v3.26.1
Investments
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Our investments in fixed maturity securities have generally been designated as available-for-sale (“AFS”) and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within Accumulated other comprehensive loss ("AOCL"), net of deferred income taxes. We have elected the FVO for certain fixed maturity securities held by consolidated VIEs. See below for additional information on our investments in VIEs. Our preferred and equity securities investments are carried at fair value with unrealized gains and losses included in net earnings.
Our investments include assets backing reserves as part of coinsurance with funds withheld agreements. The funds withheld invested assets are reported within their respective line items. See Note L F&G Reinsurance, for more information on the funds withheld agreements.
The Company’s consolidated AFS investments as of March 31, 2026 and December 31, 2025 are summarized as follows:
March 31, 2026
 Amortized CostAllowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesFair Value
Available-for-sale securities (In millions)
Asset-backed securities$18,868 $(20)$119 $(362)$18,605 
Commercial mortgage-backed securities5,179 (63)35 (154)4,997 
Corporates27,372 (7)155 (2,694)24,826 
Hybrids643 — 3 (27)619 
Municipals1,587 — 3 (223)1,367 
Residential mortgage-backed securities2,672 (1)59 (72)2,658 
U.S. Government967 — 3 (5)965 
Foreign Governments415 — 1 (46)370 
Total available-for-sale securities$57,703 $(91)$378 $(3,583)$54,407 
December 31, 2025
 Amortized CostAllowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesFair Value
Available-for-sale securities (In millions)
Asset-backed securities$18,853 $(25)$166 $(256)$18,738 
Commercial mortgage-backed/asset-backed securities5,341 (61)58 (139)5,199 
Corporates26,538 (25)302 (2,368)24,447 
Hybrids625 — 6 (22)609 
Municipals1,604 — 4 (215)1,393 
Residential mortgage-backed securities2,846 (1)76 (70)2,851 
U.S. Government954 — 5 (3)956 
Foreign Governments400 — 5 (37)368 
Total available-for-sale securities$57,161 $(112)$622 $(3,110)$54,561 
Securities held on deposit with various state regulatory authorities had a fair value of $157 million and $155 million at March 31, 2026 and December 31, 2025, respectively.
As of March 31, 2026 and December 31, 2025, the Company held $50 million and $54 million, respectively, of investments that were non-income producing for a period greater than twelve months.
As of March 31, 2026 and December 31, 2025, the Company's accrued interest receivable balance, excluding accrued interest receivable balances related to mortgage loans discussed below under "Mortgage Loans," was $592 million and $542 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed Consolidated Balance Sheets.
In accordance with our FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to us for general purposes. The collateral investments had a fair value of $4,422 million and $4,621 million as of March 31, 2026 and December 31, 2025, respectively.
The amortized cost and fair value of fixed maturity securities AFS by contractual maturities as of March 31, 2026 and December 31, 2025 are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.
March 31, 2026December 31, 2025
(In millions)(In millions)
Amortized Cost Fair ValueAmortized Cost Fair Value
Corporates, Non-structured Hybrids, Municipal and Government securities:
Due in one year or less$777 $771 $623 $619 
Due after one year through five years6,027 5,999 5,597 5,626 
Due after five years through ten years5,832 5,737 5,811 5,812 
Due after ten years18,348 15,640 18,090 15,716 
Subtotal30,984 28,147 30,121 27,773 
Other securities, which provide for periodic payments:
Asset-backed securities18,868 18,605 18,853 18,738 
Commercial mortgage-backed securities5,179 4,997 5,341 5,199 
Residential mortgage-backed securities2,672 2,658 2,846 2,851 
Subtotal26,719 26,260 27,040 26,788 
Total fixed maturity available-for-sale securities$57,703 $54,407 $57,161 $54,561 
Allowance for Expected Credit Loss
We regularly review AFS securities for declines in fair value that we determine to be credit related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit related, and if so, the magnitude of the credit loss:
•The extent to which the fair value is less than the amortized cost basis;
•The reasons for the decline in value (credit event, foreign currency or interest-rate related, including general credit spread widening);
•The financial condition of and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal based upon the issuer's financial strength);
•Current delinquencies and non-performing assets of underlying collateral;
•Expected future default rates;
•Collateral value by vintage, geographic region, industry concentration or property type;
•Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and
•Contractual and regulatory cash obligations and the issuer's plans to meet such obligations.
We recognize an allowance for expected credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We measure the credit loss using a discounted cash flow model that utilizes the single best estimate cash flow and the recognized credit loss is limited to the total unrealized loss on the security (i.e., the fair value floor). Cash flows are discounted using the implicit yield of bonds at their time of purchase and the current book yield for asset and mortgage-backed securities as well as variable rate securities. We recognize the expected credit losses in Recognized gains and losses, net in the unaudited Condensed Consolidated Statements of Earnings, with an offset for the amount of non-credit impairments recognized in AOCL. We do not measure a credit loss allowance on accrued investment income because we write-off accrued interest through Interest and investment income when collectability concerns arise.
We consider the following in determining whether write-offs of a security’s amortized cost are necessary:
•We believe amounts related to securities have become uncollectible;
•We intend to sell a security; or
•It is more likely than not that we will be required to sell a security prior to recovery.
If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible, an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. The remainder of unrealized loss is held in AOCL. As of March 31, 2026 and December 31, 2025, our allowance for expected credit losses for AFS securities was $91 million and $112 million, respectively.

The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of March 31, 2026 and December 31, 2025 were as follows:
March 31, 2026
Less than 12 months12 months or longerTotal
Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses
Available-for-sale securities(In millions)
Asset-backed securities$6,481 $(128)$2,023 $(225)$8,504 $(353)
Commercial mortgage-backed securities1,169 (11)957 (111)2,126 (122)
Corporates7,905 (183)9,712 (2,513)17,617 (2,696)
Hybrids166 (4)311 (23)477 (27)
Municipals234 (6)1,024 (216)1,258 (222)
Residential mortgage-backed securities456 (3)351 (67)807 (70)
U.S. Government551 (4)82 (1)633 (5)
Foreign Government86 (2)189 (43)275 (45)
Total available-for-sale securities$17,048 $(341)$14,649 $(3,199)$31,697 $(3,540)
Total number of available-for-sale securities in an unrealized loss position less than twelve months3,930 
Total number of available-for-sale securities in an unrealized loss position twelve months or longer2,146
Total number of available-for-sale securities in an unrealized loss position 6,076 
December 31, 2025
Less than 12 months12 months or longerTotal
Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses
Available-for-sale securities(In millions)
Asset-backed securities$4,756 $(30)$2,160 $(209)$6,916 $(239)
Commercial mortgage-backed securities542 (11)1,051 (106)1,593 (117)
Corporates3,419 (55)10,097 (2,312)13,516 (2,367)
Hybrids61 (1)372 (21)433 (22)
Municipals201 (3)1,050 (212)1,251 (215)
Residential mortgage-backed securities208 (2)390 (67)598 (69)
U.S. Government353 (1)84 (2)437 (3)
Foreign Government60 — 148 (37)208 (37)
Total available-for-sale securities$9,600 $(103)$15,352 $(2,966)$24,952 $(3,069)
Total number of available-for-sale securities in an unrealized loss position less than twelve months1,962
Total number of available-for-sale securities in an unrealized loss position twelve months or longer2,194
Total number of available-for-sale securities in an unrealized loss position 4,156 
The unrealized losses as of March 31, 2026 and December 31, 2025 were caused by higher treasury rates compared to those at the time of the F&G acquisition or the purchase of the security if later. We believe the unrealized loss position for which we have not recorded an allowance for expected credit loss as of March 31, 2026 was primarily attributable to interest rate increases, near-term illiquidity, and other macroeconomic uncertainties as opposed to issuer specific credit concerns.
Mortgage Loans
Our mortgage loans are collateralized by commercial and residential properties.
Commercial Mortgage Loans
Commercial mortgage loans (“CMLs”) represented approximately 5% and 4% of our total investments reported on the unaudited Condensed Consolidated Balance Sheets for both March 31, 2026 and December 31, 2025, respectively. The mortgage loans in our investment portfolio are generally comprised of high quality commercial first lien and mezzanine real estate loans. Mortgage loans are primarily on income producing properties including industrial properties, retail buildings, multifamily properties, and office buildings. We diversify our CML portfolio by geographic region and property type to attempt to reduce concentration risk. We continuously evaluate CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt. The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables:
March 31, 2026December 31, 2025
Gross Carrying Value% of TotalGross Carrying Value% of Total
Property Type:(In millions)(In millions)
Hotel$9 — %$9 — %
Industrial710 20 671 21 
Mixed Use20 1 21 1 
Multifamily1,253 35 1,150 35 
Office340 10 345 11 
Retail293 8 327 10 
Student Housing 83 2 83 3 
Other830 24 654 19 
Total CMLs, gross of valuation allowance
$3,538 100 %$3,260 100 %
Allowance for expected credit loss(23)(18)
Total CMLs, net of valuation allowance
$3,515 $3,242 
U.S. Region:
East North Central$172 5 %$124 4 %
East South Central86 2 86 3 
Middle Atlantic370 10 356 11 
Mountain472 13 396 12 
New England183 5 183 6 
Pacific706 20 709 22 
South Atlantic1,188 35 1,157 34 
West North Central167 5 69 2 
West South Central194 5 180 6 
Total CMLs, gross of valuation allowance
$3,538 100 %$3,260 100 %
Allowance for expected credit loss(23)(18)
Total CMLs, net of valuation allowance
$3,515 $3,242 
An individual loan, or a portion thereof, is charged off when it is determined to be uncollectible. There were no charge offs for CMLs during the three months ended March 31, 2026 and for the year ended December 31, 2025. CMLs segregated by aging of the loans (by year of origination) as of March 31, 2026 and December 31, 2025 were as follows, gross of valuation allowances:
March 31, 2026
Amortized Cost by Origination Year
20262025202420232022PriorTotal
CMLs(In millions)
Current (less than 30 days past due)$319 $612 $292 $195 $292 $1,819 $3,529 
30-89 days past due— — — — — — — 
90 days or more past due— — — — — 9 9 
Total CMLs$319 $612 $292 $195 $292 $1828 $3,538 
December 31, 2025
Amortized Cost by Origination Year
20252024202320222021PriorTotal
CMLs(In millions)
Current (less than 30 days past due)$646 $295 $194 $292 $1,252 $569 $3,248 
30-89 days past due— — — — — — — 
90 days or more past due— — — — — 12 12 
Total CMLs$646 $295 $194 $292 $1,252 $581 $3,260 
Loan-to-value (“LTV”) and debt service coverage (“DSC”) ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.00 indicates that a property’s operations do not generate sufficient income to cover debt payments. We normalize our DSC ratios to a 25 year amortization period for purposes of our general loan allowance evaluation.
The following tables present the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated LTV ratios, gross of valuation allowances at March 31, 2026 and December 31, 2025:
Debt-Service Coverage RatiosTotal Amount% of TotalEstimated Fair Value% of Total
>1.251.00 - 1.25<1.00
March 31, 2026(In millions)
LTV Ratios:
Less than 50.00%$720 $53 $— $773 22 %$757 23 %
50.00% to 59.99%875 6 47 928 26 860 26 
60.00% to 74.99%1,405 387 15 1,807 51 1,656 50 
75.00% to 84.99%7 14 9 30 1 30 1 
Total CMLs$3,007 $460 $71 $3,538 100 %$3,303 100 %
December 31, 2025
LTV Ratios:
Less than 50.00%$594 $16 $— $610 19 %$596 19 %
50.00% to 59.99%850 36 37 923 28 852 28 
60.00% to 74.99%1,415 288 6 1,709 52 1,560 52 
75.00% to 84.99%— 9 9 18 1 17 1 
Total CMLs $2,859 $349 $52 $3,260 100 %$3,025 100 %
March 31, 2026
Amortized Cost by Origination Year
20262025202420232022PriorTotal
CMLs(In millions)
LTV Ratios:
Less than 50.00%$125 $147 $87 $67 $21 $326 $773 
50.00% to 59.99%45 155 — 54 150 524 928 
60.00% to 74.99%136 310 201 70 112 978 1,807 
75.00% to 84.99%13 — 4 4 9 — 30 
Total CMLs$319 $612 $292 $195 $292 $1,828 $3,538 
CMLs
DSC Ratios
Greater than 1.25x$194 $436 $142 $182 $283 $1,770 $3,007 
1.00x - 1.25x116 169 150 13 — 12 460 
Less than 1.00x9 7 — — 9 46 71 
Total CMLs$319 $612 $292 $195 $292 $1,828 $3,538 
December 31, 2025
Amortized Cost by Origination Year
20252024202320222021PriorTotal
CMLs(In millions)
LTV Ratios:
Less than 50.00%$148 $49 $66 $21 $75 $251 $610 
50.00% to 59.99%157 36 53 149 320 208 923 
60.00% to 74.99%341 206 70 113 857 122 1,709 
75.00% to 84.99%— 4 5 9 — — 18 
Total CMLs$646 $295 $194 $292 $1,252 $581 $3,260 
CMLs
DSC Ratios
Greater than 1.25x$469 $140 $182 $283 $1,240 $545 $2,859 
1.00x - 1.25x169 155 12 — — 13 349 
Less than 1.00x8 — — 9 12 23 52 
Total CMLs $646 $295 $194 $292 $1,252 $581 $3,260 
We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. As of March 31, 2026 and December 31, 2025, we had one CML that was delinquent in principal or interest payments as shown in the tables above.
Residential Mortgage Loans
Residential mortgage loans (“RMLs”) represented approximately 7%and 6% of our total investments reported on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively. Our RMLs are primarily closed end, amortizing loans and 100% of the properties are located in the United States. We diversify our RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances:
March 31, 2026
Amortized Cost% of Total
U.S. States:(In millions)
California$375 7 %
Florida270 6 
New York270 6 
All other states (a)4,103 81 
      Total RMLs, gross of valuation allowance5,018 100 %
            Allowance for expected credit loss(74)
      Total RMLs, net of valuation allowance$4,944 
(a)     The individual concentration of each state is less than 5% as of March 31, 2026.
December 31, 2025
Amortized Cost% of Total
U.S. States:(In millions)
California $288 6 %
Florida246 5 
New York232 5 
All other states (a)3,951 84 
      Total RMLs, gross of valuation allowance4,717 100 %
            Allowance for expected credit loss
(68)
      Total RMLs, net of valuation allowance$4,649 
(a)     The individual concentration of each state is less than 5% as of December 31, 2025.
RMLs have a primary credit quality indicator of either a performing or non-performing loan. We define non-performing RMLs as those that are 90 or more days past due or in non-accrual status, which is assessed monthly. The credit quality of RMLs as of March 31, 2026 and December 31, 2025, was as follows:
March 31, 2026December 31, 2025
Amortized Cost% of TotalAmortized Cost% of Total
Performance indicators:(In millions)(In millions)
Performing$4,893 98 %$4,650 99 %
Non-performing125 2 67 1 
Total RMLs, gross of valuation allowance5,018 100 %4,717 100 %
Allowance for expected loan loss(74)(68)
Total RMLs, net of valuation allowance$4,944 $4,649 
An individual loan, or a portion thereof, is charged off when it is determined to be uncollectible. There were no charge offs recorded by RMLs during the three months ended March 31, 2026 or during the year ended December 31, 2025. RMLs segregated by aging of the loans (by year of origination) as of March 31, 2026 and December 31, 2025, were as follows, gross of valuation allowances:
March 31, 2026
Amortized Cost by Origination Year
20262025202420232022PriorTotal
RMLs(In millions)
Current (less than 30 days past due)$195 $1,758 $715 $313 $746 $1,099 $4,826 
30-89 days past due— 14 6 — 38 10 68 
90 days or more past due— 5 13 22 37 47 124 
Total RMLs$195 $1,777 $734 $335 $821 $1,156 $5,018 
December 31, 2025
Amortized Cost by Origination Year
20252024202320222020PriorTotal
RMLs(In millions)
Current (less than 30 days past due)$1,568 $736 $327 $798 $731 $419 $4,579 
30-89 days past due15 2 17 29 4 3 70 
90 days or more past due2 4 4 12 21 25 68 
Total RMLs$1,585 $742 $348 $839 $756 $447 $4,717 
    Non-accrual loans by amortized cost as of March 31, 2026 and December 31, 2025, were as follows:
March 31, 2026December 31, 2025
Amortized cost of loans on non-accrual(In millions)
Residential mortgage:$125 $67 
Commercial mortgage:9 12 
Total non-accrual mortgages$134 $79 
    
Immaterial interest income was recognized on non-accrual financing receivables for the three months ended March 31, 2026 and 2025.
It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes 90 days or more delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of March 31, 2026 and December 31, 2025, we had $134 million and $79 million, respectively, of mortgage loans that were over 90 days past due.
As of March 31, 2026 and December 31, 2025, we had $174 million and $111 million, respectively, of residential mortgage loans that were in the process of foreclosure.

Allowance for Expected Credit Loss
We estimate expected credit losses for our commercial and residential mortgage loan portfolios using a probability of default/loss given default model. Significant inputs to this model include, where applicable, the loans' current performance, underlying collateral type, location, contractual life, LTV, DSC, and Debt to Income or FICO. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three-year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings.
The allowances for our mortgage loan portfolio are summarized as follows:
Three months ended March 31, 2026
(In millions)
Residential MortgageCommercial MortgageTotal
Beginning Balance$(68)$(18)$(86)
Provision (expense) benefit for loan losses(6)(5)(11)
Ending Balance$(74)$(23)$(97)
Three months ended March 31, 2025
(In millions)
Residential MortgageCommercial MortgageTotal
Beginning Balance
$(53)$(17)$(70)
Provision (expense) benefit for loan losses(3)— (3)
Ending Balance
$(56)$(17)$(73)
An allowance for expected credit loss is not measured on accrued interest income for CMLs as we have a process to write-off interest on loans that enter into non-accrual status (90 days or more past due). Allowances for expected credit losses are measured on accrued interest income for RMLs and were immaterial for the three months ended March 31, 2026 and 2025.
As of March 31, 2026 and December 31, 2025, the accrued interest receivable balance on CMLs totaled $11 million and $11 million, respectively, and the accrued interest receivable on RMLs totaled $47 million and $45 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed Consolidated Balance Sheets.
Interest and Investment Income
The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows:
Three months ended March 31,
20262025
(In millions)
Fixed maturity securities, available-for-sale$582 $569 
Equity securities7 8 
Preferred securities6 6 
Mortgage loans105 82 
Invested cash and short-term investments34 53 
Limited partnerships101 55 
Tax deferred property exchange income30 29 
Other investments30 22 
Gross investment income895 824 
Investment expense(73)(64)
Interest and investment income$822 $760 
Interest and investment income is shown net of amounts attributable to certain funds withheld reinsurance agreements, which is passed along to the reinsurer in accordance with the terms of these agreements. Interest and investment income attributable to these agreements, and thus excluded from the totals in the table above, was $228 million and $184 million for the three months ended March 31, 2026 and 2025, respectively.
Recognized Gains and Losses, Net
Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows:
Three months ended March 31,
20262025
(In millions)
Net realized losses on fixed maturity available-for-sale securities$(32)$(2)
Net realized/unrealized losses on equity securities (1)(50)(38)
Net realized/unrealized losses on preferred securities (2)(5)(2)
Net realized/unrealized losses on other invested assets(7)(1)
Change in allowance for expected credit losses2 (22)
Net realized gain on sale of F&G Life Re14— 
Derivatives and embedded derivatives:
Realized gains and losses on certain derivative instruments25 (25)
Unrealized losses on certain derivative instruments(285)(159)
Change in fair value of reinsurance related embedded derivatives (3)261 (41)
Change in fair value of other derivatives and embedded derivatives(1)3 
Net realized/unrealized losses on derivatives and embedded derivatives— (222)
Recognized gains and losses, net$(78)$(287)
(1) Includes net valuation losses of $56 million and $43 million for the three months ended March 31, 2026 and 2025, respectively.
(2) Includes net valuation losses of $5 million and $1 million for the three months ended March 31, 2026 and 2025, respectively.
(3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties.
Recognized gains and losses, net is shown net of amounts attributable to certain funds withheld reinsurance agreements, which are passed along to the reinsurer in accordance with the terms of these agreements. Recognized gains and losses attributable to these agreements, and thus excluded from the totals in the table above, were $260 million and $(42) million for the three months ended March 31, 2026 and 2025, respectively.
The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows:
Three months ended March 31,
20262025
(In millions)
Proceeds$1,013 $2,084 
Gross gains4 12 
Gross losses(8)(14)
Variable Interest Entities
Our involvement with VIEs is primarily through investments in entities that provide exposure to a diversified portfolio of investment asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. VIEs are consolidated by their ‘primary beneficiary,’ a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. We perform ongoing qualitative assessments of our variable interests in VIEs to determine whether we have a controlling financial interest and are therefore the primary beneficiary of the VIE. We consolidate the assets and liabilities (if applicable) of VIEs for which we are determined to be the primary beneficiary in our consolidated financial statements.
Consolidated variable interest entities
We have concluded that we are the primary beneficiary for certain VIEs where we have both the power to direct the most significant activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.
Consolidated VIEs at March 31, 2026 are structured investments that are managed by third parties. These structured investments are established as special purpose vehicles (“SPVs”) designed to hold specific assets which include limited partnerships, middle market loans, short-term investments, and cash and cash equivalents. The assets of each VIE can be used
only to settle obligations of the VIE. Asset and liability information held by consolidated VIEs included on the Consolidated Balance Sheets are as follows:
March 31, 2026December 31, 2025
Assets:(In millions)
Investments in unconsolidated affiliates$270 $262 
Fixed maturity securities, at fair value under fair value option93 — 
Other long-term investments246 248 
Short-term investments33 116 
Cash and cash equivalents1 2 
Total assets$643 $628 
Total consolidated VIE investments$643 $628 
We are not required to provide financial support to these VIEs beyond our contractual obligations. Our maximum exposure to loss related to these consolidated VIEs is limited to our capital invested plus any unfunded capital commitments (refer to unfunded commitments in Note F Commitments and Contingencies). The maximum loss exposure of our consolidated VIEs as of March 31, 2026 was $893 million.
Unconsolidated VIEs
We own investments in VIEs that are not consolidated within our financial statements. While we participate in the benefits from these VIEs in which we invest, but do not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under our common control. It is for this reason that we are not considered the primary beneficiary for the VIE investments that are not consolidated.
We invest in various limited partnerships and limited liability companies primarily as a passive investor. These investments are primarily in credit funds with a bias towards current income, real assets, or private equity. Limited partnership and limited liability company interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our unaudited Condensed Consolidated Balance Sheets. In addition, we invest in structured investments, which may be VIEs, but for which we are not the primary beneficiary. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities included in fixed maturity securities available for sale on our unaudited Condensed Consolidated Balance Sheets.
Our maximum loss exposure with respect to these VIEs is limited to the investment carrying amounts reported in our unaudited Condensed Consolidated Balance Sheets for limited partnerships and the amortized costs of certain of our fixed maturity securities, in addition to any required unfunded commitments (also refer to Note F Commitments and Contingencies).
The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of March 31, 2026 and December 31, 2025:
March 31, 2026December 31, 2025
(In millions)(In millions)
Carrying ValueMaximum Loss ExposureCarrying ValueMaximum Loss Exposure
Investment in unconsolidated affiliates$5,277 $6,491 $5,145 $6,389 
Fixed maturity securities25,894 28,164 26,419 28,803 
Total unconsolidated VIE investments$31,171 $34,655 $31,564 $35,192