v3.26.1
Reinsurance (Tables)
 6 Months Ended
Jun. 30, 2026
Insurance [Abstract]  
Schedule of Components of Reinsurance Premiums and Benefits and Recoverable
Components of the Company’s reinsurance recoverable excluding MRBs were as follows (in millions):

June 30,December 31,
20262025
Reserves:
Life$5,052 $5,164 
Accident and health489 525 
Annuity benefits (1)
12,163 13,196 
Claims liability and other627 633 
Total$18,331 $19,518 
(1)     Other annuity benefits primarily attributable to fixed and fixed index annuities reinsured with Athene.
Schedule of Market Risk Benefit, Activity
Components of the Company’s reinsurance recoverable on market risk benefits were as follows (in millions):

June 30,December 31,
20262025
Variable annuity$29 $41 
Other product lines80 77 
Total$109 $118 
The following table presents a roll-forward of Closed Block Life additional liabilities for annuitization, death and other insurance benefits (in millions):

Six Months Ended June 30, 2026Year Ended December 31, 2025
Balance, beginning of period$1,195 $1,184 
Beginning of period cumulative effect of changes in shadow adjustments14 23 
Beginning balance excluding shadow1,209 1,207 
Effect of changes in cash flow assumptions— 5 
Effect of actual variances from expected experience15 33 
Interest accrual29 58 
Net assessments collected(56)(94)
Ending balance excluding shadow1,197 1,209 
End of period cumulative effect of changes in shadow adjustments(42)(14)
Balance, end of period$1,155 $1,195 

The following table presents the weighted average duration of Closed Block Life additional liabilities for annuitization, death and other insurance benefits. The weighted average duration represents average cohort-level duration weighted by the benefit reserves amount:

June 30, 2026December 31, 2025
Weighted average duration (years)8.68.7

The following table presents assessments and interest expense of Closed Block Life additional liabilities for annuitization, death and other insurance benefits recognized in the Condensed Consolidated Income Statements (in millions):

AssessmentsInterest Expense
Six Months Ended June 30, 2026Year Ended December 31, 2025Six Months Ended June 30, 2026Year Ended December 31, 2025
Additional liability for annuitization, death and other insurance benefits$(56)$(94)$29 $58 

The following table presents the weighted average current discount rate of Closed Block Life additional liabilities for annuitization, death and other insurance benefits, applied at the cohort level weighted by reserve benefit amount:

June 30, 2026December 31, 2025
Weighted average current discount rate5.00 %5.00 %
The following table presents the reconciliation of the market risk benefits balance in the Condensed Consolidated Balance Sheets (in millions):

June 30, 2026December 31, 2025
VariableOtherVariableOther
AnnuitiesProduct LinesTotalAnnuitiesProduct LinesTotal
Market risk benefit - (assets)$(8,043)$(3)$(8,046)$(7,863)$(4)$(7,867)
Market risk benefit - liabilities3,124 244 3,368 3,598 156 3,754 
Market risk benefit - net (asset) liability$(4,919)$241 $(4,678)$(4,265)$152 $(4,113)
Schedule of Sources of Income Related to Funds Withheld Under Reinsurance Treaties
The sources of net investment income were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Debt securities (1)
$618 $415 $1,090 $846 
Equity securities (2)
8 5 (51)6 
Mortgage loans 104 88 203 171 
Policy loans 14 16 30 33 
Limited partnerships 28 22 47 60 
Other investment income 58 54 115 106 
Total investment income excluding funds withheld assets830 600 1,434 1,222 
Investment expenses (3)
(103)(109)(166)(203)
Net investment income excluding funds withheld assets727 491 1,268 1,019 
Net investment income on funds withheld assets (see Note 8)201 227 400 454 
Net investment income $928 $718 $1,668 $1,473 
(1) Includes changes in fair value gains (losses) on trading securities and includes $26 million and $(46) million for the three and six months ended June 30, 2026, respectively, and $(64) million and $(74) million for the three and six months ended June 30, 2025, respectively, related to the change in fair value for securities carried under the fair value option.
(2) Includes changes in fair value of TPG common stock. See discussion above on our Long-term Strategic Partnership with TPG.
(3) Includes expenses from consolidated variable interest entities, which includes changes in fair value of notes issued by those entities, of $(56) million and $(72) million for the three and six months ended June 30, 2026, respectively, and $(42) million and $(74) million for the three and six months ended June 30, 2025, respectively.
The following assets and liabilities were held in support of reserves associated with the Company’s funds withheld reinsurance agreements and were reported in the respective financial statement line items on the Condensed Consolidated Balance Sheets (in millions):
June 30,December 31,
20262025
Assets
Debt securities, available-for-sale$6,870 $7,947 
Debt securities, at fair value under the fair value option182 6 
Equity securities53 88 
Mortgage loans1,986 2,102 
Mortgage loans, at fair value under the fair value option
595 324 
Policy loans3,628 3,548 
Freestanding derivative instruments, net6 (4)
Other invested assets687 712 
Cash and cash equivalents129 375 
Accrued investment income83 92 
Other assets and liabilities, net 91 5 
Total assets (1)
$14,310 $15,195 
Liabilities
Funds held under reinsurance treaties (2)
$14,090 $14,960 
Total liabilities$14,090 $14,960 
(1) Certain assets are reported at amortized cost while the fair value of those assets is reported in the embedded derivative in the funds withheld liability.
(2) Includes funds withheld embedded derivative asset (liability) of $1,651 million and $1,752 million at June 30, 2026 and December 31, 2025, respectively.
The sources of income related to funds withheld under reinsurance treaties reported in net investment income in the Condensed Consolidated Income Statements were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Debt securities (1)
$82 $94 $169 $194 
Equity securities — 1 (1)1 
Mortgage loans (2)
27 41 53 84 
Policy loans 86 83 173 166 
Limited partnerships 15 17 23 27 
Other investment income 2 3 5 7 
     Total investment income on funds withheld assets 212 239 422 479 
Other investment expenses on funds withheld assets (3)
(11)(12)(22)(25)
        Total net investment income on funds withheld reinsurance treaties $201 $227 $400 $454 
    
(1)    Includes $— million and $— million for the three and six months ended June 30, 2026, respectively, and nil and $1 million for the three and six months ended June 30, 2025, respectively, related to the change in fair value for securities carried under the fair value option.
(2)    Includes $(3) million and $(1) million for the three and six months ended June 30, 2026, respectively, and $3 million and $7 million for the three and six months ended June 30, 2025, respectively, related to the change in fair value for mortgage loans carried under the fair value option.
(3)    Includes management fees.
Schedule of Gains and Losses on Funds Withheld Reinsurance Treaties
The gains and losses on funds withheld reinsurance treaties as a component of net gains (losses) on derivatives and investments in the Condensed Consolidated Income Statements were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Available-for-sale securities
      Realized gains on sale $1 $3 $3 $8 
      Realized losses on sale (55)(25)(67)(74)
      Credit loss expense 1 (25)(15)(27)
Credit loss expense on mortgage loans (2)1 (7)(3)
Other (14)15 (6)22 
Net gains (losses) on non-derivative investments (69)(31)(92)(74)
Net gains (losses) on derivative instruments (2)(49)2 (66)
Net gains (losses) on funds withheld payable under reinsurance treaties (1)
(226)(247)(366)(575)
     Total net gains (losses) on derivatives and investments $(297)$(327)$(456)$(715)
(1) Includes the Athene embedded derivative gain (loss) of $(115) million and $(101) million for the three and six months ended June 30, 2026, respectively, and $(130) million and $(331) million for the three and six months ended June 30, 2025, respectively.