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F&G Reinsurance | 9 Months Ended
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Sep. 30, 2025
Reinsurance Disclosures [Abstract] |
F&G Reinsurance | F&G Reinsurance The Company reinsures portions of its policy risks with other insurance companies. The use of indemnity reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance liability regardless of whether it is entitled to or able to receive payment from the reinsurer. The portion of risks exceeding the Company's retention limit is reinsured. The Company primarily seeks reinsurance coverage in order to manage loss exposures, to enhance our capital position, to diversify risks and earnings, and to manage new business volume. The Company follows reinsurance accounting when the treaty adequately transfers insurance risk and any acquisition cost reimbursements reduce policy acquisition costs deferred and maintenance expense reimbursements reduce direct expenses incurred. Otherwise, the Company follows deposit accounting if there is inadequate transfer of insurance risk or if the underlying policy for which risk is being transferred is an investment contract that does not contain insurance risk. As of September 30, 2025 and December 31, 2024, we had an immaterial amount of cost of reinsurance recorded on the unaudited Condensed Consolidated Balance Sheets. The effects of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three and nine months ended September 30, 2025 and 2024 were as follows:
| Three months ended September 30, |  |
| 2025 |  | 2024 |  |  |  |
| (In millions)
| Net Premiums Earned |  |  |  | Net Benefits Incurred |  | Net Premiums Earned |  |  |  | Net Benefits Incurred |  |  |  |  |  |  |  |
Direct | $ | 565 |  |  |  |  | $ | 1,237 |  |  | $ | 363 |  |  |  |  | $ | 1,127 |  |  |  |  |  |  |  |  |
Ceded | (21) |  |  |  |  | (56) |  |  | (23) |  |  |  |  | (32) |  |  |  |  |  |  |  |  |
Net | $ | 544 |  |  |  |  | $ | 1,181 |  |  | $ | 340 |  |  |  |  | $ | 1,095 |  |  |  |  |  |  |  |  |
| Nine months ended September 30,
| 2025 |  | 2024
| (In millions)
| Net Premiums Earned |  |  |  | Net Benefits Incurred |  | Net Premiums Earned |  |  |  | Net Benefits Incurred
Direct | $ | 1,370 |  |  |  |  | $ | 2,871 |  |  | $ | 1,340 |  |  |  |  | $ | 2,999 |
Ceded | (64) |  |  |  |  | (173) |  |  | (71) |  |  |  |  | (135) |
Net | $ | 1,306 |  |  |  |  | $ | 2,698 |  |  | $ | 1,269 |  |  |  |  | $ | 2,864 |
Amounts payable or recoverable for reinsurance on paid and unpaid claims are not subject to periodic or maximum limits. No policies issued by the Company have been reinsured with any foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. The Company has not entered into any reinsurance agreements in which the reinsurer may unilaterally cancel any reinsurance for reasons other than non-payment of premiums or other similar credit issues. Reinsurance Transactions The following summarizes significant changes to third-party reinsurance agreements for the period ended September 30, 2025: Everlake: Effective January 1, 2025, F&G amended the existing flow reinsurance agreement with Everlake Life Insurance Company (“Everlake”) to cede future additional multi-year guarantee annuities ("MYGA") business for agreed upon periods to Everlake pursuant to an offer and acceptance process, rather than on a flow basis. The amendment included a cession of an inforce block of certain MYGA policies on a coinsurance quota share basis. New Reinsurance Vehicle: During the third quarter of 2025, F&G announced the launch of a strategic partnership with a new reinsurance vehicle backed by Blackstone managed funds, with approximately $1 billion in anticipated capital commitments. Effective August 1, 2025, F&G executed this forward flow reinsurance agreement with Fort Greene Reinsurance SPC Limited Segregated Portfolio No. 1, (“Fort Greene”) to cede certain FIA policies on a coinsurance funds withheld quota share basis and certain funding agreements on a modified coinsurance basis. F&G does not hold any ownership stake in the unaffiliated Fort Greene entity. There have been no other significant changes to third party reinsurance agreements for the three and nine months ended September 30, 2025. The following summarizes our reinsurance recoverable as of September 30, 2025 and December 31, 2024:
Parent Company/ Principal Reinsurers |  | Reinsurance Recoverable (a) |  | Agreement Type |  | Products Covered |  | Accounting
|  | September 30, 2025 |  | December 31, 2024 |  |  |  |  |  |
|  | (In millions) |  |  |  |  |  |
Aspida Life Re Ltd. |  | $ | 8,649 |  |  | $ | 7,844 |  |  | Coinsurance Funds Withheld |  | Certain MYGA |  | Deposit
Somerset Reinsurance Ltd. (b) |  | 4,503 |  |  | 2,822 |  |  | Coinsurance Funds Withheld |  | Certain MYGA and deferred annuities |  | Deposit
|  |  |  |  |  | Coinsurance Funds Withheld |  | Certain FIA |  | Reinsurance
Everlake |  | 1,857 |  |  | 1,168 |  |  | Coinsurance |  | Certain MYGA (c) |  | Deposit
Wilton Reassurance Company |  | 1,039 |  |  | 1,066 |  |  | Coinsurance |  | Block of traditional, IUL and UL (d) |  | Reinsurance
Other (e) |  | 813 |  |  | 489 |  |  |  |  |  |  |
Reinsurance recoverable, gross of allowance |  | 16,861 |  |  | 13,389 |  |  |  |  |  |  |
Allowance for expected credit losses |  | (18) |  |  | (20) |  |  |  |  |  |  |
Reinsurance recoverable, net of allowance for expected credit losses |  | $ | 16,843 |  |  | $ | 13,369 |  |  |  |  |  |  |
(a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies.
(b) The balance represents the total reinsurance recoverable for all reinsurance agreements with Somerset.
(c) Reinsurance recoverable is collateralized by assets placed in a statutory comfort trust by the reinsurer and maintained for our sole benefit.
(d) Also includes certain FGL Insurance life insurance policies that are subject to redundant reserves, reported on a statutory basis, under Regulation XXX and Guideline AXXX.
(e) Represents all other reinsurers, with no single reinsurer having a carrying value in excess of 5% of total reinsurance recoverable.
As of September 30, 2025 and December 31, 2024, F&G had a deposit asset of $13,187 million and $11,039 million, respectively, which is reported in the Reinsurance recoverable, net of allowance for credit losses on the unaudited Condensed Consolidated Balance Sheets. The Company incurred risk charge fees of $10 million and $10 million during the three months ended September 30, 2025 and 2024, respectively, and $31 million and $32 million during the nine months ended September 30, 2025 and 2024, respectively, in relation to reinsurance agreements. Credit Losses The Company estimates expected credit losses on reinsurance recoverables using a probability of default/loss given default model. Significant inputs to the model include the reinsurer's credit risk, expected timing of recovery, industry-wide historical default experience, senior unsecured bond recovery rates, and credit enhancement features. There was no material change in the expected credit loss reserve for the three and nine months ended September 30, 2025 and 2024.
Concentration of Reinsurance Risk As indicated above, F&G has a significant concentration of reinsurance risk with third party reinsurers, Aspida Life Re Ltd. (“Aspida Re”), Somerset Reinsurance Ltd. (“Somerset”), Everlake and Wilton Reassurance Company (“Wilton Re”) that could have a material impact on our financial position in the event that any of these reinsurers fails to perform its obligations under the various reinsurance treaties. We monitor the financial condition and financial strength of individual reinsurers using public ratings (refer to table below) and ratings reports of individual reinsurers to attempt to reduce the risk of default by such reinsurers. In addition, the risk of non-performance is further mitigated with various forms of collateral or collateral arrangements, including secured trusts, funds withheld accounts, and irrevocable letters of credit. We believe that all amounts due from Aspida Re, Somerset, Everlake, and Wilton Re for periodic treaty settlements, net of any applicable credit loss reserves, are collectible as of September 30, 2025. The following table presents financial strength ratings as of September 30, 2025:
Parent Company/Principal Reinsurers | Financial Strength Rating
| AM Best |  | S&P |  | Fitch |  | Moody's
Aspida Re | A- |  | — |  | — |  | —
Somerset | A- |  | BBB+ |  | — |  | —
Everlake | A |  | — |  | — |  | —
Wilton Re | A+ |  | — |  | A- |  | —
“—” indicates not rated

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- Definition The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 55 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477548/944-605-55-15 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 55 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477548/944-605-55-12 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479838/944-20-50-4 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479032/944-605-50-3 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479838/944-20-50-3 + Details
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