
	Year Ended December 31, 2024
Successor	Annuities			Life Insurance			Total
	(Dollars in millions)
Balance, beginning of period	$	14,694		$	1,975		$	16,669
Issuances	11,647			62			11,709
Acquisition from business combination (b)	61,296			—			61,296
Derecognition	—			—			—
Premiums received	67			423			490
Policy charges	(442)			(374)			(816)
Surrenders and withdrawals	(8,958)			(66)			(9,024)
Interest credited	2,383			87			2,470
Benefit payments	(646)			—			(646)

Other	5			—			5
Balance, end of period	$	80,046		$	2,107		$	82,153

Reconciling items:
Supplemental contracts	$	514		$	—		$	514
Variable universal life	—			39			39
Variable deferred annuity	7			—			7
Embedded derivative and other	319			47			366
Total PAB balance, end of period	$	80,886		$	2,193		$	83,079

Weighted-average crediting rate	4.19		%	4.21		%
Net amount at risk (a)	$	12,475		$	38,733
Cash surrender value	$	73,832		$	1,860


	Year Ended December 31, 2023
Successor	Annuities			Life Insurance			Total
	(Dollars in millions)
Balance, beginning of period	$	12,012		$	1,899		$	13,911
Issuances	4,382			84			4,466
Acquisition from business combination	—			—			—
Derecognition	—			—			—
Premiums received	34			399			433
Policy charges	(39)			(362)			(401)
Surrenders and withdrawals	(2,132)			(110)			(2,242)
Interest credited	437			65			502
Benefit payments	—			—			—
Net transfers from (to) separate accounts	—			—			—
Other	—			—			—
Balance, end of period	$	14,694		$	1,975		$	16,669

Reconciling items:
Supplemental contracts	$	291		$	—		$	291
Variable universal life	—			36			36
Variable deferred annuity	8			—			8
Embedded derivative and other	135			38			173
Total PAB balance, end of period	$	15,128		$	2,049		$	17,177

Weighted-average crediting rate	3.27		%	3.34		%
Net amount at risk (a)	$	417		$	38,365
Cash surrender value	$	15,000		$	1,796


	Period From May 25, 2022 to December 31, 2022
Successor	Annuities			Life Insurance			Total
	(Dollars in millions)
Balance, beginning of period	$	11,603		$	1,923		$	13,526
Issuances	1,054			45			1,099
Acquisition from business combination	—			—			—
Derecognition	—			—			—
Premiums received	26			226			252
Policy charges	(10)			(273)			(283)
Surrenders and withdrawals	(739)			(38)			(777)
Interest credited	67			23			90
Benefit payments	—			—			—
Net transfers from (to) separate accounts	—			—			—
Other	11			(7)			4
Balance, end of period	$	12,012		$	1,899		$	13,911

Reconciling items:
Supplemental contracts	$	305		$	—		$	305
Variable universal life	—			43			43
Variable deferred annuity	17			—			17
Embedded derivative and other	29			5			34
Total PAB balance, end of period	$	12,363		$	1,947		$	14,310

Weighted-average crediting rate	0.66		%	0.87		%
Net amount at risk (a)	$	313		$	35,899
Cash surrender value	$	10,899		$	1,694


	December 31, 2024
	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 - 50 Basis Points Above		51 - 150 Basis Points Above		> 150 Basis Points Above		Other		Total
		(Dollars in millions)
Annuities	0% - 1%	$	3,963	$	2,838	$	3,768	$	4,787	$	—	$	15,356
	1% - 2%	1,501		341		1,159		1,826		—		4,827
	2% - 3%	1,839		411		159		9,321		—		11,730
	Greater than 3%	282		7		2		9		—		300
Products with either a fixed rate or no guaranteed minimum crediting rate		—		—		—		—		47,833		47,833
	Total	$	7,585	$	3,597	$	5,088	$	15,943	$	47,833	$	80,046

Life Insurance	0% - 1%	$	—	$	—	$	—	$	—	$	—	$	—
	1% - 2%	32		2		60		735		—		829
	2% - 3%	422		—		222		—		—		644
	Greater than 3%	634		—		—		—		—		634
Products with either a fixed rate or no guaranteed minimum crediting rate		—		—		—		—		—		—
	Total	$	1,088	$	2	$	282	$	735	$	—	$	2,107

	December 31, 2023
	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 - 50 Basis Points Above		51 - 150 Basis Points Above		> 150 Basis Points Above		Other		Total
		(Dollars in millions)
Annuities	0% - 1%	$	2,485	$	29	$	483	$	722	$	—	$	3,719
	1% - 2%	668		430		1,943		2,137		—		5,178
	2% - 3%	827		409		56		4,224		—		5,516
	Greater than 3%	264		7		1		1		—		273
Products with either a fixed rate or no guaranteed minimum crediting rate		—		—		—		—		8		8
	Total	$	4,244	$	875	$	2,483	$	7,084	$	8	$	14,694

Life Insurance	0% - 1%	$	—	$	—	$	—	$	—	$	—	$	—
	1% - 2%	168		2		140		371		—		681
	2% - 3%	415		—		219		—		—		634
	Greater than 3%	659		—		—		—		—		659
Products with either a fixed rate or no guaranteed minimum crediting rate		—		—		—		—		1		1
	Total	$	1,242	$	2	$	359	$	371	$	1	$	1,975


	Successor
	Year Ended December 31,				Period From May 25 to December 31,
	2024		2023		2022
	(Dollars in millions)
Balance, beginning of period	$	—	$	44	$	172
Balance, beginning of period, before effect of changes in the instrument-specific credit risk	1		70		216
Acquisition from business combination (a)	2,420		—		—
Issuances	7		1		2
Interest accrual	100		3		2
Attributed fees collected	146		13		5
Benefits payments	—		—		—
Effect of changes in interest rates	(112)		(117)		49
Effect of changes in equity markets	39		171		—
Effect of changes in equity index volatility	(97)		(46)		46
Actual policyholder behavior different from expected behavior	—		(7)		—
Effect of changes in future expected policyholder behavior	2		—		(4)
Effect of changes in other future expected assumptions	43		(87)		(202)
Balance, end of period, before effect of changes in the instrument-specific credit	2,549		1		114
Effect of changes in the ending instrument-specific credit risk	250		(1)		(70)
Balance, end of period	2,799		—		44
Less: Reinsured MRB, end of period	(526)		—		—
Balance, end of period, net of reinsurance	$	2,273	$	—	$	44

Net amount at risk (b)	$	12,051	$	—	$	453
Weighted average attained age of contract holders (years)	71 years		65 years		64 years

The Company’s insurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate, including the U.S. and Bermuda. Certain regulations include restrictions that limit the dividends or other distributions, such as loans or cash advances, available to stockholders without prior approval of the insurance regulatory authorities. The differences between financial statements prepared for insurance regulatory authorities and GAAP financial statements vary by jurisdiction.

The Company’s U.S. insurance subsidiaries prepare financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of each subsidiary's state of domicile, which include certain components of the National Association of Insurance Commissioners ("NAIC") Statutory Accounting Principles ("SAP"). NAIC SAP is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting practices continue to be established by individual state laws and permitted practices. Modifications by the various state insurance departments may impact the statutory capital and surplus of our insurance subsidiaries.

Statutory accounting differs from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefits liabilities using different actuarial assumptions, and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus.

Our U.S. insurance subsidiaries are subject to certain Risk Based Capital (“RBC”) requirements as defined by the National Association of Insurance Commissioners ("NAIC"). RBC requirements require a certain amount of capital and surplus to be maintained based upon various risk factors of the insurance company. Our insurance subsidiaries met the minimum regulatory requirements.

The Company’s Bermuda-domiciled insurance subsidiary, Freestone, is licensed by the Bermuda Monetary Authority (“BMA”). AEL Re Bermuda was a licensed Bermuda-domiciled insurance subsidiary until its deregistration, effective December 31, 2024, following the recapture of the North End Re reinsurance treaty. Freestone prepares statutory financial statements that are generally equivalent to GAAP financial statements, with the exception of prudential filters, which include adjustments to eliminate assets non-admissible for solvency purposes, and permitted practices granted by the BMA.

Freestone is subject to the Insurance Act 1978, as amended (the “Bermuda Insurance Act”). Under the Bermuda Insurance Act, Freestone is required to maintain minimum statutory capital and surplus equal to the greater of a minimum solvency margin and the enhanced capital requirement as determined by the BMA. Freestone met the minimum solvency and minimum liquidity regulatory requirements, which include the Enhanced Capital Requirement (“ECR”), calculated based on the Bermuda Solvency Capital Requirement (“BSCR”) model, which is a risk-based model that takes into account the risk characteristics of different aspects of the insurance company’s business.


	Successor
	Year Ended December 31,
	2024		2023		2022
	(Dollars in millions)
Statutory net income (loss):
American Equity Investment Life Insurance Company (1)	$	(747)	$	—	$	—
American National’s U.S. life insurance entities (2)	(185)		(355)		354
American National’s U.S. property and casualty insurance entities (3)	128		(38)		50

(1)American Equity Investment Life Insurance Company’s, statutory capital and surplus as of December 31, 2023 and statutory net income (loss) for the year ended December 31, 2023, the period from May 25, 2022 to December 31, 2022, and the Predecessor period from January 1, 2022 to May 24, 2022 are not provided as the Company acquired AEL on May 2, 2024. Statutory net income (loss) for the year ended December 31, 2024 presented above represent earnings reported to its regulator and are inclusive of earnings prior to the Company’s acquisition of AEL.

(3)American National’s U.S. property and casualty insurance entities include American National Property and Casualty Company, American National General Insurance Company, American National Lloyd’s Insurance Company, American National County Mutual Insurance Company, Farm Family Casualty Insurance Company, and United Farm Family Insurance Company.

American Equity Investment Life Insurance Company (“AEILIC”) is domiciled in the State of Iowa and is regulated by the Iowa Insurance Division (“IID”). AEILIC uses certain statutory accounting practices prescribed by the IID. AEILIC uses a prescribed practice which allows for call option derivatives instruments hedging the interest credited on fixed indexed annuities to be recorded at amortized cost. The use of this prescribed practice resulted in lower statutory capital and surplus of $91 million as of December 31, 2024. AEILIC also uses a prescribed practice which defines the mortality table allowed for determining the minimum standard of valuation of reserve liabilities for annuities. The use of this prescribed practice resulted in higher statutory capital and surplus of $51 million as of December 31, 2024. The statutory capital and surplus of AEILIC would have remained above the authorized control level RBC had it not used these permitted and prescribed practices.

AEILIC cedes certain lifetime income benefit rider payments in excess of the policyholder’s account balances to three subsidiaries in Vermont, AEL Re Vermont, AEL Re Vermont II and AEL Re Vermont III. The Vermont subsidiaries have been granted permitted practices from the Vermont Department to recognize as an admitted asset an excess of loss reinsurance agreement with a third party which reinsures the lifetime income benefit rider payments in excess of policyholder fund values upon exhaustion of a funds withheld account balance. The permitted practice increased the statutory capital of these Vermont entities by $5.3 billion at December 31, 2024. Without such permitted practices, the risk based capital at the Vermont entities would fall below the minimum regulatory requirements.

American National had been granted a permitted practice from the Texas Department of Insurance to recognize an admitted asset related to the notional value of coverage defined in an excess of loss reinsurance agreement. This permitted practice was withdrawn in 2024. The permitted practice increased the statutory capital and surplus of American National by $548 million at December 31, 2023. The statutory capital and surplus of American National would have remained above authorized control level RBC had it not used the permitted practice.

One of American National’s insurance subsidiaries has been granted a permitted practice from the Nebraska Department of Insurance to record as the valuation of its investment in a wholly-owned subsidiary that is the attorney-in-fact for a Texas domiciled insurer, the statutory capital and surplus of the Texas domiciled insurer. This permitted practice increased the statutory capital and surplus of American National Property And Casualty Company ("ANPAC") by $65 million and $71 million at December 31, 2024 and 2023, respectively. The statutory capital and surplus of both ANPAC and American National Lloyds Insurance Company would have remained above the authorized control level RBC had it not used the permitted practice. ANPAC redomesticated from Missouri to Nebraska in 2024.

The ability of the Company’s insurance subsidiaries to pay dividends, or other distributions, to their parent companies (and ultimately the Company) is subject to certain restrictions imposed by the jurisdictions of domicile that regulate these insurance subsidiaries, and each jurisdiction typically has calculations for the amount of dividends that an insurance company can pay without the prior approval of the insurance regulatory authorities.

U.S. insurance entities – Various state insurance laws restrict the amount that may be transferred to the parent company by its insurance subsidiaries in the form of dividends without prior approval of the insurance regulatory authorities. These restrictions are based, in part, on the prior year’s statutory income and surplus. In general, dividends up to specified levels are considered ordinary and may be paid without prior regulatory approval. Dividends in larger amounts, or extraordinary dividends, are subject to the approval by the insurance commissioner of the applicable state of domicile.

Bermuda insurance entities – Under the Bermuda Insurance Act, Bermuda insurance entities are generally prohibited from declaring or paying, in any financial year, dividends of more than 25% of its prior financial year’s total statutory capital and surplus unless it files with the BMA an affidavit signed by at least two directors and the principal representative in Bermuda stating that it will continue to meet its relevant margins.