Variable Interest Entities (Tables) - Consolidated investment entities

12 Months Ended

Dec. 31, 2025

Fair Values of Assets and Liabilities

Schedule of balances of assets and liabilities measured at fair value on a recurring basis

The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:


	December 31, 2025
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	71	$	—	$	71


Syndicated loans	—		2,458		89		2,547
Total investments	—		2,529		89		2,618
Receivables	—		30		—		30

Total assets at fair value	$	—	$	2,559	$	89	$	2,648

Liabilities
Debt (1)	$	—	$	2,585	$	—	$	2,585
Other liabilities	—		159		—		159
Total liabilities at fair value	$	—	$	2,744	$	—	$	2,744


	December 31, 2024
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	50	$	—	$	50
Common stocks	—		2		1		3

Syndicated loans	—		2,216		118		2,334
Total investments	—		2,268		119		2,387
Receivables	—		31		—		31
Other assets	—		2		—		2
Total assets at fair value	$	—	$	2,301	$	119	$	2,420

Liabilities
Debt (1)	$	—	$	2,429	$	—	$	2,429
Other liabilities	—		314		—		314
Total liabilities at fair value	$	—	$	2,743	$	—	$	2,743

(1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.6 billion and $2.4 billion as of December 31, 2025 and 2024, respectively.

Summary of changes in Level 3 assets measured at fair value on a recurring basis

The following tables provide a summary of changes in Level 3 assets held by consolidated investment entities measured at fair value on a recurring basis:


	Common Stocks		Syndicated Loans
	(in millions)
Balance at January 1, 2025	$	1	$	118
Total gains (losses) included in:
Net income	—		(3)		(1)
Purchases	—		145
Sales	—		(84)
Settlements	—		(14)
Transfers into Level 3	—		186
Transfers out of Level 3	(1)		(259)


Balance at December 31, 2025	$	—	$	89

Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2025	$	—	$	(1)	(1)


	Common Stocks			Syndicated Loans
	(in millions)
Balance at January 1, 2024	$	—		$	63
Total gains (losses) included in:
Net income	(1)		(1)	(7)		(1)
Purchases	—			168
Sales	(1)			—
Settlements	—			(5)
Transfers into Level 3	4			103
Transfers out of Level 3	(1)			(204)


Balance at December 31, 2024	$	1		$	118


	Syndicated Loans			Other Assets
	(in millions)
Balance at January 1, 2023	$	125		$	1
Total gains (losses) included in:
Net income	(4)		(1)	—
Purchases	45			—
Sales	(10)			—
Settlements	(16)			—
Transfers into Level 3	122			—
Transfers out of Level 3	(199)			(1)


Balance at December 31, 2023	$	63		$	—

Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2023	$	(1)	(1)	$	—

(1) Included in Net investment income.

Schedule of fair value and unpaid principal balance of loans and debt for which fair value option has been elected

The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected:


	December 31,
	2025		2024
	(in millions)
Syndicated Loans
Unpaid principal balance	$	2,632	$	2,406
Excess unpaid principal over fair value	(85)		(72)
Fair value	$	2,547	$	2,334

Fair value of loans more than 90 days past due	$	1	$	1
Fair value of loans in nonaccrual status	$	1	$	1
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both	$	14	$	5

Debt
Unpaid principal balance	$	2,819	$	2,633
Excess unpaid principal over fair value	(234)		(204)
Carrying value (1)	$	2,585	$	2,429

Schedule of debt and stated interest rates

Debt of the consolidated investment entities and the stated interest rates were as follows:


	Carrying Value				Weighted Average Interest Rate
	December 31,				December 31,
	2025		2024		2025		2024
	(in millions)
Debt of consolidated CLOs due 2030-2038	$	2,585	$	2,429	5.1	%	5.9	%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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