The Company reinsures its business through a diversified group of reinsurers. However, the Company remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. Collectability of reinsurance balances are evaluated by monitoring ratings and evaluating the financial strength of its reinsurers. Large reinsurance recoverable balances with offshore or other non-accredited reinsurers are secured through various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit ("LOC").


	Direct		Assumed		Ceded		Total, Net of Reinsurance
June 30, 2026
Assets
Premium receivable	$	185	$	13	$	(230)	$	(32)
Reinsurance recoverable, net of allowance for credit losses	—		—		10,458		10,458
Total	$	185	$	13	$	10,228	$	10,426
Liabilities
Future policy benefits and contract owner account balances	$	44,752	$	3,772	$	—	$	48,524
Total	$	44,752	$	3,772	$	—	$	48,524

December 31, 2025
Assets
Premium receivable	$	189	$	12	$	(241)	$	(40)
Reinsurance recoverable, net of allowance for credit losses	—		—		10,753		10,753
Total	$	189	$	12	$	10,512	$	10,713
Liabilities
Future policy benefits and contract owner account balances	$	45,302	$	4,054	$	—	$	49,356
Total	$	45,302	$	4,054	$	—	$	49,356

Information regarding the effect of reinsurance in the Condensed Consolidated Statements of Operations is as follows for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Premiums:
Direct premiums	$	930	$	956	$	1,887	$	1,914
Reinsurance assumed	7		3		18		11
Reinsurance ceded	(221)		(241)		(445)		(470)
Net premiums	$	716	$	718	$	1,460	$	1,455

Fee income:
Direct fee income	$	695	$	651	$	1,375	$	1,296
Reinsurance assumed	24		24		48		50
Reinsurance ceded	(99)		(98)		(199)		(199)
Net fee income	$	620	$	577	$	1,224	$	1,147

Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders	$	1,105	$	1,098	$	2,309	$	2,252
Reinsurance assumed	31		35		56		60
Reinsurance ceded	(311)		(332)		(721)		(676)
Net interest credited and other benefits to contract owners / policyholders	$	825	$	801	$	1,644	$	1,636

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. As of June 30, 2026 and December 31, 2025, the Company had a deposit asset net of the allowance for credit losses of $0.9 billion which is reported in Other assets on the Condensed Consolidated Balance Sheets.

In addition, the Company had a liability for funds withheld under ceded reinsurance agreements of $101 and $108 as of June 30, 2026 and December 31, 2025, respectively, which was recorded in Other liabilities on the Condensed Consolidated Balance Sheets. The funds withheld asset related to assumed reinsurance was $0.9 billion as of June 30, 2026 and December 31, 2025, which was recorded in Other assets on the Condensed Consolidated Balance Sheets.