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 9$ (12)$ Effect of investment (gains) losses, net of offsets (4) 21 Effect of change in FIA embedded derivative discount rate, net of offsets 29 15 Effect of change in fair value of reinsurance related embedded derivative, net of offsets 9 (1) Adjusted operating Income - Fidelity & Guaranty Life 43$ 23$ Fiscal Quarter (a) a. For the three months ended March 31, 2016.
