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Derivative Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Notional and Fair Values | The notional amounts and fair values of derivatives were as follows as of the dates indicated:
| September 30, 2025 |  | December 31, 2024
| Notional Amount |  | Asset Fair Value |  | Liability Fair Value |  | Notional Amount |  | Asset Fair Value |  | Liability Fair Value
Derivatives: Qualifying for hedge accounting(1)
Fair value hedges(2): |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts(3) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign exchange contracts | 140 |  |  | — |  |  | — |  |  | 106 |  |  | 6 |  |  | — |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts | 271 |  |  | — |  |  | — |  |  | 11 |  |  | — |  |  | — |
Foreign exchange contracts | 538 |  |  | 12 |  |  | 19 |  |  | 623 |  |  | 46 |  |  | 2 |
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts | 15,498 |  |  | 169 |  |  | 265 |  |  | 14,633 |  |  | 246 |  |  | 313 |
Foreign exchange contracts | 264 |  |  | 1 |  |  | 2 |  |  | 203 |  |  | 3 |  |  | 6 |
Equity contracts | 278 |  |  | 3 |  |  | 2 |  |  | 286 |  |  | 2 |  |  | 9 |
Credit contracts | 76 |  |  | — |  |  | — |  |  | 97 |  |  | — |  |  | 2 |
Embedded derivatives and Managed custody guarantees ("MCGs"):
Within fixed maturity investments(4) | N/A |  | 3 |  |  | — |  |  | N/A |  | — |  |  | 4 |
Within reinsurance agreements(5) | N/A |  | 62 |  |  | 33 |  |  | N/A |  | 55 |  |  | 41 |
MCGs(6) | N/A |  | — |  |  | 1 |  |  | N/A |  | — |  |  | 4 |
Stabilizer(6) | N/A |  | — |  |  | 5 |  |  | N/A |  | — |  |  | 15 |
Total |  |  | $ | 250 |  |  | $ | 327 |  |  |  |  | $ | 358 |  |  | $ | 396 |
(1) Open derivative contracts are reported as Derivatives assets or liabilities at fair value on the Condensed Consolidated Balance Sheets. (2) Total carrying amount of hedged assets and liabilities was $320 and $307 as of September 30, 2025 and December 31, 2024, respectively. (3) Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged assets and liabilities was $5 and $(8) as of September 30, 2025 and December 31, 2024, respectively, of which includes $2 of hedging adjustments on discontinued hedging relationships. (4) Included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets. (5) Included in Other liabilities, Other assets and Premium receivable and reinsurance recoverable on the Condensed Consolidated Balance Sheets. (6) Included in Contract owner account balances on the Condensed Consolidated Balance Sheets. N/A - Not applicable
Offsetting Assets and Liabilities | The Company does not offset any derivative assets and liabilities in the Condensed Consolidated Balance Sheets. The disclosures set out in the table below include the fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts subject to master netting agreements or similar agreements as of the dates indicated:
| Gross Amount Recognized |  | Counterparty Netting(1) |  | Cash Collateral Netting(1) |  | Securities Collateral Netting(1) |  | Net Receivables/ Payables
September 30, 2025
Derivative assets | $ | 185 |  |  | $ | (179) |  |  | $ | (5) |  |  | $ | — |  |  | $ | 1 |
Derivative liabilities | 288 |  |  | (179) |  |  | (96) |  |  | (9) |  |  | 4 |
December 31, 2024
Derivative assets | 303 |  |  | (261) |  |  | (34) |  |  | (3) |  |  | 5 |
Derivative liabilities | 332 |  |  | (261) |  |  | (58) |  |  | (6) |  |  | 7 |
(1) Represents the netting of receivable with payable balances, net of collateral, for the same counterparty under eligible netting agreements.
Effect on Other Comprehensive Income (Loss) | The location and effect of derivatives qualifying for hedge accounting on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income were as follows for the periods indicated:
| 2025 |  | 2024
| Interest Rate Contracts |  | Foreign Exchange Contracts |  | Interest Rate Contracts |  | Foreign Exchange Contracts
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | Net investment income |  | Net investment income and Net gains (losses) |  | Net investment income |  | Net investment income and Net gains (losses)
Three Months Ended September 30, |  |  |  |  |  |  |
Amount of Gain (Loss) Recognized in Other Comprehensive Income(1) | $ | — |  |  | $ | 7 |  |  | $ | — |  |  | $ | (29) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | — |  |  | 1 |  |  | — |  |  | 5 |
Nine Months Ended September 30, |  |  |  |  |  |  |
Amount of Gain (Loss) Recognized in Other Comprehensive Income(1) | $ | — |  |  | $ | (50) |  |  | $ | — |  |  | $ | (18) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | — |  |  | 4 |  |  | — |  |  | 11 |
(1) See the Accumulated Other Comprehensive Income (Loss) Note to these Condensed Consolidated Financial Statements for additional information.
Effect of Qualifying Hedge Accounting | The location and amount of gain (loss) recognized in the Condensed Consolidated Statements of Operations for derivatives qualifying for hedge accounting were as follows for the periods indicated:
| 2025 |  | 2024
| Net investment income |  | Net gains (losses) |  | Net investment income |  | Net gains (losses)
Three Months Ended September 30, |  |  |  |  |  |  |
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | 583 |  |  | $ | (21) |  |  | $ | 506 |  |  | $ | (14) |
Fair value hedges: |  |  |  |  |  |  |
Interest rate contracts: |  |  |  |  |  |  |
Hedged items | — |  |  | — |  |  | — |  |  | 7 |
Derivatives designated as hedging instruments | — |  |  | — |  |  | — |  |  | (7) |
Foreign exchange contracts: |  |  |  |  |  |  |
Hedged items | — |  |  | 1 |  |  | — |  |  | 3 |
Derivatives designated as hedging instruments(1) | — |  |  | 1 |  |  | — |  |  | (4) |
Cash flow hedges: |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |
Gain (loss) reclassified from accumulated other comprehensive income into income | 1 |  |  | — |  |  | 2 |  |  | 3 |
Nine Months Ended September 30, |  |  |  |  |  |  |
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | 1,727 |  |  | $ | (96) |  |  | $ | 1,553 |  |  | $ | 25 |
Fair value hedges: |  |  |  |  |  |  |
Interest rate contracts: |  |  |  |  |  |  |
Hedged items | — |  |  | — |  |  | — |  |  | 8 |
Derivatives designated as hedging instruments | — |  |  | — |  |  | — |  |  | (8) |
Foreign exchange contracts: |  |  |  |  |  |  |
Hedged items | — |  |  | 14 |  |  | — |  |  | 1 |
Derivatives designated as hedging instruments(1) | — |  |  | (12) |  |  | — |  |  | — |
Cash flow hedges: |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |
Gain (loss) reclassified from accumulated other comprehensive income into income | 4 |  |  | — |  |  | 7 |  |  | 4 |
(1) The change in derivative instruments designated and qualifying as fair value hedges of $1 and $2 were excluded from the assessment of hedge effectiveness and recognized currently in earnings for the three and nine months ended September 30, 2025, respectively. The change in derivative instruments designated and qualifying as fair value hedges of $0 and $1 were excluded from the assessment of hedge effectiveness and recognized currently in earnings for the three and nine months ended September 30, 2024, respectively.
Effect of Non-Qualifying Hedge Accounting | The location and effect of derivatives not designated as hedging instruments on the Condensed Consolidated Statements of Operations were as follows for the periods indicated:
| Location of Gain (Loss) Recognized on Derivative |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts | Net gains (losses) |  | $ | 4 |  |  | $ | (129) |  |  | $ | (73) |  |  | $ | 36 |
Foreign exchange contracts | Net gains (losses) |  | 2 |  |  | (1) |  |  | 7 |  |  | (4) |
Equity contracts | Net gains (losses) |  | 8 |  |  | 8 |  |  | 15 |  |  | 19 |
Credit contracts | Net gains (losses) |  | — |  |  | 1 |  |  | (1) |  |  | — |
Embedded derivatives and MCGs:
Within fixed maturity investments | Net gains (losses) |  | — |  |  | 3 |  |  | 7 |  |  | 1 |
Within reinsurance agreements(1) | (2) |  | (1) |  |  | (27) |  |  | 4 |  |  | (23) |
MCGs | Net gains (losses) |  | 2 |  |  | 6 |  |  | 3 |  |  | 6 |
Stabilizer | Net gains (losses) |  | 5 |  |  | (6) |  |  | 10 |  |  | (7) |
Total |  |  | $ | 20 |  |  | $ | (145) |  |  | $ | (28) |  |  | $ | 28 |
(1) For the three and nine months ended September 30, 2025, the amount excluded gains (losses) of $0 and $11, respectively, from standalone derivatives recognized in Net gains (losses). For the three months ended September 30, 2024, the amount excluded gains (losses) of $(1) from standalone derivatives recognized in Net gains (losses). For the nine months ended September 30, 2024, the amount excluded no gains (losses) from standalone derivatives recognized in Net gains (losses). (2) Gains (losses) on embedded derivatives within reinsurance agreements are recognized in either Policyholder benefits or Net gains (losses).

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