As of June 30, 2026, the Company has reinsurance treaties with three unaffiliated reinsurers covering a significant portion of the mortality risks and guaranteed death benefits under its variable contracts. The Company remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements.


	Direct		Assumed		Ceded		Total, Net of Reinsurance
June 30, 2026
Assets
Premium receivable	$	1	$	—	$	(4)	$	(3)
Reinsurance recoverable, net of allowance for credit losses	—		—		2,308		2,308
Total	$	1	$	—	$	2,304	$	2,305
Liabilities
Future policy benefits and contract owner account balances	$	29,813	$	2,961	$	—	$	32,774
Total	$	29,813	$	2,961	$	—	$	32,774

December 31, 2025
Assets
Premium receivable	$	1	$	—	$	(1)	$	—
Reinsurance recoverable, net of allowance for credit losses	—		—		2,421		2,421
Total	$	1	$	—	$	2,420	$	2,421
Liabilities
Future policy benefits and contract owner account balances	$	30,017	$	3,227	$	—	$	33,244
Total	$	30,017	$	3,227	$	—	$	33,244

Information regarding the effect of reinsurance in the Condensed Consolidated Statements of Operations is as follows for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Fee income:
Direct fee income	$	331	$	296	$	654	$	590
Reinsurance assumed	21		21		41		43
Reinsurance ceded	(3)		—		(6)		—
Net fee income	$	349	$	317	$	689	$	633

Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders	$	211	$	200	$	453	$	412
Reinsurance assumed	17		24		27		48
Reinsurance ceded	(16)		(15)		(43)		(44)
Net interest credited and other benefits to contract owners / policyholders	$	212	$	209	$	437	$	416

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. As of June 30, 2026 and December 31, 2025, the Company had a deposit asset net of the allowance for credit losses of $0.7 billion and $0.8 billion, respectively, which is reported in Other assets on the Condensed Consolidated Balance Sheets. The funds withheld asset related to assumed reinsurance was $0.9 billion as of June 30, 2026 and December 31, 2025, which was recorded in Other assets on the Condensed Consolidated Balance Sheets.