LDTI definition
Examples of LDTI in a sentence
LDTI is expected to have a significant impact on the Company’s financial statements, including total stockholder’s equity, as all of our variable annuity guarantees will be considered market risk benefits and measured at fair value, whereas today a significant amount of our variable annuity guarantees are classified as insurance liabilities.
See “— A downgrade or a potential downgrade in our financial strength ratings could result in a loss of business and materially adversely affect our financial condition and results of operations” as well as Note 1 of the Notes to the Financial Statements for a discussion of the estimated impacts of LDTI.
In addition, LDTI could have a material adverse effect on our leverage ratios and other rating agency metrics, which could also adversely impact our financial strength ratings and our ability to incur new indebtedness or refinance our existing indebtedness.
LDTI is expected to change the pattern and market sensitivity of the Company’s earnings.