Derivatives (Tables)

3 Months Ended

Mar. 31, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table presents the primary underlying risk exposure, gross notional amount and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at:


		March 31, 2026						December 31, 2025
				Estimated Fair Value						Estimated Fair Value
	Primary Underlying Risk Exposure	Gross Notional Amount		Assets		Liabilities		Gross Notional Amount		Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate swaps	Interest rate	$	4,761	$	924	$	684	$	4,924	$	923	$	706
Foreign currency swaps	Foreign currency exchange rate	3,342		75		15		1,607		33		22

Subtotal		8,103		999		699		6,531		956		728
Cash flow hedges:
Interest rate swaps	Interest rate	3,773		1		248		4,002		—		267
Interest rate forwards	Interest rate	4,085		2		1,030		4,389		16		1,049
Foreign currency swaps	Foreign currency exchange rate	47,437		2,490		1,953		47,097		2,358		2,184
Subtotal		55,295		2,493		3,231		55,488		2,374		3,500
Net investment in a foreign operation (“NIFO”) hedges:
Foreign currency forwards	Foreign currency exchange rate	1,263		48		3		1,052		32		10
Currency options	Foreign currency exchange rate	3,000		298		—		3,000		264		—
Subtotal		4,263		346		3		4,052		296		10
Total qualifying hedges		67,661		3,838		3,933		66,071		3,626		4,238
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	25,514		1,420		1,503		24,623		1,409		1,434
Interest rate floors	Interest rate	6,140		45		—		5,640		34		—
Interest rate caps	Interest rate	14,898		69		1		14,898		48		1
Interest rate futures	Interest rate	1,703		2		3		1,679		1		3
Interest rate options	Interest rate	22,704		160		105		23,820		155		130
Interest rate forwards	Interest rate	1,958		—		231		2,731		16		176

Synthetic GICs	Interest rate	52,257		—		—		52,664		—		—
Foreign currency swaps	Foreign currency exchange rate	10,798		1,241		134		10,210		1,167		175
Foreign currency forwards	Foreign currency exchange rate	15,893		110		762		15,694		85		1,012
Currency futures	Foreign currency exchange rate	287		3		—		292		—		1

Credit default swaps — purchased	Credit	2,684		3		50		2,739		2		58
Credit default swaps — written	Credit	14,754		197		1		8,873		153		1
Equity futures	Equity market	1,129		23		12		1,380		5		2
Equity index options	Equity market	17,639		450		257		16,253		337		281
Equity variance swaps	Equity market	96		—		1		96		—		2
Equity total return swaps	Equity market	2,336		104		—		2,413		7		34
Longevity swaps	Longevity	1,000		—		—		1,000		—		—
Total non-designated or nonqualifying derivatives		191,790		3,827		3,060		185,005		3,419		3,310
Total		$	259,451	$	7,665	$	6,993	$	251,076	$	7,045	$	7,548

Included in the table above, the Company uses various over-the-counter (“OTC”) and exchange traded derivatives to hedge variable annuity guarantees. The table below presents the gross notional amount, estimated fair value and primary underlying risk exposure of the derivatives hedging variable annuity guarantees accounted for as MRBs:


	March 31, 2026						December 31, 2025
			Estimated Fair Value						Estimated Fair Value
Primary Underlying Risk Exposure	Gross Notional Amount		Assets		Liabilities		Gross Notional Amount		Assets		Liabilities
	(In millions)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	$	8,503	$	11	$	535	$	8,450	$	10	$	524
Foreign currency exchange rate	255		1		2		328		2		9
Equity market	2,719		198		89		2,844		152		104
	$	11,477	$	210	$	626	$	11,622	$	164	$	637

The Effects of Derivatives on the Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

The following table presents the interim condensed consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, NIFO, nonqualifying hedging relationships and embedded derivatives:


	Three Months Ended March 31, 2026
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to PABs		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	—	$	—	N/A		$	(6)	$	(14)	$	—	N/A
Hedged items	—		—		N/A		2		14		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	(24)		—		N/A		—		(7)		—		N/A
Hedged items	24		—		N/A		—		7		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		—		N/A		—		—		—		66
Subtotal	—		—		N/A		(4)		—		—		66
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	(10)
Amount of gains (losses) reclassified from AOCI into income	1		1		—		—		—		—		(2)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		449
Amount of gains (losses) reclassified from AOCI into income	1		(249)		—		—		—		—		248
Foreign currency transaction gains (losses) on hedged items	—		240		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		—
Amount of gains (losses) reclassified from AOCI into income	—		—		—		—		—		—		—
Subtotal	2		(8)		—		—		—		—		685
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		—		N/A		N/A		N/A		N/A		68
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		4
Subtotal	N/A		—		N/A		N/A		N/A		N/A		72
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	—		N/A		(92)		N/A		N/A		N/A		N/A
Foreign currency exchange rate derivatives (1)	—		N/A		(45)		N/A		N/A		N/A		N/A
Credit derivatives — purchased (1)	—		N/A		5		N/A		N/A		N/A		N/A
Credit derivatives — written (1)	—		N/A		(62)		N/A		N/A		N/A		N/A
Equity derivatives (1)	16		N/A		(51)		N/A		N/A		N/A		N/A
Foreign currency transaction gains (losses) on hedged items	—		N/A		(8)		N/A		N/A		N/A		N/A
Subtotal	16		N/A		(253)		N/A		N/A		N/A		N/A
Earned income on derivatives	87		—		100		7		(39)		—		—
Synthetic GICs	N/A		N/A		19		N/A		N/A		N/A		N/A
Embedded derivatives - ceded reinsurance	N/A		N/A		191		N/A		N/A		N/A		N/A
Embedded derivatives - other	N/A		N/A		17		N/A		N/A		N/A		N/A
Total	$	105	$	(8)	$	74	$	3	$	(39)	$	—	$	823


	Three Months Ended March 31, 2025
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to PABs		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	(1)	$	—	N/A		$	75	$	42	$	—	N/A
Hedged items	1		—		N/A		(79)		(40)		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	(10)		8		N/A		—		36		—		N/A
Hedged items	10		(6)		N/A		—		(36)		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		(3)		N/A		—		—		—		N/A
Subtotal	—		(1)		N/A		(4)		2		—		N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	113
Amount of gains (losses) reclassified from AOCI into income	17		—		—		—		—		—		(17)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		121
Amount of gains (losses) reclassified from AOCI into income	2		360		—		—		—		—		(362)
Foreign currency transaction gains (losses) on hedged items	—		(358)		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		—
Amount of gains (losses) reclassified from AOCI into income	—		—		—		—		—		—		—
Subtotal	19		2		—		—		—		—		(145)
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		—		N/A		N/A		N/A		N/A		(72)
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		(14)
Subtotal	N/A		—		N/A		N/A		N/A		N/A		(86)
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	—		N/A		98		N/A		N/A		N/A		N/A
Foreign currency exchange rate derivatives (1)	—		N/A		245		N/A		N/A		N/A		N/A
Credit derivatives — purchased (1)	—		N/A		(9)		N/A		N/A		N/A		N/A
Credit derivatives — written (1)	—		N/A		(27)		N/A		N/A		N/A		N/A
Equity derivatives (1)	17		N/A		59		N/A		N/A		N/A		N/A
Foreign currency transaction gains (losses) on hedged items	—		N/A		(31)		N/A		N/A		N/A		N/A
Subtotal	17		N/A		335		N/A		N/A		N/A		N/A
Earned income on derivatives	95		—		110		2		(40)		—		—
Synthetic GICs	N/A		N/A		19		N/A		N/A		N/A		N/A
Embedded derivatives - ceded reinsurance	N/A		N/A		(35)		N/A		N/A		N/A		N/A
Embedded derivatives - other	N/A		N/A		3		N/A		N/A		N/A		N/A
Total	$	131	$	1	$	432	$	(2)	$	(38)	$	—	$	(231)

__________________

(1)Excludes earned income on derivatives.

Fair Value Hedges

The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges:


	March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025
Balance Sheet Line Item	Carrying Amount of the Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets/(Liabilities) (1)
	(In millions)
Fixed maturity securities AFS	$	2,210	$	658	$	—	$	—
Mortgage loans	$	51	$	51	$	—	$	—
FPBs	$	(2,473)	$	(2,509)	$	326	$	319
PABs	$	(2,411)	$	(2,559)	$	136	$	(9)

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(1)Includes ($61) million and ($67) million of hedging adjustments on discontinued hedging relationships at March 31, 2026 and December 31, 2025, respectively.

Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps

The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at:


	March 31, 2026					December 31, 2025
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A
Single name credit default swaps (3)	$	1	$	59	2.3	$	1	$	59	2.5
Credit default swaps referencing indices	36		3,777		1.1	44		3,777		1.4
Subtotal	37		3,836		1.2	45		3,836		1.4
Baa
Single name credit default swaps (3)	1		46		3.6	1		46		3.8
Credit default swaps referencing indices	144		10,528		5.7	95		4,807		4.6
Subtotal	145		10,574		5.7	96		4,853		4.6
Ba

Credit default swaps referencing indices	1		24		0.7	1		24		1.0
Subtotal	1		24		0.7	1		24		1.0
B
Single name credit default swaps (3)	—		16		0.3	—		16		0.6
Credit default swaps referencing indices	14		289		4.1	10		129		3.0
Subtotal	14		305		3.9	10		145		2.7
Caa

Credit default swaps referencing indices	(1)		15		0.7	—		15		1.0
Subtotal	(1)		15		0.7	—		15		1.0
Total	$	196	$	14,754	4.5	$	152	$	8,873	3.2

__________________

(1)The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service, Inc. (“Moody’s”), Standard & Poor’s Global Ratings (“S&P”) and Fitch Ratings Inc. If no rating is available from a rating agency, then an internally developed rating is used.

(2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

(3)Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or municipals.

Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:


	March 31, 2026				December 31, 2025
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement	Assets		Liabilities		Assets		Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	7,612	$	6,400	$	7,053	$	6,972
OTC-cleared (1)	174		621		119		569
Exchange-traded	28		15		6		6
Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1)	7,814		7,036		7,178		7,547
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(2,951)		(2,951)		(3,015)		(3,015)
OTC-cleared	(7)		(7)		(7)		(7)
Exchange-traded	(2)		(2)		—		—
Cash collateral: (3), (4)
OTC-bilateral	(2,323)		—		(1,808)		—
OTC-cleared	(140)		(609)		(105)		(555)
Exchange-traded	—		(4)		—		(1)
Securities collateral: (5)
OTC-bilateral	(2,279)		(3,436)		(2,211)		(3,945)
OTC-cleared	—		(5)		—		(6)
Exchange-traded	—		(9)		—		(5)
Net amount after application of master netting agreements and collateral	$	112	$	13	$	32	$	13

__________________

(1)At March 31, 2026 and December 31, 2025, derivative assets included income (expense) accruals reported in accrued investment income or in other liabilities of $149 million and $133 million, respectively, and derivative liabilities included (income) expense accruals reported in accrued investment income or in other liabilities of $43 million and ($1) million, respectively.

(2)Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

(3)Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives, where the central clearinghouse treats variation margin as collateral, is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. For certain collateral agreements, cash collateral is pledged to the Company as initial margin on its OTC-bilateral derivatives.

(4)The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At March 31, 2026 and December 31, 2025, the Company received excess cash collateral of $66 million and $29 million, respectively, and provided excess cash collateral of $75 million and $68 million, respectively, which is not included in the table above due to the foregoing limitation.

(5)Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at March 31, 2026, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At

March 31, 2026 and December 31, 2025, the Company received excess securities collateral with an estimated fair value of $392 million and $381 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At both March 31, 2026 and December 31, 2025, the Company provided excess securities collateral with an estimated fair value of $1.3 billion, for its OTC-bilateral derivatives, $765 million and $751 million, respectively, for its OTC-cleared derivatives, and $231 million and $215 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:


	March 31, 2026				December 31, 2025
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement	Assets		Liabilities		Assets		Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	7,612	$	6,400	$	7,053	$	6,972
OTC-cleared (1)	174		621		119		569
Exchange-traded	28		15		6		6
Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1)	7,814		7,036		7,178		7,547
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(2,951)		(2,951)		(3,015)		(3,015)
OTC-cleared	(7)		(7)		(7)		(7)
Exchange-traded	(2)		(2)		—		—
Cash collateral: (3), (4)
OTC-bilateral	(2,323)		—		(1,808)		—
OTC-cleared	(140)		(609)		(105)		(555)
Exchange-traded	—		(4)		—		(1)
Securities collateral: (5)
OTC-bilateral	(2,279)		(3,436)		(2,211)		(3,945)
OTC-cleared	—		(5)		—		(6)
Exchange-traded	—		(9)		—		(5)
Net amount after application of master netting agreements and collateral	$	112	$	13	$	32	$	13

__________________

(2)Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

Estimated Fair Value of OTC-bilateral derivatives after considering effect of netting agreements

The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged.


	March 31, 2026						December 31, 2025
	Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total		Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total
	(In millions)
Estimated fair value of derivatives in a net liability position	$	3,434	$	15	$	3,449	$	3,946	$	11	$	3,957
Estimated fair value of collateral provided:
Fixed maturity securities AFS	$	4,161	$	16	$	4,177	$	4,661	$	11	$	4,672

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at:


	Balance Sheet Location	March 31, 2026		December 31, 2025
		(In millions)


Embedded derivatives within liability host contracts:


Funds withheld on ceded reinsurance (1)	Other liabilities	$	(292)	$	(10)
Fixed annuities with equity indexed returns	PABs	140		67

Total		$	(152)	$	57

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(1)Includes ($84) million and $81 million at March 31, 2026 and December 31, 2025, respectively, related to Chariot Reinsurance, Ltd. (“Chariot Re”). See Note 19 for additional related party transactions.

Embedded Derivatives


	March 31, 2026						December 31, 2025
	Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total		Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total
	(In millions)
Estimated fair value of derivatives in a net liability position	$	3,434	$	15	$	3,449	$	3,946	$	11	$	3,957
Estimated fair value of collateral provided:
Fixed maturity securities AFS	$	4,161	$	16	$	4,177	$	4,661	$	11	$	4,672

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at:


	Balance Sheet Location	March 31, 2026		December 31, 2025
		(In millions)


Embedded derivatives within liability host contracts:


Funds withheld on ceded reinsurance (1)	Other liabilities	$	(292)	$	(10)
Fixed annuities with equity indexed returns	PABs	140		67

Total		$	(152)	$	57

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- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

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