v3.25.4
Derivatives and Hedge Accounting (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Consolidated Balance Sheets:
December 31, 2025December 31, 2024
Gross Derivative
Assets		Gross Derivative LiabilitiesGross Derivative
Assets		Gross Derivative Liabilities
(in millions)Notional
Amount		Fair
Value		Notional
Amount		Fair
Value		Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Derivatives designated as hedging instruments:(a)
Interest rate contracts$11,987$364$9,734$234$2,378$217$11,853$414
Foreign exchange contracts3,8552528,1282367,06255897846
Derivatives not designated as hedging instruments:(a)
Interest rate contracts19,67255225,3971,39946,4482,70336,5753,038
Foreign exchange contracts6,1394596,84731810,3607132,857222
Equity contracts66,7808,38864,8554,90041,0403,04624,1171,546
Credit contracts(b)
——————5—
Other contracts(c)
49,02014212445,01613452
Total derivatives, gross(d)
$157,453$10,029$115,173$7,091$152,304$7,250$76,430$5,268
Counterparty netting(e)
(6,106)(6,106)(4,494)(4,494)
Cash collateral(f)
(3,482)(686)(2,563)(664)
Total derivatives on Consolidated Balance Sheets(g)
$441$299$193$110
(a)Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.
(b)Includes written credit default swaps linked to certain actively traded indices. In the case of a credit event, the maximum future payment is limited to the constituent’s representation within the index.
(c)Consists primarily of stable value wraps and contracts with multiple underlying exposures.
(d)Includes $20.5 billion and $9.4 billion of notional amounts associated with reinsurance agreements at December 31, 2025 and December 31, 2024.
(e)Represents netting of derivative exposures covered by a qualifying master netting agreement.
(f)Represents cash collateral posted and received that is eligible for netting.
(g)Freestanding derivatives only, excludes embedded derivatives. Derivative instrument assets and liabilities are recorded in Other assets and Other liabilities, respectively. The fair value of assets related to bifurcated embedded derivatives were both zero at December 31, 2025 and December 31, 2024. The fair value of liabilities related to bifurcated embedded derivatives was $16.0 billion and $11.8 billion at December 31, 2025 and December 31, 2024, respectively. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in fixed index annuities and index universal life contracts, which include equity and interest rate components; bonds available-for-sale and the funds withheld arrangement with Fortitude Re. For additional information, see Note 7.
The following table presents the gross notional amounts of our derivatives and the fair value of derivative assets and liabilities with related parties and third parties:
December 31, 2025December 31, 2024
Gross Derivative
Assets		Gross Derivative
Liabilities		Gross Derivative
Assets		Gross Derivative
Liabilities
(in millions)Notional
Amount		Fair
Value		Notional
Amount		Fair
Value		Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Total derivatives with related parties$—$—$—$—$2,126$21$—$—
Total derivatives with third parties157,45310,029115,1737,091150,1787,22976,4305,268
Total derivatives, gross$157,453$10,029$115,173$7,091$152,304$7,250$76,430$5,268
As of December 31, 2025 and December 31, 2024, the following amounts were recorded on the Consolidated Balance Sheets related to the carrying amount of the hedged assets (liabilities) and cumulative basis adjustments included in the carrying amount for fair value hedges:
December 31, 2025December 31, 2024
(in millions)Carrying
Amount of the Hedged Assets
(Liabilities)		Cumulative Amount of
Fair Value Hedging
Adjustments Included
In the Carrying Amount
of the Hedged Assets
Liabilities		Carrying
Amount of the Hedged Assets
(Liabilities)		Cumulative Amount of
Fair Value Hedging
Adjustments Included
In the Carrying Amount
of the Hedged Assets
Liabilities
Balance sheet line item in which hedged item is recorded:
Fixed maturities, available-for-sale, at fair value(a)
$11,984 $(7)$6,910 $— 
Commercial mortgage and other loans(b)
$— $(19)$— $(21)
Policyholder contract deposits(c)
$(13,022)$(48)$(8,759)$88 
(a)These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2025, the amortized cost basis of the closed portfolios used in these hedging relationships was $4.0 billion, the amount of the designated hedged item was $2.7 billion, and the cumulative basis adjustment associated with these hedging relationships was $(7) million.
(b)This relates to hedge accounting that has been discontinued, but the respective loans are still held. The cumulative adjustment is being amortized into earnings over the remaining life of the loan.
(c)This relates to fair value hedges on GICs.
The following table presents the gain (loss) recognized in earnings on our derivative instruments in fair value hedging relationships in the Consolidated Statements of Income (Loss):
Gains/(Losses) Recognized in Earnings for:
(in millions)
Hedging
Derivatives(a)(b)
Excluded
Components(b)(c)
Hedged
Items		Net Impact
Year Ended December 31, 2025
Interest rate contracts:
Interest credited to policyholder account balances$134$—$(138)$(4)
Net investment income6—(7)(1)
Foreign exchange contracts:
Realized gains (losses)$(840)$233$840$233
Year Ended December 31, 2024
Interest rate contracts:
Interest credited to policyholder account balances$(118)$—$119$1
Foreign exchange contracts:
Realized gains (losses)$385$4$(385)$4
Year Ended December 31, 2023
Interest rate contracts:
Interest credited to policyholder account balances$86 $—$(98)$(12)
Net investment income——1 1
Foreign exchange contracts:
Realized gains (losses)$(243)$15$243 $15
(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness.
(b)Includes gains and losses with related parties for the years ended December 31, 2025, 2024 and 2023.
(c)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in earnings on a mark-to-market basis.
The following table presents the effect of derivative instruments not designated as hedging instruments in the Consolidated Statements of Income (Loss):
Gains (Losses) Recognized in Earnings
Years Ended December 31,
(in millions)202520242023
By Derivative Type:
Interest rate contracts$(54)$(750)$(397)
Foreign exchange contracts(526)339(215)
Equity contracts431241(120)
Credit contracts10287—
Other contracts626264
Embedded derivatives
(1,915)(984)(1,477)
Fortitude Re funds withheld embedded derivative(1,673)(518)(1,734)
Total(a)
$(3,573)$(1,523)$(3,879)
By Classification:
Policy fees$65$62$64
Net investment income (loss) - Fortitude Re funds withheld assets(21)17(10)
Net realized gains (losses) - excluding Fortitude Re funds withheld assets(b)
(1,173)392(990)
Net realized losses on Fortitude Re funds withheld assets(99)(172)(90)
Net realized losses on Fortitude Re funds withheld embedded derivatives(1,673)(518)(1,734)
Policyholder benefits—(5)—
Change in the Fair value of market risk benefits(c)
(672)(1,299)(1,119)
Total(a)
$(3,573)$(1,523)$(3,879)
(a)Includes gains (losses) with related parties of $0 billion, $0.2 billion and $(1.1) billion for the years ended December 31, 2025, 2024 and 2023, respectively.
(b)Includes a $5 million gain and $13 million loss related to the sale of Laya and AIG Life U.K., reported in net (gain) loss on divestitures for the years ended December 31, 2024 and 2023 respectively.
(c)This represents activity related to derivatives that economically hedge changes in fair value of certain MRBs. Excludes the impact of ceding derivative gains and losses in conjunction with the reinsurance agreements with CSLR. See Note 1 for additional information.