v3.26.1
Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional and Fair Values
The notional amounts and fair values of derivatives were as follows as of the dates indicated:
March 31, 2026December 31, 2025
Notional
Amount		Asset Fair ValueLiability Fair ValueNotional
Amount		Asset Fair ValueLiability Fair Value
Derivatives: Qualifying for hedge accounting(1)
Fair value hedges(2):
Interest rate contracts(3)
$— $— $— $— $— $— 
Foreign exchange contracts173 2 — 166 — 2 
Cash flow hedges:
Interest rate contracts
12 — — 12 — — 
Foreign exchange contracts
525 14 12 521 9 18 
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts
15,123 185 244 14,815 184 258 
Foreign exchange contracts211 1 3 197 1 2 
Equity contracts206 1 3 248 3 2 
Credit contracts110 — — 75 — — 
Embedded derivatives and Managed custody guarantees ("MCGs"):
Within fixed maturity investments(4)
N/A— — N/A1 — 
Within reinsurance agreements(5)(6)
N/A46 (9)N/A55 (9)
Stabilizer(7)
N/A— 7 N/A— 5 
Total$249 $260 $253 $278 
(1) Open derivative contracts are reported as Derivatives assets or liabilities at fair value on the Condensed Consolidated Balance Sheets.
(2) Total carrying amount of hedged assets and liabilities was $370 and $365 as of March 31, 2026 and December 31, 2025, respectively.
(3) The cumulative amount of fair value hedging adjustments included in the carrying amount of hedged assets and liabilities was $1 and $4 as of March 31, 2026 and December 31, 2025, respectively, of which includes $2 of hedging adjustments on discontinued hedging relationships.
(4) Included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets.
(5) Included in Other liabilities, Other assets and Premium receivable and reinsurance recoverable on the Condensed Consolidated Balance Sheets.
(6) The Company classifies the embedded derivative within the liabilities section as the balance represents an offset to a funds withheld liability.
(7) Included in Contract owner account balances on the Condensed Consolidated Balance Sheets.
N/A - Not applicable
Offsetting Assets and Liabilities
The Company does not offset any derivative assets and liabilities in the Condensed Consolidated Balance Sheets. The disclosures set out in the table below include the fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts subject to master netting agreements or similar agreements as of the dates indicated:
Gross Amount Recognized
Counterparty Netting(1)
Cash Collateral Netting(1)
Securities Collateral Netting(1)
Net Receivables/ Payables
March 31, 2026
Derivative assets
$203 $(192)$(7)$(2)$2 
Derivative liabilities
262 (192)(54)(12)4 
December 31, 2025
Derivative assets
197 (189)(5)— 3 
Derivative liabilities
282 (189)(79)(11)3 
(1) Represents the netting of receivable with payable balances, net of collateral, for the same counterparty under eligible netting agreements.
Effect on Other Comprehensive Income (Loss)
The location and effect of derivatives qualifying for hedge accounting on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income were as follows for the periods indicated:
20262025
Interest Rate ContractsForeign Exchange ContractsInterest Rate ContractsForeign Exchange Contracts
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into IncomeNet investment income
Net investment income and Net gains (losses)
Net investment income
Net investment income and Net gains (losses)
Three Months Ended March 31,
Amount of Gain (Loss) Recognized in Other Comprehensive Income(1)
$— $11 $— $(16)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income— 2 — 2 
(1) See the Accumulated Other Comprehensive Income (Loss) Note to these Condensed Consolidated Financial Statements for additional information.
Effect of Qualifying Hedge Accounting
The location and amount of gain (loss) recognized in the Condensed Consolidated Statements of Operations for derivatives qualifying for hedge accounting were as follows for the periods indicated:
20262025
Net investment income
Net gains (losses)
Net investment income
Net gains (losses)
Three Months Ended March 31,
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded$569 $(45)$560 $(34)
Fair value hedges:
Foreign exchange contracts:
Hedged items— (3)— 4 
Derivatives designated as hedging instruments(1)
— 4 — (4)
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from Accumulated Other Comprehensive Income into income
2 — 2 — 
(1) The change in derivative instruments designated and qualifying as fair value hedges of $1 and $0 were excluded from the assessment of hedge effectiveness and recognized currently in earnings for the three months ended March 31, 2026 and March 31, 2025, respectively.
Effect of Non-Qualifying Hedge Accounting
The location and effect of derivatives not designated as hedging instruments in the Condensed Consolidated Statements of Operations were as follows for the periods indicated:
Location of Gain (Loss) Recognized on Derivative
Three Months Ended March 31,
20262025
Derivatives: Non-qualifying for hedge accounting
Interest rate contractsNet gains (losses)$22 $(47)
Foreign exchange contractsNet gains (losses)(2)5 
Equity contractsNet gains (losses)(7)(7)
Embedded derivatives and MCGs:
Within fixed maturity investmentsNet gains (losses)(1)4 
Within reinsurance agreements(1)
(2)
(9)5 
MCGs
Net gains (losses)— (1)
Stabilizer
Net gains (losses)
(2)4 
Total$1 $(37)
(1) For the three months ended March 31, 2026 and 2025, the amount excluded gains (losses) of $0 and $1, respectively, from standalone derivatives recognized in Net gains (losses).
(2) Gains (losses) on embedded derivatives within reinsurance agreements are recognized in either Policyholder benefits or Net gains (losses).