| Schedule of Balances and Changes in Contractholder Funds |
The following tables summarize balances of and changes in contractholder funds’ account balances: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Indexed annuities | | Fixed rate annuities | | Universal life | | FABN (a) | | FHLB (a) | | (Dollars in millions) | | Balance, beginning of year | $ | 33,226 | | | $ | 19,265 | | | $ | 3,292 | | | $ | 3,324 | | | $ | 2,898 | | | Issuances | 3,421 | | | 286 | | | 116 | | | 750 | | | 1,805 | | | Premiums received | 16 | | | — | | | 333 | | | — | | | — | | | Policy charges (b) | (121) | | | — | | | (208) | | | — | | | — | | | Surrenders and withdrawals | (1,990) | | | (1,142) | | | (73) | | | — | | | — | | | Benefit payments | (260) | | | (193) | | | (9) | | | (813) | | | (1,450) | | | | | | | | | | | | | Interest credited | 614 | | | 445 | | | 129 | | | 78 | | | 42 | | | Other | (3) | | | — | | | — | | | — | | | 8 | | | Balance, end of period | 34,903 | | | 18,661 | | | 3,580 | | | 3,339 | | | 3,303 | | | Reconciling items (c) | 219 | | | 2 | | | 144 | | | (15) | | | — | | | Gross liability, end of period | 35,122 | | | 18,663 | | | 3,724 | | | 3,324 | | | 3,303 | | | Less: Reinsurance recoverable | 6,681 | | | 12,691 | | | 890 | | | — | | | — | | | Net liability, after reinsurance | $ | 28,441 | | | $ | 5,972 | | | $ | 2,834 | | | $ | 3,324 | | | $ | 3,303 | | | | | | | | | | | | | Weighted-average crediting rate | 3.67 | % | | 4.81 | % | | 7.81 | % | | N/A | | N/A | | Net amount at risk (d) | N/A | | N/A | | $ | 29,759 | | | N/A | | N/A | | Cash surrender value (e) | $ | 32,442 | | | $ | 17,527 | | | $ | 2,762 | | | N/A | | N/A |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Indexed annuities | | Fixed rate annuities | | Universal life | | FABN (a) | | FHLB (a) | | (Dollars in millions) | | Balance, beginning of year | $ | 30,235 | | | $ | 17,442 | | | $ | 2,817 | | | $ | 2,463 | | | $ | 2,852 | | | Issuances | 6,714 | | | 3,801 | | | 229 | | | 1,148 | | | 2,241 | | | Premiums received | 31 | | | — | | | 593 | | | — | | | — | | | Policy charges (b) | (222) | | | — | | | (378) | | | — | | | — | | | Surrenders and withdrawals | (3,831) | | | (2,485) | | | (130) | | | — | | | — | | | Benefit payments | (536) | | | (358) | | | (21) | | | (395) | | | (2,298) | | | | | | | | | | | | | Interest credited | 830 | | | 866 | | | 182 | | | 107 | | | 103 | | | Other | 5 | | | (1) | | | — | | | 1 | | | — | | | Balance, end of period | 33,226 | | | 19,265 | | | 3,292 | | | 3,324 | | | 2,898 | | | Reconciling items (c) | 321 | | | 2 | | | 115 | | | 11 | | | — | | | Gross liability, end of period | 33,547 | | | 19,267 | | | 3,407 | | | 3,335 | | | 2,898 | | | Less: Reinsurance recoverable | 3,198 | | | 12,863 | | | 887 | | | — | | | — | | | Net liability, after reinsurance | $ | 30,349 | | | $ | 6,404 | | | $ | 2,520 | | | $ | 3,335 | | | $ | 2,898 | | | | | | | | | | | | | Weighted-average crediting rate | 2.65 | % | | 4.84 | % | | 6.13 | % | | N/A | | N/A | | Net amount at risk (d) | N/A | | N/A | | $ | 29,581 | | | N/A | | N/A | | Cash surrender value (e) | $ | 30,920 | | | $ | 18,034 | | | $ | 2,533 | | | N/A | | N/A |
(a) FABN and FHLB are considered funding agreements that are investment contracts, which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (b) Contracts included in the Contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (c) The reconciling items reconcile the account balance to the gross GAAP liability. For indexed annuities and universal life, the reconciling items represent embedded derivatives and include the combination of the host contracts and the fair value of the embedded derivatives. For FABN, the reconciling items represent basis adjustments due to the impact of fair value hedge accounting. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance.
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| Schedule of Policyholder Account Balance, Guaranteed Minimum Crediting Rate |
The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Range of guaranteed minimum crediting rate | | At Guaranteed Minimum | | 1 Basis Point-50 Basis Points Above | | 51 Basis Points-150 Basis Points Above | | Greater Than 150 Basis Points Above | | Total | | Indexed annuities | | (In millions) | | Up to 1.50% | | $ | 700 | | | $ | 382 | | | $ | 316 | | | $ | 705 | | | $ | 2,103 | | | 1.51%-2.50% | | 515 | | | 14 | | | 892 | | | 689 | | | 2,110 | | | Greater than 2.50% | | 197 | | | — | | | — | | | 2 | | | 199 | | | Subtotal | | $ | 1,412 | | | $ | 396 | | | $ | 1,208 | | | $ | 1,396 | | | $ | 4,412 | | | No guaranteed minimum crediting rate | | | | | | | | | | 30,491 | | | Total | | | | | | | | | | $ | 34,903 | | | | | | | | | | | | | | Fixed rate annuities | | | | | | | | | | | | Up to 1.50% | | $ | 118 | | | $ | 64 | | | $ | 491 | | | $ | 15,237 | | | $ | 15,910 | | | 1.51%-2.50% | | 3 | | | 5 | | | 18 | | | 430 | | | 456 | | | Greater than 2.50% | | 693 | | | 1 | | | 5 | | | 1,596 | | | 2,295 | | | Total | | $ | 814 | | | $ | 70 | | | $ | 514 | | | $ | 17,263 | | | $ | 18,661 | | | | | | | | | | | | | | Universal life | | | | | | | | | | | | Up to 1.50% | | $ | 3,190 | | | $ | 10 | | | $ | — | | | $ | 30 | | | $ | 3,230 | | | 1.51%-2.50% | | — | | | — | | | — | | | — | | | — | | | Greater than 2.50% | | 349 | | | — | | | 1 | | | — | | | 350 | | | Total | | $ | 3,539 | | | $ | 10 | | | $ | 1 | | | $ | 30 | | | $ | 3,580 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Range of guaranteed minimum crediting rate | | At Guaranteed Minimum | | 1 Basis Point-50 Basis Points Above | | 51 Basis Points-150 Basis Points Above | | Greater Than 150 Basis Points Above | | Total | | Indexed annuities | | (In millions) | | Up to 1.50% | | $ | 659 | | | $ | 464 | | | $ | 298 | | | $ | 812 | | | $ | 2,233 | | | 1.51%-2.50% | | 548 | | | 17 | | | 633 | | | 630 | | | 1,828 | | | Greater than 2.50% | | 212 | | | 1 | | | — | | | 1 | | | 214 | | | Subtotal | | $ | 1,419 | | | $ | 482 | | | $ | 931 | | | $ | 1,443 | | | $ | 4,275 | | | No guaranteed minimum crediting rate | | | | | | | | | | 28,951 | | | Total | | | | | | | | | | $ | 33,226 | | | | | | | | | | | | | | Fixed rate annuities | | | | | | | | | | | | Up to 1.50% | | $ | 94 | | | $ | 75 | | | $ | 792 | | | $ | 15,548 | | | $ | 16,509 | | | 1.51%-2.50% | | 4 | | | 6 | | | 16 | | | 466 | | | 492 | | | Greater than 2.50% | | 727 | | | 2 | | | 5 | | | 1,530 | | | 2,264 | | | Total | | $ | 825 | | | $ | 83 | | | $ | 813 | | | $ | 17,544 | | | $ | 19,265 | | | | | | | | | | | | | | Universal life | | | | | | | | | | | | Up to 1.50% | | $ | 2,898 | | | $ | 9 | | | $ | — | | | $ | 31 | | | $ | 2,938 | | | 1.51%-2.50% | | — | | | — | | | — | | | — | | | — | | | Greater than 2.50% | | 353 | | | — | | | 1 | | | — | | | 354 | | | Total | | $ | 3,251 | | | $ | 9 | | | $ | 1 | | | $ | 31 | | | $ | 3,292 | |
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