v3.26.1
Derivatives and Hedge Accounting (Tables)
 3 Months Ended
Mar. 31, 2026
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 Condensed Consolidated Balance Sheets:
March 31, 2026December 31, 2025
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$10,260$329$11,756$310$11,987$364$9,734$234
Foreign exchange contracts7,9314292,1031063,8552528,128236
Derivatives not designated as hedging instruments:(a)
Interest rate contracts19,23352025,2951,35119,67255225,3971,399
Foreign exchange contracts8,9355216,0943296,1394596,847318
Equity contracts72,9626,33061,0663,40366,7808,38864,8554,900
Credit contracts(b)
6,500185——————
Other contracts(c)
49,2241858249,020142124
Total derivatives, gross(d)
$175,045$8,332$106,372$5,501$157,453$10,029$115,173$7,091
Counterparty netting(e)
(4,717)(4,717)(6,106)(6,106)
Cash collateral(f)
(2,697)(599)(3,482)(686)
Total Derivatives on Condensed Consolidated Balance Sheets(g)$918$185$441$299
(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 $14.5 billion and $20.5 billion of notional amounts associated with reinsurance agreements at March 31, 2026 and December 31, 2025.
(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. All derivative transactions are with third parties. The fair value of assets related to bifurcated embedded derivatives were both zero at March 31, 2026 and December 31, 2025. The fair value of liabilities related to bifurcated embedded derivatives was $15.4 billion and $16.0 billion at March 31, 2026 and December 31, 2025, respectively. A bifurcated embedded derivative is generally presented with the host contract in the Condensed 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.
As of March 31, 2026 and December 31, 2025, the following amounts were recorded on the Condensed 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:
March 31, 2026December 31, 2025
(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)
$11,316 $(11)$11,984 $(7)
Commercial mortgage and other loans(b)
$— $(18)$— $(19)
Policyholder contract deposits(c)
$(13,627)$3 $(13,022)$(48)
(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 March 31, 2026, 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 $(11) million. 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 $(7) million.
(b)This relates to hedge accounting that has been discontinued, but the respective loans are still held. The cumulative adjustment is being amortized into earnings over the remaining life of the loan.
(c)This relates to fair value hedges on GICs.
The following table presents the gain (loss) recognized in earnings on our derivative instruments in fair value hedging relationships in the Condensed Consolidated Statements of Income (Loss):
Gains/(Losses) Recognized in Earnings for:
(in millions)
Hedging
Derivatives(a)
Excluded
Components(b)
Hedged
Items		Net Impact
Three Months Ended March 31, 2026
Interest rate contracts:
Interest credited to policyholder account balances$(55)$—$54$(1)
Net investment income11—(11)—
Foreign exchange contracts:
Realized gains (losses)$177$83$(177)$83
Three Months Ended March 31, 2025
Interest rate contracts:
Interest credited to policyholder account balances$86$—$(88)$(2)
Foreign exchange contracts:
Realized gains (losses)$(264)$147$264$147
(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness.
(b)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in earnings on a mark-to-market basis.
The following table presents the effect of derivative instruments not designated as hedging instruments in the Condensed Consolidated Statements of Income (Loss):
Gains (Losses) Recognized in Earnings
Three Months Ended March 31,
(in millions)20262025
By Derivative Type:
Interest rate contracts$(124)$(22)
Foreign exchange contracts17(219)
Equity contracts(616)(454)
Credit contracts(110)(69)
Other contracts2316
Embedded derivatives
654246
Fortitude Re funds withheld embedded derivative14(596)
Total
$(142)$(1,098)
By Classification:
Policy fees$16$15
Net investment income (loss) - Fortitude Re funds withheld assets16(2)
Net realized gains (losses) - excluding Fortitude Re funds withheld assets
(222)(728)
Net realized gains on Fortitude Re funds withheld assets2325
Net realized gains (losses) on Fortitude Re funds withheld embedded derivatives14(596)
Policyholder benefits—(2)
Change in the Fair value of market risk benefits *
11190
Total
$(142)$(1,098)
*    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. Starting 2026, the amount presented is ceded to CSLR. See Note 1 for additional information.