Market Risk Benefits (Tables)

3 Months Ended

Mar. 31, 2026

Balances of and changes in market risk benefits

The following tables summarize the balances of and changes in market risk benefits:


	Three Months Ended March 31,
		2026		2025
		(in millions, except age)
Balance at beginning of period		$	(1,092)	$	(919)
Issuances		7		5
Interest accrual and time decay		(21)		(18)
Reserve increase from attributed fees collected		177		181
Reserve release for benefit payments and derecognition		(3)		(2)
Effect of changes in interest rates and bond markets		(5)		269
Effect of changes in equity markets and subaccount performance		297		322
Effect of changes in equity index volatility		83		25
Actual policyholder behavior different from expected behavior		20		25
Effect of changes in future expected assumptions		—		(1)

Effect of changes in the instrument-specific credit risk on market risk benefits		(38)		(1)
Balance at end of period		$	(575)	$	(114)

Reconciliation of the gross balances in an asset or liability position:
Asset position		$	1,934	$	1,742
Liability position		(1,359)		(1,628)
Net asset (liability) position		$	575	$	114

Guaranteed benefit amount in excess of current account balances (net amount at risk):
Death benefits		$	424	$	626
Living benefits		$	2,379	$	2,761
Composite (greater of)		$	2,773	$	3,318

Weighted average attained age of contractholders		70		69

Changes in unrealized (gains) losses in net income relating to liabilities held at end of period		$	347	$	603
Changes in unrealized (gains) losses in other comprehensive income (loss) relating to liabilities held at end of period		$	(37)	$	—


	Year Ended December 31,
	2025
	(in millions, except age)





Balance at beginning of period	$	(919)
Issuances	23
Interest accrual and time decay	(116)
Reserve increase from attributed fees collected	761
Reserve release for benefit payments and derecognition	(9)
Effect of changes in interest rates and bond markets	(51)
Effect of changes in equity markets and subaccount performance	(1,006)
Effect of changes in equity index volatility	90
Actual policyholder behavior different from expected behavior	68
Effect of changes in future expected assumptions	93

Effect of changes in the instrument-specific credit risk on market risk benefits	(26)
Balance at end of period	$	(1,092)

Reconciliation of the gross balances in an asset or liability position:
Asset position	$	2,274
Liability position	(1,182)
Net asset (liability) position	$	1,092

Guaranteed benefit amount in excess of current account balances (net amount at risk):
Death benefits	$	291
Living benefits	$	1,811
Composite (greater of)	$	2,084

Weighted average attained age of contractholders	70

Changes in unrealized (gains) losses in net income relating to liabilities held at end of period	$	(966)
Changes in unrealized (gains) losses in other comprehensive income (loss) relating to liabilities held at end of period	$	(20)

Significant inputs and assumptions used in the fair value measurements

The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits:


	March 31, 2026
	Fair Value		Valuation Technique	Significant Inputs and Assumptions	Range			Weighted Average
	(in millions)










Market risk benefits	$	(575)	Discounted cash flow	Utilization of guaranteed withdrawals (1)	0.0%	–	52.8%	12.1%
				Surrender rate (2)	0.4%	–	72.1%	3.6%
				Market volatility (3)	0.0%	–	25.9%	12.0%
				Nonperformance risk (4)	75 bps			75 bps
				Mortality rate (5)	0.0%	–	41.6%	1.7%


	December 31, 2025
	Fair Value		Valuation Technique	Significant Inputs and Assumptions	Range			Weighted Average
	(in millions)










Market risk benefits	$	(1,092)	Discounted cash flow	Utilization of guaranteed withdrawals (1)	0.0%	–	52.8%	12.2%
				Surrender rate (2)	0.4%	–	75.0%	3.6%
				Market volatility (3)	0.0%	–	24.9%	11.2%
				Nonperformance risk (4)	65 bps			65 bps
				Mortality rate (5)	0.0%	–	41.6%	1.8%

(1) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals.

(2) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract.

(3) Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit.

(4) The nonperformance risk is the spread added to the U.S. Treasury curve.

(5) The weighted average mortality rate represents the average assumption weighted based on the account value of each contract.

The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:


	March 31, 2026
	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	708	Discounted cash flow	Yield/spread to U.S. Treasuries (1)	0.9%	–	1.7%	1.2%
Asset backed securities	$	1	Discounted cash flow	Annual short-term default rate (2)	3.0%			3.0%
				Annual long-term default rate (2)	3.5%			3.5%
				Discount rate	15.0%			15.0%
				Constant prepayment rate	20.0%			20.0%
				Loss recovery	60.0%			60.0%
Fixed deferred indexed annuity ceded embedded derivatives	$	53	Discounted cash flow	Surrender rate (3)	0.5%	–	93.5%	9.0%
Fixed deferred indexed annuity embedded derivatives	$	52	Discounted cash flow	Surrender rate (3)	0.5%	–	93.5%	9.0%
				Nonperformance risk (4)	75 bps			75 bps
IUL embedded derivatives	$	1,002	Discounted cash flow	Nonperformance risk (4)	75 bps			75 bps




Structured variable annuity embedded derivatives	$	3,226	Discounted cash flow	Surrender rate (3)	0.5%	–	74.5%	2.2%
				Nonperformance risk (4)	75 bps			75 bps
Contingent consideration liabilities	$	78	Discounted cash flow	Discount rate (5)	0.0%	–	10.5%	2.2%


	December 31, 2025
	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted Average
	(in millions)
Corporate debt securities (private placements)	$	708	Discounted cash flow	Yield/spread to U.S. Treasuries (1)	0.9%	–	1.6%	1.2%
Asset backed securities	$	1	Discounted cash flow	Annual short-term default rate (2)	3.0%			3.0%
				Annual long-term default rate (2)	3.5%			3.5%
				Discount rate	15.0%			15.0%
				Constant prepayment rate	20.0%			20.0%
				Loss recovery	60.0%			60.0%
Fixed deferred indexed annuity ceded embedded derivatives	$	59	Discounted cash flow	Surrender rate (3)	0.5%	–	89.8%	5.1%
Fixed deferred indexed annuity embedded derivatives	$	58	Discounted cash flow	Surrender rate (3)	0.5%	–	89.8%	5.1%
				Nonperformance risk (4)	65 bps			65 bps
IUL embedded derivatives	$	1,042	Discounted cash flow	Nonperformance risk (4)	65 bps			65 bps




Structured variable annuity embedded derivatives	$	3,879	Discounted cash flow	Surrender rate (3)	0.5%	–	75.0%	2.0%
				Nonperformance risk (4)	65 bps			65 bps
Contingent consideration liabilities	$	71	Discounted cash flow	Discount rate (5)	0.0%	–	10.5%	2.4%

(1) The weighted average for the yield/spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.

(2) The weighted average annual default rates of asset backed securities is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.

(3) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract.

(4) The nonperformance risk is the spread added to the U.S. Treasury curve.

(5) The weighted average discount rate represents the average discount rate across all contingent consideration liabilities, weighted based on the size of the contingent consideration liability.