v3.26.3
DERIVATIVES (Tables)
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments by Category
The following table presents the gross notional amount and fair value of the Company’s derivatives:

Derivative Instruments by Category
September 30, 2026December 31, 2025
Fair ValueFair Value
Notional
Amount
Derivative
Assets
Derivative Liabilities
Net
Derivatives
Notional AmountDerivative AssetsDerivative Liabilities
Net Derivatives
(in millions)
Derivatives: designated for hedge accounting (1)
 Cash flow hedges:
 Currency swaps $3,512 $91 $135 $(44)$3,286 $96 $142 $(46)
 Interest swaps952 — 318 (318)952 — 330 (330)
 Total: designated for hedge accounting 4,464 91 453 (362)4,238 96 472 (376)
Derivatives: not designated for hedge accounting (1)
Equity contracts:
Futures 17,695 4 — 4 15,052 1 — 1 
Swaps 17,605 342 218 124 18,290 61 47 14 
Options101,753 31,602 7,478 24,124 88,273 27,686 6,580 21,106 
Forwards
— 101 — 101 — 34 — 34 
Interest rate contracts:
Futures10,139 — — — 8,802 — — 
Swaps573 1 42 (41)601 — 18 (18)
Options50 6 — 6 50 5 — 5 
Credit contracts:
Credit default swaps440 2 10 (8)397 1 11 (10)
Currency contracts:
Currency swaps110 3 — 3 — — — — 
Currency forwards117 25 23 2 90 15 16 (1)
Other freestanding contracts:
Margin— 1,087 — 1,087 — 948 — 948 
Collateral— 140 24,478 (24,338)— 144 20,776 (20,632)
Total: not designated for hedge accounting148,482 33,313 32,249 1,064 131,555 28,895 27,448 1,447 
Embedded derivatives:
SCS, SIO, MSO and IUL indexed features (2)— — 26,287 (26,287)— — 21,819 (21,819)
Modco payable
— 7 — 7 — (1)— (1)
Total embedded derivatives— 7 26,287 (26,280)— (1)21,819 (21,820)
Total derivative instruments$152,946 $33,411 $58,989 $(25,578)$135,793 $28,990 $49,739 $(20,749)
______________
(1)Reported in other invested assets in the consolidated balance sheets.
(2)Reported in policyholders’ account balances in the consolidated balance sheets.
The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss):
Derivative Instruments by Category
Three Months Ended September 30, 2026Nine Months Ended September 30, 2026
Net Derivative Gains (Losses) (1)
Net Investment
Income
Interest Credited To Policyholders
Account Balances
AOCI
Net
Derivative
Gains
(Losses)
(1)
Net
Investment
Income
Interest Credited To Policyholders Account BalancesAOCI
(in millions)
Derivatives: designated for hedge accounting
Cash flow hedges:
Currency swaps$(2)$6 $(6)$(19)$(1)$17 $(31)$35 
Interest swaps— 1 — 37 — (20)— 48 
Total: designated for hedge accounting(2)7 (6)18 (1)(3)(31)83 
Derivatives: not designated for hedge accounting
Equity contracts:
Futures(90)— — — 316 — — — 
Swaps194 — — — (1,397)— — — 
Options1,545 — — — 6,692 — — — 
Forwards
10 — — — 67 — — — 
Interest rate contracts:
Futures(70)— — — (35)— — — 
Swaps(59)— — — (64)— — — 
Options
— — — — — — — — 
Credit contracts:
Credit default swaps— — — — (2)— — — 
Currency contracts:
Currency swaps(1)— — — 2 — — — 
Currency forwards2 — — — 5 — — — 
Other freestanding contracts:
Margin— — — — — — — — 
Collateral— — — — — — — — 
Total: not designated for hedge accounting1,531 — — — 5,584 — — — 
Embedded derivatives:
SCS, SIO,MSO and IUL indexed features(1,505)— — — (7,017)— — — 
Modco payable
(4)— — — (21)— — — 
Total embedded derivatives(1,509)— — — (7,038)— — — 
Total derivative instruments$20 $7 $(6)$18 $(1,455)$(3)$(31)$83 
______________
(1)Reported in net derivative gains (losses) in the consolidated statements of income (loss).
Three Months Ended September 30, 2025Nine Months Ended September 30, 2025
Net Derivative Gains (Losses) (1)
Net Investment IncomeInterest Credited To Policyholders Account BalancesAOCI
Net Derivative Gains (Losses) (1)
Net Investment IncomeInterest Credited To Policyholders Account BalancesAOCI
(in millions)
Derivatives: designated for hedge accounting
Cash flow hedges:
Currency swaps$— $(4)$(12)$38 $— $11 $94 $(150)
Interest swaps— (4)— (9)— (15)— (17)
Total: designated for hedge accounting— (8)(12)29 — (4)94 (167)
Derivatives: not designated for hedge accounting
Equity contracts:
Futures236 — — — 508 — — — 
Swaps(1,027)— — — (1,526)— — — 
Options3,386 — — — 4,976 — — — 
Forwards
24 — — — 24 — — — 
Interest rate contracts:
Futures9 — — — (112)— — — 
Swaps4 — — — 3 — — — 
Options— — — — (2)— — — 
Credit contracts:
Credit default swaps(1)— — — (4)— — — 
Currency contracts:
Currency swaps12 — — — (75)— — — 
Currency forwards1 — — — (5)— — — 
Total: not designated for hedge accounting2,644 — — — 3,787 — — — 
Embedded derivatives:
SCS, SIO,MSO and IUL indexed features(3,750)— — — (5,468)— — — 
Modco payable
(11)— — — (11)— — — 
Total embedded derivatives(3,761)— — — (5,479)— — — 
Total derivative instruments (1)
$(1,117)$(8)$(12)$29 $(1,692)$(4)$94 $(167)
______________
(1)Reported in net derivative gains (losses) in the consolidated statements of income (loss).
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table presents a roll-forward of cash flow hedges recognized in AOCI:
Roll-forward of Cash flow hedges in AOCI
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(in millions)
Balance, beginning of period $(2)$(116)$(67)$80 
Amount recorded in AOCI
Currency swaps(23)28 8 (53)
Interest swaps34 (17)17 (45)
Total amount recorded in AOCI11 11 25 (98)
Amount reclassified from (to) income to AOCI
Currency swaps (1)4 10 27 (97)
Interest swaps (1)3 8 31 28 
Total amount reclassified from (to) income to AOCI
7 18 58 (69)
Balance, end of period (2)$16 $(87)$16 $(87)
______________
(1)    Currency swaps and Interest rate swap income is reported in Net investment income in the consolidated statements of income (loss).
(2)    The Company does not estimate the amount of the deferred losses in AOCI at September 30, 2026 and 2025, which will be released and reclassified into net income (loss) over the next 12 months as the amounts cannot be reasonably estimated.
Schedule of Offsetting Financial Assets and Liabilities and Derivative Instruments
The following tables present information about the Company’s offsetting of financial assets and liabilities and derivative instruments:
Offsetting of Financial Assets and Liabilities and Derivative Instruments
As of September 30, 2026

Gross Amount RecognizedGross Amount Offset in the Balance SheetsNet Amount Presented in the Balance SheetsGross Amount not Offset in the Balance Sheets (3)Net Amount
(in millions)
Assets:
Derivative assets (1)$33,403 $25,018 $8,385 $(7,290)$1,095 
Secured lending
316 — 316 — 316 
Other financial assets2,233 — 2,233 — 2,233 
Other invested assets$35,952 $25,018 $10,934 $(7,290)$3,644 
Liabilities:
Derivative liabilities (2)$25,412 $25,018 $394 $— $394 
Secured lending
316 — 316 — 316 
Other financial liabilities7,173 — 7,173 — 7,173 
Other liabilities$32,901 $25,018 $7,883 $— $7,883 
______________
(1)Excludes Asset Management segment’s derivative assets of consolidated VIEs/VOEs.
(2)Excludes Asset Management segment’s derivative liabilities of consolidated VIEs/VOEs.
(3)Financial instruments/collateral sent (held).
As of December 31, 2025

Gross Amount RecognizedGross Amount Offset in the Balance SheetsNet Amount Presented in the Balance SheetsGross Amount not Offset in the Balance Sheets (3)Net Amount
(in millions)
Assets:
Derivative assets (1)$28,990 $20,424 $8,566 $(7,344)$1,222 
Secured Lending
408 — 408 — 408 
Other financial assets1,994 — 1,994 — 1,994 
Other invested assets$31,392 $20,424 $10,968 $(7,344)$3,624 
Liabilities:
Derivative liabilities (2)$20,575 $20,424 $151 $— $151 
Secured Lending
408 — 408 — 408 
Other financial liabilities6,442 — 6,442 — 6,442 
Other liabilities$27,425 $20,424 $7,001 $— $7,001 
______________
(1)Excludes Asset Management segment’s derivative assets of consolidated VIEs/VOEs.
(2)Excludes Asset Management segment’s derivative liabilities of consolidated VIEs/VOEs.
(3)Financial instruments sent (held).