Risk Factors Update Summary

• Increased reserves for unpaid losses and loss adjustment expenses from approximately $13 billion to $16 billion.
• Reduced annual mortgage insurance premium rates by 30bps, impacting most single-family mortgages from 0.85% to 0.55%.
• Implementation of a new corporate income tax regime in Bermuda with a statutory tax rate of 15%.
• Implementation of a global minimum tax of 15% and a proposed tax on base eroding payments.
• Expected increase in effective tax rate and aggregate tax liability due to new tax laws.
• Changes in the ERCF to incentivize CRT transactions and address capital requirements for derivatives, market risk, and multifamily loans.
• Adoption of an "under-taxed profit rule" by certain countries impacting tax compliance complexity.
• Potential impact of future changes to the capital framework on credit risk transfer and the volume of loans purchased.
• Increased risk-capital charges for residential mortgages and potential impact on guarantee fees charged to acquire loans.
• Adoption of the Basel III Endgame approach to mortgage assets, potentially increasing capital treatment and impacting mortgage insurance.