Funding Agreement-Backed Note Program
2 Enterprise Risk Management
Low Enterprise Risk Profile
Guardian Risk Profile
Very low product risk profile
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Participating life insurance
Annual renewal of Group Benefits products
Conservative set of product guarantees
Well managed investment portfolio
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Diversified investments within asset classes
Avoided structured finance securities that were adversely impacted during the credit crisis
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Dynamic hedging program protects capital
Strong focus on asset liability management
Very low liquidity and withdrawal risks
Very strong capital position
Demonstrated willingness and ability to change course if risks dictate; as evidenced by exit from long-term care, medical products, Executive Benefits - COLI, stop
loss and dental support organization business; and restrained Variable Annuity sales (exited from Variable Annuities with Living Benefit riders as of March 31,
2017)
Managing Risks in Evolving Business and Regulatory Environments
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Investments: Proactively reducing credit risk in anticipation of credit cycle turning
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Stress Testing: Enhanced focus and updates to stress scenarios to reflect changing market and economic conditions
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InsurTech: Leveraging new technology, big-data analytics and Al to enhance risk assessment along with risk oversight of product development
Cyber-security: Prioritized governance and strengthened controls over IT and Cyber-Security risks
8 Guardian
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