XML 27 R12.htm IDEA: XBRL DOCUMENT
v3.25.4

Derivative Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments The Company primarily enters into the following types of derivatives: Interest rate swaps: The Company uses interest rate swaps primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships. Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships. Total return swaps: The Company uses total return swaps as a hedge of interest related risks within various Legacy Annuity and Retirement products. Total return swaps are also used as a hedge of other corporate liabilities. Using total return swaps, the Company agrees with another party to exchange, at specified intervals, the difference between the economic performance of assets or a market index and a fixed or variable funding multiplied by reference to an agreed upon notional amount. No cash is exchanged at the onset of the contracts. Cash is paid and received over the life of the contract based upon the terms of the swaps. The Company utilizes these contracts in non-qualifying hedging relationships. Futures: Futures contracts are used to hedge against a decrease in certain equity indices. The Company uses interest rate futures contracts to hedge its exposure to market risks due to changes in interest rates. The Company enters into exchange-traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margins, with the exchange, on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. The Company may also use futures contracts as a hedge against an increase in certain equity indices. Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives. These derivatives are generally considered total return swaps with contractual returns attributable to various assets and liabilities associated with these reinsurance agreements. The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various product lines. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments. Based on the notional amounts, a substantial portion of the Company's derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as outlined in ASC Topic 815 as of December 31, 2025 and 2024. Refer to the Business, Basis of Presentation and Significant Accounting Policies Note to these Consolidated Financial Statements for the Company's accounting policy on derivatives. The notional amounts and fair values of derivatives were as follows as of the dates indicated:
| December 31, 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 | 166 |  |  | — |  |  | 2 |  |  | 106 |  |  | 6 |  |  | — |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts | 12 |  |  | — |  |  | — |  |  | 11 |  |  | — |  |  | — |
Foreign exchange contracts | 521 |  |  | 9 |  |  | 18 |  |  | 623 |  |  | 46 |  |  | 2 |
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts | 14,815 |  |  | 184 |  |  | 258 |  |  | 14,633 |  |  | 246 |  |  | 313 |
Foreign exchange contracts | 197 |  |  | 1 |  |  | 2 |  |  | 203 |  |  | 3 |  |  | 6 |
Equity contracts | 248 |  |  | 3 |  |  | 2 |  |  | 286 |  |  | 2 |  |  | 9 |
Credit contracts | 75 |  |  | — |  |  | — |  |  | 97 |  |  | — |  |  | 2 |
Embedded derivatives and MCGs:
Within fixed maturity investments(4) | N/A |  | 1 |  |  | — |  |  | N/A |  | — |  |  | 4 |
Within reinsurance agreements(5) | N/A |  | 55 |  |  | (9) |  | (6) | N/A |  | 55 |  |  | 41 |
MCGs(7) | N/A |  | — |  |  | — |  |  | N/A |  | — |  |  | 4 |
Stabilizer(7) | N/A |  | — |  |  | 5 |  |  | N/A |  | — |  |  | 15 |
Total |  |  | $ | 253 |  |  | $ | 278 |  |  |  |  | $ | 358 |  |  | $ | 396 |
(1) Open derivative contracts are reported as Derivatives assets or liabilities at fair value on the Consolidated Balance Sheets. (2) Total carrying amount of hedged assets and liabilities was $365 and $307 as of December 31, 2025 and 2024, respectively. (3) The cumulative amount of fair value hedging adjustments included in the carrying amount of hedged assets and liabilities was $4 and $(8) as of December 31, 2025 and 2024, respectively, of which $2 related to discontinued hedging relationships. (4) Included in Fixed maturities, available-for-sale, at fair value on the Consolidated Balance Sheets. (5) Included in Other liabilities, Other assets and Premium receivable and reinsurance recoverable on the Consolidated Balance Sheets. (6) The Company classifies the embedded derivative within the liabilities section as the balance represents an offset to a funds withheld liability. (7) Included in Contract owner account balances on the Consolidated Balance Sheets. N/A - Not applicable See the Fair Value Measurements (excluding Consolidated Investment Entities) Note to these Consolidated Financial Statements for additional information on derivative asset and liability fair values. The Company does not offset any derivative assets and liabilities in the 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
December 31, 2025
Derivative assets | $ | 197 |  | $ | (189) |  | $ | (5) |  | $ | — |  | $ | 3 |
Derivative liabilities | 282 |  | (189) |  | (79) |  | (11) |  | 3 |
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. Collateral As of December 31, 2025, the Company held $3 and pledged $77 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2024, the Company held $33 and $56 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of December 31, 2025, the Company delivered $204 of securities and held no securities as collateral. As of December 31, 2024, the Company delivered $159 of securities and held $4 securities as collateral. The location and effect of derivatives qualifying for hedge accounting on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income were as follows for the periods indicated:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
| Interest Rate Contracts |  | Foreign Exchange Contracts |  | Interest Rate Contracts |  | Foreign Exchange Contracts |  | Interest Rate Contracts |  | Foreign Exchange Contracts
Location of Gain (Loss) Reclassified from AOCI into Income | Net investment income |  | Net investment income and Net gains (losses) |  | Net investment income |  | Net investment income and Net gains (losses) |  | Net investment income |  | Net investment income and Net gains (losses)
Amount of Gain (Loss) Recognized in Other Comprehensive Income(1) | $ | — |  |  | $ | (54) |  |  | $ | — |  |  | $ | 18 |  |  | $ | — |  |  | $ | (43) |
Amount of Gain (Loss) Reclassified from AOCI | — |  |  | 8 |  |  | — |  |  | 16 |  |  | — |  |  | 10 |
(1) See the Accumulated Other Comprehensive Income (Loss) Note to these Consolidated Financial Statements for additional information. The location and amount of gain (loss) recognized in the Consolidated Statements of Operations for derivatives qualifying for hedge accounting were as follows for the periods indicated:
| Year Ended December 31, |  |  |  |
| 2025 |  | 2024 |  | 2023 |  |  |  |  |  |
| Net investment income |  |  | Net gains (losses) |  | Net investment income |  | Net gains (losses) |  | Net investment income |  | Net gains (losses) |  |  |  |  |  |  |
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | 2,318 |  |  |  | $ | (130) |  |  | $ | 2,074 |  |  | $ | (27) |  |  | $ | 2,159 |  |  | $ | (72) |  |  |  |  |  |  |  |
Fair value hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedged items | — |  |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments(1) | — |  |  |  | — |  |  | — |  |  | (2) |  |  | — |  |  | — |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedged items | — |  |  |  | 14 |  |  | — |  |  | (6) |  |  | — |  |  | 3 |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments(1) | — |  |  |  | (12) |  |  | — |  |  | 8 |  |  | — |  |  | (1) |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (loss) reclassified from AOCI into income | 6 |  |  |  | 2 |  |  | 10 |  |  | 6 |  |  | 10 |  |  | — |  |  |  |  |  |  |  |
(1) The change in derivative instruments designated and qualifying as fair value hedges of $2 were excluded from the assessment of hedge effectiveness and recognized currently in earnings for the years ended December 31, 2025, 2024 and 2023, respectively. The location and effect of derivatives not designated as hedging instruments in the Consolidated Statements of Operations were as follows for the periods indicated:
| Location of Gain (Loss) Recognized on Derivative |  | Year Ended December 31, |  |  |  |
|  | 2025 |  | 2024 |  | 2023 |  |  |
Derivatives: Non-qualifying for hedge accounting |  |  |  |
Interest rate contracts | Net gains (losses) |  | $ | (42) |  |  | $ | 170 |  |  | $ | 15 |  |  |  |  |
Foreign exchange contracts | Net gains (losses) |  | 7 |  |  | (8) |  |  | — |  |  |  |  |
Equity contracts | Net gains (losses) |  | 16 |  |  | 18 |  |  | 14 |  |  |  |  |
Credit contracts | Net gains (losses) |  | (1) |  |  | 1 |  |  | 1 |  |  |  |  |
Embedded derivatives and MCGs: |  |  |  |
Within fixed maturity investments | Net gains (losses) |  | 5 |  |  | (6) |  |  | (1) |  |  |  |  |
Within reinsurance agreements(1) | (2) |  | (3) |  |  | (3) |  |  | (37) |  |  |  |  |
MCGs | Net gains (losses) |  | 4 |  |  | 4 |  |  | (2) |  |  |  |  |
Stabilizer | Net gains (losses) |  | 10 |  |  | (14) |  |  | (1) |  |  |  |  |
Total |  |  | $ | (4) |  |  | $ | 162 |  |  | $ | (11) |  |  |  |  |
(1) For the years ended December 31, 2025, 2024 and 2023, the amount excludes gains (losses) from standalone derivatives of $13, $(1), and $0, respectively, recognized in Net gains (losses).

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 182 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-182 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 185 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-185 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 184 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-184 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 181 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-181 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(5) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4H -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4H Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4H -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4H Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 15 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480960/815-15-50-3 Reference 13: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 183 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-183 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(4) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4I -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4I Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4F -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4F Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(iii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(ii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1B Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 26: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 27: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 28: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 29: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent Reference 30: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 31: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration