Risk Factors.
−Removed: We discuss in this Report, in our 2021 Annual Report and in our other filings with the SEC, various risks that may materially affect our business.
−Removed: In addition, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statements - Cautionary Language” included herein.
−Removed: There have been no material changes to our risk factors from the risk factors previously disclosed in our 2021 Annual Report.
+Added: Below is a change to the risk factors described in Part I, Item 1A.
+Added: “Risk Factors” in our 2021 Annual Report:
+Added: The paragraph labelled, “Changes in U.S.
+Added: federal income or other tax laws or the interpretation of tax laws could affect sales of our products and profitability.” under “Risk Factors – Risks Relating to Legal, Tax and Regulatory Matters” is amended as follows:
+Added: Changes in U.S.
+Added: federal income or other tax laws or the interpretation of tax laws could affect sales of our products and profitability, and our cash flows and statutory capital.
+Added: The annuity products that we market generally provide the customer with certain federal income tax advantages.
+Added: For example, federal income taxation on any increases in non-qualified annuity contract values (i.e., the “inside build-up”) is deferred until it is received by the customer.
+Added: With other savings investments, such as certificates of deposit and taxable bonds, the increase in value is generally taxed each year as it is realized.
+Added: Additionally, life insurance death benefits are generally exempt from income tax.
+Added: From time to time, various tax law changes have been proposed that could have an adverse effect on our business, financial condition, results of operations and cash flows, including the elimination of all or a portion of the income tax advantages described above for annuities and life insurance.
+Added: If legislation were enacted to eliminate the tax deferral for annuities, such a change would have an adverse effect on our ability to sell our annuities.
+Added: Moreover, if the treatment of annuities was changed prospectively, and the tax-favored status of existing contracts was grandfathered, holders of existing contracts would be less likely to surrender or rollover their contracts, which could also adversely affect our business.
+Added: The recently enacted Inflation Reduction Act of 2022 (“IRA”) establishes a new 15 percent corporate alternative minimum tax (“AMT”) on corporations that have an average adjusted financial statement income in excess of $1 billion over a three-year period and is effective January 1, 2023.
+Added: The implementation of the AMT contemplates that the U.S.
+Added: Department of Treasury issues final regulatory guidance, which is expected throughout 2023.
+Added: It remains difficult to predict whether the final guidance will provide further definition of adjusted financial statement income.
+Added: In the absence of further guidance, we may be required to pay tax equal to 15 percent of our pre-tax financial statement income, as adjusted by the AMT, which includes certain items that are non-economic and can fluctuate significantly based on the movement of interest rates and equity markets.
+Added: This may have a material adverse impact on our cash flows and statutory capital position.
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.