Market Risk Benefits

14. Market Risk Benefits

other-than-nominal capital market risk. The MRB represents an amount that a policyholder receives in addition to the account balance

upon the occurrence of a specific event or circumstance, such as death, annuitization, or periodic withdrawal that involves protection

from other-than-nominal capital market risk. Certain contract features, such as GMWBs, GMDBs and guaranteed minimum income

benefits (“GMIBs”) commonly found in variable annuities, fixed index annuities and fixed annuities, are MRBs. MRBs are assessed at

contract inception using a non-option method involving attributed fees that results in an initial fair value of zero or an option method

that results in a fair value greater than zero.

MRBs are recorded at fair value, and Corebridge applies a non-option attributed fee valuation method for variable annuity products,

and an option-based valuation method (host offset) for fixed index and fixed products.

Changes in the fair value of Market Risk Benefits, net represents changes in the fair value of market risk benefit liabilities and

assets (with the exception of our own credit risk changes), and includes attributed rider fees and benefits, net of changes in the fair

value of derivative instruments and fixed maturity securities that are used to economically hedge market risk from the variable annuity

The following table presents the balances of and changes in MRBs:


	Individual Retirement	Group Retirement	Corporate and Other	Total
(in millions, except for attained age of contract holders)	Individual Retirement	Group Retirement	Corporate and Other	Total
Six Months Ended June 30, 2026
Balance, beginning of year	$5,118	$346	$349	$5,813
Effect of changes in our own credit risk	(556)	(105)	(729)	(1,390)
Balance, beginning of year, before effect of changes in our own credit risk	$4,562	$241	$(380)	$4,423
Issuances	458	22	7	487
Interest accrual	124	10	(7)	127
Attributed fees	—	28	351	379
Expected claims	—	(1)	(34)	(35)
Effect of changes in interest rates	(18)	(1)	(31)	(50)
Effect of changes in interest rate volatility	(1)	—	1	—
Effect of changes in equity markets	(40)	(31)	(464)	(535)
Effect of changes in equity index volatility	—	5	(6)	(1)
Actual outcome different from model expected outcome	(37)	(1)	92	54
Effect of changes in future expected policyholder behavior	—	—	—	—
Effect of changes in other future expected assumptions	16	1	(10)	7
Other, including foreign exchange	—	(1)	—	(1)
Balance, end of period before effect of changes in our own credit risk	5,064	272	(481)	4,855
Effect of changes in our own credit risk	418	84	564	1,066
Balance, end of period	5,482	356	83	5,921
Less: Reinsured MRB, end of period	—	—	(690)	(690)
Net Liability Balance after reinsurance recoverable	$5,482	$356	$(607)	$5,231
Net amount at risk
GMDB only	$—	$85	$480	$565
GMWB only	$802	$80	$—	$882
Combined*	$56	$12	$306	$374
Weighted average attained age of contract holders	68	64	72

Six Months Ended June 30, 2025
Balance, beginning of year	$3,757	$278	$309	$4,344
Effect of changes in our own credit risk	(224)	(69)	(587)	(880)
Balance, beginning of year, before effect of changes in our own credit risk	$3,533	$209	$(278)	$3,464
Issuances	364	18	5	387
Interest accrual	95	8	(3)	100
Attributed fees	—	29	351	380
Expected claims	—	(1)	(33)	(34)
Effect of changes in interest rates	22	8	112	142
Effect of changes in interest rate volatility	3	(1)	(20)	(18)
Effect of changes in equity markets	(14)	(9)	(372)	(395)
Effect of changes in equity index volatility	(1)	2	(1)	—
Actual outcome different from model expected outcome	7	(27)	51	31
Effect of changes in future expected policyholder behavior	—	1	—	1
Effect of changes in other future expected assumptions	2	—	—	2
Other, including foreign exchange	—	3	—	3
Balance, end of period before effect of changes in our own credit risk	4,011	240	(188)	4,063
Effect of changes in our own credit risk	263	70	591	924
Balance, end of period	4,274	310	403	4,987
Less: Reinsured MRB, end of period	—	—	(51)	(51)
Net liability balance after reinsurance recoverable	$4,274	$310	$352	$4,936
Net amount at risk
GMDB only	$—	$104	$521	$625
GMWB only	$382	$30	$—	$412
Combined*	$54	$12	$357	$423
Weighted average attained age of contract holders	68	64	72

*Certain contracts contain both guaranteed GMDB and GMWB features and are modeled together for the purposes of calculating the MRB.

The following is a reconciliation of MRBs by amounts in an asset position and in a liability position to the MRBs amount in

the Condensed Consolidated Balance Sheets:


	June 30, 2026			June 30, 2025
(in millions)	Asset*	Liability*	Net	Asset*	Liability*	Net
Individual Retirement	$—	$5,482	$5,482	$—	$4,274	$4,274
Group Retirement	254	610	356	217	527	310
Corporate and Other	2,238	1,631	(607)	1,112	1,464	352
Total	$2,492	$7,723	$5,231	$1,329	$6,265	$4,936

*Cash flows and attributed fees for MRBs are determined on a policy level basis and are reported based on their asset or liability position at the balance sheet date.

For additional information related to fair value measurements of MRBs, see Note 4.