Variable Interest Entities (Tables) - Consolidated Investment Entities

6 Months Ended

Jun. 30, 2026

Assets and liabilities measured at fair value

Schedule of balances of assets and liabilities measured at fair value on a recurring basis

The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:


	June 30, 2026
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	71	$	—	$	71


Syndicated loans	—		2,352		71		2,423
Total investments	—		2,423		71		2,494
Receivables	—		44		—		44

Total assets at fair value	$	—	$	2,467	$	71	$	2,538

Liabilities
Debt (1)	$	—	$	2,509	$	—	$	2,509
Other liabilities	—		87		—		87
Total liabilities at fair value	$	—	$	2,596	$	—	$	2,596


	December 31, 2025
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Investments:
Corporate debt securities	$	—	$	71	$	—	$	71


Syndicated loans	—		2,458		89		2,547
Total investments	—		2,529		89		2,618
Receivables	—		30		—		30

Total assets at fair value	$	—	$	2,559	$	89	$	2,648

Liabilities
Debt (1)	$	—	$	2,585	$	—	$	2,585
Other liabilities	—		159		—		159
Total liabilities at fair value	$	—	$	2,744	$	—	$	2,744

(1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.5 billion and $2.6 billion as of June 30, 2026 and December 31, 2025, respectively.

Summary of changes in Level 3 assets measured at fair value on a recurring basis

The following tables provide a summary of changes in Level 3 assets held by consolidated investment entities measured at fair value on a recurring basis:


	Syndicated Loans
	(in millions)
Balance at April 1, 2026	$	154
Total gains (losses) included in:
Net income	2		(1)
Purchases	8
Sales	(9)
Settlements	(1)
Transfers into Level 3	12
Transfers out of Level 3	(95)

Balance at June 30, 2026	$	71

Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2026	$	2	(1)



	Syndicated Loans
	(in millions)
Balance at April 1, 2025	$	130


Purchases	50
Sales	(7)
Settlements	(1)
Transfers into Level 3	61
Transfers out of Level 3	(58)

Balance at June 30, 2025	$	175

Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2025	$	1	(1)


	Syndicated Loans
	(in millions)
Balance at January 1, 2026	$	89
Total gains (losses) included in:
Net income	(2)		(1)
Purchases	31
Sales	(20)
Settlements	(6)
Transfers into Level 3	114
Transfers out of Level 3	(135)

Balance at June 30, 2026	$	71


	Common Stocks		Syndicated Loans
	(in millions)
Balance at January 1, 2025	$	1	$	118
Total gains (losses) included in:
Net income	—		(2)		(1)
Purchases	—		66
Sales	—		(7)
Settlements	—		(2)
Transfers into Level 3	—		128
Transfers out of Level 3	(1)		(126)

Balance at June 30, 2025	$	—	$	175

Changes in unrealized gains (losses) included in net income relating to assets held at June 30, 2025	$	—	$	(1)	(1)

(1) Included in Net investment income.

Schedule of fair value and unpaid principal balance of loans and debt for which fair value option has been elected

The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected:


	June 30, 2026		December 31, 2025
	(in millions)
Syndicated Loans
Unpaid principal balance	$	2,531	$	2,632
Excess unpaid principal over fair value	(108)		(85)
Fair value	$	2,423	$	2,547

Fair value of loans more than 90 days past due	$	1	$	1
Fair value of loans in nonaccrual status	$	2	$	1
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both	$	27	$	14

Debt
Unpaid principal balance	$	2,784	$	2,819
Excess unpaid principal over fair value	(275)		(234)
Carrying value (1)	$	2,509	$	2,585

Schedule of debt and stated interest rates

Debt of the consolidated investment entities and the stated interest rates were as follows:


	Carrying Value				Weighted Average Interest Rate
	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
	(in millions)
Debt of consolidated CLOs due 2030 - 2038	$	2,509	$	2,585	4.9	%	5.1	%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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