsurance in the Consolidated Financial Statements included in Part II - Item 8 of this Annual Report on Form 10-K.
+Added: For further information on certain risk associated with our business, refer to Note G Commitments and Contingencies in the Consolidated Financial Statements included in Part II - Item 8 of this Annual Report on Form 10-K.
Use of Estimates and Assumptions
12 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.