v3.26.3
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Carrying Amount of Derivative Instruments
The notional and carrying amounts of derivative financial instruments, including derivative instruments embedded in indexed annuities and IUL contracts, and reinsurance are as follows (in millions):
September 30, 2026December 31, 2025
Gross NotionalAssets LiabilitiesGross NotionalAssetsLiabilities
Derivatives designated as hedging instruments
Interest rate swaps (a)$1,600 $— $42 $850 $11 $1 
Foreign currency swaps (a)— — — 21 — 3 
Total derivatives designated as hedging instruments1,600 — 42 871 11 4 
Derivatives not designated as hedging instruments
Equity options (a)32,496 1,110 — 29,651 1,062 — 
Interest rate swaps (a)8,424 7 237 6,229 75 2 
Foreign currency swaps (a)1,083 9 19 503 — 6 
Futures contracts (a)132 — 1 68 — 1 
Foreign currency forwards (a)81 — — 93 — — 
Other embedded derivatives (b)— — — — 41 — 
Indexed annuities/IUL embedded derivatives (c)— 947 6,456 — 399 6,542 
Reinsurance related embedded derivatives (d)— — (545)— — 75 
Total derivatives not designated as hedging instruments42,216 2,073 6,168 36,544 1,577 6,626 
Total derivatives $43,816 $2,073 $6,210 $37,415 $1,588 $6,630 
(a)The fair value of derivative assets is reported in Derivative investments, and the fair value of derivative liabilities is reported in Accounts payable and accrued liabilities on the unaudited Condensed Consolidated Balance Sheets.
(b)The fair value is included in Other long term investments on the unaudited Condensed Consolidated Balance Sheets.
(c)The fair value of the liability is included in Contractholder funds and the ceded portion is included in Reinsurance recoverable on the unaudited Condensed Consolidated Balance Sheets.
(d)The fair value is included in Funds withheld for reinsurance liabilities for funds withheld arrangements and Accounts payable and accrued liabilities for coinsurance arrangements, irrespective if in a net asset or net liability position, on the unaudited Condensed Consolidated Balance Sheets.
The following amounts are recorded in the unaudited Condensed Consolidated Balance Sheets related to the carrying amount of hedged assets and (liabilities) and the cumulative basis adjustment included in the carrying amount for fair value hedges (in millions):
September 30, 2026December 31, 2025
Line Item in the unaudited Condensed Consolidated Balance Sheets that includes hedged item Carrying Amount of Hedged Assets (Liabilities)Cumulative Amount of Fair Value Hedging Adjustment included in the Carrying Amount of the Hedged Assets (Liabilities)Carrying Amount of Hedged Assets (Liabilities)Cumulative Amount of Fair Value Hedging Adjustment included in the Carrying Amount of the Hedged Assets (Liabilities)
Fixed maturity securities, AFS, at amortized cost$— $— $21 $— 
Contractholder funds (1,638)41 (862)(11)
Schedule of Change in Fair Value of Derivative Instruments
The amounts and locations of gains (losses), net recognized for derivatives and gains (losses), net recognized for hedged items included in the unaudited Condensed Consolidated Statements of Operations are as follows (in millions):
Three Months Ended September 30, 2026Three Months Ended September 30, 2025
Recognized gains (losses), net for derivativesRecognized gains (losses), net for hedged itemBenefits and other changes in policy reserves for derivativesBenefits and other changes in policy reserves for hedged itemRecognized gains (losses), net for derivativesRecognized gains (losses), net for hedged itemBenefits and other changes in policy reserves for derivativesBenefits and other changes in policy reserves for hedged item
Derivatives designated as hedging instruments
Interest rate swaps$— $— $(27)$26 $— $— $(1)$1 
Foreign currency swaps— — — — — — — — 
Total derivatives designated as hedging instruments— — (27)26 — — (1)1 
Derivatives not designated as hedging instruments
Equity options(116)— — — 269 — — — 
Interest rate swaps(223)— — — (5)— — — 
Foreign currency swaps(11)— — — — — — — 
Futures contracts2 — — — 12 — — — 
Foreign currency forwards1 — — — 1 — — — 
Other embedded derivatives— — — — 3 — — — 
Indexed annuities/IUL embedded derivatives— — (753)— — — 171 — 
Reinsurance related embedded derivatives533 — — — (60)— — — 
Total derivatives not designated as hedging instruments186 — (753)— 220 — 171 — 
Total derivatives $186 $— $(780)$26 $220 $— $170 $1 
Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
Recognized gains (losses) for derivativesRecognized gains (losses) for hedged itemBenefits and other changes in policy reserves for derivativesBenefits and other changes in policy reserves for hedged itemRecognized gains (losses) for derivativesRecognized gains (losses) for hedged itemBenefits and other changes in policy reserves for derivativesBenefits and other changes in policy reserves for hedged item
Derivatives designated as hedging instruments
Interest rate swaps$— $— $(55)$52 $— $— $11 $(12)
Foreign currency swaps(1)1 — — (3)3 — — 
Total derivatives designated as hedging instruments(1)1 (55)52 (3)3 11 (12)
Derivatives not designated as hedging instruments
Equity options164 — — — 161 — — — 
Interest rate swaps(282)— — — 62 — — — 
Foreign currency swaps2 — — — (4)— — — 
Futures contracts(3)— — — 26 — — — 
Foreign currency forwards4 — — — (10)— — — 
Other embedded derivatives3 — — — 7 — — — 
Indexed annuities/IUL embedded derivatives— — (521)— — — 302 — 
Reinsurance related embedded derivatives711 — — — (162)— — — 
Total derivatives not designated as hedging instruments599 — (521)— 80 — 302 — 
Total derivatives $598 $1 $(576)$52 $77 $3 $313 $(12)
Schedule of Exposure to Credit Loss on Call Options Information regarding our exposure to credit loss on the derivative instruments we hold, excluding futures contracts, is presented below (in millions):
Fair ValueCollateralNet Credit Risk
September 30, 2026$828 $851 $37 
December 31, 20251,137 1,185 34