Fair Value of Financial Instruments (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Carrying Amount and Estimated Fair Value of Assets and Liabilities on Recurring Basis |
The estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt, which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Level 1 | | Level 2 | | Level 3 | | NAV | | Fair Value | | | | Assets | (In millions) | | | | Cash and cash equivalents | $ | 3,582 | | | $ | — | | | $ | — | | | $ | — | | | $ | 3,582 | | | | | Fixed maturity securities, available-for-sale: | | | | | | | | | | | | | Asset-backed securities ("ABS") | — | | | 7,381 | | | 10,495 | | | — | | | 17,876 | | | | | Commercial mortgage-backed securities | — | | | 4,665 | | | — | | | — | | | 4,665 | | | | | Corporates | 39 | | | 21,064 | | | 3,747 | | | — | | | 24,850 | | | | | Hybrids | 34 | | | 549 | | | 14 | | | — | | | 597 | | | | | Municipals | — | | | 1,360 | | | 3 | | | — | | | 1,363 | | | | | Residential mortgage-backed securities | — | | | 3,748 | | | — | | | — | | | 3,748 | | | | | U.S. Government | 751 | | | 15 | | | — | | | — | | | 766 | | | | | Foreign Governments | 105 | | | 280 | | | 23 | | | — | | | 408 | | | | | Fixed maturity securities, at fair value under fair value option (a) | — | | | 94 | | | — | | | — | | | 94 | | | | | Equity securities: | | | | | | | | | | | | | Preferred equity securities | 169 | | | 221 | | | 1 | | | — | | | 391 | | | | | Common equity securities | 684 | | | — | | | 13 | | | 48 | | | 745 | | | | | Derivative investments | — | | | 1,307 | | | 8 | | | — | | | 1,315 | | | | | Investments in unconsolidated affiliates | — | | | — | | | 267 | | | — | | | 267 | | | | | Other long-term investments (a) | — | | | 264 | | | — | | | — | | | 264 | | | | | Short term investments | 873 | | | 32 | | | 76 | | | — | | | 981 | | | | | Indexed annuities/indexed universal life insurance ("IUL") ceded embedded derivatives, included in Reinsurance recoverable | — | | | — | | | 831 | | | — | | | 831 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Market risk benefits asset | — | | | — | | | 364 | | | — | | | 364 | | | | | Mortgage servicing rights ("MSRs") | — | | | — | | | 176 | | | — | | | 176 | | | | | | | | | | | | | | | | | Total financial assets at fair value | $ | 6,237 | | | $ | 40,980 | | | $ | 16,018 | | | $ | 48 | | | $ | 63,283 | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives: | | | | | | | | | | | | | Indexed annuities/IUL embedded derivatives, included in Contractholder funds | $ | — | | | $ | — | | | $ | 7,080 | | | $ | — | | | $ | 7,080 | | | | | | | | | | | | | | | | | Interest rate and foreign currency swaps, included in Accounts payable and accrued liabilities | — | | | 37 | | | 4 | | | — | | | 41 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Reinsurance related embedded derivatives, included in Funds withheld for reinsurance liabilities | — | | | (26) | | | — | | | — | | | (26) | | | | | | | | | | | | | | | | | Contingent consideration, included in Accounts payable and accrued liabilities | — | | | — | | | 62 | | | — | | | 62 | | | | | Market risk benefits liability | — | | | — | | | 1,102 | | | — | | | 1,102 | | | | | Total financial liabilities at fair value | $ | — | | | $ | 11 | | | $ | 8,248 | | | $ | — | | | $ | 8,259 | | | |
(a) Includes certain interests in VIEs for which the fair value option has been elected. Refer to Note D Investments for further details. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Level 1 | | Level 2 | | Level 3 | | NAV | | Fair Value | | | | Assets | (In millions) | | | | Cash and cash equivalents | $ | 2,636 | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,636 | | | | | Fixed maturity securities, available-for-sale: | | | | | | | | | | | | | Asset-backed securities | — | | | 8,644 | | | 10,094 | | | — | | | 18,738 | | | | | Commercial mortgage-backed securities | — | | | 5,200 | | | — | | | — | | | 5,200 | | | | | Corporates | 40 | | | 21,263 | | | 3,145 | | | — | | | 24,448 | | | | | Hybrids | 36 | | | 558 | | | 15 | | | — | | | 609 | | | | | Municipals | — | | | 1,390 | | | 3 | | | — | | | 1,393 | | | | | Residential mortgage-backed securities | — | | | 2,848 | | | 3 | | | — | | | 2,851 | | | | | U.S. Government | 938 | | | 15 | | | — | | | — | | | 953 | | | | | Foreign Governments | 107 | | | 238 | | | 23 | | | — | | | 368 | | | | | Equity securities: | | | | | | | | | | | | | Preferred equity securities | 174 | | | 254 | | | 8 | | | — | | | 436 | | | | | Common equity securities | 441 | | | — | | | 17 | | | 35 | | | 493 | | | | | | | | | | | | | | | | | Derivative investments | — | | | 1,156 | | | — | | | — | | | 1,156 | | | | | Investments in unconsolidated affiliates | — | | | — | | | 270 | | | — | | | 270 | | | | | Other long-term investments (a) | — | | | 248 | | | 41 | | | — | | | 289 | | | | | Short term investments | 1,764 | | | 82 | | | 74 | | | — | | | 1,920 | | | | | Indexed annuities/IUL ceded embedded derivatives, included in Reinsurance recoverable | — | | | — | | | 399 | | | — | | | 399 | | | | | Loan receivable, included in Prepaid expenses and other assets | — | | | — | | | 24 | | | — | | | 24 | | | | | Market risk benefits asset | — | | | — | | | 285 | | | — | | | 285 | | | | | MSRs | — | | | — | | | 129 | | | — | | | 129 | | | | | | | | | | | | | | | | | Total financial assets at fair value | $ | 6,136 | | | $ | 41,896 | | | $ | 14,530 | | | $ | 35 | | | $ | 62,597 | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives: | | | | | | | | | | | | | Indexed annuities/IUL embedded derivatives, included in Contractholder funds | $ | — | | | $ | — | | | $ | 6,542 | | | $ | — | | | $ | 6,542 | | | | | Interest rate and foreign currency swaps, included in Accounts payable and accrued liabilities | — | | | 3 | | | 9 | | | — | | | 12 | | | | | | | | | | | | | | | | | Equity options | 1 | | | — | | | — | | | — | | | 1 | | | | | Reinsurance related embedded derivatives, included in Funds withheld for reinsurance liabilities | — | | | 75 | | | — | | | — | | | 75 | | | | | Contingent consideration, included in Accounts payable and accrued liabilities | — | | | — | | | 72 | | | — | | | 72 | | | | | Market risk benefits liability | — | | | — | | | 903 | | | — | | | 903 | | | | | Total financial liabilities at fair value | $ | 1 | | | $ | 78 | | | $ | 7,526 | | | $ | — | | | $ | 7,605 | | | |
(a) Includes certain interests in VIEs for which the fair value option has been elected. Refer to Note D Investments for further details. The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Level 1 | | Level 2 | | Level 3 | | NAV | | Total Estimated Fair Value | | Carrying Amount | | Assets | (In millions) | | FHLB common stock | $ | — | | | $ | 175 | | | $ | — | | | $ | — | | | $ | 175 | | | $ | 175 | | | Commercial mortgage loans | — | | | — | | | 3,440 | | | — | | | 3,440 | | | 3,683 | | | Residential mortgage loans | — | | | — | | | 5,276 | | | — | | | 5,276 | | | 5,582 | | | Investments in unconsolidated affiliates | — | | | — | | | — | | | 4,798 | | | 4,798 | | | 4,798 | | | Policy loans | — | | | — | | | 171 | | | — | | | 171 | | | 171 | | | Other invested assets | 29 | | | — | | | — | | | 79 | | | 108 | | | 108 | | | Company-owned life insurance | — | | | — | | | 915 | | | — | | | 915 | | | 915 | | | | | | | | | | | | | | | Trade and notes receivables, net of allowance | — | | | — | | | 526 | | | — | | | 526 | | | 526 | | | Total | $ | 29 | | | $ | 175 | | | $ | 10,328 | | | $ | 4,877 | | | $ | 15,409 | | | $ | 15,958 | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | Investment contracts, included in Contractholder funds | $ | — | | | $ | — | | | $ | 51,704 | | | $ | — | | | $ | 51,704 | | | $ | 57,318 | | | Debt | — | | | 4,080 | | | — | | | — | | | 4,080 | | | 4,378 | | | | | | | | | | | | | | | Total | $ | — | | | $ | 4,080 | | | $ | 51,704 | | | $ | — | | | $ | 55,784 | | | $ | 61,696 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Level 1 | | Level 2 | | Level 3 | | NAV | | Total Estimated Fair Value | | Carrying Amount | | Assets | (In millions) | | FHLB common stock | $ | — | | | $ | 155 | | | $ | — | | | $ | — | | | $ | 155 | | | $ | 155 | | | Commercial mortgage loans | — | | | — | | | 3,025 | | | — | | | 3,025 | | | 3,242 | | | Residential mortgage loans | — | | | — | | | 4,424 | | | — | | | 4,424 | | | 4,649 | | | Investments in unconsolidated affiliates | — | | | — | | | — | | | 4,608 | | | 4,608 | | | 4,608 | | | Policy loans | — | | | — | | | 147 | | | — | | | 147 | | | 147 | | | Other invested assets | 18 | | | — | | | — | | | 75 | | | 93 | | | 93 | | | Company-owned life insurance | — | | | — | | | 887 | | | — | | | 887 | | | 887 | | | Trade and notes receivables, net of allowance | — | | | — | | | 473 | | | — | | | 473 | | | 473 | | | Total | $ | 18 | | | $ | 155 | | | $ | 8,956 | | | $ | 4,683 | | | $ | 13,812 | | | $ | 14,254 | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | Investment contracts, included in Contractholder funds | $ | — | | | $ | — | | | $ | 51,027 | | | $ | — | | | $ | 51,027 | | | $ | 56,184 | | | Debt | — | | | 4,204 | | | — | | | — | | | 4,204 | | | 4,400 | | | Total | $ | — | | | $ | 4,204 | | | $ | 51,027 | | | $ | — | | | $ | 55,231 | | | $ | 60,584 | |
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| Schedule of Quantitative Information Regarding Significant Unobservable Inputs Used for Recurring Level Three Fair Value Measurements of Financial Instruments |
Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of June 30, 2026 and December 31, 2025, excluding assets and liabilities for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services), are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value as of | | Valuation Technique | | Unobservable Input(s) | | Range (Weighted average) | | June 30, 2026 | | | | | (In millions) | | | | June 30, 2026 | | Assets | | | | | | | | | | | | | | | | | | | | | | | | | Asset-backed securities | $ | 173 | | | Third-Party Valuation | | Discount Rate | | 5.25% - 12.52% (7.10%) | | | | | | | | | | | | | | | | | | | | | | | | | | Corporates | 9 | | | Discounted Cash Flow | | Discount Rate | | 75.00% - 100.00% (98.68%) | | Corporates | 678 | | | Third-Party Valuation | | Discount Rate | | 3.71% - 8.99% (6.14%) | | | | | | | | | | Municipals | 3 | | | Third-Party Valuation | | Discount Rate | | 5.52% - 5.52% (5.52%) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign Governments | 5 | | | Third-Party Valuation | | Discount Rate | | 5.76% - 5.76% (5.76%) | | | | | | | | | | Preferred equity securities | 1 | | | Discounted Cash Flow | | Discount rate | | 100.00% - 100.00% (100.00%) | | Common equity securities | 5 | | | Discounted Cash Flow | | Discount rate | | 8.20% - 8.20% (8.20%) | | | | | | | | | | Investments in unconsolidated affiliates | 267 | | | Market Comparable Company Analysis | | EBITDA Multiple | | 7.0x - 15.25x (11.06x) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Reinsurance recoverable: | | | | | | | | | Indexed annuities/IUL ceded embedded derivatives | 831 | | | Discounted Cash Flow | | Market Value of Option | | 0.00% - 21.36% (2.64%) | | | | | | Mortality Multiplier | | 80.00% - 115.00% (100.00%) | | | | | | Surrender Rates | | 0.25% - 50.00% (3.37%) | | | | | | Partial Withdrawal Rate | | 2.00% - 25.64% (2.52%) | | | | | | Non-Performance Spread | | 0.63% - 2.26% (1.30%) | | | | | | Option Cost | | 0.56% - 5.30% (2.12%) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Market risk benefits asset | 364 | | | Discounted Cash Flow | | Mortality Multiplier | | 80.00% - 115.00% (100.00%) | | | | | | | | | | | | | | Surrender Rates | | 0.25% - 30.00% (5.18%) | | | | | | Partial Withdrawal Rate | | 2.00% - 25.64% (2.47%) | | | | | | Non-Performance Spread | | 0.40% - 0.94% (0.71%) | | | | | | GMWB Utilization | | 50.00% - 75.00% (63.63%) | | MSRs | 176 | | | Discounted Cash Flow | | Discount Rate | | 8.15% - 10.64% (9.18%) | | | | | | Conditional Prepayment Rate | | 5.69% -13.32% (7.78%) | | Total financial assets at fair value (a) | $ | 2,512 | | | | | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives: | | | | | | | | | Indexed annuities/ IUL embedded derivatives, included in Contractholder funds | $ | 7,080 | | | Discounted Cash Flow | | Market Value of Option | | 0.00% - 40.04% (3.62%) | | | | | | | | | | | | | | Mortality Multiplier | | 80.00% - 115.00% (100.00%) | | | | | | Surrender Rates | | 0.25% - 50.00% (6.36%) | | | | | | Partial Withdrawal Rate | | 2.00% - 35.71% (2.68%) | | | | | | Non-Performance Spread | | 0.40% - 0.94% (0.71%) | | | | | | Option Cost | | 0.50% - 6.09% (2.84%) | | Contingent consideration, included in Accounts payable and accrued liabilities | 62 | | | Discounted Cash Flow | | Risk-Adjusted Discount Rate | | 11.50% - 11.50% (11.50%) | | | | | | EBITDA Volatility | | 35.00% - 35.00% (35.00%) | | | | | | | | | | | | | | Counterparty Discount Rate | | 6.50% - 6.50% (6.50%) | | | | | | | | | | | | | | | | | | | | | | | | | | Market risk benefits liability | 1,102 | | | Discounted Cash Flow | | Mortality Multiplier | | 80.00% - 115.00% (100.00%) | | | | | | Surrender Rates | | 0.25% - 30.00% (5.18%) | | | | | | Partial Withdrawal Rate | | 2.00% - 25.64% (2.47%) | | | | | | Non-Performance Spread | | 0.40% - 0.94% (0.71%) | | | | | | GMWB Utilization | | 50.00% - 75.00% (63.63%) | | Total financial liabilities at fair value | $ | 8,244 | | | | | | | |
(a) Assets of $13,506 million and liabilities of $4 million for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are excluded from the respective totals in the table above. | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value as of | | Valuation Technique | | Unobservable Input(s) | | Range (Weighted average) | | December 31, 2025 | | | | | (In millions) | | | | December 31, 2025 | | Assets | | | | | | | | | | | | | | | | | | | | | | | | | Asset-backed securities | $ | 92 | | | Third-Party Valuation | | Discount Rate | | 4.36% - 7.15% (5.80%) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporates | 8 | | Discounted Cash Flow | | Discount Rate | | 5.50% - 100.00% (98.73%) | | | | | | | | | | | | | | | | | | | | | | | | | | Corporates | 661 | | | Third-Party Valuation | | Discount Rate | | 3.45% - 8.68% (5.84%) | | | | | | | | | | Residential mortgage-backed securities | 3 | | | Third-Party Valuation | | Discount Rate | | 5.41% - 5.41% (5.41%) | | Foreign Governments | 5 | | | Third-Party Valuation | | Discount Rate | | 5.73% - 5.73% (5.73%) | | Municipals | 3 | | Third-Party Valuation | | Discount Rate | | 4.94% - 4.94% (4.94%) | | Investments in unconsolidated affiliates | 270 | | | Market Comparable Company Analysis | | EBITDA Multiple | | 7.4x - 15.5x (12.10x) | | | | | | | | | | Preferred equity securities | 1 | | | Discounted Cash Flow | | Discount rate | | 100.00% - 100.00% (100.00%) | | Common equity securities | 12 | | | Discounted Cash Flow | | Discount rate | | 8.10% - 14.00% (14.29%) | | | | | | | | | | MSRs | 129 | | | Discounted Cash Flow | | Discount Rate | | 6.38% - 10.69% (8.00%) | | | | | | Conditional Prepayment Rate | | 5.85% - 13.65% (7.77%) | | Other long-term investments: | | | | | | | | | Available-for-sale embedded derivative | 41 | | | Black Scholes Model | | Market Value of AnchorPath Fund | | 100.00% | | | | | | | | | | | | | | | | | | Reinsurance recoverable: | | | | | | | | | Indexed annuities/IUL ceded embedded derivatives | 399 | | | Discounted Cash Flow | | Market Value of Option | | 0.00% - 31.77% (2.74%) | | | | | | Mortality Multiplier | | 80.00% - 115.00% (100.00%) | | | | | | Surrender Rates | | 0.25% - 50.00% (3.33%) | | | | | | Partial Withdrawal Rate | | 2.00% - 6.50% (2.22%) | | | | | | Non-Performance Spread | | 0.53% - 1.15% (0.90%) | | | | | | Option Cost | | 1.39% - 5.30% (1.98%) | | Prepaid expenses and other assets: | | | | | | | | | Loan receivable | 24 | | | Discounted Cash Flow | | Risk-Adjusted Discount Rate | | 6.35% - 6.35% (6.35%) | | | | | | Collateral Volatility | | 35.00% - 35.00% (35.00%) | | | | | | | | | | | | | | | | | | | | | | | | | | Market risk benefits asset | 285 | | | Discounted Cash Flow | | Mortality | | 80.00% - 115.00% (100.00%) | | | | | | Surrender Rates | | 0.25% - 30.00% (5.33%) | | | | | | Partial Withdrawal Rates | | 0.00% -25.64% (2.47%) | | | | | | Non-Performance Spread | | 0.43% - 0.85% (0.64%) | | | | | | GMWB Utilization | | 50.00% -75.00% (63.03%) | | Total financial assets at fair value (a) | $ | 1,933 | | | | | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives: | | | | | | | | | Indexed annuities/ IUL embedded derivatives, included in Contractholder funds | $ | 6,542 | | | Discounted Cash Flow | | Market Value of Option | | 0.00% - 40.13% (3.84%) | | | | | | | | | | | | | | Mortality Multiplier | | 80.00% - 115.00% (100.00%) | | | | | | Surrender Rates | | 0.25% - 50.00% (6.68%) | | | | | | Partial Withdrawal Rate | | 2.00% - 35.71% (2.69%) | | | | | | Non-Performance Spread | | 0.43% - 0.85% (0.64%) | | | | | | Option Cost | | 0.50% - 6.09% (2.78%) | | Contingent consideration, included in Accounts payable and accrued liabilities | 72 | | Discounted Cash Flow | | Risk-Adjusted Discount Rate | | 11.50% - 11.50% (11.50%) | | | | | | EBITDA Volatility | | 35.00% - 35.00% (35.00%) | | | | | | Counterparty Discount Rate | | 6.30% - 6.30% (6.30%) | | | | | | | | | | | | | | | | | | Market risk benefits liability | 903 | | Discounted Cash Flow | | Mortality Multiplier | | 80.00% - 115.00% (100.00%) | | | | | | Surrender Rates | | 0.25% - 30.00% (5.33%) | | | | | | Partial Withdrawal Rate | | 0.00% - 25.64% (2.47%) | | | | | | Non-Performance Spread | | 0.43% - 0.85% (0.64%) | | | | | | GMWB Utilization | | 50.00% - 75.00% (63.03%) | | Total financial liabilities at fair value | $ | 7,517 | | | | | | | |
(a) Assets of $12,597 million and liabilities of $9 million for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are excluded from the respective totals in the table above. |
| Schedule of Changes in Fair Value of Financial Instruments - Assets |
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and six months ended June 30, 2026 and 2025. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2026 | | | | Balance at Beginning
of Period | | | | Total Gains (Losses) | | Purchases | | Sales | | Settlements | | Net transfer In (Out) of
Level 3 (a) | | Balance at End of
Period | | Change in Unrealized Included in OCI | | | | | | Included in
Earnings | | Included in
AOCL | | | | | | | | | | Assets | (In millions) | | | | Fixed maturity securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | Asset-backed securities | $ | 10,281 | | | | | $ | 3 | | | $ | (36) | | | $ | 549 | | | $ | (37) | | | $ | (317) | | | $ | 52 | | | $ | 10,495 | | | $ | (36) | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporates | 3,382 | | | | | 10 | | | 4 | | | 725 | | | (209) | | | (165) | | | — | | | 3,747 | | | 5 | | | | | Hybrids | 14 | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 14 | | | — | | | | | Municipals | 3 | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 3 | | | — | | | | | Residential mortgage-backed securities | 3 | | | | | — | | | — | | | — | | | — | | | (3) | | | — | | | — | | | — | | | | | Foreign Governments | 23 | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 23 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Preferred equity securities | 8 | | | | | — | | | — | | | — | | | — | | | (7) | | | — | | | 1 | | | — | | | | | Common equity securities | 22 | | | | | — | | | — | | | — | | | — | | | — | | | (9) | | | 13 | | | — | | | | | Derivative investments | 7 | | | | | 1 | | | — | | | — | | | — | | | — | | | — | | | 8 | | | — | | | | | Investments in unconsolidated affiliates | 260 | | | | | 7 | | | — | | | — | | | — | | | — | | | — | | | 267 | | | — | | | | | Short term investments | 74 | | | | | — | | | — | | | 7 | | | — | | | (5) | | | — | | | 76 | | | — | | | | | Other long-term investments: | | | | | | | | | | | | | | | | | | | | | | | Available-for-sale embedded derivative | 39 | | | | | 24 | | | (19) | | | — | | | — | | | (44) | | | — | | | — | | | — | | | | | Reinsurance recoverable: | | | | | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL ceded embedded derivatives | 630 | | | | | 45 | | | — | | | 163 | | | — | | | (7) | | | — | | | 831 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | Prepaid expenses and other assets: | | | | | | | | | | | | | | | | | | | | | | | Loan receivable | 24 | | | | | — | | | — | | | 12 | | | — | | | (36) | | | — | | | — | | | — | | | | | MSRs | 140 | | | | | (2) | | | — | | | 38 | | | — | | | — | | | — | | | 176 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Subtotal Level 3 assets at fair value | $ | 14,910 | | | | | $ | 88 | | | $ | (51) | | | $ | 1,494 | | | $ | (246) | | | $ | (584) | | | $ | 43 | | | $ | 15,654 | | | $ | (31) | | | | | Market risk benefits asset (b) | 308 | | | | | | | | | | | | | | | | | 364 | | | | | | | Total Level 3 assets at fair value | $ | 15,218 | | | | | | | | | | | | | | | | | $ | 16,018 | | | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives: | | | | | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL embedded derivatives, included in Contractholder funds | $ | 6,380 | | | | | $ | 537 | | | $ | — | | | $ | 302 | | | $ | — | | | $ | (139) | | | $ | — | | | $ | 7,080 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign currency swaps, included in Accounts payable and accrued liabilities | 2 | | | | | 2 | | | — | | | — | | | — | | | — | | | — | | | 4 | | | — | | | | | Contingent consideration, included in Accounts payable and accrued liabilities | 61 | | | | | 13 | | | — | | | — | | | — | | | (12) | | | — | | | 62 | | | — | | | | | Subtotal Level 3 liabilities at fair value | $ | 6,443 | | | | | $ | 552 | | | $ | — | | | $ | 302 | | | $ | — | | | $ | (151) | | | $ | — | | | $ | 7,146 | | | $ | — | | | | | Market risk benefits liability (b) | 968 | | | | | | | | | | | | | | | | | 1,102 | | | | | | | Total Level 3 liabilities at fair value | $ | 7,411 | | | | | | | | | | | | | | | | | $ | 8,248 | | | | | |
(a) The net transfers into Level 3 during the three months ended June 30, 2026 were exclusively from Level 2. (b) Refer to Note N Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2025 | | | | Balance at Beginning
of Period | | Total Gains (Losses) | | Purchases | | Sales | | Settlements | | Net transfer In (Out) of
Level 3 (a) | | Balance at End of
Period | | Change in Unrealized Included in OCI | | | | | Included in
Earnings | | Included in
AOCL | | | | | | | | | | Assets | (In millions) | | | | Fixed maturity securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | Asset-backed securities | $ | 8,848 | | | $ | (4) | | | $ | 27 | | | $ | 694 | | | $ | (55) | | | $ | (214) | | | $ | 65 | | | $ | 9,361 | | | $ | 27 | | | | | Commercial mortgage-backed securities | — | | | — | | | — | | | 3 | | | — | | | — | | | — | | | 3 | | | — | | | | | Corporates | 3,006 | | | (3) | | | 6 | | | 367 | | | (14) | | | (194) | | | (3) | | | 3,165 | | | 7 | | | | | Hybrids | 6 | | | — | | | (1) | | | — | | | — | | | — | | | — | | | 5 | | | — | | | | | Municipals | 4 | | | — | | | — | | | — | | | — | | | (1) | | | — | | | 3 | | | — | | | | | Residential mortgage-backed securities | 3 | | | — | | | — | | | 2 | | | — | | | — | | | — | | | 5 | | | — | | | | | Foreign Governments | 23 | | | — | | | — | | | — | | | — | | | — | | | — | | | 23 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | Preferred equity securities | 8 | | | — | | | — | | | — | | | — | | | — | | | — | | | 8 | | | — | | | | | Common equity securities | 10 | | | | | — | | | 5 | | | — | | | — | | | — | | | 15 | | | — | | | | | Derivative investments | 1 | | | (2) | | | — | | | 1 | | | — | | | — | | | — | | | — | | | — | | | | | Investments in unconsolidated affiliates | 272 | | | — | | | — | | | — | | | — | | | — | | | — | | | 272 | | | — | | | | | Short term investments | 40 | | | — | | | — | | | 3 | | | — | | | (38) | | | — | | | 5 | | | — | | | | | Other long-term investments: | | | | | | | | | | | | | | | | | | | | | Available-for-sale embedded derivative | 32 | | | — | | | 4 | | | — | | | — | | | — | | | — | | | 36 | | | 4 | | | | | Reinsurance recoverable: | | | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL ceded embedded derivatives: | 129 | | | 9 | | | — | | | 42 | | | — | | | (1) | | | — | | | 179 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | Other assets | 67 | | | 2 | | | — | | | 71 | | | — | | | — | | | — | | | 140 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Prepaid expenses and other assets: | | | | | | | | | | | | | | | | | | | | | Loan receivable (b) | 11 | | | — | | | — | | | 7 | | | — | | | — | | | — | | | 18 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | Subtotal Level 3 assets at fair value | $ | 12,460 | | | $ | 2 | | | $ | 36 | | | $ | 1,195 | | | $ | (69) | | | $ | (448) | | | $ | 62 | | | $ | 13,238 | | | $ | 38 | | | | | Market risk benefits asset (c) | 187 | | | | | | | | | | | | | | | 213 | | | | | | | Total Level 3 assets at fair value | $ | 12,647 | | | | | | | | | | | | | | | $ | 13,451 | | | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives: | | | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL embedded derivatives, included in Contractholder funds | $ | 5,316 | | | $ | 202 | | | $ | — | | | $ | 328 | | | $ | — | | | $ | (119) | | | $ | — | | | $ | 5,727 | | | $ | — | | | | | Foreign currency swaps, included in Accounts payable and accrued liabilities | 1 | | | 4 | | | — | | | — | | | — | | | — | | | — | | | 5 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | Contingent consideration, included in Accounts payable and accrued liabilities | 64 | | | 3 | | | — | | | — | | | — | | | — | | | — | | | 67 | | | — | | | | | Subtotal Level 3 liabilities at fair value | $ | 5,381 | | | $ | 209 | | | $ | — | | | $ | 328 | | | $ | — | | | $ | (119) | | | $ | — | | | $ | 5,799 | | | $ | — | | | | | Market risk benefits liability (c) | 635 | | | | | | | | | | | | | | | 711 | | | | | | | Total Level 3 liabilities at fair value | $ | 6,016 | | | | | | | | | | | | | | | $ | 6,510 | | | | | |
(a) The net transfers into Level 3 during the three months ended June 30, 2025 were exclusively from Level 2. (b) Purchases represent advances on the loan commitment to Roar. Refer to Note F Commitments and Contingencies for further details. (c) Refer to Note N Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | Balance at Beginning
of Period | | | | Total Gains (Losses) | | Purchases | | Sales | | Settlements | | Net transfer from
Level 3 (a) | | Balance at End of
Period | | Change in Unrealized Included in OCI | | | | Included in
Earnings | | Included in
AOCL | | | | | | | | Assets | (In millions) | | Fixed maturity securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | Asset-backed securities | $ | 10,094 | | | | | $ | 14 | | | $ | (81) | | | $ | 1,145 | | | $ | (121) | | | $ | (655) | | | $ | 99 | | | $ | 10,495 | | | $ | (78) | | | | | | | | | | | | | | | | | | | | | | | Corporates | 3,145 | | | | | 10 | | | (38) | | | 1,035 | | | (224) | | | (179) | | | (2) | | | 3,747 | | | (36) | | | Hybrids | 15 | | | | | — | | | (1) | | | — | | | — | | | — | | | — | | | 14 | | | — | | | Municipals | 3 | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 3 | | | — | | | Residential mortgage-backed securities | 3 | | | | | — | | | — | | | — | | | — | | | (3) | | | — | | | — | | | — | | | Foreign Governments | 23 | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 23 | | | — | | | Other invested assets | | | | | | | | | | | | | | | | | | | | | Preferred securities | 8 | | | | | — | | | — | | | — | | | — | | | (7) | | | — | | | 1 | | | — | | | Equity securities | 17 | | | | | — | | | — | | | 5 | | | — | | | — | | | (9) | | | 13 | | | — | | | Derivative investments | — | | | | | 11 | | | — | | | — | | | — | | | (3) | | | — | | | 8 | | | — | | | Investment in unconsolidated affiliates | 270 | | | | | (3) | | | — | | | — | | | — | | | — | | | — | | | 267 | | | — | | | Short term investments | 74 | | | | | — | | | — | | | 7 | | | — | | | (5) | | | — | | | 76 | | | — | | | Other long-term investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Available-for-sale embedded derivative | 41 | | | | | 24 | | | (21) | | | — | | | — | | | (44) | | | — | | | — | | | (2) | | | Reinsurance recoverable: | | | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL ceded embedded derivatives | 399 | | | | | 21 | | | — | | | 420 | | | — | | | (9) | | | — | | | 831 | | | — | | | Prepaid expenses and other assets: | | | | | | | | | | | | | | | | | | | | | Loan receivable | 24 | | | | | — | | | — | | | 12 | | | — | | | (36) | | | — | | | — | | | — | | | MSRs | 129 | | | | | (6) | | | — | | | 53 | | | — | | | — | | | — | | | 176 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Subtotal Level 3 assets at fair value | $ | 14,245 | | | | | $ | 71 | | | $ | (141) | | | $ | 2,677 | | | $ | (345) | | | $ | (941) | | | $ | 88 | | | $ | 15,654 | | | $ | (116) | | | Market risk benefits asset (b) | 285 | | | | | | | | | | | | | | | | | 364 | | | | | Total Level 3 assets at fair value | $ | 14,530 | | | | | | | | | | | | | | | | | $ | 16,018 | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | $ | 6,542 | | | | | $ | 253 | | | $ | — | | | $ | 558 | | | $ | — | | | $ | (273) | | | $ | — | | | $ | 7,080 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | Foreign currency swaps, included in Accounts payable and accrued liabilities | 9 | | | | | (5) | | | — | | | — | | | — | | | — | | | — | | | 4 | | | — | | | Contingent consideration, included in Accounts payable and accrued liabilities | 72 | | | | | 2 | | | — | | | — | | | — | | | (12) | | | — | | | 62 | | | — | | | Subtotal Level 3 liabilities at fair value | $ | 6,623 | | | | | $ | 250 | | | $ | — | | | $ | 558 | | | $ | — | | | $ | (285) | | | $ | — | | | $ | 7,146 | | | $ | — | | | Market risk benefits liability (b) | 903 | | | | | | | | | | | | | | | | | 1,102 | | | | | Total Level 3 liabilities at fair value | $ | 7,526 | | | | | | | | | | | | | | | | | $ | 8,248 | | | |
(a) The net transfers into Level 3 during the six months ended June 30, 2026 were exclusively from Level 2. (b) Refer to Note N Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | Balance at Beginning
of Period | | Total Gains (Losses) | | Purchases | | Sales | | Settlements | | Net Transfer from
Level 3 (a) | | Balance at End of
Period | | Change in Unrealized Included in OCI | | | Included in
Earnings | | Included in
AOCL | | | | | | | | Assets | (In millions) | | Fixed maturity securities available-for-sale: | | | | | | | | | | | | | | | | | | | Asset-backed securities | $ | 8,143 | | | $ | (3) | | | $ | 30 | | | $ | 1,723 | | | $ | (198) | | | $ | (399) | | | $ | 65 | | | $ | 9,361 | | | $ | 29 | | | Commercial mortgage-backed securities | — | | | — | | | — | | | 3 | | | — | | | — | | | — | | | 3 | | | — | | | Corporates | 2,957 | | | (16) | | | 41 | | | 719 | | | (328) | | | (205) | | | (3) | | | 3,165 | | | 40 | | | Hybrids | — | | | — | | | (1) | | | 6 | | | — | | | — | | | — | | | 5 | | | — | | | Municipals | — | | | — | | | — | | | 4 | | | — | | | (1) | | | — | | | 3 | | | — | | | Residential mortgage-backed securities | 3 | | | — | | | — | | | 2 | | | — | | | — | | | — | | | 5 | | | — | | | Foreign Governments | 4 | | | — | | | — | | | 19 | | | — | | | — | | | — | | | 23 | | | — | | | Preferred equity securities | 8 | | | (1) | | | 1 | | | — | | | — | | | — | | | — | | | 8 | | | — | | | Common equity securities | 10 | | | — | | | — | | | 5 | | | — | | | — | | | — | | | 15 | | | — | | | Derivative investments | 3 | | | (2) | | | (2) | | | 1 | | | — | | | — | | | — | | | — | | | (2) | | | Investment in unconsolidated affiliates | 272 | | | — | | | — | | | — | | | — | | | — | | | — | | | 272 | | | — | | | Short term investments | 37 | | | — | | | — | | | 6 | | | — | | | (38) | | | — | | | 5 | | | — | | | Other long-term investments: | | | | | | | | | | | | | | | | | | | Available-for-sale embedded derivative | 32 | | | — | | | 4 | | | — | | | — | | | — | | | — | | | 36 | | | 4 | | | Reinsurance recoverable: | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL ceded embedded derivatives | 98 | | | 4 | | | — | | | 78 | | | — | | | (1) | | | — | | | 179 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Prepaid expenses and other assets: | | | | | | | | | | | | | | | | | | | Loan receivable (b) | 11 | | | — | | | — | | | 7 | | | — | | | — | | | — | | | 18 | | | — | | | MSRs | 65 | | | 1 | | | — | | | 74 | | | — | | | — | | | — | | | 140 | | | — | | | | | | | | | | | | | | | | | | | | | Subtotal Level 3 assets at fair value | $ | 11,643 | | | $ | (17) | | | $ | 73 | | | $ | 2,647 | | | $ | (526) | | | $ | (644) | | | $ | 62 | | | $ | 13,238 | | | $ | 71 | | | Market risk benefits asset (c) | 189 | | | | | | | | | | | | | | | 213 | | | | | Total Level 3 assets at fair value | $ | 11,832 | | | | | | | | | | | | | | | $ | 13,451 | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Indexed annuity/IUL embedded derivatives, included in contractholder funds | $ | 5,220 | | | $ | 135 | | | $ | — | | | $ | 584 | | | $ | — | | | $ | (212) | | | $ | — | | | $ | 5,727 | | | $ | — | | | Interest rate swaps, included in Accounts payable and accrued liabilities | — | | | 5 | | | — | | | — | | | — | | | — | | | — | | | 5 | | | — | | | Contingent consideration obligation, included in Accounts payable and accrued liabilities | 74 | | | 5 | | | — | | | — | | | — | | | (12) | | | — | | | 67 | | | — | | | Subtotal Level 3 liabilities at fair value | $ | 5,294 | | | $ | 145 | | | $ | — | | | $ | 584 | | | $ | — | | | $ | (224) | | | $ | — | | | $ | 5,799 | | | $ | — | | | Market risk benefits liability (c) | 549 | | | | | | | | | | | | | | | 711 | | | | | Total Level 3 liabilities at fair value | $ | 5,843 | | | | | | | | | | | | | | | $ | 6,510 | | | | | | | | | | | | | | | | | | | | | |
(a) The net transfers into Level 3 during the six months ended June 30, 2025 were exclusively from Level 2. (b) Purchases represent advances on the loan commitment to Roar. Refer to Note F Commitments and Contingencies for further details. (c) Refer to Note N Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
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| Schedule of Changes in Fair Value of Financial Instruments - Liabilities |
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and six months ended June 30, 2026 and 2025. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2026 | | | | Balance at Beginning
of Period | | | | Total Gains (Losses) | | Purchases | | Sales | | Settlements | | Net transfer In (Out) of
Level 3 (a) | | Balance at End of
Period | | Change in Unrealized Included in OCI | | | | | | Included in
Earnings | | Included in
AOCL | | | | | | | | | | Assets | (In millions) | | | | Fixed maturity securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | Asset-backed securities | $ | 10,281 | | | | | $ | 3 | | | $ | (36) | | | $ | 549 | | | $ | (37) | | | $ | (317) | | | $ | 52 | | | $ | 10,495 | | | $ | (36) | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporates | 3,382 | | | | | 10 | | | 4 | | | 725 | | | (209) | | | (165) | | | — | | | 3,747 | | | 5 | | | | | Hybrids | 14 | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 14 | | | — | | | | | Municipals | 3 | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 3 | | | — | | | | | Residential mortgage-backed securities | 3 | | | | | — | | | — | | | — | | | — | | | (3) | | | — | | | — | | | — | | | | | Foreign Governments | 23 | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 23 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Preferred equity securities | 8 | | | | | — | | | — | | | — | | | — | | | (7) | | | — | | | 1 | | | — | | | | | Common equity securities | 22 | | | | | — | | | — | | | — | | | — | | | — | | | (9) | | | 13 | | | — | | | | | Derivative investments | 7 | | | | | 1 | | | — | | | — | | | — | | | — | | | — | | | 8 | | | — | | | | | Investments in unconsolidated affiliates | 260 | | | | | 7 | | | — | | | — | | | — | | | — | | | — | | | 267 | | | — | | | | | Short term investments | 74 | | | | | — | | | — | | | 7 | | | — | | | (5) | | | — | | | 76 | | | — | | | | | Other long-term investments: | | | | | | | | | | | | | | | | | | | | | | | Available-for-sale embedded derivative | 39 | | | | | 24 | | | (19) | | | — | | | — | | | (44) | | | — | | | — | | | — | | | | | Reinsurance recoverable: | | | | | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL ceded embedded derivatives | 630 | | | | | 45 | | | — | | | 163 | | | — | | | (7) | | | — | | | 831 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | Prepaid expenses and other assets: | | | | | | | | | | | | | | | | | | | | | | | Loan receivable | 24 | | | | | — | | | — | | | 12 | | | — | | | (36) | | | — | | | — | | | — | | | | | MSRs | 140 | | | | | (2) | | | — | | | 38 | | | — | | | — | | | — | | | 176 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Subtotal Level 3 assets at fair value | $ | 14,910 | | | | | $ | 88 | | | $ | (51) | | | $ | 1,494 | | | $ | (246) | | | $ | (584) | | | $ | 43 | | | $ | 15,654 | | | $ | (31) | | | | | Market risk benefits asset (b) | 308 | | | | | | | | | | | | | | | | | 364 | | | | | | | Total Level 3 assets at fair value | $ | 15,218 | | | | | | | | | | | | | | | | | $ | 16,018 | | | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives: | | | | | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL embedded derivatives, included in Contractholder funds | $ | 6,380 | | | | | $ | 537 | | | $ | — | | | $ | 302 | | | $ | — | | | $ | (139) | | | $ | — | | | $ | 7,080 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign currency swaps, included in Accounts payable and accrued liabilities | 2 | | | | | 2 | | | — | | | — | | | — | | | — | | | — | | | 4 | | | — | | | | | Contingent consideration, included in Accounts payable and accrued liabilities | 61 | | | | | 13 | | | — | | | — | | | — | | | (12) | | | — | | | 62 | | | — | | | | | Subtotal Level 3 liabilities at fair value | $ | 6,443 | | | | | $ | 552 | | | $ | — | | | $ | 302 | | | $ | — | | | $ | (151) | | | $ | — | | | $ | 7,146 | | | $ | — | | | | | Market risk benefits liability (b) | 968 | | | | | | | | | | | | | | | | | 1,102 | | | | | | | Total Level 3 liabilities at fair value | $ | 7,411 | | | | | | | | | | | | | | | | | $ | 8,248 | | | | | |
(a) The net transfers into Level 3 during the three months ended June 30, 2026 were exclusively from Level 2. (b) Refer to Note N Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2025 | | | | Balance at Beginning
of Period | | Total Gains (Losses) | | Purchases | | Sales | | Settlements | | Net transfer In (Out) of
Level 3 (a) | | Balance at End of
Period | | Change in Unrealized Included in OCI | | | | | Included in
Earnings | | Included in
AOCL | | | | | | | | | | Assets | (In millions) | | | | Fixed maturity securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | Asset-backed securities | $ | 8,848 | | | $ | (4) | | | $ | 27 | | | $ | 694 | | | $ | (55) | | | $ | (214) | | | $ | 65 | | | $ | 9,361 | | | $ | 27 | | | | | Commercial mortgage-backed securities | — | | | — | | | — | | | 3 | | | — | | | — | | | — | | | 3 | | | — | | | | | Corporates | 3,006 | | | (3) | | | 6 | | | 367 | | | (14) | | | (194) | | | (3) | | | 3,165 | | | 7 | | | | | Hybrids | 6 | | | — | | | (1) | | | — | | | — | | | — | | | — | | | 5 | | | — | | | | | Municipals | 4 | | | — | | | — | | | — | | | — | | | (1) | | | — | | | 3 | | | — | | | | | Residential mortgage-backed securities | 3 | | | — | | | — | | | 2 | | | — | | | — | | | — | | | 5 | | | — | | | | | Foreign Governments | 23 | | | — | | | — | | | — | | | — | | | — | | | — | | | 23 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | Preferred equity securities | 8 | | | — | | | — | | | — | | | — | | | — | | | — | | | 8 | | | — | | | | | Common equity securities | 10 | | | | | — | | | 5 | | | — | | | — | | | — | | | 15 | | | — | | | | | Derivative investments | 1 | | | (2) | | | — | | | 1 | | | — | | | — | | | — | | | — | | | — | | | | | Investments in unconsolidated affiliates | 272 | | | — | | | — | | | — | | | — | | | — | | | — | | | 272 | | | — | | | | | Short term investments | 40 | | | — | | | — | | | 3 | | | — | | | (38) | | | — | | | 5 | | | — | | | | | Other long-term investments: | | | | | | | | | | | | | | | | | | | | | Available-for-sale embedded derivative | 32 | | | — | | | 4 | | | — | | | — | | | — | | | — | | | 36 | | | 4 | | | | | Reinsurance recoverable: | | | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL ceded embedded derivatives: | 129 | | | 9 | | | — | | | 42 | | | — | | | (1) | | | — | | | 179 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | Other assets | 67 | | | 2 | | | — | | | 71 | | | — | | | — | | | — | | | 140 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Prepaid expenses and other assets: | | | | | | | | | | | | | | | | | | | | | Loan receivable (b) | 11 | | | — | | | — | | | 7 | | | — | | | — | | | — | | | 18 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | Subtotal Level 3 assets at fair value | $ | 12,460 | | | $ | 2 | | | $ | 36 | | | $ | 1,195 | | | $ | (69) | | | $ | (448) | | | $ | 62 | | | $ | 13,238 | | | $ | 38 | | | | | Market risk benefits asset (c) | 187 | | | | | | | | | | | | | | | 213 | | | | | | | Total Level 3 assets at fair value | $ | 12,647 | | | | | | | | | | | | | | | $ | 13,451 | | | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives: | | | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL embedded derivatives, included in Contractholder funds | $ | 5,316 | | | $ | 202 | | | $ | — | | | $ | 328 | | | $ | — | | | $ | (119) | | | $ | — | | | $ | 5,727 | | | $ | — | | | | | Foreign currency swaps, included in Accounts payable and accrued liabilities | 1 | | | 4 | | | — | | | — | | | — | | | — | | | — | | | 5 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | Contingent consideration, included in Accounts payable and accrued liabilities | 64 | | | 3 | | | — | | | — | | | — | | | — | | | — | | | 67 | | | — | | | | | Subtotal Level 3 liabilities at fair value | $ | 5,381 | | | $ | 209 | | | $ | — | | | $ | 328 | | | $ | — | | | $ | (119) | | | $ | — | | | $ | 5,799 | | | $ | — | | | | | Market risk benefits liability (c) | 635 | | | | | | | | | | | | | | | 711 | | | | | | | Total Level 3 liabilities at fair value | $ | 6,016 | | | | | | | | | | | | | | | $ | 6,510 | | | | | |
(a) The net transfers into Level 3 during the three months ended June 30, 2025 were exclusively from Level 2. (b) Purchases represent advances on the loan commitment to Roar. Refer to Note F Commitments and Contingencies for further details. (c) Refer to Note N Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | Balance at Beginning
of Period | | | | Total Gains (Losses) | | Purchases | | Sales | | Settlements | | Net transfer from
Level 3 (a) | | Balance at End of
Period | | Change in Unrealized Included in OCI | | | | Included in
Earnings | | Included in
AOCL | | | | | | | | Assets | (In millions) | | Fixed maturity securities available-for-sale: | | | | | | | | | | | | | | | | | | | | | Asset-backed securities | $ | 10,094 | | | | | $ | 14 | | | $ | (81) | | | $ | 1,145 | | | $ | (121) | | | $ | (655) | | | $ | 99 | | | $ | 10,495 | | | $ | (78) | | | | | | | | | | | | | | | | | | | | | | | Corporates | 3,145 | | | | | 10 | | | (38) | | | 1,035 | | | (224) | | | (179) | | | (2) | | | 3,747 | | | (36) | | | Hybrids | 15 | | | | | — | | | (1) | | | — | | | — | | | — | | | — | | | 14 | | | — | | | Municipals | 3 | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 3 | | | — | | | Residential mortgage-backed securities | 3 | | | | | — | | | — | | | — | | | — | | | (3) | | | — | | | — | | | — | | | Foreign Governments | 23 | | | | | — | | | — | | | — | | | — | | | — | | | — | | | 23 | | | — | | | Other invested assets | | | | | | | | | | | | | | | | | | | | | Preferred securities | 8 | | | | | — | | | — | | | — | | | — | | | (7) | | | — | | | 1 | | | — | | | Equity securities | 17 | | | | | — | | | — | | | 5 | | | — | | | — | | | (9) | | | 13 | | | — | | | Derivative investments | — | | | | | 11 | | | — | | | — | | | — | | | (3) | | | — | | | 8 | | | — | | | Investment in unconsolidated affiliates | 270 | | | | | (3) | | | — | | | — | | | — | | | — | | | — | | | 267 | | | — | | | Short term investments | 74 | | | | | — | | | — | | | 7 | | | — | | | (5) | | | — | | | 76 | | | — | | | Other long-term investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Available-for-sale embedded derivative | 41 | | | | | 24 | | | (21) | | | — | | | — | | | (44) | | | — | | | — | | | (2) | | | Reinsurance recoverable: | | | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL ceded embedded derivatives | 399 | | | | | 21 | | | — | | | 420 | | | — | | | (9) | | | — | | | 831 | | | — | | | Prepaid expenses and other assets: | | | | | | | | | | | | | | | | | | | | | Loan receivable | 24 | | | | | — | | | — | | | 12 | | | — | | | (36) | | | — | | | — | | | — | | | MSRs | 129 | | | | | (6) | | | — | | | 53 | | | — | | | — | | | — | | | 176 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Subtotal Level 3 assets at fair value | $ | 14,245 | | | | | $ | 71 | | | $ | (141) | | | $ | 2,677 | | | $ | (345) | | | $ | (941) | | | $ | 88 | | | $ | 15,654 | | | $ | (116) | | | Market risk benefits asset (b) | 285 | | | | | | | | | | | | | | | | | 364 | | | | | Total Level 3 assets at fair value | $ | 14,530 | | | | | | | | | | | | | | | | | $ | 16,018 | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | Indexed annuity/ IUL embedded derivatives, included in contractholder funds | $ | 6,542 | | | | | $ | 253 | | | $ | — | | | $ | 558 | | | $ | — | | | $ | (273) | | | $ | — | | | $ | 7,080 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | Foreign currency swaps, included in Accounts payable and accrued liabilities | 9 | | | | | (5) | | | — | | | — | | | — | | | — | | | — | | | 4 | | | — | | | Contingent consideration, included in Accounts payable and accrued liabilities | 72 | | | | | 2 | | | — | | | — | | | — | | | (12) | | | — | | | 62 | | | — | | | Subtotal Level 3 liabilities at fair value | $ | 6,623 | | | | | $ | 250 | | | $ | — | | | $ | 558 | | | $ | — | | | $ | (285) | | | $ | — | | | $ | 7,146 | | | $ | — | | | Market risk benefits liability (b) | 903 | | | | | | | | | | | | | | | | | 1,102 | | | | | Total Level 3 liabilities at fair value | $ | 7,526 | | | | | | | | | | | | | | | | | $ | 8,248 | | | |
(a) The net transfers into Level 3 during the six months ended June 30, 2026 were exclusively from Level 2. (b) Refer to Note N Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | Balance at Beginning
of Period | | Total Gains (Losses) | | Purchases | | Sales | | Settlements | | Net Transfer from
Level 3 (a) | | Balance at End of
Period | | Change in Unrealized Included in OCI | | | Included in
Earnings | | Included in
AOCL | | | | | | | | Assets | (In millions) | | Fixed maturity securities available-for-sale: | | | | | | | | | | | | | | | | | | | Asset-backed securities | $ | 8,143 | | | $ | (3) | | | $ | 30 | | | $ | 1,723 | | | $ | (198) | | | $ | (399) | | | $ | 65 | | | $ | 9,361 | | | $ | 29 | | | Commercial mortgage-backed securities | — | | | — | | | — | | | 3 | | | — | | | — | | | — | | | 3 | | | — | | | Corporates | 2,957 | | | (16) | | | 41 | | | 719 | | | (328) | | | (205) | | | (3) | | | 3,165 | | | 40 | | | Hybrids | — | | | — | | | (1) | | | 6 | | | — | | | — | | | — | | | 5 | | | — | | | Municipals | — | | | — | | | — | | | 4 | | | — | | | (1) | | | — | | | 3 | | | — | | | Residential mortgage-backed securities | 3 | | | — | | | — | | | 2 | | | — | | | — | | | — | | | 5 | | | — | | | Foreign Governments | 4 | | | — | | | — | | | 19 | | | — | | | — | | | — | | | 23 | | | — | | | Preferred equity securities | 8 | | | (1) | | | 1 | | | — | | | — | | | — | | | — | | | 8 | | | — | | | Common equity securities | 10 | | | — | | | — | | | 5 | | | — | | | — | | | — | | | 15 | | | — | | | Derivative investments | 3 | | | (2) | | | (2) | | | 1 | | | — | | | — | | | — | | | — | | | (2) | | | Investment in unconsolidated affiliates | 272 | | | — | | | — | | | — | | | — | | | — | | | — | | | 272 | | | — | | | Short term investments | 37 | | | — | | | — | | | 6 | | | — | | | (38) | | | — | | | 5 | | | — | | | Other long-term investments: | | | | | | | | | | | | | | | | | | | Available-for-sale embedded derivative | 32 | | | — | | | 4 | | | — | | | — | | | — | | | — | | | 36 | | | 4 | | | Reinsurance recoverable: | | | | | | | | | | | | | | | | | | | Indexed annuities/IUL ceded embedded derivatives | 98 | | | 4 | | | — | | | 78 | | | — | | | (1) | | | — | | | 179 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Prepaid expenses and other assets: | | | | | | | | | | | | | | | | | | | Loan receivable (b) | 11 | | | — | | | — | | | 7 | | | — | | | — | | | — | | | 18 | | | — | | | MSRs | 65 | | | 1 | | | — | | | 74 | | | — | | | — | | | — | | | 140 | | | — | | | | | | | | | | | | | | | | | | | | | Subtotal Level 3 assets at fair value | $ | 11,643 | | | $ | (17) | | | $ | 73 | | | $ | 2,647 | | | $ | (526) | | | $ | (644) | | | $ | 62 | | | $ | 13,238 | | | $ | 71 | | | Market risk benefits asset (c) | 189 | | | | | | | | | | | | | | | 213 | | | | | Total Level 3 assets at fair value | $ | 11,832 | | | | | | | | | | | | | | | $ | 13,451 | | | | | Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Indexed annuity/IUL embedded derivatives, included in contractholder funds | $ | 5,220 | | | $ | 135 | | | $ | — | | | $ | 584 | | | $ | — | | | $ | (212) | | | $ | — | | | $ | 5,727 | | | $ | — | | | Interest rate swaps, included in Accounts payable and accrued liabilities | — | | | 5 | | | — | | | — | | | — | | | — | | | — | | | 5 | | | — | | | Contingent consideration obligation, included in Accounts payable and accrued liabilities | 74 | | | 5 | | | — | | | — | | | — | | | (12) | | | — | | | 67 | | | — | | | Subtotal Level 3 liabilities at fair value | $ | 5,294 | | | $ | 145 | | | $ | — | | | $ | 584 | | | $ | — | | | $ | (224) | | | $ | — | | | $ | 5,799 | | | $ | — | | | Market risk benefits liability (c) | 549 | | | | | | | | | | | | | | | 711 | | | | | Total Level 3 liabilities at fair value | $ | 5,843 | | | | | | | | | | | | | | | $ | 6,510 | | | | | | | | | | | | | | | | | | | | | |
(a) The net transfers into Level 3 during the six months ended June 30, 2025 were exclusively from Level 2. (b) Purchases represent advances on the loan commitment to Roar. Refer to Note F Commitments and Contingencies for further details. (c) Refer to Note N Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
|
| Schedule of Fair Value Option |
The following table presents information regarding the assets for which the fair value option was elected. | | | | | | | | | | | | | | | June 30, | | | December 31, | | | 2026 | | 2025 | | Assets | | | | | | | Fixed maturity securities, at fair value under fair value option | $ | 94 | | | | $ | — | | | | Investments in unconsolidated affiliates | $ | 267 | | | | $ | 270 | | | | Other loans, within other long-term investments (a) | | | | | | | Fair value | $ | 264 | | | | $ | 248 | | | | Aggregate unpaid principal | 267 | | | | 250 | | | | Loan receivable, within prepaid expenses and other assets (b) | | | | | | | Fair value | $ | — | | | | $ | 24 | | | | Aggregate unpaid principal | — | | | | 24 | | |
(a) No loans are 90 days or more past due as of June 30, 2026 and December 31, 2025. There were $3 million and $0 of loans in nonaccrual status as of June 30, 2026 and December 31, 2025, respectively. (b) No loans are 90 days or more past due or in nonaccrual status as of June 30, 2026 and December 31, 2025. The following table presents information regarding the impact of changes in fair value of assets for which the fair value option was elected that are reported within Recognized gains and losses, net on the unaudited Condensed Consolidated Statements of Earnings. | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Fixed maturity securities, at fair value under fair value option | $ | 1 | | | $ | — | | | $ | 2 | | | $ | — | | | Investments in unconsolidated affiliates | 7 | | | — | | | (3) | | | — | | | | | | | | | | | Other loans | (1) | | | — | | | (2) | | | — | |
|