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## Consolidated Results of Operations – Executive Summary 

The Company measures the financial results of its segments using ‘‘segment earnings (loss)’’, that is defined as shareholders’ net income (loss) before after-tax realized investment results. Adjusted income (loss) from operations is defined as consolidated segment earnings (loss) excluding special items (described in the table below) and the results of the GMIB business. Adjusted income (loss) from operations is another measure of profitability used by the Company’s management because it presents the underlying results of operations of the Company’s businesses and permits analysis of trends in underlying revenue, expenses and shareholders’ net income. This measure is not determined in accordance with accounting principles generally accepted in the United States (‘‘GAAP’’) and should not be 

viewed as a substitute for the most directly comparable GAAP measure, that is shareholders’ net income. 

The Company excludes special items because management does not believe they are representative of the Company’s underlying results of operations. The Company also excludes the results of the GMIB business because the changes in the fair value of GMIB assets and liabilities are volatile and unpredictable. See the Run-off Reinsurance section of the MD&A for additional information on GMIB. Because of this volatility, and since the GMIB business is in run-off, management does not believe that its results are meaningful in assessing underlying results of operations. 

Summarized below is a reconciliation between shareholders’ income from continuing operations and adjusted income from operations. 

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