Risk Factors Update Summary

• A potential downgrade in financial strength or credit ratings may impact our cost of secured or unsecured debt financing.
• Transition to work-from-home increases cybersecurity threats. Vulnerability to cyberattacks may lead to unauthorized access, data breaches, and financial loss.
• Changes in interest rates, credit spreads, and policyholder behavior may adversely affect stable value products.
• Increased reliance on outsourcing for IT and business functions poses operational risks. Disruptions or failures may result in significant costs and interruptions.
• Failure to meet applicable RBC requirements could limit the ability to make dividends or distributions.
• Changes in tax laws, including the Inflation Reduction Act of 2022, could impact taxation, reducing profitability.
• A sustained increase in inflation rate may result in higher nominal market interest rates.
• Regulatory scrutiny and legal actions may negatively affect business operations, profitability, and financial condition.
• A failure to maintain the security of operational systems could harm business operations.
• Changes in accounting standards and distribution relationships could materially affect sales and financial reporting.
• Reinsurance subjects us to credit risk, and a transition from IBORs to alternative rates is complex.
• Failure to meet regulatory standards or compliance requirements may result in penalties, reputational harm, and operational disruptions.
• Changes in accounting standards and potential limitations on the use of deferred tax assets.
• Uncertainty in the application of tax laws, such as the Corporate Alternative Minimum Tax, may lead to increased tax costs and impact financial performance.