| Segment Reporting |
The table below presents operating earnings (loss) by segment and Corporate and Other (C&O): | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2026 | | Retirement | Asset Management | Wealth Management | Corporate & Other | Eliminations | Total | | (in millions) | | Segment revenues | $ | 1,884 | | $ | 1,141 | | $ | 582 | | $ | 433 | | $ | (253) | | $ | 3,787 | | | | | | | | | | Benefits and other deductions | | | | | | | | Policyholders’ benefits | 71 | | — | | — | | 209 | | — | | 280 | | | Interest credited to policyholders’ account balances | 830 | | — | | — | | 54 | | — | | 884 | | | Commissions and distribution related payments | 188 | | 189 | | 369 | | 58 | | (247) | | 557 | | | Amortization of deferred policy acquisition costs | 182 | | — | | — | | 48 | | — | | 230 | | | Compensation and benefits | 18 | | 470 | | 90 | | 35 | | — | | 613 | | | Interest expense and financing fees | — | | 5 | | — | | 59 | | (3) | | 61 | | | Significant segment expenses | 1,289 | | 664 | | 459 | | 463 | | (250) | | 2,625 | | | Other segment items (1) | 77 | | 177 | | 24 | | 42 | | (3) | | 317 | | | Income taxes | (86) | | (52) | | (24) | | 11 | | — | | (151) | | | Less: Operating (earnings) loss attributable to the noncontrolling interest | — | | 96 | | — | | 3 | | — | | 99 | | | Operating earnings (loss) | $ | 432 | | $ | 152 | | $ | 75 | | $ | (64) | | $ | — | | $ | 595 | |
_____________ (1)Other segment items include Remeasurement for liability for future policy benefits and Other operating expenses and costs. Additionally, other segment items reflected in the Asset Management segment are primarily driven by other operating expense and costs related to general and administrative costs and promotion and servicing expenses. | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2025 | | Retirement | Asset Management | Wealth Management | Corporate & Other | Eliminations | Total | | (in millions) | | Segment revenues | $ | 1,592 | | $ | 1,144 | | $ | 499 | | $ | 737 | | $ | (235) | | $ | 3,737 | | | | | | | | | | Benefits and other deductions | | | | | | | | Policyholders’ benefits | 73 | | — | | — | | 438 | | — | | 511 | | | Interest credited to policyholders’ account balances | 685 | | — | | — | | 96 | | — | | 781 | | | Commissions and distribution related payments | 153 | | 209 | | 320 | | 82 | | (227) | | 537 | | | Amortization of deferred policy acquisition costs | 153 | | — | | — | | 50 | | — | | 203 | | | Compensation and benefits | 15 | | 447 | | 82 | | 33 | | — | | 577 | | | Interest expense and financing fees | — | | 7 | | — | | 61 | | (3) | | 65 | | | Significant segment expenses | 1,079 | | 663 | | 402 | | 760 | | (230) | | 2,674 | | | Other segment items (1) | 70 | | 188 | | 19 | | 144 | | (5) | | 416 | | | Income taxes | (38) | | (46) | | (19) | | 8 | | — | | (95) | | | Less: Operating (earnings) loss attributable to the noncontrolling interest | — | | 93 | | — | | 4 | | — | | 97 | | | Operating earnings (loss) | $ | 405 | | $ | 154 | | $ | 59 | | $ | (163) | | $ | — | | $ | 455 | |
_____________ (1)Other segment items include Remeasurement for liability for future policy benefits and Other operating expenses and costs. Additionally, other segment items reflected in the Asset Management segment are primarily driven by other operating expense and costs related to general and administrative costs and promotion and servicing expenses. | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2026 | | Retirement | Asset Management | Wealth Management | Corporate & Other | Eliminations | Total | | (in millions) | | Segment revenues | $ | 5,311 | | $ | 3,389 | | $ | 1,667 | | $ | 1,506 | | $ | (746) | | $ | 11,127 | | | | | | | | | | Benefits and other deductions | | | | | | | | Policyholders’ benefits | 220 | | — | | — | | 880 | | — | | 1,100 | | | Interest credited to policyholders’ account balances | 2,341 | | — | | — | | 159 | | — | | 2,500 | | | Commissions and distribution related payments | 535 | | 580 | | 1,070 | | 210 | | (720) | | 1,675 | | | Amortization of deferred policy acquisition costs | 506 | | — | | — | | 147 | | — | | 653 | | | Compensation and benefits | 56 | | 1,358 | | 268 | | 114 | | — | | 1,796 | | | Interest expense and financing fees | — | | 19 | | — | | 183 | | (12) | | 190 | | | Significant segment expenses | 3,658 | | 1,957 | | 1,338 | | 1,693 | | (732) | | 7,914 | | | Other segment items (1) | 233 | | 570 | | 79 | | 169 | | (14) | | 1,037 | | | Income taxes | (190) | | (137) | | (57) | | 44 | | — | | (340) | | | Less: Operating (earnings) loss attributable to the noncontrolling interest | — | | 275 | | — | | 6 | | — | | 281 | | | Operating earnings (loss) | $ | 1,230 | | $ | 450 | | $ | 193 | | $ | (318) | | $ | — | | $ | 1,555 | |
_____________ (1)Other segment items include Remeasurement for liability for future policy benefits and Other operating expenses and costs. Additionally, other segment items reflected in the Asset Management segment are primarily driven by other operating expense and costs related to general and administrative costs and promotion and servicing expenses. | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2025 | | Retirement | Asset Management | Wealth Management | Corporate & Other | Eliminations | Total | | (in millions) | | Segment revenues | $ | 4,538 | | $ | 3,326 | | $ | 1,430 | | $ | 2,723 | | $ | (695) | | $ | 11,322 | | | | | | | | | | Benefits and other deductions | | | | | | | | Policyholders’ benefits | 241 | | — | | — | | 1,816 | | — | | 2,057 | | | Interest credited to policyholders’ account balances | 1,847 | | — | | — | | 402 | | — | | 2,249 | | | Commissions and distribution related payments | 440 | | 607 | | 909 | | 237 | | (667) | | 1,526 | | | Amortization of deferred policy acquisition costs | 435 | | — | | — | | 149 | | — | | 584 | | | Compensation and benefits | 61 | | 1,298 | | 246 | | 133 | | — | | 1,738 | | | Interest expense and financing fees | — | | 23 | | — | | 185 | | (13) | | 195 | | | Significant segment expenses | 3,024 | | 1,928 | | 1,155 | | 2,922 | | (680) | | 8,349 | | | Other segment items (1) | 198 | | 569 | | 69 | | 344 | | (15) | | 1,165 | | | Income taxes | (177) | | (135) | | (52) | | 75 | | — | | (289) | | | Less: Operating (earnings) loss attributable to the noncontrolling interest | — | | 283 | | — | | 8 | | — | | 291 | | | Operating earnings (loss) | $ | 1,139 | | $ | 411 | | $ | 154 | | $ | (476) | | $ | — | | $ | 1,228 | |
_____________ (1)Other segment items include Remeasurement for liability for future policy benefits and Other operating expenses and costs. Additionally, other segment items reflected in the Asset Management segment are primarily driven by other operating expense and costs related to general and administrative costs and promotion and servicing expenses. The table below presents a reconciliation to net income (loss) attributable to Holdings: | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | | | (in millions) | | Net income (loss) attributable to Holdings | $ | 1,121 | | | $ | (1,309) | | | $ | 1,289 | | | $ | (1,595) | | | | | Adjustments related to: | | | | | | | | | | Variable annuity product (1) | (796) | | | 978 | | | 340 | | | 2,123 | | | | | Investment (gains) losses (2) | 84 | | | 1,170 | | | 178 | | | 1,255 | | | | | Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 14 | | | 19 | | | 42 | | | 41 | | | | | Other adjustments (3) | 125 | | | (164) | | | (157) | | | (96) | | | | | Income tax expense (benefit) related to above adjustments | 120 | | | (437) | | | (85) | | | (714) | | | | Non-recurring tax items | (73) | | | 198 | | | (52) | | | 214 | | | | | Operating earnings (loss) | $ | 595 | | | $ | 455 | | | $ | 1,555 | | | $ | 1,228 | | | |
_____________ (1)As a result of the novation of certain Legacy VA policies completed during the first quarter of 2025, the Company recorded a loss of $499 million in pre-tax net income and an increase of $263 million in pre-tax AOCI, for a total impact loss of $236 million for the nine months ended September 30, 2025. (2)Includes $1.1 billion as a result of assets transferred related to the reinsurance transaction with RGA for the three and nine months ended September 30, 2025. (3)Includes a loss of $7 million and a gain of $315 million on Non-VA derivatives for the three and nine months ended September 30, 2026 and a gain of $230 million and $262 million for the three and nine months ended September 30, 2025, respectively. The table below presents revenues by segment and C&O: | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | | | (in millions) | | Segment revenues: | | | | | | | | | | Retirement (1) | $ | 1,884 | | | $ | 1,592 | | | $ | 5,311 | | | $ | 4,538 | | | | | Asset Management (2) | 1,141 | | | 1,144 | | | 3,389 | | | 3,326 | | | | | Wealth Management (3) | 582 | | | 499 | | | 1,667 | | | 1,430 | | | | | Corporate and Other (1) | 433 | | | 737 | | | 1,506 | | | 2,723 | | | | | Eliminations | (253) | | | (235) | | | (746) | | | (695) | | | | | | | | | | | | | | | Adjustments related to: | | | | | | | | | | Variable annuity product features, excluding change in MRBs | (24) | | | (1,314) | | | (1,835) | | | (1,888) | | | | | Investment gains (losses), net | (84) | | | (1,170) | | | (178) | | | (1,255) | | | | Other adjustments to segment revenues | 202 | | | 197 | | | 655 | | | 209 | | | | | Total revenues | $ | 3,881 | | | $ | 1,450 | | | $ | 9,769 | | | $ | 8,388 | | | |
______________ (1)Includes investment expenses charged by AB of $47 million and $131 million for the three and nine months ended September 30, 2026, respectively,and $39 million and $115 million for the three and nine months ended September 30, 2025, respectively, for services provided to the Company. (2)Inter-segment investment management and other fees of $51 million and $146 million for the three and nine months ended September 30, 2026, respectively,and $44 million and $130 million for the three and nine months ended September 30, 2025, respectively, are included in segment revenues of the Asset Management segment. (3)Inter-segment distribution fees of $247 million and $720 million for the three and nine months ended September 30, 2026, respectively,and $227 million and $667 million for the three and nine months ended September 30, 2025, respectively, are included in segment revenues of the Wealth Management segment. Total assets by segment were as follows: | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | (in millions) | | Total assets by segment: | | | | | Retirement | $ | 214,290 | | | $ | 196,794 | | | Asset Management | 10,934 | | | 10,386 | | | Wealth Management | 446 | | | 183 | | | Corporate and Other | 108,338 | | | 110,627 | | | Total assets | $ | 334,008 | | | $ | 317,990 | |
|