Funding Agreement-Backed Note Program slide image

Funding Agreement-Backed Note Program

1 Preservation of Capital and Ratings Proven Ability to Withstand Stress Scenarios Net realized capital gains/(losses) as a % of BOP invested assets 1.00% 0.09% 0.19% 0.20% 0.00% (0.28%) (1.00%) (0.35%) (2.00%) (0.04%) (0.16%) (0.10%) (0.02%) (0.06%) (0.31%) (0.22%) (0.12%) (0.13%) (0.17%) (0.34%) (0.25%) (0.61%) (1.56%) (2.04%) (3.00%) (4.00%) 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cumulative (2012-2020) 300% Net income as a % of BOP surplus 248% 200% 175% 150% 174% 172% 50% 125% 100% 75% 112% 50% 23% 18% 25% 17% 5% 0% 6% 53% 22% 16% 18% 5% 30% 16% 14% 16% 23% 16% 20% 16% 22% 16% 19% 15% 21% 16% 16% 76% 9% 5% 15% 6% 11% 8% 5% 11% 14% 6% 5% 11% 15% 7% 5% 14% 5% 13% 5% 14% 11% 10% 8% 11% 2% 5% 4% 2012 2013 2014 2015 Guardian 2016 Guardian (ex policy dividends) 2017 2018 2019 2020 Cumulative (2012-2020) â– Industry Industry (ex policy dividends) 8 Guardian Note: Growth in surplus includes issuance of surplus notes in 2014, 2017, and 2020. "Industry" comprises all life insurance underwriters domiciled in the U.S. that file statutory reports with NAIC. Industry data for FY 2021 not released at the time of printing of these materials Source: SNL Financial (2020Q4) 21 21
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