Common use of Foreign Exchange Risk Clause in Contracts

Foreign Exchange Risk. Any foreign currency investments and exposures would normally be hedged via the use of forward foreign exchange contracts and/or currency options or preferably by a natural hedge with foreign pay liabilities of the Insurance Company. Unhedged foreign investments will be limited to 10% of invested assets at cost if judged appropriate. Unhedged exposure above this amount must be approved by the Investment Committee.

Foreign Exchange Risk. Any foreign currency investments and exposures would normally be hedged via the use of forward foreign exchange contracts and/or currency options or preferably by a natural hedge with foreign pay liabilities of the Insurance Company. Unhedged foreign investments will be limited to 10% of invested assets at cost if judged appropriatecost. Unhedged exposure above this amount must be approved by the Investment Committee.