v3.26.1
Derivative Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Financial Statement Location and Amounts
The notional and fair values of derivative instruments, presented in the Condensed Consolidated Statements of Financial Position, are shown below:
Primary
Underlying
Risk		Location in the Condensed
Consolidated Statements of
Financial Position		June 30, 2026December 31, 2025
Notional
Amount		Carrying Value / Fair Value (1)Notional
Amount		Carrying Value / Fair Value (1)
AssetsLiabilitiesAssetsLiabilities
(Dollars in millions)
Derivatives Designated as Hedging Instruments:
Foreign exchange forwardsForeign currencyOther invested assets, Other liabilities$751 $9 $5 $656 $— $11 
Interest rate swapsInterest rateOther invested assets, Other liabilities2,914 6 35 1,797 12 — 
Derivatives Not Designated as Hedging Instruments:
Equity-indexed optionsEquityOther invested assets, Other liabilities47,200 1,601 — 46,883 1,570 — 
Foreign exchange forwardsForeign currencyOther invested assets, Other liabilities4,149 57 13 3,218 4 24 
Cross currency swapsForeign currencyOther invested assets, Other liabilities1,036 7 18 949 35 14 
Embedded Derivatives:
Indexed annuity productsInterest ratePolicyholders’ account balances— — 6,625 — — 6,414 
Funds withheld and Modco arrangementsInterest rateFunds withheld for reinsurance liabilities— — 20 — — 74 
$56,050 $1,680 $6,716 $53,503 $1,621 $6,537 
(1)The asset and liability balances are presented on a gross basis. Amounts are reported as “Other invested assets” and “Other liabilities” in the Condensed Consolidated Statements of Financial Position after the evaluation for rights of offset. See “Derivative Exposure” section of this note for further details.
The following represents the amount of gains (losses) related to the derivatives and hedged items that qualify for fair value hedges:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(Dollars in millions)
Foreign currency derivatives:
Hedged items$(12)$45 $(30)$72 
Derivatives designated as hedging instruments12 (45)30 (72)
Interest rate derivatives:
Hedged items29 8 42 18 
Derivatives designated as hedging instruments(29)(8)(42)(18)
Gains (losses) on fair value hedges$— $— $— $— 
Schedule of Carrying Amount and Cumulative Fair Value of Hedging Instruments
The following table presents the carrying amount and cumulative fair value hedging adjustments for a portion of PAB designated and qualifying as hedged items in fair value hedges in relation to interest rate derivatives:
Carrying Amount of the
Hedged Assets (Liabilities)
Cumulative Amount of Fair
Value Hedging Adjustments Included
in the Carrying Amount of
Hedge Assets (Liabilities)
June 30, 2026December 31, 2025June 30, 2026December 31, 2025
(Dollars in millions)
Location in the Condensed Consolidated
Statements of Financial Position:
Policyholders’ account balances$(3,307)$(2,224)$35 $(11)
Schedule of Derivatives Instruments
The following represents the financial statement location and amount of gains (losses) related to derivatives not designated as hedging instruments:
Location in the Condensed Consolidated
Statements of Operations		Derivative Gains (Losses) Recognized in Income
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(Dollars in millions)
Equity-indexed optionsChange in fair value of insurance-related derivatives and embedded derivatives$694 $232 $258 $(102)
Foreign exchange forwardsInvestment related gains (losses)15 (124)57 (189)
Cross currency swapsInvestment related gains (losses)8 15 (30)15 
Embedded derivatives:
Indexed annuity productsChange in fair value of insurance-related derivatives and embedded derivatives(483)(354)(218)(199)
Funds withheld and Modco arrangementsChange in fair value of insurance-related derivatives and embedded derivatives21 (9)54 (29)
$255 $(240)$121 $(504)
Schedule of Derivative Assets and Effects of Rights of Offset
Information regarding the Company’s exposure to credit loss on the derivatives it holds, including the effect of rights of offset, is presented below:
Gross Amounts Offset
in the Condensed
Consolidated Statements
of Financial Position
Gross Amount
of Derivative
Instruments
(1)		Counterparty Netting
(2)		Cash
Collateral
(3)		Net Amount
Presented in the
Consolidated
Statements of
Financial Position		Collateral
(Received)
Pledged in
Invested Assets
(3)		Net
Amount
After
Collateral
(Dollars in millions)
As of June 30, 2026
Total derivative assets$1,680 $(56)$(1,554)$70 $— $70 
Total derivative liabilities(71)56 — (15)1 (14)
As of December 31, 2025
Total derivative assets$1,621 $(35)$(1,548)$38 $(28)$10 
Total derivative liabilities(49)35 — (14)— (14)
(1)Represents derivative assets and liabilities on a gross basis, which are not offset under enforceable master netting agreements that meet all offsetting criteria.
(2)Represents netting of derivative exposures covered by qualifying master netting agreements.
(3)Excludes a portion of collateral held in cash and invested assets that are excess collateral. As of June 30, 2026 and December 31, 2025, the Company held excess collateral of $5 million and $115 million, respectively.
Schedule of Derivative Liabilities and Effects of Rights of Offset
Information regarding the Company’s exposure to credit loss on the derivatives it holds, including the effect of rights of offset, is presented below:
Gross Amounts Offset
in the Condensed
Consolidated Statements
of Financial Position
Gross Amount
of Derivative
Instruments
(1)		Counterparty Netting
(2)		Cash
Collateral
(3)		Net Amount
Presented in the
Consolidated
Statements of
Financial Position		Collateral
(Received)
Pledged in
Invested Assets
(3)		Net
Amount
After
Collateral
(Dollars in millions)
As of June 30, 2026
Total derivative assets$1,680 $(56)$(1,554)$70 $— $70 
Total derivative liabilities(71)56 — (15)1 (14)
As of December 31, 2025
Total derivative assets$1,621 $(35)$(1,548)$38 $(28)$10 
Total derivative liabilities(49)35 — (14)— (14)
(1)Represents derivative assets and liabilities on a gross basis, which are not offset under enforceable master netting agreements that meet all offsetting criteria.
(2)Represents netting of derivative exposures covered by qualifying master netting agreements.
(3)Excludes a portion of collateral held in cash and invested assets that are excess collateral. As of June 30, 2026 and December 31, 2025, the Company held excess collateral of $5 million and $115 million, respectively.