Through our investment activities, we regularly invest in various entities including limited partnerships (“LPs”) and limited liability companies (“LLCs”) and frequently participate in the design with their sponsor, but in most cases, our involvement is limited to financing. Some of these investments have been determined to be VIEs. In certain instances, in addition to an economic interest in the entity, the Company holds the power to direct the most significant activities of the entity and is deemed the primary beneficiary. The Company consolidates all VIEs for which it is the primary beneficiary. The assets of consolidated VIEs are restricted and must first be used to settle their liabilities. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of the Company, as the Company’s obligation is limited to the amount of its committed investment. The Company has not provided financial or other support to these consolidated VIEs in the form of liquidity arrangements, guarantees or other commitments to third parties that may affect the fair value or risk of its variable interest in these VIEs as of June 30, 2026 and December 31, 2025.

In addition to investment activities, certain of the Company’s subsidiaries are deemed VIEs. The Company is the primary beneficiary and consolidates these entities in the same manner as other entities in which the Company has a controlling financial interest by holding a majority voting interest.


	June 30, 2026		December 31, 2025
	(Dollars in millions)
Available-for-sale fixed maturity securities	$	226	$	74
Equity securities	187		693
Mortgage loans on real estate, net of allowance	458		248
Private loans, net of allowance	1,953		2,007
Investment real estate	2,875		2,660
Real estate partnerships	1,668		1,479
Investment funds	3,052		2,604
Short-term investments	—		2
Other invested assets	831		326
Cash and cash equivalents	350		293
Other assets	143		166
Total assets of consolidated VIEs	$	11,743	$	10,552

Notes payable	$	206	$	205
Other liabilities	751		733
Total liabilities of consolidated VIEs	$	957	$	938

For certain of the Company’s investments in various entities that are determined to be VIEs, the Company is not the primary beneficiary. In some instances, a consolidated VIE involves one or more underlying entities for which the Company is not the primary beneficiary because it does not have the power to direct the most significant activities of these entities. These unconsolidated VIEs that are part of consolidated VIEs are reported primarily in “Investment real estate and real estate partnerships” on the Condensed Consolidated Statements of Financial Position. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of the Company, as the Company’s obligation is limited to the amount of its committed investment. The Company has not provided financial or other support to these unconsolidated VIEs in the form of liquidity arrangements, guarantees or other commitments to third-parties that may affect the fair value or risk of its variable interest in these VIEs as of June 30, 2026 and December 31, 2025.


	June 30, 2026				December 31, 2025
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
	(Dollars in millions)
Available-for-sale fixed maturity securities	$	4,612	$	5,149	$	2,829	$	3,137

Mortgage loans on real estate, net of allowance	494		494		562		562
Private loans, net of allowance	2,157		2,184		1,809		1,809

Real estate partnerships	2,691		2,695		2,681		2,685
Investment funds	3,532		5,602		2,182		3,470

Other invested assets	1,017		1,164		524		524

Total	$	14,503	$	17,288	$	10,587	$	12,187

Our investments in investment funds, real estate partnerships, and other partnerships, of which substantially all are LLCs or LPs, are accounted for using the equity method of accounting, except for certain investments that are fair valued due to the application of fair value option under ASC 825 or the consolidation of investment company VIEs under ASC 946. The fair value of certain investments is estimated using net asset value (“NAV”) as a practical expedient.

The Company’s investments that would require the use of equity method accounting, absent the election of the fair value option under ASC 825, were $7.7 billion and $6.4 billion as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026 and December 31, 2025, these equity method investments are primarily composed of $3.2 billion and $2.9 billion of real estate partnerships, $3.5 billion and $3.0 billion of investment funds, and $1.1 billion and $0.5 billion of other invested assets, respectively, within the Consolidated Statements of Financial Position. Balance as of June 30, 2026 includes $431 million of common stock of Brookfield Business Corporation (“BBUC”) for which a quoted market price is available. The aggregate value of our interest in BBUC based on the quoted market price as of June 30, 2026 was $509 million.

The Company generally recognizes its share of earnings in its equity method investments within “Net investment income”. For the three and six months ended June 30, 2026 and 2025, net investment income for Real estate partnerships and Investment funds in Note 10 - Net Investment Income and Investment Related Gains (Losses) principally represents our share of earnings in our equity method investments, including fair value changes from investments under ASC 825.