v3.26.3
Reinsurance
 9 Months Ended
Sep. 30, 2026
Insurance [Abstract]  
Reinsurance Reinsurance
F&G reinsures portions of its policy risks with other insurance companies. The use of indemnity reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance liability regardless of whether it is entitled to or able to receive payment from the reinsurer. The portion of risks exceeding F&G's retention limit is reinsured. F&G primarily seeks reinsurance coverage in order to manage loss exposures, to enhance our capital position, to diversify risks and earnings, and to manage new business volume. F&G follows reinsurance accounting when the treaty adequately transfers insurance risk and any acquisition cost reimbursements reduce policy acquisition costs deferred and maintenance expense reimbursements reduce direct expenses incurred. Otherwise, F&G follows deposit accounting if there is inadequate transfer of insurance risk or if the underlying policy for which risk is being transferred is an investment contract that does not contain insurance risk. As of September 30, 2026 and December 31, 2025, we had an immaterial amount of cost of reinsurance recorded on the unaudited Condensed Consolidated Balance Sheets.

The effects of reinsurance on net premiums earned, net product fees and net benefits incurred (benefits paid and reserve changes) for the three and nine months ended September 30, 2026 and 2025 were as follows (in millions):
Three months ended September 30,
20262025
Net Premiums EarnedNet Product FeesNet Benefits IncurredNet Premiums EarnedNet Product FeesNet Benefits Incurred
Direct$193 $188 $56 $565 $178 $1,237 
Ceded(19)(32)(30)(21)(11)(56)
Net$174 $156 $26 $544 $167 $1,181 

Nine months ended September 30,
20262025
Net Premiums
Earned		Net Product
Fees		Net Benefits
Incurred		Net Premiums
Earned		Net Product
Fees		Net Benefits
Incurred
Direct$799 $547 $1,815 $1,370 $537 $2,871 
Ceded(58)(85)(156)(64)(35)(173)
Net$741 $462 $1,659 $1,306 $502 $2,698 

Amounts payable or recoverable for reinsurance on paid and unpaid claims are not subject to periodic or maximum limits. No policies issued by F&G have been reinsured with any foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. F&G has not entered into any reinsurance agreements in which the reinsurer may unilaterally cancel any reinsurance for reasons other than non-payment of premiums or other similar credit issues.

Reinsurance Transactions

The following summarizes significant changes to third-party reinsurance agreements for the period ended September 30, 2026:
Talcott Life Re. Ltd. (“Talcott”): Effective July 1, 2026, F&G entered into a reinsurance agreement with Talcott, an unaffiliated reinsurer, to cede the base contract benefits and GMWB riders attached under certain future flow FIA policies on a coinsurance quota share basis.
New Re: Effective September 30, 2026, F&G amended the existing indemnity reinsurance agreement with New Reinsurance Company Ltd., an unaffiliated reinsurer and wholly owned subsidiary of Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (d/b/a “Munich Re”), to additionally cede certain inforce and future flow MYGA policies on a coinsurance basis. The coinsurance basis is applicable to the base contract benefits and minimum guaranteed surrender value benefits, and for certain MYGA policies, return of premium rider benefits.
Ancient Re: Effective February 28, 2026, in conjunction with the sale of F&G Life Re to Ancient, F&G
amended the existing reinsurance agreement with F&G Life Re for certain inforce FIA policies and effective March 1, 2026, added a new forward flow component to cede certain MYGA policies, both on a coinsurance funds withheld quota share basis.
There have been no other significant changes to third party reinsurance agreements for the three and nine months ended September 30, 2026.

The following summarizes our reinsurance recoverable (in millions) as of September 30, 2026 and December 31, 2025:
Parent Company/
Principal Reinsurers		Reinsurance Recoverable (a)Agreement TypeProducts
Covered		Accounting
September 30, 2026December 31, 2025
Aspida (b)$8,249 $8,589 Coinsurance Funds WithheldCertain MYGA Deposit
Somerset Reinsurance Ltd. ("Somerset") (c)6,445 5,071 Coinsurance Funds WithheldCertain MYGA and deferred annuitiesDeposit
Coinsurance Funds WithheldCertain FIAReinsurance
Everlake Life Insurance Company (“Everlake”)1,879 1,868 Coinsurance Certain MYGA (d)Deposit
Fort Greene Reinsurance SPC Limited ("Fort Greene")1,861 502 Coinsurance Funds WithheldCertain FIADeposit
Ancient Re1,642 — Coinsurance Funds WithheldCertain FIA and certain MYGADeposit
Wilton Reassurance Company ("Wilton Re")1,011 1,032 CoinsuranceBlock of traditional, IUL, and UL (e)Reinsurance
Other (f)871 501 
Reinsurance recoverable, gross of allowance21,958 17,563 
Allowance for expected credit losses(20)(18)
Reinsurance recoverable, net of allowance for expected credit losses$21,938 $17,545 
(a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies.
(b) Includes Aspida Life Re Ltd. and Aspida Re Cayman Ltd. (together, “Aspida”)
(c) The balance represents the total reinsurance recoverable for all reinsurance agreements with Somerset.
(d) Reinsurance recoverable is collateralized by assets placed in a statutory comfort trust by the reinsurer and maintained for our sole benefit.
(e) Also includes certain FGL Insurance life insurance policies that are subject to redundant reserves, reported on a statutory basis, under Regulation XXX and Guideline AXXX.
(f) Represents all other reinsurers, with no single reinsurer having a carrying value in excess of 5% of total reinsurance recoverable.

As of September 30, 2026 and December 31, 2025, F&G had a deposit asset of $15,555 million and $13,279 million, respectively, which is reported in the Reinsurance recoverable, net of allowance for credit losses on the unaudited Condensed Consolidated Balance Sheets.

F&G incurred risk charge fees of $10 million and $10 million during the three months ended September 30, 2026 and 2025, respectively, and $32 million and $31 million during the nine months ended September 30, 2026 and 2025, respectively, in relation to reinsurance agreements.

Credit Losses

F&G estimates expected credit losses on reinsurance recoverables using a probability of default/loss given default model. Significant inputs to the model include the reinsurer's credit risk, expected timing of recovery, industry-wide historical default experience, senior unsecured bond recovery rates, and credit enhancement features. There was no material change in the expected credit loss reserve for the three and nine months ended September 30, 2026 and 2025.
Funds Withheld

The following assets were held in support of our reserves associated with our coinsurance with funds withheld agreements and are reported at carrying value in the line items shown below in the unaudited Condensed Consolidated Balance Sheets (in millions):
September 30, 2026December 31, 2025
Fixed maturities, AFS$15,312 $12,530 
Equity securities6060 
Derivative instruments14655 
Mortgage loans78165 
Investments in unconsolidated affiliates1,006752 
Policy loans11 
Cash and cash equivalents601702 
   Subtotal$17,907 $14,165 
Accrued interest receivable, included in Prepaid expenses and other assets189146 
Accounts payable and accrued liabilities and reconciling items (a)(259)(120)
Net assets$17,837 $14,191 
(a) Reconciling items primarily represent net balances in process of settlement or clearing.

Concentration of Reinsurance Risk
As indicated above, F&G has a significant concentration of reinsurance risk with third party reinsurers, Aspida, Somerset, Everlake, Fort Greene, Ancient Re and Wilton Re (each, as defined below) that could have a material impact on our financial position in the event that any of these reinsurers fails to perform its obligations under the various reinsurance treaties. We monitor the financial condition and financial strength of individual reinsurers using public ratings (refer to table below) and ratings reports of individual reinsurers to attempt to reduce the risk of default by such reinsurers. In addition, the risk of non-performance is further mitigated with various forms of collateral or collateral arrangements, including secured trusts, funds withheld accounts and irrevocable letters of credit. We believe that all amounts due from Aspida, Somerset, Everlake, Fort Greene, Ancient Re and Wilton Re for periodic treaty settlements, net of any applicable credit loss reserves, are collectible as of September 30, 2026. The following table presents financial strength ratings as of September 30, 2026:
Parent Company/Principal ReinsurersFinancial Strength Rating
AM BestS&PFitchMoody's
Aspida A- ———
Somerset ABBB+——
EverlakeA———
Fort Greene————
Ancient Re Ltd.————
Wilton ReA+—A-—
“—” indicates not rated