
| See Notice About This Presentation Reconciliation of Non-GAAP Financial Measure to GAAP NON-GAAP FINANCIAL MEASURE: Annualized operating return on equity is a non-GAAP financial measure under Regulation G and is calculated as net earnings excluding after-tax net realized investment gain/loss, other-than-temporary impairment credit losses, and foreign currency benefit/expense (collectively, operating earnings) divided by average shareholders’ equity excluding accumulated other comprehensive income. Management believes annualized operating return on equity is a useful measure for understanding the Company’s profitability relative to shareholders’ equity before consideration of investment-related gains/losses and foreign currency benefit/expense, both of which management excludes when evaluating operating results internally. 34 Three months Twelve months ended ended March 31, March 31, 2015 2015 $112,917 $463,349 8,571 38,552 11,687 29,302 Total items excluded from operating earnings 20,258 67,854 $92,659 $395,495 $3,903,351 $3,782,113 175,014 162,221 $3,728,337 $3,619,892 $3,933,427 $3,933,427 172,262 172,262 $3,761,165 $3,761,165 $3,744,751 $3,690,529 9.9% 10.7% Annualized operating return on equity *Net of tax, calculated using 35% statutory tax rate. Average equity, as adjusted Exclude - Accumulated other comprehensive income Ending equity, as adjusted Beginning equity, as adjusted GAAP equity - end of period GAAP equity - beginning of period Exclude - Accumulated other comprehensive income Operating earnings Denominator: Numerator: (In thousands) Foreign currency benefit* GAAP net earnings Exclude: Net realized investment gain* |