Refer to Item 7A included in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to this item since December 31, 2025, with the exception of the changes in exposure to foreign currency risk presented below.
Foreign Currency Risk
The table below provides a sensitivity analysis of total net foreign currency exposures:
AUD CAD EUR GBP JPY Other Total
At June 30, 2026
Net managed assets (liabilities), excluding derivatives $ 92,211 $ 425,626 $ (13,392) $ 83,658 $ (7,437) $ 225,090 $ 805,756
Foreign currency derivatives, net (63,519) (356,841) (1,940) 23,456 26,990 (214,250) (586,104)
Net managed foreign currency exposure 28,692 68,785 (15,332) 107,114 19,553 10,840 219,652
Other net foreign currency exposure — 311 271 177 — 1 760
Total net foreign currency exposure $ 28,692 $ 69,096 $ (15,061) $ 107,291 $ 19,553 $ 10,841 $ 220,412
Net foreign currency exposure as a percentage of total shareholders’ equity 0.4 % 1.1 % (0.2 %) 1.6 % 0.3 % 0.2 % 3.4 %
Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement(1) $ 2,869 $ 6,910 $ (1,506) $ 10,729 $ 1,955 $ 1,084 $ 22,041
(1)Assumes 10% appreciation in underlying currencies relative to the U.S. dollar.
Total Net Foreign Currency Exposure
At June 30, 2026, total net foreign currency assets were $220 million primarily driven by exposures to the pound sterling, Canadian dollar, Australian dollar and Japanese yen. During the six months ended June 30, 2026, the change in total net foreign currency exposure was primarily due to new business written in the period.
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