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Investments

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Our fixed maturity securities investments have been designated as available-for-sale ("AFS"), and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within AOCI, net of deferred income taxes. Our preferred and equity securities investments are carried at fair value with unrealized gains and losses included in net earnings. The Company’s consolidated investments as of September 30, 2025 and December 31, 2024 are summarized as follows:

			September 30, 2025
			Amortized Cost						Allowance for Expected Credit Losses						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Available-for-sale securities			(In millions)
Asset-backed securities			$	18,346					$	(21)					$	198					$	(258)					$	18,265
Commercial mortgage-backed securities			5,525						(55)						67						(149)						5,388
Corporates			25,578						(25)						339						(2,256)						23,636
Hybrids			596						—						5						(19)						582
Municipals			1,618						—						6						(211)						1,413
Residential mortgage-backed securities			2,975						(1)						68						(71)						2,971
U.S. Government			899						—						7						(3)						903
Foreign Governments			376						—						4						(37)						343
Total available-for-sale securities			$	55,913					$	(102)					$	694					$	(3,004)					$	53,501

			December 31, 2024
			Amortized Cost						Allowance for Expected Credit Losses						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Available-for-sale securities			(In millions)
Asset-backed securities			$	15,784					$	(13)					$	202					$	(317)					$	15,656
Commercial mortgage-backed/asset-backed securities			5,379						(49)						53						(201)						5,182
Corporates			24,425						(5)						108						(2,832)						21,696
Hybrids			604						—						6						(29)						581
Municipals			1,638						—						3						(255)						1,386
Residential mortgage-backed securities			2,869						—						32						(105)						2,796
U.S. Government			645						—						2						(10)						637
Foreign Governments			337						—						—						(53)						284
Total available-for-sale securities			$	51,681					$	(67)					$	406					$	(3,802)					$	48,218

Securities held on deposit with various state regulatory authorities had a fair value of $154 million and $997 million as of September 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025 and December 31, 2024, the Company held $33 million and $32 million, respectively, of investments that were non-income producing for a period greater than twelve months.

As of September 30, 2025 and December 31, 2024, the Company's accrued interest receivable balance, excluding accrued interest receivable balances related to mortgage loans discussed below under "Mortgage Loans," was $522 million and $476 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed Consolidated Balance Sheets.

In accordance with our FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to us for general purposes. The collateral investments had a fair value of $4,475 million and $4,289 million as of September 30, 2025 and December 31, 2024, respectively.

The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.

			September 30, 2025												December 31, 2024
			(In millions)												(In millions)
			Amortized Cost						Fair Value						Amortized Cost						Fair Value
Corporates, Non-structured Hybrids, Municipal and Government securities:
Due in one year or less			$	860					$	852					$	961					$	955
Due after one year through five years			5,193						5,217						4,616						4,544
Due after five years through ten years			5,532						5,545						5,311						5,126
Due after ten years			17,482						15,263						16,761						13,959
Subtotal			29,067						26,877						27,649						24,584
Other securities, which provide for periodic payments:
Asset-backed securities			18,346						18,265						15,784						15,656
Commercial mortgage-backed securities			5,525						5,388						5,379						5,182
Residential mortgage-backed securities			2,975						2,971						2,869						2,796
Subtotal			26,846						26,624						24,032						23,634
Total fixed maturity available-for-sale securities			$	55,913					$	53,501					$	51,681					$	48,218

Allowance for Expected Credit Loss

We regularly review AFS securities for declines in fair value that we determine to be credit related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit related, and if so, the magnitude of the credit loss:

•The extent to which the fair value is less than the amortized cost basis;

•The reasons for the decline in value (credit event, foreign currency or interest-rate related, including general credit spread widening);

•The financial condition of and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal based upon the issuer's financial strength);

•Current delinquencies and non-performing assets of underlying collateral;

•Expected future default rates;

•Collateral value by vintage, geographic region, industry concentration or property type;

•Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and

•Contractual and regulatory cash obligations and the issuer's plans to meet such obligations.

We recognize an allowance for expected credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We measure the credit loss using a discounted cash flow model that utilizes the single best estimate cash flow and the recognized credit loss is limited to the total unrealized loss on the security (i.e., the fair value floor). Cash flows are discounted using the implicit yield of bonds at their time of purchase and the current book yield for asset and mortgage-backed securities as well as variable rate securities. We recognize the expected credit losses in Recognized gains and losses, net in the unaudited Condensed Consolidated Statements of Earnings, with an offset for the amount of non-credit impairments recognized in AOCI. We do not measure a credit loss allowance on accrued investment income because we write-off accrued interest through Interest and investment income when collectability concerns arise.

We consider the following in determining whether write-offs of a security’s amortized cost are necessary:

•We believe amounts related to securities have become uncollectible;

•We intend to sell a security; or

•It is more likely than not that we will be required to sell a security prior to recovery.

If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible, an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. The remainder of unrealized loss is held in AOCI. As of September 30, 2025 and December 31, 2024, our allowance for expected credit losses for AFS securities was $102 million and $67 million, respectively.

The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of September 30, 2025 and December 31, 2024 were as follows:

			September 30, 2025
			Less than 12 months												12 months or longer												Total
			Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
Available-for-sale securities			(In millions)
Asset-backed securities			$	1,738					$	(27)					$	2,238					$	(208)					$	3,976					$	(235)
Commercial mortgage-backed securities			384						(9)						1,184						(126)						1,568						(135)
Corporates			2,590						(42)						9,789						(2,215)						12,379						(2,257)
Hybrids			71						(2)						339						(17)						410						(19)
Municipals			159						(4)						1,055						(207)						1,214						(211)
Residential mortgage-backed securities			169						(1)						391						(64)						560						(65)
U.S. Government			207						(1)						93						(2)						300						(3)
Foreign Government			49						(1)						156						(36)						205						(37)
Total available-for-sale securities			$	5,367					$	(87)					$	15,245					$	(2,875)					$	20,612					$	(2,962)
Total number of available-for-sale securities in an unrealized loss position less than twelve months																																	1,769
Total number of available-for-sale securities in an unrealized loss position twelve months or longer																																	2,172
Total number of available-for-sale securities in an unrealized loss position																																	3,941

			December 31, 2024
			Less than 12 months												12 months or longer												Total
			Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
Available-for-sale securities			(In millions)
Asset-backed securities			$	1,164					$	(30)					$	2,637					$	(276)					$	3,801					$	(306)
Commercial mortgage-backed securities			727						(11)						1,513						(175)						2,240						(186)
Corporates			6,831						(208)						9,866						(2,624)						16,697						(2,832)
Hybrids			105						(4)						380						(25)						485						(29)
Municipals			261						(12)						1,006						(243)						1,267						(255)
Residential mortgage-backed securities			899						(16)						460						(89)						1,359						(105)
U.S. Government			313						(4)						122						(5)						435						(9)
Foreign Government			120						(5)						157						(48)						277						(53)
Total available-for-sale securities			$	10,420					$	(290)					$	16,141					$	(3,485)					$	26,561					$	(3,775)
Total number of available-for-sale securities in an unrealized loss position less than twelve months																																	2,005
Total number of available-for-sale securities in an unrealized loss position twelve months or longer																																	2,305
Total number of available-for-sale securities in an unrealized loss position																																	4,310

The unrealized losses as of September 30, 2025 and December 31, 2024 were caused by higher treasury rates compared to those at the time of the F&G acquisition or the purchase of the security if later. We believe the unrealized loss position for which we have not recorded an allowance for expected credit loss as of September 30, 2025 was primarily attributable to interest rate increases, near-term illiquidity, and other macroeconomic uncertainties as opposed to issuer specific credit concerns.

Mortgage Loans

Our mortgage loans are collateralized by commercial and residential properties.

Commercial Mortgage Loans

Commercial mortgage loans (“CMLs”) represented approximately 5% and 4% of our total investments reported on the unaudited Condensed Consolidated Balance Sheets for September 30, 2025 and December 31, 2024, respectively. The mortgage loans in our investment portfolio are generally comprised of high quality commercial first lien and mezzanine real estate loans. Mortgage loans are primarily on income producing properties including industrial properties, retail buildings, multifamily properties, and office buildings. We diversify our CML portfolio by geographic region and property type to attempt to reduce concentration risk. We continuously evaluate CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt. The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables:

			September 30, 2025												December 31, 2024
			Gross Carrying Value						% of Total						Gross Carrying Value						% of Total
Property Type:			(In millions)												(In millions)
Hotel			$	17					1		%				$	17					1		%
Industrial			705						21						657						24
Mixed Use			20						1						11						—
Multifamily			1,156						35						1,006						37
Office			349						11						349						13
Retail			367						11						98						4
Student Housing			83						3						83						3
Other			606						17						501						18
Total CMLs, gross of valuation allowance			$	3,303					100		%				$	2,722					100		%
Allowance for expected credit loss			(19)												(17)
Total CMLs, net of valuation allowance			$	3,284											$	2,705
U.S. Region:
East North Central			$	126					4		%				$	98					4		%
East South Central			87						3						75						3
Middle Atlantic			358						11						354						13
Mountain			421						13						409						15
New England			187						6						164						6
Pacific			732						22						706						26
South Atlantic			1,099						32						683						25
West North Central			67						2						62						2
West South Central			226						7						171						6
Total CMLs, gross of valuation allowance			$	3,303					100		%				$	2,722					100		%
Allowance for expected credit loss			(19)												(17)
Total CMLs, net of valuation allowance			$	3,284											$	2,705

An individual loan, or a portion thereof, is charged off when it is determined to be uncollectible. There were no charge offs for CMLs during the nine months ended September 30, 2025 and for the year ended December 31, 2024. CMLs segregated by aging of the loans (by year of origination) as of September 30, 2025 and December 31, 2024 were as follows, gross of valuation allowances:

			September 30, 2025
			Amortized Cost by Origination Year
			2025						2024						2023						2022						2021						Prior						Total
CMLs			(In millions)
Current (less than 30 days past due)			$	588					$	292					$	238					$	291					$	1,253					$	631					$	3,293
30-89 days past due			—						—						—						—						—						—						—
90 days or more past due			—						—						—						—						—						10						10
Total CMLs			$	588					$	292					$	238					$	291					$	1,253					$	641					$	3,303

			December 31, 2024
			Amortized Cost by Origination Year
			2024						2023						2022						2021						2020						Prior						Total
CMLs			(In millions)
Current (less than 30 days past due)			$	273					$	227					$	290					$	1,253					$	469					$	201					$	2,713
30-89 days past due			—						—						—						—						—						—						—
90 days or more past due			—						—						—						—						—						9						9
Total CMLs			$	273					$	227					$	290					$	1,253					$	469					$	210					$	2,722

Loan-to-value (“LTV”) and debt service coverage (“DSC”) ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.00 indicates that a property’s operations do not generate sufficient income to cover debt payments. We normalize our DSC ratios to a 25 year amortization period for purposes of our general loan allowance evaluation.

The following tables present the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated LTV ratios, gross of valuation allowances at September 30, 2025 and December 31, 2024:

			Debt-Service Coverage Ratios																		Total Amount						% of Total						Estimated Fair Value						% of Total
			>1.25						1.00 - 1.25						<1.00
September 30, 2025			(In millions)
LTV Ratios:
Less than 50.00%			$	658					$	16					$	—											$	674					20		%				$	657					21		%
50.00% to 59.99%			912						29						12												953						29						881						29
60.00% to 74.99%			1,467						192						—												1,659						50						1,513						49
75.00% to 84.99%			4						4						9												17						1						17						1
CMLs			$	3,041					$	241					$	21											$	3,303					100		%				$	3,068					100		%
December 31, 2024
LTV Ratios:
Less than 50.00%			$	490					$	34					$	—											$	524					19		%				$	501					21		%
50.00% to 59.99%			803						112						12												927						34						826						34
60.00% to 74.99%			1,238						16						—												1,254						46						1,060						44
75.00% to 84.99%			4						4						9												17						1						17						1
CMLs			$	2,535					$	166					$	21											$	2,722					100		%				$	2,404					100		%

			September 30, 2025
			Amortized Cost by Origination Year
			2025						2024						2023						2022						2021						Prior						Total
CMLs			(In millions)
LTV Ratios:
Less than 50.00%			$	146					$	49					$	110					$	20					$	75					$	274					$	674
50.00% to 59.99%			157						29						53						149						321						244						953
60.00% to 74.99%			285						210						71						113						857						123						1,659
75.00% to 84.99%			—						4						4						9						—						—						17
Total CMLs			$	588					$	292					$	238					$	291					$	1,253					$	641					$	3,303
CMLs
DSC Ratios
Greater than 1.25x			$	527					$	141					$	226					$	279					$	1,241					$	627					$	3,041
1.00x - 1.25x			61						151						12						3						—						14						241
Less than 1.00x			—						—						—						9						12						—						21
Total CMLs			$	588					$	292					$	238					$	291					$	1,253					$	641					$	3,303

			December 31, 2024
			Amortized Cost by Origination Year
			2024						2023						2022						2021						2020						Prior						Total
CMLs			(In millions)
LTV Ratios:
Less than 50.00%			$	66					$	99					$	19					$	74					$	189					$	77					$	524
50.00% to 59.99%			112						53						149						321						159						133						927
60.00% to 74.99%			91						71						113						858						121						—						1,254
75.00% to 84.99%			4						4						9						—						—						—						17
Total CMLs			$	273					$	227					$	290					$	1,253					$	469					$	210					$	2,722
CMLs
DSC Ratios
Greater than 1.25x			$	140					$	215					$	278					$	1,241					$	469					$	192					$	2,535
1.00x - 1.25x			133						12						3						—						—						18						166
Less than 1.00x			—						—						9						12						—						—						21
Total CMLs			$	273					$	227					$	290					$	1,253					$	469					$	210					$	2,722

We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. As of September 30, 2025 and December 31, 2024, we had one CML that was delinquent in principal or interest payments as shown in the tables above.

Residential Mortgage Loans

Residential mortgage loans (“RMLs”) represented approximately 6% and 5% of our total investments reported on the unaudited Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively. Our RMLs are primarily closed end, amortizing loans and 100% of the properties are located in the United States. We diversify our RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances:

			September 30, 2025
			Amortized Cost						% of Total
U.S. States:			(In millions)
Florida			$	199					5		%
New York			186						5
California			177						5
All other states (a)			3,596						85
Total RMLs, gross of valuation allowance			4,165						100		%
Allowance for expected credit loss			(58)
Total RMLs, net of valuation allowance			$	4,107

(a)     The individual concentration of each state is less than 5% as of September 30, 2025.

			December 31, 2024
			Amortized Cost						% of Total
U.S. States:			(In millions)
Florida			$	164					5		%
All other states (a)			3,110						95
Total RMLs, gross of valuation allowance			3,274						100		%
Allowance for expected credit loss			(53)
Total RMLs, net of valuation allowance			$	3,221

(a)     The individual concentration of each state is less than 5% as of December 31, 2024.

RMLs have a primary credit quality indicator of either a performing or non-performing loan. We define non-performing RMLs as those that are 90 or more days past due or in non-accrual status, which is assessed monthly. The credit quality of RMLs as of September 30, 2025 and December 31, 2024, was as follows:

			September 30, 2025												December 31, 2024
			Amortized Cost						% of Total						Amortized Cost						% of Total
Performance indicators:			(In millions)												(In millions)
Performing			$	4,093					98		%				$	3,188					97		%
Non-performing			72						2						86						3
Total RMLs, gross of valuation allowance			4,165						100		%				3,274						100		%
Allowance for expected loan loss			(58)												(53)
Total RMLs, net of valuation allowance			$	4,107											$	3,221

An individual loan, or a portion thereof, is charged off when it is determined to be uncollectible. There were no charge offs recorded by RMLs during the nine months ended September 30, 2025 or during the year ended December 31, 2024. RMLs segregated by aging of the loans (by year of origination) as of September 30, 2025 and December 31, 2024, were as follows, gross of valuation allowances:

			September 30, 2025
			Amortized Cost by Origination Year
			2025						2024						2023						2022						2021						Prior						Total
RMLs			(In millions)
Current (less than 30 days past due)			$	931					$	752					$	353					$	846					$	749					$	425					$	4,056
30-89 days past due			6						6						3						10						3						9						37
90 days or more past due			—						5						4						11						21						31						72
Total RMLs			$	937					$	763					$	360					$	867					$	773					$	465					$	4,165

			December 31, 2024
			Amortized Cost by Origination Year
			2024						2023						2022						2021						2020						Prior						Total
RMLs			(In millions)
Current (less than 30 days past due)			$	610					$	368					$	911					$	805					$	162					$	312					$	3,168
30-89 days past due			1						6						4						6						1						3						21
90 days or more past due			3						2						13						29						13						25						85
Total RMLs			$	614					$	376					$	928					$	840					$	176					$	340					$	3,274

    Non-accrual loans by amortized cost as of September 30, 2025 and December 31, 2024, were as follows:

			September 30, 2025						December 31, 2024
Amortized cost of loans on non-accrual			(In millions)
Residential mortgage:			$	72					$	85
Commercial mortgage:			10						9
Total non-accrual mortgages			$	82					$	94

    

Immaterial interest income was recognized on non-accrual financing receivables for the three and nine months ended September 30, 2025 and 2024.

It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes 90 days or more delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of September 30, 2025 and December 31, 2024, we had $82 million and $94 million, respectively, of mortgage loans that were over 90 days past due.

As of September 30, 2025 and December 31, 2024, we had $72 million and $81 million, respectively, of residential mortgage loans that were in the process of foreclosure.

Allowance for Expected Credit Loss

We estimate expected credit losses for our commercial and residential mortgage loan portfolios using a probability of default/loss given default model. Significant inputs to this model include, where applicable, the loans' current performance, underlying collateral type, location, contractual life, LTV, DSC, and Debt to Income or FICO. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three-year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings.

The allowances for our mortgage loan portfolio are summarized as follows:

									Three months ended September 30, 2025																		Nine months ended September 30, 2025
																					(In millions)																		(In millions)
																					Residential Mortgage						Commercial Mortgage						Total						Residential Mortgage						Commercial Mortgage						Total
Beginning Balance																					$	(58)					$	(17)					$	(75)					$	(53)					$	(17)					$	(70)
Provision expense for loan losses																					—						(2)						(2)						(5)						(2)						(7)
Ending Balance																					$	(58)					$	(19)					$	(77)					$	(58)					$	(19)					$	(77)

			Three months ended September 30, 2024																		Nine months ended September 30, 2024
			(In millions)																		(In millions)
			Residential Mortgage						Commercial Mortgage						Total						Residential Mortgage						Commercial Mortgage						Total
Beginning Balance			$	(50)					$	(14)					$	(64)					$	(54)					$	(12)					$	(66)
Provision (expense) benefit for loan losses			(1)						(4)						(5)						3						(6)						(3)
Ending Balance			$	(51)					$	(18)					$	(69)					$	(51)					$	(18)					$	(69)

An allowance for expected credit loss is not measured on accrued interest income for CMLs as we have a process to write-off interest on loans that enter into non-accrual status (90 days or more past due). Allowances for expected credit losses are measured on accrued interest income for RMLs and were immaterial for the nine months ended September 30, 2025 and 2024.

As of September 30, 2025 and December 31, 2024, the accrued interest receivable balance on CMLs totaled $11 million and $8 million, respectively, and the accrued interest receivable on RMLs totaled $36 million and $28 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed Consolidated Balance Sheets.

Interest and Investment Income

The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows:

			Three months ended September 30,												Nine months ended September 30,
			2025						2024						2025						2024
			(In millions)												(In millions)
Fixed maturity securities, available-for-sale			$	606					$	583					$	1,747					$	1,679
Equity securities			8						8						26						26
Preferred securities			6						7						19						25
Mortgage loans			97						69						266						200
Invested cash and short-term investments			37						72						139						172
Limited partnerships			91						84						207						234
Tax deferred property exchange income			33						36						58						102
Other investments			46						32						131						88
Gross investment income			924						891						2,593						2,526
Investment expense			(67)						(76)						(199)						(218)
Interest and investment income			$	857					$	815					$	2,394					$	2,308

Interest and investment income is shown net of amounts attributable to certain funds withheld reinsurance agreements, which is passed along to the reinsurer in accordance with the terms of these agreements. Interest and investment income attributable to these agreements, and thus excluded from the totals in the table above, was $219 million and $77 million for the three months ended September 30, 2025 and 2024, respectively, and $592 million and $463 million for the nine months ended September 30, 2025 and 2024, respectively.

Recognized Gains and Losses, Net

Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows:

			Three months ended September 30,												Nine months ended September 30,
			2025						2024						2025						2024
			(In millions)												(In millions)
Net realized (losses) gains on fixed maturity available-for-sale securities			$	(10)					$	(1)					$	(11)					$	3
Net realized/unrealized (losses) gains on equity securities (1)			(39)						48						(111)						48
Net realized/unrealized gains on preferred securities (2)			9						17						6						29
Net realized/unrealized (losses) gains on other invested assets			(5)						3						68						73
Change in allowance for expected credit losses			1						—						(44)						(32)
Derivatives and embedded derivatives:
Realized (losses) gains on certain derivative instruments			(49)						30						(124)						65
Unrealized gains on certain derivative instruments			326						347						358						450
Change in fair value of reinsurance related embedded derivatives (3)			(60)						(178)						(162)						(186)
Change in fair value of other derivatives and embedded derivatives			3						3						7						6
Net realized/unrealized gains on derivatives and embedded derivatives			220						202						79						335
Recognized gains and losses, net			$	176					$	269					$	(13)					$	456

(1) Includes net valuation (losses) gains of $(43) million and $31 million for the three months ended September 30, 2025 and 2024, respectively, and $(121) million and $(42) million for the nine months ended September 30, 2025 and 2024, respectively.

(2) Includes net valuation gains of $10 million and $18 million for the three months ended September 30, 2025 and 2024, respectively, and $7 million and $30 million for the nine months ended September 30, 2025 and 2024, respectively.

(3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties.

Recognized gains and losses, net is shown net of amounts attributable to certain funds withheld reinsurance agreements, which are passed along to the reinsurer in accordance with the terms of these agreements. Recognized (losses) and gains attributable to these agreements, and thus excluded from the totals in the table above, were $(77) million and $(176) million for the three and nine months ended September 30, 2025, respectively, and $177 million and $(186) million for the three and nine months ended September 30, 2024, respectively.

The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows:

			Three months ended September 30,												Nine months ended September 30,
			2025						2024						2025						2024
			(In millions)
Proceeds			$	925					$	1,476					$	3,628					$	2,638
Gross gains			10						18						26						36
Gross losses			(3)						(20)						(24)						(52)

Unconsolidated Variable Interest Entities

We own investments in variable interest entities ("VIEs") that are not consolidated within our financial statements. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. VIEs are consolidated by their ‘primary beneficiary,’ a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While we participate in the benefits from VIEs in which we invest, but do not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under our common control. It is for this reason that we are not considered the primary beneficiary for the VIE investments that are not consolidated.

We invest in various limited partnerships and limited liability companies primarily as a passive investor. These investments are primarily in credit funds with a bias towards current income, real assets, or private equity. Limited partnership and limited liability company interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our unaudited Condensed Consolidated Balance Sheets. In addition, we invest in structured investments, which may be VIEs, but for which we are not the primary beneficiary. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities, and residential mortgage-backed securities included in Fixed maturity securities available for sale on our unaudited Condensed Consolidated Balance Sheets.

For limited partnerships, our maximum loss exposure with respect to these VIEs is limited to the investment carry amounts reported in our unaudited Condensed Consolidated Balance Sheets in addition to any required unfunded commitments. For fixed maturity securities, our maximum loss exposure with respect to these VIEs is limited to the amortized cost in addition to any required unfunded commitments (also refer to Note F Commitments and Contingencies).

The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of September 30, 2025 and December 31, 2024:

			September 30, 2025												December 31, 2024
			(In millions)												(In millions)
			Carrying Value						Maximum Loss Exposure						Carrying Value						Maximum Loss Exposure
Investment in unconsolidated affiliates			$	4,903					$	6,051					$	3,565					$	4,703
Fixed maturity securities			26,250						27,136						23,242						24,242
Total unconsolidated VIE investments			$	31,153					$	33,187					$	26,807					$	28,945

X

- Definition

The entire disclosure for investment.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/320/tableOfContent

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Topic 321
-Publisher FASB
-URI https://asc.fasb.org/321/tableOfContent

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Topic 325
-Publisher FASB
-URI https://asc.fasb.org/325/tableOfContent

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