v3.26.1
Market Risk Benefits
 6 Months Ended
Jun. 30, 2026
Insurance [Abstract]  
Market Risk Benefits MARKET RISK BENEFITS
The following table presents the balances of and changes in the Company’s market risk benefits for the six months ended June 30, 2026 and 2025 (dollars in millions):
U.S. and Latin America – Financial Solutions
Six months ended June 30,
20262025
Balance, beginning of year$215 $206 
Balance, beginning of year, before effect of changes in the instrument-specific credit risk217 209 
Interest accrual3 4 
Attributed fees collected11 12 
Effect of changes in interest rates(8)10 
Effect of changes in equity markets(19)(16)
Effect of changes in volatility2 1 
Other market impacts1 (8)
Actual policyholder behavior different from expected behavior6 9 
Balance, end of period, before effect of changes in the instrument-specific credit risk213 221 
Effect of changes in the instrument-specific credit risk— (5)
Balance, end of period213 216 
Less: reinsurance recoverable— — 
Balance, end of period, after reinsurance$213 $216 
Net amount at risk$1,184 $1,278 
Weighted average attained age of contract holders (in years)7372
The following table presents the reconciliation of the rollforward for market risk benefits to the condensed consolidated balance sheets as of June 30, 2026 and 2025 (dollars in millions):
June 30, 2026June 30, 2025
Asset (1)
LiabilityNet
Asset (1)
LiabilityNet
U.S. and Latin America – Financial Solutions$19 $232 $(213)$17 $233 $(216)
Total market risk benefits$19 $232 $(213)$17 $233 $(216)
(1)Included in Other assets.
Fair Value Measurement
See Note 12 – “Fair Value of Assets and Liabilities” for information about fair value measurement of assets and liabilities, except for market risk benefits.
Market risk benefits are classified within Level 3 on the fair value hierarchy. The fair value of market risk benefits is monitored through the use of attribution reports to quantify the effect of underlying sources of fair value change, including capital market inputs based on policyholder account values, interest rates and short-term and long-term implied volatility from period to period.
During the six months ended June 30, 2026 and 2025, there were no material changes made to the inputs in the market risk benefits calculations, and nonfinancial assumptions were unchanged.