Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 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	$	–	$	64,503	$	3,398	$	67,901
U.S. government bonds	893		69		–		962
State and municipal bonds	–		2,067		–		2,067
Foreign government bonds	–		203		–		203


RMBS	–		1,953		–		1,953
CMBS	–		2,771		117		2,888

ABS	–		13,866		5,032		18,898
Hybrid and redeemable preferred securities	29		104		80		213


Trading securities	–		1,327		188		1,515
Equity securities (1)	31		231		30		292
Mortgage loans on real estate	–		–		195		195
Derivative investments (2)	–		17,351		62		17,413
Other investments – short-term investments	–		245		5		250


MRB assets	–		–		5,077		5,077
Other assets:


Ceded MRBs	–		–		2		2

Indexed annuity ceded embedded derivatives	–		–		1,437		1,437
Separate account assets	348		187,904		–		188,252
Total assets	$	1,301	$	292,594	$	15,623	$	309,518

Liabilities
Policyholder account balances – RILA, fixed annuity

and IUL contracts	$	–	$	–	$	(16,856)	$	(16,856)


Funds withheld reinsurance liabilities – reinsurance-related
embedded derivatives	–		154		(336)		(182)

MRB liabilities	–		–		(895)		(895)
Other liabilities:
Ceded MRBs	–		–		(389)		(389)
Derivative liabilities (2)	–		(5,977)		(116)		(6,093)
Total liabilities	$	–	$	(5,823)	$	(18,592)	$	(24,415)


	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 $164 million and $135 million as of June 30, 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 June 30, 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	$	–	$	–	$	22,347	$	22,347	$	23,211
Other investments	–		741		6,508		7,249		7,249
Policy loans	–		2,596		–		2,596		2,596



Liabilities
Policyholder account balances – certain investment
contracts	$	–	$	–	$	(35,886)	$	(35,886)	$	(44,055)
Policyholder account balances – funding agreements	–		(4,810)		–		(4,810)		(4,833)
Short-term debt	–		(399)		–		(399)		(400)
Long-term debt	–		(6,091)		–		(6,091)		(6,465)
Funds withheld reinsurance-related liabilities – excluding
embedded derivatives	–		–		(16,626)		(16,626)		(16,626)


	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 June 30, 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	$	3,282	$	(12)	$	1	$	184	$	(57)	$	3,398




CMBS	103		1		(1)		42		(28)		117

ABS	4,153		(18)		(32)		1,068		(139)		5,032
Hybrid and redeemable preferred
securities	82		–		(1)		(1)		–		80

Trading securities	223		–		–		(35)		–		188
Equity securities	33		(3)		–		–		–		30
Mortgage loans on real estate	198		(2)		–		(1)		–		195

Other investments – short-term
investments	28		–		–		5		(28)		5
Other assets:
Ceded MRBs (3)	2		–		–		–		–		2
Indexed annuity ceded embedded
derivatives (4)	1,332		139		–		(34)		–		1,437

Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)	$	(13,444)	$	(3,589)	$	–	$	177	$	–	$	(16,856)






Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)	(252)		(84)		–		–		–		(336)
Other liabilities:
Ceded MRBs (3)	(329)		(60)		–		–		–		(389)
Derivative liabilities, net (4)	(65)		11		–		–		–		(54)


	For the Three Months Ended June 30, 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	$	2,813	$	(24)	$	5	$	30	$	89	$	2,913




RMBS	8		–		–		67		(7)		68
CMBS	30		–		–		18		(7)		41
ABS	2,618		–		(12)		410		(39)		2,977

Hybrid and redeemable preferred
securities	81		–		–		1		–		82


Trading securities	281		3		–		(4)		–		280
Equity securities	35		(2)		–		(4)		54		83
Mortgage loans on real estate	232		(1)		2		(1)		–		232
Other investments – short-term
investments	15		–		–		9		–		24



Other assets:
Ceded MRBs (3)	2		–		–		–		–		2
Indexed annuity ceded embedded
derivatives (4)	1,092		73		–		71		–		1,236
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)	$	(10,807)	$	(2,146)	$	–	$	(136)	$	–	$	(13,089)




Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)	(323)		14		–		–		–		(309)
Other liabilities:
Ceded MRBs (3)	(314)		(27)		–		–		–		(341)
Derivative liabilities, net (4)	(109)		(6)		–		–		–		(115)


	For the Six Months Ended June 30, 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	$	(26)	$	(29)	$	317	$	(777)	$	3,398




CMBS	85		1		(2)		70		(37)		117

ABS	3,584		(25)		(71)		1,675		(131)		5,032
Hybrid and redeemable preferred
securities	83		–		(2)		(1)		–		80




Trading securities	329		(2)		–		(117)		(22)		188
Equity securities	33		(6)		–		3		–		30
Mortgage loans on real estate	199		(1)		(1)		(2)		–		195
Other investments – short-term
investments	1		–		–		32		(28)		5
Other assets:


Ceded MRBs (3)	2		–		–		–		–		2
Indexed annuity ceded embedded
derivatives (4)	1,369		120		–		(52)		–		1,437
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)	$	(15,115)	$	(1,986)	$	–	$	245	$	–	$	(16,856)






Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)	(434)		98		–		–		–		(336)
Other liabilities:
Ceded MRBs (3)	(359)		(30)		–		–		–		(389)
Derivative liabilities, net (4)	(108)		12		–		42		–		(54)


	For the Six Months Ended June 30, 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	$	(37)	$	3	$	134	$	111	$	2,913



RMBS	1		–		–		74		(7)		68
CMBS	8		–		–		40		(7)		41

ABS	2,092		(21)		5		883		18		2,977
Hybrid and redeemable preferred
securities	63		–		–		19		–		82

Trading securities	259		5		–		(4)		20		280
Equity securities	34		(8)		–		3		54		83
Mortgage loans on real estate	232		(2)		4		(2)		–		232
Other investments – short-term
investments	23		–		–		1		–		24
Other assets:
Ceded MRBs (3)	2		–		–		–		–		2
Indexed annuity ceded embedded
derivatives (4)	1,115		50		–		71		–		1,236
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)	$	(12,449)	$	(472)	$	–	$	(168)	$	–	$	(13,089)


Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)	(234)		(75)		–		–		–		(309)
Other liabilities:
Ceded MRBs (3)	(381)		40		–		–		–		(341)
Derivative liabilities, net (4)	(136)		21		–		–		–		(115)

(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 June 30, 2026
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	338	$	(50)	$	(20)	$	(84)	$	–	$	184




CMBS	42		–		–		–		–		42
ABS	1,213		–		–		(105)		(40)		1,068

Hybrid and redeemable preferred
securities	–		–		(1)		–		–		(1)




Trading securities	–		(20)		(7)		(8)		–		(35)
Equity securities	5		(5)		–		–		–		–
Mortgage loans on real estate	1		–		–		(2)		–		(1)

Other investments – short-term investments	5		–		–		–		–		5
Other assets – indexed annuity ceded
embedded derivatives	–		–		–		(34)		–		(34)
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts	$	(402)	$	–	$	–	$	579	$	–	$	177


	For the Three Months Ended June 30, 2025
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	414	$	(241)	$	(6)	$	(127)	$	(10)	$	30
RMBS	67		–		–		–		–		67


CMBS	33		(15)		–		–		–		18

ABS	574		(41)		–		(82)		(41)		410

Hybrid and redeemable preferred
securities	1		–		–		–		–		1


Trading securities	11		(10)		–		(5)		–		(4)
Equity securities	7		(11)		–		–		–		(4)
Mortgage loans on real estate	1		–		–		(2)		–		(1)

Other investments – short-term investments	9		–		–		–		–		9
Other assets – indexed annuity ceded
embedded derivatives	67		–		–		4		–		71
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts	$	(425)	$	–	$	–	$	289	$	–	$	(136)


	For the Six Months Ended June 30, 2026
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	600	$	(64)	$	(20)	$	(176)	$	(23)	$	317




CMBS	70		–		–		–		–		70


ABS	2,006		–		–		(267)		(64)		1,675
Hybrid and redeemable preferred
securities	–		–		(1)		–		–		(1)




Trading securities	–		(32)		(7)		(12)		(66)		(117)
Equity securities	8		(5)		–		–		–		3
Mortgage loans on real estate	1		–		–		(3)		–		(2)
Derivative investments	42		–		–		–		–		42
Other investments – short-term investments	33		–		(1)		–		–		32
Other assets – indexed annuity ceded
embedded derivatives	–		–		–		(52)		–		(52)
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts	$	(761)	$	–	$	–	$	1,006	$	–	$	245


	For the Six Months Ended June 30, 2025
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	665	$	(286)	$	(6)	$	(229)	$	(10)	$	134



RMBS	74		–		–		–		–		74
CMBS	55		(15)		–		–		–		40
ABS	1,163		(41)		(10)		(172)		(57)		883

Hybrid and redeemable preferred
securities	21		(2)		–		–		–		19
Trading securities	57		(52)		–		(9)		–		(4)
Equity securities	15		(12)		–		–		–		3
Mortgage loans on real estate	1		(1)		–		(2)		–		(2)
Other investments – short-term investments	11		–		(10)		–		–		1

Other assets – indexed annuity ceded
embedded derivatives	93		–		–		(22)		–		71
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts	$	(656)	$	–	$	–	$	488	$	–	$	(168)

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 June 30,				For the Six Months Ended June 30,
	2026		2025			2026		2025
Investments:










Trading securities (1)	$	–	$	3		$	(2)	$	–
Equity securities (1)	(2)		(1)			(5)		(7)
Mortgage loans on real estate (1)	(2)		(1)			(1)		(2)
Derivative investments, net (1)	(4)		(6)			(26)		(6)

MRBs, net (2)	1,454		933			460		(367)
Funds withheld reinsurance liabilities –
reinsurance-related embedded derivatives (1)	(84)		14			98		(75)
Embedded derivatives – indexed annuity
and IUL contracts, net (1)	365		206			733		375

(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 June 30,				For the Six Months Ended June 30,
	2026		2025			2026		2025
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	(7)	$	(7)		$	(45)	$	(17)




CMBS	(1)		–			(2)		–
ABS	(30)		(6)			(69)		10

Hybrid and redeemable preferred
securities	(1)		–			(1)		–

Mortgage loans on real estate	–		2			–		4

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 June 30, 2026						For the Three Months Ended June 30, 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	$	–	$	(57)	$	(57)	$	90	$	(1)	$	89



RMBS	–		–		–		–		(7)		(7)
CMBS	–		(28)		(28)		–		(7)		(7)

ABS	17		(156)		(139)		13		(52)		(39)






Equity securities	–		–		–		54		–		54

Other investments – short-term investments	–		(28)		(28)		–		–		–


	For the Six Months Ended June 30, 2026						For the Six Months Ended June 30, 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	$	(833)	$	(777)	$	112	$	(1)	$	111


RMBS	–		–		–		–		(7)		(7)
CMBS	–		(37)		(37)		–		(7)		(7)


ABS	41		(172)		(131)		70		(52)		18








Trading securities	–		(22)		(22)		20		–		20
Equity securities	–		–		–		54		–		54
Other investments – short-term investments	–		(28)		(28)		–		–		–

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 June 30, 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	$	439	Discounted cash flow	Liquidity/duration adjustment (2)	0.0%	–	7.9%	2.0%






CMBS	40		Discounted cash flow	Liquidity/duration adjustment (2)	2.0%	–	2.1%	2.0%
Hybrid and redeemable
preferred securities	39		Discounted cash flow	Liquidity/duration adjustment (2)	1.7%	–	1.8%	1.7%
Equity securities	4		Discounted cash flow	Liquidity/duration adjustment (2)	4.5%	–	4.5%	4.5%

MRB assets	5,077		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%	–	2.0%	1.6%
				Mortality (7)			(9)	(10)
				Volatility (8)	1.0%	–	27.0%	15.0%




Other assets:
Ceded MRBs (11)	2
Indexed annuity
ceded embedded
derivatives	1,437		Discounted cash flow	Lapse (3)	0.0%	–	9.0%	(10)
				Mortality (7)			(9)	(10)
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(16,770)	Discounted cash flow	Lapse (3)	0.0%	–	9.0%	(10)
				Mortality (7)			(9)	(10)

MRB liabilities	(895)		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%	–	2.0%	1.6%
				Mortality (7)			(9)	(10)
				Volatility (8)	1.0%	–	27.0%	15.0%
Other liabilities – ceded
MRBs (11)	(389)

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 June 30,		As of December 31,
	2026		2025

Fair value	$	195	$	199
Aggregate contractual principal	229		231