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Fair Value Measurements (excluding Consolidated Investment Entities) | 12 Months Ended
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Dec. 31, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements (excluding Consolidated Investment Entities) | Fair Value Measurements (excluding Consolidated Investment Entities) Fair Value Measurement The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2025:
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Fixed maturities, including securities pledged: |  |  |  |  |  |  |
U.S. Treasuries | $ | 486 |  |  | $ | 128 |  |  | $ | — |  |  | $ | 614 |
U.S. Government agencies and authorities | — |  |  | 31 |  |  | — |  |  | 31 |
State, municipalities and political subdivisions | — |  |  | 510 |  |  | — |  |  | 510 |
U.S. corporate public securities | — |  |  | 7,786 |  |  | 78 |  |  | 7,864 |
U.S. corporate private securities | — |  |  | 3,522 |  |  | 2,100 |  |  | 5,622 |
Foreign corporate public securities and foreign governments(1) | — |  |  | 2,718 |  |  | 60 |  |  | 2,778 |
Foreign corporate private securities(1) | — |  |  | 2,178 |  |  | 631 |  |  | 2,809 |
Residential mortgage-backed securities | — |  |  | 4,273 |  |  | 71 |  |  | 4,344 |
Commercial mortgage-backed securities | — |  |  | 2,676 |  |  | — |  |  | 2,676 |
Other asset-backed securities | — |  |  | 2,604 |  |  | 299 |  |  | 2,903 |
Total fixed maturities, including securities pledged | 486 |  |  | 26,426 |  |  | 3,239 |  |  | 30,151 |
Equity securities | 107 |  |  | — |  |  | 94 |  |  | 201 |
Derivatives: |  |  |  |  |  |  |
Interest rate contracts | 2 |  |  | 182 |  |  | — |  |  | 184 |
Foreign exchange contracts | — |  |  | 10 |  |  | — |  |  | 10 |
Equity contracts | — |  |  | 3 |  |  | — |  |  | 3 |
Embedded derivatives within reinsurance | — |  |  | 55 |  |  | — |  |  | 55 |
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements | 2,352 |  |  | 5 |  |  | — |  |  | 2,357 |
Assets held in separate accounts | 107,191 |  |  | 5,428 |  |  | 388 |  |  | 113,007 |
Total assets | $ | 110,138 |  |  | $ | 32,109 |  |  | $ | 3,721 |  |  | $ | 145,968 |
Liabilities: |  |  |  |  |  |  |
Contingent consideration | $ | — |  |  | $ | — |  |  | $ | 147 |  |  | $ | 147 |
Stabilizer and MCGs | — |  |  | — |  |  | 5 |  |  | 5 |
Derivatives: |  |  |  |  |  |  |
Interest rate contracts | — |  |  | 258 |  |  | — |  |  | 258 |
Foreign exchange contracts | — |  |  | 22 |  |  | — |  |  | 22 |
Equity contracts | — |  |  | 2 |  |  | — |  |  | 2 |
Embedded derivatives within reinsurance | — |  |  | (9) |  | (2) | — |  |  | (9) |
Total liabilities | $ | — |  |  | $ | 273 |  |  | $ | 152 |  |  | $ | 425 |
(1) Primarily U.S. dollar denominated. (2) The Company classifies the embedded derivative within the liabilities section as the balance represents an offset to a funds withheld liability. The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2024:
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Fixed maturities, including securities pledged: |  |  |  |  |  |  |
U.S. Treasuries | $ | 402 |  |  | $ | 70 |  |  | $ | — |  |  | $ | 472 |
U.S. Government agencies and authorities | — |  |  | 30 |  |  | — |  |  | 30 |
State, municipalities and political subdivisions | — |  |  | 580 |  |  | — |  |  | 580 |
U.S. corporate public securities | — |  |  | 6,949 |  |  | 59 |  |  | 7,008 |
U.S. corporate private securities | — |  |  | 3,486 |  |  | 1,497 |  |  | 4,983 |
Foreign corporate public securities and foreign governments(1) | — |  |  | 2,412 |  |  | 60 |  |  | 2,472 |
Foreign corporate private securities(1) | — |  |  | 2,116 |  |  | 421 |  |  | 2,537 |
Residential mortgage-backed securities | — |  |  | 3,404 |  |  | 67 |  |  | 3,471 |
Commercial mortgage-backed securities | — |  |  | 3,132 |  |  | — |  |  | 3,132 |
Other asset-backed securities | — |  |  | 2,746 |  |  | 23 |  |  | 2,769 |
Total fixed maturities, including securities pledged | 402 |  |  | 24,925 |  |  | 2,127 |  |  | 27,454 |
Equity securities | 148 |  |  | — |  |  | 98 |  |  | 246 |
Derivatives: |  |  |  |  |  |  |
Interest rate contracts | — |  |  | 246 |  |  | — |  |  | 246 |
Foreign exchange contracts | — |  |  | 55 |  |  | — |  |  | 55 |
Equity contracts | — |  |  | 2 |  |  | — |  |  | 2 |
Embedded derivatives within reinsurance | — |  |  | 55 |  |  | — |  |  | 55 |
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements | 2,511 |  |  | 1 |  |  | 23 |  |  | 2,535 |
Assets held in separate accounts | 95,946 |  |  | 5,390 |  |  | 340 |  |  | 101,676 |
Total assets | $ | 99,007 |  |  | $ | 30,674 |  |  | $ | 2,588 |  |  | $ | 132,269 |
Liabilities: |  |  |  |  |  |  |
Contingent consideration | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | 2 |
Stabilizer and MCGs | — |  |  | — |  |  | 19 |  |  | 19 |
Derivatives: |  |  |  |  |  |  |
Interest rate contracts | 11 |  |  | 302 |  |  | — |  |  | 313 |
Foreign exchange contracts | — |  |  | 8 |  |  | — |  |  | 8 |
Equity contracts | — |  |  | 9 |  |  | — |  |  | 9 |
Credit contracts | — |  |  | 2 |  |  | — |  |  | 2 |
Embedded derivatives within reinsurance | — |  |  | (12) |  | (2) | 53 |  |  | 41 |
Total liabilities | $ | 11 |  |  | $ | 309 |  |  | $ | 74 |  |  | $ | 394 |
(1) Primarily U.S. dollar denominated. (2) The Company classifies the embedded derivative within the liabilities section as the balance represents an offset to a funds withheld liability. Valuation of Financial Assets and Liabilities at Fair Value Certain assets and liabilities are measured at estimated fair value on the Company's Consolidated Balance Sheets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The exit price and the transaction (or entry) price will be the same at initial recognition in many circumstances. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with an equal credit standing. Fair value is required to be a market-based measurement that is determined based on a hypothetical transaction at the measurement date, from a market participant's perspective. The Company considers three broad valuation approaches when a quoted price is unavailable: (i) the market approach, (ii) the income approach and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given the instrument being measured and the availability of sufficient inputs. The Company prioritizes the inputs to fair valuation approaches and allows for the use of unobservable inputs to the extent that observable inputs are not available. The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of exit price and the fair value hierarchy as prescribed in ASC Topic 820. Valuations are obtained from third-party commercial pricing services, brokers and industry-standard, vendor-provided software that models the value based on market observable inputs. The valuations obtained from third-party commercial pricing services are non-binding. The Company reviews the assumptions and inputs used by third-party commercial pricing services for each reporting period in order to determine an appropriate fair value hierarchy level. The documentation and analysis obtained from third-party commercial pricing services are reviewed by the Company, including in-depth validation procedures confirming the observability of inputs. The valuations are reviewed and validated monthly through the internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes. When available, the fair value of the Company's financial assets and liabilities are based on quoted prices of identical assets in active markets and therefore, reflected in Level 1. The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below. For fixed maturities classified as Level 2 assets, fair values are determined using a matrix-based market approach, based on prices obtained from third-party commercial pricing services and the Company’s matrix and analytics-based pricing models, which in each case incorporate a variety of market observable information as valuation inputs. The market observable inputs used for these fair value measurements, by fixed maturity asset class, are as follows: U.S. Treasuries: Fair value is determined using third-party commercial pricing services, with the primary inputs being stripped interest and principal U.S. Treasury yield curves that represent a U.S. Treasury zero-coupon curve. U.S. government agencies and authorities, State, municipalities and political subdivisions: Fair value is determined using third-party commercial pricing services, with the primary inputs being U.S. Treasury yield curves, trades of comparable securities, credit spreads off benchmark yields and issuer ratings. U.S. corporate public securities, Foreign corporate public securities and foreign governments: Fair value is determined using third-party commercial pricing services, with the primary inputs being benchmark yields, trades of comparable securities, issuer ratings, bids and credit spreads off benchmark yields. U.S. corporate private securities and Foreign corporate private securities: Fair values are determined using a matrix and analytics-based pricing model. The model incorporates the current level of risk-free interest rates, current corporate credit spreads, credit quality of the issuer and cash flow characteristics of the security. The model also considers a liquidity spread, the value of any collateral, the capital structure of the issuer, the presence of guarantees, and prices and quotes for comparably rated publicly traded securities. RMBS, CMBS and ABS: Fair value is determined using third-party commercial pricing services, with the primary inputs being credit spreads off benchmark yields, prepayment speed assumptions, current and forecasted loss severity, debt service coverage ratios, collateral type, payment priority within tranche and the vintage of the loans underlying the security. Generally, the Company does not obtain more than one vendor price from pricing services per instrument. The Company uses a hierarchy process in which prices are obtained from a primary vendor and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited. Securities priced using independent broker quotes are classified as Level 3. Fair values of privately placed bonds are determined primarily using a matrix-based pricing model and are generally classified as Level 2 assets. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in its relevant market. Using this data, the model generates estimated market values, which the Company considers reflective of the fair value of each privately placed bond. Equity securities: Level 2 and Level 3 equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers. Derivatives: Derivatives are carried at fair value, which is determined using the Company's derivative accounting system in conjunction with observable key financial data from third-party sources, such as yield curves, exchange rates, S&P 500 Index prices, Overnight Index Swap ("OIS") rates, and Secured Overnight Financing Rate ("SOFR"). The Company uses SOFR discounting for valuations of interest rate derivatives; however, certain legacy positions may continue to be discounted on OIS. The Company uses OIS for valuations of collateralized interest rate derivatives, which are obtained from third-party sources. For those derivatives that are unable to be valued by the accounting system, the Company typically utilizes values established by third-party brokers. Counterparty credit risk is considered and incorporated in the Company's valuation process through counterparty credit rating requirements and monitoring of overall exposure. It is the Company's policy to transact only with investment grade counterparties with a credit rating of A- or better. The Company's nonperformance risk is also considered and incorporated in the Company's valuation process. The Company also has certain credit default swaps and options that are priced by third party vendors or by using models that primarily use market observable inputs, but contain inputs that are not observable to market participants, which have been classified as Level 3. The remaining derivative instruments are valued based on market observable inputs and are classified as Level 2. See the Derivative Financial Instruments Note to these Consolidated Financial Statements for more information. Contingent consideration: The fair value of the contingent consideration liability associated with the Company’s acquisitions uses unobservable inputs and as such are reported as Level 3. Unobservable inputs include projected revenues, duration of earnouts and other metrics as well as discount rate. Changes in the fair value of the contingent consideration are recorded in Operating expenses in the Company’s Consolidated Statements of Operations. Stabilizer and MCGs: The Company records reserves for Stabilizer and MCG contracts containing guaranteed credited rates. The guarantee is treated as an embedded derivative or a stand-alone derivative (depending on the underlying product) and is required to be reported at fair value. The estimated fair value is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract, the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using relevant actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are projected under multiple capital market scenarios using observable risk-free rates and other best estimate assumptions. These derivatives are classified as Level 3 liabilities. The discount rate used to determine the fair value of the Company's Stabilizer embedded derivative liabilities and MCG stand-alone derivative includes an adjustment to reflect the risk that these obligations will not be fulfilled ("nonperformance risk"). The nonperformance risk adjustment incorporates a blend of observable, similarly rated peer holding company credit spreads, adjusted to reflect the credit quality of the individual insurance subsidiary that issued the guarantee, as well as an adjustment to reflect the non-default spreads and the priority and recovery rates of policyholder claims. Embedded derivatives: The carrying value of embedded derivatives is estimated based upon the change in the fair value of the assets supporting the funds withheld payable/receivable under reinsurance agreements. The fair value of the embedded derivative is based on market observable inputs and is classified as Level 2. The remaining derivative instruments are classified as Level 3 and are estimated using the income approach. The fair value is calculated by estimating future cash flows for a certain discrete projection period, estimating the terminal value, if appropriate, and discounting these amounts to present value at a rate of return that considers the relative risk of the cash flows and the time value of money. Level 3 Financial Instruments The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by ASC Topic 820), including but not limited to liquidity spreads for investments within markets deemed not currently active. These valuations, whether derived internally or obtained from a third-party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In addition, the Company has determined, for certain financial instruments, an active market is such a significant input to determine fair value that the presence of an inactive market may lead to classification in Level 3. In light of the methodologies employed to obtain the fair values of financial assets and liabilities classified as Level 3, additional information is presented below. Significant Unobservable Inputs The Company's Level 3 fair value measurements of its fixed maturities, equity securities and equity and credit derivative contracts are primarily based on broker quotes for which the quantitative detail of the unobservable inputs is neither provided nor reasonably corroborated, thus negating the ability to perform a sensitivity analysis. The Company performs a review of broker quotes by performing a monthly price variance comparison and back tests broker quotes to recent trade prices. The following tables summarize the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the periods indicated:
| Year Ended December 31, 2025 |  |
| Fair Value as of January 1 |  | Realized/ Unrealized Gains (Losses) Included in: |  | Purchases |  | Issuances |  | Sales |  | Settlements |  | Transfers into Level 3 |  | Transfers out of Level 3 |  | Fair Value as of December 31 |  | Change In Unrealized Gains (Losses) Included in Earnings(3) |  | Change In Unrealized Gains (Losses) Included in OCI(3)
|  | Net Income |  | OCI |  |  |  |  |  |  |  |  |
Fixed maturities, including securities pledged: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. corporate public securities | $ | 59 |  |  | $ | (1) |  |  | $ | 2 |  |  | $ | 30 |  |  | $ | — |  |  | $ | (10) |  |  | $ | (2) |  |  | $ | — |  |  | $ | — |  |  | $ | 78 |  |  | $ | — |  |  | $ | 1 |
U.S. corporate private securities | 1,497 |  |  | (5) |  |  | 54 |  |  | 819 |  |  | — |  |  | (45) |  |  | (273) |  |  | 53 |  |  | — |  |  | 2,100 |  |  | 2 |  |  | 51 |
Foreign corporate public securities and foreign governments(1) | 60 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 60 |  |  | — |  |  | — |
Foreign corporate private securities(1) | 421 |  |  | (31) |  |  | 51 |  |  | 360 |  |  | — |  |  | (72) |  |  | (98) |  |  | — |  |  | — |  |  | 631 |  |  | 1 |  |  | 12 |
Residential mortgage-backed securities | 67 |  |  | (9) |  |  | — |  |  | 22 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (9) |  |  | 71 |  |  | (9) |  |  | — |
Other asset-backed securities | 23 |  |  | — |  |  | 2 |  |  | 292 |  |  | — |  |  | (2) |  |  | (14) |  |  | — |  |  | (2) |  |  | 299 |  |  | — |  |  | 2 |
Total fixed maturities including securities pledged | 2,127 |  |  | (46) |  |  | 109 |  |  | 1,523 |  |  | — |  |  | (129) |  |  | (387) |  |  | 53 |  |  | (11) |  |  | 3,239 |  |  | (6) |  |  | 66 |
Equity securities, at fair value | 98 |  |  | 1 |  |  | — |  |  | 9 |  |  | — |  |  | (14) |  |  | — |  |  | — |  |  | — |  |  | 94 |  |  | 1 |  |  | — |
Contingent consideration | (2) |  |  | 3 |  |  | — |  |  | — |  |  | (149) |  | (5) | — |  |  | 1 |  |  | — |  |  | — |  |  | (147) |  |  | — |  |  | — |
Stabilizer and MCGs(2) | (19) |  |  | 14 |  |  | — |  |  | — |  |  | (2) |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  | (5) |  |  | — |  |  | — |
Embedded derivatives within reinsurance | (53) |  |  | 13 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 40 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements | 23 |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | (10) |  |  | (15) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Assets held in separate accounts(4) | 340 |  |  | 11 |  |  | — |  |  | 91 |  |  | — |  |  | (46) |  |  | — |  |  | 15 |  |  | (23) |  |  | 388 |  |  | — |  |  | — |
(1) Primarily U.S. dollar denominated. (2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract- by-contract basis. These amounts are included in Net gains (losses) in the Consolidated Statements of Operations. (3) For financial instruments still held as of December 31 amounts are included in Net investment income and Net gains (losses) in the Consolidated Statements of Operations or Unrealized gains (losses) on investments in the Consolidated Statements of Comprehensive Income. (4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income for the Company. (5) Represents a portion of the purchase consideration related to the acquisition of OneAmerica Financial's full-service retirement plan business.
| Year Ended December 31, 2024
| Fair Value as of January 1 |  | Realized/ Unrealized Gains (Losses) Included in: |  | Purchases |  | Issuances |  | Sales |  | Settlements |  | Transfers into Level 3 |  | Transfers out of Level 3 |  | Fair Value as of December 31 |  | Change In Unrealized Gains (Losses) Included in Earnings(3) |  | Change In Unrealized Gains (Losses) Included in OCI(3)
|  | Net Income |  | OCI |  |  |  |  |  |  |  |  |
Fixed maturities, including securities pledged: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies and authorities | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1) |  |  | $ | — |  |  | $ | — |  |  | $ | — |
U.S. corporate public securities | 18 |  |  | — |  |  | (1) |  |  | 49 |  |  | — |  |  | — |  |  | (7) |  |  | — |  |  | — |  |  | 59 |  |  | — |  |  | (2) |
U.S. corporate private securities | 1,526 |  |  | (4) |  |  | 1 |  |  | 377 |  |  | — |  |  | (22) |  |  | (246) |  |  | — |  |  | (135) |  |  | 1,497 |  |  | — |  |  | (5) |
Foreign corporate public securities and foreign governments(1) | — |  |  | — |  |  | — |  |  | 60 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 60 |  |  | — |  |  | — |
Foreign corporate private securities(1) | 436 |  |  | (8) |  |  | (33) |  |  | 35 |  |  | — |  |  | (9) |  |  | (51) |  |  | 51 |  |  | — |  |  | 421 |  |  | — |  |  | (33) |
Residential mortgage-backed securities | 57 |  |  | (4) |  |  | — |  |  | 18 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4) |  |  | 67 |  |  | (4) |  |  | — |
Other asset-backed securities | 52 |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | — |  |  | (7) |  |  | — |  |  | (25) |  |  | 23 |  |  | — |  |  | — |
Total fixed maturities including securities pledged | 2,090 |  |  | (16) |  |  | (33) |  |  | 542 |  |  | — |  |  | (31) |  |  | (311) |  |  | 51 |  |  | (165) |  |  | 2,127 |  |  | (4) |  |  | (40) |
Equity securities, at fair value | 96 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 98 |  |  | 2 |  |  | — |
Contingent consideration | (51) |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 48 |  |  | — |  |  | — |  |  | (2) |  |  | — |  |  | — |
Stabilizer and MCGs(2) | (9) |  |  | (8) |  |  | — |  |  | — |  |  | (2) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (19) |  |  | — |  |  | — |
Embedded derivatives within reinsurance | (58) |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | — |  |  | — |  |  | (53) |  |  | — |  |  | — |
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements | — |  |  | — |  |  | — |  |  | 23 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23 |  |  | — |  |  | — |
Assets held in separate accounts(4) | 348 |  |  | 6 |  |  | — |  |  | 47 |  |  | — |  |  | (26) |  |  | — |  |  | 5 |  |  | (40) |  |  | 340 |  |  | — |  |  | — |
(1) Primarily U.S. dollar denominated. (2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by contract basis. These amounts are included in Net gains (losses) in the Consolidated Statements of Operations. (3) For financial instruments still held as of December 31 amounts are included in Net investment income and Net gains (losses) in the Consolidated Statements of Operations or Unrealized gains (losses) on investments in the Consolidated Statements of Comprehensive Income. (4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income for the Company. For the years ended December 31, 2025 and 2024, the transfers in and out of Level 3 for fixed maturities and separate accounts were due to the variation in inputs relied upon for valuation each quarter. Securities that are primarily valued using independent broker quotes when prices are not available from one of the commercial pricing services are reflected as transfers into Level 3. When securities are valued using more widely available information, the securities are transferred out of Level 3 and into Level 1 or 2, as appropriate. Other Financial Instruments The following disclosures are made in accordance with the requirements of ASC Topic 825 which requires disclosure of fair value information about financial instruments, whether or not recognized at fair value on the Consolidated Balance Sheets. ASC Topic 825 excludes certain financial instruments, including insurance contracts and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying values and estimated fair values of the Company's financial instruments as of the dates indicated:
| December 31, 2025 |  | December 31, 2024
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Assets: |  |  |  |  |  |  |
Fixed maturities, including securities pledged | $ | 30,151 |  |  | $ | 30,151 |  |  | $ | 27,454 |  |  | $ | 27,454 |
Equity securities | 201 |  |  | 201 |  |  | 246 |  |  | 246 |
Mortgage loans on real estate | 5,608 |  |  | 5,522 |  |  | 4,699 |  |  | 4,459 |
Policy loans | 323 |  |  | 323 |  |  | 342 |  |  | 342 |
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements | 2,357 |  |  | 2,357 |  |  | 2,535 |  |  | 2,535 |
Derivatives | 197 |  |  | 197 |  |  | 303 |  |  | 303 |
Embedded derivatives within reinsurance | 55 |  |  | 55 |  |  | 55 |  |  | 55 |
Other investments, including securities pledged | 86 |  |  | 86 |  |  | 74 |  |  | 74 |
Assets held in separate accounts | 113,007 |  |  | 113,007 |  |  | 101,676 |  |  | 101,676 |
Liabilities: |  |  |  |  |  |  |
Investment contract liabilities: |  |  |  |  |  |  |
Funding agreements without fixed maturities and deferred annuities(1) | $ | 33,793 |  |  | $ | 37,154 |  |  | $ | 31,082 |  |  | $ | 32,877 |
Funding agreements with fixed maturities | 2,101 |  |  | 2,120 |  |  | 1,249 |  |  | 1,257 |
Supplementary contracts and immediate annuities | 504 |  |  | 481 |  |  | 570 |  |  | 515 |
Stabilizer and MCGs | 5 |  |  | 5 |  |  | 19 |  |  | 19 |
Derivatives | 282 |  |  | 282 |  |  | 332 |  |  | 332 |
Embedded derivatives within reinsurance(2) | (9) |  |  | (9) |  |  | 41 |  |  | 41 |
Short-term debt | 586 |  |  | 588 |  |  | 399 |  |  | 399 |
Long-term debt | 1,518 |  |  | 1,489 |  |  | 2,103 |  |  | 2,023 |
(1) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within Stabilizer and MCGs. (2) The Company classifies the embedded derivative within the liabilities section as the balance represents an offset to a funds withheld liability. The following table presents the classification of financial instruments which are not carried at fair value on the Consolidated Balance Sheets:
Financial Instrument | Classification
Mortgage loans on real estate | Level 3
Policy loans | Level 2
Other investments | Level 2
Funding agreements without fixed maturities and deferred annuities | Level 3
Funding agreements with fixed maturities | Level 2
Supplementary contracts and immediate annuities | Level 3
Short-term debt and Long-term debt | Level 2

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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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