v3.26.1
Reinsurance (Tables)
 6 Months Ended
Jun. 30, 2026
Insurance [Abstract]  
Schedule of Assets Supporting Funds Withheld Arrangements 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%.
Schedule of 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