v3.26.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of June 30, 2026:
Level 1Level 2Level 3Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries$412 $115 $— $527 
U.S. Government agencies and authorities— 28 — 28 
State, municipalities and political subdivisions— 318 — 318 
U.S. corporate public securities— 6,152 61 6,213 
U.S. corporate private securities — 2,164 2,258 4,422 
Foreign corporate public securities and foreign governments(1)
— 2,100 61 2,161 
Foreign corporate private securities(1)
— 1,412 766 2,178 
Residential mortgage-backed securities— 3,049 53 3,102 
Commercial mortgage-backed securities— 1,649 — 1,649 
Other asset-backed securities— 1,644 277 1,921 
Total fixed maturities, including securities pledged412 18,631 3,476 22,519 
Equity securities20 — 45 65 
Derivatives:
Interest rate contracts1 141 — 142 
Foreign exchange contracts— 9 — 9 
Embedded derivatives within reinsurance
— 15 — 15 
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements1,081 — — 1,081 
Assets held in separate accounts110,230 5,390 446 116,066 
Total assets$111,744 $24,186 $3,967 $139,897 
Liabilities:
Stabilizer and MCGs$— $— $8 $8 
Derivatives:
Interest rate contracts1 190 — 191 
Foreign exchange contracts— 13 — 13 
Total liabilities$1 $203 $8 $212 
(1) Primarily U.S. dollar denominated.
The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2025:
Level 1Level 2Level 3Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries$344 $126 $— $470 
U.S. Government agencies and authorities— 28 — 28 
State, municipalities and political subdivisions— 359 — 359 
U.S. corporate public securities— 5,950 62 6,012 
U.S. corporate private securities— 2,772 1,701 4,473 
Foreign corporate public securities and foreign governments(1)
— 2,109 48 2,157 
Foreign corporate private securities(1)
— 1,755 493 2,248 
Residential mortgage-backed securities— 3,176 61 3,237 
Commercial mortgage-backed securities— 1,879 — 1,879 
Other asset-backed securities— 1,735 240 1,975 
Total fixed maturities, including securities pledged344 19,889 2,605 22,838 
Equity securities21 — 51 72 
Derivatives:
Interest rate contracts1 146 — 147 
Foreign exchange contracts— 7 — 7 
Embedded derivatives within reinsurance— 23 — 23 
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements1,144 5 — 1,149 
Assets held in separate accounts103,956 5,428 388 109,772 
Total assets$105,466 $25,498 $3,044 $134,008 
Liabilities:
Stabilizer and MCGs$— $— $5 $5 
Derivatives:
Interest rate contracts— 215 — 215 
Foreign exchange contracts— 17 — 17 
Total liabilities$— $232 $5 $237 
(1) Primarily U.S. dollar denominated.
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables summarize the change in fair value of the Company’s Level 3 assets and liabilities and transfers in and out of Level 3 for the periods indicated:
Three Months Ended June 30, 2026
Fair Value as of
April 1		Realized/Unrealized
Gains (Losses) Included in:		PurchasesIssuancesSalesSettlementsTransfers into Level 3Transfers out of Level 3Fair Value as of
June 30
Change In Unrealized Gains (Losses) Included in Earnings(3)
Change in Unrealized Gains (Losses) Included in OCI(3)
Net income (loss)
OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities$61 $— $— $— $— $— $— $— $— $61 $— $— 
U.S. Corporate private securities1,893 — 1 322 — (30)(83)184 (29)2,258 — 2 
Foreign corporate public securities and foreign governments(1)
47 — — — — — — 14 — 61 — — 
Foreign corporate private securities(1)
586 1 (5)128 — — (44)100 — 766 — (5)
Residential mortgage-backed securities67 (2)— — — — — — (12)53 (3)— 
Other asset-backed securities258 (1)8 29 — — (8)— (9)277 — 8 
Total fixed maturities, including securities pledged2,912 (2)4 479 — (30)(135)298 (50)3,476 (3)5 
Equity securities, at fair value44 1 — — — — — — — 45 1 — 
Stabilizers and MCGs(2)
(7)— — — (1)— — — — (8)— — 
Assets held in separate accounts(4)
426 (1)— 34 — (18)— 12 (7)446 — — 
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Net gains (losses) in the Condensed Consolidated Statements of Operations.
(3) For financial instruments still held as of June 30, amounts are included in Net investment income and Net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on investments in the Condensed Consolidated Statements of Comprehensive Income.
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.
Six Months Ended June 30, 2026
Fair Value
as of
January 1		Realized/Unrealized
Gains (Losses) Included in:		PurchasesIssuancesSalesSettlementsTransfers into Level 3Transfers out of Level 3Fair Value as of
June 30
Change in Unrealized Gains (Losses) Included in Earnings(3)
Change in Unrealized Gains (Losses) Included in OCI(3)
Net income (loss)
OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities$62 $— $(1)$— $— $— $— $— $— $61 $— $(1)
U.S. Corporate private securities1,701 (2)(24)557 — (57)(160)291 (48)2,258 — (22)
Foreign corporate public securities and foreign governments(1)
48 — (2)— — — — 15 — 61 — (1)
Foreign corporate private securities(1)
493 — (13)229 — — (45)102 — 766 — (12)
Residential mortgage-backed securities61 (4)— — — — — — (4)53 (4)— 
Other asset-backed securities240 (1)8 95 — (1)(17)— (47)277 — 8 
Total fixed maturities, including securities pledged2,605 (7)(32)881 — (58)(222)408 (99)3,476 (4)(28)
Equity securities, at fair value51 1 — — — (7)— — — 45 1 — 
Stabilizer and MCGs(2)
(5)(2)— — (1)— — — — (8)— — 
Assets held in separate accounts(4)
388 (5)— 72 — (25)— 24 (8)446 — — 
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Net gains (losses) in the Condensed Consolidated Statements of Operations.
(3) For financial instruments still held as of June 30, amounts are included in Net investment income and Net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on investments in the Condensed Consolidated Statements of Comprehensive Income.
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.
Three Months Ended June 30, 2025
Fair Value as of
April 1		Realized/Unrealized
Gains (Losses) Included in:		PurchasesIssuancesSalesSettlementsTransfers into Level 3Transfers out of Level 3Fair Value as of
June 30
Change In Unrealized Gains (Losses) Included in Earnings(3)
Change in Unrealized Gains (Losses) Included in OCI(3)
Net income (loss)
OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities$38 $— $1 $— $— $— $— $— $— $39 $— $— 
U.S. Corporate private securities1,316 2 14 90 — (23)(82)— — 1,317 — 10 
Foreign corporate public securities and foreign governments(1)
48 — — — — — — — 48 — — 
Foreign corporate private securities(1)
472 (27)17 54 — — (12)— — 504 1 17 
Residential mortgage-backed securities61 — — 23 — — — — — 84 — — 
Other asset-backed securities14 — — 55 — — (1)— — 68 — — 
Total fixed maturities, including securities pledged1,949 (25)32 222 — (23)(95)— — 2,060 1 27 
Equity securities, at fair value64 — — — — (13)— — — 51 — — 
Stabilizer and MCGs(2)
(16)4 — — (1)— — — — (13)— — 
Cash and cash equivalents, short-term investments, and short-term investments under securities loan agreement20 — 1 — — — — — — 21 — 1 
Assets held in separate accounts(4)
338 2 — 13 — (3)— — (3)347 — — 
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Net gains (losses) in the Condensed Consolidated Statements of Operations.
(3) For financial instruments still held as of June 30, amounts are included in Net investment income and Net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on investments in the Condensed Consolidated Statements of Comprehensive Income.
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.
Six Months Ended June 30, 2025
Fair Value
as of
January 1		Realized/Unrealized
Gains (Losses) Included in:		PurchasesIssuancesSalesSettlementsTransfers into Level 3Transfers out of Level 3Fair Value as of
June 30
Change in Unrealized Gains (Losses) Included in Earnings(3)
Change in
Unrealized
Gains
(Losses)
Included
in OCI(3)
Net income (loss)
OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities$47 $(1)$2 $1 $— $(10)$— $— $— $39 $— $1 
U.S. Corporate private securities1,171 1 29 240 — (20)(104)— — 1,317 — 28 
Foreign corporate public securities and foreign governments(1)
48 — (1)1 — — — — — 48 — (1)
Foreign corporate private securities(1)
341 (42)41 178 — — (14)— — 504 (14)41 
Residential mortgage-backed securities54 (2)— 39 — — — — (7)84 (2)— 
Other asset-backed securities14 — — 57 — — (3)— — 68 — — 
Total fixed maturities, including securities pledged1,675 (44)71 516 — (30)(121)— (7)2,060 (16)69 
Equity securities, at fair value56 2 — 6 — (13)— — — 51 2 — 
Stabilizer and MCGs(2)
(19)7 — — (1)— — — — (13)— — 
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements
19 — 2 — — — — — — 21 — 2 
Assets held in separate accounts(4)
340 6 — 21 — (17)— — (3)347 — — 
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Net gains (losses) in the Condensed Consolidated Statements of Operations.
(3) For financial instruments still held as of June 30, amounts are included in Net investment income and Net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on investments in the Condensed Consolidated Statements of Comprehensive Income.
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.
Fair Value, by Balance Sheet Grouping
The carrying values and estimated fair values of the Company’s financial instruments as of the dates indicated:
June 30, 2026December 31, 2025
Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Assets:
Fixed maturities, including securities pledged$22,519 $22,519 $22,838 $22,838 
Equity securities65 65 72 72 
Mortgage loans on real estate4,478 4,375 4,602 4,534 
Policy loans153 153 157 157 
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements
1,081 1,081 1,149 1,149 
Derivatives151 151 154 154 
Short-term loan to affiliate(1)
351 351 569 569 
Embedded derivatives within reinsurance
15 15 23 23 
Other investments56 56 61 61 
Assets held in separate accounts116,066 116,066 109,772 109,772 
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities(2)
$28,541 $31,296 $29,002 $32,344 
Funding agreements with fixed maturities1,674 1,683 1,573 1,591 
Supplementary contracts and immediate annuities
178 172 177 167 
Stabilizer and MCGs8 8 5 5 
Derivatives204 204 232 232 
Short-term debt(3)
57 57 42 42 
(1) Included in Other assets on the Condensed Consolidated Balance Sheets.
(2) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within Stabilizer and MCGs.
(3) Included in Other liabilities on the Condensed Consolidated Balance Sheets.
Financial Instruments Not Carried At Fair Value
The following table presents the classification of financial instruments which are not carried at fair value on the Condensed Consolidated Balance Sheets:
Financial InstrumentClassification
Mortgage loans on real estateLevel 3
Policy loansLevel 2
Short-term loan to affiliateLevel 2
Other investmentsLevel 2
Funding agreements without fixed maturities and deferred annuitiesLevel 3
Funding agreements with fixed maturitiesLevel 2
Supplementary contracts and immediate annuities
Level 3
Short-term debt
Level 2