v3.26.1
Fair Value of Assets and Liabilities
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Assets and Liabilities FAIR VALUE OF ASSETS AND LIABILITIES
Fair Value Measurement—Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:
 
Level 1—Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.

Level 2—Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs.

Level 3—Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value.

For a discussion of the Company’s valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 6 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes in the Company’s valuation techniques during the period represented by these Unaudited Interim Consolidated Financial Statements.
Assets and Liabilities by Hierarchy Level—The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

 March 31, 2026
 Level 1Level 2Level 3Netting(1)Total
 (in millions)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies$0 $22,582 $0 $$22,582 
Obligations of U.S. states and their political subdivisions0 5,054 5 5,059 
Foreign government securities
0 47,670 5 47,675 
U.S. corporate public securities0 107,671 64 107,735 
U.S. corporate private securities(2)0 40,781 5,537 46,318 
Foreign corporate public securities0 24,005 39 24,044 
Foreign corporate private securities0 37,579 1,825 39,404 
Asset-backed securities(3)0 16,672 4,942 21,614 
Commercial mortgage-backed securities0 9,031 845 9,876 
Residential mortgage-backed securities0 6,435 109 6,544 
Subtotal0 317,480 13,371 330,851 
Assets supporting experience-rated contractholder liabilities:
U.S. Treasury securities and obligations of U.S. government authorities and agencies0 246 0 246 
Foreign government securities
0 612 0 612 
Corporate securities0 57 0 57 
Equity securities2,156 1,710 0 3,866 
Subtotal2,156 2,625 0 4,781 
Market risk benefit assets0 0 2,166 2,166 
Fixed maturities, trading0 12,916 2,915 15,831 
Equity securities
9,732 2,252 568 12,552 
Commercial mortgage and other loans0 1,225 270 1,495 
Other invested assets(4)37 24,446 1,134 (23,021)2,596 
Short-term investments2,496 3,751 44 6,291 
Cash equivalents620 8,646 0 9,266 
Reinsurance recoverables and deposit receivables0 293 452 745 
Separate account assets(5)(6)9,426 151,769 210 161,405 
Total assets$24,467 $525,403 $21,130 $(23,021)$547,979 
Market risk benefit liabilities$0 $0 $5,000 $$5,000 
Policyholders’ account balances0 0 17,590 17,590 
Reinsurance and funds withheld payables0 78 0 78 
Other liabilities35 37,825 0 (31,459)6,401 
Notes issued by consolidated VIEs0 0 1,330 1,330 
Total liabilities$35 $37,903 $23,920 $(31,459)$30,399 
 December 31, 2025
 Level 1Level 2Level 3Netting(1)Total
 (in millions)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies$0 $22,179 $0 $$22,179 
Obligations of U.S. states and their political subdivisions0 5,460 5 5,465 
Foreign government securities
0 50,609 5 50,614 
U.S. corporate public securities0 107,718 63 107,781 
U.S. corporate private securities(2)0 42,007 5,094 47,101 
Foreign corporate public securities0 23,661 42 23,703 
Foreign corporate private securities0 38,425 1,734 40,159 
Asset-backed securities(3)0 15,227 4,102 19,329 
Commercial mortgage-backed securities0 8,890 853 9,743 
Residential mortgage-backed securities0 5,281 100 5,381 
Subtotal0 319,457 11,998 331,455 
Assets supporting experience-rated contractholder liabilities:
U.S. Treasury securities and obligations of U.S. government authorities and agencies0 245 0 245 
Foreign government securities
0 596 0 596 
Corporate securities0 55 0 55 
Equity securities2,225 1,721 0 3,946 
Subtotal2,225 2,617 0 4,842 
Market risk benefit assets0 0 2,330 2,330 
Fixed maturities, trading0 12,556 2,313 14,869 
Equity securities8,052 2,294 626 10,972 
Commercial mortgage and other loans0 793 263 1,056 
Other invested assets(4)301 25,816 1,088 (24,445)2,760 
Short-term investments116 5,664 1 5,781 
Cash equivalents1,466 11,372 0 12,838 
Reinsurance recoverables and deposit receivables0 206 367 573 
Separate account assets(5)(6)9,419 159,115 211 168,745 
Total assets$21,579 $539,890 $19,197 $(24,445)$556,221 
Market risk benefit liabilities$0 $0 $4,623 $$4,623 
Policyholders’ account balances0 0 18,799 18,799 
Reinsurance and funds withheld payables0 174 0 174 
Other liabilities280 38,877 0 (32,942)6,215 
Notes issued by consolidated VIEs0 0 767 767 
Total liabilities$280 $39,051 $24,189 $(32,942)$30,578 
__________
(1)“Netting” amounts represent cash collateral of $(8,438) million and $(8,497) million as of March 31, 2026 and December 31, 2025, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting agreements.
(2)Excludes notes with fair value of $15,844 million (carrying amount of $15,844 million) and $15,744 million (carrying amount of $15,744 million) as of March 31, 2026 and December 31, 2025, respectively, which have been offset with the associated debt under a netting agreement.
(3)Includes credit-tranched securities collateralized by loan obligations, home equity loans, auto loans, education loans and other asset types.
(4)Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. As of March 31, 2026 and December 31, 2025, the fair value of such investments was $5,931 million and $5,526 million, respectively.
(5)Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and other invested assets. As of March 31, 2026 and December 31, 2025, the fair value of such investments was $27,631 million and $27,506 million, respectively.
(6)Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position.

Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities—The tables below present quantitative information regarding significant internally-priced Level 3 assets and liabilities.
 As of March 31, 2026
Fair ValueValuation
Techniques		Unobservable InputsMinimumMaximumWeighted
Average		Impact of
Increase in
Input on
Fair
Value(1)
 (in millions)
Assets:
Corporate securities(2)(3)$8,331 Discounted
cash flow		Discount rate1.20%31.61%9.14%Decrease
Market comparables
EBITDA multiple(4)
5.5X8.5X6.9XIncrease
LiquidationLiquidation value12.01%77.35%36.82%Increase
Asset backed securities$783 Discounted
cash flow
Discount rate
1.98%10.24%3.88%Decrease
Liquidity premium
2.55%2.60%2.56%Decrease
Commercial mortgage-backed securities$845 Discounted
cash flow		Liquidity premium0.90%0.90%0.90%Decrease
Market risk benefit assets(6)$2,166 Discounted
cash flow		Lapse rate(8)1%20%Increase
Spread over SOFR(9)0.44%1.85%Increase
Utilization rate(10)37%94%Decrease
Withdrawal rateSee table footnote (11) below.
Mortality rate(12)0%16%Increase
Equity volatility curve18%26%Decrease
Equity securities$181 Market comparables
EBITDA multiple(4)
6.0X7.0X6.2XIncrease
Net Asset ValueShare price$3$1,809$750Increase
Commercial mortgage and other loans$270 Discounted
cash flow		Spread1.90%3.10%2.47%Decrease
Reinsurance recoverables and deposit receivables$452 Discounted cash flowLapse rate(8)1%50%Increase
Spread over SOFR(9)0.44%1.82%Increase
Option Budget(13)0%6%Decrease
Liabilities:
Market risk benefit liabilities(6)$5,000 Discounted
cash flow		Lapse rate(8)1%20%Decrease
Spread over SOFR(9)0.44%1.85%Decrease
Utilization rate(10)37%94%Increase
Withdrawal rateSee table footnote (11) below.
Mortality rate(12)0%16%Decrease
   Equity volatility curve18%26% Increase
Policyholders’ account balances(7)$17,502 Discounted
cash flow		Lapse rate(8)0%80%Decrease
Spread over SOFR(9)0.44%1.82%Decrease
Mortality rate(12)0%23%Decrease
Option Budget(13)(1)%6%Increase
Notes issued by consolidated VIEs$517 LiquidationLiquidation value100%100%100%Increase
 As of December 31, 2025
Fair ValueValuation
Techniques		Unobservable InputsMinimumMaximumWeighted
Average		Impact of
Increase in
Input on
Fair
Value(1)
 (in millions)
Assets:
Corporate securities(2)(3)$7,702 Discounted
cash flow		Discount rate1.10%25.50%8.47%Decrease
Market comparables
EBITDA multiple(4)
5.5X8.5X7.5XIncrease
LiquidationLiquidation value12.01%39.00%30.18%Increase
Asset backed securities$1,767 Discounted
cash flow		Discount rate2.10%10.05%6.10%Decrease
Liquidity premium1.50%2.60%1.89%Decrease
Commercial mortgage-backed securities$853 Discounted
cash flow		Liquidity premium0.90%0.90%0.90%Decrease
Market risk benefit assets(6)$2,330 Discounted cash flowLapse rate(8)1%20%Increase
Spread over SOFR(9)0.38%1.61%Increase
Utilization rate(10)37%94%Decrease
Withdrawal rateSee table footnote (11) below.
Mortality rate(12)0%16%Increase
Equity volatility curve15%25%Decrease
Equity securities$214 Discounted
cash flow		Discount rate(5)40%40%Decrease
Market comparables
EBITDA multiple(4)
7.0X7.0X7.0XIncrease
Net Asset ValueShare price$3$1,809$778Increase
Commercial mortgage and other loans$263 Discounted
cash flow		Spread2.15%3.10%2.63%Decrease
Reinsurance recoverables and deposit receivables$367 Discounted cash flowLapse rate(8)1%50%Increase
Spread over SOFR(9)0.38%1.61%Increase
Option Budget(13)0%6%Decrease
Liabilities:
Market risk benefit liabilities(6)$4,623 Discounted
cash flow		Lapse rate(8)1%20%Decrease
Spread over SOFR(9)0.38%1.61%Decrease
Utilization rate(10)37%94%Increase
Withdrawal rateSee table footnote (11) below.
Mortality rate(12)0%16%Decrease
 Equity volatility curve15%25%Increase
Policyholders’ account balances(7)$18,716 Discounted
cash flow		Lapse rate(8)0%80%Decrease
Spread over SOFR(9)0.38%1.61%Decrease
Mortality rate(12)0%23%Decrease
Option Budget(13)(2)%9%Increase
Notes issued by consolidated VIEs$382 LiquidationLiquidation value100%100%100%Increase
___________ 
(1)Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.
(2)Includes assets classified as fixed maturities, available-for-sale, assets supporting experience-rated contractholder liabilities and fixed maturities, trading.
(3)Excludes notes which have been offset with the associated debt under a netting agreement.
(4)Represents multiple of earnings before interest, taxes, depreciation and amortization (“EBITDA”), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments.
(5)For these investments, a range of discount rates is typically used and is therefore a more meaningful representation of the unobservable inputs used in the valuation rather than weighted average.
(6)Market risk benefits primarily represent fair value for all living benefit guarantees including accumulation, withdrawal and income benefits. Since the valuation methodology for these assets and liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
(7)Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life and annuity products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.
(8)Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these balances.
(9)The spread over the secured overnight financing rate (“SOFR”) swap curve represents the premium added to the proxy for the risk-free rate (SOFR) to reflect the Company’s estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees as of March 31, 2026 and December 31, 2025, respectively. This spread includes an estimate of non-performance risk (“NPR”), which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements are insurance liabilities and are therefore senior to debt. Effective April 2023, the Company entered into an agreement with The Ohio National Life Insurance Company, now known as AuguStar Life Insurance Company (“AuguStar”), an affiliate of Constellation Insurance Holdings, Inc., to reinsure approximately $10 billion of account values of PDI traditional variable annuity contracts with guaranteed living benefits. See Note 12 for additional information regarding this transaction. As a result of this transaction, a ceded MRB asset balance was established to fair value the reinsurance reimbursements to the Company. The establishment of the fair value also required an estimate of NPR for AuguStar, which may differ from the Company’s; however, the NPR spreads for AuguStar were developed using a methodology similar to that of the Company.
(10)The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.
(11)The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of both March 31, 2026 and December 31, 2025, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.
(12)The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age and duration. A mortality improvement assumption is also incorporated into the overall mortality table.
(13)Option budget estimates the expected long-term cost of options used to hedge exposures associated with equity price and interest rate changes. The level of option budget determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives.

Interrelationships Between Unobservable Inputs—In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another or multiple inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows:

Corporate Securities—The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increase, credit spreads widen, which results in a decrease in fair value.

Commercial Mortgage-backed Securities—Interrelationships may exist between the prepayment rate, the default rate and/or loss severity, depending on specific market conditions. In stronger economic cycles, prepayment rates are generally driven by underlying property appreciation and subsequent cash-out refinances, while default rates and loss severity may be lower. During weaker economic cycles, prepayment rates may decline, while default rates and loss severity increase. Generally, a change in the assumption used for the probability of default would be accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. The impact of these factors on average life and economics varies with the deal structure and tranche subordination.
Market Risk Benefits—The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money.

Changes in Level 3 Assets and Liabilities—The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods (excluding MRBs disclosed in Note 11). When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.

Three Months Ended March 31, 2026(6)
Fair Value, beginning of periodTotal realized and unrealized gains (losses)PurchasesSalesIssuancesSettlementsOther(1)
Transfers into
Level 3(7)
Transfers out of Level 3(7)
Fair Value, end of period
Unrealized gains (losses) for assets and liabilities still held(2)
(in millions)
Fixed maturities, available-for-sale:
U.S. states$5 $0 $0 $0 $0 $0 $0 $0 $0 $5 $0 
Foreign government5 0 0 0 0 0 0 0 0 5 0 
Corporate securities(3)6,933 (154)686 (94)0 (360)13 469 (28)7,465 (165)
Structured securities(4)5,055 (32)1,298 (54)0 (150)(1)0 (220)5,896 (32)
Other assets:
Fixed maturities, trading2,313 (44)724 (24)0 (41)(1)16 (28)2,915 (49)
Equity securities626 (32)23 (2)0 (14)0 0 (33)568 (28)
Commercial mortgage and other loans
263 0 39 0 26 (58)0 0 0 270 0 
Other invested assets1,088 (1)59 (12)0 0 0 0 0 1,134 (1)
Short-term investments1 (11)26 0 0 28 0 0 0 44 (11)
Cash equivalents0 0 0 0 0 0 0 0 0 0 0 
Reinsurance recoverables and deposit receivables
367 60 44 0 0 (21)2 0 0 452 39 
Separate account assets
211 (4)6 (1)0 (8)0 6 0 210 (4)
Liabilities:
Policyholders’ account balances(5)
(18,799)1,589 0 0 0 (381)1 0 0 (17,590)323 
Other liabilities0 0 0 0 0 0 0 0 0 0 0 
Notes issued by consolidated VIEs(767)(2)0 0 (138)0 (423)0 0 (1,330)(4)
 
Three Months Ended March 31, 2026
Total realized and unrealized gains (losses)
Unrealized gains (losses) for assets and liabilities still held(2)
Realized investment gains (losses), netOther income (loss)Interest credited to policyholders’ account balances
Included in other comprehensive income (losses)
Net investment incomeRealized investment gains (losses), netOther income (loss)Interest credited to policyholders’ account balances
Included in other comprehensive income (losses)
(in millions)
Fixed maturities, available-for-sale$(77)$0 $0 $(111)$2 $(89)$0 $0 $(108)
Other assets:
Fixed maturities, trading0 (44)0 0 0 0 (49)0 0 
Equity securities0 (32)0 0 0 0 (28)0 0 
Commercial mortgage and other loans
0 0 0 0 0 0 0 0 0 
Other invested assets0 (1)0 0 0 0 (1)0 0 
Short-term investments(11)0 0 0 0 (11)0 0 0 
Cash equivalents0 0 0 0 0 0 0 0 0 
Reinsurance recoverables and deposit receivables
60 0 0 0 0 39 0 0 0 
Separate account assets
0 0 (4)0 0 0 0 (4)0 
Liabilities:
Policyholders’ account balances1,589 0 0 0 0 323 0 0 0 
Other liabilities0 0 0 0 0 0 0 0 0 
Notes issued by consolidated VIEs0 (2)0 0 0 0 (4)0 0 


 
Three Months Ended March 31, 2025(6)
Fair Value, beginning of periodTotal realized and unrealized gains (losses)PurchasesSalesIssuancesSettlementsOther(1)
Transfers into
Level 3(7)
Transfers out of Level 3(7)
Fair Value, end of period
Unrealized gains (losses) for assets and liabilities still held(2)
(in millions)
Fixed maturities, available-for-sale:
U.S. states$6 $0 $0 $0 $0 $(1)$0 $0 $0 $5 $0 
Foreign government7 0 0 0 0 (2)0 0 0 5 0 
Corporate securities(3)5,831 (68)868 (350)0 (194)(41)234 (1)6,279 (71)
Structured securities(4)2,333 18 826 (323)0 (65)(362)865 (75)3,217 19 
Other assets:
Fixed maturities, trading1,986 (21)423 (261)0 (252)366 3 (106)2,138 (7)
Equity securities518 (17)154 (23)0 0 0 119 (18)733 (23)
Commercial mortgage and other loans
233 0 0 0 30 0 0 0 0 263 0 
Other invested assets953 (1)14 (1)0 0 0 0 0 965 (1)
Short-term investments461 0 8 (3)0 (4)0 0 0 462 0 
Cash equivalents0 0 1 0 0 0 0 0 0 1 0 
Reinsurance recoverables and deposit receivables613 (4)23 0 0 (18)(233)0 0 381 (21)
Separate account assets
232 (8)60 (34)0 (1)0 4 0 253 (8)
Liabilities:
Policyholders’ account balances(5)
(12,746)1,435 0 0 0 (625)(2)0 0 (11,938)407 
Other liabilities(1)(12)0 0 0 0 0 0 0 (13)(12)
Notes issued by consolidated VIEs(60)0 0 0 (7)0 0 0 0 (67)0 
 
Three Months Ended March 31, 2025
Total realized and unrealized gains (losses)
Unrealized gains (losses) for assets and liabilities still held(2)
Realized investment gains (losses), netOther income (loss)Interest credited to policyholders’ account balances
Included in other comprehensive income (losses)
Net investment incomeRealized investment gains (losses), netOther income (loss)Interest credited to policyholders’ account balances
Included in other comprehensive income (losses)
(in millions)
Fixed maturities, available-for-sale$(19)$0 $0 $(28)$(3)$(22)$0 $0 $(30)
Other assets:
Fixed maturities, trading0 (6)0 0 (15)0 (7)0 0 
Equity securities0 (17)0 0 0 0 (23)0 0 
Commercial mortgage and other loans
0 0 0 0 0 0 0 0 0 
Other invested assets0 (1)0 0 0 0 (1)0 0 
Short-term investments0 0 0 0 0 0 0 0 0 
Cash equivalents0 0 0 0 0 0 0 0 0 
Reinsurance recoverables and deposit receivables(4)0 0 0 0 (21)0 0 0 
Separate account assets
0 0 (8)0 0 0 0 (8)0 
Liabilities:
Policyholders’ account balances1,435 0 0 0 0 407 0 0 0 
Other liabilities(12)0 0 0 0 (12)0 0 0 
Notes issued by consolidated VIEs0 0 0 0 0 0 0 0 0 
__________
(1)“Other” includes additional activity not allocated to the specific categories within the rollforward of Level 3 Assets and Liabilities.
(2)Unrealized gains or losses related to assets and liabilities still held at the end of the period do not include amortization or accretion of premiums and discounts.
(3)Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.
(4)Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.
(5)Issuances and settlements for Policyholders’ account balances are presented net in the rollforward.
(6)Excludes MRB assets of $2,166 million and $2,139 million and MRB liabilities of $5,000 million and $5,021 million for the periods ended March 31, 2026 and 2025, respectively. See Note 11 for additional information.
(7)Transfers into or out of Level 3 are generally reported at the value as of the beginning of the period in which the transfers occur for any such positions still held at the end of the period.
Derivative Fair Value Information
 
The following tables present the balances of certain derivative assets and liabilities measured at fair value on a recurring basis, as of the dates indicated, by the primary underlying risks they are used to manage. These tables include NPR and exclude embedded derivatives. The derivative assets and liabilities shown below are included in “Other invested assets” or “Other liabilities” in the tables contained within the sections “—Assets and Liabilities by Hierarchy Level” and “—Changes in Level 3 Assets and Liabilities,” above.
 As of March 31, 2026
 Level 1Level 2Level 3Netting(1)Total
 (in millions)
Derivative Assets:
Interest Rate$15 $11,041 $0 $$11,056 
Currency0 1,685 0 1,685 
Credit0 56 0 56 
Currency/Interest Rate0 2,016 0 2,016 
Equity22 9,648 0 9,670 
Netting(1)(23,021)(23,021)
Total derivative assets$37 $24,446 $0 $(23,021)$1,462 
Derivative Liabilities:
Interest Rate$6 $25,165 $0 $$25,171 
Currency0 1,621 0 1,621 
Credit0 0 0 0 
Currency/Interest Rate0 1,105 0 1,105 
Equity29 9,934 0 9,963 
Netting(1)(31,459)(31,459)
Total derivative liabilities$35 $37,825 $0 $(31,459)$6,401 

 As of December 31, 2025
 Level 1Level 2Level 3Netting(1)Total
 (in millions)
Derivative Assets:
Interest Rate$7 $11,210 $0 $$11,217 
Currency0 1,384 0 1,384 
Credit0 112 0 112 
Currency/Interest Rate0 1,656 0 1,656 
Equity293 11,454 0 11,747 
Netting(1)(24,445)(24,445)
Total derivative assets$300 $25,816 $0 $(24,445)$1,671 
Derivative Liabilities:
Interest Rate$22 $25,571 $0 $$25,593 
Currency0 1,591 0 1,591 
Credit0 0 0 0 
Currency/Interest Rate0 1,619 0 1,619 
Equity258 10,096 0 10,354 
Netting(1)(32,942)(32,942)
Total derivative liabilities$280 $38,877 $0 $(32,942)$6,215 
__________ 
(1)“Netting” amounts represent cash collateral and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting agreements.

Changes in Level 3 Derivative Assets and Liabilities—The following tables provide a summary of the changes in fair value of Level 3 derivative assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income, attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods.
Three Months Ended March 31, 2026
Fair Value, beginning of periodTotal realized and unrealized gains (losses)(1)PurchasesSalesIssuancesSettlementsOtherTransfers into
Level 3(2)		Transfers out of Level 3(2)Fair Value, end of periodUnrealized gains (losses) for assets still held(1)
(in millions)
Net Derivative - Equity$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 
Net Derivative - Interest Rate0 0 0 0 0 0 0 0 0 0 0 



Three Months Ended March 31, 2025
Fair Value, beginning of periodTotal realized and unrealized gains (losses)(1)PurchasesSalesIssuancesSettlementsOtherTransfers into
Level 3(2)		Transfers out of Level 3(2)Fair Value, end of periodUnrealized gains (losses) for assets still held(1)
(in millions)
Net Derivative - Equity$0 $1 $0 $0 $0 $0 $0 $0 $0 $1 $1 
Net Derivative - Interest Rate0 (13)0 0 0 0 0 0 0 (13)(13)
__________ 
(1)Total realized and unrealized gains (losses) as well as unrealized gains (losses) for assets still held at the end of the period are recorded in “Realized investment gains (losses), net.”
(2)Transfers into or out of Level 3 are generally reported at the value as of the beginning of the period in which the transfers occur for any such positions still held at the end of the period.
Nonrecurring Fair Value Measurements—The following tables represent information for assets measured at fair value on a nonrecurring basis. The fair value measurement is nonrecurring as these assets are measured at fair value only when there is a triggering event (e.g., an evidence of impairment). Assets included in the table are those that were adjusted to fair value during the respective reporting periods and that are still held as of the reporting date. The estimated fair values for these amounts were determined using significant unobservable inputs (Level 3).

Three Months Ended March 31,
20262025
(in millions)
Gains (Losses):
Investment real estate$0 $(12)
Investment in JV/LP and Other
$(5)$0 
Equity securities
$9 $0 

March 31, 2026December 31, 2025
(in millions)
Carrying value after measurement as of period end:
Investment real estate(1)
$0 $45 
Investment in JV/LP and Other(1)
$74 $61 
Equity securities(1)
$32 $92 
__________ 
(1)Reported carrying values for 2026 include values as of the measurement dates of March 31, 2026 for “Investment in JV/LP and Other” and “Equity securities.” Reported carrying values for 2025 include values as of the measurement dates of March 31, 2025 for “Investment real estate,” December 31, 2025 for “Investment in JV/LP and Other” and September 30, 2025 and December 31, 2025 for “Equity securities.”
Fair Value Option
 
The fair value option allows the Company to elect fair value as an alternative measurement for selected financial assets and financial liabilities not otherwise reported at fair value. Such elections have been made by the Company to help mitigate volatility in earnings that result from different measurement attributes. Electing the fair value option also allows the Company to achieve consistent accounting for certain assets and liabilities. Changes in fair value are reflected in “Realized investment gains (losses), net” for commercial mortgage and other loans and “Other income (loss)” for other assets and notes issued by consolidated VIEs. Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Interest income on commercial mortgage and other loans is included in “Net investment income.” Interest income on these loans is recorded based on the effective interest rate as determined at the closing of the loan.
 
The following tables present information regarding assets and liabilities where the fair value option has been elected.

Three Months Ended March 31,
20262025
(in millions)
Commercial mortgage and other loans:
Interest income$8 $8 
Changes in fair value$0 $0 
Notes issued by consolidated VIEs:
Interest expense$8 $0 
Changes in fair value$2 $0 



March 31, 2026December 31, 2025
(in millions)
Commercial mortgage and other loans(1):
Fair value as of period end$1,495 $1,056 
Aggregate contractual principal as of period end$1,485 $1,048 
Other invested assets:
Fair value as of period end$26 $26 
Notes issued by consolidated VIEs:
Fair value as of period end$1,330 $767 
Aggregate contractual principal as of period end$1,330 $767 
__________ 
(1)As of March 31, 2026, for loans for which the fair value option has been elected, none of the loans were 90 days or more past due.
Fair Value of Financial Instruments
 
The tables below present the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.
 March 31, 2026
 Fair ValueCarrying
Amount(1)
 Level 1Level 2Level 3TotalTotal
 (in millions)
Assets:
Commercial mortgage and other loans$0 $13 $62,288 $62,301 $63,917 
Policy loans13 0 9,975 9,988 9,988 
Other invested assets0 93 0 93 93 
Short-term investments625 1 0 626 626 
Cash and cash equivalents6,422 248 0 6,670 6,670 
Accrued investment income0 3,633 0 3,633 3,633 
Reinsurance recoverables and deposit receivables
0 8 7,066 7,074 7,074 
Other assets56 3,401 2 3,459 3,459 
Total assets$7,116 $7,397 $79,331 $93,844 $95,460 
Liabilities:
Policyholders’ account balances—investment contracts$0 $35,871 $48,916 $84,787 $90,343 
Securities sold under agreements to repurchase0 10,975 0 10,975 10,975 
Cash collateral for loaned securities0 8,905 0 8,905 8,905 
Reinsurance and funds withheld payables(2)
0 10,772 (37)10,735 10,735 
Short-term debt
0 910 36 946 946 
Long-term debt(3)
7,263 10,059 457 17,779 18,882 
Notes issued by consolidated VIEs0 0 1,953 1,953 1,953 
Other liabilities0 7,636 31 7,667 7,667 
Separate account liabilities—investment contracts0 22,320 17,545 39,865 39,865 
Total liabilities$7,263 $107,448 $68,901 $183,612 $190,271 
 
 December 31, 2025
 Fair ValueCarrying
Amount(1)
 Level 1Level 2Level 3TotalTotal
 (in millions)
Assets:
Commercial mortgage and other loans$0 $14 $63,164 $63,178 $63,659 
Policy loans12 0 9,946 9,958 9,958 
Other invested assets0 93 0 93 93 
Short-term investments632 1 0 633 633 
Cash and cash equivalents6,652 222 0 6,874 6,874 
Accrued investment income0 3,636 0 3,636 3,636 
Reinsurance recoverables and deposit receivables
0 8 6,710 6,718 6,718 
Other assets37 3,142 2 3,181 3,181 
Total assets$7,333 $7,116 $79,822 $94,271 $94,752 
Liabilities:
Policyholders’ account balances—investment contracts$0 $35,175 $49,931 $85,106 $89,970 
Securities sold under agreements to repurchase0 9,598 0 9,598 9,598 
Cash collateral for loaned securities0 8,700 0 8,700 8,700 
Reinsurance and funds withheld payables(2)
0 10,639 (32)10,607 10,607 
Short-term debt
0 1,408 33 1,441 1,443 
Long-term debt(3)
7,507 10,324 522 18,353 18,856 
Notes issued by consolidated VIEs0 0 1,892 1,892 1,892 
Other liabilities0 6,993 31 7,024 7,024 
Separate account liabilities—investment contracts0 22,548 17,663 40,211 40,211 
Total liabilities$7,507 $105,385 $70,040 $182,932 $188,301 
__________ 
(1)Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.
(2)Includes contracts reinsured through coinsurance with funds withheld agreement with Prismic Life Reinsurance, Ltd (“Prismic Re”) with a fair value of $7,430 million (carrying amount of $7,430 million) and $7,513 million (carrying amount of $7,513 million), a portion of which relates to insurance contracts as of March 31, 2026 and December 31, 2025, respectively. See Note 12 for additional information regarding the reinsurance arrangement with Prismic Re.
(3)Excludes debt with fair value of $15,844 million (carrying amount of $15,844 million) and $15,744 million (carrying amount of $15,744 million) as of March 31, 2026 and December 31, 2025, respectively, which have been offset with the associated notes under a netting agreement.