v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements 4. Fair Value Measurements
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS
We carry certain of our financial instruments at fair value. We define the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumptions.
The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions.
Assets and liabilities recorded at fair value in the Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs:
•Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments.
•Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
•Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The following is a description of the valuation methodologies used for instruments carried at fair value. These methodologies are applied to assets and liabilities across the levels discussed above, and it is the observability of the inputs used that determines the appropriate level in the fair value hierarchy for the respective asset or liability.
VALUATION METHODOLOGIES OF FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE
Incorporation of credit risk in fair value measurements
•Our own credit risk: Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposure to us at the balance sheet date by reference to observable Corebridge credit default swaps (“CDS”) or cash bond spreads. We calculate the effect of credit spread changes using discounted cash flow techniques that incorporate current market interest rates. A derivative counterparty’s net credit exposure to us is determined based on master netting agreements, when applicable, which take into consideration all derivative positions with us, as well as collateral we post with the counterparty at the balance sheet date. We also incorporate our own risk of non-performance in the valuation of market risk benefits associated with variable annuity, fixed annuity, fixed index annuity and registered index-linked annuity contracts and embedded derivatives associated with fixed index annuity, registered index-linked annuity contracts and index universal life. The non-performance risk adjustment (“NPA”) reflects a market participant’s view of our claims-paying ability by incorporating an additional spread to the swap curve used to discount projected cash flows in the valuation of market risk benefits and embedded derivatives. The non-performance risk adjustment is calculated by constructing forward rates based on a weighted average of observable corporate credit indices to approximate the claims-paying ability rating of our insurance operations companies.
•Counterparty credit risk: Fair value measurements for freestanding derivatives incorporate counterparty credit by determining the explicit cost for us to protect against our net credit exposure to each counterparty at the balance sheet date by reference to observable counterparty CDS spreads, when available. When not available, other directly or indirectly observable credit spreads will be used to derive the best estimates of the counterparty spreads. Our net credit exposure to a counterparty is determined based on master netting agreements, which take into consideration all derivative positions with the counterparty, as well as collateral posted by the counterparty at the balance sheet date. We also incorporate counterparty credit risk of non-performance in the valuation of ceded market risk benefits resulting from reinsurance of certain of our individual variable annuities.
Fair values for fixed maturity securities based on observable market prices for identical or similar instruments implicitly incorporate counterparty credit risk. Fair values for fixed maturity securities based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or other observable information.
For fair values measured based on internal models, the cost of credit protection is determined under a discounted present value approach considering the market levels for single name CDS spreads for each specific counterparty, the mid-market value of the net exposure (reflecting the amount of protection required) and the weighted average life of the net exposure. CDS spreads are provided to us by an independent third party. We utilize an interest rate based on the appropriate benchmark curve to derive our discount rates.
While this approach does not explicitly consider all potential future behavior of the derivative transactions or potential future changes in valuation inputs, we believe this approach provides a reasonable estimate of the fair value of the assets and liabilities, including consideration of the impact of non-performance risk.
Fixed maturity securities
Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure fixed maturity securities at fair value. Market price data is generally obtained from dealer markets.
We employ independent third-party valuation service providers to gather, analyze, and interpret market information to derive fair value estimates for individual investments, based upon market-accepted methodologies and assumptions. The methodologies used by these independent third-party valuation service providers are reviewed and understood by management, through periodic discussion with and information provided by the independent third-party valuation service providers. In addition, as discussed further below, control processes are applied to the fair values received from independent third-party valuation service providers to ensure the accuracy of these values.
Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of market-accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and various assumptions, provide a single fair value measurement for individual securities. The inputs used by the valuation service providers include, but are not limited to, market prices from completed transactions for identical securities and transactions for comparable securities, benchmark yields, interest rate yield curves, credit spreads, prepayment rates, default rates, recovery assumptions, currency rates, quoted prices for similar securities and other market-observable information, as applicable. If fair value is determined using financial models, these models generally take into account, among other things, market observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased.
We have control processes designed to ensure that the fair values received from independent third-party valuation service providers are accurately recorded, that their data inputs and valuation techniques are appropriate and consistently applied and that the assumptions used appear reasonable and consistent with the objective of determining fair value. We assess the reasonableness of individual security values received from independent third-party valuation service providers through various analytical techniques and have procedures to escalate related questions internally and to the independent third-party valuation service providers for resolution. To assess the degree of pricing consensus among various valuation service providers for specific asset types, we conduct comparisons of prices received from available sources. We use these comparisons to establish a hierarchy for the fair values received from independent third-party valuation service providers to be used for particular security classes. We also validate prices for selected securities through reviews by members of management who have relevant expertise and who are independent of those charged with executing investing transactions.
When our independent third-party valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing market accepted valuation models internally or via our third party asset managers. Broker prices may be based on an income approach, which converts expected future cash flows to a single present value amount, with specific consideration of inputs relevant to particular security types. For structured securities, such inputs may include ratings, collateral types, geographic concentrations, underlying loan vintages, loan delinquencies and defaults, loss severity assumptions, prepayments, and weighted average coupons and maturities. When the volume or level of market activity for a security is limited, certain inputs used to determine fair value may not be observable in the market. Broker prices may also be based on a market approach that considers recent transactions involving identical or similar securities. Fair values provided by brokers are subject to similar control processes to those noted above for fair values from independent third-party valuation service providers, including management reviews. For those corporate debt instruments (for example, private placements) that are not traded in active markets or that are subject to transfer restrictions, valuations reflect illiquidity and non-transferability, based on available market evidence. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of comparable securities, adjusted for illiquidity and structure. Fair values determined internally or via our third party asset managers are also subject to management review to ensure that valuation models and related inputs are reasonable.
The methodology above is relevant for all fixed maturity securities including residential mortgage backed securities (“RMBS”), commercial mortgage backed securities (“CMBS”), collateralized loan obligations (“CLOs”), other asset-backed securities (“ABS”) and fixed maturity securities issued by government sponsored entities and corporate entities.
Equity securities traded in active markets
Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure equity securities. at fair value. Market price data is generally obtained from exchange or dealer markets.
Mortgage and other loans receivable
We estimate the fair value of mortgage and other loans receivable that are measured at fair value by using dealer quotations, discounted cash flow analyses and/or internal valuation models. The determination of fair value considers inputs such as interest rate, maturity, the borrower’s creditworthiness, collateral, subordination, guarantees, past-due status, yield curves, credit curves, prepayment rates, market pricing for comparable loans and other relevant factors.
Other invested assets
We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price. Subsequently, we generally obtain the fair value of these investments from net asset value information provided by the general partner or manager of the investments, the financial statements of which are generally audited annually. We consider observable market data and perform certain control procedures to validate the appropriateness of using the net asset value as a fair value measurement. The fair values of other investments carried at fair value, such as direct private equity holdings, are initially determined based on transaction price and are subsequently estimated based on available evidence such as market transactions in similar instruments, other financing transactions of the issuer and other available financial information for the issuer, with adjustments made to reflect illiquidity as appropriate.
Private equity fund investments are not redeemable because distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one-year or two-year increments. Total unfunded commitments on these private equity fund investments totaled $3.4 billion and $2.6 billion as of December 31, 2025 and 2024, respectively.
All liquid hedge fund investments have been redeemed. The remaining investments, excluding those in the modco agreement with Fortitude Re, are in illiquid and/or side pocket vehicles whose liquidation horizons are uncertain and likely to extend over the coming quarters and/or years.
Short-term investments
For short-term investments that are measured at amortized cost, the carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk. Securities purchased under agreements to resell (reverse repurchase agreements) are generally treated as collateralized receivables. We report certain receivables arising from securities purchased under agreements to resell as Short-term investments in the Consolidated Balance Sheets. When these receivables are measured at fair value, we use market-observable interest rates to determine fair value.
Separate account assets
Separate account assets are composed primarily of registered and unregistered open-end mutual funds that generally trade daily and are measured at fair value in the manner discussed above for equity securities traded in active markets.
Freestanding derivatives
Derivative assets and liabilities can be exchange-traded or traded over-the-counter (“OTC”). We generally value exchange-traded derivatives such as futures and options using quoted prices in active markets for identical derivatives at the balance sheet date. We use these OTC derivatives as part of fair value hedges.
OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in the instrument, as well as the availability of pricing information in the market. We generally use similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment.
For certain OTC derivatives that trade in less liquid markets, where we generally do not have corroborating market evidence to support significant model inputs and cannot verify the model to market transactions, the transaction price may provide the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. We will update valuation inputs in these models only when corroborated by evidence such as similar market transactions, independent third-party valuation service providers and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.
Market risk benefits and Embedded derivatives within Policyholder contract deposits
MRBs are contracts or contract features that provide protection to the policyholder and expose the insurance entity to other-than-nominal capital market risk. Certain of our variable annuity, fixed annuity, fixed index annuity and registered index-linked annuity contracts contain guaranteed benefit features which are accounted for as MRBs and are recorded at fair value, with certain changes recorded to net income. Our fixed index annuity, registered index-linked annuity and index universal life contracts include additional features which can provide growth potential based in part on the performance of market indices. These growth features are accounted for as embedded derivatives as their host contracts do not meet the definition of a standalone derivative. Embedded derivatives get bifurcated from their host contract and are recorded at fair value within policyholder contract deposits, with changes in the fair value recorded to net income.
The valuation of the contract features that are MRBs and embedded derivatives (collectively “the valuations”), are measured as the present value of the projected cash flows over the expected lives of the contracts using a risk-neutral valuation framework, calibrated to observable interest rate and equity option prices, and incorporates policyholder behavior and capital market assumptions. Assumptions used to develop the projected cash flows are set for the contract and are then applied consistently to each applicable feature within that contract to develop the valuations. Since there is no observable active market for the transfer of these contract features, the valuations are calculated using internally developed models. An option-based approach is used for all contracts with the exception of variable annuity contracts which use a non-option-based approach where a portion of actual fees (i.e., attributed fees) is determined such that the present value of expected benefits less attributed fees is zero at issue and this calculated ratio gets locked in and is utilized in each policy valuation going forward.
In some instances, the projected cash flows from fees related to the MRBs, when applicable, may exceed projected cash flows related to the expected benefit payments and therefore, at a point in time, the carrying value of the MRBs may be in a net asset position. The portion of the contract fees, if any, not attributed to the MRBs is excluded from the fair value measurement and classified as policy fees and recorded to net income.
The projected cash flows incorporate various assumptions. Policyholder behavior assumptions including lapses, withdrawals, benefit utilization, and mortality use best estimate assumptions based primarily on our historical experience, along with a risk margin that a market participant would require to accept the risk and uncertainty of the projected cash flows. Capital market assumptions include items such as market volatility, interest rates, and our market-perceived non-performance risk under the contract. Additionally, projected cash flows for the embedded derivatives can be refined further for our ability to adjust the participation rates and caps on index-linked interest credited features.
Projected cash flows are discounted using the interest rate swap curve (“swap curve”), which is viewed as being consistent with the credit spreads for highly-rated financial institutions (S&P AA-rated or above). A swap curve shows the fixed-rate leg of a non-complex swap against the floating rate (for example, Secured Overnight Financing Rate (“SOFR”) leg of a related tenor. We also incorporate our own risk of market-perceived non-performance in the valuations, which reflects a market participant’s view of our claims-paying ability by incorporating an additional spread to the swap curve used to discount projected cash flows. The NPA is calculated by constructing forward rates based on a weighted average of observable corporate credit indices to approximate the claims-paying ability rating of our companies. The corporate credit indices are observable for the first 30 years. For years 30 to 50, the yield is derived using market observable yields. Yields for years 50 to 100 are extrapolated using a flat forward approach, maintaining a constant forward spread through the period. MRBs are measured using a NPA that is a locked-in estimate of our claims-paying ability at policy issue (“locked-in NPA”) as well as a NPA that reflects an estimate of our current claims-paying ability (“current NPA”).
When MRBs are remeasured each period, both the interest rates and current NPA are updated. Changes in the swap curve and the time value accretion of the at-issue NPA are recorded to net income while the difference between the MRBs measured using the at-issue NPA and the current NPA is recorded to OCI, except for ceded MRBs where the change in counterparty credit risk is recorded to net income. For embedded derivatives, changes in the interest rates and the period-over-period change in the NPA are recorded to net income.
Policyholder contract deposits at fair value option
We have elected fair value option on certain GICs recorded using discounted cash flow calculations based on interest rates currently being offered for similar contracts and our current market observable implicit credit spread rates with maturities consistent with those remaining for the contracts being valued. Obligations may be called at various times prior to maturity at the option of the counterparty. Interest rates on these borrowings are primarily fixed, vary by maturity and range up to 5.04%.
Fortitude Re funds withheld payable
The reinsurance transactions with Fortitude Re were structured as modco arrangements. Corebridge has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing liabilities for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative. Changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through realized gains (losses). This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. The fair value of the underlying assets is generally based on market observable inputs using industry standard valuation techniques. The valuation also requires certain significant inputs, which are generally not observable and accordingly, the valuation is considered Level 3 in the fair value hierarchy.
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:
December 31, 2025Level 1Level 2Level 3
Counterparty
Netting(a)
Cash
Collateral		Total
(in millions)
Assets:
Bonds available-for-sale:
U.S. government and government sponsored entities$10$1,327$—$—$—$1,337
Obligations of states, municipalities and political subdivisions—3,725761——4,486
Non-U.S. governments—4,487———4,487
Corporate debt—121,390681——122,071
RMBS
—10,4955,855——16,350
CMBS—8,563744——9,307
CLO—7,0372,055——9,092
ABS
—1,81420,437——22,251
Total bonds available-for-sale
10158,83830,533——189,381
Other bond securities:
U.S. government and government sponsored entities—192———192
Obligations of states, municipalities and political subdivisions—331——34
Non-U.S. governments—75———75
Corporate debt—2,709205——2,914
RMBS
—5087——137
CMBS—20116——217
CLO
—54243——585
ABS—651,188——1,253
Total other bond securities—3,8671,540——5,407
Equity securities10—69——79
Other invested assets(b)
——1,498——1,498
Derivative assets:
Interest rate contracts—89422——916
Foreign exchange contracts—711———711
Equity contracts67,519863——8,388
Credit contracts——————
Other contracts——14——14
Counterparty netting and cash collateral———(6,106)(3,482)(9,588)
Total derivative assets69,124899(6,106)(3,482)441
Short-term investments661963———1,624
Market risk benefit assets——2,392——2,392
Separate account assets91,5824,003———95,585
Total$92,269$176,795$36,931$(6,106)$(3,482)$296,407
Liabilities:
Policyholder contract deposits(c)
$—$134$12,022$—$—$12,156
Derivative liabilities:
Interest rate contracts—1,61122——1,633
Foreign exchange contracts—554———554
Equity contracts74,79598——4,900
Other contracts——4——4
Counterparty netting and cash collateral———(6,106)(686)(6,792)
Total derivative liabilities76,960124(6,106)(686)299
Fortitude Re funds withheld payable(d)
——3,795——3,795
Other liabilities
—23———23
Market risk benefit liabilities——7,309——7,309
Total $7$7,117$23,250$(6,106)$(686)$23,582
December 31, 2024Level 1Level 2Level 3
Counterparty
Netting(a)
Cash
Collateral		Total
(in millions)
Assets:
Bonds available-for-sale:
U.S. government and government sponsored entities$9$1,359$—$—$—$1,368
Obligations of states, municipalities and political subdivisions—3,916745——4,661
Non-U.S. governments—3,904———3,904
Corporate debt—104,6441,834——106,478
RMBS
—9,7396,045——15,784
CMBS—8,956621——9,577
CLO
—7,9562,162——10,118
ABS
—1,38417,566——18,950
Total bonds available-for-sale
9141,85828,973——170,840
Other bond securities:
U.S. government and government sponsored entities—188———188
Obligations of states, municipalities and political subdivisions—331——34
Non-U.S. governments—27———27
Corporate debt—2,727209——2,936
RMBS
—5398——151
CMBS—20614——220
CLO
—41959——478
ABS—681,160——1,228
Total other bond securities—3,7211,541——5,262
Equity securities
15—41——56
Other invested assets(b)
——1,647——1,647
Derivative assets:
Interest rate contracts—2,556364——2,920
Foreign exchange contracts—1,271———1,271
Equity contracts12,390654——3,045
Other contracts—113——14
Counterparty netting and cash collateral———(4,494)(2,563)(7,057)
Total derivative assets16,2181,031(4,494)(2,563)193
Short-term investments3511,088———1,439
Market risk benefit assets——1,332——1,332
Separate account assets90,4003,488———93,888
Total
$90,776$156,373$34,565$(4,494)$(2,563)$274,657
Liabilities:
Policyholder contract deposits(c)
$—$120$9,415$—$—$9,535
Derivative liabilities:
Interest rate contracts—3,452———3,452
Foreign exchange contracts—268———268
Equity contracts71,5309——1,546
Other contracts——2——2
Counterparty netting and cash collateral———(4,494)(664)(5,158)
Total derivative liabilities75,25011(4,494)(664)110
Fortitude Re funds withheld payable(d)
——2,223——2,223
Market risk benefit liabilities——5,616——5,616
Total$7$5,370$17,265$(4,494)$(664)$17,484
(a)Represents netting of derivative exposures covered by qualifying master netting agreements.
(b)Excludes private equity fund and hedge fund investments that are measured at fair value using the net asset value (“NAV”) per share (or its equivalent). Total private equity fund investments measured at NAV were $6.5 billion and $5.9 billion as of December 31, 2025 and December 31, 2024, respectively. Total hedge fund investments measured at NAV were $121 million and $210 million as of December 31, 2025 and December 31, 2024.
(c)Excludes basis adjustments for fair value hedges.
(d)As discussed in Note 7, the Fortitude Re funds withheld payable is created through modco and funds withheld reinsurance arrangements where the investments supporting the reinsurance agreements are withheld by and continue to reside on Corebridge’s Consolidated Balance Sheets. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by Corebridge, which are primarily available-for-sale securities.
CHANGES IN LEVEL 3 RECURRING FAIR VALUE MEASUREMENTS
The following tables present changes during the years ended December 31, 2025 and 2024 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Consolidated Balance Sheets at December 31, 2025 and 2024:
(in millions)Fair Value
 Beginning
 of Year		Net
 Realized
 and
Unrealized Gains
 (Losses)
 Included
in Income		Other
 Comprehensive
Income (Loss)		Purchases,
 Sales,
 Issuances
 and
 Settlements,
Net		Gross
Transfers
 In		Gross
 Transfers
 Out		OtherFair Value End of YearChanges in Unrealized Gains (Losses) Included in Income on Instruments Held at End of YearChanges in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year
Year Ended December 31, 2025
Assets:
Bonds available-for-sale:
Obligations of states, municipalities and political subdivisions$745 $(3)$(1)$(4)$24 $— $— $761 $— $(19)
Corporate debt1,834 (49)1 369 626 (2,100)— 681 — (20)
RMBS6,045 167 54 (179)80 (312)— 5,855 — 62 
CMBS621 24 31 (156)224 — — 744 — 30 
CLO2,162 20 4 339 15 (485)— 2,055 — 5 
ABS17,566 188 435 1,567 1,254 (573)— 20,437 — 302 
Total bonds available-for-sale
28,973 347 524 1,936 2,223 (3,470)— 30,533 — 360 
Other bond securities:
Obligations of states, municipalities and political subdivisions1 — — — — — — 1 — — 
Corporate debt209 (2)— (14)199 (187)— 205 (3)— 
RMBS98 5 — (8)— (8)— 87 5 — 
CMBS14 2 — — — — — 16 2 — 
CLO59 (5)— 7 — (18)— 43 (9)— 
ABS1,160 40 — (14)2 — — 1,188 22 — 
Total other bond securities1,541 40 — (29)201 (213)— 1,540 17 — 
Equity securities41 17 — 4 7 — — 69 15 — 
Other invested assets1,647 (47)54 (116)— (40)— 1,498 (15)— 
Total(a)
$32,202 $357 $578 $1,795 $2,431 $(3,723)$— $33,640 $17 $360 
(in millions)Fair Value
 Beginning
 of Year		Net
 Realized
 and
Unrealized (Gains)
 Losses
 Included
in Income		Other
 Comprehensive
(Income) Loss		Purchases,
 Sales,
 Issuances
 and
 Settlements,
Net		Gross
Transfers
 In		Gross
 Transfers
 Out		OtherFair Value End of YearChanges in Unrealized Gains (Losses) Included in Income on Instruments Held at End of YearChanges in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year
Liabilities:
Policyholder contract deposits$9,415 $1,921 $— $686 $— $— $— $12,022 $796 $— 
Derivative liabilities, net:
Interest rate contracts(364)105 — 259 — — — — — — 
Equity contracts(645)33 — (153)— — — (765)98 — 
Other contracts(11)(63)— 64 — — — (10)62 — 
Total derivative liabilities, net(b)
(1,020)75 — 170 — — — (775)160 — 
Fortitude Re funds withheld payable2,223 1,673 — (152)— — 51 3,795 (472)— 
Total(c)
$10,618 $3,669 $— $704 $— $— $51 $15,042 $484 $— 
(in millions)Fair Value
 Beginning
 of Year		Net
 Realized
 and
Unrealized Gains
 (Losses)
 Included
in Income		Other
 Comprehensive
Income (Loss)		Purchases,
 Sales,
 Issuances
 and
 Settlements,
Net		Gross
Transfers
 In		Gross
 Transfers
 Out
Other
Fair Value End of YearChanges in Unrealized Gains (Losses) Included in Income on Instruments Held at End of YearChanges in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year
Year Ended December 31, 2024
Assets:
Bonds available-for-sale:
Obligations of states, municipalities and political subdivisions$844 $(1)$(72)$(4)$— $(22)$— $745 $— $(77)
Corporate debt1,357 12 (2)(94)1,057 (496)— 1,834 — (34)
RMBS5,854 290 31 155 21 (304)(2)6,045 — 30 
CMBS608 1 95 (180)252 (155)— 621 — 22 
CLO1,843 17 28 553 41 (320)— 2,162 — 29 
ABS12,906 391 305 3,282 1,161 (479)— 17,566 — 272 
Total bonds available-for-sale
23,412 710 385 3,712 2,532 (1,776)(2)28,973 — 242 
Other bond securities:
Obligations of states, municipalities and political subdivisions1 — — — — — — 1 — — 
Corporate debt167 15 — 10 20 (3)— 209 10 — 
RMBS107 5 — (11)— (3)— 98 3 — 
CMBS17 1 — (4)— — — 14 1 — 
CLO69 (2)— 7 — (16)1 59 — — 
ABS962 66 — 223 21 (112)— 1,160 29 — 
Total other bond securities1,323 85 — 225 41 (134)1 1,541 43 — 
Equity securities42 1 — 5 — — (7)41 — — 
Other invested assets1,850 (49)(15)13 — (136)(16)1,647 (56)— 
Total(a)
$26,627 $747 $370 $3,955 $2,573 $(2,046)$(24)$32,202 $(13)$242 
(in millions)Fair Value
 Beginning
 of Year		Net
 Realized
 and
Unrealized (Gains)
 Losses
 Included
in Income		Other
 Comprehensive
(Income) Loss		Purchases,
 Sales,
 Issuances
 and
 Settlements,
Net		Gross
Transfers
 In		Gross
 Transfers
 Out		OtherFair Value End of YearChanges in Unrealized Gains (Losses) Included in Income on Instruments Held at End of YearChanges in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year
Liabilities:
Policyholder contract deposits$7,942 $859 $— $614 $— $— $— $9,415 $1,472 $— 
Derivative liabilities, net:
Interest rate contracts(449)(170)— (84)— — 339 (364)255 — 
Equity contracts(761)(38)— 141 — — 13 (645)(107)— 
Other contracts(10)(45)— 44 — — — (11)44 — 
Total derivative liabilities, net(b)
(1,220)(253)— 101 — — 352 (1,020)192 — 
Fortitude Re funds withheld payable2,182 518 — (477)— — — 2,223 531 — 
Debt of consolidated investment entities— — — — — — — — — — 
Total(c)
$8,904 $1,124 $— $238 $— $— $352 $10,618 $2,195 $— 
(a)Excludes MRB assets of $2.4 billion at December 31, 2025 and $1.3 billion at December 31, 2024. See Note 14 for additional information.
(b)Total Level 3 derivative exposures have been netted in these tables for presentation purposes only.
(c)Excludes MRB liabilities of $7.3 billion at December 31, 2025 and $5.6 billion at December 31, 2024. See Note 14 for additional information.
Change in the fair value of market risk benefits, net and net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities shown above are reported in the Consolidated Statements of Income (Loss) as follows:
(in millions)Policy
Fees		Net Investment Income (Loss)Net Realized and Unrealized Gains
(Losses)
Change in the Fair Value of Market Risk Benefits, net(a)
Total
Year Ended December 31, 2025
Assets:
Bonds available-for-sale$—$363$(16)$—$347
Other bond securities—40——40
Equity securities—17——17
Other invested assets—(20)(27)—(47)
Year Ended December 31, 2024
Assets:
Bonds available-for-sale$—$748$(38)$—$710
Other bond securities—85——85
Equity securities—1——1
Other invested assets—(49)——(49)
Year Ended December 31, 2025
Liabilities:
Policyholder contract deposits(b)
$—$—$(1,921)$—$(1,921)
Derivative liabilities, net65 —(140)—(75)
Fortitude Re funds withheld payable——(1,673)—(1,673)
Market risk benefit liabilities, net(c)
———(164)(164)
Year Ended December 31, 2024
Liabilities:
Policyholder contract deposits(b)
$—$—$(859)$—$(859)
Derivative liabilities, net44—269(60)253
Fortitude Re funds withheld payable——(518)—(518)
Market risk benefit liabilities, net(c)
——31,5261,529
(a)The portion of the fair value change attributable to our own credit risk is recognized in Other comprehensive income (loss) (“OCI”).
(b)Primarily embedded derivatives.
(c)Market risk benefit assets and liabilities have been netted in these tables for presentation purposes only.
The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above, for the year ended December 31, 2025 and 2024 related to Level 3 assets and liabilities in the Consolidated Balance Sheets:
(in millions)PurchasesSalesIssuances
and
Settlements		Purchases, Sales,
Issuances and
Settlements,
Net
Year Ended December 31, 2025
Assets:
Bonds available-for-sale:
Obligations of states, municipalities and political subdivisions$67$(69)$(2)$(4)
Corporate debt773(116)(288)369
RMBS614(63)(730)(179)
CMBS20(39)(137)(156)
CLO800(2)(459)339
ABS7,205(1,891)(3,747)1,567
Total bonds available-for-sale
9,479(2,180)(5,363)1,936
Other bond securities:
Corporate debt10(12)(12)(14)
RMBS26(26)(8)(8)
CMBS1(1)——
CLO12—(5)7 
ABS122(17)(119)(14)
Total other bond securities171(56)(144)(29)
Equity securities17(6)(7)4
Other invested assets224—(340)(116)
Total assets*$9,891$(2,242)$(5,854)$1,795
Liabilities:
Policyholder contract deposits$—$1,917$(1,231)$686
Derivative liabilities, net——170 170 
Fortitude Re funds withheld payable——(152)(152)
Total liabilities$—$1,917$(1,213)$704
Year Ended December 31, 2024
Assets:
Bonds available-for-sale:
Obligations of states, municipalities and political subdivisions$22$(24)$(2)$(4)
Corporate debt507(330)(271)(94)
RMBS1,552(583)(814)155 
CMBS59(113)(126)(180)
CLO1,247(153)(541)553
ABS6,087(649)(2,156)3,282
Total bonds available-for-sale
9,474(1,852)(3,910)3,712
Other bond securities:
Corporate debt10—— 10
RMBS——(11)(11)
CMBS—(4)—(4)
CLO23— (16)7 
ABS427(36)(168)223 
Total other bond securities460(40)(195)225
Equity securities7(2)—5
Other invested assets282—(269)13
Total assets*$10,223$(1,894)$(4,374)$3,955
Liabilities:
Policyholder contract deposits$—$1,564$(950)$614
Derivative liabilities, net— —101101
Fortitude Re funds withheld payable——(477)(477)
Total liabilities$—$1,564$(1,326)$238
*There were no issuances during the years ended December 31, 2025 and 2024 for invested assets.
Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at December 31, 2025 and 2024 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).
Transfers of Level 3 Assets and Liabilities
We record transfers of assets and liabilities into or out of Level 3 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. The Net realized and unrealized gains (losses) included in net income (loss) or OCI as shown in the table above excludes $0 million and $(17) million of net gains (losses) related to assets transferred into Level 3 during the years ended December 31, 2025 and 2024, respectively, and includes $(24) million and $31 million of net gains (losses) related to assets transferred out of Level 3 during the years ended December 31, 2025 and 2024, respectively.
Transfers of Level 3 Assets
During the years ended December 31, 2025 and 2024, transfers into Level 3 assets primarily included certain investments in private placement corporate debt, CMBS, CLO and ABS. Transfers of private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity. The transfers of investments in CMBS, CLO and certain ABS into Level 3 assets were due to diminished market transparency and liquidity for individual security types.
During the years ended December 31, 2025 and 2024, transfers out of Level 3 assets primarily included private placement and other corporate debt, CMBS, RMBS, CLO, ABS and certain investments in municipal securities. Transfers of certain investments in municipal securities, corporate debt, RMBS, CMBS and CLO and ABS out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers of certain investments in private placement corporate debt and certain ABS out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market.
Transfers of Level 3 Liabilities
There were no significant transfers of derivative or other liabilities into or out of Level 3 for the years ended December 31, 2025 and 2024.
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS
The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from independent third-party valuation service providers and from internal valuation models. Because input information from third parties with respect to certain Level 3 instruments (primarily CLO/ABS) may not be reasonably available to us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities:
(in millions)Fair Value at December 31, 2025Valuation
Technique
Unobservable Input(a)
Range
(Weighted Average)(b)
Assets:
Obligations of states, municipalities and political subdivisions$723 Discounted cash flowYield
5.62% - 5.87% (5.74%)
Corporate debt$701 Discounted cash flowYield
4.92% - 7.62% (5.80%)
RMBS(c)
$2,847 Discounted cash flowPrepayment speed
4.11% - 7.62% (5.87%)
Default rate
0.39% - 1.98% (1.18%)
Yield
5.17% - 6.39% (5.78%)
Loss severity
38.09% - 84.11% (61.10%)
CLO(c)
$1,939 Discounted cash flowYield
5.02% - 6.32% (5.67%)
ABS(c)
$18,129 Discounted cash flowYield
4.64% - 7.24% (5.94%)
CMBS$696 Discounted cash flowYield
3.80% - 19.92% (11.58%)
Market risk benefit assets$2,392 Discounted cash flowEquity volatility
5.85% - 45.85%
Base lapse rate
0.16% - 28.80%
Dynamic lapse multiplier(e)
20.00% - 186.18%
Mortality multiplier(e)(f)
38.25% - 160.01%
Utilization(g)
80.00% - 100.00%
Equity / interest-rate correlation
0.00% - 6.30%
NPA(h)
0.15% - 2.13%
(in millions)Fair Value at December 31, 2025Valuation
Technique
Unobservable Input(a)
Range
(Weighted Average)(b)
Liabilities(d):
Market risk benefit liabilities:
Variable annuities guaranteed benefits$1,651 Discounted cash flowEquity volatility
5.85% - 45.85%
Base lapse rate
0.16% - 28.80%
Dynamic lapse multiplier(e)
20.00% - 186.18%
Mortality multiplier(e)(f)
38.25% - 160.01%
Utilization(g)
80.00% - 100.00%
Equity / interest-rate correlation
0.00% - 6.30%
NPA(h)
0.15% - 2.13%
Fixed annuities guaranteed benefits$1,817 Discounted cash flowBase lapse rate
0.20% - 15.75%
Dynamic lapse multiplier(e)
20.00% - 186.18%
Mortality multiplier(e)(f)
40.26% - 168.43%
Utilization(g)
90.00% - 97.50%
NPA(h)
0.16% - 2.13%
Fixed index annuities guaranteed benefits
$3,841 Discounted cash flowEquity volatility
5.85% - 45.85%
Base lapse rate
0.20% - 60.00%
Dynamic lapse multiplier(e)
20.00% - 186.18%
Mortality multiplier(e)(f)
24.13% - 130.80%
Utilization(g)
60.00% - 97.50%
Option budget
0.00% - 6.00%
Equity / interest-rate correlation
0.00% - 6.30%
NPA(h)
0.16% - 2.13%
Embedded derivatives within Policyholder contract deposits:
Index credits on fixed index annuities(i)
$9,996 Discounted cash flowEquity volatility
5.85% - 45.85%
Base lapse rate
0.20% - 60.00%
Dynamic lapse multiplier(e)
20.00% - 186.18%
Mortality multiplier(e)(f)
24.13% - 130.80%
Utilization(g)
60.00% - 97.50%
Option budget
0.00% - 6.00%
Equity / interest-rate correlation
0.00% - 6.30%
NPA(h)
0.16% - 2.13%
Registered index-linked annuities
$765 Discounted cash flowEquity volatility
5.85% - 45.85%
Base lapse rate
1.00% - 50.00%
Dynamic lapse multiplier(e)
95.00% - 220.00%
Mortality multiplier(e)(f)
96.65% - 147.29%
Utilization(g)
1.70% - 18.09%
Equity / interest-rate correlation
0.00% - 6.30%
NPA(h)
0.16% - 2.13%
Index universal life
$1,261 Discounted cash flowBase lapse rate
0.00% - 37.97%
Mortality rates
0.00% - 100.00%
Equity volatility
5.88% - 20.17%
NPA(h)
0.16% - 2.13%
(in millions)Fair Value at December 31, 2024Valuation
Technique
Unobservable Input(a)
Range
(Weighted Average)(b)
Assets:
Obligations of states, municipalities and political subdivisions$746 Discounted cash flowYield
 5.53% - 5.88% (5.70%)
Corporate debt$1,822 Discounted cash flowYield
 4.94% - 10.38% (7.35%)
RMBS(c)
$2,892 Discounted cash flowPrepayment speed
 3.92% - 8.91% (6.42%)
Default rate
 0.57% - 2.32% (1.45%)
Yield
 5.75% - 6.90% (6.33%)
Loss severity
 40.19% - 80.78% (60.49%)
CLO(c)
$2,104 Discounted cash flowYield
 6.13% - 7.40% (6.77%)
ABS(c)
$15,888 Discounted cash flowYield
5.10% - 7.83% (6.47%)
CMBS$607 Discounted cash flowYield
 4.80% - 20.87% (12.56%)
Market risk benefit assets$1,332 Discounted cash flowEquity volatility
5.85% - 46.05%
Base lapse rate
0.16% - 28.80%
Dynamic lapse multiplier(e)
20.00% - 186.18%
Mortality multiplier(e)(f)
38.25% - 160.01%
Utilization(g)
80.00% - 100.00%
Equity / interest-rate correlation
0.00% - 6.30%
NPA(h)
0.27% - 2.65%
Liabilities(d):
Market risk benefit liabilities:
Variable annuities guaranteed benefits$1,424 Discounted cash flowEquity volatility
5.85% - 46.05%
Base lapse rate
0.16% - 28.80%
Dynamic lapse multiplier(e)
20.00% - 186.18%
Mortality multiplier(e)(f)
38.25% - 160.01%
Utilization(g)
80.00% - 100.00%
Equity / interest-rate correlation
0.00% - 6.30%
NPA(h)
0.27% - 2.65%
Fixed annuities guaranteed benefits$1,359 Discounted cash flowBase lapse rate
0.20% - 15.75%
Dynamic lapse multiplier(e)
20.00% - 186.18%
Mortality multiplier(e)(f)
40.26% - 168.43%
Utilization(g)
90.00% - 97.50%
NPA(g)
0.27% - 2.65%
Fixed index annuities guaranteed benefits$2,833 Discounted cash flowEquity volatility
5.85% - 46.05%
Base lapse rate
0.20% - 50.00%
Dynamic lapse multiplier(e)
20.00% - 186.18%
Mortality multiplier(e)(f)
24.13% - 130.80%
Utilization(g)
60.00% - 97.50%
Option budget
0.00% - 6.00%
Equity / interest-rate correlation
0.00% - 6.30%
NPA(h)
0.27% - 2.65%
Embedded derivatives within Policyholder contract deposits:
Index credits on fixed index annuities(i)
$8,390 Discounted cash flowEquity volatility
5.85% - 46.05%
Base lapse rate
0.20% - 50.00%
Dynamic lapse multiplier(e)
20.00% - 186.18%
Mortality multiplier(e)(f)
24.13% - 130.80%
Utilization(g)
60.00% - 97.50%
Option budget
0.00% - 6.00%
Equity / interest-rate correlation
0.00% - 6.30%
NPA(h)
0.27% - 2.65%
(in millions)Fair Value at December 31, 2024Valuation
Technique
Unobservable Input(a)
Range
(Weighted Average)(b)
Registered index-linked annuities(i)
$17 Discounted cash flowEquity volatility
5.85% - 46.05%
Base lapse rate
1.00% - 50.00%
Dynamic lapse multiplier(e)
95.00% - 220.00%
Mortality multiplier(e)(f)
96.65% - 147.29%
Utilization(g)
1.70% - 18.09%
Equity / interest-rate correlation
0.00% - 6.30%
NPA(h)
0.27% - 2.65%
Index universal life$1,008 Discounted cash flowBase lapse rate
 0.00% - 37.97%
Mortality rates
 0.00% - 100.00%
Equity volatility
 5.85% - 19.63%
NPA(h)
 0.27% - 2.65%
(a)Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities.
(b)The weighted averaging for fixed maturity securities is based on the estimated fair value of the securities. Because the valuation methodology for embedded derivatives within policyholder contract deposits and MRBs uses a range of inputs that vary at the contract level over the cash flow projection period, management believes that presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
(c)Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CLO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us because there are other factors relevant to the fair values of specific tranches owned by us, including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points.
(d)The Fortitude Re funds withheld payable has been excluded from the above table. As discussed in Note 7, the Fortitude Re funds withheld payable is created through modco and funds withheld reinsurance arrangements where the investments supporting the reinsurance agreements are withheld by and continue to reside on Corebridge’s Consolidated Balance Sheets. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by Corebridge. Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the reinsurance agreements that are held on Corebridge’s Consolidated Balance Sheets.
(e)The ranges for these inputs vary due to the different GMWB product specification and policyholder characteristics across in-force policies. Policyholder characteristics that affect these ranges include age, policy duration, and gender.
(f)Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table.
(g)The partial withdrawal utilization unobservable input range shown applies only to policies with GMWB riders.
(h)The NPA applied as a spread over risk-free curve for discounting. The NPA for ceded market risk benefits includes the NPA of CSLR at December 31, 2025.
(i)The fixed index annuities embedded derivative associated with index credits related to the contracts with guaranteed product features included in policyholder contract deposits was $2.0 billion and $1.8 billion at December 31, 2025 and December 31, 2024, respectively.
The ranges of reported inputs for obligations of states, municipalities and political subdivisions, corporate debt, RMBS, CLO/ABS and CMBS valued using a discounted cash flow technique consist of one standard deviation in either direction from the value-weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these Level 3 assets and liabilities.
Interrelationships Between Unobservable Inputs
We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following paragraphs provide a general description of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply.
Fixed Maturity Securities
The significant unobservable input used in the fair value measurement of fixed maturity securities is yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. The yield may be affected by other factors, including constant prepayment rates, loss severity and constant default rates. In general, increases in the yield would decrease the fair value of investments, and conversely, decreases in the yield would increase the fair value of investments.
MRBs and Embedded Derivatives within Policyholder Contract Deposits
For MRBs (including ceded MRBs) and embedded derivatives, the assumptions for unobservable inputs vary throughout the period over which cash flows are projected for valuation purposes. The following are applicable unobservable inputs:
•Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. Increases in assumed volatility will generally increase the fair value of both the projected cash flows from rider fees as well as the projected cash flows related to benefit payments. Therefore, the net change in the fair value of the liability may be either a decrease or an increase, depending on the relative changes in projected rider fees and projected benefit payments.
•Equity and interest rate correlation estimates the relationship between changes in equity returns and interest rates in the economic scenario generator used to value our MRBs. In general, a higher positive correlation assumes that equity markets and interest rates move in a more correlated fashion, which generally increases the fair value of the liability. Only our fixed index annuities with a GMWB rider are subject to the equity and interest correlation assumption. Other policies such as accumulation fixed index annuity and index universal life products do not use a correlation assumption.
•Base lapse rate assumptions are determined by company experience and judgment and are adjusted at the contract level using a dynamic lapse function, which reduces the base lapse rate when the contract is in-the-money (when the contract holder’s guaranteed value, as estimated by the company, is worth more than their underlying account value). Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. Increases in assumed lapse rates will generally decrease the fair value of the liability as fewer policyholders would persist to collect guaranteed benefit amounts.
•Mortality rate assumptions, which vary by age and gender, are based on company experience and include a mortality improvement assumption. Increases in assumed mortality rates will decrease the fair value of the GMWB liability, while lower mortality rate assumptions will generally increase the fair value of the liability because guaranteed withdrawal payments will be made for a longer period of time and generally exceed any decrease in guaranteed death benefits.
•Utilization assumptions estimate the timing when policyholders with a GMWB will elect to utilize their benefit and begin taking withdrawals. The assumptions may vary by the type of guarantee, tax-qualified status, the contract’s withdrawal history and the age of the policyholder. Utilization assumptions are based on company experience, which includes partial withdrawal behavior. Increases in assumed utilization rates will generally increase the fair value of the liability.
•Non-performance or “own credit” risk adjustment used in the valuation of MRBs and embedded derivatives, which reflects a market participant’s view of our claims-paying ability by incorporating a different spread (the “NPA spread”) to the curve used to discount projected cash flows. When corporate credit spreads widen, the change in the NPA spread generally reduces the fair value of the MRBs and embedded derivatives, resulting in a gain in Accumulated other comprehensive income (“AOCI”) or Net realized gains (losses), respectively, and when corporate credit spreads narrow or tighten, the change in the NPA spread generally increases the fair value of the MRBs and embedded derivatives, resulting in a loss in AOCI or Net realized gains (losses), respectively. Additionally, the nonperformance risk assumption includes the counterparty credit risk used in the fair value measurement of ceded market risk benefits associated with reinsurance arrangements for certain individual variable annuities, which is determined using the current market credit spreads based on the counterparty credit rating.
•Policyholder behavior assumptions including lapses, withdrawals, benefit utilization and mortality incorporate a risk margin that a market participant would require to accept the risk and uncertainty of the projected cash flows.
•For embedded derivatives, option budgets estimate the expected long-term cost of options used to hedge exposures associated with index price changes. The level of option budgets determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives.
Embedded Derivatives within Reinsurance Contracts
The fair value of embedded derivatives associated with funds withheld reinsurance contracts is determined based upon a total return swap technique with reference to the fair value of the investments held by Corebridge related to Corebridge’s funds withheld payable. The fair value of the underlying assets is generally based on market observable inputs using industry standard valuation techniques. The valuation also requires certain significant inputs, which are generally not observable, and accordingly, the valuation is considered Level 3 in the fair value hierarchy.
FAIR VALUE OPTION
Under the fair value option, we may elect to measure at fair value financial assets and financial liabilities that are not otherwise required to be carried at fair value. This includes fixed income securities subject to modco agreements with Fortitude Re for which we have elected the fair value option. Subsequent changes in fair value for designated items are reported in earnings. We elect the fair value option for certain hybrid securities given the complexity of bifurcating the economic components associated with the embedded derivatives.
For additional information about how we test various asset classes for impairment see Note 5 and 6.
Additionally, we elect the fair value option for certain alternative investments when such investments are eligible for this election. We believe this measurement basis is consistent with the applicable accounting guidance used by the respective investment company funds themselves.
For additional information on securities and other invested assets for which we have elected the fair value option see Note 5.
The following table presents the gains or losses recorded related to the eligible instruments for which we elected the fair value option:
Years Ended December 31,
Gain (Loss)
(in millions)202520242023
Assets:
Other bond securities(a)
$463 $369 $340 
Alternative investments(b)
445 307 115 
Total assets908 676 455 
Liabilities:
Policyholder contract deposits(c)
(1)4 3 
Total liabilities(1)4 3 
Total gain (loss)$907 $680 $458 
(a)Includes certain securities supporting the funds withheld arrangements with Fortitude Re. For additional information regarding the gains and losses for Other bond securities, see Note 5. For additional information regarding the funds withheld arrangements with Fortitude Re, see Note 7.
(b)Includes certain hedge funds, private equity funds and other investment partnerships.
(c)Represents GICs.
Interest income and dividend income on assets measured under the fair value option are recognized and included in Net investment income in the Consolidated Statements of Income (Loss).
For additional information about our policies for recognition, measurement, and disclosure of interest and dividend income see Note 5.
We are required to record unrealized gains and losses attributable to the observable effect of changes in credit spreads on our liabilities for which the fair value option was elected in Other comprehensive income (loss). We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, our observable credit spreads on these liabilities and other factors that mitigate the risk of non-performance such as cash collateral posted.
We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, our observable credit spreads on these liabilities and other factors that mitigate the risk of non-performance such as cash collateral posted.
FAIR VALUE MEASUREMENTS ON A NON-RECURRING BASIS
We measure the fair value of certain assets on a non-recurring basis, generally quarterly, annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include cost and equity-method investments, commercial mortgage loans and commercial loans, investments in real estate and other fixed assets, goodwill and other intangible assets.
For additional information about how we test various asset classes for impairment see Notes 5 and 6.
The following table presents assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented:
Assets at Fair ValueImpairment Charges
Non-Recurring BasisYears Ended December 31,
(in millions)Level 1Level 2Level 3Total202520242023
December 31, 2025
Other investments$—$—$164$164$61$66$13
Total$—$—$164$164$61$66$13
December 31, 2024
Other investments$—$—$117$117
Total$—$—$117$117
FAIR VALUE INFORMATION ABOUT FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE
Information regarding the estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts and lease contracts) is discussed below:
•Mortgage and other loans receivable: Fair values of loans on commercial real estate and other loans receivable are estimated for disclosure purposes using discounted cash flow calculations based on discount rates that we believe market participants would use in determining the price that they would pay for such assets. For certain loans, our current incremental lending rates for similar types of loans are used as the discount rates, because we believe this rate approximates the rates market participants would use. Fair values of residential mortgage loans are generally determined based on market prices, using market-based adjustments for credit and servicing as appropriate. The fair values of policy loans are generally estimated based on unpaid principal amount as of each reporting date. No consideration is given to credit risk because policy loans are effectively collateralized by the cash surrender value of the policies.
•Other invested assets: Certain of our subsidiaries are members of Federal Home Loan Banks (“FHLBs”) and such membership requires the members to own stock in these FHLBs. The carrying amounts of these stocks approximate fair values.
•Cash and short-term investments: The carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk.
•Other Assets: Primarily represents balances related to reinsurance deposit assets. Fair values for deposit assets are based on discounted cash flow methodologies using significant unobservable inputs.
•Policyholder contract deposits associated with investment-type contracts: Fair values for policyholder contract deposits associated with investment-type contracts not accounted for at fair value are estimated using discounted cash flow calculations based on interest rates currently being offered for similar contracts with maturities consistent with those of the contracts being valued. When no similar contracts are being offered, the discount rate is the appropriate swap rate (if available) or current risk-free interest rate consistent with the currency in which the cash flows are denominated. To determine fair value, other factors include current policyholder account values and related surrender charges and other assumptions include expectations about policyholder behavior and an appropriate risk margin.
•Other liabilities: The majority of the Other liabilities that are financial instruments not measured at fair value represent secured financing arrangements, including repurchase agreements. The carrying amounts of these liabilities approximate fair value because the financing arrangements are short-term and are secured by cash or other liquid collateral.
•Fortitude Re funds withheld payable: The funds withheld payable contains an embedded derivative and the changes in its fair value are recognized in earnings each period. The difference between the total Fortitude Re funds withheld payable and the embedded derivative represents the host contract.
•Short-term and long-term debt and debt of consolidated investment entities: Fair values of these obligations were determined by reference to quoted market prices, when available and appropriate, or discounted cash flow calculations based upon our current market observable implicit credit spread rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued.
•Separate account liabilities—Investment Contracts: Only the portion of separate account liabilities related to products that are investment contracts are reflected in the table below. Separate account liabilities are recorded at the amount credited to the contract holder, which reflects the change in fair value of the corresponding separate account assets, including contract holder deposits less withdrawals and fees; therefore, carrying value approximates fair value.
The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
Estimated Fair Value
(in millions)Level 1Level 2Level 3TotalCarrying
Value
December 31, 2025
Assets:
Mortgage and other loans receivable$— $26 $52,705 $52,731 $54,481 
Other invested assets— — 306 306 306 
Short-term investments— 4,051 — 4,051 4,051 
Cash447 — — 447 447 
Other assets*
— 1 2,189 2,190 2,470 
Liabilities:
Policyholder contract deposits associated with investment-type contracts— 49 159,937 159,986 163,638 
Fortitude Re funds withheld payable— — 19,853 19,853 19,853 
Other liabilities— 4,493 2 4,495 4,493 
Short-term and long-term debt
— 9,119 — 9,119 9,359 
Debt of consolidated investment entities— 27 1,367 1,394 1,547 
Separate account liabilities - investment contracts— 90,864 — 90,864 90,864 
December 31, 2024
Assets:
Mortgage and other loans receivable$— $21 $49,560 $49,581 $52,768 
Other invested assets— 279 — 279 279 
Short-term investments
— 3,542 — 3,542 3,542 
Cash
806 — — 806 806 
Other assets13 1 — 14 14 
Liabilities:
Policyholder contract deposits associated with investment-type contracts— 69 146,345 146,414 151,082 
Fortitude Re funds withheld payable— — 22,068 22,068 22,068 
Other liabilities— 3,027 — 3,027 3,027 
Short-term and long-term debt
— 10,083 — 10,083 10,454 
Debt of consolidated investment entities— 29 1,772 1,801 1,938 
Separate account liabilities - investment contracts— 89,802 — 89,802 89,802 
*    Primarily includes balances related to reinsurance deposit assets.