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Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or non-performance risk, which may include our own credit risk. We estimate an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability ("exit price") in the principal market, or the most advantageous market for that asset or liability in the absence of a principal market as opposed to the price that would be paid to acquire the asset or assume a liability ("entry price"). We categorize financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique, along with net asset value. The three-level hierarchy for fair value measurement is defined as follows:
Level 1 - Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date.
Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads, and yield curves.
Level 3 - Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances.
Net Asset Value ("NAV") - Certain equity investments are measured using NAV as a practical expedient in determining fair value. In addition, our unconsolidated affiliates (primarily limited partnerships) are primarily accounted for using the equity method of accounting with fair value determined using NAV as a practical expedient. Our carrying value reflects our pro rata ownership percentage as indicated by NAV in the unconsolidated affiliate's financial statements, which we may adjust if we determine NAV is not calculated consistent with investment company fair value principles. The underlying investments of the unconsolidated affiliates may have significant unobservable inputs, which may include, but are not limited to, comparable multiples and weighted average cost of capital rates applied in valuation models or a discounted cash flow model. Additionally, management inquires quarterly with the general partner to determine whether any credit or other market events have occurred since prior period financial statements to ensure any material events are properly included in current period valuation and investment income.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment.
When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is
inherently more difficult. In addition to the unobservable inputs, Level 3 fair value investments may include observable components, which are components that are actively quoted or can be validated to market-based sources.
 
The estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt, which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows:
June 30, 2025
Level 1Level 2Level 3NAVFair Value
Assets(In millions)
Cash and cash equivalents $3,272 $— $— $— $3,272 
Fixed maturity securities, available-for-sale:
Asset-backed securities ("ABS")— 8,984 9,361 — 18,345 
Commercial mortgage-backed securities— 5,387 3 — 5,390 
Corporates41 19,133 3,165 — 22,339 
Hybrids36 525 5 — 566 
Municipals— 1,346 3 — 1,349 
Residential mortgage-backed securities— 2,956 5 — 2,961 
U.S. Government767 6 — — 773 
Foreign Governments102 199 23 — 324 
Preferred securities176 252 8 — 436 
Equity securities453 — 15 22 490 
Derivative investments— 936 — — 936 
Investment in unconsolidated affiliates— — 272 — 272 
Other long-term investments— — 36 — 36 
Short term investments1,266 180 5 — 1,451 
Loan receivable, included in Prepaid expenses and other assets— — 18 — 18 
Market risk benefits asset— — 213 — 213 
Other assets— — 140 — 140 
Total financial assets at fair value$6,113 $39,904 $13,272 $22 $59,311 
Liabilities
Derivatives:
Indexed annuities/indexed universal life insurance ("IUL") embedded derivatives, included in Contractholder funds$— $— $5,727 $— $5,727 
Foreign currency swaps and other derivative instruments, included in Accounts payable and accrued liabilities— 1 5 — 6 
Reinsurance related embedded derivatives, included in Funds withheld for reinsurance liabilities— (17)— — (17)
Contingent consideration obligation, included in Accounts payable and accrued liabilities— — 67 — 67 
Market risk benefits liability— — 711 — 711 
Total financial liabilities at fair value$— $(16)$6,510 $— $6,494 
December 31, 2024
Level 1Level 2Level 3NAVFair Value
Assets(In millions)
Cash and cash equivalents $3,479 $— $— $— $3,479 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 7,513 8,143 — 15,656 
Commercial mortgage-backed securities— 5,182 — — 5,182 
Corporates41 18,698 2,957 — 21,696 
Hybrids35 546 — — 581 
Municipals— 1,386 — — 1,386 
Residential mortgage-backed securities— 2,793 3 — 2,796 
U.S. Government631 6 — — 637 
Foreign Governments— 280 4 — 284 
Preferred securities189 246 8 — 443 
Equity securities575 — 10 57 642 
Derivative investments— 791 3 — 794 
Investment in unconsolidated affiliates— — 272 — 272 
Other long-term investments— — 32 — 32 
Short term investments2,995 18 37 — 3,050 
Loan receivable, included in Prepaid expenses and other assets— — 11 — 11 
Market risk benefits asset— — 189 — 189 
Other assets— — 65 — 65 
Total financial assets at fair value$7,945 $37,459 $11,734 $57 $57,195 
Liabilities
Derivatives:
Indexed annuities/IUL embedded derivatives, included in Contractholder funds$— $— $5,220 $— $5,220 
Interest rate swaps, included in Accounts payable and accrued liabilities— 10 — — 10 
Equity options1 — — — 1 
Reinsurance related embedded derivatives, included in Funds withheld for reinsurance liabilities— (109)— — (109)
Contingent consideration obligation, included in Accounts payable and accrued liabilities— — 74 — 74 
Market risk benefits liability— — 549 — 549 
Total financial liabilities at fair value$1 $(99)$5,843 $— $5,745 
Valuation Methodologies
Cash and Cash Equivalents
The carrying amounts reported in the unaudited Condensed Consolidated Balance Sheets for these instruments approximate fair value.
Fixed Maturity, Preferred and Equity Securities
We measure the fair value of our securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity, preferred or equity security, and we will then consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach include third-party pricing services, independent broker quotations, or pricing matrices. We use observable and unobservable inputs in our valuation methodologies. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. In addition, market indicators and industry and economic events are monitored and further market data will be acquired when certain thresholds are met.
For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. The significant input used in the fair value measurement of equity securities for which the market approach valuation technique is employed is yield for comparable securities. Increases or decreases in the yields would result in lower or higher, respectively, fair value measurements. For broker-quoted only securities, quotes from market makers or broker-dealers are obtained from sources recognized to be market participants. We believe the broker quotes are prices at which trades could be executed based on historical trades executed at broker-quoted or slightly higher prices.
We analyze the third-party valuation methodologies and related inputs to perform assessments to determine the appropriate level within the fair value hierarchy. However, we did not adjust prices received from third parties as of June 30, 2025 or December 31, 2024.
Certain equity investments are measured using NAV as a practical expedient in determining fair value.
Derivative Financial Instruments
Derivative contracts can either be exchange traded or traded over the counter. Exchange traded derivatives typically fall within Level 1 of the fair value hierarchy if there is active trading activity. Two methods are used to value over-the-counter derivatives. When required inputs are available, certain derivatives are valued using valuation pricing models, which represent what we would expect to receive or pay at the balance sheet date if we cancelled or exercised the derivative or entered into offsetting positions. Valuation models require a variety of inputs, which include the use of market-observable inputs, including interest rate, yield curve volatilities, foreign currency exchange rates and other factors. These over-the-counter derivatives are typically classified within Level 2 of the fair value hierarchy as the majority trade in liquid markets, we can verify model inputs and model selection does not involve significant management judgment. When inputs are not available for valuation models, certain over-the-counter derivatives are valued using independent broker quotes, which are based on unobservable market data and classified within Level 3.
The fair value of the reinsurance-related embedded derivatives in our funds withheld reinsurance agreements are estimated based upon the fair value of the assets supporting the funds withheld from reinsurance liabilities. The fair value of the assets is based on a quoted market price of similar assets (Level 2), and therefore the fair value of the embedded derivative is based on market-observable inputs and classified as Level 2.
The fair value measurement of the indexed annuities/IUL embedded derivatives included in Contractholder funds and the reinsured indexed crediting feature embedded derivatives recorded as a component of the Reinsurance recoverable is determined through a combination of market observable information and significant unobservable inputs using the option budget method. The market observable inputs are the market value of option and treasury rates. The significant unobservable inputs are the budgeted option cost (i.e., the expected cost to purchase equity options in future periods to fund the equity indexed linked feature), surrender rates, mortality multiplier and non-performance spread. The mortality multiplier at June 30, 2025 and December 31, 2024 was applied to the 2012 Individual Annuity mortality tables. Increases or decreases in the market value of an option in isolation would result in a higher or lower, respectively, fair value measurement. Increases or decreases in treasury rates, mortality multiplier, surrender rates, or non-performance spread in isolation would result in a lower or higher fair value measurement, respectively. Generally, a change in any one unobservable input would not directly result in a change in any other unobservable input.
Investments in Unconsolidated affiliates
We have elected the fair value option (“FVO”) for certain investments in unconsolidated affiliates as we believe this better aligns them with other investments in unconsolidated affiliates that are measured using NAV as a practical expedient in determining fair value. Investments measured using the FVO are included in Level 3 and the fair values of these investments are determined using a multiple of the affiliates’ earnings before interest, taxes, depreciation and amortization ("EBITDA"). The EBITDA is based on the affiliates’ financial information. The multiple is derived from market analysis of transactions involving comparable companies. The inputs are considered unobservable, as not all market participants have access to this data.
Other Long-term Investments
We hold a fund-linked note, which provides for an additional payment at maturity based on the value of an embedded derivative based on the actual return of a dedicated return fund. Fair value of the embedded derivative is based on an unobservable input, the NAV of the fund at the balance sheet date. The embedded derivative is similar to an equity option on the NAV of the fund with a strike price of zero since F&G will not be required to make any additional payments at maturity of the fund-linked note in order to receive the NAV of the fund on the maturity date. A Black-Scholes model determines the NAV of the fund as the fair value of the equity option regardless of the values used for the other inputs to the option pricing model. The NAV of the fund is provided by the fund manager at the end of each calendar month and represents the value an investor
would receive if it withdrew its investment on the balance sheet date. Therefore, the key unobservable input used in the Black-Scholes model is the value of the fund. As the value of the fund increases or decreases, the fair value of the embedded derivative will increase or decrease. See further discussion on the available-for-sale embedded derivative in Note E Derivative Financial Instruments.
The fair value of the credit-linked note is based on a weighted average of a broker quote and a discounted cash flow analysis. The discounted cash flow approach is based on the expected portfolio cash flows and amortization schedule reflecting investment expectations, adjusted for assumptions on the portfolio's default and recovery rates, and the note's discount rate. The fair value of the note is provided by the fund manager at the end of each quarter.
Short-term Investments
The carrying amounts reported in the unaudited Condensed Consolidated Balance Sheets for these instruments approximate fair value. Certain short-term investments are valued based on third-party pricing services or broker quotes and are classified as Level 2 or 3.
Contingent Consideration Obligation
The contingent consideration is measured at fair value using a discounted cash flow model applied using a Monte Carlo simulation of estimated EBITDA at each measurement period and for each simulated path relative to contractual EBITDA milestones. The Monte Carlo simulation utilizes a risk-adjusted discount rate, volatility assumption, and risk-free rates to assess the probability Roar, LLC's ("Roar") EBITDA trajectory reaches required milestones for the earn out payments to be made. The discounted cash flow approach applies a company-specific discount rate based on F&G credit profile to future expected earn out payments to calculate the estimated fair value based on the average outcome from the simulation.
Other Assets
Mortgage servicing rights are measured at fair value using a discounted cash flow model, which incorporates assumptions that market participants use in estimating future net servicing income cash flows. These assumptions include estimates of prepayment rates, discount rates, cost to service (including delinquency and foreclosure costs), escrow account earnings, contractual servicing fee income, and ancillary income.
Market Risk Benefits ("MRBs")
MRBs (inclusive of reinsured MRBs) are measured at fair value using an attributed fee measurement approach where attributed fees are explicit rider charges collectible from the policyholder (or paid to the reinsurer) used to cover the excess benefits. The fair value is calculated using a risk neutral valuation method and is based on current net amounts at risk, market data, internal and industry experience, and other factors. The balances are computed using assumptions including mortality, full and partial surrender, rider benefit utilization, risk-free rates including non-performance spread and risk margin, market value of options, and economic scenarios. Policyholder behavior assumptions are reviewed at least annually, typically in the third quarter, for any revisions. Reinsured MRBs are valued using a methodology consistent with direct MRBs, with the exception of the non-performance spread, which reflects the credit of the reinsurer. See further discussion on MRBs in Note O Market Risk Benefits.    
Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of June 30, 2025 and December 31, 2024, excluding assets and liabilities for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services), are as follows:
Fair Value as ofValuation TechniqueUnobservable Input(s)Range (Weighted average)
June 30, 2025
(In millions)June 30, 2025
Assets
Asset-backed securities$111 Third-Party ValuationDiscount Rate
5.27% - 7.43% (6.45%)
Corporates 9 Discounted Cash FlowDiscount Rate
13.33% - 100.00% (97.22%)
Corporates672 Third-Party Valuation Discount Rate
3.85% - 23.39% (6.41%)
Municipals3 Third-Party ValuationDiscount Rate
5.36% - 5.36% (5.36%)
Residential mortgage-backed securities3 Third-Party Valuation Discount Rate
5.70% - 5.70% (5.70%)
Foreign Governments4 Third-Party Valuation Discount Rate
9.07% - 9.07% (9.07%)
Preferred securities1 Discounted Cash FlowDiscount rate
100.00% - 100.00% (100.00%)
Equity securities4 Discounted Cash FlowDiscount rate
14.10% - 14.10% (14.10%)
Market Comparable Company AnalysisEBITDA multiple
5.6x - 5.6x (5.6x)
Investment in unconsolidated affiliates272 Market Comparable Company AnalysisEBITDA Multiple
8.4x - 12.4x (9.80x)
Other long-term investments:
Available-for-sale embedded derivative36 Black Scholes ModelMarket Value of AnchorPath Fund
100.00%
Prepaid expenses and other assets:
Loan receivable18 Discounted Cash FlowRisk-Adjusted Discount Rate
6.81% - 6.81% (6.81%)
Collateral Volatility
35.00% - 35.00% (35.00%)
Other assets 140 Discounted Cash Flow Discount Rate
7.66% - 12.52% (9.35%)
Conditional Prepayment Rate
5.95% -13.85% (8.19%)
Market risk benefits asset213 Discounted Cash FlowMortality
80.00% - 115.00% (100.00%)
Surrender Rates
0.25% - 30.00% (5.01%)
Partial Withdrawal Rates
0.00% - 24.39% (2.48%)
Non-Performance Spread
0.48% - 0.95% (0.75%)
GMWB Utilization
50.00% - 75.00% (62.37%)
Total financial assets at fair value (a)$1,486 
Liabilities
Derivatives:
Indexed annuities/ IUL embedded derivatives, included in Contractholder funds$5,727 Discounted Cash FlowMarket Value of Option
0.00% - 20.78% (2.76%)
Mortality Multiplier
80.00% - 115.00% (100.00%)
Surrender Rates
0.25% - 50.00% (6.55%)
Partial Withdrawals
2.00% - 37.04% (2.71%)
Non-Performance Spread
0.48% - 0.95% (0.75%)
Option Cost
0.07% - 5.70% (2.75%)
Accounts payable and accrued liabilities:
Contingent consideration67 Discounted Cash FlowRisk-Adjusted Discount Rate
12.50% - 12.50% (12.50%)
EBITDA Volatility
35.00% - 35.00% (35.00%)
Counterparty Discount Rate
6.00% - 6.00% (6.00%)
Market risk benefits liability 711 Discounted Cash FlowMortality
80.00% - 115.00% (100.00%)
Surrender Rates
0.25% - 30.00% (5.01%)
Partial Withdrawal Rates
0.00% - 24.39% (2.48%)
Non-Performance Spread
0.48% - 0.95% (0.75%)
GMWB Utilization
50.00% - 75.00% (62.37%)
Total financial liabilities at fair value $6,505 
(a) Assets of $11,784 million and liabilities of $5 million for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are excluded from the respective totals in the table above.
Fair Value as ofValuation TechniqueUnobservable Input(s)Range (Weighted average)
December 31, 2024
(In millions)December 31, 2024
Assets
Asset-backed securities$95 Third-Party ValuationDiscount Rate
4.83% - 7.15%% (6.33%)
Corporates750 Third-Party ValuationDiscount Rate
2.00% - 22.53% (6.76%)
Corporates7Discounted Cash FlowDiscount Rate
13.33% - 100.00% (96.45%)
Residential mortgage-backed securities3 Third-Party ValuationDiscount Rate
5.89% - 5.89% (5.89%)
Foreign Governments4 Third-Party ValuationDiscount Rate
12.14% - 12.14% (12.14%)
Preferred securities1 Discounted Cash FlowDiscount rate
100.00% - 100.00% (100.00%)
Equity securities4 Discounted Cash FlowDiscount rate
4.80% - 14.10% (9.40%)
Market Comparable Company AnalysisEBITDA multiple
5.8x - 7.5x (7.0x)
Investment in unconsolidated affiliates272 Market Comparable Company AnalysisEBITDA Multiple
8.7x - 23.6x (14.6xx)
Other assets 65 Discounted Cash FlowDiscount Rate
10.60% - 12.00% (11.30%)
Conditional Prepayment Rate
6.24% - 11.99% (9.12%)
Other long-term investments:
Available-for-sale embedded derivative32 Black Scholes ModelMarket Value of AnchorPath Fund
100.00%
Prepaid expenses and other assets:
Loan receivable11 Discounted Cash FlowRisk-Adjusted Discount Rate
7.22% - 7.22% (7.22%)
Collateral Volatility
35.00% - 35.00% (35.00%)
Market risk benefits asset189 Discounted Cash FlowMortality
80.00% - 115.00% (100.00%)
Surrender Rates
0.25% - 30.00% (5.05%)
Partial Withdrawal Rates
2.00% -24.39% (2.48%)
Non-Performance Spread
0.48% - 0.95% (0.75%)
GMWB Utilization
50.00% -75.00% (61.77%)
Total financial assets at fair value (a)$1,433 
Liabilities
Derivatives:
Indexed annuities/ IUL embedded derivatives, included in Contractholder funds$5,220 Discounted Cash FlowMarket Value of Option
0.00% - 20.81% (2.92%)
Mortality Multiplier
80.00% - 115.00% (100.00%)
Surrender Rates
0.25% - 50.00% (6.94%)
Partial Withdrawals
2.00% - 35.71% (2.72%)
Non-Performance Spread
0.48% - 0.95% (0.75%)
Option Cost
0.07% - 5.70% (2.68%)
Accounts payable and accrued liabilities:
Contingent consideration74Discounted Cash FlowRisk-Adjusted Discount Rate
13.50% - 13.50% (13.50%)
EBITDA Volatility
35.00% - 35.00% (35.00%)
Counterparty Discount Rate
6.50% - 6.50% (6.50%)
Market risk benefits liability549Discounted Cash FlowMortality
80.00% - 115.00% (100.00%)
Surrender Rates
0.25% - 30.00% (5.05%)
Partial Withdrawal Rates
2.00% - 24.39% (2.48%)
Non-Performance Spread
0.48% - 0.95% (0.75%)
GMWB Utilization
50.00% - 75.00% (61.77%)
Total financial liabilities at fair value$5,843 
(a) Assets of $10,301 million for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are excluded from the respective totals in the table above.
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and six months ended June 30, 2025 and 2024. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
Three months ended June 30, 2025
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet Transfer to (from)
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$8,848 $(4)$27 $694 $(55)$(214)$65 $9,361 $27 
Commercial mortgage-backed securities— — — 3 — — — 3 — 
Corporates3,006 (3)6 367 (14)(194)(3)3,165 7 
Hybrids6 — (1)— — — — 5 — 
Municipals4 — — — — (1)— 3 — 
Residential mortgage-backed securities3 — — 2 — — — 5 — 
Foreign Governments23 — — — — — — 23 — 
Preferred securities8 — — — — — — 8 — 
Equity securities10 — — 5 — — — 15 — 
Derivative investments1 (2)— 1 — — — — — 
Investment in unconsolidated affiliates272 — — — — — — 272 — 
Short term investments40 — — 3 — (38)— 5 — 
Other long-term investments:
Available-for-sale embedded derivative32 — 4 — — — — 36 4 
Prepaid expenses and other assets:
Loan receivable (b)11 — — 7 — — — 18 — 
Other assets67 2 — 71 — — — 140 — 
Subtotal Level 3 assets at fair value$12,331 $(7)$36 $1,153 $(69)$(447)$62 $13,059 $38 
Market risk benefits asset (c)187 213 
Total Level 3 assets at fair value$12,518 $13,272 
Liabilities
Derivatives:
Indexed annuities/ IUL embedded derivatives, included in Contractholder funds$5,316 $202 $— $328 $— $(119)$— $5,727 $— 
Foreign currency swaps and other derivative instruments1 4 — — — — — 5 — 
Accounts payable and accrued liabilities:
Contingent consideration64 3 — — — — — 67 — 
Subtotal Level 3 liabilities at fair value$5,381 $209 $— $328 $— $(119)$— $5,799 $— 
Market risk benefits liability (c)635 711 
Total Level 3 liabilities at fair value$6,016 $6,510 
(a) The net transfers to (from) Level 3 during the three months ended June 30, 2025 were exclusively from Level 2.
(b) Purchases represent advances on the loan commitment to Roar. Refer to Note F Commitments and Contingencies for further details.
(c) Refer to Note O Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
Three months ended June 30, 2024
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet Transfer from
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$7,736 $27 $6 $704 $(60)$(344)$(27)$8,042 $3 
Commercial mortgage-backed securities12 — — 57 — — (54)15 — 
Corporates2,184 — 2 303 (93)(20)(21)2,355 — 
Municipals18 — — — (18)— — — — 
Residential mortgage-backed securities4 — — — — — (1)3 — 
Foreign Governments5 — — — — — — 5 — 
Investment in unconsolidated affiliates343 15 — — — — — 358 — 
Short term investments9 — — 62 — — — 71 — 
Preferred securities8 — — — — — — 8 — 
Equity securities14 (1)— — — — — 13 — 
Derivative investments9 (2)1 — — — — 8 1 
Other assets — — — 50 — — — 50 — 
Other long-term investments:
Available-for-sale embedded derivative30 — 1 — — — — 31 1 
Credit linked note9 1 — — — (4)— 6 — 
Subtotal Level 3 assets at fair value$10,381 $40 $10 $1,176 $(171)$(368)$(103)$10,965 $5 
Market risk benefits asset (b)95 103 
Total Level 3 assets at fair value$10,476 $11,068 
Liabilities
Derivatives:
Indexed annuities/IUL embedded derivatives, included in contractholder funds$4,679 $(56)$— $333 $— $(108)$— $4,848 $— 
Interest rate swaps19 9 — — — — — 28 
Accounts payable and accrued liabilities:
Contingent consideration57 6 — — — — — 63 — 
Subtotal Level 3 liabilities at fair value$4,755 $(41)$— $333 $— $(108)$— $4,939 $— 
Market risk benefits liability (b)425 459 
Total Level 3 liabilities at fair value$5,180 $5,398 
(a) The net transfers from Level 3 during the three months ended June 30, 2024 were exclusively to Level 2.
(b) Refer to Note O Market Risk Benefits for roll forward activity of the net Market risk benefits asset and liability.
Six months ended June 30, 2025
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer to (from)
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$8,143 $(3)$30 $1,723 $(198)$(399)$65 $9,361 $29 
Commercial mortgage-backed securities— — — 3 — — — 3 — 
Corporates2,957 (16)41 719 (328)(205)(3)3,165 40 
Hybrids— — (1)6 — — — 5 — 
Municipals— — — 4 — (1)— 3 — 
Residential mortgage-backed securities3 — — 2 — — — 5 — 
Foreign Governments4 — — 19 — — — 23 — 
Preferred securities8 (1)1 — — — — 8 — 
Equity securities10 — — 5 — — — 15 — 
Derivative investments3 (2)(2)1 — — — — (2)
Investment in unconsolidated affiliates272 — — — — — — 272 — 
Short term investments37 — — 6 — (38)— 5 — 
Prepaid expenses and other assets
Other assets65 1 — 74 — — — 140 — 
Loan receivable (b)11— — 7 — — — 18— 
Other long-term investments:
Available-for-sale embedded derivative32 — 4 — — — — 36 4 
Subtotal Level 3 assets at fair value$11,545 $(21)$73 $2,569 $(526)$(643)$62 $13,059 $71 
Market risk benefits asset (c)189 213 
Total Level 3 assets at fair value$11,734 $13,272 
Liabilities
Indexed annuity/ IUL embedded derivatives, included in contractholder funds$5,220 $135 $— $584 $— $(212)$— $5,727 $— 
Foreign currency swaps and other derivative instruments— 5 — — — — — 5 — 
Contingent consideration 74 5 — — — (12)— 67 — 
Subtotal Level 3 liabilities at fair value$5,294 $145 $— $584 $— $(224)$— $5,799 $— 
Market risk benefits liability (c)549 711 
Total Level 3 liabilities at fair value$5,843 $6,510 
(a) The net transfers to (from) Level 3 during the six months ended June 30, 2025 were exclusively from Level 2.
(b) Purchases represent advances on the loan commitment to Roar. Refer to Note F Commitments and Contingencies for further details.
(c) Refer to Note O Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
Six months ended June 30, 2024
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet Transfer from
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$7,122 $15 $110 $1,466 $(79)$(546)$(46)$8,042 $107 
Commercial mortgage-backed securities18 — — 58 — — (61)15 — 
Corporates1,979 — 14 520 (96)(42)(20)2,355 13 
Municipals49 — 1 — (50)— — — 1 
Residential mortgage-backed securities3 — — 1 — — (1)3 — 
Foreign Governments16 — — — — (11)— 5 — 
Investment in unconsolidated affiliates285 73 — — — — — 358 — 
Short term investments— — — 71 — — — 71 — 
Preferred securities8 — — — — — — 8 — 
Equity securities15 (2)— — — — — 13 — 
Derivative investments57 (50)1 — — — — 8 1 
Other assets— — — 50 — — — 50 — 
Other long-term investments:
Available-for-sale embedded derivative27 — 4 — — — — 31 4 
Credit linked note10 1 — — — (5)— 6 — 
Subtotal Level 3 assets at fair value$9,589 $37 $130 $2,166 $(225)$(604)$(128)$10,965 $126 
Market risk benefits asset (b)88 103 
Total Level 3 assets at fair value$9,677 $11,068 
Liabilities
Indexed annuity/IUL embedded derivatives, included in contractholder funds$4,258 $144 $— $621 $— $(175)$— $4,848 $— 
Interest rate swaps— 28 — — — — — 28 — 
Contingent consideration (c)— 15 — 48 — — — 63 — 
Subtotal Level 3 liabilities at fair value$4,258 $187 $— $669 $— $(175)$— $4,939 $— 
Market risk benefits liability (b)403 459 
Total Level 3 liabilities at fair value$4,661 $5,398 
(a) The net transfers from Level 3 during the six months ended June 30, 2024 were exclusively to Level 2.
(b) Refer to Note O Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
(c) The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above.

Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value
The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments.
Mortgage Loans
The fair value of mortgage loans is established using a discounted cash flow method based on internal credit rating, maturity, and future income. This yield-based approach is sourced from our third-party vendor. The internal ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt service coverage, loan-to-value, quality of tenancy, borrower, and payment record. The inputs used to measure the fair value of our mortgage loans are classified as Level 3 within the fair value hierarchy.
Investments in Unconsolidated affiliates
In our F&G segment, the carrying value of Investments in unconsolidated affiliates is primarily determined using NAV as a practical expedient and are included in the NAV column in the table below. Recognition of income and adjustments to the carrying amount are delayed due to the availability of the related financial statements, which are obtained from the general partner generally on a one to three-month delay. In our title segment, Investments in unconsolidated affiliates accounted for under the equity method of accounting were $167 million and $166 million as of June 30, 2025 and December 31, 2024, respectively.
Policy Loans (included within Other long-term investments)
Policy loans are reported at the unpaid principal balance and are fully collateralized by the cash surrender value of underlying insurance policies. The carrying value of the policy loans approximates the fair value and are classified as Level 3 in the fair value hierarchy.
Company Owned Life Insurance (included within Other long-term investments)
Company owned life insurance ("COLI") is a life insurance program used to finance certain employee benefit expenses. The fair value of COLI is based on net realizable value, which is generally cash surrender value. COLI is classified as Level 3 within the fair value hierarchy.
Other Invested Assets (included within Other long-term investments)
The fair value of bank loans is estimated using a discounted cash flow method with the discount rate based on weighted average cost of capital ("WACC"). This yield-based approach is sourced from a third-party vendor and the WACC establishes a market participant discount rate by determining the hypothetical capital structure for the asset should it be underwritten as of each period end. Bank loans are classified as Level 3 within the fair value hierarchy. For cost method investments, our carrying value approximates fair value. Cost method investments are classified as Level 1 within the fair value hierarchy.
Investment Contracts
Investment contracts include deferred annuities (indexed annuities and fixed rate annuities), IUL policies, funding agreements and pension risk transfers ("PRT"), and immediate annuity contracts without life contingencies. The indexed annuities/IUL embedded derivatives, included in contractholder funds, are excluded as they are carried at fair value. The fair value of the deferred annuities (indexed annuities and fixed rate annuities) and IUL contracts is based on their cash surrender value (i.e., the cost the Company would incur to extinguish the liability) as these contracts are generally issued without an annuitization date. The fair value of funding agreements and PRT and immediate annuity contracts without life contingencies is derived by calculating a new fair value interest rate using the updated yield curve and treasury spreads as of the respective reporting date. The Company is not required to, and has not, estimated the fair value of the liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value.
Other
Federal Home Loan Bank of Atlanta (“FHLB”) common stock is carried at cost, which approximates fair value. The carrying amount of FHLB common stock represents the value it can be sold back to the FHLB and is classified as Level 2 within the hierarchy.
Debt
The fair value of debt, with the exception of the F&G Credit Agreement is based on quoted market prices. The carrying value of the F&G Credit Agreement would approximate fair value as the rates would be comparable to those at which we could currently borrow under similar terms. As of June 30, 2025 and December 31, 2024, there were no outstanding balances under the F&G Credit Agreement. The inputs used to measure the fair value of our outstanding debt are classified as Level 2 within the fair value hierarchy.
The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
June 30, 2025
Level 1Level 2Level 3NAVTotal Estimated Fair ValueCarrying Amount
Assets(In millions)
FHLB common stock$— $134 $— $— $134 $134 
Commercial mortgage loans— — 2,827 — 2,827 3,068 
Residential mortgage loans— — 3,632 — 3,632 3,872 
Investments in unconsolidated affiliates— — 3 4,026 4,029 4,029 
Policy loans— — 125 — 125 125 
Other invested assets44 — — 50 94 94 
Company-owned life insurance— — 864 — 864 864 
Trade and notes receivables, net of allowance — — 477 — 477 477 
Total$44 $134 $7,928 $4,076 $12,182 $12,663 
Liabilities
Investment contracts, included in contractholder funds$— $— $48,958 $— $48,958 $54,086 
Debt— 4,179 — — 4,179 4,397 
Total$— $4,179 $48,958 $— $53,137 $58,483 

December 31, 2024
Level 1Level 2Level 3NAVTotal Estimated Fair ValueCarrying Amount
Assets(In millions)
FHLB common stock$— $153 $— $— $153 $153 
Commercial mortgage loans— — 2,404 — 2,404 2,705 
Residential mortgage loans— — 2,916 — 2,916 3,221 
Investments in unconsolidated affiliates— — 5 3,288 3,293 3,293 
Policy loans— — 104 — 104 104 
Other invested assets42 — — 48 90 90 
Company-owned life insurance— — 431 — 431 431 
Trade and notes receivables, net of allowance— — 471 — 471 471 
Total$42 $153 $6,331 $3,336 $9,862 $10,468 
Liabilities
Investment contracts, included in contractholder funds$— $— $46,339 $— $46,339 $51,184 
Debt— 3,781 — — 3,781 4,321 
Total$— $3,781 $46,339 $— $50,120 $55,505 
For investments for which NAV is used as a practical expedient for fair value, we do not have any significant restrictions in our ability to liquidate our positions in these investments, other than obtaining general partner approval, nor do we believe it is probable that a price less than NAV would be received in the event of a liquidation.
We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3, or between other levels, at the beginning fair value for the reporting period in which the changes occur. The transfers into and out of Level 3 were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value.