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Market Risk Benefits (Tables)

6 Months Ended

Jun. 30, 2025

Insurance [Abstract]

Balances of and changes in market risk benefits

The following tables summarize the balances of and changes in market risk benefits:

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
			(in millions, except age)
Balance at beginning of period			$	(114)					$	(629)					$	(919)					$	335
Issuances			6						7						11						12
Interest accrual and time decay			(31)						(15)						(49)						(25)
Reserve increase from attributed fees collected			186						195						367						379
Reserve release for benefit payments and derecognition			(3)						(3)						(5)						(7)
Effect of changes in interest rates and bond markets			(129)						(245)						140						(772)
Effect of changes in equity markets and subaccount performance			(711)						(152)						(389)						(882)
Effect of changes in equity index volatility			15						15						40						54
Actual policyholder behavior different from expected behavior			13						10						38						41
Effect of changes in other future expected assumptions			—						—						(1)						—
Effect of changes in the instrument-specific credit risk on market risk benefits			(1)						(13)						(2)						35
Balance at end of period			$	(769)					$	(830)					$	(769)					$	(830)
Reconciliation of the gross balances in an asset or liability position:
Asset position			$	2,095					$	2,082					$	2,095					$	2,082
Liability position			(1,326)						(1,252)						(1,326)						(1,252)
Net asset (liability) position			$	769					$	830					$	769					$	830
Guaranteed benefit amount in excess of current account balances (net amount at risk):
Death benefits			$	325					$	530					$	325					$	530
Living benefits			$	2,201					$	2,317					$	2,201					$	2,317
Composite (greater of)			$	2,497					$	2,775					$	2,497					$	2,775
Weighted average attained age of contractholders			69						69						69						69
Changes in unrealized (gains) losses in net income relating to liabilities held at end of period			$	(855)					$	(402)					$	(253)					$	(1,588)
Changes in unrealized (gains) losses in other comprehensive income (loss) relating to liabilities held at end of period			$	—					$	(11)					$	—					$	40

			Year Ended December 31,
			2024
			(in millions, except age)
Balance at beginning of period			$	335
Issuances			24
Interest accrual and time decay			(66)
Reserve increase from attributed fees collected			790
Reserve release for benefit payments and derecognition			(11)
Effect of changes in interest rates and bond markets			(1,078)
Effect of changes in equity markets and subaccount performance			(1,228)
Effect of changes in equity index volatility			59
Actual policyholder behavior different from expected behavior			71
Effect of changes in other future expected assumptions			106
Effect of changes in the instrument-specific credit risk on market risk benefits			79
Balance at end of period			$	(919)
Reconciliation of the gross balances in an asset or liability position:
Asset position			$	2,182
Liability position			(1,263)
Net asset (liability) position			$	919
Guaranteed benefit amount in excess of current account balances (net amount at risk):
Death benefits			$	462
Living benefits			$	2,429
Composite (greater of)			$	2,829
Weighted average attained age of contractholders			69
Changes in unrealized (gains) losses in net income relating to liabilities held at end of period			$	(2,111)
Changes in unrealized (gains) losses in other comprehensive income (loss) relating to liabilities held at end of period			$	85

Significant inputs and assumptions used in the fair value measurements

The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits:

			June 30, 2025
			Fair Value						Valuation Technique						Significant Inputs and Assumptions						Range												Weighted  Average
			(in millions)
Market risk benefits			$	(769)					Discounted cash flow						Utilization of guaranteed withdrawals (1)						0.0%			–			52.8%						11.9%
															Surrender rate (2)						0.4%			–			75.0%						3.3%
															Market volatility (3)						0.0%			–			25.7%						10.8%
															Nonperformance risk (4)						65 bps												65 bps
															Mortality rate (5)						0.0%			–			41.6%						1.7%

			December 31, 2024
			Fair Value						Valuation Technique						Significant Inputs and Assumptions						Range												Weighted  Average
			(in millions)
Market risk benefits			$	(919)					Discounted cash flow						Utilization of guaranteed withdrawals (1)						0.0%			–			52.8%						11.9%
															Surrender rate (2)						0.4%			–			75.0%						3.3%
															Market volatility (3)						0.0%			–			24.6%						10.3%
															Nonperformance risk (4)						65 bps												65 bps
															Mortality rate (5)						0.0%			–			41.6%						1.7%

(1) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals.

(2) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract.

(3) Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit.

(4) The nonperformance risk is the spread added to the U.S. Treasury curve.

(5) The weighted average mortality rate represents the average assumption weighted based on the account value of each contract.

The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:

			June 30, 2025
			Fair Value						Valuation Technique						Unobservable Input						Range												Weighted Average
			(in millions)
Corporate debt securities (private placements)			$	647					Discounted cash flow						Yield/spread to U.S. Treasuries (1)						0.9%			–			1.6%						1.1%
Asset backed securities			$	1					Discounted cash flow						Annual short-term default rate (2)						3.5%												3.5%
															Annual long-term default rate (2)						3.5%												3.5%
															Discount rate						15.3%												15.3%
															Constant prepayment rate						20.0%												20.0%
															Loss recovery						60.0%												60.0%
Fixed deferred indexed annuity ceded embedded derivatives			$	57					Discounted cash flow						Surrender rate (3)						0.0%			–			89.1%						9.5%
Fixed deferred indexed annuity embedded derivatives			$	56					Discounted cash flow						Surrender rate (3)						0.0%			–			89.1%						9.5%
															Nonperformance risk (4)						65 bps												65 bps
IUL embedded derivatives			$	999					Discounted cash flow						Nonperformance risk (4)						65 bps												65 bps
Structured variable annuity embedded derivatives			$	2,879					Discounted cash flow						Surrender rate (3)						0.5%			–			75.0%						2.0%
															Nonperformance risk (4)						65 bps												65 bps
Contingent consideration liabilities			$	66					Discounted cash flow						Discount rate (5)						0.0%			–			10.5%						2.6%

			December 31, 2024
			Fair Value						Valuation Technique						Unobservable Input						Range												Weighted Average
			(in millions)
Corporate debt securities (private placements)			$	583					Discounted cash flow						Yield/spread to U.S. Treasuries (1)						0.8%			–			1.7%						1.1%
Asset backed securities			$	1					Discounted cash flow						Annual short-term default rate (2)						3.5%												3.5%
															Annual long-term default rate (2)						3.5%												3.5%
															Discount rate						15.3%												15.3%
															Constant prepayment rate						20.0%												20.0%
															Loss recovery						60.0%												60.0%
Fixed deferred indexed annuity ceded embedded derivatives			$	55					Discounted cash flow						Surrender rate (3)						0.0%			–			89.1%						10.6%
Fixed deferred indexed annuity embedded derivatives			$	53					Discounted cash flow						Surrender rate (3)						0.0%			–			89.1%						10.6%
															Nonperformance risk (4)						65 bps												65 bps
IUL embedded derivatives			$	1,002					Discounted cash flow						Nonperformance risk (4)						65 bps												65 bps
Structured variable annuity embedded derivatives			$	2,461					Discounted cash flow						Surrender rate (3)						0.5%			–			75.0%						1.7%
															Nonperformance risk (4)						65 bps												65 bps
Contingent consideration liabilities			$	68					Discounted cash flow						Discount rate (5)						0.0%			–			10.5%						3.3%

(1) The weighted average for the yield/spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.

(2) The weighted average annual default rates of asset backed securities is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.

(3) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract.

(4) The nonperformance risk is the spread added to the U.S. Treasury curve.

(5) The weighted average discount rate represents the average discount rate across all contingent consideration liabilities, weighted based on the size of the contingent consideration liability.

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 103
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-103

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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X

- Definition

Tabular disclosure of beginning balance to ending balance for contract or contract feature in long-duration contract issued by insurance entity that both protects contract holder from other-than-nominal capital market risk and exposes insurance entity to other-than-nominal capital market risk.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 55
-Paragraph 29G
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480046/944-40-55-29G

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 7B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480081/944-40-50-7B

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