v3.25.4
Federal Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Federal Income Tax Expense
The federal income tax expense (benefit) on continuing operations (in millions) was as follows:

For the Years Ended December 31,
202520242023
Current$2 $(13)$(255)
Deferred101 465 (418)
Federal income tax expense (benefit)$103 $452 $(673)
Reconciliation of the Effective Tax Rate Differences
A reconciliation of the effective tax rate differences (in millions) was as follows:

For the Years Ended December 31,
2025Percent2024Percent2023Percent
Income (loss) before taxes$1,068 $2,582 $(2,461)
Federal income tax expense (benefit) at
federal statutory rate22421%54221%(517)21%
Effect of:
Tax credits:
Foreign tax credits(48)(4%)(36)(1%)(36)1%
Other tax credits(5)0%(3)0%(4)0%
Nontaxable or nondeductible items:
Tax-preferred investment income (1)
(82)(8%)(32)(1%)(126)5%
Share-based compensation expense2 0%3 0%3 0%
Other nontaxable or nondeductible items12 1%12 0%7 0%
Changes in unrecognized tax benefits– 0%(34)(1%)– 0%
Federal income tax expense (benefit)$103 10%$452 18%$(673)27%
(1) Relates primarily to separate account dividends eligible for the dividends-received deduction.
Federal Income Tax Asset (Liability)
The federal income tax asset (liability) (in millions) was as follows:

As of December 31,
20252024
Current$168 $338 
Deferred(418)(217)
Total federal income tax asset (liability)$(250)$121 
Significant Components of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities (in millions) were as follows:

As of December 31,
20252024
Deferred Tax Assets
Net unrealized loss on fixed maturity AFS securities$1,104 $1,486 
Insurance liabilities and reinsurance-related balances794 318 
Compensation and benefit plans211 197 
Intangibles14 17 
Net unrealized loss on trading securities17 30 
Tax credits206 141 
Net operating losses336 359 
Capital losses69 56 
Deferred gain on reinsurance348 375 
Other23 $– 
Total deferred tax assets$3,122 $2,979 
Deferred Tax Liabilities
DAC and VOBA$1,746 $1,774 
Reinsurance-related embedded derivative assets42 153 
MRB-related activity171 234 
Investment activity1,581 808 
Other– 227 
Total deferred tax liabilities$3,540 $3,196 
Net deferred tax asset (liability)$(418)$(217)
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the gross unrecognized federal tax benefits (in millions) was as follows:

For the Years Ended
December 31,
20252024
Balance as of beginning-of-year$36 $76 
Decreases for prior year tax positions(4)(40)
Increases for prior year tax positions– – 
Balance as of end-of-year$32 $36