Private & Confidential Reconciliation of Adjusted Operating Income of Fidelity & Guaranty Life to U.S. GAAP Net (Loss) Income (Unaudited) 16 RECONCILIATION OF ADJUSTED OPERATING INCOME OF FIDELITY & GUARANTY LIFE TO U.S. GAAP NET (LOSS) INCOME (UNAUDITED) ($ in Millions) 2016 2015 Reported net income - Fidelity & Guaranty Life 48$ 14$ Effect of investment losses, net of offsets 3$ 2$ Effect of change in FIA embedded derivative discount rate, net of offsets (7)$ 20$ Effect of change in fair value of reinsurance related embedded derivative, net of offsets (13)$ (8)$ Effect of class action litigation reserves, net of offsets -$ (1)$ Adjusted operating Income - Fidelity & Guaranty Life 31$ 27$ Fiscal Quarter (a) a. For the three months ended December 31, 2015.
