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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Schedule of Carrying Amount and Fair Value of Financial Instruments

The carrying amount and fair value of financial instruments are shown below:

						June 30, 2025												December 31, 2024
AS OF US$ MILLIONS						Carrying Amount						Fair Value						Carrying Amount						Fair Value
Financial assets
Available-for-sale fixed maturity securities						$	56,222					$	56,222					$	53,802					$	53,802
Equity securities						7,530						7,530						3,854						3,854
Mortgage loans on real estate, net of allowance						11,469						11,392						12,426						12,240
Private loans, net of allowance						6,752						6,767						5,204						5,320
Real estate partnerships(1)						2,295						2,295						1,487						1,487
Policy loans						257						257						276						276
Short-term investments(2)						4,454						4,454						4,400						4,400
Other invested assets:
Derivative assets						1,160						1,160						1,361						1,361
Separately managed accounts						61						61						71						71
Other(3)(4)						846						846						956						958
Cash and cash equivalents						13,091						13,091						12,243						12,243
Reinsurance funds withheld – embedded derivative						6						6						18						18
Other assets – market risk benefit assets						1,034						1,034						856						856
Separate account assets(5)						1,322						1,322						1,343						1,343
Total financial assets						$	106,499					$	106,437					$	98,297					$	98,229
Financial liabilities
Policyholders’ account balances – embedded derivative						$	6,257					$	6,257					$	1,123					$	1,123
Market risk benefits						4,227						4,227						3,655						3,655
Notes payable						200						200						189						189
Corporate and subsidiary borrowings						4,511						4,566						4,351						4,371
Funds withheld for reinsurance liabilities – embedded derivative						63						63						37						37
Other liabilities – derivative liabilities						169						169						27						27
Separate account liabilities(5)						1,322						1,322						1,343						1,343
Total financial liabilities						$	16,749					$	16,804					$	10,725					$	10,745

__________________________

(1)Represents financial assets that are fair valued in accordance with ASC 825.

(2)Balance includes $400 million of amounts loaned under reverse repurchase agreements as of June 30, 2025 (December 31, 2024 – $400 million). The fair value of the collateral received under these agreements was $1.0 billion as of June 30, 2025 (December 31, 2024 – $783 million).

(3)Balance includes $649 million of other invested assets not subject to the fair value hierarchy as of June 30, 2025 (December 31, 2024 – $637 million).

(4)Balance excludes $1.0 billion of derivative collaterals that are recorded as an offset to “Other invested assets” in the statements of financial position and are also not included in the fair value hierarchy as of June 30, 2025 (December 31, 2024 – $1.3 billion). Refer to “Derivative Exposure” section of Note 9 for details.

(5)Balance include $30 million of assets, and corresponding liabilities, that are not subject to the fair value hierarchy as of June 30, 2025 (December 31, 2024 – $31 million).

Schedule of Fair Value Hierarchy Measurements of Financial Instruments

The fair value hierarchy measurements of the assets and liabilities recorded at fair value are shown below:

AS OF JUN. 30, 2025 US$ MILLIONS						Total Fair Value						Level 1						Level 2						Level 3
Financial assets
Available-for-sale fixed maturity securities:
U.S. treasury and government						$	365					$	302					$	63					$	—
U.S. state and municipal						3,182						—						3,127						55
Foreign governments						1,889						—						1,889						—
Corporate debt securities						39,493						—						38,701						792
Residential mortgage-backed securities						1,196						—						1,177						19
Commercial mortgage-backed securities						3,877						—						3,839						38
Collateralized debt securities						6,220						—						2,867						3,353
Total available-for-sale fixed maturity securities						56,222						302						51,663						4,257
Equity securities:
Common stock						7,049						6,641						2						406
Preferred stock						481						20						23						438
Total equity securities						7,530						6,661						25						844
Investment real estate(1)						1,271						—						—						1,271
Real estate partnerships(1)(2)						2,329						—						—						2,329
Investment funds(1)(3)						141						—						—						141
Short-term investments						4,454						2,912						1,060						482
Other invested assets:
Derivative assets						1,160						—						972						188
Separately managed accounts						61						—						—						61
Other(2)						197						—						4						193
Cash and cash equivalents						13,091						13,091						—						—
Reinsurance funds withheld – embedded derivative						6						—						—						6
Premiums due and other receivables – derivative asset						22						—						22						—
Other assets – market risk benefit assets						1,034						—						—						1,034
Separate account assets						1,292						976						316						—
Total financial assets						$	88,810					$	23,942					$	54,062					$	10,806
Financial liabilities
Policyholders’ account balances – embedded derivative						$	6,257					$	—					$	—					$	6,257
Market risk benefits						4,227						—						—						4,227
Funds withheld for reinsurance liabilities – embedded derivative						63						—						—						63
Other liabilities – derivative liabilities						169						—						169						—
Separate account liabilities						1,292						976						316						—
Total financial liabilities						$	12,008					$	976					$	485					$	10,547

__________________________

(1)Balances include financial assets that are fair valued as a result of consolidation of investment company VIE in accordance with ASC 946.

(2)$2.3 billion of real estate partnerships and $197 million of other invested assets are financial assets that are fair valued in accordance with ASC 825.

(3)Balance for investment funds excludes those measured at estimated fair value using NAV per share as a practical expedient. As of June 30, 2025, the estimated fair values of investment funds measured at NAV as a practical expedient were $375 million.

AS OF DEC. 31, 2024 US$ MILLIONS						Total Fair Value						Level 1						Level 2						Level 3
Financial assets
Available-for-sale fixed maturity securities:
U.S. treasury and government						$	369					$	310					$	59					$	—
U.S. state and municipal						3,289						—						3,233						56
Foreign governments						2,042						—						2,042						—
Corporate debt securities						37,380						—						34,696						2,684
Residential mortgage-backed securities						1,310						—						1,291						19
Commercial mortgage-backed securities						3,320						—						3,245						75
Collateralized debt securities						6,092						—						3,447						2,645
Total available-for-sale fixed maturity securities						53,802						310						48,013						5,479
Equity securities:
Common stock						3,412						2,858						2						552
Preferred stock						438						36						12						390
Private equity and other						4						—						—						4
Total equity securities						3,854						2,894						14						946
Investment real estate(1)						1,283						—						—						1,283
Real estate partnerships(1)(2)						1,529						—						—						1,529
Investment funds(1)(3)						124						—						—						124
Short-term investments						4,400						3,213						834						353
Other invested assets:
Derivative assets						1,361						—						1,138						223
Separately managed accounts						71						—						—						71
Other(2)						319						—						11						308
Cash and cash equivalents						12,243						12,243						—						—
Reinsurance funds withheld – embedded derivative						18						—						—						18
Premiums due and other receivables – derivative asset						22						—						22						—
Other assets – market risk benefit assets						856						—						—						856
Separate account assets						1,312						258						1,054						—
Total financial assets						$	81,194					$	18,918					$	51,086					$	11,190
Financial liabilities
Policyholders’ account balances – embedded derivative						$	1,123					$	—					$	—					$	1,123
Market risk benefits						3,655						—						—						3,655
Funds withheld for reinsurance liabilities – embedded derivative						37						—						—						37
Other liabilities – derivative liabilities						27						—						27						—
Separate account liabilities						1,312						258						1,054						—
Total financial liabilities						$	6,154					$	258					$	1,081					$	4,815

__________________________

(1)Balances include financial assets that are fair valued as a result of consolidation of investment company VIE in accordance with ASC 946.

(2)$1.5 billion of real estate partnerships and $171 million of other invested assets are financial assets that are fair valued in accordance with ASC 825.

(3)Balance for investment funds excludes those measured at estimated fair value using NAV per share as a practical expedient. As of December 31, 2024, the estimated fair values of investment funds measured at NAV as a practical expedient were $380 million.

For financial assets and financial liabilities measured at fair value on a recurring basis using Level 3 inputs during the periods, reconciliations of the beginning and ending balances are shown below:

						Assets																		Liabilities
FOR THE PERIOD ENDED JUN. 30, 2025 US$ MILLIONS						Invested assets(1)						Derivative assets						Reinsurance funds withheld – embedded derivative						Policyholders’ account balances – embedded derivative						Funds withheld for reinsurance liabilities – embedded derivative
Balance as of January 1, 2025						$	10,093					$	223					$	18					$	(1,123)					$	(37)
Fair value changes in net income						(32)						(38)						(10)						268						(18)
Fair value changes in other comprehensive income						20						—						—						—						—
Purchases						172						33						—						—						—
Sales						(45)						—						—						—						—
Settlements or maturities						(13)						(69)						—						—						—
Premiums less benefits						—						—						—						(93)						—
Transfers into Level 3						681						—						—						—						—
Transfers out of Level 3						(67)						—						—						—						—
Balance as of March 31, 2025						$	10,809					$	149					$	8					$	(948)					$	(55)
Fair value changes in net income						26						66						(2)						(242)						(8)
Fair value changes in other comprehensive income						(11)						—						—						—						—
Purchases						1,214						34						—						—						—
Sales						(1,537)						—						—						—						—
Settlements or maturities						(138)						(61)						—						—						—
Premiums less benefits						—						—						—						(1)						—
Transfers into Level 3						239						—						—						(5,066)						—
Transfers out of Level 3						(1,024)						—						—						—						—
Balance as of June 30, 2025						$	9,578					$	188					$	6					$	(6,257)					$	(63)

						Assets																		Liabilities
FOR THE PERIOD ENDED JUN. 30, 2024 US$ MILLIONS						Invested assets(1)						Derivative assets						Reinsurance funds withheld – embedded derivative						Policyholders’ account balances – embedded derivative						Funds withheld for reinsurance liabilities – embedded derivative
Balance as of January 1, 2024						$	4,447					$	227					$	(46)					$	(872)					$	—
Fair value changes in net income						(5)						57						135						(38)						1
Fair value changes in other comprehensive income						8						—						—						—						—
Purchases						2,187						35						—						—						—
Sales						(2,056)						—						—						—						—
Settlements or maturities						(6)						(62)						—						—						—
Premiums less benefits						—						—						—						6						—
Balance as of March 31, 2024						$	4,575					$	257					$	89					$	(904)					$	1
Acquisition from business combination						4,288						—						—						—						—
Derecognition(2)						—						—						(196)						—						—
Fair value changes in net income						162						24						141						(287)						(35)
Fair value changes in other comprehensive income						19						—						—						—						—
Purchases						1,234						39						—						—						—
Sales						(1,260)						—						—						—						—
Settlements or maturities						(3)						(66)						—						30						—
Premiums less benefits						—						—						—						(35)						—
Transfers into Level 3						64						—						—						—						—
Transfers out of Level 3						(58)						—						—						—						—
Balance as of June 30, 2024						$	9,021					$	254					$	34					$	(1,196)					$	(34)

__________________________

(1)Include separately managed accounts.

(2)See Note 16 for the details of effective settlement of a reinsurance arrangement, resulting in the derecognition of reinsurance funds withheld.

Schedule of Carrying Value and Estimated Fair Value of Financial Instruments Not Recorded at Fair Value on a Recurring Basis

The carrying amount and estimated fair value of financial instruments not recorded at fair value are shown below. The table below excludes accrued investment income, which is recorded at amortized cost in the statements of financial position, as their carrying amounts approximate the fair values due to their short-term nature.

AS OF JUN. 30, 2025 US$ MILLIONS						Carrying Amount						Fair Value						FV Hierarchy Level
																		Level 1						Level 2						Level 3
Financial assets
Mortgage loans on real estate, net of allowance						$	11,469					$	11,392					$	—					$	—					$	11,392
Private loans, net of allowance						6,752						6,767						—						100						6,667
Policy loans						257						257						—						1						256
Deposit assets						5,821						5,703						—						—						5,703
Other invested assets, excluding derivatives and separately managed accounts						649						649						—						414						235
Total financial assets						$	24,948					$	24,768
Financial liabilities
Policyholders’ account balances – investment contracts, excluding embedded derivative						$	78,057					$	78,040					—						—						78,040
Corporate and subsidiary borrowings						4,511						4,566						—						—						4,566
Notes payable						200						200						—						—						200
Total financial liabilities						$	82,768					$	82,806

AS OF DEC. 31, 2024 US$ MILLIONS						Carrying Amount						Fair Value						FV Hierarchy Level
																		Level 1						Level 2						Level 3
Financial assets
Mortgage loans on real estate, net of allowance						$	12,426					$	12,240					$	—					$	—					$	12,240
Private loans, net of allowance						5,204						5,320						—						153						5,167
Policy loans						276						276						—						—						276
Deposit assets						6,165						6,026						—						—						6,026
Other invested assets, excluding derivatives and separately managed accounts						637						639						—						408						231
Total financial assets						$	24,708					$	24,501
Financial liabilities
Policyholders’ account balances – investment contracts, excluding embedded derivative						$	79,383					$	79,383					—						—						79,383
Corporate and subsidiary borrowings						4,351						4,371						—						—						4,371
Notes payable						189						189						—						—						189
Total financial liabilities						$	83,923					$	83,943

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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Tabular disclosure of information about fair value of asset and liability not measured at fair value.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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