The Company reinsures its business through a diversified group of reinsurers. However, the Company remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. Collectability of reinsurance balances are evaluated by monitoring ratings and evaluating the financial strength of its reinsurers. Large reinsurance recoverable balances with offshore or other non-accredited reinsurers are secured through various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit ("LOC").


	Direct		Assumed		Ceded		Total, Net of Reinsurance
March 31, 2026
Assets
Premium receivable	$	206	$	14	$	(259)	$	(39)
Reinsurance recoverable, net of allowance for credit losses	—		—		10,648		10,648
Total	$	206	$	14	$	10,389	$	10,609
Liabilities
Future policy benefits and contract owner account balances	$	45,138	$	3,890	$	—	$	49,028
Total	$	45,138	$	3,890	$	—	$	49,028

December 31, 2025
Assets
Premium receivable	$	189	$	12	$	(241)	$	(40)
Reinsurance recoverable, net of allowance for credit losses	—		—		10,753		10,753
Total	$	189	$	12	$	10,512	$	10,713
Liabilities
Future policy benefits and contract owner account balances	$	45,302	$	4,054	$	—	$	49,356
Total	$	45,302	$	4,054	$	—	$	49,356

Information regarding the effect of reinsurance in the Condensed Consolidated Statements of Operations is as follows for the periods indicated:


	Three Months Ended March 31,
		2026		2025
Premiums:
Direct premiums		$	957	$	958
Reinsurance assumed		11		8
Reinsurance ceded		(224)		(229)
Net premiums		$	744	$	737

Fee income:
Direct fee income		$	680	$	645
Reinsurance assumed		24		26
Reinsurance ceded		(100)		(101)
Net fee income		$	604	$	570

Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders		$	1,204	$	1,154
Reinsurance assumed		25		25
Reinsurance ceded		(410)		(344)
Net interest credited and other benefits to contract owners / policyholders		$	819	$	835

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. As of March 31, 2026 and December 31, 2025, the Company had a deposit asset net of the allowance for credit losses of $0.9 billion which is reported in Other assets on the Condensed Consolidated Balance Sheets. In addition, the Company had a liability for

funds withheld under ceded reinsurance agreements of $110 and $108 as of March 31, 2026 and December 31, 2025, respectively, which was recorded in Other liabilities on the Condensed Consolidated Balance Sheets. The funds withheld asset related to assumed reinsurance was $0.9 billion as of March 31, 2026 and December 31, 2025, which was recorded in Other assets on the Condensed Consolidated Balance Sheets.