In the ordinary course of business, our companies may use ceded reinsurance to limit potential losses, provide additional capacity for

growth, minimize exposure to significant risks or to provide greater diversification of our businesses. We may also use assumed

reinsurance to diversify our business. Reinsurance premiums ceded are recognized when due, along with corresponding benefits.

Amounts recoverable from reinsurers are presented as a component of Reinsurance assets. In addition to contracts which qualify for

reinsurance accounting under U.S. GAAP, the Company also manages its risks through contracts which follow deposit accounting.

Certain of our reinsurers have sought rate increases on certain YRT agreements. We have disputed, and expect to continue disputing,

any requested rate increases under these agreements. These disputes may lead to and have resulted in arbitration over the terms of

the reinsurance contracts. To the extent reinsurers seek retroactive premium increases, our practice is to assess and accrue our

current estimate of probable loss with respect to these matters when appropriate.

On August 1, 2025 and January 2, 2026, AGL and USL closed their coinsurance and modco reinsurance agreements with CSLR,

effective as of August 1, 2025 and January 1, 2026, respectively. Under the terms of these reinsurance agreements, AGL and USL

reinsured 100% of their individual variable annuity contracts. The majority of the variable annuity contracts are considered investment

contracts as they do not contain significant insurance risk; therefore, the reinsurance of such contracts are accounted for under

deposit accounting. As of the closing dates, we transferred to the reinsurer $2.1 billion of assets primarily consisting of fixed maturity

securities supporting the general account liabilities, net of a ceding commission. At inception, we recorded a net deposit asset of $2.8

billion, which includes a $2.2 billion deferred gain, reported in Other assets in the Condensed Consolidated Balance Sheets. The net

deposit asset was $2.6 billion and $2.5 billion as of June 30, 2026 and December 31, 2025, respectively. The deferred gain is

amortized into income over the estimated remaining life of the reinsured contracts. Additionally, $48.7 billion of separate account

liabilities were ceded under the modco portion of the agreement. Refer to Note 1 for additional information related to the reinsurance

AGL and USL have modco reinsurance agreements with Fortitude Re, a registered Class 4 and Class E reinsurer in Bermuda.

VALIC’s modco agreement with Fortitude Re was recaptured effective January 1, 2025, resulting in a $45 million charge to pre-tax

In the modco arrangement, the investments supporting the reinsurance agreements are withheld by, and therefore continue to reside

on the balance sheet of, the ceding company (i.e., Corebridge), thereby creating an obligation for the ceding company to pay the

reinsurer (i.e., Fortitude Re) at a later date. Additionally, as Corebridge maintains ownership of these investments, Corebridge

maintains its existing accounting for these assets (e.g., the changes in fair value of available-for-sale securities will be recognized

within OCI). Corebridge has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance

asset representing liabilities for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an

embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in

earnings through realized gains (losses). This embedded derivative is considered a total return swap with contractual returns that are

attributable to various assets and liabilities associated with these reinsurance agreements. As the majority of the invested assets

supporting the modco are fixed income securities that are available-for-sale, there is a mismatch between the accounting for the

embedded derivative as its changes in fair value are recorded through net income while changes in the fair value of the fixed maturity

securities available-for-sale are recorded through OCI.

There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes

the composition of the pool of assets:


	June 30, 2026		December 31, 2025
(in millions)	Carrying Value	Fair Value	Carrying Value	Fair Value	Corresponding Accounting Policy
Fixed maturity securities - available-for-sale	$12,306	$12,306	$12,739	$12,739	Fair value through other comprehensive income
Fixed maturity securities - fair value option	4,915	4,915	4,982	4,982	Fair value through net investment income
Commercial mortgage loans	2,615	2,430	2,745	2,594	Amortized cost
Real estate investments	86	127	118	165	Amortized cost
Private equity funds/hedge funds	1,716	1,716	1,800	1,800	Fair value through net investment income
Policy loans	295	295	302	302	Amortized cost
Short-term Investments	240	240	399	399	Fair value through net investment income
Funds withheld investment assets	22,173	22,029	23,085	22,981
Derivative assets, net(a)	—	—	—	—	Fair value through realized gains (losses)
Other(b)	936	936	667	667	Amortized cost
Total	$23,109	$22,965	$23,752	$23,648

(a)The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld

arrangements had a fair market value of $0 million and $716 million, respectively, as of June 30, 2026. The derivative assets and liabilities supporting the Fortitude Re

funds withheld arrangements had a fair market value of $0 million and $615 million, respectively, as of December 31, 2025. These derivative assets and liabilities are

fully collateralized either by cash or securities.

(b)Primarily comprised of Cash and Accrued investment income.

The impact of the funds withheld arrangements with Fortitude Re was as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
(in millions)	2026	2025	2026	2025
Net investment income - Fortitude Re funds withheld assets	$233	$343	$493	$674
Net realized losses on Fortitude Re funds withheld assets:
Net realized losses Fortitude Re funds withheld assets	(25)	(30)	(46)	(26)
Net realized losses Fortitude Re funds withheld embedded derivatives	(316)	(251)	(302)	(847)
Net realized losses - Fortitude Re funds withheld assets	(341)	(281)	(348)	(873)
Income (loss) before income tax expense (benefit)	(108)	62	145	(199)
Income tax expense (benefit)*	(23)	13	30	(42)
Net income (loss)	(85)	49	115	(157)
Change in unrealized appreciation (depreciation) of the invested assets supporting the Fortitude Re modco arrangement classified as available-for-sale*	79	(18)	(75)	145
Comprehensive income (loss)	$(6)	$31	$40	$(12)

*The income tax expense (benefit) and the tax impact in OCI was computed using the U.S. statutory tax rate of 21%.

Various assets supporting the Fortitude Re funds withheld arrangements are reported at amortized cost, and as such, changes in the

fair value of these assets are not reflected in the financial statements. However, changes in the fair value of these assets are included

in the embedded derivative in the Fortitude Re funds withheld arrangement and the appreciation (depreciation) of the assets is the

primary driver of the comprehensive income (loss) reflected above.

REINSURANCE – CREDIT LOSSES

The total reinsurance recoverables as of June 30, 2026 were $25.6 billion. As of that date, utilizing Corebridge’s Obligor Risk Ratings,

(i) approximately 100% of the reinsurance recoverables were investment grade, (ii) approximately 0% were non-investment grade

reinsurance recoverables and (iii) none of the reinsurance recoverables were related to entities that were not rated by Corebridge.

Reinsurance Recoverable Allowance

The following table presents a rollforward of the reinsurance recoverable allowance:


	Three Months Ended June 30,		Six Months Ended June 30,
(in millions)	2026	2025	2026	2025
Balance, beginning of period	$6	$10	$6	$12
Current period provision for expected credit losses and disputes	(1)	—	(1)	(2)
Balance, end of period	$5	$10	$5	$10

There were no material recoveries of credit losses previously written off for the six months ended June 30, 2026 or 2025.

We consider a reinsurance asset to be past due when it is 90 days past due and record an allowance for disputes when there is

reasonable uncertainty of the collectability of a disputed amount during the reporting period. Past-due balances were not significant

for any of the periods presented.