7 Insurance Segment As of December 31, 2015, our Insurance segment only reflects the results of Front Street, our reinsurance business Fidelity & Guaranty Life reported very strong 1st quarter results Insurance segment: —As of December 31, 2015, our investment in FGL has been classified as an asset “held for sale” —FGL’s operations have been classified as discontinued operations FGL business: —Adjusted operating income at FGL increased nearly 15% over 1Q15 —Average assets under management at FGL increased 5.6% to $18.2 billion —FGL’s investment portfolio continues to perform very well, with across-the-board increases: —Average earned yield increased from 1Q15 to 4.87% —Net investment income of $222 million, up 6.7% from 1Q15 —Net investment spreads across all product lines increased 30 basis points from 1Q15 —Average NAIC rating remains approximately 1.5 —FGL’s GAAP book value, excluding AOCI, increased to $1.46 billion
