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Summary of Significant Accounting Policies | 12 Months Ended
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Dec. 31, 2025
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies |
Note 2 | Summary of Significant Accounting Policies
Investments Fixed income securities include bonds, asset-backed securities (“ABS”) and mortgage-backed securities (“MBS”). Fixed income securities, which may be sold prior to their contractual maturity, are designated as available-for-sale (“AFS”) and are carried at fair value. The difference between amortized cost, net of credit loss allowances (“amortized cost, net”) and fair value, net of deferred income taxes, is reflected as a component of accumulated other comprehensive income (“AOCI”). The Company excludes accrued interest receivable from the amortized cost basis of its AFS fixed income securities. Cash received from calls and make-whole payments is reflected as a component of proceeds from sales and cash received from maturities and pay-downs is reflected as a component of investment collections within the Consolidated Statements of Cash Flows. Equity securities primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust equity investments. Certain exchange traded and mutual funds have fixed income securities as their underlying investments. Equity securities are carried at fair value. Equity securities without readily determinable or estimable fair values are measured using the measurement alternative, which is cost less impairment, if any, and adjustments resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer. Equity securities where the Company has significant influence are accounted for in accordance with the equity method of accounting ("EMA"). Mortgage loans and bank loans, included in other investments, are carried at amortized cost, net, which represent the amount expected to be collected. The Company excludes accrued interest receivable from the amortized cost basis of its mortgage and bank loans. Credit loss allowances are estimates of expected credit losses, established for loans upon origination or purchase, and are established considering all relevant information available, including past events, current conditions, and reasonable and supportable forecasts over the life of the loans. Loans are evaluated on a pooled basis when they share similar risk characteristics; otherwise, they are evaluated individually. Investments in limited partnership interests are primarily accounted for in accordance with the EMA and include interests in private equity funds, real estate funds and other funds. Investments in limited partnership interests purchased prior to January 1, 2018, where the Company’s interest is so minor that it exercises virtually no influence over operating and financial policies, are accounted for at fair value primarily utilizing the net asset value (“NAV”) as a practical expedient to determine fair value. Short-term investments, including money market funds, commercial paper, U.S. Treasury bills, fixed income securities with a contractual maturity of one year or less at time of acquisition and other short-term investments, are carried at fair value. Real estate, included in other investments, is carried at cost less accumulated depreciation. Investment income primarily consists of interest, dividends, income from limited partnership interests and rental income from real estate. Interest is recognized on an accrual basis using the effective yield method and dividends are recorded at the ex-dividend date. Interest income for ABS and MBS is determined considering estimated pay-downs, including prepayments, obtained from third-party data sources and internal estimates. Actual prepayment experience is periodically reviewed, and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. For ABS and MBS of high credit quality with fixed interest rates, the effective yield is recalculated on a retrospective basis. For all others, the effective yield is generally recalculated on a prospective basis. Accrual of income is suspended for fixed income securities when the timing and amount of cash flows expected to be received is not probable. Accrual of income is suspended for mortgage loans and bank loans that are in default or when full and timely collection of principal and interest payments is not probable. Accrued income receivable is monitored for recoverability, and when not expected to be collected, is written off within net investment income. Cash receipts for investments on nonaccrual status are generally recorded as a reduction of amortized cost. Income from limited partnership interests carried at fair value is recognized based upon the changes in fair value of the investee’s equity primarily determined using NAV. Income from EMA limited partnership interests is recognized based on the Company’s share of the partnerships’ earnings. Income from EMA limited partnership interests is generally recognized on a three month delay due to the availability of the related financial statements from investees. Net gains and losses on investments and derivatives include gains and losses on investment sales, changes in the credit loss allowances related to fixed income securities, mortgage loans and bank loans, impairments, valuation changes of equity investments, including equity securities and certain limited partnerships where the underlying assets are predominately public equity securities, and periodic changes in fair value and settlements of certain derivatives, including hedge ineffectiveness. Net gains and losses on sales of investments and derivatives are determined on a specific identification basis and are net of credit losses already recognized through an allowance. Derivative and embedded derivative financial instruments Derivative financial instruments include interest rate swaps, credit default swaps, futures (interest rate and equity), options (including swaptions), warrants and stock rights, foreign currency forwards and total return swaps. All derivatives are accounted for on a fair value basis and reported as other investments, other assets and other liabilities and accrued expenses. Embedded derivative instruments subject to bifurcation are also accounted for on a fair value basis and are reported together with the host contract. Cash flows from other derivatives are reported in cash flows from investing activities within the Consolidated Statements of Cash Flows. The income statement impacts for derivatives, including fair value gains and losses and accrued periodic settlements, are reported either in net gains and losses on investments and derivatives or in a single line item together with the results of the associated asset or liability for which risks are being managed. Securities loaned The Company’s business activities include securities lending transactions, which are used primarily to generate net investment income. The proceeds received in conjunction with securities lending transactions can be reinvested in short-term investments or fixed income securities. These transactions are short-term in nature, usually 30 days or less. The Company receives cash collateral for securities loaned in an amount generally equal to 102% and 105% of the fair value of domestic and foreign securities, respectively, and records the related obligations to return the collateral in other liabilities and accrued expenses. The carrying value of these obligations approximates fair value because of their relatively short-term nature. The Company monitors the market value of securities loaned on a daily basis and obtains additional collateral as necessary under the terms of the agreements to mitigate counterparty credit risk. The Company maintains the right and ability to repossess the securities loaned on short notice. Recognition of premium revenues and related benefits Property and casualty insurance premiums include premiums from personal lines policies, protection plans, vehicle service contracts and insurance products and roadside assistance. Personal lines insurance premiums are deferred and earned on a pro-rata basis over the terms of the policies, typically periods of six or twelve months. Revenues related to protection plans, vehicle service contracts and insurance products and roadside assistance are deferred and earned over the term of the contract in a manner that recognizes revenue as obligations under the contracts are fulfilled. Revenues from these products are classified as premiums as the products are backed by insurance. Premiums from protection plans, vehicle service contracts and insurance products are recognized using a cost-based incurrence method over the term of the contracts, which is generally one to five years. The portion of premiums written applicable to the unexpired terms of the policies is recorded as unearned premiums.
Unearned premiums
|  | December 31,
($ in millions) |  | 2025 |  | 2024
Allstate Protection |  | $ | 23,464 |  |  | $ | 21,508 |
Protection Services |  | 5,605 |  |  | 5,385 |
Allstate Health and Benefits |  | — |  |  | 2 |
All other |  | 11 |  |  | 14 |
Total |  | $ | 29,080 |  |  | $ | 26,909 |
For the years ended December 31, 2025 and 2024, the Company recognized $1.97 billion and $1.84 billion of property and casualty insurance premiums for Protection Services, respectively, that were included in the unearned premium balance as of December 31, 2024 and 2023, respectively. The Company expects to recognize approximately $2.06 billion, $1.52 billion and $2.03 billion of the December 31, 2025 unearned premium balance for Protection Services in 2026, 2027 and thereafter, respectively. Accident and health insurance premiums include premiums from accident and health insurance products that are primarily expected to remain in force for an extended period and are classified as long-duration contracts. Premiums from these products are recognized as revenue when due from policyholders, net of any credit loss allowance for uncollectible premiums. Benefits are reflected in accident, health and other policy benefits and recognized as incurred. Premium installment receivables represent premiums written and not yet collected, net of the credit loss allowance for uncollectible premiums. These receivables are primarily outstanding for one year or less. The Company utilizes historical internal data including aging analyses to estimate allowances under current business conditions and for the forecast period. The Company regularly evaluates and updates the data and adjusts its allowance as appropriate.
Rollforward of credit loss allowance for premium installment receivables
|  | For the years ended December 31,
($ in millions) |  | 2025 |  | 2024
Beginning balance |  | $ | (187) |  |  | $ | (138) |
Increase in the provision for credit losses |  | (487) |  |  | (414) |
Write-off of uncollectible premium installment receivable amounts |  | 485 |  |  | 365 |
Ending balance |  | $ | (189) |  |  | $ | (187) |
Other revenue Other revenue represents fees collected from policyholders relating to premium installment payments, fees for servicing assigned risk business collected from other insurance carriers, commissions on sales of non-proprietary products, sales of identity protection services, fee-based services and other revenue transactions. Other revenue is recognized when performance obligations are fulfilled. The Company collects service fees in the form of commissions by selling accident and health policies issued by third-party insurance companies and recognizes commission revenues equal to the estimated lifetime value of the revenues at the time when the policy is sold, net of an allowance for estimated policy cancellations, as no further performance obligations exist. The allowance for estimated third-party cancellations is periodically evaluated and adjusted as necessary. Deferred policy acquisition costs For personal lines, deferred policy acquisition costs (“DAC”) are related directly to the successful acquisition of new or renewal insurance contracts and are deferred and recognized as an expense over the life of the related contracts. These costs are principally agent, employee and broker remuneration, and premium taxes. DAC is amortized into income as premiums are earned pro rata over the period of the policy and is periodically reviewed for recoverability and adjusted if necessary. Future investment income is considered in determining the recoverability of DAC. For protection plans and vehicle service contracts, DAC is directly related to costs to obtain customer contracts when they are incremental and directly attributable to securing the contract. These costs include sales commissions and other direct incentives. DAC is amortized systematically over the expected benefit period, consistent with the pattern of service delivery and is periodically reviewed for recoverability. If the expected future economic benefits associated with the related contracts are no longer sufficient to recover the carrying amount, the asset is impaired and written down to its recoverable amount. DAC amortization is included in amortization of deferred policy acquisition costs on the Consolidated Statements of Operations. All other acquisition costs are expensed as incurred and included in operating costs and expenses.
Rollforward of deferred policy acquisition costs
|  | For the years ended December 31,
($ in millions) |  | 2025 |  | 2024 |  | 2023
Beginning balance |  | $ | 5,773 |  |  | $ | 5,940 |  |  | $ | 5,442 |
Acquisition costs deferred |  | 8,784 |  |  | 8,393 |  |  | 7,776 |
Amortization charged to income |  | (8,384) |  |  | (8,022) |  |  | (7,246) |
Experience adjustment |  | (5) |  |  | (17) |  |  | (32) |
Reclassified to assets held for sale (1) |  | (5) |  |  | (521) |  |  | — |
Ending balance |  | $ | 6,163 |  |  | $ | 5,773 |  |  | $ | 5,940 |
Allstate Protection |  | $ | 2,803 |  |  | $ | 2,548 |  |  | $ | 2,378 |
Protection Services |  | 3,274 |  |  | 3,161 |  |  | 3,022 |
Allstate Health and Benefits |  | — |  |  | 1 |  |  | 497 |
All other |  | 86 |  |  | 63 |  |  | 43 |
Total |  | $ | 6,163 |  |  | $ | 5,773 |  |  | $ | 5,940 |
(1)Sold on April 1, 2025 as part of the employer voluntary benefits disposition. Reinsurance and indemnification Reinsurance In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance. The Company has also used reinsurance to affect the disposition of certain blocks of business. Reinsurance does not extinguish the Company’s primary liability under the policies written. Therefore, in addition to establishing allowances as appropriate after evaluating reinsurers’ activities related to claims settlement practices and commutations, the Company evaluates reinsurer counterparty credit risk and records reinsurance recoverables net of credit loss allowances. The Company assesses counterparty credit risk for individual reinsurers separately when more relevant or on a pooled basis when shared risk characteristics exist. The evaluation considers the credit quality of the reinsurer and the period over which the recoverable balances are expected to be collected. The Company considers factors including past events, current conditions and reasonable and supportable forecasts in the development of the estimate of credit loss allowances. Allowances for reinsurance recoverables are established primarily through risk-based evaluations. The recoverable evaluation considers the credit rating of the reinsurer, the period over which the reinsurance recoverable balances are expected to be recovered and other relevant factors including historical experience of reinsurer failures. Reinsurers in liquidation or in default status are evaluated individually using the Company’s historical liquidation recovery assumptions and any other relevant information available including the most recent public information related to the financial condition or liquidation status of the reinsurer. The Company monitors the credit ratings of reinsurer counterparties and evaluates the circumstances surrounding credit rating changes as inputs into its credit loss assessments. Uncollectible reinsurance recoverable balances are written off against the allowances when there is no reasonable expectation of recovery. The changes in the allowances are reported in property and casualty insurance claims and claims expense. Indemnification The Company also participates in various indemnification programs, including industry pools and facilities, which are reimbursement mechanisms that assess participating insurers for expected insured claims, reimburse participating insurers for qualifying paid claims and permit participating insurers to recoup amounts assessed directly from insureds. Indemnification recoverables are backed by the financial resources of the property and casualty insurance company market participants. The design and function of these indemnification programs does not result in the retention of insurance or reinsurance risk by the indemnitee. Based on the Company’s evaluation of these programs on an individual basis, the establishment of credit loss allowances is not warranted at this time. The Company has not experienced any historical credit losses related to its indemnification programs. The Company continues to monitor these programs to determine whether any changes from historical experience have emerged or are expected to emerge or whether there have been any changes in the design or administration of the programs that would require establishment of credit loss allowances. Revenue recognition The amounts reported as reinsurance and indemnification recoverables include amounts paid and due from reinsurers and indemnitors as well as estimates of amounts expected to be recovered from reinsurers and indemnitors on insurance liabilities that have been incurred but not yet paid. Reinsurance and indemnification recoverables on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying contract. Reinsurance and indemnification premiums are generally reflected in income in a manner consistent with the recognition of premiums on the associated contracts. For catastrophe coverage, the cost of reinsurance premiums is recognized ratably over the contract period to the extent coverage remains available. Held for sale A business is classified as held for sale when management having the authority to approve the action commits to a plan to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current fair value and certain other criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. When the proceeds expected to be received from the sale exceed the carrying amount of the business, a gain is recognized when the sale closes. Assets and liabilities related to a business classified as held for sale are segregated in the Consolidated Statements of Financial Position in the period in which the business is classified as held for sale. Goodwill Goodwill represents the excess of amounts paid for acquiring businesses over the fair value of the net assets acquired, less any impairment of goodwill recognized. Goodwill is recognized when acquired and allocated to reporting units based on which unit is expected to benefit from the synergies of the business combination. Goodwill is not amortized but is tested for impairment at least annually. The Company performs its annual goodwill impairment testing during the fourth quarter of each year based upon data as of the close of the third quarter. Goodwill impairment is measured and recognized as the amount by which a reporting unit’s carrying value, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. The Company also reviews goodwill for impairment whenever events or changes in circumstances, such as deteriorating or adverse market conditions, indicate that it is more likely than not that the carrying amount of the reporting unit including goodwill may exceed the fair value of the reporting unit. The goodwill impairment analysis is performed at the reporting unit level. As of December 31, 2025, the Company tests goodwill at its reporting units, Allstate Protection, Protection Services and Individual Health.
Goodwill by reporting unit
|  | December 31,
($ in millions) |  | 2025 |  | 2024
Allstate Protection |  | $ | 1,563 |  |  | $ | 1,563 |
Protection Services |  | 1,511 |  |  | 1,511 |
Allstate Health and Benefits and Individual Health (1) |  | 44 |  |  | 171 |
Total |  | $ | 3,118 |  |  | $ | 3,245 |
(1)Employer voluntary benefits and group health businesses comprising Allstate Health and Benefits were sold in 2025. In conjunction with the dispositions of the employer voluntary benefits (“EVB”) and group health businesses, goodwill that was previously included in the Health and Benefits reporting unit was reallocated to EVB and group health businesses disposed of during 2025 and the retained individual health non-reportable segment using a relative fair value approach. Goodwill impairment tests were performed for the Individual Health reporting unit throughout 2025, which did not result in an impairment. As of December 31, 2025 and 2024, the fair value of the Company’s goodwill reporting units exceeded their carrying values. Intangible assets Intangible assets (reported in other assets) consist of capitalized costs primarily related to acquired distribution and customer relationships, trade names and licenses, technology and other assets. The estimated useful lives of distribution, customer relationships and technology and other intangible assets are generally 5 years, 10 years, and 3 years, respectively. Intangible assets are carried at cost less accumulated amortization.
Intangible assets by type
|  | December 31,
($ in millions) |  | 2025 |  | 2024
Distribution and customer relationships |  | $ | 214 |  |  | $ | 367 |
Trade names and licenses (1) |  | 126 |  |  | 145 |
Technology and other |  | 218 |  |  | 242 |
Total |  | $ | 558 |  |  | $ | 754 |
(1)Includes finite-lived trade names with carrying values of $7 million as of December 31, 2024 that were fully amortized at the end of 2025. Amortization expense is calculated using an accelerated amortization method. Amortization expense on intangible assets was $231 million, $280 million and $329 million in 2025, 2024 and 2023, respectively.
Amortization expense of intangible assets for the next five years and thereafter
($ in millions) |  |  |  |
2026 |  |  |  | $ | 172 |
2027 |  |  |  | 125 |
2028 |  |  |  | 83 |
2029 |  |  |  | 38 |
2030 |  |  |  | 14 |
Total amortization |  |  |  | $ | 432 |
Accumulated amortization of intangible assets was $1.83 billion and $1.66 billion as of December 31, 2025 and 2024, respectively. Trade names and licenses generally are considered to have an indefinite useful life and are reviewed for impairment at least annually or more frequent if circumstances arise that indicate an impairment may have occurred. An impairment is recognized if the carrying amount of the asset exceeds its estimated fair value. Acquisition earn-out payables The fair value of contingent consideration arrangements such as earn-out purchase arrangements at the acquisition date, are included in the purchase price consideration. The recorded purchase price for acquisitions includes an estimate of the fair value of liabilities associated with any potential earn-out provisions. Subsequent changes in these earn-out obligations are recorded in the Consolidated Statements of Operations when incurred or reasonably estimated. Estimates of potential earn-out obligations are typically based upon future earnings of the acquired operations or entities, usually for periods up to five years. As of December 31, 2025, the maximum future contingency payments related to acquisitions totaled $28 million. In addition, the Company provides contingent bonus payments to certain eligible employees of acquired operations or entities based on the same timeframe and future earnings as used in determining the contingent consideration arrangement. Property and equipment Property and equipment is carried at cost less accumulated depreciation. Included in property and equipment are capitalized costs related to computer software licenses and software developed for internal use of $349 million and $398 million, net of accumulated depreciation, as of December 31, 2025 and 2024, respectively. These costs generally consist of certain external and payroll related costs. Property and equipment depreciation is calculated using the straight-line method over the estimated useful lives of the assets, generally 3 to 10 years for equipment, 3 to 5 years for computer software licenses and software developed for internal use and 40 years for real property. Depreciation expense is reported in operating costs and expenses. Accumulated depreciation on property and equipment was $2.34 billion and $2.50 billion as of December 31, 2025 and 2024, respectively. Depreciation expense on property and equipment was $259 million, $316 million and $343 million in 2025, 2024 and 2023, respectively. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Income taxes Income taxes are accounted for using the asset and liability method under which deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of assets and liabilities at the enacted tax rates. A deferred tax asset valuation allowance is established when it is more likely than not such assets will not be realized. The Company recognizes interest expense related to income tax matters in income tax expense and penalties in operating costs and expenses. Reserve for property and casualty insurance claims and claims expense The reserve for property and casualty insurance claims and claims expense is the estimate of amounts necessary to settle all reported and unreported incurred claims for the ultimate cost of insured property and casualty losses, based upon the facts of each case and the Company’s experience with similar cases. Estimated amounts of salvage and subrogation are deducted from the reserve for claims and claims expense. The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process. Reserve estimates are primarily derived using an actuarial estimation process in which historical loss patterns are applied to actual paid losses and reported losses (paid losses plus individual case reserves established by claim adjusters) for an accident or report year to create an estimate of how losses are likely to develop over time. Development factors are calculated quarterly and periodically throughout the year for data elements such as claims reported and settled, paid losses, and paid losses combined with case reserves. When the Company experiences changes in the mix or type of claims or changing claim settlement patterns or data, it applies actuarial judgment in the determination and selection of development factors to develop reserve liabilities. The effects of inflation are implicitly considered in the reserving process as a development factor using historic data incorporated as a reasonable estimate of future inflation. The historical development patterns for these data elements are used as the assumptions to calculate reserve estimates, including the reserves for reported and unreported claims; however, when the Company experiences changes, it may lead to historical development trends being less predictive of future loss development, potentially creating additional reserve variability. Also, anticipated changes in severity for sudden one-time cost level shifts, such as tariffs, are considered as part of the reserving process. Reserve estimates are regularly reviewed and updated, using the most current data and information available. Any resulting reestimates are reflected in current results of operations. Pension and other postretirement remeasurement gains and losses The Company’s policy is to remeasure its pension and postretirement plans on a quarterly basis. Pension and other postretirement gains and losses represent the remeasurement of projected benefit obligations and differences between the expected and actual return on plan assets, which are immediately recognized in earnings and are referred to as pension and other postretirement remeasurement gains and losses on the Consolidated Statements of Operations. The primary factors contributing to pension and postretirement remeasurement gains and losses are:
• Changes in the discount rate used to value pension and postretirement obligations as of the measurement date
• Differences between the expected and the actual return on plan assets
• Changes in demographic assumptions, including mortality and participant experience
• Changes in lump sum interest rates and cash balance interest crediting rates used to value pension obligations as of the measurement date
Differences in actual experience and changes in other assumptions affect the Company’s pension and other postretirement obligations and expenses. Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credits are allocated to the Allstate Protection and Protection Services segments. The pension and other postretirement remeasurement gains and losses are reported in the Corporate segment. Legal contingencies The Company reviews its lawsuits, regulatory inquiries and other legal proceedings on an ongoing basis. The Company establishes accruals for such matters at management’s best estimate, which may include the low end of a range of loss, when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals. The Company does not include potential recoveries in its estimates of reasonably possible or probable losses. Legal fees are expensed as incurred. Equity incentive plans The Company has equity incentive plans under which it grants nonqualified stock options, restricted stock units and performance stock awards (“equity awards”) to certain employees and directors of the Company. The Company measures the fair value of equity awards at the grant date and recognizes the expense over the shorter of the period in which the requisite service is rendered or retirement eligibility is attained. The expense for performance stock awards with no market condition is adjusted each period to reflect the performance factor most likely to be achieved at the end of the performance period. The expense for performance stock awards with a market condition is based on the fair value of the awards at the grant date which incorporates the probability of achieving the market condition. In the event the market condition is not met, any previously recognized expense is not reversed. The Company uses a binomial lattice model to determine the fair value of employee stock options. The Company uses a Monte Carlo simulation model to determine the fair value of performance stock awards with a market condition. Measurement of credit losses The Company carries an allowance for expected credit losses for all financial assets measured at amortized cost on the Consolidated Statements of Financial Position. The Company considers past events, current conditions and reasonable and supportable forecasts in estimating an allowance for credit losses. The Company also carries a credit loss allowance for fixed income securities where applicable and, when amortized cost is reported, it is net of credit loss allowances. For additional information, refer to the Investments, Recognition of premium revenues and related benefits or Reinsurance and indemnification topics of this section. The Company also estimated a credit loss allowance for commitments to fund its line of credit with Adirondack Insurance Exchange (“Adirondack”), mortgage loans and bank loans unless they are unconditionally cancellable by the Company. For further details on Adirondack and mortgage loans and bank loans, see Note 9 and Note 6, respectively.
Allowance for credit losses
|  | As of December 31,
($ in millions) |  | 2025 |  | 2024
Fixed income securities |  | $ | 10 |  |  | $ | 17 |
Mortgage loans |  | 10 |  |  | 12 |
Bank loans |  | 17 |  |  | 10 |
Investments |  | 37 |  |  | 39 |
Premium installment receivables |  | 189 |  |  | 187 |
Reinsurance recoverables |  | 54 |  |  | 63 |
Other assets |  | 15 |  |  | 14 |
Assets |  | 295 |  |  | 303 |
Commitments to fund line of credit, commercial mortgage loans and bank loans |  | 15 |  |  | — |
Liabilities |  | 15 |  |  | — |
Total |  | $ | 310 |  |  | $ | 303 |
Variable interest entities A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not participate in the gains and losses of the entity. The Company consolidates VIEs in which the Company is deemed the primary beneficiary. The primary beneficiary is the entity that has both (1) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE and (2) the power to direct the activities of the VIE that most significantly affect that entity’s economic performance. Foreign currency translation The local currency of the Company’s foreign subsidiaries is deemed to be the functional currency of the country in which these subsidiaries operate. The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the exchange rate in effect at the end of a reporting period for assets and liabilities and at average exchange rates during the period for results of operations. The unrealized gains and losses from the translation of the net assets are recorded as unrealized foreign currency translation adjustments and included in AOCI. Changes in unrealized foreign currency translation adjustments are included in OCI. Gains and losses from foreign currency transactions are reported in operating costs and expenses and have not been material. Adopted accounting standards Accounting for joint ventures Effective January 1, 2025, the Company adopted the new Financial Accounting Standards Board (“FASB”) guidance requiring a joint venture to initially measure assets contributed and liabilities assumed at fair value as of the formation date. The adoption had no impact on the Company’s Consolidated Statements of Operations and Consolidated Statements of Financial Position. Income tax disclosures Effective January 1, 2025, the Company prospectively adopted the FASB guidance enhancing various aspects of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The impacts of adoption are to the Company’s annual disclosures only. See Note 15 for further details. Pending accounting standards Disaggregated income statement disclosures In November 2024, the FASB issued guidance requiring disaggregated information about specific expense categories included in certain income statement expense line items. The guidance outlines the specific costs that are required to be disclosed, which include costs such as: employee compensation, depreciation, intangible asset amortization and selling costs. It also requires qualitative descriptions of the amounts remaining in the relevant income statement captions that are not separately disaggregated quantitatively in the notes to the financial statements and the Company's definition of selling expenses. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The standard is effective on a prospective basis, with the option for retrospective application. The guidance affects disclosures only. Credit losses In July 2025, the FASB issued guidance providing a practical expedient for estimating credit losses on current accounts receivable and contract assets arising from revenue transactions under ASC 606. The update now allows entities to assume current conditions remain unchanged for the asset's remaining life when estimating expected credit losses, simplifying the estimation process. The new guidance is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company does not expect the impact of this standard to be material to its financial statements and disclosures. Internal-use software In September 2025, the FASB issued guidance which updates the accounting for internal-use software by replacing the stage-based model with a principles-based approach. The new guidance requires capitalization once management commits to funding and it is probable the software will be completed and used as intended (probable-to-complete recognition threshold). The standard also clarifies that costs cannot be capitalized when significant development uncertainty exists, such as unresolved technological innovations or unclear performance requirements. In addition, website development costs are now included under the same guidance. The new guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The standard may be adopted prospectively, retrospectively, or using a modified transition approach. The Company is currently evaluating the impact of this standard on its financial statements and disclosures. Codification Improvements In December 2025, the FASB issued guidance introducing targeted amendments and clarifications across multiple areas. Key changes include updates to diluted earnings per share calculations when losses occur from continuing operations and there are potentially dilutive instruments, clarified guidance for treasury stock retirement methods, refinements to accounting for beneficial interests and related interest income and expanded eligibility for the proportional amortization method to all income tax credit investments. The guidance also clarifies the treatment of receivable transfers under ASC 860 and excludes certain lease receivables from enhanced credit loss disclosures. The new guidance is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods. Early adoption is permitted, and transition methods vary by topic. The Company is currently evaluating the impact of this standard on its financial statements and disclosures.

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