v3.26.1
Investments
 3 Months Ended
Mar. 31, 2026
Investments [Abstract]  
Investments INVESTMENTS
Fixed Maturity Securities Available-for-Sale
The Company holds various types of fixed maturity securities available-for-sale and classifies them as corporate securities (“Corporate”), Canadian and Canadian provincial government securities (“Canadian government”), Japanese government and agencies (“Japanese government”), Korean government and agencies (“Korean government”), asset-backed securities (“ABS”), commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities (“RMBS”), U.S. government and agencies (“U.S. government”), state and political subdivisions, and other foreign government, supranational and foreign government-sponsored enterprises (“Other foreign government”). ABS, CMBS and RMBS are collectively referred to as “structured securities.”
The following tables provide information relating to investments in fixed maturity securities by type as of March 31, 2026 and December 31, 2025 (dollars in millions):
March 31, 2026:Amortized CostAllowance for Credit LossesUnrealized GainsUnrealized LossesEstimated
Fair Value		% of Total
Available-for-sale:
Corporate$77,736 $211 $676 $4,973 $73,228 68.2 %
Canadian government4,897 — 251 133 5,015 4.7 
Japanese government9,873 — — 2,056 7,817 7.3 
Korean government1,346 — — 183 1,163 1.1 
ABS7,436 21 44 178 7,281 6.8 
CMBS2,367 — 25 57 2,335 2.2 
RMBS1,599 — 18 74 1,543 1.4 
U.S. government2,805 — 14 257 2,562 2.4 
State and political subdivisions737 — 2 84 655 0.6 
Other foreign government6,180 — 37 488 5,729 5.3 
Total fixed maturity securities$114,976 $232 $1,067 $8,483 $107,328 100.0 %
December 31, 2025:Amortized CostAllowance for Credit LossesUnrealized GainsUnrealized LossesEstimated
Fair Value		% of Total
Available-for-sale:
Corporate$72,736 $189 $1,142 $3,952 $69,737 68.5 %
Canadian government4,920 — 286 106 5,100 5.1 
Japanese government6,516 — 1 1,816 4,701 4.6 
Korean government1,407 — 1 96 1,312 1.3 
ABS7,478 21 69 157 7,369 7.2 
CMBS2,179 — 35 52 2,162 2.1 
RMBS1,615 — 26 72 1,569 1.5 
U.S. government3,508 — 27 248 3,287 3.3 
State and political subdivisions737 — 2 79 660 0.6 
Other foreign government6,168 — 83 379 5,872 5.8 
Total fixed maturity securities$107,264 $210 $1,672 $6,957 $101,769 100.0 %
The Company monitors its concentrations of financial instruments on an ongoing basis and mitigates credit risk by maintaining a diversified investment portfolio that limits exposure to any one issuer. The Company’s exposure to concentrations of credit risk from single issuers, including certain agencies, greater than 10% of the Company’s equity is disclosed below, as of March 31, 2026 and December 31, 2025 (dollars in millions):
March 31, 2026December 31, 2025
Amortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
Fixed maturity securities guaranteed or issued by:
Japanese government$9,873 $7,817 $6,516 $4,701 
U.S. government2,805 2,562 3,508 3,287 
Canadian province of Quebec1,632 1,735 1,642 1,764 
The amortized cost and estimated fair value of fixed maturity securities classified as available-for-sale as of March 31, 2026, are shown by contractual maturity in the table below (dollars in millions). Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Structured securities are shown separately in the table below as they are not due at a single maturity date.
Amortized CostEstimated Fair Value
Available-for-sale:
Due in one year or less$2,288 $2,222 
Due after one year through five years16,429 16,359 
Due after five years through ten years17,100 16,938 
Due after ten years67,757 60,650 
Structured securities11,402 11,159 
Total$114,976 $107,328 
Corporate Fixed Maturity Securities
The tables below show the major sectors of the Company’s corporate fixed maturity holdings as of March 31, 2026 and December 31, 2025 (dollars in millions): 
March 31, 2026:Amortized CostEstimated Fair Value% of Total
Finance$22,661 $21,270 29.0 %
Industrial42,019 39,749 54.3 
Utility13,056 12,209 16.7 
Total$77,736 $73,228 100.0 %
December 31, 2025:Amortized CostEstimated Fair Value% of Total
Finance$21,367 $20,489 29.4 %
Industrial39,381 37,839 54.3 
Utility11,988 11,409 16.3 
Total$72,736 $69,737 100.0 %
Allowance for Credit Losses and Impairments – Fixed Maturity Securities Available-for-Sale
As discussed in Note 2 – “Significant Accounting Policies and Pronouncements” of the 2025 Annual Report, allowances for credit losses on fixed maturity securities are recognized in investment related gains (losses), net. The Company estimates the amount of the credit loss component of a fixed maturity security impairment as the difference between amortized cost and the present value of the expected cash flows of the security. Any remaining difference between the fair value and amortized cost is recognized in OCI.
The following tables present the rollforward of the allowance for credit losses in fixed maturity securities by type for the three months ended March 31, 2026 and 2025 (dollars in millions):
For the three months ended March 31, 2026:
 CorporateABSCMBSTotal
Balance, beginning of period$189 $21 $— $210 
Credit losses with no previous allowance64 — — 64 
Securities disposed(56)— — (56)
Change in credit losses with a previous allowance14 — — 14 
Foreign currency translation— — — — 
Balance, end of period$211 $21 $— $232 
For the three months ended March 31, 2025:
 CorporateABSCMBSTotal
Balance, beginning of period$82 $15 $1 $98 
Credit losses with no previous allowance10 — — 10 
Securities disposed(2)— — (2)
Change in credit losses with a previous allowance(1)— (1)(2)
    Foreign currency translation(1)— — (1)
Balance, end of period$88 $15 $— $103 
Unrealized Losses for Fixed Maturity Securities Available-for-Sale
The Company’s determination of whether a decline in value necessitates the recording of an allowance for credit losses includes an analysis of whether the issuer is current on its contractual payments, evaluating whether it is probable that the Company will be able to collect all amounts due according to the contractual terms of the security, and analyzing the overall ability of the Company to recover the amortized cost of the investment.
The following tables present the estimated fair value and gross unrealized losses for the 7,588 and 5,968 fixed maturity securities for which both the estimated fair value had declined and remained below amortized cost and an allowance for credit loss has not been recorded as of March 31, 2026 and December 31, 2025, respectively (dollars in millions). These investments are presented by class and grade of security, as well as the length of time the related fair value has continuously remained below amortized cost.
March 31, 2026:Less than 12 months12 months or greaterTotal
Estimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized Losses
Investment grade securities:
Corporate$26,865 $691 $21,780 $4,168 $48,645 $4,859 
Canadian government1,488 37 650 96 2,138 133 
Japanese government3,586 71 4,136 1,985 7,722 2,056 
Korean government1,043 178 74 5 1,117 183 
ABS2,962 28 1,373 143 4,335 171 
CMBS680 7 654 48 1,334 55 
RMBS358 2 534 72 892 74 
U.S. government935 3 486 254 1,421 257 
State and political subdivisions168 3 391 81 559 84 
Other foreign government2,463 89 1,712 396 4,175 485 
Total investment grade securities40,548 1,109 31,790 7,248 72,338 8,357 
Below investment grade securities:
Corporate1,170 29 401 72 1,571 101 
ABS207 4 19 1 226 5 
Other foreign government— — 9 3 9 3 
Total below investment grade securities1,377 33 429 76 1,806 109 
Total fixed maturity securities$41,925 $1,142 $32,219 $7,324 $74,144 $8,466 
December 31, 2025:Less than 12 months12 months or greaterTotal
Estimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized Losses
Investment grade securities:
Corporate$10,591 $255 $22,666 $3,635 $33,257 $3,890 
Canadian government1,096 34 426 72 1,522 106 
Japanese government1,274 209 3,351 1,607 4,625 1,816 
Korean government1,145 92 78 4 1,223 96 
ABS2,324 15 1,149 141 3,473 156 
CMBS— — 705 50 705 50 
RMBS— — 562 72 562 72 
U.S. government406 1 542 247 948 248 
State and political subdivisions73 1 451 78 524 79 
Other foreign government1,382 26 1,901 350 3,283 376 
Total investment grade securities18,291 633 31,831 6,256 50,122 6,889 
Below investment grade securities:
Corporate652 25 258 31 910 56 
ABS19 1 — — 19 1 
Other foreign government— — 13 3 13 3 
Total below investment grade securities671 26 271 34 942 60 
Total fixed maturity securities$18,962 $659 $32,102 $6,290 $51,064 $6,949 
The Company did not intend to sell, and more likely than not would not be required to sell, the securities outlined in the tables above, as of the dates presented. However, unforeseen facts and circumstances may cause the Company to sell fixed maturity securities in the ordinary course of managing its portfolio to meet certain diversification, credit quality and liquidity guidelines. Changes in unrealized losses are primarily due to changes in risk-free interest rates and credit spreads.
Net Investment Income
Major categories of net investment income consist of the following (dollars in millions):
 Three months ended March 31,
 20262025
Fixed maturity securities available-for-sale$1,369 $1,063 
Equity securities4 2 
Mortgage loans157 119 
Policy loans43 18 
Funds withheld at interest108 66 
Limited partnerships and real estate joint ventures54 (15)
Short-term investments and cash and cash equivalents33 36 
Other invested assets(1)(5)
Investment income1,767 1,284 
Investment expense(66)(52)
Net investment income$1,701 $1,232 
Investment Related Gains (Losses), Net
Investment related gains (losses), net consist of the following (dollars in millions): 
 Three months ended March 31,
 20262025
Fixed maturity securities available-for-sale:
Change in allowance for credit losses$(22)$(6)
Impairments on fixed maturity securities(1)— 
Realized gains on investment activity59 36 
Realized losses on investment activity(165)(87)
Net losses on equity securities(14)(1)
Change in mortgage loan allowance for credit losses2 4 
Limited partnerships and real estate joint ventures impairment losses(22)(5)
Change in fair value of certain limited partnership investments6 (7)
Net losses on freestanding derivatives(57)(2)
Net gains (losses) on embedded derivatives44 (11)
Total investment related gains (losses), net$(170)$(79)
Collateral Arrangements
The Company enters into various collateral arrangements with counterparties that require both the pledging and acceptance of invested assets as collateral. Pledged invested assets are included in the condensed consolidated balance sheets. Invested assets received as collateral are held in separate custodial accounts and are not recorded on the Company’s condensed consolidated balance sheets. Subject to certain constraints, the Company is permitted by contract to sell or repledge collateral it receives; however, as of March 31, 2026 and December 31, 2025, none of the collateral received had been sold or repledged.
The Company also holds invested assets on deposit to meet regulatory requirements and holds assets in trust to satisfy collateral requirements under derivative transactions and certain third-party reinsurance treaties.
The following table includes invested assets on deposit, invested assets pledged and received as collateral, assets in trust held to satisfy collateral requirements and FHLB common stock restricted as to sale as of March 31, 2026 and December 31, 2025 (dollars in millions):
March 31, 2026December 31, 2025
Amortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
Invested assets on deposit (regulatory deposits)$10 $9 $10 $9 
Invested assets pledged as collateral1,880 1,566 1,739 1,527 
Invested assets received as collateral n/a 2,551 n/a2,620 
Assets in trust held to satisfy collateral requirements75,687 71,102 68,241 65,154 
FHLB common stock restricted as to sale68 68 68 68 
Securities Lending and Repurchase/Reverse Repurchase Agreements
The following table provides the estimated fair value of securities relating to securities lending and repurchase/reverse repurchase agreements as of March 31, 2026 and December 31, 2025 (dollars in millions):
March 31, 2026December 31, 2025
Securities Loaned (1)
Securities Borrowed (2)
Cash Collateral Received (3)
Securities Loaned (1)
Securities Borrowed (2)
Cash Collateral Received (3)
Securities lending transactions$792 $1,054 $— $831 $1,058 $— 
Repurchase/reverse repurchase transactions2,457 638 1,645 2,623 682 1,783 
(1)Securities loaned or pledged through securities lending transactions or sold to counterparties through repurchase transactions are included within fixed maturity securities. Collateral associated with certain securities lending transactions is not included within this table as the collateral pledged to the counterparty is the right to reinsurance treaty cash flows. Certain securities lending transactions do not require collateral.
(2)Securities borrowed or received as collateral through securities lending transactions or purchased from counterparties through reverse repurchase transactions are not reflected on the condensed consolidated balance sheets.
(3)A payable for the cash received by the Company is included within other liabilities.
The following table presents the estimated fair value of securities by the remaining contractual maturity of the Company’s securities lending and repurchase agreements as of March 31, 2026 and December 31, 2025 (dollars in millions):
March 31, 2026December 31, 2025
Remaining Contractual Maturity of the AgreementsRemaining Contractual Maturity of the Agreements
Overnight and ContinuousUp to 30 Days30 – 90 DaysGreater than 90 DaysTotalOvernight and ContinuousUp to 30 Days30 – 90 DaysGreater than 90 DaysTotal
Securities lending transactions:
Corporate$— $— $211 $205 $416 $— $— $357 $71 $428 
Japanese government— 149 — 150 299 — — — 310 310 
ABS— — 13 3 16 — — 25 — 25 
CMBS— — 30 — 30 — — 37 — 37 
RMBS— — 10 — 10 — — 10 — 10 
Other foreign government— — 11 10 21 — — 15 6 21 
Total— 149 275 368 792 — — 444 387 831 
Repurchase/reverse repurchase transactions:
Corporate— — 199 1,098 1,297 — — — 1,336 1,336 
Canadian government— — — 12 12 — — — 12 12 
Japanese government— — — 380 380 — — 203 175 378 
ABS— — — 115 115 — — 11 137 148 
CMBS— — — 225 225 — — 49 227 276 
RMBS— — — 46 46 — — 42 47 89 
U.S. government— — — 270 270 — — 4 273 277 
Other foreign government— — — 112 112 — — — 107 107 
Total— — 199 2,258 2,457 — — 309 2,314 2,623 
Total transactions$— $149 $474 $2,626 $3,249 $— $— $753 $2,701 $3,454 
Mortgage Loans
The Company invests in both commercial and residential mortgage loans in the U.S. (91.7%), Canada (6.4%) and U.K. (1.9%). As of March 31, 2026, mortgage loans were geographically dispersed throughout the U.S. with the largest concentrations in California (11.7%), Texas (9.7%) and Utah (6.1%). The recorded investment in mortgage loans presented below is gross of unamortized deferred loan origination fees and expenses and allowance for credit losses.
The following table presents the distribution of the Company’s recorded investment in mortgage loans by property type as of March 31, 2026 and December 31, 2025 (dollars in millions):
 March 31, 2026December 31, 2025
Carrying Value% of Total Carrying Value% of Total
Commercial:
Office$1,720 15.0 %$1,800 16.0 %
Retail3,429 29.9 3,455 30.7 
Industrial3,724 32.4 3,549 31.5 
Apartment1,379 12.0 1,356 12.0 
Hotel515 4.5 500 4.4 
Other commercial202 1.8 161 1.4 
Total commercial10,969 95.6 10,821 96.0 
Residential508 4.4 447 4.0 
Recorded investment11,477 100.0 %11,268 100.0 %
Unamortized loan origination fees and discount(44)(47)
Allowance for credit losses(115)(117)
Total mortgage loans$11,318 $11,104 
The following table presents the maturities of the Company’s recorded investment in mortgage loans as of March 31, 2026 and December 31, 2025 (dollars in millions):
March 31, 2026December 31, 2025
Recorded
Investment		% of Total Recorded
Investment		% of Total
Commercial:
Due within five years$4,620 42.1 %$4,563 42.2 %
Due after five years through ten years5,432 49.5 5,225 48.3 
Due after ten years917 8.4 1,033 9.5 
Total commercial$10,969 100.0 %$10,821 100.0 %
Residential:
Due within five years$190 37.4 %$184 41.2 %
Due after five years through ten years— — — — 
Due after ten years318 62.6 263 58.8 
Total residential$508 100.0 %$447 100.0 %
The following tables set forth certain key credit quality indicators of the Company’s recorded investment in commercial mortgage loans as of March 31, 2026 and December 31, 2025 (dollars in millions):
Recorded Investment
Debt Service Ratios
>1.20x1.00x – 1.20x<1.00xTotal% of Total
March 31, 2026:
Loan-to-Value Ratio
0% – 59.99%$4,787 $253 $75 $5,115 46.6 %
60% – 69.99%3,143 266 57 3,466 31.6 
70% – 79.99%1,159 215 76 1,450 13.2 
80% or greater637 174 127 938 8.6 
Total commercial$9,726 $908 $335 $10,969 100.0 %
Recorded Investment
Debt Service Ratios
>1.20x1.00x – 1.20x<1.00xTotal% of Total
December 31, 2025:
Loan-to-Value Ratio
0% – 59.99%$4,799 $162 $79 $5,040 46.5 %
60% – 69.99%3,084 168 79 3,331 30.8 
70% – 79.99%1,126 232 99 1,457 13.5 
80% or greater643 236 114 993 9.2 
Total commercial$9,652 $798 $371 $10,821 100.0 %
The following tables set forth credit quality grades by year of origination of the Company’s recorded investment in commercial mortgage loans as of March 31, 2026 and December 31, 2025 (dollars in millions):
Recorded Investment
Year of Origination
20262025202420232022PriorTotal
March 31, 2026:
Internal credit quality grade:
High investment grade$26 $625 $585 $351 $531 $1,950 $4,068 
Investment grade465 1,906 1,254 755 596 1,396 6,372 
Average— — — 71 107 208 386 
Watch list— — — 12 — 131 143 
Total commercial$491 $2,531 $1,839 $1,189 $1,234 $3,685 $10,969 
Recorded Investment
Year of Origination
20252024202320222021PriorTotal
December 31, 2025:
Internal credit quality grade:
High investment grade$636 $587 $352 $539 $458 $1,679 $4,251 
Investment grade1,908 1,257 788 617 481 973 6,024 
Average— — 83 107 36 195 421 
Watch list— — — — — 125 125 
Total commercial$2,544 $1,844 $1,223 $1,263 $975 $2,972 $10,821 
The following tables set forth credit quality by year of origination of the Company’s recorded investment in residential mortgage loans as of March 31, 2026 and December 31, 2025 (dollars in millions):
Recorded Investment
Year of Origination
20262025202420232022PriorTotal
March 31, 2026:
Performing$21 $357 $40 $8 $20 $58 $504 
Non-performing— 4 — — — — 4 
Total residential$21 $361 $40 $8 $20 $58 $508 
Recorded Investment
Year of Origination
20252024202320222021PriorTotal
December 31, 2025:
Performing$310 $47 $9 $21 $54 $6 $447 
Non-performing— — — — — — — 
Total residential$310 $47 $9 $21 $54 $6 $447 
The following table presents the current and past due composition of the Company’s recorded investment in mortgage loans as of March 31, 2026 and December 31, 2025 (dollars in millions):
 March 31, 2026December 31, 2025
Commercial:
Current$10,938 $10,805 
31 – 60 days past due5 — 
61 – 90 days past due
26 — 
Greater than 90 days past due
— 16 
Total commercial$10,969 $10,821 
Residential:
Current$503 $444 
31 – 60 days past due
1 3 
61 – 90 days past due— — 
Greater than 90 days past due4 — 
Total residential$508 $447 
The following table presents information regarding the Company’s allowance for credit losses for mortgage loans for the three months ended March 31, 2026 and 2025 (dollars in millions):
For the three months ended March 31, 2026:CommercialResidentialTotal
Balance, beginning of period$112 $5 $117 
Provision (release) of credit losses4 1 5 
Write-offs, net of recoveries(7)— (7)
Balance, end of period$109 $6 $115 
For the three months ended March 31, 2025:
Balance, beginning of period$93 $— $93 
Provision (release) of credit losses(6)2 (4)
Write-offs, net of recoveries— — — 
Balance, end of period$87 $2 $89 
During the three months ended March 31, 2026 and 2025, the Company modified one mortgage loan and three mortgage loans, respectively, for borrowers experiencing financial difficulty providing interest only payments, maturity extensions or payment deferrals. The total recorded investment before allowance for credit losses for the modified loans was $13 million and $19 million as of March 31, 2026 and 2025, respectively.
The Company had five residential mortgage loans in the amount of $4 million that were on nonaccrual status as of March 31, 2026. The Company had one commercial mortgage loan in the amount of $6 million that was on nonaccrual status as of March 31, 2025. The Company did not convert any mortgage loans to owned properties through a deed in lieu of foreclosure during the three months ended March 31, 2026 and 2025. The Company did not acquire any impaired mortgage loans during the three months ended March 31, 2026 and 2025.
Policy Loans
The majority of policy loans are associated with one client. These policy loans present no credit risk as the amount of the loan cannot exceed the obligation due to the ceding company upon the death of the insured or surrender of the underlying policy. The provisions of the treaties in force and the underlying policies determine the policy loan interest rates. The Company earns a spread between the interest rate earned on policy loans and the interest rate credited to corresponding liabilities.
Funds Withheld at Interest
For reinsurance agreements written on a modified coinsurance basis and certain agreements written on a coinsurance funds withheld basis, assets equal to the net statutory reserves are withheld and legally owned and managed by the ceding company. The Company reflects these assets on its consolidated balance sheets as funds withheld at interest.
Limited Partnerships and Real Estate Joint Ventures
The carrying values of limited partnerships and real estate joint ventures as of March 31, 2026 and December 31, 2025 are as follows (dollars in millions):
March 31, 2026December 31, 2025
Limited partnerships – equity method$1,878 $1,543 
Limited partnerships – fair value935 925 
Limited partnerships – cost method71 72 
Real estate joint ventures – equity method1,193 1,207 
Real estate joint ventures – fair value16 — 
Total limited partnerships and real estate joint ventures$4,093 $3,747 
Other Invested Assets
Other invested assets include lifetime mortgages, derivative contracts and FHLB common stock. Other invested assets also include real estate held for investment, which is included in “Other” in the table below. As of March 31, 2026 and December 31, 2025, the allowance for credit losses for lifetime mortgages was not material. The carrying values of other invested assets as of March 31, 2026 and December 31, 2025 are as follows (dollars in millions):
March 31, 2026December 31, 2025
Lifetime mortgages$1,219 $1,197 
Derivatives179 185 
FHLB common stock68 68 
Other59 64 
Total other invested assets$1,525 $1,514