Risk Factors Update Summary

• Added detailed information on money laundering risks in the insurance industry, including methods used by criminals and potential penalties for non-compliance.
• Highlighted the increased risk of money laundering in countries identified by the U.S. Department of the Treasury as high-risk jurisdictions.
• Emphasized the potential impact of mismanagement of claims handling, fraudulent activities, and unforeseen events on financial condition.
• Detailed the liquidity risk associated with rapid growth in first-year sales leading to increased commission payments, potentially requiring reinsurance or loans to mitigate the strain on capital.
• Expanded on the importance of an anti-money laundering program, including the appointment of an enhanced officer and additional controls beyond sanctions screening.
• Discussed the exposure of insurance policies to catastrophic mortality events, such as pandemics, and the disruptive effect on business operations and financial condition.
• Addressed the regulatory risks related to privacy laws, emphasizing the potential adverse effects of non-compliance on business operations, reputation, and financial results.