v3.26.1
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The notional and carrying amounts of derivative financial instruments, including derivative instruments embedded in indexed annuities and IUL contracts, and reinsurance are as follows:
June 30, 2026December 31, 2025
Gross NotionalAssets LiabilitiesGross NotionalAssetsLiabilities
(In millions)
Derivatives designated as hedging instruments
Interest rate swaps (a)$1,600 $3 $20 $850 $11 $1 
Foreign currency swaps (a)— — — 21 — 3 
Total derivatives designated as hedging instruments1,600 3 20 871 11 4 
Derivatives not designated as hedging instruments
Equity options (a)31,613 1,274 — 29,651 1,062 — 
Interest rate swaps (a)8,152 28 19 6,453 83 3 
Foreign currency swaps (a)765 8 4 503 — 6 
Futures contracts (a)104 — — 68 — 1 
Foreign currency forwards (a)88 — — 93 — — 
Other embedded derivatives (b)— — — — 41 — 
Indexed annuities/IUL embedded derivatives (c)— 831 7,080 — 399 6,542 
Reinsurance related embedded derivatives (d)— — (26)— — 75 
Total derivatives not designated as hedging instruments40,722 2,141 7,077 36,768 1,585 6,627 
Total derivatives $42,322 $2,144 $7,097 $37,639 $1,596 $6,631 
(a)The fair value of derivative assets is reported in Derivative investments, and the fair value of derivative liabilities is reported in Accounts payable and accrued liabilities on the unaudited Condensed Consolidated Balance Sheets.
(b)The fair value is included in Other long term investments on the unaudited Condensed Consolidated Balance Sheets.
(c)The fair value of the liability is included in Contractholder funds and the ceded portion is included in Reinsurance recoverable on the unaudited Condensed Consolidated Balance Sheets.
(d)The fair value of the reinsurance related embedded derivatives is included in Funds withheld for reinsurance liabilities on the unaudited Condensed Consolidated Balance Sheets, irrespective if in a net asset or net liability position..
Schedule of Change in Fair Value of Derivative Instruments
The amounts and locations of gains losses, net recognized for derivatives and gains losses, net recognized for hedged items included in the unaudited Condensed Consolidated Statements of Earnings are as follows:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
Recognized gains (losses), net for derivativesRecognized gains (losses), net for hedged itemBenefits and other changes in policy reserves for derivativesBenefits and other changes in policy reserves for hedged itemRecognized gains (losses), net for derivativesRecognized gains (losses), net for hedged itemBenefits and other changes in policy reserves for derivativesBenefits and other changes in policy reserves for hedged item
(In millions)
Derivatives designated as hedging instruments
Interest rate swaps$— $— $(17)$15 $— $— $3 $(3)
Foreign currency swaps— — — — (2)2 — — 
Total derivatives designated as hedging instruments— — (17)15 (2)2 3 (3)
Derivatives not designated as hedging instruments
Equity options527 — — — 126 — — — 
Interest rate swaps(32)— — — 19 — — — 
Foreign currency swaps1 — — — (4)— — — 
Futures contracts(8)— — — 9 — — — 
Foreign currency forwards1 — — — (8)— — — 
Other embedded derivatives4 — — — 4 — — — 
Indexed annuities/IUL embedded derivatives— — 492 — — — 193 — 
Reinsurance related embedded derivatives(83)— — — (61)— — — 
Total derivatives not designated as hedging instruments410 — 492 — 85 — 193 — 
Total derivatives $410 $— $475 $15 $83 $2 $196 $(3)
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Recognized gains (losses) for derivativesRecognized gains (losses) for hedged itemBenefits and other changes in policy reserves for derivativesBenefits and other changes in policy reserves for hedged itemRecognized gains (losses) for derivativesRecognized gains (losses) for hedged itemBenefits and other changes in policy reserves for derivativesBenefits and other changes in policy reserves for hedged item
(In millions)
Derivatives designated as hedging instruments
Interest rate swaps$— $— $(28)$26 $— $— $12 $(13)
Foreign currency swaps(1)1 — — (3)3 — — 
Total derivatives designated as hedging instruments(1)1 (28)26 (3)3 12 (13)
Derivatives not designated as hedging instruments
Equity options280 — — — (108)— — — 
Interest rate swaps(61)— — — 69 — — — 
Foreign currency swaps13 — — — (4)— — — 
Futures contracts(5)— — — 14 — — — 
Foreign currency forwards3 — — — (11)— — — 
Other embedded derivatives3 — — — 4 — — — 
Indexed annuities/IUL embedded derivatives— — 232 — — — 131 — 
Reinsurance related embedded derivatives178 — — — (102)— — — 
Total derivatives not designated as hedging instruments411 — 232 — (138)— 131 — 
Total derivatives $410 $1 $204 $26 $(141)$3 $143 $(13)
Schedule of Carrying Amount of Derivative Instruments
The following amounts are recorded in the unaudited Condensed Consolidated Balance Sheets related to the carrying amount of hedged assets and (liabilities) and the cumulative basis adjustment included in the carrying amount for fair value hedges:
June 30, 2026December 31, 2025
Line Item in the unaudited Condensed Consolidated Balance Sheets that includes hedged item Carrying Amount of Hedged Assets (Liabilities)Cumulative Amount of Fair Value Hedging Adjustment included in the Carrying Amount of the Hedged Assets (Liabilities)Carrying Amount of Hedged Assets (Liabilities)Cumulative Amount of Fair Value Hedging Adjustment included in the Carrying Amount of the Hedged Assets (Liabilities)
(In millions)
Fixed maturity securities, AFS, at amortized cost$— $— $21 $— 
Contractholder funds (1,593)15 (862)(11)
Schedule of Exposure to Credit Loss on Call Options Held Information regarding our exposure to credit loss on the derivative instruments we hold, excluding futures contracts, is presented below:
Fair ValueCollateral (a)Net Credit Risk (a)
(In millions)
June 30, 2026$1,264 $1,267 $46 
December 31, 20251,137 1,185 34