| Schedule of Effects of Reinsurance |
The following table presents premiums earned and policy fees for our long-duration life insurance and annuity operations: | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | | | | | | (in millions) | 2025 | | 2024 | | 2023 | | Premiums | | | | | | | Direct | $ | 4,373 | | $ | 4,075 | | $ | 4,706 | Assumed* | 2,152 | | 1,320 | | 4,111 | | Ceded | (661) | | (795) | | (1,126) | | Net | $ | 5,864 | | $ | 4,600 | | $ | 7,691 | | Policy Fees | | | | | | | Direct | $ | 2,991 | | $ | 2,978 | | $ | 2,873 | | Assumed | — | | — | | — | | Ceded | (258) | | (77) | | (76) | | Net | $ | 2,733 | | $ | 2,901 | | $ | 2,797 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
* Assumed premiums includes premium from pension risk transfer agreements of $2.2 billion, $1.3 billion, and $4.1 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
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| Schedule of Assets Supporting Funds Withheld Arrangements |
There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | | | | (in millions) | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | | Corresponding Accounting Policy | Fixed maturity securities - available-for-sale | | $ | 12,739 | | $ | 12,739 | | $ | 13,254 | | $ | 13,254 | | Fair value through other comprehensive income | | Fixed maturity securities - fair value option | | 4,982 | | 4,982 | | 4,914 | | 4,914 | | Fair value through net investment income | | Commercial mortgage loans | | 2,745 | | 2,594 | | 3,224 | | 2,983 | | Amortized cost | | Real estate investments | | 118 | | 165 | | 158 | | 227 | | Amortized cost | | Private equity funds/hedge funds | | 1,800 | | 1,800 | | 1,893 | | 1,893 | | Fair value through net investment income | | Policy loans | | 302 | | 302 | | 315 | | 315 | | Amortized cost | | Short-term Investments | | 399 | | 399 | | 274 | | 274 | | Fair value through net investment income | | Funds withheld investment assets | | 23,085 | | 22,981 | | 24,032 | | 23,860 | | | Derivative assets, net(a) | | — | | — | | 2 | | 2 | | Fair value through realized gains (losses) | Other(b) | | 667 | | 667 | | 429 | | 429 | | Amortized cost | | Total | | $ | 23,752 | | $ | 23,648 | | $ | 24,463 | | $ | 24,291 | | |
(a)The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $0 million and $615 million, respectively, as of December 31, 2025. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $7 million and $182 million, respectively, as of December 31, 2024. These derivative assets and liabilities are fully collateralized either by cash or securities. (b)Primarily comprised of Cash and Accrued investment income. The impact of the funds withheld arrangements with Fortitude Re was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | (in millions) | | | | | | 2025 | | 2024 | | 2023 | | Net investment income - Fortitude Re funds withheld assets | | | | | | $ | 1,332 | | $ | 1,370 | | $ | 1,368 | | Net realized losses on Fortitude Re funds withheld assets: | | | | | | | | | | | | Net realized losses Fortitude Re funds withheld assets | | | | | | (100) | | (248) | | (224) | | Net realized losses Fortitude Re funds withheld embedded derivatives | | | | | | (1,673) | | (518) | | (1,734) | | Net realized losses - Fortitude Re funds withheld assets | | | | | | (1,773) | | (766) | | (1,958) | | Income (loss) before income tax expense (benefit) | | | | | | (441) | | 604 | | (590) | | Income tax expense (benefit)* | | | | | | (93) | | 127 | | (124) | | Net income (loss) | | | | | | (348) | | 477 | | (466) | | Change in unrealized appreciation (depreciation) of the invested assets supporting the Fortitude Re modco arrangement classified as available-for-sale* | | | | | | 296 | | | (402) | | 491 | | Comprehensive income (loss) | | | | | | $ | (52) | | $ | 75 | | $ | 25 |
*The income tax expense (benefit) and the tax impact in OCI was computed using the U.S. statutory tax rate of 21%.
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