v3.25.4
Market Risk Benefits
 12 Months Ended
Dec. 31, 2025
Insurance [Abstract]  
Market Risk Benefits
14. Market Risk Benefits
MRBs are defined as contracts or contract features that both provide protection to the policyholder and expose the insurance entity to other-than-nominal capital market risk. The MRB represents an amount that a policyholder receives in addition to the account balance upon the occurrence of a specific event or circumstance, such as death, annuitization, or periodic withdrawal that involves protection from other-than-nominal capital market risk. Certain contract features, such as GMWBs, GMDBs and guaranteed minimum income benefits (“GMIBs”) commonly found in variable annuities, fixed index annuities and fixed annuities, are MRBs. MRBs are assessed at contract inception using a non-option method involving attributed fees that results in an initial fair value of zero or an option method that results in a fair value greater than zero.
MRBs are recorded at fair value, and Corebridge applies a non-option attributed fee valuation method for variable annuity products, and an option-based valuation method (host offset) for fixed index and fixed products. Under the non-option valuation method, the attributed fee is determined at contract inception; it cannot exceed the total contract fees and assessments collectible from the contract holder and cannot be less than zero. Investment margin is excluded from the attributed fee determination. Under the option-based valuation method, an offset to the host amount related to the MRB amount is established at inception. Changes in the fair value of MRBs are recorded in net income in Changes in the fair value of market risk benefits, net except for the portion of the fair value change attributable to our own credit risk, which is recognized in OCI. The change in the fair value of ceded MRBs, including the changes in counterparty credit risk, is recorded in net income in Changes in the fair value of market risk benefits, while the changes in our own credit risk, is recorded in OCI. MRBs are derecognized when the underlying contract is surrendered, a GMDB is incurred, a GMIB is annuitized, or when the account value is exhausted on a policy with a GMWB. Generally when a policyholder elects to annuitize a GMIB rider or the account value on a policy with a GMWB rider is reduced to zero, the policy is converted to a payout annuity automatically. When a conversion occurs, the policyholder is issued a new payout annuity contract. At this point, the MRB is derecognized, and a LFPB is established for the payout annuity.
Assumptions used to determine the MRB asset (including ceded MRBs) or liability generally include mortality rates that are based upon actual experience modified to allow for variations in policy form; lapse rates that are based upon actual experience modified to allow for variations in policy features; and investment returns, based on stochastically generated scenarios. We evaluate at least annually estimates used to determine the MRB asset or liability and adjust the balance, with a related charge or credit to Change in fair value of market risk benefits, net, if actual experience or other evidence suggests that earlier assumptions should be revised. In addition, MRBs are valued such that the current provision for nonperformance risk is reflected in the claims cash flows of the asset or liability valuation for direct MRBs. The nonperformance risk spread at contract issue is locked-in. The difference between the MRB (and ceded MRB) valued using our own at issue and current nonperformance risk spread is reported through Other comprehensive income, while changes in the counterparty credit risk related to ceded MRBs are reported in income.
Changes in the fair value of Market Risk Benefits, net represents changes in the fair value of market risk benefit liabilities and assets (with the exception of our own credit risk changes), and includes attributed rider fees and benefits, net of changes in the fair value of derivative instruments and fixed maturity securities that are used to economically hedge market risk from the variable annuity GMWB riders.
The following table presents the balances of and changes in MRBs:
Individual
Retirement		Group
Retirement		Corporate and OtherTotal
(in millions, except for attained age of contract holders)
Year Ended December 31, 2025
Balance, beginning of year$3,757 $278 $309 $4,344 
Effect of changes in our own credit risk(224)(69)(587)(880)
Balance, beginning of year, before effect of changes in our own credit risk$3,533 $209 $(278)$3,464 
Issuances880 48 6 934 
Interest accrual205 16 (12)209 
Attributed fees— 59 745 804 
Expected claims— (1)(67)(68)
Effect of changes in interest rates(233)(25)(6)(264)
Effect of changes in interest rate volatility18 (4)(85)(71)
Effect of changes in equity markets(26)(43)(850)(919)
Effect of changes in equity index volatility— 5 26 31 
Actual outcome different from model expected outcome93 (18)185 260 
Effect of changes in future expected policyholder behavior76 (9)— 67 
Effect of changes in other future expected assumptions16 4 (44)(24)
Other, including foreign exchange— — — — 
Balance, end of year before effect of changes in our own credit risk4,562 241 (380)4,423 
Effect of changes in our own credit risk556 105 729 1,390 
Balance, end of year5,118 346 349 5,813 
Less: Reinsured MRB, end of year— — (896)(896)
Net Liability Balance after reinsurance recoverable$5,118 $346 $(547)$4,917 
Net amount at risk
GMDB only$— $94 $510 $604 
GMWB only$695 $63 $— $758 
Combined*
$56 $12 $349 $417 
Weighted average attained age of contract holders686473
Individual
Retirement		Group
Retirement		Corporate and OtherTotal
(in millions, except for attained age of contract holders)Individual
Retirement		Group
Retirement		Corporate and OtherTotal
Year Ended December 31, 2024
Balance, beginning of year$3,128 $308 $1,434 $4,870 
Effect of changes in our own credit risk(292)(88)(780)(1,160)
Balance, beginning of year, before effect of changes in our own credit risk$2,836 $220 $654 $3,710 
Issuances924 53 1 978 
Interest accrual151 13 9 173 
Attributed fees— 60 677 737 
Expected claims— (2)(65)(67)
Effect of changes in interest rates(463)(76)(493)(1,032)
Effect of changes in interest rate volatility(10)3 8 1 
Effect of changes in equity markets(4)(94)(1,030)(1,128)
Effect of changes in equity index volatility— — (2)(2)
Actual outcome different from model expected outcome(67)9 65 7 
Effect of changes in future expected policyholder behavior148 26 — 174 
Effect of changes in other future expected assumptions18 — (102)(84)
Other, including foreign exchange— (3)— (3)
Balance, end of year before effect of changes in our own credit risk3,533 209 (278)3,464 
Effect of changes in our own credit risk224 69 587 880 
Balance, end of year3,757 278 309 4,344 
Less: Reinsured MRB, end of year— — (60)(60)
Net liability balance after reinsurance recoverable$3,757 $278 $249 $4,284 
Net amount at risk
GMDB only$— $118 $584 $702 
GMWB only$210 $16 $— $226 
Combined*$65 $12 $368 $445 
Weighted average attained age of contract holders686472
Year Ended December 31, 2023
Balance, beginning of year$2,059 $296 $1,679 $4,034 
Effect of changes in our own credit risk17 (24)(458)(465)
Balance, beginning of year, before effect of changes in our own credit risk$2,076 $272 $1,221 $3,569 
Issuances680 37 1 718 
Interest accrual112 15 44 171 
Attributed fees— 63 803 866 
Expected claims— (3)(91)(94)
Effect of changes in interest rates(29)(13)(110)(152)
Effect of changes in interest rate volatility4 (3)(73)(72)
Effect of changes in equity markets(11)(109)(1,225)(1,345)
Effect of changes in equity index volatility(1)(5)(13)(19)
Actual outcome different from model expected outcome11 7 177 195 
Effect of changes in future expected policyholder behavior(2)1 1 — 
Effect of changes in other future expected assumptions(4)(39)(81)(124)
Other, including foreign exchange— (3)— (3)
Balance, end of year before effect of changes in our own credit risk2,836 220 654 3,710 
Effect of changes in our own credit risk292 88 780 1,160 
Effect of changes in counterparty credit risk— — — — 
Balance, end of year3,128 308 1,434 4,870 
Less: Reinsured MRB, end of year— — (77)(77)
Net liability balance after reinsurance recoverable$3,128 $308 $1,357 $4,793 
Net amount at risk
GMDB only$— $160 $758 $918 
GMWB only$152 $13 $— $165 
Combined*$54 $18 $957 $1,029 
Weighted average attained age of contract holders686471
    
*Certain contracts contain both guaranteed GMDB and GMWB features and are modeled together for the purposes of calculating the MRB.
The following is a reconciliation of MRBs by amounts in an asset position and in a liability position to the MRBs amount in the Consolidated Balance Sheets:
December 31, 2025December 31, 2024
(in millions)Asset*Liability*NetAsset*Liability*Net
Individual Retirement$— $5,118 $5,118 $— $3,757 $3,757 
Group Retirement239 585 346 208 486 278 
Corporate and Other2,153 1,606 (547)1,124 1,373 249 
Total$2,392 $7,309 $4,917 $1,332 $5,616 $4,284 
*Cash flows and attributed fees for MRBs are determined on a policy level basis and are reported based on their asset or liability position at the balance sheet date.
For additional information related to fair value measurements of MRBs, see Note 4.
Actuarial Assumption Updates for Market Risk Benefits
For 2025, Corebridge recognized an unfavorable impact to net income primarily due to utilization updates for fixed annuities with living benefits and certain model refinements in Individual Retirement and Group Retirement. For 2024, Corebridge recognized an unfavorable impact to net income due to policyholder assumptions, including mortality and partial withdrawal updates, partially offset by economic assumptions. For 2023, Corebridge recognized a favorable impact to net income due to policyholder behavior assumptions.
Annuity Guarantees
Annuity contracts may include certain contractually guaranteed benefits to the contract holder. These guaranteed features include GMDBs that are payable in the event of death and living benefits that are payable when partial withdrawals exhaust a policy’s account value, in the event of annuitization, or, in other instances, at specified dates during the accumulation period. Living benefits primarily include GMWBs. A variable annuity contract may include more than one type of guaranteed benefit feature; for example, it may have both a GMDB and a GMWB. However, a policyholder can only receive payout from one guaranteed feature on a contract containing a death benefit and a living benefit, i.e., the features are mutually exclusive (except a surviving spouse who has a rider to potentially collect both a GMDB upon their spouse’s death and a GMWB during their lifetime). A policyholder cannot purchase more than one living benefit on one contract. The net amount at risk for each feature is calculated irrespective of the existence of other features; as a result, the net amount at risk for each feature is not additive to that of other features.
Guaranteed Benefits on Variable Annuities
The GMDB feature may provide a death benefit of either (a) total deposits made to the contract, less any partial withdrawals plus a minimum return (and in rare instances, no minimum return), (b) return of premium whereby the benefit is the greater of the current account value or premiums paid less any partial withdrawals, (c) rollups whereby the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified rates up to specified ages, or (d) the highest contract value attained, typically on any anniversary date less any subsequent withdrawals following the contract anniversary.
Certain of our variable annuity contracts contain GMDB features and may also contain living benefit riders, which include optional GMWBs and, to a lesser extent, guaranteed minimum accumulation benefits (“GMABs”) and GMIBs. The net amount at risk for the GMWB represents benefits in excess of the account value assuming the utilization of all benefits by the contract holders at the balance sheet date. The net amount at risk for the GMDB feature represents the amount of guaranteed benefits in excess of account value if all policyholders died. GMDB is our most widely offered benefit.
The Company issues both individual and group variable annuities which contain guaranteed benefit features, however effective August 1, 2025, AGL reinsured all of its individual variable annuities, including associated market risk benefits, with CSLR through a coinsurance and modco reinsurance agreement. Subsequently, USL reinsured 100% of its in-force individual variable annuity contracts to CSLR on January 1, 2026.
Guaranteed Benefits on Fixed Index and Fixed Annuities
Certain of our fixed annuity and fixed index annuity contracts, which are not offered through separate accounts, contain optional GMWBs. With a GMWB, the contract holder can monetize the excess of the guaranteed amount over the account value of the contract through a series of withdrawals that do not exceed a specific percentage per year of the guaranteed amount. Once the account value is exhausted, the contract holder will receive a series of annuity payments equal to the remaining guaranteed amount; for lifetime GMWB products, the annuity payments continue as long as the covered person(s) is living. The liability for GMWBs in fixed annuity and fixed index annuity contracts, which are recorded in MRBs, represents the expected value of benefits in excess of the projected account value, with the excess (excluding changes in our own credit risk) recognized at fair value through Change in the fair value of MRBs, net.
For a discussion of the fair value measurement of guaranteed benefits that are accounted for as MRBs, see Note 4.