Risk Factors Update Summary

• Global equity markets volatility directly impacts equity investments valuation, especially in private equity, with a substantial impact on private equity portfolio performance.
• Global Atlantic may face increased liquidity challenges if required to post additional collateral due to market conditions, potentially impacting financial results.
• Extensive hiring led to challenges in maintaining culture due to rapid employee headcount growth.
• Bermuda enacted a 15% corporate tax for enterprises with revenues over €750 million starting in 2025.
• The company may attempt to mitigate known risks but cannot guarantee success, adding uncertainty.
• Proposed rule by FinCEN could impose additional AML/CFT obligations on investment advisory business.
• Investment vehicles and transactions by our capital markets business may vary significantly in fee income due to variances in size and frequency of fees received. This could impact total management, monitoring, and transaction fees.
• Difficult market conditions may impact investment terms, potentially affecting identification and execution. This could lead to less attractive investment terms.
• Expanded into insurance business by acquiring Global Atlantic, now a wholly owned subsidiary.
• Misconduct risks highlighted, impacting reputation, client retention, legal liability, and regulatory obligations.
• Interest rate changes affect equity valuations, with rising rates increasing cost of capital and negatively impacting valuations.
• Strategic initiatives include new business segment, compensation structure modification, and Total Operating Earnings framework.
• Global Atlantic's ability to invest trust assets may be restricted, affecting investment returns and liquidity.
• U.S. enacted rules restricting China's access to advanced computing chips and semiconductors.
• Changes in laws, trade barriers, and economic uncertainty could materially and adversely affect the company.
• Changes in climate conditions and regulations may increase costs and negatively impact the company.
• Investments may require additional permits, pollution control equipment, and increased costs, potentially reducing profitability.
• The company's financial results may be adversely affected by fluctuations in investment valuations.
• Bermuda CIT may be delayed for certain groups for up to five years.
• A decline in the pace, size, or value of investments by our funds would result in receiving less revenue. The pace and size of investments impact revenue from management and monitoring fees.
• Uncertainty added regarding the implementation of Bermuda tax laws post-2035.
• Changes in tax laws could significantly impact Global Atlantic's financial condition and results of operations.
• The company's liquidity needs and sources could be materially and adversely affected by market conditions.
• Currency fluctuations impact non-U.S. investments, with depreciation decreasing valuations and affecting U.S. dollar equivalent revenues.
• Geopolitical developments and events outside the company's control may materially impact its operations.
• U.S. states enacted restrictions on Chinese investments in 2023, impacting business strategies.
• Real asset investments face risks like labor disputes, natural disasters, and construction risks, leading to unanticipated delays or expenses.
• Block reinsurance transactions in our insurance business are expected to create variability in financial results. This could impact financial performance due to the timing and execution of sales.
• Expect stable recurring revenues from increased ownership in Global Atlantic and new Strategic Holdings segment.
• Increased focus on cybersecurity risks, with new regulations and potential compliance costs.
• Failure to raise additional or successor funds with favorable terms could materially affect revenues or profitability. Inability to raise funds may limit future fundraising and impact financial performance.
• Increased focus on ESG matters by fund investors, regulators, and stakeholders, affecting business operations.
• Natural disasters and public health crises could materially and adversely affect the company's operations.
• Changes in LIBOR to SOFR impact interest rates on credit assets, with potential increased costs and financial condition impact.
• Dependence on third-party service providers for operational support and potential disruptions.
• Expansion into new markets and investment strategies introduces additional risks and uncertainties.
• Introduction of new investment vehicles with different asset mixes and strategies may impact future returns.
• Increased competition for investment opportunities may lead to challenges in future fundraising. Market and economic conditions could affect the ability to raise capital and financial performance.
• Commodity market volatility affects valuations, with declines impacting energy investments and overall portfolio value.
• Real estate market volatility and macroeconomic conditions impact valuations, particularly in office real estate globally.
• Compliance efforts by asset managers raise challenges and costs. Integrating climate risk considerations may result in significant compliance costs and operational risks.
• Use of artificial intelligence poses competitive, operational, legal, and regulatory risks.
• Changes in market conditions and geopolitical events may affect investments and financial performance.
• Valuation methodologies for illiquid investments may result in significant losses or volatility in AUM.
• Leverage risks in investments, including CLOs, may lead to losses and liquidity problems, affecting financial results.
• Growth through acquisitions and strategic initiatives may lead to new business lines and risks.
• Changes in tax laws and regulations could impact financial position and operations. New tax rules may increase tax liabilities and compliance costs, affecting financial performance.