Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2025

Fair Value of Assets and Liabilities on a Recurring Basis

The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:


	As of December 31, 2025




	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair
	(Level 1)		(Level 2)		(Level 3)		Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	–	$	56,426	$	7,297	$	63,723
U.S. government bonds	848		19		–		867
State and municipal bonds	–		1,965		–		1,965
Foreign government bonds	–		223		–		223
RMBS	–		1,965		–		1,965
CMBS	–		2,338		85		2,423
ABS	–		12,594		3,584		16,178
Hybrid and redeemable preferred securities	31		128		83		242
Trading securities	–		1,331		329		1,660
Equity securities (1)	233		234		28		495
Mortgage loans on real estate	–		–		199		199
Derivative investments (2)	–		16,001		28		16,029
Other investments – short-term investments	–		193		1		194
MRB assets	–		–		4,753		4,753
Other assets:
Ceded MRBs	–		–		19		19


Indexed annuity ceded embedded derivatives	–		–		2,482		2,482
LPR ceded derivative	–		–		202		202
Separate account assets	383		179,709		–		180,092
Total assets	$	1,495	$	273,126	$	19,090	$	293,711

Liabilities
Policyholder account balances – RILA, fixed annuity
and IUL contracts	$	–	$	–	$	(15,115)	$	(15,115)
Funds withheld reinsurance liabilities –
reinsurance-related embedded derivatives	–		358		(156)		202
MRB liabilities	–		–		(1,118)		(1,118)
Other liabilities:
Ceded MRBs	–		–		(2,884)		(2,884)
Derivative liabilities (2)	–		(6,008)		(136)		(6,144)
Total liabilities	$	–	$	(5,650)	$	(19,409)	$	(25,059)


	As of December 31, 2024




	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair
	(Level 1)		(Level 2)		(Level 3)		Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	–	$	54,945	$	6,888	$	61,833
U.S. government bonds	370		20		–		390
State and municipal bonds	–		2,148		–		2,148
Foreign government bonds	–		233		–		233
RMBS	–		1,702		1		1,703
CMBS	–		1,575		8		1,583
ABS	–		11,677		2,092		13,769
Hybrid and redeemable preferred securities	47		131		63		241
Trading securities	–		1,746		259		2,005
Equity securities	28		232		34		294
Mortgage loans on real estate	–		–		232		232
Derivative investments (2)	–		13,728		3		13,731
Other investments – short-term investments	–		369		23		392
MRB assets	–		–		4,860		4,860
Other assets:
Ceded MRBs	–		–		14		14


Indexed annuity ceded embedded derivatives	–		–		1,970		1,970
LPR ceded derivative	–		–		190		190
Separate account assets	391		168,047		–		168,438
Total assets	$	836	$	256,553	$	16,637	$	274,026

Liabilities
Policyholder account balances – RILA,
fixed annuity and IUL contracts	$	–	$	–	$	(12,449)	$	(12,449)
Funds withheld reinsurance liabilities –
reinsurance-related embedded derivatives	–		787		(59)		728
MRB liabilities	–		–		(1,046)		(1,046)
Other liabilities:
Ceded MRBs	–		–		(2,763)		(2,763)

Derivative liabilities (2)	–		(4,256)		(139)		(4,395)
Total liabilities	$	–	$	(3,469)	$	(16,456)	$	(19,925)

(1) Total investments included in the fair value hierarchy exclude certain closed-end funds that are measured at estimated fair value using the NAV per share (or its equivalent) practical expedient. The estimated fair value of such investments was $134 million as of December 31, 2025.

(2) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty.

The following summarizes the fair value by the fair value hierarchy levels and the carrying amount of our financial instruments not carried at fair value (in millions):


	As of December 31, 2025




	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair		Carrying
	(Level 1)		(Level 2)		(Level 3)		Value		Amount

Assets
Investments:
Mortgage loans on real estate	$	–	$	–	$	21,636	$	21,636	$	22,139
Other investments	–		542		5,887		6,429		6,429
Policy loans	–		2,617		–		2,617		2,617



Liabilities
Policyholder account balances – certain investment contracts	$	–	$	–	$	(36,693)	$	(36,693)	$	(43,774)
Policyholder account balances – funding agreements	–		(3,778)		–		(3,778)		(3,749)

Long-term debt	–		(1,476)		–		(1,476)		(1,426)
Funds withheld reinsurance-related liabilities –
excluding embedded derivatives	–		–		(31,132)		(31,132)		(31,132)


	As of December 31, 2024




	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair		Carrying
	(Level 1)		(Level 2)		(Level 3)		Value		Amount

Assets
Investments:
Mortgage loans on real estate	$	–	$	–	$	19,523	$	19,523	$	20,940
Other investments	–		1,061		5,211		6,272		6,272
Policy loans	–		2,465		–		2,465		2,465



Liabilities
Policyholder account balances – certain investment contracts	$	–	$	–	$	(29,689)	$	(29,689)	$	(39,137)
Short-term debt	–		(24)		–		(24)		(24)
Long-term debt	–		(2,164)		–		(2,164)		(2,173)
Funds withheld reinsurance-related liabilities –
excluding embedded derivatives	–		–		(27,538)		(27,538)		(27,538)

Fair Value Measured on a Recurring Basis Reconciliation

The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in Note 9.


	For the Year Ended December 31, 2025
					Gains		Issuances,		Transfers
	Beginning		Items		(Losses)		Sales,		Into or		Ending
	Asset		Included		in		Maturities,		Out		Asset
	(Liability)		in		OCI		Settlements,		of		(Liability)
	Fair		Net		and		Calls,		Level 3,		Fair
	Value		Income		Other(1)		Net		Net		Value
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	6,888	$	(63)	$	19	$	(238)	$	691	$	7,297


RMBS	1		–		1		67		(69)		–
CMBS	8		–		–		84		(7)		85
ABS	2,092		(29)		55		1,651		(185)		3,584
Hybrid and redeemable preferred
securities	63		–		1		19		–		83
Trading securities	259		7		–		35		28		329
Equity securities	34		(9)		–		1		2		28
Mortgage loans on real estate	232		(3)		4		(34)		–		199
Other investments – short-term investments	23		–		–		(22)		–		1
Other assets:
Ceded MRBs (3)	14		5		–		–		–		19
Indexed annuity ceded embedded
derivatives (4)	1,970		222		–		290		–		2,482
LPR ceded derivative (5)	190		12		–		–		–		202
Liabilities
Policyholder account balances –
RILA, fixed annuity and IUL
contracts (4)	(12,449)		(2,237)		–		(429)		–		(15,115)
Funds withheld reinsurance liabilities –
reinsurance-related embedded derivatives (4)	(59)		(97)		–		–		–		(156)
Other liabilities:
Ceded MRBs (3)	(2,763)		(121)		–		–		–		(2,884)
Derivative liabilities, net	(136)		24		–		4		–		(108)


	For the Year Ended December 31, 2024
					Gains		Issuances,		Transfers
	Beginning		Items		(Losses)		Sales,		Into or		Ending
	Asset		Included		in		Maturities,		Out		Asset
	(Liability)		in		OCI		Settlements,		of		(Liability)
	Fair		Net		and		Calls,		Level 3,		Fair
	Value		Income		Other(1)		Net		Net		Value
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	6,350	$	(3)	$	2	$	696	$	(157)	$	6,888
State and municipal bonds	5		–		–		–		(5)		–

RMBS	1		–		–		–		–		1
CMBS	8		–		–		19		(19)		8
ABS	1,476		2		23		980		(389)		2,092
Hybrid and redeemable preferred
securities	48		–		3		12		–		63
Trading securities	272		2		–		(18)		3		259
Equity securities	36		(3)		–		–		1		34
Mortgage loans on real estate	288		9		1		(66)		–		232

Other investments – short-term investments	–		–		–		13		10		23
Other assets:
Ceded MRBs (3)	274		(260)		–		–		–		14
Indexed annuity ceded embedded
derivatives (4)	940		227		–		803		–		1,970
LPR ceded derivative (5)	206		(16)		–		–		–		190
Liabilities
Policyholder account balances –
RILA, fixed annuity and IUL
contracts (4)	(9,077)		(3,059)		–		(313)		–		(12,449)
Funds withheld reinsurance liabilities –
reinsurance-related embedded derivatives (4)	–		(59)		–		–		–		(59)
Other liabilities:
Ceded MRBs (3)	(1,149)		(1,614)		–		–		–		(2,763)
Derivative liabilities, net	36		(124)		–		3		(51)		(136)


	For the Year Ended December 31, 2023
					Gains		Issuances,		Transfers
	Beginning		Items		(Losses)		Sales,		Into or		Ending
	Asset		Included		in		Maturities,		Out		Asset
	(Liability)		in		OCI		Settlements,		of		(Liability)
	Fair		Net		and		Calls,		Level 3,		Fair
	Value		Income		Other(1)		Net		Net		Value
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	5,017	$	(2)	$	11	$	1,345	$	(21)	$	6,350
State and municipal bonds	35		(4)		4		(30)		–		5

RMBS	1		–		–		5		(5)		1
CMBS	–		–		–		(4)		12		8
ABS	1,117		–		9		733		(383)		1,476
Hybrid and redeemable preferred
securities	34		–		–		(2)		16		48
Trading securities	568		17		–		(313)		–		272
Equity securities	153		(19)		–		(98)		–		36
Mortgage loans on real estate	487		(7)		5		(197)		–		288
Derivative investments, net	2		(13)		–		16		31		36
Other assets:
Ceded MRBs (3)	540		(266)		–		–		–		274
Indexed annuity ceded embedded
derivatives (4)	525		6		–		409		–		940
LPR ceded derivative (5)	212		(6)		–		–		–		206
Liabilities
Policyholder account balances –
RILA, fixed annuity and IUL
contracts (4)	(4,783)		(3,193)		–		(1,101)		–		(9,077)
Other liabilities – ceded MRBs (3)	(246)		(903)		–		–		–		(1,149)

(1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

(2) Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(3) Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(4) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(5) Gains (losses) from the changes in fair value are included in benefits on the Consolidated Statements of Comprehensive Income (Loss).

Schedule of Investment Holdings Movements

The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above:


	For the Year Ended December 31, 2025
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	1,675	$	(1,404)	$	(6)	$	(473)	$	(30)	$	(238)

RMBS	67		–		–		–		–		67
CMBS	99		(15)		–		–		–		84
ABS	2,287		(128)		(10)		(383)		(115)		1,651
Hybrid and redeemable preferred
securities	21		(2)		–		–		–		19
Trading securities	171		(75)		(5)		(54)		(2)		35
Equity securities	14		(13)		–		–		–		1
Mortgage loans on real estate	2		(1)		(30)		(5)		–		(34)
Other investments – short-term investments	11		–		(16)		(17)		–		(22)
Other assets – indexed annuity ceded
embedded derivatives	130		–		–		160		–		290
Liabilities
Policyholder account balances –
RILA, fixed annuity and IUL
contracts	(1,541)		–		–		1,112		–		(429)
Derivative liabilities, net	4		–		–		–		–		4


	For the Year Ended December 31, 2024
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	1,646	$	(371)	$	(2)	$	(576)	$	(1)	$	696



CMBS	19		–		–		–		–		19
ABS	1,438		(82)		–		(319)		(57)		980
Hybrid and redeemable preferred
securities	16		–		–		–		(4)		12
Trading securities	5		1		–		(24)		–		(18)
Equity securities	1		(1)		–		–		–		–
Mortgage loans on real estate	1		(31)		(29)		(7)		–		(66)
Other investments – short-term investments	16		–		(3)		–		–		13
Other assets – indexed annuity ceded
embedded derivatives	134		–		–		669		–		803
Liabilities
Policyholder account balances –
RILA, fixed annuity and IUL
contracts	(1,137)		–		–		824		–		(313)
Other liabilities – derivative liabilities	4		–		(1)		–		–		3


	For the Year Ended December 31, 2023
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	2,030	$	(269)	$	(34)	$	(371)	$	(11)	$	1,345

State and municipal bonds	–		(30)		–		–		–		(30)
RMBS	5		–		–		–		–		5
CMBS	–		–		–		(4)		–		(4)
ABS	971		(2)		–		(230)		(6)		733
Hybrid and redeemable preferred
securities	–		–		–		–		(2)		(2)
Trading securities	–		(231)		–		(82)		–		(313)
Equity securities	1		(99)		–		–		–		(98)
Mortgage loans on real estate	5		–		–		(202)		–		(197)
Derivative investments, net	19		–		(3)		–		–		16
Other assets – indexed annuity ceded
embedded derivatives	404		–		–		5		–		409
Liabilities
Policyholder account balances –
RILA, fixed annuity and IUL
contracts	(1,113)		–		–		12		–		(1,101)

Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings

The following summarizes changes in unrealized gains (losses) included in net income (loss) related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):


	For the Years Ended December 31,
	2025		2024		2023
Investments:
Trading securities (1)	$	2	$	–	$	8
Equity securities (1)	(5)		(1)		(16)
Mortgage loans on real estate (1)	(3)		–		(8)
Derivative investments, net (1)	(35)		(121)		1
MRBs, net (2)	197		904		1,071
Other assets – LPR ceded derivative (3)	13		(16)		(6)
Funds withheld reinsurance liabilities –
reinsurance-related embedded derivatives (1)	(97)		(59)		–
Embedded derivatives – indexed annuity
and IUL contracts, net (1)	915		1,061		(20)

(1) Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(2) Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(3) Included in benefits on the Consolidated Statements of Comprehensive Income (Loss).

Changes in Unrealized Gains (Losses) Included in OCI

The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):


	For the Years Ended December 31,
	2025		2024		2023
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	(14)	$	(23)	$	(6)
State and municipal bonds	–		–		3

ABS	60		(2)		9
Hybrid and redeemable preferred
securities	1		3		1
Mortgage loans on real estate	3		2		4

Components of the Transfers In and Out of Level 3

The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:


	For the Year Ended December 31, 2025
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	828	$	(137)	$	691


RMBS	–		(69)		(69)
CMBS	–		(7)		(7)
ABS	81		(266)		(185)

Trading securities	38		(10)		28
Equity securities	54		(52)		2


	For the Year Ended December 31, 2024
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	29	$	(186)	$	(157)
State and municipal bonds	–		(5)		(5)


CMBS	–		(19)		(19)
ABS	45		(434)		(389)

Trading securities	3		–		3
Equity securities	5		(4)		1
Other investments – short-term investments	10		–		10
Liabilities
Other liabilities – derivative liabilities	–		(51)		(51)


	For the Year Ended December 31, 2023
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	158	$	(179)	$	(21)


RMBS	–		(5)		(5)
CMBS	12		–		12
ABS	8		(391)		(383)
Hybrid and redeemable preferred securities	16		–		16



Derivative investments	31		–		31

Fair Value Inputs Quantitative Information

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2025:


										Weighted
	Fair		Valuation	Significant	Assumption or					Average Input
	Value		Technique	Unobservable Inputs	Input Ranges					Range (1)
Assets
Investments:
Fixed maturity AFS
securities:
Corporate bonds	$	673	Discounted cash flow	Liquidity/duration adjustment (2)	0.0	%	–	6.2	%	1.4	%
ABS	8		Discounted cash flow	Liquidity/duration adjustment (2)	1.1	%	–	1.1	%	1.1	%


CMBS	41		Discounted cash flow	Liquidity/duration adjustment (2)	1.8	%	–	1.9	%	1.8	%
Hybrid and redeemable
preferred securities	40		Discounted cash flow	Liquidity/duration adjustment (2)	1.6	%	–	1.9	%	1.7	%
Equity securities	4		Discounted cash flow	Liquidity/duration adjustment (2)	4.5	%	–	4.5	%	4.5	%
MRB assets	4,753		Discounted cash flow	Lapse (3)	1.0	%	–	30.0	%	(10)
				Utilization of GLB withdrawals (4)	85.0	%	–	100.0	%	93.0	%
				Claims utilization factor (5)	50.0	%	–	100.0	%	(10)
				Premiums utilization factor (5)	80.0	%	–	115.0	%	(10)
				Non-performance risk (6)	0.2	%	–	1.6	%	1.3	%
				Mortality (7)				(9)		(10)
				Volatility (8)	1.0	%	–	27.0	%	15.1	%
Other assets:
Ceded MRBs (11)	19






Indexed annuity
ceded embedded
derivatives	2,482		Discounted cash flow	Lapse (3)	0.0	%	–	9.0	%	(10)
				Mortality (7)				(9)		(10)
LPR ceded
derivative	202		Discounted cash flow	Lapse (3)	0.1	%	–	2.4	%	(10)
				Non-performance risk (6)	0.2	%	–	1.6	%	1.2	%
				Mortality (7)				(9)		(10)
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(15,031)	Discounted cash flow	Lapse (3)	0.0	%	–	9.0	%	(10)
				Mortality (7)				(9)		(10)
MRB liabilities	(1,118)		Discounted cash flow	Lapse (3)	1.0	%	–	30.0	%	(10)
				Utilization of GLB withdrawals (4)	85.0	%	–	100.0	%	93.0	%
				Claims utilization factor (5)	50.0	%	–	100.0	%	(10)
				Premiums utilization factor (5)	80.0	%	–	115.0	%	(10)
				Non-performance risk (6)	0.2	%	–	1.6	%	1.3	%
				Mortality (7)				(9)		(10)
				Volatility (8)	1.0	%	–	27.0	%	15.1	%
Other liabilities – ceded
MRBs (11)	(2,884)

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2024:


										Weighted
	Fair		Valuation	Significant	Assumption or					Average Input
	Value		Technique	Unobservable Inputs	Input Ranges					Range (1)
Assets
Investments:
Fixed maturity AFS
securities:
Corporate bonds	$	185	Discounted cash flow	Liquidity/duration adjustment (2)	0.0	%	–	3.1	%	1.7	%


CMBS	8		Discounted cash flow	Liquidity/duration adjustment (2)	1.9	%	–	1.9	%	1.9	%
ABS	10		Discounted cash flow	Liquidity/duration adjustment (2)	1.3	%	–	1.3	%	1.3	%
Hybrid and redeemable
preferred securities	19		Discounted cash flow	Liquidity/duration adjustment (2)	1.4	%	–	1.9	%	1.8	%
Equity securities	5		Discounted cash flow	Liquidity/duration adjustment (2)	4.5	%	–	4.5	%	4.5	%
MRB assets	4,860		Discounted cash flow	Lapse (3)	1.0	%	–	30.0	%	(10)
				Utilization of GLB withdrawals (4)	85.0	%	–	100.0	%	92.0	%
				Claims utilization factor (5)	60.0	%	–	100.0	%	(10)
				Premiums utilization factor (5)	80.0	%	–	115.0	%	(10)
				Non-performance risk (6)	0.3	%	–	2.0	%	1.6	%
				Mortality (7)				(9)		(10)
				Volatility (8)	1.0	%	–	29.0	%	14.5	%
Other assets:
Ceded MRBs (11)	14
Indexed annuity
ceded embedded
derivatives	1,970		Discounted cash flow	Lapse (3)	0.0	%	–	9.0	%	(10)
				Mortality (7)				(9)		(10)
LPR ceded
derivative	190		Discounted cash flow	Lapse (3)	0.1	%	–	2.0	%	(10)
				Non-performance risk (6)	0.3	%	–	2.0	%	1.4	%
				Mortality (7)				(9)		(10)
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(12,402)	Discounted cash flow	Lapse (3)	0.0	%	–	9.0	%	(10)
				Mortality (7)				(9)		(10)
MRB liabilities	(1,046)		Discounted cash flow	Lapse (3)	1.0	%	–	30.0	%	(10)
				Utilization of GLB withdrawals (4)	85.0	%	–	100.0	%	92.0	%
				Claims utilization factor (5)	60.0	%	–	100.0	%	(10)
				Premiums utilization factor (5)	80.0	%	–	115.0	%	(10)
				Non-performance risk (6)	0.3	%	–	2.0	%	1.6	%
				Mortality (7)				(9)		(10)
				Volatility (8)	1.0	%	–	29.0	%	14.5	%
Other liabilities – ceded
MRBs (11)	(2,763)

(1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted.

(2) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

(3) The lapse input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapses during the surrender charge period.

(4) The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders.

(5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the MRB calculation to estimate the impact of inefficient GLB withdrawal behavior, including taking less than or more than the maximum GLB withdrawal.

(6) The non-performance risk input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The non-performance risk input was weighted by the absolute value of the sensitivity of the reserve to the non-performance risk assumption. The non-performance risk input for LPR ceded derivative was weighted using a simple average.

(7) The mortality input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

(8) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account balance assigned to each index.

(9) The mortality is based on a combination of company and industry experience, adjusted for improvement factors.

(10) A weighted average input range is not a meaningful measurement for lapse, utilization factors or mortality.

(11) The fair value inputs for ceded MRBs are consistent with those used to value MRB assets and liabilities.

Fair Value Option, Disclosures

The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows:


	As of December 31,
	2025		2024
Fair value	$	199	$	232
Aggregate contractual principal	231		263