Toggle SGML Header (+)


Section 1: 8-K/A (8-K/A)

Document




 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 8-K

 
CURRENT REPORT

Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): March 15, 2018


FGL HOLDINGS
(Exact name of registrant as specified in its charter)


 
 
 
 
 
 
Cayman Islands
 
001-37779
 
98-1354810
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
 
 
 
Sterling House
16 Wesley Street
Hamilton HM CX, Bermuda

 
 
(Address of principal executive offices)
 
(Zip Code)
 
Registrant's telephone number, including area code: (800) 445-6758
Former name or former address, if changed since last report.


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
     
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))







Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company o
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Explanatory Note
This Current Report on Form 8-K/A amends the Current Report on Form 8-K filed by FGL Holdings (the “Company”) on February 28, 2018 (the “Prior Form 8-K”), to correct certain information furnished in the Prior Form 8-K. Except as set forth herein, this Amendment does not modify or update any other disclosure contained in the Prior Form 8-K or exhibits thereto.
Item 2.02.
Results of Operations and Financial Condition.
 
The following information, including the Exhibit referenced in this Item 2.02, is being furnished pursuant to this Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On February 28, 2018, the Company furnished a financial supplement relating to its results of operations for the quarter ended December 31, 2017. An updated financial supplement is being furnished hereunder as Exhibit 99.2 to correct certain information under the column titled “One Month Ended December 31, 2017” in the table titled “Consolidated Financial Highlights,” the column titled “December 31, 2017” in the table titled “Condensed Consolidated Balance Sheets” and the column titled “December 31, 2017” in the table titled “Capitalization/Book Value per Share.” This newly furnished financial supplement replaces the financial supplement previously furnished under Item 2.02 as Exhibit 99.2 to the Prior Form 8-K. For ease of reference, the items corrected in each table include the following:
Under the “Consolidated Financial Highlights” table, items titled “Total equity,” “Total equity excluding Accumulated Other Comprehensive Income (AOCI),” “GAAP Book value per common share,” “GAAP Book value per common share excluding AOCI” and “Debt to total Capitalization excluding AOCI”;
Under the “Condensed Consolidated Balance Sheets” table, items titled “Reinsurance recoverable,” “Intangibles, net,” “Deferred tax assets, net,” “Goodwill,” “Other assets,” “Other liabilities,” “Total liabilities,” “Additional paid-in capital” and “Total shareholders’ equity”; and
Under the “Capitalization/Book Value per Share” table, items titled “Total debt,” “Total shareholders’ equity,” “Total capitalization,” “Total capitalization excluding AOCI,” “Common shareholders’ equity,” “Total common shareholders’ equity excluding AOCI,” “GAAP Book value per common share including AOCI,” “GAAP Book value per common share excluding AOCI” and “Long-term debt/Total capitalization excluding AOCI.”

Item 9.01
Financial Statements and Exhibits.
 
(d) Exhibits
 
 
 
 
 
Exhibit
No.
  
 
Description
 
 
99.2
 

 





 

 
 

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
FIDELITY & GUARANTY LIFE
 
 
 
 
 
 
/s/ Eric L. Marhoun
 
 
Eric L. Marhoun
 
 
General Counsel and Secretary
 
 
 
 
Dated: March 15, 2018


(Back To Top)

Section 2: EX-99.2 (EXHIBIT 99.2)

Exhibit
Exhibit 99.2

392621289_fglletterhead.jpg

Investor Supplement
Period from December 1 to December 31, 2017
(Year Ended December 31)

The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company's periodic reports on Form 10-K, Form 10-Q and Form 8-K.

Fidelity & Guaranty Life (“FGL”; NYSE: FGL), a former majority owned subsidiary of HRG Group, Inc. (“HRG”; NYSE: HRG), completed the merger with CF Corporation (NASDAQ: CFCO) (“CF Corp”) and its related entities (“CF Entities”), on November 30, 2017. As a result of the Business Combination completed November 30, 2017, CF Corp changed their name to FGL Holdings (NYSE: FG). For accounting purposes, FGL Holdings was determined to be the acquirer and FGL was deemed the acquired party and accounting predecessor. In addition, on November 30, 2017 CF Corp acquired all of the issued and outstanding shares of Front Street Re (Cayman) Ltd. and Front Street Re. Ltd (collectively "FSR Companies"). Our financial statement presentation includes the financial statements of FGL and its subsidiaries as “Predecessor” for the periods prior to the completion of the Business Combination and FGL Holdings, including the consolidation of FGL and its subsidiaries and FSR Companies, as "Successor" for periods from and after the Closing Date. Our Consolidated Financial Statements are presented: (i) unaudited as of December 31, 2017 and for the period December 1, 2017 to December 31, 2017 (Successor); (ii) unaudited for the period October 1, 2017 to November 30, 2017 (Predecessor); (iii) for the unaudited period October 1, 2016 to December 31, 2016 (Predecessor); and (iv) as of September 30, 2017 and 2016, and for each of the years in the three year period ended September 30, 2017 (Predecessor).

Non-GAAP Financial Measures

This document contains certain non-GAAP financial measures commonly used in our industry that, together with the relevant GAAP measures, may enhance a user’s ability to analyze the Company's operating performance and capital position for the periods presented. These measures should be considered supplementary to our results in accordance with GAAP and should not be viewed as a substitute for the GAAP measures. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP financial measures to those of other companies.





FGL HOLDINGS
Financial Supplement
December 31, 2017
(All periods are unaudited)
 
Page
 
Consolidated Financial Highlights
Condensed Consolidated Balance Sheets
Quarterly Summary - Most Recent 5 Quarters
Non-GAAP Definitions
Summary of Adjustments to Arrive at AOI
Notable items Included in Net Income and AOI
 
Capitalization/Book Value per Share
Net Investment Spread Results
Sales Results by Product
 
 
B. Product Summary
 
 
 
C. Investment Summary
 
 
 
D. Counterparty Risk
 
 
 
 
 


FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)


FGL HOLDINGS
Consolidated Financial Highlights

 
One Month Ended
 
 
Two Months Ended
 
Three Months Ended
 
December 31,
2017
 
 
November 30,
2017
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Dollars in millions, except per share data)
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
$
3

 
 
$
7

 
$
16

 
$
12

 
$
3

 
$
11

Net investment income
92

 
 
174

 
261

 
257

 
247

 
240

Net investment gains (losses)
42

 
 
146

 
117

 
67

 
81

 
51

Insurance and investment product fees and other
28

 
 
35

 
41

 
44

 
44

 
38

Total revenues
165

 
 
362

 
435

 
380

 
375

 
340

 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(102
)
 
 
$
28

 
$
61

 
$
32

 
$
22

 
$
108

Adjusted Operating Income ("AOI") (1)
$
3

 
 
$
36

 
$
63

 
$
37

 
$
36

 
$
41

Dividends on preferred stock
(2
)
 
 

 

 

 

 

AOI available to common shareholders
1

 
 
36

 
63

 
37

 
36

 
41

 
 
 
 
 
 
 
 
 
 
 
 
 
Per Unrestricted Common Shares Amounts:
 
 
 
 
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income available to common shareholders
$
(0.49
)
 
 
$
0.48

 
$
1.06

 
$
0.54

 
$
0.38

 
$
1.85

AOI available to common shareholders (1)
$

 
 
$
0.62

 
$
1.08

 
$
0.63

 
$
0.62

 
$
0.70

Diluted:
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income available to common shareholders
$
(0.49
)
 
 
$
0.47

 
$
1.06

 
$
0.54

 
$
0.38

 
$
1.85

AOI available to common shareholders (1)
$

 
 
$
0.62

 
$
1.08

 
$
0.63

 
$
0.62

 
$
0.70

 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends Paid to Common Shareholders Per Share
$

 
 
$
0.065

 
$
0.065

 
$
0.065

 
$
0.065

 
$
0.065

 
 
 
 
 
 
 
 
 
 
 
 
 
At Period End
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,215

 
 
$
924

 
$
885

 
$
799

 
$
887

 
$
632

Total investments
$
23,604

 
 
$
23,326

 
$
23,072

 
$
22,627

 
$
21,813

 
$
21,076

Total assets
$
29,929

 
 
$
29,227

 
$
28,965

 
$
28,402

 
$
27,897

 
$
26,952

Contractholder funds
$
21,844

 
 
$
21,083

 
$
20,792

 
$
20,342

 
$
20,052

 
$
19,486

Future policy benefits
$
4,751

 
 
$
3,401

 
$
3,412

 
$
3,423

 
$
3,435

 
$
3,453

Debt (including revolving credit facility)
$
412

 
 
$
405

 
$
405

 
$
405

 
$
405

 
$
400

Total equity
$
1,952

 
 
$
2,284

 
$
2,247

 
$
2,113

 
$
1,908

 
$
1,752

Total equity excluding Accumulated Other Comprehensive Income (AOCI)
$
1,877

 
 
$
1,729

 
$
1,704

 
$
1,646

 
$
1,617

 
$
1,599

Common shares issued and outstanding
214.37

 
 
59.00

 
58.93

 
58.99

 
58.99

 
58.98

 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Book value per common share (1)
$
7.35

 
 
$
38.71

 
$
38.13

 
$
35.82

 
$
32.34

 
$
29.70

GAAP Book value per common share excluding AOCI (1)
$
7.00

 
 
$
29.31

 
$
28.92

 
$
27.90

 
$
27.41

 
$
27.11

Debt to total Capitalization excluding AOCI (1)
18.0
%
 
 
19.0
%
 
19.2
%
 
19.7
%
 
20.0
%
 
20.0
%
Return on average common shareholders' equity excluding AOCI (1)
N/M

 
 
6.5
%
 
14.6
%
 
7.8
%
 
5.5
%
 
27.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 

3

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Month Ended
 
 
Two Months Ended
 
Three Months Ended
 
December 31,
2017
 
 
November 30,
2017
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Statutory Book value per share
$
4.26

 
 
$
25.91

 
$
25.91

 
$
25.18

 
$
26.06

 
$
22.43

Statutory Book value per share excluding IMR and AVR
$
6.92

 
 
$
34.99

 
$
34.99

 
$
34.30

 
$
35.28

 
$
32.18

(1) Refer to "Non-GAAP Financial Measures" for further details
N/M - Not meaningful

4

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

FGL HOLDINGS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
 
December 31,
2017
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
ASSETS
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities, available-for-sale, at fair value (amortized cost: December 31, 2017 - $21,475; September 30, 2017 - $20,063; September 30, 2016 - $18,521)
$
21,590

 
 
$
21,154

 
$
20,766

 
$
20,052

 
$
19,437

Equity securities, available-for-sale, at fair value (amortized cost: December 31, 2017 - $764; September 30, 2017 - $733; September 30, 2016 - $640)
761

 
 
773

 
774

 
712

 
696

Derivative investments
492

 
 
413

 
361

 
351

 
314

Short term investments
25

 
 

 

 

 

Commercial mortgage loans
548

 
 
547

 
550

 
579

 
582

Other invested assets
188

 
 
185

 
176

 
119

 
47

Total investments
23,604

 
 
23,072

 
22,627

 
21,813

 
21,076

Related party loans

 
 
71

 
71

 
71

 
71

Cash and cash equivalents
1,215

 
 
885

 
799

 
887

 
632

Accrued investment income
211

 
 
231

 
204

 
225

 
201

Funds withheld for reinsurance receivables at fair value
756

 
 

 

 

 

Reinsurance recoverable
2,494

 
 
3,375

 
3,390

 
3,426

 
3,444

Intangibles, net
856

 
 
1,129

 
1,097

 
1,184

 
1,228

Deferred tax assets, net
176

 
 

 

 
87

 
68

Goodwill
476

 
 

 

 

 

Other assets
141

 
 
202

 
214

 
204

 
232

Total assets
$
29,929

 
 
$
28,965

 
$
28,402

 
$
27,897

 
$
26,952

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY

 
 
 
 
 
 
 
 
 
Contractholder funds
$
21,844

 
 
$
20,792

 
$
20,342

 
$
20,052

 
$
19,486

Future policy benefits, including $728 at fair value at December 31, 2017
4,751

 
 
3,412

 
3,423

 
3,435

 
3,453

Funds withheld for reinsurance liabilities
2

 
 
1,083

 
1,106

 
1,134

 
1,142

Liability for policy and contract claims
78

 
 
67

 
57

 
60

 
53

Debt
307

 
 
300

 
300

 
300

 
300

Revolving credit facility
105

 
 
105

 
105

 
105

 
100

Deferred tax liability, net

 
 
62

 
11

 

 

Other liabilities
890

 
 
897

 
945

 
903

 
666

Total liabilities
27,977

 
 
26,718

 
26,289

 
25,989

 
25,200

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

5

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

 
December 31,
2017
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity:

 
 
 
 
 
 
 
 
 
Preferred stock ($.0001 par value, 100,000,000 shares authorized, 375,000 shares issued and outstanding at December 31, 2017; $.01 par value, 50,000,000 shares authorized, no shares issued at September 30, 2017 and September 30, 2016, respectively)

 
 

 

 

 

Common stock ($.0001 par value, 800,000,000 shares authorized, 214,370,000 issued and outstanding at December 31, 2017; $.01 par value, 500,000,000 shares authorized, 58,933,415 and 58,956,127 issued and outstanding at September 30, 2017 and September 30, 2016, respectively)

 
 
1

 
1

 
1

 
1

Additional paid-in capital
2,037

 
 
716

 
716

 
715

 
715

Retained earnings (Accumulated deficit)
(160
)
 
 
1,000

 
942

 
914

 
896

Accumulated other comprehensive income
75

 
 
543

 
467

 
291

 
153

Treasury stock, at cost (no shares at December 31, 2017; 568,847 shares at September 30, 2017; 537,613 shares at September 30, 2016)

 
 
(13
)
 
(13
)
 
(13
)
 
(13
)
Total shareholders' equity
1,952

 
 
2,247

 
2,113

 
1,908

 
1,752

Total liabilities and shareholders' equity
$
29,929

 
 
$
28,965

 
$
28,402

 
$
27,897

 
$
26,952

 
 
 
 
 
 
 
 
 
 
 
Equity attributable to preferred shareholders (1)
$
377

 
 
$

 
$

 
$

 
$

(1) Refer to "Non-GAAP Financial Measures" for further details


6

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

Quarterly Summary - Most Recent 5 Quarters
 
One Month Ended
 
 
Two Months Ended
 
Three Months Ended
 
December 31,
2017
 
 
November 30,
2017
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Dollars in millions, except per share data)
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional life insurance premiums
$
3

 
 
$
6

 
$
10

 
$
7

 
$

 
$
10

Life contingent immediate annuity

 
 
1

 
6

 
5

 
3

 
1

Net investment income
92

 
 
174

 
261

 
257

 
247

 
240

Net investment gains (losses)
42

 
 
146

 
117

 
67

 
81

 
51

Surrender charges
3

 
 
10

 
9

 
9

 
9

 
7

Cost of insurance fees and other income
25

 
 
25

 
32

 
35

 
35

 
31

Total revenues
165

 
 
362

 
435

 
380

 
375

 
340

Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional life insurance policy benefits and change in future policy benefits
7

 
 
12

 
18

 
21

 
11

 
22

Life contingent immediate annuity benefits and changes in future policy benefits
11

 
 
13

 
26

 
20

 
18

 
18

Interest sensitive and index product benefits and changes in future policy benefits
123

 
 
202

 
276

 
194

 
239

 
(20
)
General expenses
11

 
 
47

 
30

 
35

 
30

 
25

Acquisition expenses
27

 
 
44

 
65

 
72

 
81

 
92

Deferred acquisition costs ("DAC")
(22
)
 
 
(40
)
 
(59
)
 
(67
)
 
(78
)
 
(89
)
Amortization of intangibles
1

 
 
36

 
(14
)
 
51

 
33

 
123

        Total benefits and expenses
158

 
 
314

 
342

 
326

 
334

 
171

Operating income
7

 
 
48

 
93

 
54

 
41

 
169

Interest expense
(2
)
 
 
(4
)
 
(6
)
 
(6
)
 
(6
)
 
(6
)
Income before income taxes
5

 
 
44

 
87

 
48

 
35

 
163

Income tax expense
(107
)
 
 
(16
)
 
(26
)
 
(16
)
 
(13
)
 
(55
)
Net (loss) income
$
(102
)
 
 
$
28

 
$
61

 
$
32

 
$
22

 
$
108

Less Preferred stock dividend
2

 
 

 

 

 

 

Net (loss) income available to common shareholders
(104
)
 
 
28

 
61

 
32

 
22

 
108

 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income available to common shareholders per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
(0.49
)
 
 
$
0.48

 
$
1.06

 
$
0.54

 
$
0.38

 
$
1.85

Diluted
$
(0.49
)
 
 
$
0.47

 
$
1.06

 
$
0.54

 
$
0.38

 
$
1.85

Weighted average common shares used in computing net income per common share:
 
 
 
 
 
 
 
 
 
 
 
 
Basic
214.37

 
 
$
58.34

 
58.34

 
58.34

 
58.33

 
58.28

Diluted
214.37

 
 
$
58.49

 
58.48

 
58.44

 
58.38

 
58.37



7

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)


Reconciliation from Net (Loss) Income to Adjusted Operating Income ("AOI ")

 
One Month Ended
 
 
Two Months Ended
 
Three Months Ended
 
December 31, 2017
 
 
November 30, 2017
 
September 30, 2017
 
June 30, 2017
 
March 31, 2017
 
December 31, 2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Dollars in millions, except per share data)
Net (loss) income
$
(102
)
 
 
$
28

 
$
61

 
$
32

 
$
22

 
$
108

Adjustments to arrive at AOI:
 
 
 
 
 
 
 
 
 
 
 
 
Effect of investment (gains) losses, net of offsets (a)

 
 
(6
)
 
(5
)
 
4

 
15

 
(1
)
Effect of change in FIA embedded derivative discount rate, net of offsets (a)
6

 
 
(10
)
 
3

 
(4
)
 
(2
)
 
(92
)
Effect of change in fair value of reinsurance related embedded derivative, net of offsets (a)

 
 
(1
)
 
5

 
8

 
8

 
(10
)
Effect of integration, merger related & other non-operating items (b)
(8
)
 
 
29

 

 

 

 

Net impact of Tax Cuts and Jobs Act
131

 
 

 

 

 

 

Effects of tax impact of affiliated reinsurance embedded derivative
(20
)
 
 

 

 

 

 

Tax impact of adjusting items
(4
)
 
 
(4
)
 
(1
)
 
(3
)
 
(7
)
 
36

AOI
$
3

 
 
$
36

 
$
63

 
$
37

 
$
36

 
$
41

Dividends on preferred stock
(2
)
 
 

 

 

 

 

AOI available to common shareholders (1)
$
1

 
 
$
36

 
$
63

 
$
37

 
$
36

 
$
41

 
 
 
 
 
 
 
 
 
 
 
 
 
Per diluted common share:
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income available to common shareholders
$
(0.49
)
 
 
$
0.47

 
$
1.06

 
$
0.54

 
$
0.38

 
$
1.85

Adjustments to arrive at AOI:
 
 
 
 
 
 
 
 
 
 
 
 
Effect of investment (gains) losses, net of offsets (a)

 
 
(0.10
)
 
(0.09
)
 
0.07

 
0.26

 
(0.02
)
Effect of change in FIA embedded derivative discount rate, net of offsets (a)
0.03

 
 
(0.17
)
 
0.05

 
(0.07
)
 
(0.04
)
 
(1.58
)
Effect of change in fair value of reinsurance related embedded derivative, net of offsets (a)

 
 
(0.02
)
 
0.09

 
0.14

 
0.14

 
(0.17
)
Effect of integration, merger related & other non-operating items (b)
(0.04
)
 
 
0.50

 

 

 

 

Net impact of Tax Cuts and Jobs Act
0.61

 
 

 

 

 

 

Effects of tax impact of affiliated reinsurance embedded derivative
(0.09
)
 
 

 

 

 

 

Tax impact of adjusting items
(0.02
)
 
 
(0.06
)
 
(0.02
)
 
(0.05
)
 
(0.12
)
 
0.62

AOI available to common shareholders per diluted share
$

 
 
$
0.62

 
$
1.09

 
$
0.63

 
$
0.62

 
$
0.70

(a) Amounts are net of offsets related to value of business acquired ("VOBA") and deferred acquisition cost ("DAC") amortization.
(b) Other non-operating items' for the one month ended December 31, 2017 consists of the effect of a $12 contract termination fee received


8

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)


NON-GAAP FINANCIAL MEASURES : Successor

While management believes that non-GAAP measurements are useful supplemental information, such adjusted results are not intended to replace GAAP financial results and should be read in conjunction with those GAAP results.
AOI
AOI is a non-GAAP economic measure we use to evaluate financial performance each period. AOI is calculated by adjusting net income (loss) to eliminate (i) the impact of net investment gains including other than temporary impairment ("OTTI") losses recognized in operations, but excluding gains and losses on derivatives hedging our indexed annuity policies, (ii) the effect of changes in the interest rates used to discount the FIA embedded derivative liability, (iii) the effect of change in fair value of affiliated reinsurance embedded derivative, (iv) the effect of integration, merger related & other non-operating items, (v) impact of extinguishment of debt, and (vi) net impact from Tax Cuts and Jobs Act. Adjustments to AOI are net of the corresponding impact on amortization of intangibles, as appropriate. The income tax impact related to these adjustments is measured using an effective tax rate of 35%, as appropriate. While these adjustments are an integral part of the overall performance of FG, market conditions and/or the non-recurring or non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, Management considers using a measure which excludes their impact is effective in analyzing the trends of our operations. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do.
AOI Available to Common Shareholders
AOI available to common shareholders is a non-GAAP economic measure we use to evaluate financial performance attributable to our common shareholders each period. AOI available to common shareholders is calculated by adjusting net income (loss) available to common shareholders to eliminate (i) the impact of net investment gains including other than temporary impairment ("OTTI") losses recognized in operations, but excluding gains and losses on derivatives hedging our indexed annuity policies, (ii) the effect of changes in the interest rates used to discount the FIA embedded derivative liability, (iii) the tax effect of change in fair value of affiliated reinsurance embedded derivative, (iv) the effect of integration, merger related & other non-operating items, (v) impact of extinguishment of debt, and (vi) net impact from Tax Cuts and Jobs act. All adjustments to AOI available to common shareholders are net of the corresponding impact on amortization of intangibles. The income tax impact related to these adjustments is measured using an effective tax rate of 35%, as appropriate. While these adjustments are an integral part of the overall performance of FG, market conditions impacting these items can overshadow the underlying performance of the business. Accordingly, Management considers using a measure which excludes their impact is effective in analyzing the trends of our operations. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do.
Sales
Sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. For GAAP purposes annuity and IUL sales are recorded as deposit liabilities (i.e. contract holder funds). Management believes that presentation of sales as measured for management purposes enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition.
Common Shareholders’ Equity
Common Shareholders’ Equity is based on Total Shareholders’ Equity excluding Equity Available to Preferred Shareholders. Management considers this to be a useful measure internally and to investors to assess the level of equity that is attributable common stock holders.
    

9

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

Common Shareholders’ Equity Excluding AOCI
Common Shareholders’ Equity Excluding AOCI is based on Common Shareholders Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on common equity.
Equity Available to Preferred Shareholders
Equity available to preferred shareholders is equal to the product of (a) the number of preferred shares outstanding plus share dividends declared but not yet issued and (b) the original liquidation preference amount per share. Management considers this non-GAAP measure to provide useful information internally and to investors and analysts to assess the level of return driven by the Company that is attributable to preferred stock holders.
Total Capitalization Excluding AOCI
Total Capitalization Excluding AOCI is based on shareholders’ equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts to help assess the capital position of the Company.
Book Value per Common Share (including and excluding AOCI)
Book Value per Common Share including and excluding AOCI is calculated as Common Shareholders’ Equity and Common Shareholders Equity Excluding AOCI divided by the total number of shares of common stock outstanding. Management considers this to be a useful measure internally and for investors and analysts to assess the capital position of the Company.
Return on Common Shareholders’ Equity
Return on Common Shareholders' Equity is a non-GAAP financial measure. It is calculated by dividing net income (loss) available to common shareholders by total average Common Shareholders’ Equity. Average Common Shareholders Equity for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average Common Shareholders Equity is calculated using the beginning and ending Common Shareholders’ Equity for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. As a result of the merger, the starting point for calculation of average Common Shareholders’ Equity was reset to December 1, 2017. The rolling average will be updated from the merger date forward to use available historical data points for the successor until 5 historical data points are available. Management considers this to be a useful measure internally and for investors and analysts to assess the level of return driven by the Company that is attributable to common shareholders.
Return on Common Shareholders Equity Excluding AOCI
Return on Common Shareholders' Equity Excluding AOCI is a non-GAAP financial measure. It is calculated by dividing net income (loss) available to common shareholders by total average Common Shareholders’ Equity Excluding AOCI. Average Common Shareholders Equity Excluding AOCI for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average Common Shareholders Equity Excluding AOCI is calculated using the beginning and ending Common Shareholders’ Equity, excluding AOCI, for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. As a result of the merger, the starting point for calculation of average Common Shareholders’ Equity was reset to December 1, 2017. The rolling average will be updated from the merger date forward to use available historical data points for the successor until 5 historical data points are available. Management considers this to be a useful measure internally and for investors and analysts to assess the level of return driven by the Company that is attributable to common shareholders.


10

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

Adjusted Operating Return on Common Shareholders’ Equity Excluding AOCI
Adjusted Operating Return on Common Shareholders’ Equity Excluding AOCI is a non-GAAP financial measure. It is calculated by dividing AOI Available to Common Shareholders’ by total average Common Shareholders’ Equity Excluding AOCI. Average Common Shareholders’ Equity Excluding AOCI for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average Common Shareholders Equity is calculated using the beginning and ending Common Shareholders Equity, Excluding AOCI, for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. As a result of the merger, the starting point for calculation of average Common Shareholders’ Equity was reset to December 1, 2017. The rolling average will be updated from the merger date forward to use available historical data points for the successor until 5 historical data points are available. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of adjusted earned return on common equity.
Debt-to-Capital
Debt-to-capital ratio is computed by dividing total debt by total capitalization excluding AOCI. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing its capital position.

Average Assets Under Management (AAUM)
AAUM is the sum of (i) total invested assets at amortized cost, excluding derivatives; (ii) related party loans and investments; (iii) accrued investment income; (iv) funds withheld at fair value; (v) the net payable/receivable for the purchase/sale of investments and (iv) cash and cash equivalents, excluding derivative collateral, at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment.
Yield on AAUM
Yield on AAUM is calculated by dividing annualized net investment income by AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.

Net Investment Spread
Net investment spread is the excess of net investment income earned over the sum of interest credited to policyholders and the cost of hedging our risk on FIA policies. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the performance of the Company’s invested assets against the level of investment return, inclusive of hedging costs, provided to policyholders.
   
Investment Book Yield
Investment book yield on bonds purchased during the period excludes yield on short-term treasuries and cash and cash equivalents. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of returned on the Company’s income generating invested assets

NON-GAAP FINANCIAL MEASURES : Predecessor
The following represents the definitions of non-GAAP measures used by the Predecessor entity.
For the period ended November 30, 2017, the Predecessor changed their definition of AOI to exclude the effects of integration and merger related expenses. Given the volume of integration and merger expenses incurred during the two months ended November 30, 2017, Predecessor management believed the exclusion of these charges from net income when calculating AOI provided users of the financial statements and other financial communications a more representative view of the results of the core business of the Predecessor for that period. Predecessor periods shown prior to November 30, 2017 have not been adjusted to reflect the new definition; however, integration and merger expenses in Predecessor periods prior to the two months ended November 30, 2017 are included within the ‘Notable Items Included in Net Income and AOI’ schedule within this document and are noted as ‘project expenses’.

11

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

AOI
AOI is a non-GAAP economic measure the Predecessor used to evaluate financial performance each period. AOI is calculated by adjusting net income to eliminate (i) the impact of net investment gains including other than temporary impairment ("OTTI") losses recognized in operations, but excluding gains and losses on derivatives hedging indexed annuity policies, (ii) the effect of changes in the interest rates used to discount the FIA embedded derivative liability, (iii) the effect of change in fair value of the reinsurance related embedded derivative and (iv) the effect of integration and merger related expenses. All adjustments to AOI are net of the corresponding VOBA and DAC impact. The income tax impact related to these adjustments is measured using an effective tax rate of 35%, as appropriate. While these adjustments were an integral part of the overall performance of the Predecessor, market conditions impacting these items could overshadow the underlying performance of the Predecessor's business. Accordingly, the Predecessor believed using a measure which excluded their impact was effective in analyzing the trends of their operations. The Predecessor's non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner.
Sales
Sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. For GAAP purposes annuity sales are recorded as deposit liabilities (i.e. contract holder funds). The Predecessor believed that presentation of sales as measured for management purposes enhances the understanding of the business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition.
Total Capitalization Excluding AOCI
Total Capitalization Excluding AOCI is based on shareholders’ equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, the Predecessor considered this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts to help assess capital position of the Predecessor.
Book Value per share (including and excluding AOCI) (presented herein as Book Value per common share including and excluding AOCI)
Book Value per share including and excluding AOCI is calculated as shareholders’ equity and shareholders’ equity excluding AOCI divided by the total number of shares of common stock outstanding. The Predecessor considered this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts to help assess capital position of the Predecessor.
Return on Average Shareholders’ Equity (presented herein as Return on Average Common Shareholders’ Equity)
Return on Average Shareholders’ Equity is a non-GAAP financial measure. It is calculated by dividing net income (loss) available to shareholders by total average shareholders’ equity. Average shareholders’ equity for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average shareholders’ equity is calculated using the beginning and ending shareholders’ equity for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. The Predecessor considered this to be a useful measure internally and for investors and analysts to assess the level of return driven by the Company that is attributable to common shareholders.
Return on Average Shareholders’ Excluding AOCI (presented herein as Return on Average Common Shareholders’ Equity Excluding AOCI)
Return on Average Shareholders’ Equity Excluding AOCI is a non-GAAP financial measure. It is calculated by dividing net income (loss) available to common shareholders by total average shareholders’ equity excluding AOCI. Average shareholders’ equity excluding AOCI for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average shareholders’ equity excluding AOCI is calculated using the beginning and ending shareholders’ equity, excluding AOCI, for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, the Predecessor considered this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned return on shareholders’ equity.

12

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

Adjusted Operating Return Equity Excluding AOCI (presented herein as Adjusting Operating return on common shareholders’ equity, excluding AOCI)
Adjusted Operating Return on Equity Excluding AOCI is a non-GAAP financial measure. It is calculated by dividing AOI by total average shareholders’ equity excluding AOCI. Average shareholders’ equity excluding AOCI for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average shareholders’ equity is calculated using the beginning and ending shareholders’ equity, excluding AOCI, for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. The Predecessor considered this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of adjusted earned return on equity.
Debt-to-Capital
Debt-to-capital is computed by dividing total debt by capitalization excluding AOCI. The Predecessor considered this non-GAAP financial measure to be useful internally and to investors and analysts when assessing capital position.

Average Assets Under Management (AAUM)
AAUM is the sum of (i) total invested assets at amortized cost, excluding derivatives; (ii) related party loans and investments; and (iii) cash and cash equivalents, excluding derivative collateral, at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one. The Predecessor considered this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment.

Yield on AAUM
Yield on AAUM is calculated by dividing annualized net investment income by AAUM. The Predecessor considered this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.

Net Investment Spread
Net investment spread is the excess of net investment income earned over the sum of interest credited to policyholders and the cost of hedging the Predecessor’s risk on FIA policies. The Predecessor considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the performance of the Predecessor’s invested assets against the level of investment return, inclusive of hedging costs, provided to policyholders.

Investment Book Yield
Investment book yield on bonds purchased during the period excludes yield on short-term treasuries and cash and cash equivalents. The Predecessor considered this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of returned on their income generating invested assets.






13

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)


Summary of Adjustments to Arrive at AOI

 
One Month Ended
 
 
Two Months Ended
 
Three Months Ended
 
December 31, 2017
 
 
November 30, 2017
 
September 30, 2017
 
June 30, 2017
 
March 31, 2017
 
December 31, 2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Dollars in millions)
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
Insurance and investment product fees and other (a)
$
(12
)
 
 
$

 
$

 
$

 
$

 
$

Net investment gains (b)

 
 
(8
)
 
1

 
15

 
28

 
(12
)
Increase (decrease) in total revenues
(12
)
 
 
(8
)
 
1

 
15

 
28

 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and other changes in policy reserves (c)
7

 
 
(19
)
 
12

 
(10
)
 
(1
)
 
(168
)
Acquisition and operating expenses, net of deferrals
4

 
 
29

 

 

 

 

Amortization of intangibles (d)
(1
)
 
 
10

 
(10
)
 
3

 
(6
)
 
77

(Decrease) increase in total benefits and expenses
10

 
 
20

 
2

 
(7
)
 
(7
)
 
(91
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (decrease) in pre-tax operating income
(2
)
 
 
12

 
3

 
8

 
21

 
(103
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(Decrease) increase in income tax expense (benefit) (e)
107

 
 
(4
)
 
(1
)
 
(3
)
 
(7
)
 
36

Increase (decrease) in net income
$
105

 
 
$
8

 
$
2

 
$
5

 
$
14

 
$
(67
)

(a) Insurance and investment product fees and other: includes the effect of contract fee termination.
(b) Net investment gains: includes the effects of net investment gains and for the Predecessor only, the change in fair value of the reinsurance related embedded derivative.
(c) Benefits and other changes in policy reserves: includes the effects of the change in fair value of the FIA embedded derivative discount rate.
(d) Amortization of intangibles includes the impact on DAC and VOBA of the adjustments in b-c above.
(e) The tax expense (benefit) includes the tax impact of the adjustments in a-c above, and for the Successor only, the impact of tax reform and the impact of affiliated reinsurance embedded derivative.

14

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

Notable Items Included in Net Income and AOI

Each quarterly reporting period, we identify notable items that help explain the trends in our Net Income and AOI.  These items are infrequent in nature or involve accounting volatility under general accepted accounting principles. The amounts below are included in disclosures within the Company's earnings releases to explain our Net Income and AOI results.  We believe that understanding these items provides further clarity to the financial performance of the business.   
 
One Month Ended
 
 
Two Months Ended
 
Three Months Ended
 
December 31, 2017
 
 
November 30, 2017
 
September 30, 2017
 
June 30, 2017
 
March 31, 2017
 
December 31, 2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Dollars in millions)
Net income
$
(102
)
 
 
$
28

 
$
61

 
$
32

 
$
22

 
$
108

 
 
 
 
 
 
 
 
 
 
 
 
 
AOI
$
3

 
 
$
36

 
$
63

 
$
37

 
$
36

 
$
41

Notable Items (Not Trendable) Included within AOI [(unfavorable)/favorable]
 
 
 
 
 
 
 
 
 
 
 
 
Legacy incentive compensation (a)

 
 

 

 
(1
)
 
(1
)
 

Project expenses (b)

 
 

 
(2
)
 
(5
)
 
(2
)
 

Single premium immediate annuities ("SPIA") mortality & other reserve adjustments (c)
(2
)
 
 
1

 
(2
)
 
2

 
3

 
2

Assumption review & DAC unlocking (d)
(9
)
 
 
4

 
21

 

 
(3
)
 

Other, including bond prepayment income & tax valuation allowance (e)

 
 

 
2

 

 

 
2

(a) Change in certain long term incentive compensation costs, including the change in the liability for our FGLH stock compensation plan, which as a liability plan, is settled in cash and accounted for at fair value each reporting period (Predecessor only).
(b) Expenses associated with corporate development activities, including mergers & acquisitions (Predecessor periods prior to the two months ended November 30, 2017 only).
(c) The release of annuity reserves associated with mortality of annuitants, which varies due to timing, volume and severity of experience, and other reserve adjustments.
(d) Reflects unlocking from updating our DAC amortization models for actual experience and equity market fluctuations. Also, annually in the 4th fiscal quarter, we complete our Annual Assumption Review & DAC Unlocking process by adjusting our valuation assumptions to align with actual experience.
(e) Bond prepayment income, changes in tax valuation, and other allowances related to reinsurance and agent debt, reinsurance settlements and other net favorable activity.

15

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

Capitalization/Book Value per Share

 
 
December 31,
2017
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
(Dollars in millions, except per share data)
Capitalization:
 
 
 
 
 
 
 
 
 
 
 
Debt
 
$
412

 
 
$
405

 
$
405

 
$
405

 
$
400

Total debt
 
412

 
 
405

 
405

 
405

 
400

Total shareholders' equity
 
1,952

 
 
2,247

 
2,113

 
1,908

 
1,752

Total capitalization
 
2,364

 
 
2,652

 
2,518

 
2,313

 
2,152

AOCI
 
75

 
 
543

 
467

 
291

 
153

Total capitalization excluding AOCI (1)
 
$
2,289

 
 
$
2,109

 
$
2,051

 
$
2,022

 
$
1,999

 
 
 
 
 
 
 
 
 
 
 
 
Total shareholders' equity
 
1,952

 
 
2,247

 
2,113

 
1,908

 
1,752

Equity available to preferred shareholders
 
377

 
 

 

 

 

Common shareholders' equity
 
1,575

 
 
2,247

 
2,113

 
1,908

 
1,752

AOCI
 
75

 
 
543

 
467

 
291

 
153

Total common shareholders' equity excluding AOCI (1)
 
$
1,500

 
 
$
1,704

 
$
1,646

 
$
1,617

 
$
1,599

 
 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding
 
214.37

 
 
58.93

 
58.99

 
58.99

 
58.98

 
 
 
 
 
 
 
 
 
 
 
 
Book Value per Share: (1)
 
 
 
 


 
 
 
 
 
 
GAAP Book value per common share including AOCI (1)
 
$
7.35

 
 
$
38.13

 
$
35.82

 
$
32.34

 
$
29.70

GAAP Book value per common share excluding AOCI (1)
 
$
7.00

 
 
$
28.92

 
$
27.90

 
$
27.41

 
$
27.11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve months ended
Twelve Month Rolling Average Return on Equity ("ROE")
 
December 31,
2017
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
Return on Common Shareholders' Equity (1)
 
 
 
 
 
 
 
 
 
 
 
Return on average common shareholders' equity
 
N/M

 
 
11.2
%
 
10.1
%
 
9.6
%
 
9.4
%
Return on average common shareholders' equity, excluding AOCI (1)
 
N/M

 
 
13.8
%
 
12.3
%
 
11.1
%
 
10.5
%