v3.26.1
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2
The following table presents a summary of the significant inputs used by our pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of June 30, 2026:
(Amounts in millions)Fair valuePrimary methodologiesSignificant inputs
U.S. government, agencies and government-sponsored enterprises$3,624 Price quotes from trading desk, broker feedsBid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread
State and political subdivisions$1,999 Multi-dimensional attribute-based modeling systems, exchanges for the bond or comparable liquid bondsTrade prices, material event notices, Municipal Market Data benchmark yields, broker quotes
Non-U.S. government$1,318 Price quotes from market makers, spread priced to benchmark curves, matrix pricingBenchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources
U.S. corporate$22,620 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, OAS-based modelsBid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports
Non-U.S. corporate$5,508 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makersBenchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources
Residential mortgage-backed$1,062 OAS-based models, single factor binomial models, internally priced, pay-up to the to be announced pricePrepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports
Commercial mortgage-backed$1,341 Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics modelCredit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swap curves, TRACE reports
Other asset-backed$2,048 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makersSpreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports
Schedule of Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis
The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:
June 30, 2026
(Amounts in millions)TotalLevel 1Level 2Level 3
NAV (1)
Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises$3,624 $— $3,624 $— $
State and political subdivisions1,999 — 1,999 — 
Non-U.S. government1,333 — 1,318 15 
U.S. corporate:
Utilities4,551 — 3,503 1,048 
Energy2,421 — 2,357 64 
Finance and insurance6,871 — 6,261 610 
Consumer—non-cyclical4,390 — 4,356 34 
Technology and communications2,480 — 2,461 19 
Industrial867 — 850 17 
Capital goods2,279 — 2,243 36 
Consumer—cyclical1,207 — 1,166 41 
Transportation1,052 — 1,040 12 
Other237 — 123 114 
Total U.S. corporate26,355 — 24,360 1,995 
Non-U.S. corporate:
Utilities585 — 370 215 
Energy918 — 819 99 
Finance and insurance1,689 — 1,667 22 
Consumer—non-cyclical531 — 514 17 
Technology and communications721 — 701 20 
Industrial735 — 621 114 
Capital goods700 — 621 79 
Consumer—cyclical217 — 191 26 
Transportation490 — 402 88 
Other432 — 363 69 
Total non-U.S. corporate7,018 — 6,269 749 
Residential mortgage-backed1,069 — 1,062 7 
Commercial mortgage-backed1,361 — 1,341 20 
Other asset-backed2,505 — 2,048 457 
Total fixed maturity securities45,264 — 42,021 3,243 
Equity securities564 525 29 10 
Limited partnerships2,863 — — 19 2,844 
Other invested assets:
Derivative assets:
Interest rate swaps8 — 8 — 
Foreign currency swaps6 — 6 — 
Equity index options15 — — 15 
Forward bond purchase commitments7 — — 7 
Total derivative assets36 — 14 22 
Short-term investments79 — 56 23 
Total other invested assets115 — 70 45 
Separate account assets4,396 4,396 — — 
Total assets$53,202 $4,921 $42,120 $3,317 $2,844 
________________
(1)Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
December 31, 2025
(Amounts in millions)TotalLevel 1Level 2Level 3
NAV (1)
Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises$3,701 $— $3,701 $— $
State and political subdivisions2,114 — 2,114 — 
Non-U.S. government1,215 — 1,199 16 
U.S. corporate:
Utilities4,515 — 3,511 1,004 
Energy2,452 — 2,431 21 
Finance and insurance7,057 — 6,438 619 
Consumer—non-cyclical4,406 — 4,371 35 
Technology and communications2,749 — 2,731 18 
Industrial954 — 938 16 
Capital goods2,319 — 2,282 37 
Consumer—cyclical1,249 — 1,194 55 
Transportation1,075 — 1,048 27 
Other270 — 145 125 
Total U.S. corporate27,046 — 25,089 1,957 
Non-U.S. corporate:
Utilities637 — 400 237 
Energy944 — 837 107 
Finance and insurance1,719 — 1,697 22 
Consumer—non-cyclical557 — 541 16 
Technology and communications689 — 680 9 
Industrial761 — 645 116 
Capital goods692 — 628 64 
Consumer—cyclical250 — 226 24 
Transportation485 — 406 79 
Other457 — 382 75 
Total non-U.S. corporate7,191 — 6,442 749 
Residential mortgage-backed1,100 — 1,097 3 
Commercial mortgage-backed1,309 — 1,290 19 
Other asset-backed2,086 — 1,759 327 
Total fixed maturity securities45,762 — 42,691 3,071 
Equity securities555 485 29 41 
Limited partnerships2,784 — — 16 2,768 
Other invested assets:
Derivative assets:
Interest rate swaps11 — 11 — 
Foreign currency swaps4 — 4 — 
Equity index options18 — — 18 
Forward bond purchase commitments6 — — 6 
Total derivative assets39 — 15 24 
Short-term investments37 — 14 23 
Total other invested assets76 — 29 47 
Separate account assets4,369 4,369 — — 
Total assets$53,546 $4,854 $42,749 $3,175 $2,768 
_________________
(1)Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
Schedule of Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value
The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of and for the periods indicated:
Beginning
balance
as of
April 1,
2026		Total realized and
unrealized gains
(losses)		Ending
balance
as of
June 30,
2026		Total gains (losses)
attributable to
assets still held
(Amounts in millions)Included
in net
income
(loss)		Included
in OCI		PurchasesSalesIssuancesSettlements
Transfer
into
Level 3 (1)
Transfer
out of
Level 3 (1)
Included
in net
income
(loss)		Included
in OCI
Fixed maturity securities:
Non-U.S. government$15 $— $— $— $— $— $— $— $— $15 $— $— 
U.S. corporate:
Utilities993 1 7 64 — — (20)3 — 1,048 1 7 
Energy21 — (1)30 — — (1)15 — 64 — (1)
Finance and insurance 604 — 3 19 — — (16)— — 610 — 3 
Consumer—non-cyclical34 — — — — — — — — 34 — — 
Technology and communications10 — 1 8 — — — — — 19 — — 
Industrial17 — — — — — — — — 17 — — 
Capital goods36 — — — — — — — — 36 — — 
Consumer—cyclical42 — — — — — (1)— — 41 — — 
Transportation13 — — — — — (1)— — 12 — — 
Other118 — — — — — (4)— — 114 — — 
Total U.S. corporate1,888 1 10 121 — — (43)18 — 1,995 1 9 
Non-U.S. corporate:
Utilities227 — 1 — — — (13)— — 215 — 1 
Energy108 — 2 2 — — (13)— — 99 — 2 
Finance and insurance22 — — — — — — — — 22 — — 
Consumer—non-cyclical17 — — — — — — — — 17 — — 
Technology and communications9 — — 20 — — (9)— — 20 — — 
Industrial114 — — — — — — — — 114 — — 
Capital goods63 — — 16 — — — — — 79 — — 
Consumer—cyclical25 — — 1 — — — — — 26 — — 
Transportation78 — — 10 — — — — — 88 — — 
Other74 — — — — — (5)— — 69 — — 
Total non-U.S. corporate737 — 3 49 — — (40)— — 749 — 3 
Residential mortgage-backed2 — — 5 — — — — — 7 — — 
Commercial mortgage-backed20 — — — — — — — — 20 — — 
Other asset-backed361 — (2)76 — — (13)40 (5)457 — (2)
Total fixed maturity securities3,023 1 11 251 — — (96)58 (5)3,243 1 10 
Equity securities48 — — 1 — — — — (39)10 — — 
Limited partnerships20 (1)— — — — — — — 19 (1)— 
Other invested assets:
Derivative assets:
Equity index options12 6 — 2 — — (5)— — 15 5 — 
Forward bond purchase commitments4 — 3 — — — — — — 7 — 3 
Total derivative assets16 6 3 2 — — (5)— — 22 5 3 
Short-term investments23 — — — — — — — — 23 — — 
Total other invested assets39 6 3 2 — — (5)— — 45 5 3 
Total Level 3 assets$3,130 $6 $14 $254 $— $— $(101)$58 $(44)$3,317 $5 $13 
_______________
(1)The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. The transfer out of Level 3 for equity securities was related to a change in the current period presentation of certain investments without a readily determinable fair value, which are required to be measured at cost minus impairment.
Beginning
balance
as of
April 1,
2025		Total realized and
unrealized gains
(losses)		Ending
balance
as of
June 30,
2025		Total gains (losses)
attributable to
assets still held
(Amounts in millions)Included
in net
income
(loss)		Included
in OCI		PurchasesSalesIssuancesSettlements
Transfer
into
Level 3 (1)
Transfer
out of
Level 3 (1)
Included
in net
income
(loss)		Included
in OCI
Fixed maturity securities:
Non-U.S. government$15 $— $— $— $— $— $— $— $— $15 $— $— 
U.S. corporate:
Utilities862 — 10 25 — — (2)10 (19)886 — 9 
Energy21 — — — — — — — — 21 — — 
Finance and insurance667 — 11 — — — (7)— (3)668 — 11 
Consumer—non-cyclical49 — — — — — — — — 49 — — 
Technology and communications17 — — — — — — — — 17 — — 
Industrial15 — — — — — — — — 15 — — 
Capital goods44 — 1 — — — — — — 45 — 1 
Consumer—cyclical107 (3)3 — (16)— (1)— — 90 — 1 
Transportation29 — 1 — — — (1)— — 29 — 1 
Other128 — 1 10 — — (4)— — 135 — 1 
Total U.S. corporate1,939 (3)27 35 (16)— (15)10 (22)1,955 — 24 
Non-U.S. corporate:
Utilities285 (4)6 — — — (4)— (21)262 (4)6 
Energy115 — — 3 (4)— (8)— — 106 — — 
Finance and insurance21 — 1 — — — — — — 22 — 1 
Consumer—non-cyclical31 — — — — — — — — 31 — — 
Technology and communications17 — — — — — — — — 17 — — 
Industrial109 — 2 — — — — — — 111 — 2 
Capital goods47 — 1 8 — — — — — 56 — 2 
Transportation35 — 1 — — — — — — 36 — 1 
Other64 — — — — — — — — 64 — — 
Total non-U.S. corporate724 (4)11 11 (4)— (12)— (21)705 (4)12 
Residential mortgage-backed2 — — — — — — — — 2 — — 
Commercial mortgage-backed11 — — — — — — — — 11 — — 
Other asset-backed185 1 — — — — — 20 (5)201 — — 
Total fixed maturity securities2,876 (6)38 46 (20)— (27)30 (48)2,889 (4)36 
Equity securities43 — — — (2)— — — — 41 — — 
Limited partnerships18 (1)— — — — — — — 17 (1)— 
Other invested assets:
Derivative assets:
Equity index options12 5 — 3 — — (3)— — 17 5 — 
Forward bond purchase commitments19 — (13)— — — — — — 6 — (10)
Total derivative assets31 5 (13)3 — — (3)— — 23 5 (10)
Total other invested assets31 5 (13)3 — — (3)— — 23 5 (10)
Total Level 3 assets$2,968 $(2)$25 $49 $(22)$— $(30)$30 $(48)$2,970 $— $26 
___________________
(1)The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
Beginning
balance
as of
January 1,
2026		Total realized and
unrealized gains
(losses)		Ending
balance
as of
June 30,
2026		Total gains (losses)
attributable to
assets still held
(Amounts in millions)Included
in net
income
(loss)		Included
in OCI		PurchasesSalesIssuancesSettlements
Transfer
into
Level 3 (1)
Transfer
out of
Level 3 (1)
Included
in net
income
(loss)		Included
in OCI
Fixed maturity securities:
Non-U.S. government$16 $— $(1)$— $— $— $— $— $— $15 $— $(1)
U.S. corporate:
Utilities1,004 1 (11)93 — — (20)3 (22)1,048 1 (10)
Energy21 — (1)30 — — (1)15 — 64 — (1)
Finance and insurance 619 — (7)22 — — (24)— — 610 — (7)
Consumer—non-cyclical35 — — — — — (1)— — 34 — — 
Technology and communications18 — — 8 — — (7)— — 19 — — 
Industrial16 1 — — — — — — — 17 1 — 
Capital goods37 — (1)— — — — — — 36 — (1)
Consumer—cyclical55 — (1)— — — (3)— (10)41 — (1)
Transportation27 — — — — — (2)— (13)12 — — 
Other125 — (2)— — — (9)— — 114 — (2)
Total U.S. corporate1,957 2 (23)153 — — (67)18 (45)1,995 2 (22)
Non-U.S. corporate:
Utilities237 — 1 — — — (23)— — 215 — (2)
Energy107 — 1 4 — — (13)— — 99 — 1 
Finance and insurance22 — — — — — — — — 22 — — 
Consumer—non-cyclical16 — — 1 — — — — — 17 — — 
Technology and communications9 — — 20 — — (9)— — 20 — — 
Industrial116 — (2)— — — — — — 114 — (2)
Capital goods64 — (1)16 — — — — — 79 — (1)
Consumer—cyclical24 — — 2 — — — — — 26 — — 
Transportation79 — (1)10 — — — — — 88 — (1)
Other75 — (1)— — — (5)— — 69 — (1)
Total non-U.S. corporate749 — (3)53 — — (50)— — 749 — (6)
Residential mortgage-backed3 — — 5 — — — — (1)7 — — 
Commercial mortgage-backed19 — 1 — — — — — — 20 — 1 
Other asset-backed327 — (3)105 — — (17)60 (15)457 — (3)
Total fixed maturity securities3,071 2 (29)316 — — (134)78 (61)3,243 2 (31)
Equity securities41 — — 8 — — — — (39)10 — — 
Limited partnerships16 — — 3 — — — — — 19 1 — 
Other invested assets:
Derivative assets:
Equity index options18 3 — 5 — — (11)— — 15 3 — 
Forward bond purchase commitments6 — 1 — — — — — — 7 — 1 
Total derivative assets24 3 1 5 — — (11)— — 22 3 1 
Short-term investments23 — — — — — — — — 23 — — 
Total other invested assets47 3 1 5 — — (11)— — 45 3 1 
Total Level 3 assets$3,175 $5 $(28)$332 $— $— $(145)$78 $(100)$3,317 $6 $(30)
_______________
(1)The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. The transfer out of Level 3 for equity securities was related to a change in the current period presentation of certain investments without a readily determinable fair value, which are required to be measured at cost minus impairment.
Beginning
balance
as of
January 1,
2025		Total realized and
unrealized gains
(losses)		Ending
balance
as of
June 30,
2025		Total gains (losses)
attributable to
assets still held
(Amounts in millions)Included
in net
income
(loss)		Included
in OCI		PurchasesSalesIssuancesSettlements
Transfer
into
Level 3 (1)
Transfer
out of
Level 3 (1)
Included
in net
income
(loss)		Included
in OCI
Fixed maturity securities:
Non-U.S. government$13 $— $1 $1 $— $— $— $— $— $15 $— $1 
U.S. corporate:
Utilities845 — 14 41 — — (5)10 (19)886 — 13 
Energy21 — — — — — — — — 21 — — 
Finance and insurance688 — 20 25 — — (30)— (35)668 — 19 
Consumer—non-cyclical63 — 1 — — — (15)— — 49 — 1 
Technology and communications12 — — — — — — 5 — 17 — — 
Industrial15 — — — — — — — — 15 — — 
Capital goods43 — 2 — — — — — — 45 — 2 
Consumer—cyclical99 (3)5 8 (16)— (3)— — 90 — 3 
Transportation31 — 1 — — — (3)— — 29 — 1 
Other133 — 1 10 — — (9)— — 135 — 1 
Total U.S. corporate1,950 (3)44 84 (16)— (65)15 (54)1,955 — 40 
Non-U.S. corporate:
Utilities282 (4)9 — — — (4)— (21)262 (4)9 
Energy116 — (1)3 (4)— (8)— — 106 — (1)
Finance and insurance21 — 1 — — — — — — 22 — 1 
Consumer—non-cyclical39 — — — — — (8)— — 31 — — 
Technology and communications17 — — — — — — — — 17 — — 
Industrial67 — 4 — — — — 40 — 111 — 4 
Capital goods47 — 1 8 — — — — — 56 — 2 
Transportation35 — 1 — — — — — — 36 — 1 
Other51 — 1 12 — — — — — 64 — 1 
Total non-U.S. corporate675 (4)16 23 (4)— (20)40 (21)705 (4)17 
Residential mortgage-backed2 — — — — — — — — 2 — — 
Commercial mortgage-backed11 — — — — — — — — 11 — — 
Other asset-backed142 1 — 48 — — (5)20 (5)201 — — 
Total fixed maturity securities2,793 (6)61 156 (20)— (90)75 (80)2,889 (4)58 
Equity securities44 — — — (3)— — — — 41 — — 
Limited partnerships19 (2)— — — — — — — 17 (2)— 
Other invested assets:
Derivative assets:
Equity index options19 1 — 6 — — (9)— — 17 2 — 
Forward bond purchase commitments6 — — — — — — — — 6 — — 
Total derivative assets25 1 — 6 — — (9)— — 23 2 — 
Total other invested assets25 1 — 6 — — (9)— — 23 2 — 
Total Level 3 assets$2,881 $(7)$61 $162 $(23)$— $(99)$75 $(80)$2,970 $(4)$58 
___________________
(1)The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.
Schedule of Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value
The following table presents the gains and losses included in net income (loss) from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related condensed consolidated statements of operations line item in which these gains and losses were presented for the periods indicated:
Three months ended
June 30,		Six months ended
June 30,
(Amounts in millions)2026202520262025
Total realized and unrealized gains (losses) included in net income (loss):
Net investment income$1 $— $2 $— 
Net investment gains (losses)5 (2)3 (7)
Total$6 $(2)$5 $(7)
Total gains (losses) included in net income (loss) attributable to assets still held:
Net investment income$1 $— $2 $— 
Net investment gains (losses)4 — 4 (4)
Total$5 $— $6 $(4)
Schedule of Significant Unobservable Inputs Used for Fair Value Measurements Classified as Level 3
The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of June 30, 2026:
(Amounts in millions)Fair valueUnobservable inputRange
Weighted-average (1)
Fixed maturity securities:
U.S. corporate:
Utilities$1,002 Credit spreads
53bps - 202bps
118bps
Energy50 Credit spreads
117bps - 209bps
179bps
Finance and insurance589 Credit spreads
14bps - 195bps
126bps
Consumer—non-cyclical34 Credit spreads
64bps - 209bps
110bps
Technology and communications19 Credit spreads
71bps - 174bps
118bps
Industrial17 Credit spreads
71bps - 153bps
98bps
Capital goods36 Credit spreads
117bps - 134bps
123bps
Consumer—cyclical39 Credit spreads
98bps - 130bps
122bps
Transportation12 Credit spreads
47bps - 141bps
116bps
Other67 Credit spreads
76bps - 156bps
98bps
Total U.S. corporate$1,865 Credit spreads
14bps - 209bps
121bps
Non-U.S. corporate:
Utilities$214 Credit spreads
74bps - 186bps
103bps
Energy86 Credit spreads
81bps - 147bps
101bps
Finance and insurance22 Credit spreads
98bps - 124bps
108bps
Consumer—non-cyclical14 Credit spreads
81bps - 133bps
94bps
Technology and communications20 Credit spreads
88bps
Not applicable
Industrial114 Credit spreads
81bps - 169bps
112bps
Capital goods72 Credit spreads
110bps - 169bps
131bps
Consumer—cyclical22 Credit spreads
110bps
Not applicable
Transportation87 Credit spreads
81bps - 153bps
112bps
Other56 Credit spreads
53bps - 117bps
99bps
Total non-U.S. corporate$707 Credit spreads
53bps - 186bps
107bps
Derivative assets:
Equity index options$15 Equity index volatility
13% - 29%
19%
Forward bond purchase commitments$7 Counterparty financing spreads
17bps - 43bps
24bps
Other assets (2)
$89 Lapse rate
2% - 9%
5%
Non-performance risk
(counterparty credit risk)
42bps - 83bps
69bps
Equity index volatility
17% - 27%
23%
______________
(1)Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities, notional for derivative assets and the policyholder account balances associated with the instrument for the net reinsured portion of our variable annuity MRBs.
(2)Represents the net reinsured portion of our variable annuity MRBs.
Schedule of Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis
The following tables set forth our liabilities by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:
June 30, 2026
(Amounts in millions)TotalLevel 1Level 2Level 3
Liabilities
Policyholder account balances:
Fixed indexed annuity embedded derivatives$132 $— $— $132 
Indexed universal life embedded derivatives14 — — 14 
Total policyholder account balances146 — — 146 
Derivative liabilities:
Interest rate swaps779 — 779 — 
Foreign currency swaps3 — 3 — 
Forward bond purchase commitments100 — — 100 
Foreign currency forward contracts12 — 12 — 
Total derivative liabilities894 — 794 100 
Total liabilities$1,040 $— $794 $246 
December 31, 2025
(Amounts in millions)TotalLevel 1Level 2Level 3
Liabilities
Policyholder account balances:
Fixed indexed annuity embedded derivatives$138 $— $— $138 
Indexed universal life embedded derivatives14 — — 14 
Total policyholder account balances152 — — 152 
Derivative liabilities:
Interest rate swaps849 — 849 — 
Foreign currency swaps4 — 4 — 
Forward bond purchase commitments107 — — 107 
Foreign currency forward contracts17 — 17 — 
Total derivative liabilities977 — 870 107 
Total liabilities$1,129 $— $870 $259 
Schedule of Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value
The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of and for the periods indicated:
Beginning
balance
as of
April 1, 2026		Total realized and
unrealized (gains)
losses		Ending
balance
as of
June 30,
2026		Total (gains)
losses attributable
to liabilities still
held
(Amounts in millions)Included
in net
(income)
loss		Included
in OCI		PurchasesSalesIssuancesSettlementsTransfer
into
Level 3		Transfer
out of
Level 3		Included
in net
(income)
loss		Included
in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives$130 $6 $— $— $— $— $(4)$— $— $132 $6 $— 
Indexed universal life embedded derivatives13 1 — — — — — — — 14 1 — 
Total policyholder account balances143 7 — — — — (4)— — 146 7 — 
Derivative liabilities:
Forward bond purchase commitments116 (3)(13)— — — — — — 100 (3)(13)
Total derivative liabilities116 (3)(13)— — — — — — 100 (3)(13)
Total Level 3 liabilities$259 $4 $(13)$— $— $— $(4)$— $— $246 $4 $(13)
Beginning
balance
as of
April 1, 2025		Total realized and
unrealized (gains)
losses		Ending
balance
as of
June 30,
2025		Total (gains)
losses attributable
to liabilities still
held
(Amounts in millions)Included
in net
(income)
loss		Included
in OCI		PurchasesSalesIssuancesSettlementsTransfer
into
Level 3		Transfer
out of
Level 3		Included
in net
(income)
loss		Included
in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives$145 $6 $— $— $— $— $(6)$— $(1)$144 $6 $— 
Indexed universal life embedded derivatives13 — — — — — — — — 13 — — 
Total policyholder account balances158 6 — — — — (6)— (1)157 6 — 
Derivative liabilities:
Forward bond purchase commitments44 12 46 — — — — — — 102 12 46 
Total derivative liabilities44 12 46 — — — — — — 102 12 46 
Total Level 3 liabilities$202 $18 $46 $— $— $— $(6)$— $(1)$259 $18 $46 
Beginning
balance
as of
January 1,
2026		Total realized and
unrealized (gains)
losses		Ending
balance
as of
June 30,
2026		Total (gains)
losses attributable
to liabilities still
held
(Amounts in millions)Included
in net
(income)
loss		Included
in OCI		PurchasesSalesIssuancesSettlementsTransfer
into
Level 3		Transfer
out of
Level 3		Included
in net
(income)
loss		Included
in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives$138 $4 $— $— $— $— $(9)$— $(1)$132 $4 $— 
Indexed universal life embedded derivatives14 1 — — — — (1)— — 14 1 — 
Total policyholder account balances152 5 — — — — (10)— (1)146 5 — 
Derivative liabilities:
Forward bond purchase commitments107 (2)(5)— — — — — — 100 (2)(5)
Total derivative liabilities107 (2)(5)— — — — — — 100 (2)(5)
Total Level 3 liabilities$259 $3 $(5)$— $— $— $(10)$— $(1)$246 $3 $(5)
Beginning
balance
as of
January 1,
2025		Total realized and
unrealized (gains)
losses		Ending
balance
as of
June 30,
2025		Total (gains)
losses attributable
to liabilities still
held
(Amounts in millions)Included
in net
(income)
loss		Included
in OCI		PurchasesSalesIssuancesSettlementsTransfer
into
Level 3		Transfer
out of
Level 3		Included
in net
(income)
loss		Included
in OCI
Policyholder account balances:
Fixed indexed annuity embedded derivatives$155 $2 $— $— $— $— $(11)$— $(2)$144 $2 $— 
Indexed universal life embedded derivatives15 (1)— — — — (1)— — 13 (1)— 
Total policyholder account balances170 1 — — — — (12)— (2)157 1 — 
Derivative liabilities:
Forward bond purchase commitments71 8 23 — — — — — — 102 8 24 
Total derivative liabilities71 8 23 — — — — — — 102 8 24 
Total Level 3 liabilities$241 $9 $23 $— $— $— $(12)$— $(2)$259 $9 $24 
Schedule of Gains and Losses Included in Net (Income) from Liabilities Measured at Fair Value
The following table presents the gains and losses included in net (income) loss from liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related condensed consolidated statements of operations line item in which these gains and losses were presented for the periods indicated:
Three months ended
June 30,		Six months ended
June 30,
(Amounts in millions)2026202520262025
Total realized and unrealized (gains) losses included in net (income) loss:
Net investment income$— $— $— $— 
Net investment (gains) losses4 18 3 9 
Total$4 $18 $3 $9 
Total (gains) losses included in net (income) loss attributable to liabilities still held:
Net investment income$— $— $— $— 
Net investment (gains) losses4 18 3 9 
Total$4 $18 $3 $9 
Schedule of Significant Unobservable Inputs Used for Certain Liability Fair Value Measurements
The following table presents a summary of the significant unobservable inputs used for certain liability fair value measurements that are based on internal models and classified as Level 3 as of June 30, 2026:
(Amounts in millions)Fair valueUnobservable inputRange
Weighted-average (1)
Policyholder account balances:
Fixed indexed annuity embedded derivatives$132 Expected future interest credited
1% - 4%
3%
Indexed universal life embedded derivatives$14 Expected future interest credited
3% - 11%
5%
Net market risk benefits: (2)
Fixed indexed annuities$52 GMWB utilization rate
20% - 100%
78%
Non-performance risk
(credit spreads)
42bps - 83bps
69bps
Expected future interest credited
1% - 4%
3%
Variable annuities$235 Lapse rate
2% - 11%
5%
GMWB utilization rate
57% - 90%
81%
Non-performance risk
(credit spreads)
42bps - 83bps
69bps
Equity index volatility
17% - 27%
23%
Derivative liabilities:
Forward bond purchase commitments$100 Counterparty financing spreads
11bps - 44bps
34bps
______________
(1)Unobservable inputs weighted by the policyholder account balances associated with the instrument and notional for derivative liabilities.
(2)Refer to note 11 for additional details related to MRBs.
Schedule of Fair Value Financial Instruments Not Required to be Carried at Fair Value
The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated:
June 30, 2026
(Amounts in millions)Notional
amount		Carrying
amount		Fair value
TotalLevel 1Level 2Level 3
Assets:
Commercial mortgage loans, net
(1)
$6,351 $6,072 $— $6 $6,066 
Other invested assets
(1)
703 710 — — 710 
Liabilities:
Long-term borrowings
(1)
1,500 1,439 — 1,439 — 
Investment contracts
(1)
3,930 3,954 — — 3,954 
Commitments to fund investments:
Private placement investments$677 
Bank loan investments122 
Commercial mortgage loans16 
______________
(1)These financial instruments do not have notional amounts.
December 31, 2025
(Amounts in millions)Notional
amount		Carrying
amount		Fair value
TotalLevel 1Level 2Level 3
Assets:
Commercial mortgage loans, net
(1)
$6,304 $6,092 $— $6 $6,086 
Other invested assets
(1)
642 651 — — 651 
Liabilities:
Long-term borrowings
(1)
1,513 1,471 — 1,471 — 
Investment contracts
(1)
3,869 3,944 — — 3,944 
Commitments to fund investments:
Private placement investments$362 
Bank loan investments118 
Commercial mortgage loans7 
______________
(1)These financial instruments do not have notional amounts.
Schedule of Carrying Value of Limited Partnerships and Commitments to Fund
The following table presents the carrying value of limited partnerships and commitments to fund as of the dates indicated:
June 30, 2026December 31, 2025
(Amounts in millions)Carrying
value		Commitments
to fund		Carrying
value		Commitments
to fund
Limited partnerships accounted for at NAV:
Private equity and credit funds (1)
$2,537 $1,511 $2,475 $1,619 
Real estate funds (2)
133 60 137 65 
Infrastructure funds (3)
174 153 156 151 
Total limited partnerships accounted for at NAV2,844 1,724 2,768 1,835 
Limited partnerships accounted for at fair value19 1 16 1 
Limited partnerships accounted for under equity method of accounting675 112 700 80 
Total$3,538 $1,837 $3,484 $1,916 
______________
(1)This class employs various investment strategies such as leveraged buyout, growth equity, venture capital and mezzanine financing, generally investing in debt or equity positions directly in companies or assets of various sizes across diverse industries globally, primarily concentrated in North America.
(2)This class invests in real estate in North America, Europe and Asia via direct property ownership, joint ventures, mortgages and investments in debt and equity instruments.
(3)This class invests in the debt or equity of cash flow generating assets diversified across a variety of industries, including transportation, energy infrastructure, renewable power, social infrastructure, power generation, water, telecommunications and other regulated entities globally.