Private & Confidential
Reconciliation of Adjusted Operating Income of Fidelity & Guaranty Life to
U.S. GAAP Net (Loss) Income (Unaudited)
15
RECONCILIATION OF ADJUSTED OPERATING INCOME OF FIDELITY & GUARANTY LIFE TO U.S. GAAP NET (LOSS) INCOME (UNAUDITED)
($ in Millions) 2016 2015 2016 2015
Reported net income - Fidelity & Guaranty Life 30$ 30$ 97$ 118$
Effect of investment (gains) losses, net of offsets 5 12 9 13
Effect of change in FIA embedded derivative discount rate, net of offsets (7) 35 54 56
Effect of change in fair value of reinsurance related embedded derivative, net of offsets 17 (29) 37 (69)
Effects of class action litigation reserves, net of offsets(1) - - - (1)
Tax impact of adjusting items (5) (6) (35) 1
Adjusted operating Income - Fidelity & Guaranty Life 40$ 42$ 162$ 118$
Fiscal Quarter (a) Fiscal Year (b)
a. For the three months ended September 30, 2016.
b. For the twelve months ended September 30, 2016.
(1) Amount net of offsets related to value of business acquired (“VOBA”) and deferred acquisition cost (“DAC”) amortization
