v3.26.3
Fair Value of Assets and Liabilities
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Disclosures FAIR VALUE OF ASSETS AND LIABILITIES
Fair Value Measurement
General accounting principles for Fair Value Measurements and Disclosures define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. These principles also establish a three-level fair value hierarchy that requires an entity to maximize the use of observable inputs and to minimize the use of unobservable inputs when measuring fair value:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. Active markets are defined through various characteristics for the measured asset/liability, such as having many transactions and narrow bid/ask spreads.
Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or market standard valuation techniques and assumptions that use significant inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the related assets or liabilities and include those whose value is determined using market standard valuation techniques described above. Prices are determined using valuation methodologies such as discounted cash flow models and other similar techniques that require management’s judgment or estimation in developing inputs that are consistent with those other market participants would use when pricing similar assets and liabilities.
For a discussion of the Company’s valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 13 – “Fair Value of Assets and Liabilities” in the Notes to Consolidated Financial Statements included in the 2025 Annual Report.
See Note 7 – “Market Risk Benefits” for information about fair value measurement of market risk benefits.
Assets and Liabilities by Hierarchy Level
Assets and liabilities measured at fair value on a recurring basis as of September 30, 2026 and December 31, 2025 are summarized below (dollars in millions):
September 30, 2026:Fair Value Measurements Using:
TotalLevel 1Level 2Level 3
Assets: (1)
Fixed maturity securities available-for-sale:
Corporate$74,727 $— $64,363 $10,364 
Canadian government4,668 — 4,668 — 
Japanese government6,642 — 6,642 — 
Korean government1,197 — 1,197 — 
ABS7,915 — 3,771 4,144 
CMBS2,518 — 2,473 45 
RMBS1,882 — 1,882 — 
U.S. government2,204 2,027 174 3 
State and political subdivisions625 — 625 — 
Other foreign government5,379 — 5,254 125 
Total fixed maturity securities available-for-sale107,757 2,027 91,049 14,681 
Equity securities239 147 — 92 
Funds withheld at interest – embedded derivatives(302)— — (302)
Funds withheld at interest60 — — 60 
Real estate joint ventures – fair value63 — — 63 
Cash equivalents2,674 2,674 — — 
Short-term investments341 260 61 20 
Other invested assets:
Derivatives134 — 134 — 
Other14 — 14 — 
Total other invested assets148 — 148 — 
Reinsurance ceded receivables and other – embedded derivatives94 — — 94 
Other assets – derivatives1 — — 1 
Total assets$111,075 $5,108 $91,258 $14,709 
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives$404 $— $— $404 
Other liabilities:
Funds withheld at interest – embedded derivatives(378)— — (378)
Derivatives879 — 878 1 
Total liabilities$905 $— $878 $27 
(1)Excludes limited partnerships that are measured at estimated fair value using the NAV per share (or its equivalent) as a practical expedient. As of September 30, 2026, the fair value of such investments was $926 million.
December 31, 2025:Fair Value Measurements Using:
TotalLevel 1Level 2Level 3
Assets: (1)
Fixed maturity securities available-for-sale:
Corporate$69,737 $— $59,710 $10,027 
Canadian government5,100 — 5,100 — 
Japanese government4,701 — 4,701 — 
Korean government1,312 — 1,312 — 
ABS7,369 — 3,831 3,538 
CMBS2,162 — 2,099 63 
RMBS1,569 — 1,569 — 
U.S. government3,287 3,074 209 4 
State and political subdivisions660 — 660 — 
Other foreign government5,872 — 5,752 120 
Total fixed maturity securities available-for-sale101,769 3,074 84,943 13,752 
Equity securities311 213 — 98 
Funds withheld at interest – embedded derivatives(128)— — (128)
Funds withheld at interest61 — — 61 
Real estate joint ventures – fair value— — — — 
Cash equivalents2,460 2,460 — — 
Short-term investments255 156 66 33 
Other invested assets:
Derivatives185 — 185 — 
Other17 — 17 — 
Total other invested assets 202 — 202 — 
Reinsurance ceded receivables and other – embedded derivatives— — — — 
Other assets – derivatives3 — — 3 
Total assets$104,933 $5,903 $85,211 $13,819 
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives$470 $— $— $470 
Other liabilities:
Funds withheld at interest – embedded derivatives(59)— — (59)
Derivatives599 — 596 3 
Total liabilities$1,010 $— $596 $414 
(1)Excludes limited partnerships that are measured at estimated fair value using the NAV per share (or its equivalent) as a practical expedient. As of December 31, 2025, the fair value of such investments was $925 million.
Quantitative Information Regarding Internally Priced Assets and Liabilities
The following table presents quantitative information about significant unobservable inputs used in Level 3 fair value measurements that are developed internally by the Company as of September 30, 2026 and December 31, 2025 (dollars in millions):
Estimated Fair Value      Valuation TechniqueUnobservable InputRange (Weighted Average) 
September 30, 2026December 31, 2025September 30, 2026December 31, 2025
Assets:
Corporate$709 $636 Market comparable securitiesLiquidity premium
0-3% (2%)
0-4% (3%)
EBITDA Multiple
5.7x-14.1x (7.6x)
6.0x-14.8x (9.3x)
ABS1,252 1,329 Market comparable securitiesLiquidity premium
0-67% (4%)
0-20% (4%)
U.S. government3 4 Market comparable securitiesLiquidity premium1%1 %
Equity securities29 41 Market comparable securitiesLiquidity premium4%4%
EBITDA Multiple
7.4x-11.6x (8.8x)
7.4x-13.3x (9.9x)
Short-term investments1 — Market comparable securitiesLiquidity premium1%— 
EBITDA Multiple
8.0x-11.0x (8.6x)
— 
Funds withheld at interest – embedded derivatives13 26 Total return swapMortality
0-100%  (4%)
0-100%  (4%)
.Lapse
0-35%  (18%)
0-35%  (17%)
Withdrawal
0-10%  (5%)
0-10%  (5%)
CVA
0-5%  (0%)
0-5%  (0%)
Crediting rate
1-8%  (2%)
1-8%  (2%)
Reinsurance ceded receivables and other – embedded derivatives94 — Discounted cash flowMortality
0-100%  (5%)
— 
Lapse
0-35%  (4%)
— 
Withdrawal
0-10%  (0%)
— 
Own Credit
0-5%  (0%)
— 
Crediting rate
1-8%  (0%)
— 
Other assets – derivatives1 3 Credit default swapCredit spread
0-1% (0%)
0-1% (0%)
Probability of default
0-6% (1%)
0-7% (1%)
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives404 470 Discounted cash flowMortality
0-100%  (4%)
0-100% (3%)
Lapse
0-35%  (7%)
0-35% (16%)
Withdrawal
0-10%  (1%)
0-10% (4%)
Option budget projection
1-8%  (2%)
1-8% (2%)
Other liabilities – derivatives1 3 Credit default swapCredit spread
0-1% (0%)
0-1% (0%)
Probability of default
0-6% (1%)
0-7% (1%)
Changes in Level 3 Assets and Liabilities
Assets and liabilities transferred into Level 3 are due to a lack of observable market transactions and price information. Transfers out of Level 3 are primarily the result of the Company obtaining observable pricing information or a third-party pricing quotation that appropriately reflects the fair value of those assets and liabilities. The Company had Level 3 other swap assets and liabilities that on a gross and net basis were not material for the three and nine months ended September 30, 2026.
For further information on the Company’s valuation processes, see Note 13 – “Fair Value of Assets and Liabilities” in the Notes to Consolidated Financial Statements included in the 2025 Annual Report.
The reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows (dollars in millions):
For the three months ended September 30, 2026:
Fixed maturity securities available-for-saleReal estate joint ventures – fair value
Funds 
withheld at interest – embedded derivatives, net (1)
Funds 
withheld at interest
Interest-sensitive contracts – embedded derivatives, net (2)
CorporateForeign govtStructured securitiesU.S. and local govtEquity securitiesShort-term investments
Fair value, beginning of period$10,558 $129 $3,473 $3 $94 $43 $29 $(28)$61 $(434)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income4 — — — — — — — — — 
Investment related gains (losses), net(55)— (3)— (5)— — 104 — — 
Interest credited— — — — — — — — — 20 
Included in other comprehensive income (loss)(248)(4)(68)— — — 1 — — — 
Purchases (3)
731 — 936 — 4 20 7 — 2 84 
Sales (3)
(368)— (16)— (1)— — — — — 
Settlements (3)
(274)— (163)— — — (1)— (3)20 
Transfers into Level 316 — 30 — — — — — — — 
Transfers out of Level 3— — — — — — (16)— — — 
Fair value, end of period$10,364 $125 $4,189 $3 $92 $63 $20 $76 $60 $(310)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Net investment income$3 $— $— $— $— $— $— $— $(3)$— 
Investment related gains (losses), net(57)— — — (5)— — 104 — — 
Interest credited— — — — — — — — — 1 
Included in other comprehensive income (loss)(245)(4)(69)— — — 1 — — — 
(1)Funds withheld at interest – embedded derivative assets and liabilities are presented net for purposes of the rollforward.
(2)Embedded derivatives – interest-sensitive contracts assets and liabilities are presented net for purposes of the rollforward.
(3)The amount reported within purchases, sales and settlements is the purchase price (for purchases) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased or sold/settled. Items purchased and sold/settled in the same period are excluded from the rollforward. The Company had no issuances during the period.
For the nine months ended September 30, 2026:
Fixed maturity securities available-for-saleReal estate joint ventures – fair value
Funds 
withheld at interest –embedded derivatives, net (1)
Funds 
withheld at interest
Interest-sensitive contracts – embedded derivatives, net (2)
CorporateForeign govtStructured securitiesU.S. and local govtEquity securitiesShort-term investments
Fair value, beginning of period$10,027 $120 $3,601 $4 $98 $— $33 $(69)$61 $(470)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income11 — (1)— — — — — 2 — 
Investment related gains (losses), net(118)— (3)— (18)— — 145 — — 
Interest credited— — — — — — — — — (29)
Included in other comprehensive income (loss)(375)(11)(127)— — — — — (1)— 
Purchases (3)
2,371 16 2,200 — 14 63 30 — 3 29 
Sales (3)
(843)— (82)— (2)— (2)— — — 
Settlements (3)
(697)— (1,338)(1)— — (19)— (5)160 
Transfers into Level 322 — 43 — — — — — — — 
Transfers out of Level 3(34)— (104)— — — (22)— — — 
Fair value, end of period$10,364 $125 $4,189 $3 $92 $63 $20 $76 $60 $(310)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Net investment income$9 $— $(1)$— $— $— $— $— $(4)$— 
Investment related gains (losses), net(122)— — — (18)— — 145 — — 
Interest credited— — — — — — — — — (189)
Included in other comprehensive income (loss)(369)(11)(134)— — — 1 — (1)— 
(1)Funds withheld at interest – embedded derivative assets and liabilities are presented net for purposes of the rollforward.
(2)Embedded derivatives – interest-sensitive contracts assets and liabilities are presented net for purposes of the rollforward.
(3)The amount reported within purchases, sales and settlements is the purchase price (for purchases) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased or sold/settled. Items purchased and sold/settled in the same period are excluded from the rollforward. The Company had no issuances during the period.
For the three months ended September 30, 2025:
Fixed maturity securities available-for-saleShort-term investmentsDerivatives, net
Funds 
withheld at interest –embedded derivatives, net (1)
Funds 
withheld at interest
Interest-sensitive contracts – embedded derivatives, net (2)
CorporateForeign govtStructured securitiesU.S. and local govtEquity securities
Fair value, beginning of period$8,912 $32 $2,261 $4 $91 $9 $— $(63)$60 $(354)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income3 — 1 — — — — — 1 — 
Investment related gains (losses), net(17)— 6 — 1 — 1 (33)— — 
Interest credited— — — — — — — — — (99)
Included in other comprehensive income (loss)3 3 (7)— — — — — (2)— 
Purchases (3)
1,156 92 986 — 2 17 — — — — 
Sales (3)
(87)— (1)— — — — — — — 
Settlements (3)
(253)— (320)— — — — — — 15 
Transfers into Level 320 — — — — — — — — — 
Transfers out of Level 3— — — — — (1)— — — — 
Fair value, end of period$9,737 $127 $2,926 $4 $94 $25 $1 $(96)$59 $(438)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Net investment income$2 $— $1 $— $— $— $— $— $— $— 
Investment related gains (losses), net(17)— — — 1 — (1)(33)— — 
Interest credited— — — — — — — — — (115)
Included in other comprehensive income (loss)7 3 (4)— — — — — (1)— 
(1)Funds withheld at interest – embedded derivative assets and liabilities are presented net for purposes of the rollforward.
(2)Embedded derivatives – interest-sensitive contracts assets and liabilities are presented net for purposes of the rollforward.
(3)The amount reported within purchases, sales and settlements is the purchase price (for purchases) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased or sold/settled. Items purchased and sold/settled in the same period are excluded from the rollforward. The Company had no issuances during the period.
For the nine months ended September 30, 2025:
Fixed maturity securities available-for-saleShort-term investmentsDerivatives, net
Funds 
withheld at interest –embedded derivatives, net (1)
Funds 
withheld at interest
Interest-sensitive contracts – embedded derivatives, net (2)
CorporateForeign govtStructured securitiesU.S. and local govtEquity securities
Fair value, beginning of period$6,854 $30 $1,799 $5 $88 $11 $— $(55)$56 $(435)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income10 — 3 — — — — — — — 
Investment related gains (losses), net(48)— 6 — 5 — 1 (41)— — 
Interest credited— — — — — — — — — (67)
Included in other comprehensive income (loss)102 5 42 — — — — — 4 — 
Purchases (3)
3,559 92 1,566 — 2 24 — — 1 11 
Sales (3)
(178)— (11)— (1)— — — — — 
Settlements (3)
(575)— (485)(1)— (7)— — (2)53 
Transfers into Level 322 — 20 — — — — — — — 
Transfers out of Level 3(9)— (14)— — (3)— — — — 
Fair value, end of period$9,737 $127 $2,926 $4 $94 $25 $1 $(96)$59 $(438)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Net investment income$8 $— $2 $— $— $— $— $— $(2)$— 
Investment related gains (losses), net(49)— — — 6 — (1)(41)— — 
Interest credited— — — — — — — — — (121)
Included in other comprehensive income (loss)108 5 46 — — — — — 4 — 
(1)Funds withheld at interest – embedded derivative assets and liabilities are presented net for purposes of the rollforward.
(2)Embedded derivatives – interest-sensitive contracts assets and liabilities are presented net for purposes of the rollforward.
(3)The amount reported within purchases, sales and settlements is the purchase price (for purchases) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased or sold/settled. Items purchased and sold/settled in the same period are excluded from the rollforward. The Company had no issuances during the period.
Nonrecurring Fair Value Measurements
The Company has certain assets subject to measurement at fair value on a nonrecurring basis in periods subsequent to their initial recognition if they are determined to be impaired. The following tables present information for assets measured at an estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (dollars in millions). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3). For the three and nine months ended September 30, 2025, the Company did not have any material assets that were measured at fair value on a nonrecurring basis due to impairment.
Carrying Value After Measurement
At September 30, 2026
At December 31, 2025
Mortgage loans$55 $21 
Limited partnerships and real estate joint ventures50 46 
Investment Related Gains (Losses), Net
Three months ended September 30, 2026
Nine months ended September 30, 2026
Mortgage loans$(23)$(24)
Limited partnerships and real estate joint ventures(23)(35)
Fair Value of Financial Instruments Carried at Other Than Fair Value
The following table presents the carrying values and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis, as of September 30, 2026 and December 31, 2025 (dollars in millions). For additional information regarding the methods and significant assumptions used by the Company to estimate these fair values, see Note 13 – “Fair Value of Assets and Liabilities” in the Notes to Consolidated Financial Statements included in the 2025 Annual Report. This table excludes any payables or receivables for collateral under repurchase/reverse repurchase agreements and other transactions. The estimated fair value of the excluded amounts approximates carrying value as they equal the amount of cash collateral received/paid.
September 30, 2026:
Carrying 
Value (1)
Estimated 
Fair Value		Fair Value Measurement Using:
Level 1Level 2Level 3
Assets:
Mortgage loans$12,162 $11,660 $— $— $11,660 
Policy loans3,372 3,372 — 3,372 — 
Funds withheld at interest8,112 7,687 — — 7,687 
Limited partnerships – cost method68 100 — — 100 
Cash and cash equivalents1,974 1,974 1,974 — — 
Short-term investments52 52 52 — — 
Other invested assets1,363 1,059 — 64 995 
Accrued investment income1,494 1,494 — 1,494 — 
Other asset1,048 997 — — 997 
Liabilities:
Interest-sensitive contract liabilities (2)
$35,762 $35,135 $— $— $35,135 
Funds withheld at interest10,546 10,340 — — 10,340 
Long-term debt5,310 5,037 — — 5,037 
December 31, 2025:
Assets:
Mortgage loans$11,104 $11,044 $— $— $11,044 
Policy loans3,541 3,541 — 3,541 — 
Funds withheld at interest8,216 7,970 — — 7,970 
Limited partnerships – cost method72 98 — — 98 
Cash and cash equivalents1,708 1,708 1,708 — — 
Short-term investments91 91 91 — — 
Other invested assets1,271 1,051 2 68 981 
Accrued investment income1,296 1,296 — 1,296 — 
Other asset1,020 1,071 — — 1,071 
Liabilities:
Interest-sensitive contract liabilities (2)
$31,056 $31,013 $— $— $31,013 
Funds withheld at interest6,863 6,681 — — 6,681 
Long-term debt5,710 5,638 — — 5,638 
(1)Carrying values presented herein may differ from those in the Company’s condensed consolidated balance sheets because certain items within the respective financial statement captions may be measured at fair value on a recurring basis.
(2)Carrying values and estimated fair values presented herein include a reinsurance recoverable of $1.7 billion and $1.9 billion as of September 30, 2026 and December 31, 2025, respectively