Market Risk Benefits

14. Market Risk Benefits

other-than-nominal capital market risk. The MRB represents an amount that a policyholder receives in addition to the account balance

upon the occurrence of a specific event or circumstance, such as death, annuitization, or periodic withdrawal that involves protection

from other-than-nominal capital market risk. Certain contract features, such as GMWBs, GMDBs and guaranteed minimum income

benefits (“GMIBs”) commonly found in variable annuities, fixed index annuities and fixed annuities, are MRBs. MRBs are assessed at

contract inception using a non-option method involving attributed fees that results in an initial fair value of zero or an option method

that results in a fair value greater than zero.

MRBs are recorded at fair value, and Corebridge applies a non-option attributed fee valuation method for variable annuity products,

and an option-based valuation method (host offset) for fixed index and fixed products.

Changes in the fair value of Market Risk Benefits, net represents changes in the fair value of market risk benefit liabilities and

assets (with the exception of our own credit risk changes), and includes attributed rider fees and benefits, net of changes in the fair

value of derivative instruments and fixed maturity securities that are used to economically hedge market risk from the variable annuity

The following table presents the balances of and changes in MRBs:


	Individual Retirement	Group Retirement	Corporate and Other	Total
(in millions, except for attained age of contract holders)	Individual Retirement	Group Retirement	Corporate and Other	Total
Nine Months Ended September 30, 2026
Balance, beginning of year	$5,118	$346	$349	$5,813
Effect of changes in our own credit risk	(556)	(105)	(729)	(1,390)
Balance, beginning of year, before effect of changes in our own credit risk	$4,562	$241	$(380)	$4,423
Issuances	628	32	5	665
Interest accrual	208	15	(16)	207
Attributed fees	—	42	545	587
Expected claims	—	(1)	(51)	(52)
Effect of changes in interest rates	(942)	(90)	(360)	(1,392)
Effect of changes in interest rate volatility	(2)	2	53	53
Effect of changes in equity markets	(46)	(35)	(488)	(569)
Effect of changes in equity index volatility	1	7	(33)	(25)
Actual outcome different from model expected outcome	(93)	(3)	148	52
Effect of changes in future expected policyholder behavior	(141)	7	—	(134)
Effect of changes in other future expected assumptions	604	(11)	(74)	519
Other, including foreign exchange	—	—	—	—
Balance, end of period before effect of changes in our own credit risk	4,779	206	(651)	4,334
Effect of changes in our own credit risk	243	60	407	710
Balance, end of period	5,022	266	(244)	5,044
Less: Reinsured MRB, end of period	—	—	(169)	(169)
Net Liability Balance after reinsurance recoverable	$5,022	$266	$(413)	$4,875
Net amount at risk
GMDB only	$—	$85	$491	$576
GMWB only	$423	$44	$—	$467
Combined*	$44	$11	$306	$361
Weighted average attained age of contract holders	68	64	73

Nine Months Ended September 30, 2025
Balance, beginning of year	$3,757	$278	$309	$4,344
Effect of changes in our own credit risk	(224)	(69)	(587)	(880)
Balance, beginning of year, before effect of changes in our own credit risk	$3,533	$209	$(278)	$3,464
Issuances	620	31	7	658
Interest accrual	146	11	(6)	151
Attributed fees	—	44	557	601
Expected claims	—	(1)	(50)	(51)
Effect of changes in interest rates	6	5	112	123
Effect of changes in interest rate volatility	18	(3)	(87)	(72)
Effect of changes in equity markets	(23)	(30)	(724)	(777)
Effect of changes in equity index volatility	—	4	20	24
Actual outcome different from model expected outcome	42	(28)	143	157
Effect of changes in future expected policyholder behavior	76	(9)	—	67
Effect of changes in other future expected assumptions	16	3	(44)	(25)
Other, including foreign exchange	—	2	—	2
Balance, end of period before effect of changes in our own credit risk	4,434	238	(350)	4,322
Effect of changes in our own credit risk	464	95	702	1,261
Balance, end of period	4,898	333	352	5,583
Less: Reinsured MRB, end of period	—	—	(1,028)	(1,028)
Net liability balance after reinsurance recoverable	$4,898	$333	$(676)	$4,555
Net amount at risk
GMDB only	$—	$98	$346	$444
GMWB only	$641	$54	$—	$695
Combined*	$58	$12	$333	$403
Weighted average attained age of contract holders	68	64	73

*Certain contracts contain both guaranteed GMDB and GMWB features and are modeled together for the purposes of calculating the MRB.

The following is a reconciliation of MRBs by amounts in an asset position and in a liability position to the MRBs amount in

the Condensed Consolidated Balance Sheets:


	September 30, 2026			September 30, 2025
(in millions)	Asset*	Liability*	Net	Asset*	Liability*	Net
Individual Retirement	$—	$5,022	$5,022	$—	$4,898	$4,898
Group Retirement	248	514	266	243	576	333
Corporate and Other	2,100	1,687	(413)	2,223	1,547	(676)
Total	$2,348	$7,223	$4,875	$2,466	$7,021	$4,555

*Cash flows and attributed fees for MRBs are determined on a policy level basis and are reported based on their asset or liability position at the balance sheet date.

For additional information related to fair value measurements of MRBs, see Note 4.

Actuarial Assumption Updates for Market Risk Benefits

For 2026, MRBs reflected an unfavorable impact due to model enhancements affecting fixed index annuity products in Individual and

Group Retirement, offset by a favorable impact from the related embedded derivatives. For 2025, Corebridge recognized an

unfavorable impact to net income primarily due to utilization updates for fixed annuities with living benefits and certain model