Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2026

Fair Value of Assets and Liabilities on a Recurring Basis

The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:


	As of March 31, 2026
	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair
	(Level 1)		(Level 2)		(Level 3)		Value

Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	–	$	65,002	$	3,282	$	68,284
U.S. government bonds	900		19		–		919
State and municipal bonds	–		2,124		–		2,124
Foreign government bonds	–		202		–		202


RMBS	–		2,063		–		2,063
CMBS	–		2,566		103		2,669

ABS	–		13,550		4,153		17,703
Hybrid and redeemable preferred securities	31		123		82		236


Trading securities	–		1,329		223		1,552
Equity securities (1)	38		243		33		314
Mortgage loans on real estate	–		–		198		198
Derivative investments (2)	–		13,436		69		13,505
Other investments – short-term investments	–		165		28		193


MRB assets	–		–		4,303		4,303
Other assets:


Ceded MRBs	–		–		2		2

Indexed annuity ceded embedded derivatives	–		–		1,332		1,332
Separate account assets	367		171,676		–		172,043
Total assets	$	1,336	$	272,498	$	13,808	$	287,642

Liabilities
Policyholder account balances – RILA, fixed annuity

and IUL contracts	$	–	$	–	$	(13,444)	$	(13,444)


Funds withheld reinsurance liabilities – reinsurance-related
embedded derivatives	–		160		(252)		(92)

MRB liabilities	–		–		(1,127)		(1,127)
Other liabilities:
Ceded MRBs	–		–		(329)		(329)
Derivative liabilities (2)	–		(5,145)		(134)		(5,279)
Total liabilities	$	–	$	(4,985)	$	(15,286)	$	(20,271)


	As of December 31, 2025
	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair
	(Level 1)		(Level 2)		(Level 3)		Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	–	$	65,132	$	3,913	$	69,045
U.S. government bonds	849		20		–		869
State and municipal bonds	–		2,147		–		2,147
Foreign government bonds	–		226		–		226
RMBS	–		2,122		–		2,122
CMBS	–		2,417		85		2,502
ABS	–		12,698		3,584		16,282


Hybrid and redeemable preferred securities	32		140		83		255
Trading securities	–		1,347		329		1,676
Equity securities (1)	234		234		33		501



Mortgage loans on real estate	–		–		199		199
Derivative investments (2)	–		16,001		28		16,029
Other investments – short-term investments	–		193		1		194


MRB assets	–		–		4,753		4,753
Other assets:
Ceded MRBs	–		–		2		2

Indexed annuity ceded embedded derivatives	–		–		1,369		1,369
Separate account assets	383		179,709		–		180,092
Total assets	$	1,498	$	282,386	$	14,379	$	298,263

Liabilities
Policyholder account balances – RILA, fixed annuity
and IUL contracts	$	–	$	–	$	(15,115)	$	(15,115)
Funds withheld reinsurance liabilities – reinsurance-related
embedded derivatives	–		145		(434)		(289)

MRB liabilities	–		–		(1,118)		(1,118)




Other liabilities:
Ceded MRBs	–		–		(359)		(359)
Derivative liabilities (2)	–		(6,008)		(136)		(6,144)
Total liabilities	$	–	$	(5,863)	$	(17,162)	$	(23,025)

(1) Total investments included in the fair value hierarchy exclude certain closed-end funds that are measured at estimated fair value using the NAV per share (or its equivalent) practical expedient. The estimated fair value of such investments was $161 million and $135 million as of March 31, 2026, and December 31, 2025, respectively.

(2) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty.

The following summarizes the fair value by the fair value hierarchy levels and the carrying amount of our financial instruments not carried at fair value (in millions):


	As of March 31, 2026
	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair		Carrying
	(Level 1)		(Level 2)		(Level 3)		Value		Amount

Assets
Investments:
Mortgage loans on real estate	$	–	$	–	$	22,057	$	22,057	$	22,627
Other investments	–		1,090		6,261		7,351		7,351
Policy loans	–		2,606		–		2,606		2,606



Liabilities
Policyholder account balances – certain investment
contracts	$	–	$	–	$	(35,870)	$	(35,870)	$	(44,028)
Policyholder account balances – funding agreements	–		(4,364)		–		(4,364)		(4,399)
Short-term debt	–		(397)		–		(397)		(400)
Long-term debt	–		(5,466)		–		(5,466)		(5,969)
Funds withheld reinsurance-related liabilities – excluding
embedded derivatives	–		–		(17,472)		(17,472)		(17,472)


	As of December 31, 2025
	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair		Carrying
	(Level 1)		(Level 2)		(Level 3)		Value		Amount

Assets
Investments:
Mortgage loans on real estate	$	–	$	–	$	21,756	$	21,756	$	22,273
Other investments	–		962		5,759		6,721		6,721
Policy loans	–		2,626		–		2,626		2,626



Liabilities
Policyholder account balances – certain investment
contracts	$	–	$	–	$	(36,710)	$	(36,710)	$	(43,793)
Policyholder account balances – funding agreements	–		(3,778)		–		(3,778)		(3,749)
Short-term debt	–		(399)		–		(399)		(400)
Long-term debt	–		(5,605)		–		(5,605)		(5,866)
Funds withheld reinsurance-related liabilities – excluding
embedded derivatives	–		–		(17,633)		(17,633)		(17,633)

Fair Value Measured on a Recurring Basis Reconciliation

The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in Note 8.


	For the Three Months Ended March 31, 2026
					Gains		Issuances,		Transfers
	Beginning		Items		(Losses)		Sales,		Into or		Ending
	Asset		Included		in		Maturities,		Out		Asset
	(Liability)		in		OCI		Settlements,		of		(Liability)
	Fair		Net		and		Calls,		Level 3,		Fair
	Value		Income		Other (1)		Net		Net		Value
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	3,913	$	(14)	$	(30)	$	133	$	(720)	$	3,282




CMBS	85		–		(1)		28		(9)		103

ABS	3,584		(7)		(39)		607		8		4,153
Hybrid and redeemable preferred
securities	83		–		(1)		–		–		82

Trading securities	329		(2)		–		(82)		(22)		223
Equity securities	33		(3)		–		3		–		33
Mortgage loans on real estate	199		1		(1)		(1)		–		198

Other investments – short-term
investments	1		–		–		27		–		28
Other assets:
Ceded MRBs (3)	2		–		–		–		–		2
Indexed annuity ceded embedded
derivatives (4)	1,369		(19)		–		(18)		–		1,332

Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)	$	(15,115)	$	1,604	$	–	$	67	$	–	$	(13,444)






Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)	(434)		182		–		–		–		(252)
Other liabilities:
Ceded MRBs (3)	(359)		30		–		–		–		(329)
Derivative liabilities, net	(108)		1		–		42		–		(65)


	For the Three Months Ended March 31, 2025
					Gains		Issuances,		Transfers
	Beginning		Items		(Losses)		Sales,		Into or		Ending
	Asset		Included		in		Maturities,		Out		Asset
	(Liability)		in		OCI		Settlements,		of		(Liability)
	Fair		Net		and		Calls,		Level 3,		Fair
	Value		Income		Other (1)		Net		Net		Value
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	2,702	$	(13)	$	(2)	$	104	$	22	$	2,813




RMBS	1		–		–		7		–		8
CMBS	8		–		–		22		–		30
ABS	2,092		(21)		17		473		57		2,618

Hybrid and redeemable preferred
securities	63		–		–		18		–		81


Trading securities	259		2		–		–		20		281
Equity securities	34		(6)		–		7		–		35
Mortgage loans on real estate	232		(1)		2		(1)		–		232
Other investments – short-term
investments	23		–		–		(8)		–		15



Other assets:
Ceded MRBs (3)	2		–		–		–		–		2
Indexed annuity ceded embedded
derivatives (4)	1,115		(24)		–		1		–		1,092
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)	$	(12,449)	$	1,676	$	–	$	(34)	$	–	$	(10,807)




Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)	(234)		(89)		–		–		–		(323)
Other liabilities:
Ceded MRBs (3)	(381)		67		–		–		–		(314)
Derivative liabilities, net	(136)		27		–		–		–		(109)

(1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

(2) Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(3) Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(4) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

Schedule of Investment Holdings Movements

The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above:


	For the Three Months Ended March 31, 2026
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	262	$	(14)	$	–	$	(92)	$	(23)	$	133




CMBS	28		–		–		–		–		28
ABS	793		–		–		(162)		(24)		607







Trading securities	–		(12)		–		(5)		(65)		(82)
Equity securities	3		–		–		–		–		3
Mortgage loans on real estate	–		–		–		(1)		–		(1)
Derivative investments	42		–		–		–		–		42
Other investments – short-term investments	28		–		(1)		–		–		27
Other assets – indexed annuity ceded
embedded derivatives	–		–		–		(18)		–		(18)
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts	$	(359)	$	–	$	–	$	426	$	–	$	67


	For the Three Months Ended March 31, 2025
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	246	$	(45)	$	–	$	(97)	$	–	$	104
RMBS	7		–		–		–		–		7


CMBS	22		–		–		–		–		22

ABS	594		–		(10)		(95)		(16)		473

Hybrid and redeemable preferred
securities	20		(2)		–		–		–		18


Trading securities	50		(42)		–		(8)		–		–
Equity securities	8		(1)		–		–		–		7
Mortgage loans on real estate	–		(1)		–		–		–		(1)

Other investments – short-term investments	2		–		(10)		–		–		(8)
Other assets – indexed annuity ceded
embedded derivatives	27		–		–		(26)		–		1
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts	$	(234)	$	–	$	–	$	200	$	–	$	(34)

Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings

The following summarizes changes in unrealized gains (losses) included in net income (loss) related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):


	For the Three Months Ended March 31,
	2026		2025
Investments:










Trading securities (1)	$	(2)	$	(3)
Equity securities (1)	(4)		(6)
Mortgage loans on real estate (1)	1		(1)
Derivative investments, net (1)	(34)		12

MRBs, net (2)	(994)		(1,299)
Funds withheld reinsurance liabilities –
reinsurance-related embedded derivatives (1)	182		(89)
Embedded derivatives – indexed annuity
and IUL contracts, net (1)	368		169

(1) Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(2) Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

Changes in Unrealized Gains (Losses) Included in OCI

The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):


	For the Three Months Ended March 31,
	2026		2025
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	(38)	$	(10)




CMBS	(1)		–
ABS	(39)		16

Hybrid and redeemable preferred
securities	(1)		–

Mortgage loans on real estate	(1)		2

Components of the Transfers In and Out of Level 3

The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:


	For the Three Months Ended March 31, 2026						For the Three Months Ended March 31, 2025
	Transfers		Transfers				Transfers		Transfers
	Into		Out of				Into		Out of
	Level 3		Level 3		Total		Level 3		Level 3		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	56	$	(776)	$	(720)	$	22	$	–	$	22




CMBS	–		(9)		(9)		–		–		–

ABS	24		(16)		8		57		–		57





Trading securities	–		(22)		(22)		20		–		20

Fair Value Inputs Quantitative Information

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of March 31, 2026:


								Weighted
								Average
	Fair		Valuation	Significant	Assumption or			Input
	Value		Technique	Unobservable Inputs	Input Ranges			Range (1)
Assets
Investments:
Fixed maturity AFS
securities:
Corporate bonds	$	322	Discounted cash flow	Liquidity/duration adjustment (2)	0.0%	–	6.5%	1.9%





ABS	7		Discounted cash flow	Liquidity/duration adjustment (2)	1.6%	–	1.6%	1.6%
CMBS	40		Discounted cash flow	Liquidity/duration adjustment (2)	1.9%	–	2.0%	1.9%
Hybrid and redeemable
preferred securities	40		Discounted cash flow	Liquidity/duration adjustment (2)	1.7%	–	2.0%	1.9%
Equity securities	4		Discounted cash flow	Liquidity/duration adjustment (2)	4.5%	–	4.5%	4.5%

MRB assets	4,303		Discounted cash flow	Lapse (3)	1.0%	–	30.0%	(10)
				Utilization of GLB withdrawals (4)	85.0%	–	100.0%	93.0%
				Claims utilization factor (5)	50.0%	–	100.0%	(10)
				Premiums utilization factor (5)	80.0%	–	115.0%	(10)
				Non-performance risk (6)	0.3%	–	2.3%	1.8%
				Mortality (7)			(9)	(10)
				Volatility (8)	1.0%	–	27.0%	14.9%




Other assets:
Ceded MRBs (11)	2
Indexed annuity
ceded embedded
derivatives	1,332		Discounted cash flow	Lapse (3)	0.0%	–	9.0%	(10)
				Mortality (7)			(9)	(10)
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(13,462)	Discounted cash flow	Lapse (3)	0.0%	–	9.0%	(10)
				Mortality (7)			(9)	(10)

MRB liabilities	(1,127)		Discounted cash flow	Lapse (3)	1.0%	–	30.0%	(10)
				Utilization of GLB withdrawals (4)	85.0%	–	100.0%	93.0%
				Claims utilization factor (5)	50.0%	–	100.0%	(10)
				Premiums utilization factor (5)	80.0%	–	115.0%	(10)
				Non-performance risk (6)	0.3%	–	2.3%	1.8%
				Mortality (7)			(9)	(10)
				Volatility (8)	1.0%	–	27.0%	14.9%
Other liabilities – ceded
MRBs (11)	(329)

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2025:


								Weighted
								Average
	Fair		Valuation	Significant	Assumption or			Input
	Value		Technique	Unobservable Inputs	Input Ranges			Range (1)
Assets
Investments:
Fixed maturity AFS
securities:
Corporate bonds	$	706	Discounted cash flow	Liquidity/duration adjustment (2)	0.0%	–	6.2%	1.4%





ABS	8		Discounted cash flow	Liquidity/duration adjustment (2)	1.1%	–	1.1%	1.1%
CMBS	41		Discounted cash flow	Liquidity/duration adjustment (2)	1.8%	–	1.9%	1.8%
Hybrid and redeemable
preferred securities	40		Discounted cash flow	Liquidity/duration adjustment (2)	1.6%	–	1.9%	1.7%
Equity securities	4		Discounted cash flow	Liquidity/duration adjustment (2)	4.5%	–	4.5%	4.5%

MRB assets	4,753		Discounted cash flow	Lapse (3)	1.0%	–	30.0%	(10)
				Utilization of GLB withdrawals (4)	85.0%	–	100.0%	93.0%
				Claims utilization factor (5)	50.0%	–	100.0%	(10)
				Premiums utilization factor (5)	80.0%	–	115.0%	(10)
				Non-performance risk (6)	0.2%	–	1.6%	1.3%
				Mortality (7)			(9)	(10)
				Volatility (8)	1.0%	–	27.0%	15.1%



Other assets:
Ceded MRBs (11)	2
Indexed annuity
ceded embedded
derivatives	1,369		Discounted cash flow	Lapse (3)	0.0%	–	9.0%	(10)
				Mortality (7)			(9)	(10)
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(15,031)	Discounted cash flow	Lapse (3)	0.0%	–	9.0%	(10)
				Mortality (7)			(9)	(10)

MRB liabilities	(1,118)		Discounted cash flow	Lapse (3)	1.0%	–	30.0%	(10)
				Utilization of GLB withdrawals (4)	85.0%	–	100.0%	93.0%
				Claims utilization factor (5)	50.0%	–	100.0%	(10)
				Premiums utilization factor (5)	80.0%	–	115.0%	(10)
				Non-performance risk (6)	0.2%	–	1.6%	1.3%
				Mortality (7)			(9)	(10)
				Volatility (8)	1.0%	–	27.0%	15.1%
Other liabilities – ceded
MRBs (11)	(359)

(1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted.

(2) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

(3) The lapse input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapses during the surrender charge period.

(4) The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders.

(5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the MRB calculation to estimate the impact of inefficient GLB withdrawal behavior, including taking less than or more than the maximum GLB withdrawal.

(6) The non-performance risk input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The non-performance risk input was weighted by the absolute value of the sensitivity of the reserve to the non-performance risk assumption.

(7) The mortality input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

(8) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account balance assigned to each index.

(9) The mortality is based on a combination of company and industry experience, adjusted for improvement factors.

(10) A weighted average input range is not a meaningful measurement for lapse, utilization factors or mortality.

(11) The fair value inputs for ceded MRBs are consistent with those used to value MRB assets and liabilities.

Fair Value Option

The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows:


	As of March 31,		As of December 31,
	2026		2025

Fair value	$	198	$	199
Aggregate contractual principal	229		231