v3.26.1
Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The notional and carrying amounts of derivative financial instruments, including derivative instruments embedded in indexed annuities and IUL contracts, and reinsurance are as follows:
March 31, 2026December 31, 2025
Gross NotionalAssets LiabilitiesGross NotionalAssetsLiabilities
(In millions)
Derivatives designated as hedging instruments
Interest rate swaps (a)$1,600 $— $— $850 $11 $1 
Foreign currency swaps (a)— — — 21 — 3 
Total derivatives designated as hedging instruments1,600 — — 871 11 4 
Derivatives not designated as hedging instruments
Equity options (a)30,812 837 — 29,651 1,062 — 
Interest rate swaps (a)6,734 52 7 6,453 83 3 
Foreign currency swaps (a)687 6 2 503 — 6 
Futures contracts (a)76 2 — 68 — 1 
Other derivative investments (a)90 — — 93 — — 
Other embedded derivatives (b)— 39 — — 41 — 
Indexed annuities/IUL embedded derivatives (c)— 630 6,380 — 399 6,542 
Reinsurance related embedded derivatives (d)— — (122)— — 75 
Total derivatives not designated as hedging instruments38,399 1,566 6,267 36,768 1,585 6,627 
Total derivatives $39,999 $1,566 $6,267 $37,639 $1,596 $6,631 
(a)The fair value of derivative assets is reported in Derivative investments, and the fair value of derivative liabilities is reported in Accounts payable and accrued liabilities on the unaudited Condensed Consolidated Balance Sheets.
(b)The fair value is included in Other long term investments on the unaudited Condensed Consolidated Balance Sheets.
(c)The fair value of the liability is included in Contractholder funds and the ceded portion is included in Reinsurance recoverable on the unaudited Condensed Consolidated Balance Sheets.
(d)The fair value of the reinsurance related embedded derivative is included in Funds withheld for reinsurance liabilities on the unaudited Condensed Consolidated Balance Sheets, irrespective if in a net asset or net liability position.
Schedule of Change in Fair Value of Derivative Instruments
The amounts and locations of gains losses, net recognized for derivatives and gains losses, net recognized for hedged items included in the unaudited Condensed Consolidated Statements of Earnings are as follows:
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
Recognized gains (losses), net for derivativesRecognized gains (losses), net for hedged itemBenefits and other changes in policy reserves for derivativesBenefits and other changes in policy reserves for hedged itemRecognized gains (losses), net for derivativesRecognized gains (losses), net for hedged itemBenefits and other changes in policy reserves for derivativesBenefits and other changes in policy reserves for hedged item
(In millions)
Derivatives designated as hedging instruments
Interest rate swaps$— $— $(11)$11 $— $— $9 $(10)
Foreign currency swaps(1)1 — — (1)1 — — 
Total derivatives designated as hedging instruments(1)1 (11)11 (1)1 9 (10)
Derivatives not designated as hedging instruments
Equity options(247)— — — (234)— — — 
Interest rate swaps(28)— — — 52 — — — 
Foreign currency swaps12 — — — — — — — 
Futures contracts3 — — — 5 — — — 
Other derivative investments2 — — — (4)— — — 
Other embedded derivatives(1)— — — — — — — 
Indexed annuities/IUL embedded derivatives— — (260)— — — (62)— 
Reinsurance related embedded derivatives261 — — — (41)— — — 
Total derivatives not designated as hedging instruments2 — (260)— (222)— (62)— 
Total derivatives $1 $1 $(271)$11 $(223)$1 $(53)$(10)
Schedule of Carrying Amount of Derivative Instruments
The following amounts are recorded in the unaudited Condensed Consolidated Balance Sheets related to the carrying amount of hedged assets and (liabilities) and the cumulative basis adjustment included in the carrying amount for fair value hedges:
March 31, 2026December 31, 2025
Line Item in the unaudited Condensed Consolidated Balance Sheets that includes hedged item Carrying Amount of Hedged Assets (Liabilities)Cumulative Amount of Fair Value Hedging Adjustment included in the Carrying Amount of the Hedged Assets (Liabilities)Carrying Amount of Hedged Assets (Liabilities)Cumulative Amount of Fair Value Hedging Adjustment included in the Carrying Amount of the Hedged Assets (Liabilities)
(In millions)
Fixed maturity securities, AFS, at amortized cost$— $— $21 $— 
Contractholder funds (1,611)— (862)(11)
Schedule of Exposure to Credit Loss on Call Options Held Information regarding our exposure to credit loss on the derivative instruments we hold, excluding futures contracts, is presented below:
Fair ValueCollateral (a)Net Credit Risk (a)
(In millions)
March 31, 2026$879 $737 $142 
December 31, 20251,137 1,185 34 
(a)Approximately $110 million of additional collateral was received on April 1, 2026.