BASIS OF PRESENTATION (Policies)

3 Months Ended

Mar. 31, 2022

BASIS OF PRESENTATION

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with U.S. GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of:

 loss reserves;

 future policy benefit reserves for life and accident and health insurance contracts;

 liabilities for guaranteed benefit features of variable annuity, fixed annuity and fixed index annuity products;

 embedded derivative liabilities for fixed index annuity and life products;

 estimated gross profits to value deferred acquisition costs and unearned revenue for investment-oriented products;

 reinsurance assets, including the allowance for credit losses and disputes;

 goodwill impairment;

 allowance for credit losses on certain investments, primarily on loans and available for sale fixed maturity securities;

 legal contingencies;

 fair value measurements of certain financial assets and financial liabilities; and

 income taxes, in particular the recoverability of our deferred tax asset and establishment of provisions for uncertain tax positions.

These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.