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Fair Value of Financial Instruments | 6 Months Ended
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Jun. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial Instruments Carried at Fair Value The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:
| As of June 30, 2025
| Quoted |  |  |  |  |  |
| Prices |  |  |  |  |  |
| in Active |  |  |  |  |  |
| Markets for |  | Significant |  | Significant |  |
| Identical |  | Observable |  | Unobservable |  | Total
| Assets |  | Inputs |  | Inputs |  | Fair
| (Level 1) |  | (Level 2) |  | (Level 3) |  | Value
Assets |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |
Corporate bonds | $ | – |  |  | $ | 64,296 |  |  | $ | 3,076 |  |  | $ | 67,372 |
U.S. government bonds | 544 |  |  | 19 |  |  | – |  |  | 563 |
State and municipal bonds | – |  |  | 2,254 |  |  | – |  |  | 2,254 |
Foreign government bonds | – |  |  | 239 |  |  | – |  |  | 239 |
RMBS | – |  |  | 1,984 |  |  | 79 |  |  | 2,063 |
CMBS | – |  |  | 1,931 |  |  | 41 |  |  | 1,972 |
ABS | – |  |  | 11,658 |  |  | 3,000 |  |  | 14,658 |
Hybrid and redeemable preferred securities | 44 |  |  | 129 |  |  | 92 |  |  | 265 |
Trading securities | – |  |  | 1,613 |  |  | 296 |  |  | 1,909 |
Equity securities | 4 |  |  | 254 |  |  | 83 |  |  | 341 |
Mortgage loans on real estate | – |  |  | – |  |  | 232 |  |  | 232 |
Derivative investments (1) | – |  |  | 13,948 |  |  | 65 |  |  | 14,013 |
Other investments – short-term investments | – |  |  | 312 |  |  | 24 |  |  | 336 |
MRB assets | – |  |  | – |  |  | 4,577 |  |  | 4,577 |
Other assets: |  |  |  |  |  |  |
Ceded MRBs | – |  |  | – |  |  | 2 |  |  | 2 |
Indexed annuity ceded embedded derivatives | – |  |  | – |  |  | 1,236 |  |  | 1,236 |
Separate account assets | 371 |  |  | 172,571 |  |  | – |  |  | 172,942 |
Total assets | $ | 963 |  |  | $ | 271,208 |  |  | $ | 12,803 |  |  | $ | 284,974 |
Liabilities |  |  |  |  |  |  |
Policyholder account balances – RILA, fixed annuity |  |  |  |  |  |  |
and IUL contracts | $ | – |  |  | $ | – |  |  | $ | (13,089) |  |  | $ | (13,089) |
Funds withheld reinsurance liabilities – reinsurance-related |  |  |  |  |  |  |
embedded derivatives | – |  |  | 169 |  |  | (309) |  |  | (140) |
MRB liabilities | – |  |  | – |  |  | (1,205) |  |  | (1,205) |
Other liabilities: |  |  |  |  |  |  |
Ceded MRBs | – |  |  | – |  |  | (341) |  |  | (341) |
Derivative liabilities (1) | – |  |  | (5,648) |  |  | (180) |  |  | (5,828) |
Total liabilities | $ | – |  |  | $ | (5,479) |  |  | $ | (15,124) |  |  | $ | (20,603) |
| As of December 31, 2024
| Quoted |  |  |  |  |  |
| Prices |  |  |  |  |  |
| in Active |  |  |  |  |  |
| Markets for |  | Significant |  | Significant |  |
| Identical |  | Observable |  | Unobservable |  | Total
| Assets |  | Inputs |  | Inputs |  | Fair
| (Level 1) |  | (Level 2) |  | (Level 3) |  | Value
Assets |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |
Corporate bonds | $ | – |  |  | $ | 63,585 |  |  | $ | 2,865 |  |  | $ | 66,450 |
U.S. government bonds | 371 |  |  | 20 |  |  | – |  |  | 391 |
State and municipal bonds | – |  |  | 2,371 |  |  | – |  |  | 2,371 |
Foreign government bonds | – |  |  | 237 |  |  | – |  |  | 237 |
RMBS | – |  |  | 1,851 |  |  | 12 |  |  | 1,863 |
CMBS | – |  |  | 1,657 |  |  | 8 |  |  | 1,665 |
ABS | – |  |  | 11,781 |  |  | 2,099 |  |  | 13,880 |
Hybrid and redeemable preferred securities | 48 |  |  | 133 |  |  | 73 |  |  | 254 |
Trading securities | – |  |  | 1,760 |  |  | 265 |  |  | 2,025 |
Equity securities | – |  |  | 260 |  |  | 34 |  |  | 294 |
Mortgage loans on real estate | – |  |  | – |  |  | 232 |  |  | 232 |
Derivative investments (1) | – |  |  | 13,884 |  |  | 3 |  |  | 13,887 |
Other investments – short-term investments | – |  |  | 369 |  |  | 23 |  |  | 392 |
MRB assets | – |  |  | – |  |  | 4,860 |  |  | 4,860 |
Other assets: |  |  |  |  |  |  |
Ceded MRBs | – |  |  | – |  |  | 2 |  |  | 2 |
Indexed annuity ceded embedded derivatives | – |  |  | – |  |  | 1,115 |  |  | 1,115 |
Separate account assets | 391 |  |  | 168,047 |  |  | – |  |  | 168,438 |
Total assets | $ | 810 |  |  | $ | 265,955 |  |  | $ | 11,591 |  |  | $ | 278,356 |
Liabilities |  |  |  |  |  |  |
Policyholder account balances – RILA, fixed annuity |  |  |  |  |  |  |
and IUL contracts | $ | – |  |  | $ | – |  |  | $ | (12,449) |  |  | $ | (12,449) |
Funds withheld reinsurance liabilities – reinsurance-related |  |  |  |  |  |  |
embedded derivatives | – |  |  | 204 |  |  | (234) |  |  | (30) |
MRB liabilities | – |  |  | – |  |  | (1,046) |  |  | (1,046) |
Other liabilities: |  |  |  |  |  |  |
Ceded MRBs | – |  |  | – |  |  | (381) |  |  | (381) |
Derivative liabilities (1) | – |  |  | (4,256) |  |  | (139) |  |  | (4,395) |
Total liabilities | $ | – |  |  | $ | (4,052) |  |  | $ | (14,249) |  |  | $ | (18,301) |
(1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. 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. The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in Note 8.
| For the Three Months Ended June 30, 2025 |  |  |  |  |  |
|  |  |  |  | Gains |  | Issuances, |  | Transfers |  |  |  |  |  |  |  |
|  |  | Items |  | (Losses) |  | Sales, |  | Into or |  |  |  |  |  |  |  |
|  |  | Included |  | in |  | Maturities, |  | Out |  |  |  |  |  |  |  |
| Beginning |  | in |  | OCI |  | Settlements, |  | of |  | Ending |  |  |  |  |  |
| Fair |  | Net |  | and |  | Calls, |  | Level 3, |  | Fair |  |  |  |  |  |
| Value |  | Income |  | Other (1) |  | Net |  | Net |  | Value |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 2,974 |  |  | $ | (24) |  |  | $ | 5 |  |  | $ | 32 |  |  | $ | 89 |  |  | $ | 3,076 |  |  |  |  |  |  |
RMBS | 19 |  |  | – |  |  | – |  |  | 67 |  |  | (7) |  |  | 79 |  |  |  |  |  |  |
CMBS | 30 |  |  | – |  |  | – |  |  | 18 |  |  | (7) |  |  | 41 |  |  |  |  |  |  |
ABS | 2,631 |  |  | – |  |  | (11) |  |  | 419 |  |  | (39) |  |  | 3,000 |  |  |  |  |  |  |
Hybrid and redeemable preferred |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
securities | 81 |  |  | – |  |  | – |  |  | 1 |  |  | 10 |  |  | 92 |  |  |  |  |  |  |
Trading securities | 287 |  |  | 3 |  |  | – |  |  | (1) |  |  | 7 |  |  | 296 |  |  |  |  |  |  |
Equity securities | 35 |  |  | (2) |  |  | – |  |  | (4) |  |  | 54 |  |  | 83 |  |  |  |  |  |  |
Mortgage loans on real estate | 232 |  |  | (1) |  |  | 2 |  |  | (1) |  |  | – |  |  | 232 |  |  |  |  |  |  |
Other investments | 15 |  |  | – |  |  | – |  |  | 9 |  |  | – |  |  | 24 |  |  |  |  |  |  |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ceded MRBs (3) | 2 |  |  | – |  |  | – |  |  | – |  | – |  |  | 2 |  |  |  |  |  |  |
Indexed annuity ceded embedded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
derivatives (4) | 1,092 |  |  | 73 |  |  | – |  |  | 71 |  |  | – |  |  | 1,236 |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Policyholder account balances – |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RILA, fixed annuity and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IUL contracts (4) | (10,807) |  |  | (2,146) |  |  | – |  |  | (136) |  |  | – |  |  | (13,089) |  |  |  |  |  |  |
Funds withheld reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
liabilities – reinsurance-related |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
embedded derivatives (4) | (323) |  |  | 14 |  |  | – |  |  | – |  | – |  |  | (309) |  |  |  |  |  |  |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ceded MRBs (3) | (314) |  |  | (27) |  |  | – |  |  | – |  | – |  |  | (341) |  |  |  |  |  |  |
Derivative liabilities | (109) |  |  | (6) |  |  | – |  |  | – |  | – |  |  | (115) |  |  |  |  |  |  |
Total, net | $ | (4,155) |  |  | $ | (2,116) |  |  | $ | (4) |  |  | $ | 475 |  |  | $ | 107 |  |  | $ | (5,693) |  |  |  |  |  |  |
| For the Three Months Ended June 30, 2024
|  |  |  |  | Gains |  | Issuances, |  | Transfers |  |
|  |  | Items |  | (Losses) |  | Sales, |  | Into or |  |
|  |  | Included |  | in |  | Maturities, |  | Out |  |
| Beginning |  | in |  | OCI |  | Settlements, |  | of |  | Ending
| Fair |  | Net |  | and |  | Calls, |  | Level 3, |  | Fair
| Value |  | Income |  | Other (1) |  | Net |  | Net |  | Value
Assets |  |  |  |  |  |  |  |  |  |  |
Investments: (2) |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 2,489 |  |  | $ | – |  |  | $ | (8) |  |  | $ | 192 |  |  | $ | (92) |  |  | $ | 2,581 |
RMBS | 12 |  |  | – |  |  | – |  |  | 6 |  |  | – |  |  | 18 |
CMBS | 8 |  |  | – |  |  | – |  |  | 15 |  |  | – |  |  | 23 |
ABS | 1,692 |  |  | – |  |  | 7 |  |  | 365 |  |  | (67) |  |  | 1,997 |
Hybrid and redeemable preferred |  |  |  |  |  |  |  |  |  |  |
securities | 51 |  |  | – |  |  | (1) |  |  | – |  |  | – |  |  | 50 |
Trading securities | 271 |  |  | – |  |  | – |  |  | 2 |  |  | – |  |  | 273 |
Equity securities | 39 |  |  | – |  |  | – |  |  | (1) |  |  | – |  |  | 38 |
Mortgage loans on real estate | 289 |  |  | 4 |  |  | – |  |  | (35) |  |  | – |  |  | 258 |
Derivative investments | 1 |  |  | (7) |  |  | – |  |  | (2) |  |  | – |  |  | (8) |
Other assets: |  |  |  |  |  |  |  |  |  |  |
Ceded MRBs (3) | 2 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 2 |
Indexed annuity ceded embedded |  |  |  |  |  |  |  |  |  |  |
derivatives (4) | 973 |  |  | 11 |  |  | – |  |  | (17) |  |  | – |  |  | 967 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Policyholder account balances – |  |  |  |  |  |  |  |  |  |  |
RILA, fixed annuity and |  |  |  |  |  |  |  |  |  |  |
IUL contracts (4) | (10,896) |  |  | (339) |  |  | – |  |  | (182) |  |  | – |  |  | (11,417) |
Funds withheld reinsurance |  |  |  |  |  |  |  |  |  |  |
liabilities – reinsurance-related |  |  |  |  |  |  |  |  |  |  |
embedded derivatives (4) | (583) |  |  | 379 |  |  | – |  |  | – |  |  | – |  |  | (204) |
Other liabilities – ceded MRBs (3) | (360) |  |  | 16 |  |  | – |  |  | – |  |  | – |  |  | (344) |
Total, net | $ | (6,012) |  |  | $ | 64 |  |  | $ | (2) |  |  | $ | 343 |  |  | $ | (159) |  |  | $ | (5,766) |
| For the Six Months Ended June 30, 2025
|  |  |  |  | Gains |  | Issuances, |  | Transfers |  |
|  |  | Items |  | (Losses) |  | Sales, |  | Into or |  |
|  |  | Included |  | in |  | Maturities, |  | Out |  |
| Beginning |  | in |  | OCI |  | Settlements, |  | of |  | Ending
| Fair |  | Net |  | and |  | Calls, |  | Level 3, |  | Fair
| Value |  | Income |  | Other (1) |  | Net |  | Net |  | Value
Assets |  |  |  |  |  |  |  |  |  |  |
Investments: (2) |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 2,865 |  |  | $ | (37) |  |  | $ | 6 |  |  | $ | 131 |  |  | $ | 111 |  |  | $ | 3,076 |
RMBS | 12 |  |  | – |  |  | – |  |  | 74 |  |  | (7) |  |  | 79 |
CMBS | 8 |  |  | – |  |  | – |  |  | 40 |  |  | (7) |  |  | 41 |
ABS | 2,099 |  |  | (21) |  |  | 7 |  |  | 897 |  |  | 18 |  |  | 3,000 |
Hybrid and redeemable preferred |  |  |  |  |  |  |  |  |  |  |
securities | 73 |  |  | – |  |  | – |  |  | 19 |  |  | – |  |  | 92 |
Trading securities | 265 |  |  | 4 |  |  | – |  |  | 3 |  |  | 24 |  |  | 296 |
Equity securities | 34 |  |  | (8) |  |  | – |  |  | 3 |  |  | 54 |  |  | 83 |
Mortgage loans on real estate | 232 |  |  | (2) |  |  | 4 |  |  | (2) |  |  | – |  |  | 232 |
Other investments (4) | 23 |  |  | – |  |  | – |  |  | 1 |  |  | – |  |  | 24 |
Other assets: |  |  |  |  |  |  |  |  |  |  |
Ceded MRBs (3) | 2 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 2 |
Indexed annuity ceded embedded |  |  |  |  |  |  |  |  |  |  |
derivatives (4) | 1,115 |  |  | 50 |  |  | – |  |  | 71 |  |  | – |  |  | 1,236 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Policyholder account balances – |  |  |  |  |  |  |  |  |  |  |
RILA, fixed annuity and |  |  |  |  |  |  |  |  |  |  |
IUL contracts (4) | (12,449) |  |  | (472) |  |  | – |  |  | (168) |  |  | – |  |  | (13,089) |
Funds withheld reinsurance |  |  |  |  |  |  |  |  |  |  |
liabilities – reinsurance-related |  |  |  |  |  |  |  |  |  |  |
embedded derivatives (4) | (234) |  |  | (75) |  |  | – |  |  | – |  |  | – |  |  | (309) |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |
Ceded MRBs (3) | (381) |  |  | 40 |  |  | – |  |  | – |  |  | – |  |  | (341) |
Derivative liabilities | (136) |  |  | 21 |  |  | – |  |  | – |  |  | – |  |  | (115) |
Total, net | $ | (6,472) |  |  | $ | (500) |  |  | $ | 17 |  |  | $ | 1,069 |  |  | $ | 193 |  |  | $ | (5,693) |
| For the Six Months Ended June 30, 2024
|  |  |  |  | Gains |  | Issuances, |  | Transfers |  |
|  |  | Items |  | (Losses) |  | Sales, |  | Into or |  |
|  |  | Included |  | in |  | Maturities, |  | Out |  |
| Beginning |  | in |  | OCI |  | Settlements, |  | of |  | Ending
| Fair |  | Net |  | and |  | Calls, |  | Level 3, |  | Fair
| Value |  | Income |  | Other (1) |  | Net |  | Net |  | Value
Assets |  |  |  |  |  |  |  |  |  |  |
Investments: (2) |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 2,497 |  |  | $ | 2 |  |  | $ | (18) |  |  | $ | 214 |  |  | $ | (114) |  |  | $ | 2,581 |
State and municipal bonds | 5 |  |  | – |  |  | – |  |  | – |  |  | (5) |  |  | – |
RMBS | 13 |  |  | – |  |  | (1) |  |  | 6 |  |  | – |  |  | 18 |
CMBS | 8 |  |  | – |  |  | – |  |  | 15 |  |  | – |  |  | 23 |
ABS | 1,484 |  |  | – |  |  | 5 |  |  | 566 |  |  | (58) |  |  | 1,997 |
Hybrid and redeemable preferred |  |  |  |  |  |  |  |  |  |  |
securities | 48 |  |  | – |  |  | 2 |  |  | – |  |  | – |  |  | 50 |
Trading securities | 284 |  |  | – |  |  | – |  |  | (11) |  |  | – |  |  | 273 |
Equity securities | 42 |  |  | (3) |  |  | – |  |  | (1) |  |  | – |  |  | 38 |
Mortgage loans on real estate | 288 |  |  | 4 |  |  | 1 |  |  | (35) |  |  | – |  |  | 258 |
Derivative investments | 36 |  |  | 5 |  |  | – |  |  | 2 |  |  | (51) |  |  | (8) |
Other assets: |  |  |  |  |  |  |  |  |  |  |
Ceded MRBs (3) | 2 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 2 |
Indexed annuity ceded embedded |  |  |  |  |  |  |  |  |  |  |
derivatives (4) | 940 |  |  | 44 |  |  | – |  |  | (17) |  |  | – |  |  | 967 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Policyholder account balances – |  |  |  |  |  |  |  |  |  |  |
RILA, fixed annuity and |  |  |  |  |  |  |  |  |  |  |
IUL contracts (4) | (9,077) |  |  | (2,015) |  |  | – |  |  | (325) |  |  | – |  |  | (11,417) |
Funds withheld reinsurance |  |  |  |  |  |  |  |  |  |  |
liabilities – reinsurance-related |  |  |  |  |  |  |  |  |  |  |
embedded derivatives (4) | (789) |  |  | 585 |  |  | – |  |  | – |  |  | – |  |  | (204) |
Other liabilities – ceded MRBs (3) | (239) |  |  | (105) |  |  | – |  |  | – |  |  | – |  |  | (344) |
Total, net | $ | (4,458) |  |  | $ | (1,483) |  |  | $ | (11) |  |  | $ | 414 |  |  | $ | (228) |  |  | $ | (5,766) |
(1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5). (2) Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (3) Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above:
| For the Three Months Ended June 30, 2025 |  |  |  |  |  |
| Issuances |  | Sales |  | Maturities |  | Settlements |  | Calls |  | Total |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 414 |  |  | $ | (243) |  |  | $ | (6) |  |  | $ | (123) |  |  | $ | (10) |  |  | $ | 32 |  |  |  |  |  |  |
RMBS | 68 |  |  | – |  |  | – |  |  | (1) |  |  | – |  |  | 67 |  |  |  |  |  |  |
CMBS | 33 |  |  | (15) |  |  | – |  |  | – |  |  | – |  |  | 18 |  |  |  |  |  |  |
ABS | 577 |  |  | (40) |  |  | – |  |  | (77) |  |  | (41) |  |  | 419 |  |  |  |  |  |  |
Hybrid and redeemable preferred |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
securities | 1 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 1 |  |  |  |  |  |  |
Trading securities | 11 |  |  | (10) |  |  | – |  |  | (2) |  |  | – |  |  | (1) |  |  |  |  |  |  |
Equity securities | 7 |  |  | (11) |  |  | – |  |  | – |  |  | – |  |  | (4) |  |  |  |  |  |  |
Mortgage loans on real estate | 1 |  |  | – |  |  | – |  |  | (2) |  |  | – |  |  | (1) |  |  |  |  |  |  |
Other investments | 9 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 9 |  |  |  |  |  |  |
Other assets – indexed annuity ceded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
embedded derivatives | 67 |  |  | – |  |  | – |  |  | 4 |  |  | – |  |  | 71 |  |  |  |  |  |  |
Policyholder account balances – |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RILA, fixed annuity and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IUL contracts | (425) |  |  | – |  |  | – |  |  | 289 |  |  | – |  |  | (136) |  |  |  |  |  |  |
Total, net | $ | 763 |  |  | $ | (319) |  |  | $ | (6) |  |  | $ | 88 |  |  | $ | (51) |  |  | $ | 475 |  |  |  |  |  |  |
| For the Three Months Ended June 30, 2024
| Issuances |  | Sales |  | Maturities |  | Settlements |  | Calls |  | Total
Investments: |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 364 |  |  | $ | (58) |  |  | $ | – |  |  | $ | (114) |  |  | $ | – |  |  | $ | 192 |
RMBS | 6 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 6 |
CMBS | 15 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 15 |
ABS | 462 |  |  | (30) |  |  | – |  |  | (56) |  |  | (11) |  |  | 365 |
Trading securities | 5 |  |  | – |  |  | – |  |  | (3) |  |  | – |  |  | 2 |
Equity securities | – |  |  | (1) |  |  | – |  |  | – |  |  | – |  |  | (1) |
Mortgage loans on real estate | – |  |  | (30) |  |  | – |  |  | (5) |  |  | – |  |  | (35) |
Derivative investments | (3) |  |  | – |  |  | 1 |  |  | – |  |  | – |  |  | (2) |
Other assets – indexed annuity ceded |  |  |  |  |  |  |  |  |  |  |
embedded derivatives | 26 |  |  | – |  |  | – |  |  | (43) |  |  | – |  |  | (17) |
Policyholder account balances – |  |  |  |  |  |  |  |  |  |  |
RILA, fixed annuity and |  |  |  |  |  |  |  |  |  |  |
IUL contracts | (285) |  |  | – |  |  | – |  |  | 103 |  |  | – |  |  | (182) |
Total, net | $ | 590 |  |  | $ | (119) |  |  | $ | 1 |  |  | $ | (118) |  |  | $ | (11) |  |  | $ | 343 |
| For the Six Months Ended June 30, 2025
| Issuances |  | Sales |  | Maturities |  | Settlements |  | Calls |  | Total
Investments: |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 660 |  |  | $ | (288) |  |  | $ | (6) |  |  | $ | (225) |  |  | $ | (10) |  |  | $ | 131 |
RMBS | 75 |  |  | – |  |  | – |  |  | (1) |  |  | – |  |  | 74 |
CMBS | 55 |  |  | (15) |  |  | – |  |  | – |  |  | – |  |  | 40 |
ABS | 1,171 |  |  | (40) |  |  | (10) |  |  | (167) |  |  | (57) |  |  | 897 |
Hybrid and redeemable preferred |  |  |  |  |  |  |  |  |  |  |
securities | 21 |  |  | (2) |  |  | – |  |  | – |  |  | – |  |  | 19 |
Trading securities | 61 |  |  | (52) |  |  | – |  |  | (6) |  |  | – |  |  | 3 |
Equity securities | 15 |  |  | (12) |  |  | – |  |  | – |  |  | – |  |  | 3 |
Mortgage loans on real estate | 1 |  |  | (1) |  |  | – |  |  | (2) |  |  | – |  |  | (2) |
Other investments | 11 |  |  | – |  |  | (10) |  |  | – |  |  | – |  |  | 1 |
Other assets – indexed annuity ceded |  |  |  |  |  |  |  |  |  |  |
embedded derivatives | 93 |  |  | – |  |  | – |  |  | (22) |  |  | – |  |  | 71 |
Policyholder account balances – |  |  |  |  |  |  |  |  |  |  |
RILA, fixed annuity and |  |  |  |  |  |  |  |  |  |  |
IUL contracts | (656) |  |  | – |  |  | – |  |  | 488 |  |  | – |  |  | (168) |
Total, net | $ | 1,507 |  |  | $ | (410) |  |  | $ | (26) |  |  | $ | 65 |  |  | $ | (67) |  |  | $ | 1,069 |
| For the Six Months Ended June 30, 2024
| Issuances |  | Sales |  | Maturities |  | Settlements |  | Calls |  | Total
Investments: |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 641 |  |  | $ | (199) |  |  | $ | (2) |  |  | $ | (225) |  |  | $ | (1) |  |  | $ | 214 |
RMBS | 6 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 6 |
CMBS | 15 |  |  | – |  |  | – |  |  | – |  |  | – |  |  | 15 |
ABS | 726 |  |  | (30) |  |  | – |  |  | (119) |  |  | (11) |  |  | 566 |
Trading securities | 5 |  |  | (2) |  |  | – |  |  | (14) |  |  | – |  |  | (11) |
Equity securities | – |  |  | (1) |  |  | – |  |  | – |  |  | – |  |  | (1) |
Mortgage loans on real estate | 1 |  |  | (31) |  |  | – |  |  | (5) |  |  | – |  |  | (35) |
Derivative investments | 4 |  |  | – |  |  | (2) |  |  | – |  |  | – |  |  | 2 |
Other assets – indexed annuity ceded |  |  |  |  |  |  |  |  |  |  |
embedded derivatives | 52 |  |  | – |  |  | – |  |  | (69) |  |  | – |  |  | (17) |
Policyholder account balances – |  |  |  |  |  |  |  |  |  |  |
RILA, fixed annuity and |  |  |  |  |  |  |  |  |  |  |
IUL contracts | (533) |  |  | – |  |  | – |  |  | 208 |  |  | – |  |  | (325) |
Total, net | $ | 917 |  |  | $ | (263) |  |  | $ | (4) |  |  | $ | (224) |  |  | $ | (12) |  |  | $ | 414 |
The following summarizes changes in unrealized gains (losses) included in net income related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2025 |  |  | 2024 |  | 2025 |  | 2024
Investments: |  |  |  |  |  |  |  |
Trading securities (1) | $ | 3 |  |  |  | $ | (1) |  |  | $ | – |  |  | $ | (1) |
Equity securities (1) | (1) |  |  |  | (1) |  |  | (7) |  |  | (3) |
Mortgage loans on real estate (1) | (1) |  |  |  | (2) |  |  | (2) |  |  | (3) |
Derivative investments (1) | (6) |  |  |  | (8) |  |  | (6) |  |  | 8 |
MRBs (2) | 933 |  |  |  | 127 |  |  | (367) |  |  | 2,022 |
Funds withheld reinsurance liabilities – |  |  |  |  |  |  |  |
reinsurance-related embedded derivatives (1) | 14 |  |  |  | 228 |  |  | (75) |  |  | 469 |
Embedded derivatives – indexed annuity |  |  |  |  |  |  |  |
and IUL contracts (1) | 206 |  |  |  | 379 |  |  | 375 |  |  | 585 |
Total, net | $ | 1,148 |  |  |  | $ | 722 |  |  | $ | (82) |  |  | $ | 3,077 |
(1) Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (2) Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2025 |  |  | 2024 |  | 2025 |  | 2024
Investments: |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |
Corporate bonds | $ | (7) |  |  |  | $ | (29) |  |  | $ | (14) |  |  | $ | (41) |
ABS | (5) |  |  |  | (20) |  |  | 11 |  |  | (20) |
Hybrid and redeemable preferred |  |  |  |  |  |  |  |
securities | – |  |  |  | (1) |  |  | – |  |  | 1 |
Mortgage loans on real estate | 2 |  |  |  | – |  |  | 4 |  |  | 1 |
Total, net | $ | (10) |  |  |  | $ | (50) |  |  | $ | 1 |  |  | $ | (59) |
The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:
| For the Three Months Ended June 30, 2025 |  | For the Three Months Ended June 30, 2024 |  |  |  |  |  |
| Transfers |  | Transfers |  |  |  | Transfers |  | Transfers |  |  |  |  |  |  |  |
| Into |  | Out of |  |  |  | Into |  | Out of |  |  |  |  |  |  |  |
| Level 3 |  | Level 3 |  | Total |  | Level 3 |  | Level 3 |  | Total |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 90 |  |  | $ | (1) |  |  | $ | 89 |  |  | $ | – |  |  | $ | (92) |  |  | $ | (92) |  |  |  |  |  |  |
RMBS | – |  |  | (7) |  |  | (7) |  |  | – |  |  | – |  |  | – |  |  |  |  |  |  |
CMBS | – |  |  | (7) |  |  | (7) |  |  | – |  |  | – |  |  | – |  |  |  |  |  |  |
ABS | 13 |  |  | (52) |  |  | (39) |  |  | 18 |  |  | (85) |  |  | (67) |  |  |  |  |  |  |
Hybrid and redeemable preferred |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
securities | 10 |  |  | – |  |  | 10 |  |  | – |  |  | – |  |  | – |  |  |  |  |  |  |
Trading securities | 7 |  |  | – |  |  | 7 |  |  | – |  |  | – |  |  | – |  |  |  |  |  |  |
Equity securities | 54 |  |  | – |  |  | 54 |  |  | – |  |  | – |  |  | – |  |  |  |  |  |  |
Total, net | $ | 174 |  |  | $ | (67) |  |  | $ | 107 |  |  | $ | 18 |  |  | $ | (177) |  |  | $ | (159) |  |  |  |  |  |  |
| For the Six Months Ended June 30, 2025 |  | For the Six Months Ended June 30, 2024
| Transfers |  | Transfers |  |  |  | Transfers |  | Transfers |  |
| Into |  | Out of |  |  |  | Into |  | Out of |  |
| Level 3 |  | Level 3 |  | Total |  | Level 3 |  | Level 3 |  | Total
Investments: |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 112 |  |  | $ | (1) |  |  | $ | 111 |  |  | $ | 22 |  |  | $ | (136) |  |  | $ | (114) |
RMBS | – |  |  | (7) |  |  | (7) |  |  | – |  |  | – |  |  | – |
CMBS | – |  |  | (7) |  |  | (7) |  |  | – |  |  | – |  |  | – |
State and municipal bonds | – |  |  | – |  |  | – |  |  | – |  |  | (5) |  |  | (5) |
ABS | 70 |  |  | (52) |  |  | 18 |  |  | 50 |  |  | (108) |  |  | (58) |
Hybrid and redeemable preferred |  |  |  |  |  |  |  |  |  |  |
securities | 10 |  |  | (10) |  |  | – |  |  | – |  |  | – |  |  | – |
Trading securities | 24 |  |  | – |  |  | 24 |  |  | – |  |  | – |  |  | – |
Equity securities | 54 |  |  | – |  |  | 54 |  |  | – |  |  | – |  |  | – |
Derivative investments | – |  |  | – |  |  | – |  |  | – |  |  | (51) |  |  | (51) |
Total, net | $ | 270 |  |  | $ | (77) |  |  | $ | 193 |  |  | $ | 72 |  |  | $ | (300) |  |  | $ | (228) |
Transfers into and out of Level 3 are generally the result of observable market information on financial instruments no longer being available or becoming available to our pricing vendors. For the three and six months ended June 30, 2025 and 2024, transfers in and out of Level 3 were attributable primarily to the financial instruments’ observable market information no longer being available or becoming available. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of June 30, 2025:
|  |  |  |  |  |  |  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  |  |  |  |  | Average |  |  |  |
| Fair |  | Valuation |  | Significant |  | Assumption or |  | Input |  |  |  |
| Value |  | Technique |  | Unobservable Inputs |  | Input Ranges |  | Range (1) |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 172 |  |  | Discounted cash flow |  | Liquidity/duration adjustment (2) |  | 0.0 | % |  | – |  |  | 2.9 | % |  | 1.6 | % |  |  |  |
ABS | 9 |  |  | Discounted cash flow |  | Liquidity/duration adjustment (2) |  | 1.1 | % |  | – |  |  | 1.1 | % |  | 1.1 | % |  |  |  |
CMBS | 41 |  |  | Discounted cash flow |  | Liquidity/duration adjustment (2) |  | 1.8 | % |  | — |  |  | 1.9 | % |  | 1.8 | % |  |  |  |
Hybrid and redeemable |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
preferred securities | 39 |  |  | Discounted cash flow |  | Liquidity/duration adjustment (2) |  | 1.2 | % |  | – |  |  | 2.0 | % |  | 1.8 | % |  |  |  |
Equity securities | 5 |  |  | Discounted cash flow |  | Liquidity/duration adjustment (2) |  | 4.5 | % |  | – |  |  | 4.5 | % |  | 4.5 | % |  |  |  |
MRB assets | 4,577 |  |  | Discounted cash flow |  | Lapse (3) |  | 1.0 | % |  | — |  |  | 30.0 | % |  | (10) |  |  |  |
|  |  |  |  | Utilization of GLB withdrawals (4) |  | 85.0 | % |  | — |  |  | 100.0 | % |  | 92.0 | % |  |  |  |
|  |  |  |  | Claims utilization factor (5) |  | 60.0 | % |  | — |  |  | 100.0 | % |  | (10) |  |  |  |
|  |  |  |  | Premiums utilization factor (5) |  | 80.0 | % |  | — |  |  | 115.0 | % |  | (10) |  |  |  |
|  |  |  |  | Non-performance risk (6) |  | 0.3 | % |  | — |  |  | 1.9 | % |  | 1.5 | % |  |  |  |
|  |  |  |  | Mortality (7) |  |  |  |  |  | (9) |  | (10) |  |  |  |
|  |  |  |  | Volatility (8) |  | 1.0 | % |  | — |  |  | 29.0 | % |  | 14.4 | % |  |  |  |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ceded MRBs (11) | 2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indexed annuity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ceded embedded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
derivatives | 1,236 |  |  | Discounted cash flow |  | Lapse (3) |  | 0.0 | % |  | – |  |  | 9.0 | % |  | (10) |  |  |  |
|  |  |  |  | Mortality (7) |  |  |  |  |  | (9) |  | (10) |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Policyholder account |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
balances – indexed annuity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
contracts embedded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
derivatives | $ | (13,053) |  |  | Discounted cash flow |  | Lapse (3) |  | 0.0 | % |  | – |  |  | 9.0 | % |  | (10) |  |  |  |
|  |  |  |  | Mortality (7) |  |  |  |  |  | (9) |  | (10) |  |  |  |
MRB liabilities | (1,205) |  |  | Discounted cash flow |  | Lapse (3) |  | 1.0 | % |  | — |  |  | 30.0 | % |  | (10) |  |  |  |
|  |  |  |  | Utilization of GLB withdrawals (4) |  | 85.0 | % |  | — |  |  | 100.0 | % |  | 92.0 | % |  |  |  |
|  |  |  |  | Claims utilization factor (5) |  | 60.0 | % |  | — |  |  | 100.0 | % |  | (10) |  |  |  |
|  |  |  |  | Premiums utilization factor (5) |  | 80.0 | % |  | — |  |  | 115.0 | % |  | (10) |  |  |  |
|  |  |  |  | Non-performance risk (6) |  | 0.3 | % |  | — |  |  | 1.9 | % |  | 1.5 | % |  |  |  |
|  |  |  |  | Mortality (7) |  |  |  |  |  | (9) |  | (10) |  |  |  |
|  |  |  |  | Volatility (8) |  | 1.0 | % |  | — |  |  | 29.0 | % |  | 14.4 | % |  |  |  |
Other liabilities – ceded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MRBs (11) | (341) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2024:
|  |  |  |  |  |  |  |  |  |  |  |  | Weighted |  |  |  |  |  |
|  |  |  |  |  |  |  |  | Average |  |  |  |  |  |
| Fair |  | Valuation |  | Significant |  | Assumption or |  | Input |  |  |  |  |  |
| Value |  | Technique |  | Unobservable Inputs |  | Input Ranges |  | Range (1) |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity AFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 187 |  |  | Discounted cash flow |  | Liquidity/duration adjustment (2) |  | 0.0 | % |  | – |  |  | 3.1 | % |  | 1.7 | % |  |  |  |  |  |
ABS | 10 |  |  | Discounted cash flow |  | Liquidity/duration adjustment (2) |  | 1.3 | % |  | – |  |  | 1.3 | % |  | 1.3 | % |  |  |  |  |  |
CMBS | 8 |  |  | Discounted cash flow |  | Liquidity/duration adjustment (2) |  | 1.9 | % |  | – |  |  | 1.9 | % |  | 1.9 | % |  |  |  |  |  |
Hybrid and redeemable |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
preferred securities | 19 |  |  | Discounted cash flow |  | Liquidity/duration adjustment (2) |  | 1.4 | % |  | – |  |  | 1.9 | % |  | 1.8 | % |  |  |  |  |  |
Equity securities | 5 |  |  | Discounted cash flow |  | Liquidity/duration adjustment (2) |  | 4.5 | % |  | – |  |  | 4.5 | % |  | 4.5 | % |  |  |  |  |  |
MRB assets | 4,860 |  |  | Discounted cash flow |  | Lapse (3) |  | 1.0 | % |  | — |  |  | 30.0 | % |  | (10) |  |  |  |  |  |
|  |  |  |  | Utilization of GLB withdrawals (4) |  | 85.0 | % |  | – |  |  | 100.0 | % |  | 92.0 | % |  |  |  |  |  |
|  |  |  |  | Claims utilization factor (5) |  | 60.0 | % |  | – |  |  | 100.0 | % |  | (10) |  |  |  |  |  |
|  |  |  |  | Premiums utilization factor (5) |  | 80.0 | % |  | – |  |  | 115.0 | % |  | (10) |  |  |  |  |  |
|  |  |  |  | Non-performance risk (6) |  | 0.3 | % |  | – |  |  | 2.0 | % |  | 1.6 | % |  |  |  |  |  |
|  |  |  |  | Mortality (7) |  |  |  |  |  | (9) |  | (10) |  |  |  |  |  |
|  |  |  |  | Volatility (8) |  | 1.0 | % |  | – |  |  | 29.0 | % |  | 14.5 | % |  |  |  |  |  |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ceded MRBs (11) | 2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indexed annuity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ceded embedded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
derivatives | 1,115 |  |  | Discounted cash flow |  | Lapse (3) |  | 0.0 | % |  | — |  |  | 9.0 | % |  | (10) |  |  |  |  |  |
|  |  |  |  | Mortality (7) |  |  |  |  |  | (9) |  | (10) |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Policyholder account |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
balances – indexed annuity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
contracts embedded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
derivatives | $ | (12,402) |  |  | Discounted cash flow |  | Lapse (3) |  | 0.0 | % |  | – |  |  | 9.0 | % |  | (10) |  |  |  |  |  |
|  |  |  |  | Mortality (7) |  |  |  |  |  | (9) |  | (10) |  |  |  |  |  |
MRB liabilities | (1,046) |  |  | Discounted cash flow |  | Lapse (3) |  | 1.0 | % |  | – |  |  | 30.0 | % |  | (10) |  |  |  |  |  |
|  |  |  |  | Utilization of GLB withdrawals (4) |  | 85.0 | % |  | – |  |  | 100.0 | % |  | 92.0 | % |  |  |  |  |  |
|  |  |  |  | Claims utilization factor (5) |  | 60.0 | % |  | – |  |  | 100.0 | % |  | (10) |  |  |  |  |  |
|  |  |  |  | Premiums utilization factor (5) |  | 80.0 | % |  | – |  |  | 115.0 | % |  | (10) |  |  |  |  |  |
|  |  |  |  | Non-performance risk (6) |  | 0.3 | % |  | — |  |  | 2.0 | % |  | 1.6 | % |  |  |  |  |  |
|  |  |  |  | Mortality (7) |  |  |  |  |  | (9) |  | (10) |  |  |  |  |  |
|  |  |  |  | Volatility (8) |  | 1.0 | % |  | – |  |  | 29.0 | % |  | 14.5 | % |  |  |  |  |  |
Other liabilities – ceded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MRBs (11) | (381) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (3) The lapse input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapses during the surrender charge period. (4) The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders. (5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the MRB calculation to estimate the impact of inefficient GLB withdrawal behavior, including taking less than or more than the maximum GLB withdrawal. (6) The non-performance risk input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The non-performance risk input was weighted by the absolute value of the sensitivity of the reserve to the non-performance risk assumption. (7) The mortality input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (8) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account balance assigned to each index. (9) The mortality is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse, utilization factors or mortality. (11) The fair value inputs for ceded MRBs are consistent with those used to value MRB assets and liabilities. From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement. The embedded derivative liability associated with Fortitude Re was excluded from the above table. As discussed in Note 7, this embedded derivative liability was created through a coinsurance with funds withheld reinsurance agreement where the investments supporting the reinsurance agreement were withheld by and continue to be reported on the Consolidated Balance Sheets. This reinsurance-related embedded derivative is valued as a total return swap with reference to the fair value of the investments held by us. Accordingly, the unobservable inputs utilized in the valuation of the reinsurance-related embedded derivative are a component of the investments supporting the reinsurance agreement that are reported on the Consolidated Balance Sheets. Changes in any of the significant inputs presented in the table above would have resulted in a significant change in the fair value measurement of the asset or liability as follows: •Investments – An increase in the liquidity/duration adjustment input would have resulted in a decrease in the fair value measurement. •Indexed annuity contracts embedded derivatives – For direct embedded derivatives, an increase in the lapse or mortality inputs would have resulted in a decrease in the fair value measurement. •MRBs – Assuming our MRBs are in a liability position: an increase in our lapse, non-performance risk or mortality inputs would have resulted in a decrease in the fair value measurement, except for policies with guaranteed death benefit (“GDB”) riders only, in which case an increase in mortality inputs would have resulted in an increase in the fair value measurement. For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input would not have affected the other inputs. As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary. Fair Value Option Mortgage loans on real estate, net of allowance for credit losses, as reported on the Consolidated Balance Sheets, includes mortgage loans on real estate for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with modified coinsurance agreements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on the Consolidated Statement of Comprehensive Income (Loss). Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Mortgage loans on real estate for which the fair value option was elected are valued using third-party pricing services. We have procedures in place to review the valuations each quarter to ensure they are reasonable, including utilizing a separate third party to reperform the valuation for a selection of mortgage loans on an annual basis. Due to lack of observable inputs, mortgage loans electing the fair value option are classified as Level 3 within the fair value hierarchy. The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows:
| As of June 30, |  | As of December 31,
| 2025 |  | 2024
Fair value | $ | 232 |  |  | $ | 232 |
Aggregate contractual principal | 265 |  |  | 263 |
For information on current and past due composition and accruing status for loans where we have elected the fair value option, see Note 3. Financial Instruments Not Carried at Fair Value The following summarizes the fair value by the fair value hierarchy levels and the carrying amount of our financial instruments not carried at fair value (in millions):
| As of June 30, 2025
| Quoted |  |  |  |  |  |  |  |
| Prices |  |  |  |  |  |  |  |
| in Active |  |  |  |  |  |  |  |
| Markets for |  | Significant |  | Significant |  |  |  |
| Identical |  | Observable |  | Unobservable |  | Total |  |
| Assets |  | Inputs |  | Inputs |  | Fair |  | Carrying
| (Level 1) |  | (Level 2) |  | (Level 3) |  | Value |  | Amount
Assets |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |
Mortgage loans on real estate | $ | – |  |  | $ | 20,878 |  |  | $ | – |  |  | $ | 20,878 |  |  | $ | 21,764 |
Other investments | – |  |  | 681 |  |  | 5,594 |  |  | 6,275 |  |  | 6,275 |
Policy loans | – |  |  | 2,552 |  |  | – |  |  | 2,552 |  |  | 2,552 |
Cash and invested cash | – |  |  | 7,143 |  |  | – |  |  | 7,143 |  |  | 7,143 |
Liabilities |  |  |  |  |  |  |  |  |
Policyholder account balances – certain investment |  |  |  |  |  |  |  |  |
contracts and other liabilities | $ | – |  |  | $ | – |  |  | $ | (31,640) |  |  | $ | (31,640) |  |  | $ | (41,952) |
Policyholder account balances – funding agreements | – |  |  | (1,030) |  |  | – |  |  | (1,030) |  |  | (1,000) |
Long-term debt | – |  |  | (5,447) |  |  | – |  |  | (5,447) |  |  | (5,767) |
Funds withheld reinsurance-related liabilities – excluding |  |  |  |  |  |  |  |  |
embedded derivatives | – |  |  | – |  |  | (16,560) |  |  | (16,560) |  |  | (16,560) |
| As of December 31, 2024
| Quoted |  |  |  |  |  |  |  |
| Prices |  |  |  |  |  |  |  |
| in Active |  |  |  |  |  |  |  |
| Markets for |  | Significant |  | Significant |  |  |  |
| Identical |  | Observable |  | Unobservable |  | Total |  |
| Assets |  | Inputs |  | Inputs |  | Fair |  | Carrying
| (Level 1) |  | (Level 2) |  | (Level 3) |  | Value |  | Amount
Assets |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |
Mortgage loans on real estate | $ | – |  |  | $ | 19,647 |  |  | $ | – |  |  | $ | 19,647 |  |  | $ | 21,083 |
Other investments | – |  |  | 1,119 |  |  | 5,469 |  |  | 6,588 |  |  | 6,588 |
Policy loans | – |  |  | 2,476 |  |  | – |  |  | 2,476 |  |  | 2,476 |
Cash and invested cash | – |  |  | 5,801 |  |  | – |  |  | 5,801 |  |  | 5,801 |
Liabilities |  |  |  |  |  |  |  |  |
Policyholder account balances – certain investment |  |  |  |  |  |  |  |  |
contracts and other liabilities | $ | – |  |  | $ | – |  |  | $ | (30,505) |  |  | $ | (30,505) |  |  | $ | (40,394) |
Short-term debt | – |  |  | (299) |  |  | – |  |  | (299) |  |  | (300) |
Long-term debt | – |  |  | (5,304) |  |  | – |  |  | (5,304) |  |  | (5,856) |
Funds withheld reinsurance-related liabilities – excluding |  |  |  |  |  |  |  |  |
embedded derivatives | – |  |  | – |  |  | (16,877) |  |  | (16,877) |  |  | (16,877) |
The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on the Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown above 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 on Real Estate The fair value of mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, LTV, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, are classified as Level 2 within the fair value hierarchy. Other Investments The carrying value of our assets classified as other investments, excluding short-term investments, approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also includes FHLB stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy. Policy Loans The carrying value for policy loans are the unpaid principal balances. Policy loans are fully collateralized by the cash surrender value of underlying insurance policies. As a result, the carrying value of the policy loans approximates the fair value. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy. Cash and Invested Cash Cash and invested cash is carried at cost. The inputs used to measure its fair value are classified as Level 2 within the fair value hierarchy. Policyholder Account Balances – Certain Investment Contracts and Other Liabilities Policyholder account balances and other liabilities include account balances of certain investment contracts that exclude significant mortality or morbidity risk. The fair value of the account balances of certain investment contracts is based on a discounted cash flow model as of the balance sheet date. The inputs used to measure the fair value of these policyholder account balances are classified as Level 3 within the fair value hierarchy. Policyholder Account Balances – Funding Agreements The fair value of funding agreements is based on quoted market prices and is measured using inputs that are classified as Level 2 within the fair value hierarchy. For more information on funding agreements, see Note 10. Short-Term and Long-Term Debt The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy. Funds Withheld Reinsurance Liabilities Funds withheld reinsurance liabilities includes our obligation to pay reinsurers under coinsurance with funds withheld and modified coinsurance arrangements where the Company is the cedant. This liability includes embedded derivatives, which are total return swaps with contractual returns that are attributable to the Company’s reinsurance agreements. The embedded derivatives are carried at fair value and thus excluded from the preceding table. The inputs used to measure the remaining balance are classified as Level 3 within the fair value hierarchy.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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