28 unchanged sentences
A higher equity market return over a given period will credit more interest to the account value of those annuities, though the final amounts credited are generally capped at specified maximum possible crediting rates.
−Removed: We also offer an optional lifetime withdrawal guarantee benefit on our fixed index annuities, which allows contract holders to withdraw a specified amount each year until death, or until the contract holder’s account value is exhausted.
+Added: We also offer both embedded and optional lifetime withdrawals guarantee benefits on our fixed index annuities, which allows contract holders to withdraw a specified amount each year until death, or until the contract holder’s account value is exhausted.
Business – “Our Product Offerings by Segment – Retail Annuities” for additional information about fixed index annuity guaranteed living benefit riders.
20 unchanged sentences
For example, the GMWB offered on the RILA includes a provision that steps up the benefit base if the account value exceeds the benefit base upon contract anniversary.
−Removed: Therefore, if equity markets increase over the short-term but return to lower levels in the longer-term, those step-up provisions could increase the benefit base relative to the account value, resulting in additional benefit payments paid by us compared to a scenario where equity markets had remained flat over time.
+Added: Therefore, if equity markets increase over the short-term but return to lower levels in the longer-term, those step-up provisions could increase the benefit base relative to the account value, resulting in additional benefit payments paid by us compared to a scenario where equity markets remained flat over time.
The fees attributable to these guaranteed benefits are calculated based on the benefit base, so the scenario in which equity markets increase and then later decrease will also result in relatively higher fee income.
+Added: Credit Spreads
+Added: Our market risk exposure to changes in credit spreads principally arises from fluctuations in the fair market value of assets with sensitivity to credit risk, in addition to certain liabilities whose discount rates are sensitive to credit spreads.
Part II | Item 7A.
3 unchanged sentences
Our risk function provides risk oversight and challenge, and our Internal Audit team provides independent assurance.
−Removed: Our enterprise risk management framework contemplates a wide range of market risks and focuses on exposures and risk limits on a consolidated basis for the Company.
+Added: Our enterprise risk management framework contemplates a wide range of market risks and focuses on exposures and risk limits.
A description of our Enterprise Risk Management Framework is provided in “Item 1.
22 unchanged sentences
protecting against the economic impact of adverse market conditions, protecting our statutory capital, and stabilizing our statutory distributable earnings throughout market cycles.
−Removed: Our core dynamic hedging program seeks to offset changes in economic liability associated with variable, registered index-linked, and fixed index annuity guaranteed benefits and index-linked interest crediting due to equity market movements, while our macro hedging program seeks to manage capital and liquidity risk.
+Added: Our core dynamic hedging program seeks to offset impacts of equity market and interest rate movements on the economic liabilities associated with variable annuity guaranteed benefits and with annuities subject to index interest crediting (RILA and FIA), while our macro hedging program seeks to provide additional liquidity and statutory capital protection as needed.
Our hedging strategy manages equity and interest rate risk within risk tolerances through a mix of equity and interest rate derivatives and fixed income assets.
43 unchanged sentences
Based on the fair values of the financial instruments and our analysis of the impacts of the measured changes in market rates and prices, we have determined that our interest rate and equity market exposures are material.
−Removed: The table below provides detail regarding the potential change in estimated fair value of our debt securities in addition to our variable annuity, fixed index and RILA market risk benefits and embedded derivatives due to a 50 basis point parallel increase and decrease in the yield curve by type of asset or liability (in millions):
+Added: The table below provides detail regarding the potential change in estimated fair value of our debt securities in addition to our variable annuity, fixed index and RILA market risk benefits and embedded derivatives, net of reinsurance, due to a 100 basis point parallel increase and decrease in the yield curve by type of asset or liability (in millions):
December 31, 2025 December 31, 2024
10 unchanged sentences
Fixed index and RILA embedded derivatives $ 6,216 $ (367) $ 407 $ 3,174 $ (221) $ 234
−Removed: Market risk benefits (4,939) (1,728) 2,001 (1,136) (2,213) 2,470
+Added: Market risk benefit - net (asset) liability (4,238) (2,980) 3,892 (4,939) (3,206) 4,258
Part II | Item 7A.
3 unchanged sentences
As a result, the degree of sensitivity between the present values of projected fees as compared to the present values of projected benefit payments may result in disproportionate sensitivity impacts relative to the market risk benefits fair value.
−Removed: The table below provides additional detail regarding the potential change in estimated fair value of our equity investment portfolio in addition to our variable annuity, fixed index and RILA market risk benefits and embedded derivatives due to a 10% increase and decrease in equity market prices by type of asset or liability (in millions):
+Added: The table below provides additional detail regarding the potential change in estimated fair value of our equity investment portfolio in addition to our variable annuity, fixed index and RILA market risk benefits and embedded derivatives, net of reinsurance, due to a 10% increase and decrease in equity market prices by type of asset or liability (in millions):
December 31, 2025 December 31, 2024
8 unchanged sentences
Fixed index and RILA embedded derivatives $ 6,216 $ 1,321 $ (1,594) $ 3,174 $ 4 $ (10)
−Removed: Market risk benefits (4,939) (1,722) 2,187 (1,136) (2,048) 2,587
+Added: Market risk benefit - net (asset) liability (4,238) (1,574) 2,008 (4,939) (1,722) 2,187
The fair value of our market risk benefits reflect our contract holders’ exposure to equity market declines.
−Removed: When equity markets increase, this exposure and the related fair value declines.
+Added: When equity markets increase, this exposure and the related fair value decline.
Part II | Item 7A.
7 unchanged sentences
Swaps $ 3,864 4.88 $ 107 $ 19 $ (118)
−Removed: Bond Forwards 609 0.87 (51) (21) 59
Interest Rate Futures 21,874 0.25 (1,414) — 1,700
+Added: Bond Forwards 8,143 0.85 (1,249) 83 1,489
Total $ (2,556) $ 102 $ 3,071
1 unchanged sentence
Swaps $ 7,703 4.70 $ (128) $ (204) $ 133
−Removed: Swaptions 23,500 0.36 (612) (752) 885
Interest Rate Futures 20,592 0.25 (2,603) — 3,154
+Added: Bond Forwards 609 0.87 (99) (21) 123
Total $ (2,830) $ (225) $ 3,410
14 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.