v3.26.3
Market Risk Benefits
 9 Months Ended
Sep. 30, 2026
Insurance [Abstract]  
Market Risk Benefits Market Risk Benefits
The following table presents the balances of and changes in MRBs associated with indexed annuities and fixed rate annuities for the nine months ended September 30, 2026 and the year ended December 31, 2025 (in millions):
September 30, 2026December 31, 2025
Indexed
annuities		Fixed rate
annuities		Indexed
annuities		Fixed rate
annuities
Balance, beginning of period, net liability$812 $1 $420 $1 
Balance, beginning of period, before effect of changes in the instrument-specific credit risk$684 $1 $322 $1 
Issuances and benefit payments136 — 147 — 
Attributed fees collected and interest accrual142 — 156 — 
Actual policyholder behavior different from expected 53 — 45 — 
Changes in assumptions and other(62)— 8 — 
Effects of market related movements(251)— 6 — 
Balance, end of period, before effect of changes in the instrument-specific credit risk702 1 684 1 
Effect of changes in the instrument-specific credit risk95 — 128 — 
Balance, end of period, net liability797 1 812 1 
Less: reinsured market risk benefits235 — 195 — 
Balance, end of period, net of reinsurance$562 $1 $617 $1 
Weighted-average attained age of policyholders weighted by total AV (years)67.7885.2367.8484.69
Net amount at risk$2,000 $2 $1,900 $2 

The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRBs amounts in the unaudited Condensed Consolidated Balance Sheets (in millions):
September 30, 2026December 31, 2025
DirectReinsuredTotal DirectReinsuredTotal
MRB asset
Indexed annuities$99 $244 $343 $88 $197 $285 
Fixed rate annuities— — — — — — 
Total MRB asset$99 $244 $343 $88 $197 $285 
MRB liability
Indexed annuities$896 $9 $905 $900 $2 $902 
Fixed rate annuities1 — 1 1 — 1 
Total MRB liability$897 $9 $906 $901 $2 $903 

The net MRB liability decreased for the nine months ended September 30, 2026, primarily as a result of market-related movements, offset by collection of attributed fees, interest accrual, actual to expected policyholder behavior, and MRB reserves for contracts issued within the period.

For the nine months ended September 30, 2026, notable changes made to the inputs to the fair value estimates of MRBs calculations included an increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities partially offset by decreases in the equity market related projections which resulted in an increase in the net amount at risk associated with indexed annuities, leading to an unfavorable change in the value of the associated MRBs.
The net MRB liability increased for the year ended December 31, 2025, primarily as a result of collection of attributed fees, interest accrual, MRB reserves for contracts issued within the period, and changes in actuarial assumptions. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections.

For the year ended December 31, 2025, notable changes made to the inputs to the fair value estimates of MRBs calculations included an increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and decreases in the equity market related projections resulted in an increase in the net amount at risk associated with indexed annuities, leading to an unfavorable change in the value of the associated MRBs.

In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. In 2025 and for the nine months ended in September 30, 2026, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuities (indexed annuities and fixed rate annuities) with MRBs. For the nine months ended September 30, 2026, we updated assumptions including surrender rates, GMWB utilization, projected CPI, and option budgets. All updates to these assumptions brought us more in line with our Company and overall industry experience since the prior assumption updates. These updates, in total, led to a decrease in the net MRB liability for the nine months ended September 30, 2026. For the year ended December 31, 2025, we updated assumptions including surrender rates, mortality and mortality improvement, partial withdrawals, projected CPI, and option budgets. All updates to these assumptions brought us more in line with our Company and overall industry experience since the prior assumption updates. These updates, in total, led to an increase in the net MRB liability for the year ended December 31, 2025.
Contractholder Funds
The following tables summarize balances of and changes in Contractholder funds’ account balances (in millions):
September 30, 2026
Indexed annuitiesFixed rate annuitiesUniversal lifeFABN (a)FHLB (a)
Balance, beginning of year$33,226 $19,265 $3,292 $3,324 $2,898 
Issuances5,570 357 170 750 2,375 
Premiums received21 — 507 — — 
Policy charges (b)(181)— (315)— — 
Surrenders and withdrawals(3,013)(1,570)(113)— — 
Benefit payments(379)(296)(14)(860)(1,774)
Interest credited941 669 203 115 83 
Other(10)2 — — — 
Balance, end of period36,175 18,427 3,730 3,329 3,582 
Reconciling items (c)(493)2 102 (41)— 
Gross liability, end of period35,682 18,429 3,832 3,288 3,582 
Less: Reinsurance recoverable7,829 12,645 878 — 25 
Net liability, after reinsurance$27,853 $5,784 $2,954 $3,288 $3,557 
Weighted-average crediting rate3.68 %4.85 %8.02 %N/AN/A
Net amount at risk (d)N/AN/A$29,754 N/AN/A
Cash surrender value (e)$33,637 $18,428 $2,887 N/AN/A

December 31, 2025
Indexed annuitiesFixed rate annuitiesUniversal lifeFABN (a)FHLB (a)
Balance, beginning of year$30,235 $17,442 $2,817 $2,463 $2,852 
Issuances6,714 3,801 229 1,148 2,241 
Premiums received31 — 593 — — 
Policy charges (b)(222)— (378)— — 
Surrenders and withdrawals(3,831)(2,485)(130)— — 
Benefit payments(536)(358)(21)(395)(2,298)
Interest credited830 866 182 107 103 
Other5 (1)— 1 — 
Balance, end of period33,226 19,265 3,292 3,324 2,898 
Reconciling items (c)321 2 115 11 — 
Gross liability, end of period33,547 19,267 3,407 3,335 2,898 
Less: Reinsurance recoverable3,198 12,863 887 — — 
Net liability, after reinsurance$30,349 $6,404 $2,520 $3,335 $2,898 
Weighted-average crediting rate2.65 %4.84 %6.13 %N/AN/A
Net amount at risk (d)N/AN/A$29,581 N/AN/A
Cash surrender value (e)$30,920 $18,034 $2,533 N/AN/A
(a)FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials.
(b)Contracts included in the Contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance.
(c)The reconciling items reconcile the account balance to the gross GAAP liability. For indexed annuities and universal life, the reconciling items represent embedded derivatives and include the combination of the host contracts and the fair value of the embedded derivatives. For FABN, the reconciling items represent basis adjustments due to the impact of fair value hedge accounting.
(d)For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
(e)These amounts are gross of reinsurance.
The following table reconciles Contractholder funds’ account balances to the Contractholder funds liability in the unaudited Condensed Consolidated Balance Sheets (in millions):
September 30, 2026December 31, 2025
Indexed annuities$35,682 $33,547 
Fixed rate annuities18,429 19,267 
Immediate annuities246 262 
Universal life3,832 3,407 
Traditional life4 4 
FABN3,288 3,335 
FHLB3,582 2,898 
PRT6 6 
Total$65,069 $62,726 

Annually, typically in the third quarter, we review assumptions associated with reserves for policy benefits and product guarantees. For the nine months ended September 30, 2026 and the year ended December 31, 2025, based on policyholder behavior, experience and interest rate movements, we updated certain economic indexed annuities assumptions used to calculate the fair value of the embedded derivative component within Contractholder funds. Additionally, for both periods, we reflected updates to surrender assumptions for recent and expected policyholder behavior. These changes resulted in decreases in Contractholder funds of approximately $268 million and $22 million for the nine months ended September 30, 2026 and for the year ended December 31, 2025, respectively.

The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums (in millions):
September 30, 2026
Range of guaranteed minimum crediting rateAt Guaranteed Minimum
 1 Basis Point-50 Basis Points Above
51 Basis Points-150 Basis Points Above
 Greater Than 150 Basis Points Above
 Total
Indexed annuities
Up to 1.50%$702 $362 $314 $666 $2,044 
1.51%-2.50%506 14 1,037 702 2,259 
Greater than 2.50%187 — — 3 190 
Subtotal$1,395 $376 $1,351 $1,371 $4,493 
No guaranteed minimum crediting rate31,682 
Total$36,175 
Fixed rate annuities
Up to 1.50%$140 $107 $226 $15,197 $15,670 
1.51%-2.50%1 8 19 422 450 
Greater than 2.50%679 1 5 1,622 2,307 
Total$820 $116 $250 $17,241 $18,427 
Universal life
Up to 1.50%$3,342 $10 $— $32 $3,384 
1.51%-2.50%— — — — — 
Greater than 2.50%345 — 1 — 346 
Total$3,687 $10 $1 $32 $3,730 
December 31, 2025
Range of guaranteed minimum crediting rateAt Guaranteed Minimum
 1 Basis Point-50 Basis Points Above
51 Basis Points-150 Basis Points Above
 Greater Than 150 Basis Points Above
 Total
Indexed annuities
Up to 1.50%$659 $464 $298 $812 $2,233 
1.51%-2.50%548 17 633 630 1,828 
Greater than 2.50%212 1 — 1 214 
Subtotal$1,419 $482 $931 $1,443 $4,275 
No guaranteed minimum crediting rate28,951 
Total$33,226 
Fixed rate annuities
Up to 1.50%$94 $75 $792 $15,548 $16,509 
1.51%-2.50%4 6 16 466 492 
Greater than 2.50%727 2 5 1,530 2,264 
Total$825 $83 $813 $17,544 $19,265 
Universal life
Up to 1.50%$2,898 $9 $— $31 $2,938 
1.51%-2.50%— — — — — 
Greater than 2.50%353 — 1 — 354 
Total$3,251 $9 $1 $31 $3,292