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Contractholder Funds

9 Months Ended

Sep. 30, 2025

Insurance [Abstract]

Contractholder Funds

Market Risk Benefits

The following table presents the balances of and changes in MRBs associated with indexed annuities and fixed rate annuities for the nine months ended September 30, 2025 and the year ended December 31, 2024:

			September 30, 2025												December 31, 2024
			Indexed annuities						Fixed rate annuities						Indexed annuities						Fixed rate annuities
			(In millions)
Balance, beginning of period, net liability			$	420					$	1					$	314					$	1
Balance, beginning of period, before effect of changes in the instrument-specific credit risk			$	322					$	1					$	209					$	1
Issuances and benefit payments			97						—						109						—
Attributed fees collected and interest accrual			111						—						147						—
Actual policyholder behavior different from expected			41						—						(5)						—
Changes in assumptions and other			16						—						24						—
Effects of market related movements			20						—						(162)						—
Balance, end of period, before effect of changes in the instrument-specific credit risk			607						1						322						1
Effect of changes in the instrument-specific credit risk			137						—						98						—
Balance, end of period, net liability			744						1						420						1
Less: reinsured market risk benefits			157						—						61						—
Balance, end of period, net of reinsurance			$	587					$	1					$	359					$	1
Weighted-average attained age of policyholders weighted by total AV (years)			67.89						84.43						67.98						72.58
Net amount at risk			$	1,754					$	2					$	1,327					$	2

The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRBs amounts in the accompanying unaudited Condensed Consolidated Balance Sheets:

			September 30, 2025																		December 31, 2024
			Direct						Reinsured						Total						Direct						Reinsured						Total
			(In millions)
MRB asset
Indexed annuities			$	83					$	159					$	242					$	128					$	61					$	189
Fixed rate annuities			—						—						—						—						—						—
Total MRB asset			$	83					$	159					$	242					$	128					$	61					$	189
MRB liability
Indexed annuities			$	827					$	2					$	829					$	548					$	—					$	548
Fixed rate annuities			1						—						1						1						—						1
Total MRB liability			$	828					$	2					$	830					$	549					$	—					$	549

The net MRB liability increased for the nine months ended September 30, 2025, primarily as a result of collection of attributed fees, interest accrual, and MRB reserves for contracts issued within the period.

For the nine months ended September 30, 2025, notable changes made to the inputs to the fair value estimates of MRBs calculations included an increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and decreases in the equity market related projections resulted in an increase in the net amount at risk associated with indexed annuities, leading to an unfavorable change in the value of the associated MRBs.

The net MRB liability increased for the year ended December 31, 2024, primarily as a result of collection of attributed fees, interest accrual, MRB reserves for contracts issued within the period, and changes in actuarial assumptions. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections.

For the year ended December 31, 2024, notable changes made to the inputs to the fair value estimates of MRBs calculations included an increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs; and an increase in the rider benefit utilization assumption, leading to an unfavorable change in the value of the associated MRBs.

In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. F&G reviews cash flow assumptions annually, generally in the third quarter. In 2024 and 2025, F&G undertook a review of all significant assumptions and revised several assumptions relating to their deferred annuities (indexed annuities and fixed rate annuities) with MRBs. For the nine months ended September 30, 2025, F&G updated assumptions including surrender rates, mortality, partial withdrawals, projected CPI, and option budgets. All updates to these assumptions brought F&G more in line with our Company and overall industry experience since the prior assumption updates. These updates, in total, led to an increase in the net MRB liability for the nine months ended September 30, 2025. For the year ended December 31, 2024, F&G updated assumptions including surrender rates, rider benefit election utilization, mortality improvement, and option budgets. All updates to these assumptions brought F&G more in line with our Company and overall industry experience since the prior assumption updates. These updates, in total, led to an increase in the net MRB liability for the year ended December 31, 2024.

Contractholder Funds

The following tables summarize balances of and changes in contractholder funds’ account balances:

			September 30, 2025
			Indexed annuities						Fixed rate annuities						Universal life						FABN (b)						FHLB (b)
			(Dollars in millions)
Balance, beginning of year			$	30,235					$	17,442					$	2,817					$	2,463					$	2,852
Issuances			4,862						3,444						168						1,148						1,461
Premiums received			2,062						—						437						—						—
Policy charges (a)			(2,197)						—						(278)						—						—
Surrenders and withdrawals			(2,819)						(1,720)						(99)						—						—
Benefit payments			(405)						(272)						(18)						(363)						(1,715)
Interest credited			564						638						132						73						75
Other			5						(1)						—						3						—
Balance, end of period			32,307						19,531						3,159						3,324						2,673
Reconciling items (c)			391						—						120						12						—
Gross liability, end of period			32,698						19,531						3,279						3,336						2,673
Less: Reinsurance			2,454						12,909						885						—						—
Net liability, after reinsurance			$	30,244					$	6,622					$	2,394					$	3,336					$	2,673
Weighted-average crediting rate			2.44		%				4.71		%				6.05		%				N/A						N/A
Net amount at risk (d)			N/A						N/A						$	29,483					N/A						N/A
Cash surrender value (e)			$	30,067					$	18,266					$	2,431					N/A						N/A

(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance.

(b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials.

(c) The reconciling items reconcile the account balance to the gross GAAP liability. For indexed annuities and universal life, the reconciling items represent embedded derivatives and include the combination of the host contracts and the fair value of the embedded derivatives. For FABN, the reconciling items represent basis adjustments due to the impact of fair value hedge accounting.

(d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.

(e) These amounts are gross of reinsurance.

			December 31, 2024
			Indexed annuities						Fixed rate annuities						Universal life						FABN (b)						FHLB (b)
			(Dollars in millions)
Balance, beginning of year			$	27,164					$	13,443					$	2,391					$	2,613					$	2,539
Issuances			6,649						5,125						208						600						1,804
Premiums received			120						1						495						—						—
Policy charges (a)			(195)						—						(315)						—						—
Surrenders and withdrawals			(3,832)						(1,479)						(101)						—						—
Benefit payments			(495)						(315)						(18)						(820)						(1,606)
Interest credited			821						667						157						71						117
Other			3						—						—						(1)						(2)
Balance, end of period			30,235						17,442						2,817						2,463						2,852
Embedded derivative adjustment (c)			219						—						79						—						—
Gross liability, end of period			30,454						17,442						2,896						2,463						2,852
Less: Reinsurance			861						11,009						877						—						—
Net liability, after reinsurance			$	29,593					$	6,433					$	2,019					$	2,463					$	2,852
Weighted-average crediting rate			2.90		%				4.42		%				6.20		%				N/A						N/A
Net amount at risk (d)			N/A						N/A						$	74,279					N/A						N/A
Cash surrender value (e)			$	27,865					$	16,266					$	2,177					N/A						N/A

(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance.

(b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials.

(c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives.

(d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.

(e) These amounts are gross of reinsurance.

The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the accompanying unaudited Condensed Consolidated Balance Sheets:

			September 30, 2025						December 31, 2024
			(In millions)
Indexed annuities			$	32,698					$	30,454
Fixed rate annuities			19,531						17,442
Immediate annuities			270						286
Universal life			3,279						2,896
Traditional life			5						5
FABN			3,336						2,463
FHLB			2,673						2,852
PRT			6						6
Total			$	61,798					$	56,404

Annually, typically in the third quarter, F&G reviews assumptions associated with reserves for policy benefits and product guarantees. For the nine months ended September 30, 2025 and the year ended December 31, 2024, based on policyholder behavior, experience, and interest rate movements, F&G reflected updates to surrender assumptions for recent and expected near term policyholder behavior, as well as updated certain indexed annuities assumptions used to calculate the fair value of the embedded derivative component within Contractholder funds. These changes resulted in decreases in Contractholder funds of approximately $24 million and $89 million for the nine months ended September 30, 2025 and for the year ended December 31, 2024, respectively.

The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums:

						September 30, 2025
Range of guaranteed minimum crediting rate						At Guaranteed Minimum						1 Basis Point-50 Basis Points Above						51 Basis Points-150 Basis Points Above						Greater Than 150 Basis Points Above						Total
Indexed annuities						(In millions)
Up to 1.50%						$	647					$	523					$	297					$	865					$	2,332
1.51%-2.50%						563						16						497						600						1,676
Greater than 2.50%						222						—						—						1						223
Subtotal						$	1,432					$	539					$	794					$	1,466					$	4,231
No guaranteed minimum crediting rate																														28,076
Total																														$	32,307
Fixed rate annuities
Up to 1.50%						$	73					$	16					$	884					$	15,839					$	16,812
1.51%-2.50%						4						6						18						466						494
Greater than 2.50%						746						2						5						1,472						2,225
Total						$	823					$	24					$	907					$	17,777					$	19,531
Universal life
Up to 1.50%						$	2,765					$	9					$	—					$	29					$	2,803
1.51%-2.50%						—						—						—						—						—
Greater than 2.50%						355						—						1						—						356
Total						$	3,120					$	9					$	1					$	29					$	3,159

						December 31, 2024
Range of guaranteed minimum crediting rate						At Guaranteed Minimum						1 Basis Point-50 Basis Points Above						51 Basis Points-150 Basis Points Above						Greater Than 150 Basis Points Above						Total
Indexed annuities						(In millions)
Up to 1.50%						$	721					$	596					$	309					$	880					$	2,506
1.51%-2.50%						432						1						313						485						1,231
Greater than 2.50%						253						—						—						14						267
Subtotal						$	1,406					$	597					$	622					$	1,379					$	4,004
No guaranteed minimum crediting rate																														26,231
Total																														$	30,235
Fixed rate annuities
Up to 1.50%						$	57					$	20					$	773					$	14,407					$	15,257
1.51%-2.50%						4						7						20						462						493
Greater than 2.50%						804						2						5						881						1,692
Total						$	865					$	29					$	798					$	15,750					$	17,442
Universal life
Up to 1.50%						$	2,421					$	7					$	—					$	24					$	2,452
1.51%-2.50%						—						—						—						—						—
Greater than 2.50%						364						—						1						—						365
Total						$	2,785					$	7					$	1					$	24					$	2,817

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- Definition

The entire disclosure for long duration contracts. This may include the information pertinent to an understanding of the types of traditional and nontraditional insurance and investment contracts sold and serviced, including the nature and amount of estimated guaranteed obligations pertaining to such contracts and the assumptions underlying such estimated amounts, hedging strategies, and sales inducements offered.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/944/tableOfContent

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (u)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480016/944-40-65-2

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