v3.26.1
DERIVATIVES (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments by Category
The following table presents the gross notional amount and fair value of the Company’s derivatives:

Derivative Instruments by Category
June 30, 2026December 31, 2025
Fair ValueFair Value
Notional
Amount
Derivative
Assets
Derivative Liabilities
Net
Derivatives
Notional AmountDerivative AssetsDerivative Liabilities
Net Derivatives
(in millions)
Derivatives: designated for hedge accounting (1)
 Cash flow hedges:
 Currency swaps $3,555 $114 $129 $(15)$3,286 $96 $142 $(46)
 Interest swaps952 — 348 (348)952 — 330 (330)
 Total: designated for hedge accounting 4,507 114 477 (363)4,238 96 472 (376)
Derivatives: not designated for hedge accounting (1)
Equity contracts:
Futures 18,198 — 2 (2)15,052 1 — 1 
Swaps 19,472 77 765 (688)18,290 61 47 14 
Options99,734 32,043 8,144 23,899 88,273 27,686 6,580 21,106 
Forwards
— 92 — 92 — 34 — 34 
June 30, 2026December 31, 2025
Fair ValueFair Value
Notional
Amount
Derivative
Assets
Derivative Liabilities
Net
Derivatives
Notional AmountDerivative AssetsDerivative Liabilities
Net Derivatives
Interest rate contracts:
Futures8,415 — — — 8,802 — — 
Swaps585 5 4 1 601 — 18 (18)
Options50 5 — 5 50 5 — 5 
Credit contracts:
Credit default swaps443 1 11 (10)397 1 11 (10)
Currency contracts:
Currency swaps110 3 — 3 — — — — 
Currency forwards116 20 18 2 90 15 16 (1)
Other freestanding contracts:
Margin— 1,099 — 1,099 — 948 — 948 
Collateral— 137 22,778 (22,641)— 144 20,776 (20,632)
Total: not designated for hedge accounting147,123 33,482 31,722 1,760 131,555 28,895 27,448 1,447 
Embedded derivatives:
SCS, SIO, MSO and IUL indexed features (2)— — 25,743 (25,743)— — 21,819 (21,819)
Modco payable
— 3 — 3 — (1)— (1)
Total embedded derivatives— 3 25,743 (25,740)— (1)21,819 (21,820)
Total derivative instruments$151,630 $33,599 $57,942 $(24,343)$135,793 $28,990 $49,739 $(20,749)
______________
(1)Reported in other invested assets in the consolidated balance sheets.
(2)Reported in policyholders’ account balances in the consolidated balance sheets.
The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss):
Derivative Instruments by Category
Three Months Ended June 30, 2026Six Months Ended June 30, 2026
Net Derivative Gains (Losses) (1)
Net Investment
Income
Interest Credited To Policyholders
Account Balances
AOCI
Net
Derivative
Gains
(Losses)
(1)
Net
Investment
Income
Interest Credited To Policyholders Account BalancesAOCI
(in millions)
Derivatives: designated for hedge accounting
Cash flow hedges:
Currency swaps$(1)$6 $(6)$(12)$— $11 $(25)$54 
Interest swaps— (28)— 15 — (21)— 11 
Total: designated for hedge accounting(1)(22)(6)3 — (10)(25)65 
Derivatives: not Designated for hedge accounting
Equity contracts:
Futures492 — — — 407 — — — 
Swaps(2,118)— — — (1,598)— — — 
Options7,401 — — — 5,148 — — — 
Forwards
93 — — — 58 — — — 
Interest rate contracts:
Futures35 — — — 37 — — — 
Swaps— — — — (6)— — — 
Options
— — — — — — — — 
Credit contracts:
Credit default swaps(4)— — — (1)— — — 
Currency contracts:
Currency swaps3 — — — 3 — — — 
Currency forwards4 — — — 6 — — — 
Other freestanding contracts:
Margin— — — — — — — — 
Collateral— — — — — — — — 
Total: not designated for hedge accounting5,906 — — — 4,054 — — — 
Embedded derivatives:
SCS, SIO,MSO and IUL indexed features(7,949)— — — (5,512)— — — 
Modco payable
(11)— — — (17)— — — 
Total embedded derivatives(7,960)— — — (5,529)— — — 
Total derivative instruments$(2,055)$(22)$(6)$3 $(1,475)$(10)$(25)$65 
______________
(1)Reported in net derivative gains (losses) in the consolidated statements of income (loss).
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Net Derivative Gains (Losses) (1)
Net Investment IncomeInterest Credited To Policyholders Account BalancesAOCI
Net Derivative Gains (Losses) (1)
Net Investment IncomeInterest Credited To Policyholders Account BalancesAOCI
(in millions)
Derivatives: designated for hedge accounting
Cash flow hedges:
Currency swaps$— $9 $73 $(151)$— $15 $106 $(188)
Interest swaps— (8)— 13 — (11)— (8)
Total: designated for hedge accounting— 1 73 (138)— 4 106 (196)
Derivatives: not Designated for hedge accounting
Equity contracts:
Futures472 — — — 272 — — — 
Swaps(1,204)— — — (499)— — — 
Options4,235 — — — 1,590 — — — 
Forwards
— — — — — — — — 
Interest rate contracts:
Futures(98)— — — (121)— — — 
Swaps(16)— — — (1)— — — 
Options(1)— — — (2)— — — 
Credit contracts:
Credit default swaps(3)— — — (3)— — — 
Currency contracts:
Currency swaps(57)— — — (87)— — — 
Currency forwards(6)— — — (6)— — — 
Total: not designated for hedge accounting3,322 — — — 1,143 — — — 
Embedded derivatives:
SCS, SIO,MSO and IUL indexed features(4,696)— — — (1,718)— — — 
Modco payable
— — — — — — — — 
Total embedded derivatives(4,696)— — — (1,718)— — — 
Total derivative instruments (1)
$(1,374)$1 $73 $(138)$(575)$4 $106 $(196)
______________
(1)Reported in net derivative gains (losses) in the consolidated statements of income (loss).
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table presents a roll-forward of cash flow hedges recognized in AOCI:
Roll-forward of Cash flow hedges in AOCI
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Balance, beginning of period $(5)$22 $(67)$80 
Amount recorded in AOCI
Currency swaps(17)(91)31 (81)
Interest swaps(16)— (18)(29)
Total amount recorded in AOCI(33)(91)13 (110)
Amount reclassified from (to) income to AOCI
Currency swaps (1)5 (60)23 (107)
Interest swaps (1)31 13 29 21 
Total amount reclassified from (to) income to AOCI
36 (47)52 (86)
Balance, end of period (2)$(2)$(116)$(2)$(116)
______________
(1)    Currency swaps and Interest rate swap income is reported in Net investment income in the consolidated statements of income (loss).
(2)    The Company does not estimate the amount of the deferred losses in AOCI at June 30, 2026 and 2025, which will be released and reclassified into net income (loss) over the next 12 months as the amounts cannot be reasonably estimated.
Schedule of Offsetting Financial Assets and Liabilities and Derivative Instruments
The following tables present information about the Company’s offsetting of financial assets and liabilities and derivative instruments:
Offsetting of Financial Assets and Liabilities and Derivative Instruments
As of June 30, 2026

Gross Amount RecognizedGross Amount Offset in the Balance SheetsNet Amount Presented in the Balance SheetsGross Amount not Offset in the Balance Sheets (3)Net Amount
(in millions)
Assets:
Derivative assets (1)$33,597 $25,348 $8,249 $(6,830)$1,419 
Secured lending
201 — 201 — 201 
Other financial assets2,166 — 2,166 — 2,166 
Other invested assets$35,964 $25,348 $10,616 $(6,830)$3,786 
Liabilities:
Derivative liabilities (2)$25,369 $25,348 $21 $— $21 
Secured lending
201 — 201 — 201 
Other financial liabilities6,602 — 6,602 — 6,602 
Other liabilities$32,172 $25,348 $6,824 $— $6,824 
______________
(1)Excludes Asset Management segment’s derivative assets of consolidated VIEs/VOEs.
(2)Excludes Asset Management segment’s derivative liabilities of consolidated VIEs/VOEs.
(3)Financial instruments/collateral sent (held).
As of December 31, 2025

Gross Amount RecognizedGross Amount Offset in the Balance SheetsNet Amount Presented in the Balance SheetsGross Amount not Offset in the Balance Sheets (3)Net Amount
(in millions)
Assets:
Derivative assets (1)$28,990 $20,424 $8,566 $(7,344)$1,222 
Secured Lending
408 — 408 — 408 
Other financial assets1,994 — 1,994 — 1,994 
Other invested assets$31,392 $20,424 $10,968 $(7,344)$3,624 
Liabilities:
Derivative liabilities (2)$20,575 $20,424 $151 $— $151 
Secured Lending
408 — 408 — 408 
Other financial liabilities6,442 — 6,442 — 6,442 
Other liabilities$27,425 $20,424 $7,001 $— $7,001 
______________
(1)Excludes Asset Management segment’s derivative assets of consolidated VIEs/VOEs.
(2)Excludes Asset Management segment’s derivative liabilities of consolidated VIEs/VOEs.
(3)Financial instruments sent (held).