Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Fair Value and Carrying Value of Financial Instruments |
The following table summarizes the fair value and carrying value of the Company’s financial instruments (in millions): | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | Carrying
Value | Fair
Value | | Carrying
Value | Fair
Value | | Assets | | | | | | | Debt securities (1) | $ | 55,742 | | $ | 55,742 | | | $ | 50,791 | | $ | 50,791 | | | Equity securities | 262 | | 262 | | | 172 | | 172 | | | Mortgage loans (1) | 11,009 | | 10,725 | | | 10,211 | | 9,948 | | | Limited partnerships | 3,079 | | 3,079 | | | 2,836 | | 2,836 | | | Policy loans (1) | 4,484 | | 4,484 | | | 4,426 | | 4,426 | | | Freestanding derivative instruments | 422 | | 422 | | | 448 | | 448 | | | FHLBI capital stock | 87 | | 87 | | | 119 | | 119 | | | Cash and cash equivalents | 5,986 | | 5,986 | | | 5,704 | | 5,704 | | | Reinsurance recoverable on market risk benefits | 109 | | 109 | | | 118 | | 118 | | | Market risk benefit assets | 8,046 | | 8,046 | | | 7,867 | | 7,867 | | | Separate account assets | 245,387 | | 245,387 | | | 236,496 | | 236,496 | | | | | | | | | | Liabilities | | | | | | | Annuity reserves (2) | 51,808 | | 50,022 | | | 45,965 | | 45,458 | | | Market risk benefit liabilities | 3,368 | | 3,368 | | | 3,754 | | 3,754 | | | Guaranteed investment contracts and funding agreements (3) | 11,018 | | 10,865 | | | 11,021 | | 11,077 | | | Funds withheld payable under reinsurance treaties (1) | 14,090 | | 14,090 | | | 14,960 | | 14,960 | | | Debt | 2,769 | | 2,588 | | | 2,030 | | 1,877 | | | Securities lending payable (4) | 77 | | 77 | | | 35 | | 35 | | | Freestanding derivative instruments | 657 | | 657 | | | 257 | | 257 | | | Notes issued by consolidated VIEs | 2,474 | | 2,474 | | | 2,578 | | 2,578 | | | Repurchase agreements (4) | 400 | | 400 | | | 1,001 | | 1,001 | | | | | | | | | | Separate account liabilities | 245,387 | | 245,387 | | | 236,496 | | 236,496 | | | | | | | | | (1) Includes items carried at fair value under the fair value option and trading securities included as a component of debt securities. (2) Annuity reserves exclude contracts classified as insurance contracts. (3) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets. (4) Included as a component of repurchase agreements and securities lending payable on the Condensed Consolidated Balance Sheets. |
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| Schedule of Fair Value Option |
The fair value and aggregate contractual principal for mortgage loans where the fair value option was elected after December 31, 2021, were as follows (in millions):
| | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Fair value | $ | 595 | | | $ | 324 | | | Aggregate contractual principal | 614 | | | 330 | |
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| Schedule of Assets and Liabilities Carried at Fair Value by Hierarchy Levels |
The following tables summarize the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in millions):
| | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | Total | Level 1 | Level 2 | Level 3 | | Assets | | | | | | Debt securities | | | | | | U.S. government securities | $ | 3,469 | $ | 3,469 | $ | — | $ | — | | Other government securities | 1,112 | — | 1,112 | — | | Public utilities | 6,698 | — | 6,698 | — | | Corporate securities | 34,981 | — | 34,847 | 134 | | Residential mortgage-backed | 446 | — | 446 | — | | Commercial mortgage-backed | 2,029 | — | 2,029 | — | | Other asset-backed securities | 7,007 | — | 6,724 | 283 | | Equity securities | 262 | 102 | 149 | 11 | | Mortgage loans | 595 | — | — | 595 | | Limited partnerships (1) | 314 | — | — | 314 | | Policy loans | 3,617 | — | — | 3,617 | | Freestanding derivative instruments | 422 | — | 422 | — | | | | | | | | Cash and cash equivalents | 5,986 | 5,986 | — | — | | Reinsurance recoverable on market risk benefits | 109 | — | — | 109 | | Market risk benefit assets | 8,046 | — | — | 8,046 | | Separate account assets | 245,387 | — | 245,387 | — | | Total | $ | 320,480 | $ | 9,557 | $ | 297,814 | $ | 13,109 | | | | | | | | Liabilities | | | | | | Embedded derivative liabilities (2) | $ | 9,245 | $ | — | $ | 9,245 | $ | — | | Funds withheld payable under reinsurance treaties (3) | 2,155 | — | — | 2,155 | | Freestanding derivative instruments | 657 | — | 657 | — | | Notes issued by consolidated VIEs | 2,474 | — | 2,474 | — | | Market risk benefit liabilities | 3,368 | — | — | 3,368 | | Total | $ | 17,899 | $ | — | $ | 12,376 | $ | 5,523 | | | | | | | | (1) Excludes $2,765 million of limited partnership investments measured at NAV equivalent. | | (2) Includes the embedded derivative liabilities of $8,395 million related to RILA and $850 million liability related to fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets. | | (3) Includes the Athene embedded derivative asset of $1,651 million and funds withheld payable under reinsurance treaties at fair value under the fair value option. |
| | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | Total | Level 1 | Level 2 | Level 3 | | Assets | | | | | | Debt securities | | | | | | U.S. government securities | $ | 3,005 | | $ | 3,005 | | $ | — | | $ | — | | | Other government securities | 1,065 | | — | | 1,065 | | — | | | Public utilities | 6,146 | | — | | 6,146 | | — | | | Corporate securities | 32,916 | | — | | 32,570 | | 346 | | | Residential mortgage-backed | 442 | | — | | 442 | | — | | | Commercial mortgage-backed | 1,829 | | — | | 1,829 | | — | | | Other asset-backed securities | 5,388 | | — | | 4,962 | | 426 | | | Equity securities | 172 | | 10 | | 155 | | 7 | | | Mortgage loans | 324 | | — | | — | | 324 | | | Limited partnerships (1) | 250 | | — | | — | | 250 | | | Policy loans | 3,537 | | — | | — | | 3,537 | | | Freestanding derivative instruments | 448 | | — | | 448 | | — | | | Cash and cash equivalents | 5,704 | | 5,704 | | — | | — | | | Reinsurance recoverable on market risk benefits | 118 | | — | | — | | 118 | | | Market risk benefit assets | 7,867 | | — | | — | | 7,867 | | | Separate account assets | 236,496 | | — | | 236,496 | | — | | | Total | $ | 305,707 | | $ | 8,719 | | $ | 284,113 | | $ | 12,875 | | | | | | | | | Liabilities | | | | | | Embedded derivative liabilities (2) | $ | 6,906 | | $ | — | | $ | 6,906 | | $ | — | | | Funds withheld payable under reinsurance treaties (3) | 1,971 | | — | | — | | 1,971 | | | Freestanding derivative instruments | 257 | | — | | 257 | | — | | | Notes issued by consolidated VIEs | 2,578 | | — | | 2,578 | | — | | | Market risk benefit liabilities | 3,754 | | — | | — | | 3,754 | | | Total | $ | 15,466 | | $ | — | | $ | 9,741 | | $ | 5,725 | | | | | | | | | (1) Excludes $2,586 million of limited partnership investments measured at NAV equivalent. | | (2) Includes the embedded derivative liabilities of $6,043 million related to RILA and $863 million related to fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets. | | (3) Includes the Athene embedded derivative asset of $1,752 million and funds withheld payable under reinsurance treaties at fair value under the fair value option. |
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| Schedule of Balances of Level 3 Assets and Liabilities Measured at Fair Value with Corresponding Pricing Sources |
The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions):
| | | | | | | | | | | | | | | | | June 30, 2026 | | Assets | | Total | Internal | External | Debt securities: |
| | | | | | | | | | | | | | Corporate |
| $ | 134 | | $ | 30 | | $ | 104 | | Other asset-backed securities | | 283 | | 31 | | 252 | | Equity securities |
| 11 | | 1 | | 10 | | | Mortgage loans | | 595 | | — | | 595 | | Limited partnerships |
| 314 | | 1 | | 313 | | Policy loans | | 3,617 | | 3,617 | | — | | | Reinsurance recoverable on market risk benefits | | 109 | | 109 | | — | | | Market risk benefit assets | | 8,046 | | 8,046 | | — | | Total |
| $ | 13,109 | | $ | 11,835 | | $ | 1,274 | | | | | | | | Liabilities | | | | | Funds withheld payable under reinsurance treaties (1) | | 2,155 | | 2,155 | | — | | | Market risk benefit liabilities | | 3,368 | | 3,368 | | — | | Total |
| $ | 5,523 | | $ | 5,523 | | $ | — | | | | | | | (1) Includes the Athene Embedded Derivative asset of $1,651 million and funds withheld payable under reinsurance treaties at fair value under the fair value option. | | | | | | | | December 31, 2025 | | Assets | | Total | Internal | External | Debt securities: |
| | | | | | | | | | | | | | Corporate |
| $ | 346 | | $ | 31 | | $ | 315 | | Other asset-backed securities |
| 426 | | 84 | | 342 | | Equity securities |
| 7 | | 1 | | 6 | | Mortgage loans |
| 324 | | — | | 324 | | Limited partnerships |
| 250 | | 1 | | 249 | | Policy loans | | 3,537 | | 3,537 | | — | | | Reinsurance recoverable on market risk benefits | | 118 | | 118 | | — | | | Market risk benefit assets | | 7,867 | | 7,867 | | — | | Total |
| $ | 12,875 | | $ | 11,639 | | $ | 1,236 | | | | | | | | Liabilities | | | | | Funds withheld payable under reinsurance treaties (1) | | 1,971 | | 1,971 | | — | | | Market risk benefit liabilities | | 3,754 | | 3,754 | | — | | Total |
| $ | 5,725 | | $ | 5,725 | | $ | — | | | | | | | (1) Includes the Athene Embedded Derivative asset of $1,752 million and funds withheld payable under reinsurance treaties at fair value under the fair value option. |
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| Schedule of Quantitative Information on Significant Internally-Priced Level 3 Assets and Liabilities |
The table below presents quantitative information on internally-priced Level 3 assets and liabilities that use significant unobservable inputs (dollar amounts in millions):
| | | | | | | | | | | | | | | | | | | As of June 30, 2026 | | Fair
Value | Valuation Technique(s) | Significant Unobservable Input(s) | Assumption or Input Range | Impact of Increase in Input on Fair Value | | Assets | | | | | | | Reinsurance recoverable on market risk benefits | $ | 109 | | Discounted cash
flow | Mortality(1) | 0.01% - 23.31% | Increase | | | | Lapse(2) | 1.51% - 13.43% | Increase | | | | Utilization(3) | 0.00% - 50.00% | Decrease | | | | Withdrawal(4) | 41.00% - 48.50% | Decrease | | | | Non-performance risk adjustment(5) | 0.26% - 1.11% | Increase | | | | Long-term Equity Volatility(6) | 17.50% - 23.50% | Decrease |
| | | | | | | Market risk benefit assets | $ | 8,046 | | Discounted cash flow | Mortality(1) | 0.00% - 28.14% | Increase | | | | Lapse(2) | 0.05% - 51.00% | Increase | | | | Utilization(3) | 0.00% - 100.00% | Decrease | | | | Withdrawal(4) | 4.15% - 100.00% | Decrease | | | | Non-performance risk adjustment(5) | 0.72% - 1.90% | Increase | | | | Long-term Equity Volatility(6) | 17.50% - 23.50% | Decrease | | | | | | | | Liabilities | | | | | | | Market risk benefit liabilities | $ | 3,368 | | Discounted cash flow | Mortality(1) | 0.00% - 28.14% | Decrease | | | | Lapse(2) | 0.05% - 51.00% | Decrease | | | | Utilization(3) | 0.00% - 100.00% | Increase | | | | Withdrawal(4) | 4.15% - 100.00% | Increase | | | | Non-performance risk adjustment(5) | 0.72% - 1.90% | Decrease | | | | Long-term Equity Volatility(6) | 17.50% - 23.50% | Increase |
(1) Mortality rates vary by attained age, guaranteed benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied. (2) Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and guaranteed benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse rates applying when benefits are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when guaranteed benefits are utilized. (3) The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money. (4) The withdrawal rate represents the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount under the free partial withdrawal provision or the GMWB, as applicable. Free partial withdrawal rates vary based on the product type, duration, and GMAB election. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions. (5) Non-performance risk adjustment is applied as a spread over the risk-free rate to determine the rate used to discount the related cash flows and varies by projection year. (6) Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available. | | | | | | | | | | | | | | | | | | | As of December 31, 2025 | | Fair
Value | Valuation Technique(s) | Significant Unobservable Input(s) | Assumption or Input Range | Impact of Increase in Input on Fair Value | | Assets | | | | | | | Reinsurance recoverable on market risk benefits | $ | 118 | | Discounted cash flow | Mortality(1) | 0.01% - 23.31% | Increase | | | | Lapse(2) | 1.51% - 13.43% | Increase | | | | Utilization(3) | 0.00% - 50.00% | Decrease | | | | Withdrawal(4) | 41.00% - 48.50% | Decrease | | | | Non-performance risk adjustment(5) | 0.30% - 1.09% | Increase | | | | Long-term Equity Volatility(6) | 17.50% - 23.50% | Decrease | | | | | | | | Market risk benefit assets | $ | 7,867 | | Discounted cash flow | Mortality(1) | 0.00% - 28.14% | Increase | | | | Lapse(2) | 0.05% - 51.00% | Increase | | | | Utilization(3) | 0.00% - 100.00% | Decrease | | | | Withdrawal(4) | 4.15% - 100.00% | Decrease | | | | Non-performance risk adjustment(5) | 0.57% - 1.67% | Increase | | | | Long-term Equity Volatility(6) | 17.50% - 23.50% | Decrease | | | | | | | | Liabilities | | | | | | | Market risk benefit liabilities | $ | 3,754 | | Discounted cash flow | Mortality(1) | 0.00% - 28.14% | Decrease | | | | Lapse(2) | 0.05% - 51.00% | Decrease | | | | Utilization(3) | 0.00% - 100.00% | Increase | | | | Withdrawal(4) | 4.15% - 100.00% | Increase | | | | Non-performance risk adjustment(5) | 0.57% - 1.67% | Decrease | | | | Long-term Equity Volatility(6) | 17.50% - 23.50% | Increase |
(1) Mortality rates vary by attained age, guaranteed benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied. (2) Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and guaranteed benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse rates applying when benefits are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when guaranteed benefits are utilized. (3) The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money. (4) The withdrawal rate represents the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount under the free partial withdrawal provision or the GMWB, as applicable. Free partial withdrawal rates vary based on the product type, duration, and GMAB election. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions. (5) Non-performance risk adjustment is applied as a spread over the risk-free rate to determine the rate used to discount the related cash flows and varies by projection year. (6) Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.
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| Schedule of Rollforwards of Financial Instruments for Which Significant Unobservable Inputs (Level 3) are Used - Assets |
The tables below (in millions) provide roll-forwards for the three and six months ended June 30, 2026 and 2025 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the tables below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 may vary significantly from the total income effect of the hedged instruments. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Realized/Unrealized Gains (Losses) Included in | | | | | | | | | | Purchases, | | | | | | Fair Value | | | Sales, | Transfers | Fair Value | | | | as of | Net | Other | Issuances | in and/or | as of | | | | April 1, | Income | Comprehensive | and | (out of) | June 30, | | Three Months Ended June 30, 2026 | | 2026 | (Loss) | Income (Loss) | Settlements | Level 3 | 2026 | | Assets | | | | | | | | | | Debt securities | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate securities | | $ | 145 | | $ | 1 | | $ | — | | $ | 6 | | $ | (18) | | $ | 134 | | | Other asset-backed securities | | 278 | | — | | (2) | | (6) | | 13 | | 283 | | | Equity securities | | 9 | | 2 | | — | | — | | — | | 11 | | | Mortgage loans | | 196 | | (3) | | — | | 402 | | — | | 595 | | | Limited partnerships | | 276 | | 16 | | — | | 2 | | 20 | | 314 | | | Policy loans | | 3,556 | | 85 | | — | | (24) | | — | | 3,617 | | | Reinsurance recoverable on market risk benefits | | 121 | | (12) | | — | | — | | — | | 109 | | | Market risk benefit assets | | 6,701 | | 1,345 | | — | | — | | — | | 8,046 | | | | | | | | | | | | Liabilities | | | | | | | | | | Funds withheld payable under reinsurance treaties | | (1,979) | | (199) | | — | | 23 | | — | | (2,155) | | | Market risk benefit liabilities | | (3,971) | | 720 | | (63) | | (54) | | — | | (3,368) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Realized/Unrealized Gains (Losses) Included in | | | | | | | | | | Purchases, | | | | | | Fair Value | | | Sales, | Transfers | Fair Value | | | | as of | Net | Other | Issuances | in and/or | as of | | | | April 1, | Income | Comprehensive | and | (out of) | June 30, | | Three Months Ended June 30, 2025 | | 2025 | (Loss) | Income (Loss) | Settlements | Level 3 | 2025 | | Assets | | | | | | | | | | Debt securities | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate securities | | $ | 300 | | $ | 10 | | $ | (1) | | $ | 62 | | $ | 3 | | $ | 374 | | | Other asset-backed securities | | 791 | | (52) | | 30 | | 141 | | (58) | | 852 | | | Equity securities | | 7 | | — | | — | | — | | — | | 7 | | | Mortgage loans | | 451 | | 3 | | — | | (61) | | — | | 393 | | | Limited partnerships | | 203 | | 2 | | — | | — | | — | | 205 | | | Policy loans | | 3,492 | | 81 | | — | | (33) | | — | | 3,540 | | | Reinsurance recoverable on market risk benefits | | 126 | | (15) | | — | | — | | — | | 111 | | | Market risk benefit assets | | 7,326 | | 1,395 | | — | | — | | — | | 8,721 | | | | | | | | | | | | Liabilities | | | | | | | | | | Funds withheld payable under reinsurance treaties | | (1,560) | | (211) | | — | | (13) | | — | | (1,784) | | | Market risk benefit liabilities | | (4,125) | | 823 | | (267) | | — | | — | | (3,569) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Realized/Unrealized Gains (Losses) Included in | | | | | | | | | | Purchases, | | | | | | Fair Value | | | Sales, | Transfers | Fair Value | | | | as of | Net | Other | Issuances | in and/or | as of | | | | January 1, | Income | Comprehensive | and | (out of) | June 30, | | Six Months Ended June 30, 2026 | | 2026 | (Loss) | Income (Loss) | Settlements | Level 3 | 2026 | | Assets | | | | | | | | | | Debt securities | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate securities | | $ | 346 | | $ | 3 | | $ | 2 | | $ | (184) | | $ | (33) | | $ | 134 | | | Other asset-backed securities | | 426 | | (17) | | (7) | | (54) | | (65) | | 283 | | | Equity securities | | 7 | | 4 | | — | | — | | — | | 11 | | | Mortgage loans | | 324 | | (1) | | — | | 272 | | — | | 595 | | | Limited partnerships | | 250 | | 20 | | — | | 15 | | 29 | | 314 | | | Policy loans | | 3,537 | | 73 | | — | | 7 | | — | | 3,617 | | | Reinsurance recoverable on market risk benefits | | 118 | | (9) | | — | | — | | — | | 109 | | | Market risk benefit assets | | 7,867 | | 179 | | — | | — | | — | | 8,046 | | | | | | | | | | | | Liabilities | | | | | | | | | | Funds withheld payable under reinsurance treaties | | (1,971) | | (175) | | — | | (9) | | — | | (2,155) | | | Market risk benefit liabilities | | (3,754) | | 213 | | 270 | | (97) | | — | | (3,368) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Realized/Unrealized Gains (Losses) Included in | | | | | | | | | | Purchases, | | | | | | Fair Value | | | Sales, | Transfers | Fair Value | | | | as of | Net | Other | Issuances | in and/or | as of | | | | January 1, | Income | Comprehensive | and | (out of) | June 30, | | Six Months Ended June 30, 2025 | | 2025 | (Loss) | Income (Loss) | Settlements | Level 3 | 2025 | | Assets | | | | | | | | | | Debt securities | | | | | | | | | | | | | | | | | | Public utilities | | $ | 44 | | $ | — | | $ | — | | $ | (44) | | $ | — | | $ | — | | | Corporate securities | | 274 | | 10 | | 3 | | 89 | | (2) | | 374 | | | Other asset-backed securities | | 661 | | (52) | | 28 | | 152 | | 63 | | 852 | | | Equity securities | | 7 | | — | | — | | — | | — | | 7 | | | Mortgage loans | | 449 | | 7 | | — | | (63) | | — | | 393 | | | Limited partnerships | | 195 | | 9 | | — | | 1 | | — | | 205 | | | Policy loans | | 3,489 | | 71 | | — | | (20) | | — | | 3,540 | | | Reinsurance recoverable on market risk benefits | | 121 | | (10) | | — | | — | | — | | 111 | | | Market risk benefit assets | | 8,899 | | (178) | | — | | — | | — | | 8,721 | | | | | | | | | | | | Liabilities | | | | | | | | | | Funds withheld payable under reinsurance treaties | | (1,353) | | (404) | | — | | (27) | | — | | (1,784) | | | Market risk benefit liabilities | | (3,774) | | 145 | | 60 | | — | | — | | (3,569) | |
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| Schedule of Rollforwards of Financial Instruments for Which Significant Unobservable Inputs (Level 3) are Used - Liabilities |
The tables below (in millions) provide roll-forwards for the three and six months ended June 30, 2026 and 2025 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the tables below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 may vary significantly from the total income effect of the hedged instruments. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Realized/Unrealized Gains (Losses) Included in | | | | | | | | | | Purchases, | | | | | | Fair Value | | | Sales, | Transfers | Fair Value | | | | as of | Net | Other | Issuances | in and/or | as of | | | | April 1, | Income | Comprehensive | and | (out of) | June 30, | | Three Months Ended June 30, 2026 | | 2026 | (Loss) | Income (Loss) | Settlements | Level 3 | 2026 | | Assets | | | | | | | | | | Debt securities | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate securities | | $ | 145 | | $ | 1 | | $ | — | | $ | 6 | | $ | (18) | | $ | 134 | | | Other asset-backed securities | | 278 | | — | | (2) | | (6) | | 13 | | 283 | | | Equity securities | | 9 | | 2 | | — | | — | | — | | 11 | | | Mortgage loans | | 196 | | (3) | | — | | 402 | | — | | 595 | | | Limited partnerships | | 276 | | 16 | | — | | 2 | | 20 | | 314 | | | Policy loans | | 3,556 | | 85 | | — | | (24) | | — | | 3,617 | | | Reinsurance recoverable on market risk benefits | | 121 | | (12) | | — | | — | | — | | 109 | | | Market risk benefit assets | | 6,701 | | 1,345 | | — | | — | | — | | 8,046 | | | | | | | | | | | | Liabilities | | | | | | | | | | Funds withheld payable under reinsurance treaties | | (1,979) | | (199) | | — | | 23 | | — | | (2,155) | | | Market risk benefit liabilities | | (3,971) | | 720 | | (63) | | (54) | | — | | (3,368) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Realized/Unrealized Gains (Losses) Included in | | | | | | | | | | Purchases, | | | | | | Fair Value | | | Sales, | Transfers | Fair Value | | | | as of | Net | Other | Issuances | in and/or | as of | | | | April 1, | Income | Comprehensive | and | (out of) | June 30, | | Three Months Ended June 30, 2025 | | 2025 | (Loss) | Income (Loss) | Settlements | Level 3 | 2025 | | Assets | | | | | | | | | | Debt securities | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate securities | | $ | 300 | | $ | 10 | | $ | (1) | | $ | 62 | | $ | 3 | | $ | 374 | | | Other asset-backed securities | | 791 | | (52) | | 30 | | 141 | | (58) | | 852 | | | Equity securities | | 7 | | — | | — | | — | | — | | 7 | | | Mortgage loans | | 451 | | 3 | | — | | (61) | | — | | 393 | | | Limited partnerships | | 203 | | 2 | | — | | — | | — | | 205 | | | Policy loans | | 3,492 | | 81 | | — | | (33) | | — | | 3,540 | | | Reinsurance recoverable on market risk benefits | | 126 | | (15) | | — | | — | | — | | 111 | | | Market risk benefit assets | | 7,326 | | 1,395 | | — | | — | | — | | 8,721 | | | | | | | | | | | | Liabilities | | | | | | | | | | Funds withheld payable under reinsurance treaties | | (1,560) | | (211) | | — | | (13) | | — | | (1,784) | | | Market risk benefit liabilities | | (4,125) | | 823 | | (267) | | — | | — | | (3,569) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Realized/Unrealized Gains (Losses) Included in | | | | | | | | | | Purchases, | | | | | | Fair Value | | | Sales, | Transfers | Fair Value | | | | as of | Net | Other | Issuances | in and/or | as of | | | | January 1, | Income | Comprehensive | and | (out of) | June 30, | | Six Months Ended June 30, 2026 | | 2026 | (Loss) | Income (Loss) | Settlements | Level 3 | 2026 | | Assets | | | | | | | | | | Debt securities | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate securities | | $ | 346 | | $ | 3 | | $ | 2 | | $ | (184) | | $ | (33) | | $ | 134 | | | Other asset-backed securities | | 426 | | (17) | | (7) | | (54) | | (65) | | 283 | | | Equity securities | | 7 | | 4 | | — | | — | | — | | 11 | | | Mortgage loans | | 324 | | (1) | | — | | 272 | | — | | 595 | | | Limited partnerships | | 250 | | 20 | | — | | 15 | | 29 | | 314 | | | Policy loans | | 3,537 | | 73 | | — | | 7 | | — | | 3,617 | | | Reinsurance recoverable on market risk benefits | | 118 | | (9) | | — | | — | | — | | 109 | | | Market risk benefit assets | | 7,867 | | 179 | | — | | — | | — | | 8,046 | | | | | | | | | | | | Liabilities | | | | | | | | | | Funds withheld payable under reinsurance treaties | | (1,971) | | (175) | | — | | (9) | | — | | (2,155) | | | Market risk benefit liabilities | | (3,754) | | 213 | | 270 | | (97) | | — | | (3,368) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Realized/Unrealized Gains (Losses) Included in | | | | | | | | | | Purchases, | | | | | | Fair Value | | | Sales, | Transfers | Fair Value | | | | as of | Net | Other | Issuances | in and/or | as of | | | | January 1, | Income | Comprehensive | and | (out of) | June 30, | | Six Months Ended June 30, 2025 | | 2025 | (Loss) | Income (Loss) | Settlements | Level 3 | 2025 | | Assets | | | | | | | | | | Debt securities | | | | | | | | | | | | | | | | | | Public utilities | | $ | 44 | | $ | — | | $ | — | | $ | (44) | | $ | — | | $ | — | | | Corporate securities | | 274 | | 10 | | 3 | | 89 | | (2) | | 374 | | | Other asset-backed securities | | 661 | | (52) | | 28 | | 152 | | 63 | | 852 | | | Equity securities | | 7 | | — | | — | | — | | — | | 7 | | | Mortgage loans | | 449 | | 7 | | — | | (63) | | — | | 393 | | | Limited partnerships | | 195 | | 9 | | — | | 1 | | — | | 205 | | | Policy loans | | 3,489 | | 71 | | — | | (20) | | — | | 3,540 | | | Reinsurance recoverable on market risk benefits | | 121 | | (10) | | — | | — | | — | | 111 | | | Market risk benefit assets | | 8,899 | | (178) | | — | | — | | — | | 8,721 | | | | | | | | | | | | Liabilities | | | | | | | | | | Funds withheld payable under reinsurance treaties | | (1,353) | | (404) | | — | | (27) | | — | | (1,784) | | | Market risk benefit liabilities | | (3,774) | | 145 | | 60 | | — | | — | | (3,569) | |
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| Schedule of Components of Amounts Included in Purchases, Sales, Issuances and Settlements |
The components of the amounts included in purchases, sales, issuances and settlements for the three and six months ended June 30, 2026 and 2025 shown above are as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | Purchases | Sales | Issuances | Settlements | Total | | Assets | | | | | | | Debt securities | | | | | | | | | | | | | | | Corporate securities | | $ | 10 | | $ | (4) | | $ | — | | $ | — | | $ | 6 | | | | | | | | | | | Other asset-backed securities | | — | (6) | — | — | (6) | | | | | | | | | | Mortgage loans | | 440 | (38) | — | — | 402 | | Limited partnerships | | 2 | — | — | — | 2 | | Policy loans | — | — | 11 | (35) | (24) | | Total | | $ | 452 | $ | (48) | $ | 11 | $ | (35) | $ | 380 | | | | | | | | | | Liabilities | | | | | | | Funds withheld payable under reinsurance treaties | $ | — | $ | — | $ | (187) | $ | 210 | $ | 23 | | Market risk benefit liabilities | — | — | (54) | — | (54) | | Total | | $ | — | $ | — | $ | (241) | $ | 210 | $ | (31) | | | | | | | | | | Three Months Ended June 30, 2025 | Purchases | Sales | Issuances | Settlements | Total | | Assets | | | | | | | Debt securities | | | | | | | | | | | | | | | Corporate securities | $ | 79 | | $ | (17) | | $ | — | | $ | — | | $ | 62 | | | | | | | | | | Other asset-backed securities | | 176 | (35) | — | — | 141 | | | | | | | | | | Mortgage loans | | 18 | (79) | — | — | (61) | | | | | | | | | Policy loans | — | — | 11 | (44) | (33) | | Total | | $ | 273 | $ | (131) | $ | 11 | $ | (44) | $ | 109 | | | | | | | | Liabilities | | | | | | | Funds withheld payable under reinsurance treaties | — | — | (262) | 249 | (13) |
| | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | Purchases | Sales | Issuances | Settlements | Total | | Assets | | | | | | | Debt securities | | | | | | | | | | | | | | | Corporate securities | | $ | 11 | | $ | (195) | | $ | — | | $ | — | | $ | (184) | | | | | | | | | | | Other asset-backed securities | | 76 | (130) | — | — | (54) | | | | | | | | | | Mortgage loans | | 460 | (188) | — | — | 272 | | Limited partnerships | | 15 | — | — | — | 15 | | Policy loans | — | — | 89 | (82) | 7 | | Total | | $ | 562 | $ | (513) | $ | 89 | $ | (82) | $ | 56 | | | | | | | | | | Liabilities | | | | | | | Funds withheld payable under reinsurance treaties | $ | — | $ | — | $ | (371) | $ | 362 | $ | (9) | | Market risk benefit liabilities | — | — | (97) | — | (97) | | Total | | $ | — | $ | — | $ | (468) | $ | 362 | $ | (106) | | | | | | | | | | Six Months Ended June 30, 2025 | Purchases | Sales | Issuances | Settlements | Total | | Assets | | | | | | | Debt securities | | | | | | | Public utilities | | $ | — | | $ | (44) | | $ | — | | $ | — | | $ | (44) | | | Corporate securities | 183 | (94) | — | — | 89 | | Other asset-backed securities | 334 | (182) | — | — | 152 | | | | | | | | | | Mortgage loans | | 99 | (162) | — | — | (63) | | Limited partnerships | | 1 | — | — | — | 1 | | Policy loans | — | — | 72 | (92) | (20) | | Total | | $ | 617 | $ | (482) | $ | 72 | $ | (92) | $ | 115 | | | | | | | | | | Liabilities | | | | | | | Funds withheld payable under reinsurance treaties | $ | — | $ | — | $ | (378) | $ | 351 | $ | (27) |
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| Schedule of Portion of Gains (Losses) Included in Net Income or Other Comprehensive Income |
The portion of gains (losses) included in net income (loss) or OCI attributable to the change in unrealized gains and losses on Level 3 financial instruments still held was as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | | 2026 | | 2025 | | | Included in
Net Income | | Included in OCI | | Included in
Net Income | | Included in OCI | | Assets | | | | | | Debt securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate securities | | $ | 1 | | | $ | — | | | $ | 7 | | | $ | (2) | | | Other asset-backed securities | | — | | | (1) | | | (51) | | | 30 | | | Equity securities | | 3 | | | — | | | — | | | — | | | Mortgage loans | | (3) | | | — | | | 3 | | | — | | | Limited partnerships | | 19 | | | — | | | 2 | | | — | | | Policy loans | | 85 | | | — | | | 81 | | | — | | | Reinsurance recoverable on market risk benefits | | (12) | | | — | | | (15) | | | — | | | Market risk benefit assets | | 1,345 | | | — | | | 1,395 | | | — | | | | | | | | | | | | Liabilities | | | | | | | | | | Funds withheld payable under reinsurance treaties | | (199) | | | — | | | (211) | | | — | | | Market risk benefit liabilities | | 720 | | | (63) | | | 823 | | | (267) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | 2026 | | 2025 | | | Included in
Net Income | | Included in OCI | | Included in
Net Income | | Included in OCI | | Assets | | | | | | Debt securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate securities | | $ | 3 | | | $ | (4) | | | $ | 7 | | | $ | 2 | | | Other asset-backed securities | | (17) | | | (7) | | | (51) | | | 27 | | | Equity securities | | 3 | | | — | | | — | | | — | | | Mortgage loans | | (2) | | | — | | | 7 | | | — | | | Limited partnerships | | 20 | | | — | | | 9 | | | — | | | Policy loans | | 73 | | | — | | | 71 | | | — | | | Reinsurance recoverable on market risk benefits | | (9) | | | — | | | (10) | | | — | | | Market risk benefit assets | | 179 | | | — | | | (178) | | | — | | | | | | | | | | | | Liabilities | | | | | | | | | | Funds withheld payable under reinsurance treaties | | (175) | | | — | | | (404) | | | — | | | Market risk benefit liabilities | | 213 | | | 270 | | | 145 | | | 60 | |
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| Schedule of Carrying Amount and Fair Value by Hierarchy of Certain Financial Instruments Not Reported at Fair Value |
The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value (in millions):
| | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | | Fair Value | | Carrying
Value | | Total | Level 1 | Level 2 | Level 3 | | Assets | | | | | | | | Mortgage loans | $ | 10,414 | | | $ | 10,130 | | $ | — | | $ | — | | $ | 10,130 | | | Policy loans | 867 | | | 867 | | — | | — | | 867 | | | FHLBI capital stock | 87 | | | 87 | | 87 | | — | | — | | | | | | | | | | Liabilities | | | | | | | Annuity reserves (1) | $ | 42,563 | | | $ | 40,777 | | $ | — | | $ | — | | $ | 40,777 | | Guaranteed investment contracts and funding agreements (2) | 11,018 | | | 10,865 | | — | | — | | 10,865 | | | Funds withheld payable under reinsurance treaties | 11,935 | | | 11,935 | | — | | — | | 11,935 | | | Debt | 2,769 | | | 2,588 | | — | | 2,588 | | — | | Securities lending payable (3) | 77 | | | 77 | | — | | 77 | | — | | | | | | | | | Repurchase agreements (3) | 400 | | | 400 | | — | | 400 | | — | | Separate account liabilities (5) | 245,387 | | | 245,387 | | — | | 245,387 | | — | |
| | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | Fair Value | | Carrying
Value | | Total | Level 1 | Level 2 | Level 3 | | Assets | | | | | | | | Mortgage loans | $ | 9,887 | | | $ | 9,624 | | $ | — | | $ | — | | $ | 9,624 | | | Policy loans | 889 | | | 889 | | — | | — | | 889 | | | FHLBI capital stock | 119 | | | 119 | | 119 | | — | | — | | | | | | | | | | Liabilities | | | | | | | Annuity reserves (1) | $ | 39,059 | | | $ | 38,552 | | $ | — | | $ | — | | $ | 38,552 | | Guaranteed investment contracts and funding agreements (2) | 11,021 | | | 11,077 | | — | | — | | 11,077 | | | Funds withheld payable under reinsurance treaties | 12,989 | | | 12,989 | | — | | — | | 12,989 | | | Debt | 2,030 | | | 1,877 | | — | | 1,877 | | — | | Securities lending payable (3) | 35 | | | 35 | | — | | 35 | | — | | Repurchase agreements (3) | 1,001 | | | 1,001 | | — | | 1,001 | | — | | | | | | | | | Separate account liabilities (5) | 236,496 | | | 236,496 | | — | | 236,496 | | — | | | | | | | | | (1) Annuity reserves represent only the components of other contract holder funds that are considered to be financial instruments. | (2) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets. | (3) Included as a component of repurchase agreements and securities lending payable on the Condensed Consolidated Balance Sheets. | (4) Included as a component of other liabilities on the Condensed Consolidated Balance Sheets. | (5) The values of separate account liabilities are set equal to the values of separate account assets. |
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