v3.26.1
Derivatives and Hedge Accounting (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets:
June 30, 2026December 31, 2025
Gross Derivative AssetsGross Derivative LiabilitiesGross Derivative AssetsGross Derivative Liabilities
(in millions)Notional
Amount		Fair
Value		Notional
Amount		Fair
Value		Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Derivatives designated as hedging instruments:(a)
Foreign exchange contracts$362 $24 $1,163 $95 $206 $21 $1,438 $88 
Derivatives not designated as hedging instruments:(a)
Interest rate contracts917 223 993 254 935 227 1,012 258 
Foreign exchange contracts1,644 66 1,315 55 1,154 64 2,576 93 
Credit contracts(b)
41 25 46 25 42 26 47 26 
Total derivatives, gross$2,964 $338 $3,517 $429 $2,337 $338 $5,073 $465 
Counterparty netting(c)
(138)(138)(164)(164)
Cash collateral(d)
(197)(180)(169)(212)
Total derivatives on Condensed Consolidated Balance Sheets(e)
$3 $111 $5 $89 
(a)Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.
(b)As of June 30, 2026 and December 31, 2025, included CDSs on super senior multi-sector CLO with a net notional amount of $38 million and $38 million (fair value liability of $24 million and $25 million, respectively). The net notional amount represents the maximum exposure to loss on the portfolio.
(c)Represents netting of derivative exposures covered by a qualifying master netting agreement.
(d)Represents cash collateral posted and received that is eligible for netting.
(e)Freestanding derivatives only, excludes embedded derivatives. Derivative instrument assets and liabilities are recorded in Other assets and Other liabilities, respectively. Fair value of assets related to bifurcated embedded derivatives was $2.9 billion at June 30, 2026 and $3.0 billion at December 31, 2025. Fair value of liabilities related to bifurcated embedded derivatives was zero at both June 30, 2026 and December 31, 2025. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to the funds withheld arrangement with Fortitude Re. For additional information, see Note 7.
Schedule of Gain (Loss) Recognized in Income on Derivative Instruments in Fair Value Hedging Relationships
The following table presents the gain (loss) recognized in income on our derivative instruments in fair value hedging relationships in the Condensed Consolidated Statements of Income (Loss):
Gains/(Losses) Recognized in Income for:
(in millions)
Hedging
Derivatives(a)
Excluded
Components(b)
Hedged
Items		Net Impact
Three Months Ended June 30, 2026
Foreign exchange contracts:
Net realized gains/(losses)$(7)$(17)$7 $(17)
Three Months Ended June 30, 2025
Foreign exchange contracts:
Net realized gains/(losses)$(26)$(18)$26 $(18)
Six Months Ended June 30, 2026
Foreign exchange contracts:
Net realized gains/(losses)$(21)$(5)$21 $(5)
Six Months Ended June 30, 2025
Foreign exchange contracts:
Net realized gains/(losses)$(27)$(19)$27 $(19)
(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness.
(b)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in income on a mark-to-market basis.
Derivatives Not Designated as Hedging Instruments
The following table presents the effect of derivative instruments not designated as hedging instruments in the Condensed Consolidated Statements of Income (Loss):
Gains (Losses) Recognized in Income
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2026202520262025
By Derivative Type:
Interest rate contracts$(2)$(4)$(1)$(5)
Foreign exchange contracts(22)(111)(17)(144)
Embedded derivatives(51)(14)(41)(55)
Total$(75)$(129)$(59)$(204)
By Classification:
Net investment income - Fortitude Re funds withheld assets$— $(1)$— $(1)
Net realized losses - excluding Fortitude Re funds withheld assets
(22)(98)(20)(126)
Net realized losses on Fortitude Re funds withheld assets*
(53)(30)(39)(77)
Total$(75)$(129)$(59)$(204)
*Includes over-the-counter derivatives supporting the funds withheld arrangements with Fortitude Re and the embedded derivative contained within the funds withheld payable with Fortitude Re.