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Variable Interest Entities and Equity Method Investments | 6 Months Ended
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Jun. 30, 2025
Equity Method Investments and Joint Ventures [Abstract] |
Variable Interest Entities and Equity Method Investments | 8. Variable Interest Entities and Equity Method Investments Through its investment activities, the Company regularly invests in various entities including limited partnerships (“LPs”) and limited liability companies (“LLCs”) and frequently participates in the design with their sponsors, but in most cases, its involvement is limited to financing. Some of these entities have been determined to be variable interest entities (“VIEs”). In certain instances, in addition to an economic interest in the entity, the Company holds the power to direct the most significant activities of the entity and is deemed the primary beneficiary. The Company consolidates all VIEs for which it is the primary beneficiary. The assets of consolidated VIEs are restricted and must first be used to settle their liabilities. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of the Company, as its obligation is limited to the amount of its committed investment. The Company has not provided financial or other support to these consolidated VIEs in the form of liquidity arrangements, guarantees or other commitments to third-parties that may affect the fair value or risk of its variable interest in these VIEs as of June 30, 2025 and December 31, 2024. In addition to investment activities, certain of the Company’s subsidiaries are deemed VIEs. The Company is the primary beneficiary and consolidates these entities in the same manner as other entities in which the Company has a controlling financial interest by holding a majority voting interest. Consolidated Variable Interest Entities The assets and liabilities relating to the consolidated VIEs from the Company’s investment activities included in the financial statements are as follows:
| June 30, 2025 |  | December 31, 2024
| (Dollars in millions)
Available-for-sale fixed maturity securities | $ | 80 |  |  | $ | 107 |
Equity securities | 95 |  |  | 93 |
Mortgage loans on real estate, net of allowance | 212 |  |  | 206 |
Private loans, net of allowance | 1,698 |  |  | 1,373 |
Investment real estate | 2,277 |  |  | 2,046 |
Real estate partnerships | 2,195 |  |  | 1,398 |
Investment funds | 2,511 |  |  | 2,331 |
Short-term investments | 50 |  |  | 75 |
Other invested assets | 206 |  |  | 337 |
Cash and cash equivalents | 167 |  |  | 223 |
Other assets | 248 |  |  | 327 |
Total assets of consolidated VIEs | $ | 9,739 |  |  | $ | 8,516 |
Notes payable | $ | 200 |  |  | $ | 189 |
Other liabilities | 435 |  |  | 587 |
Total liabilities of consolidated VIEs | $ | 635 |  |  | $ | 776 |
Unconsolidated Variable Interest Entities For certain of the Company’s investments in various entities that are determined to be VIEs, the Company is not the primary beneficiary as it does not take an active role in the management of these investments. Such investments are reported in certain investment line items on the statements of financial position, including “Available-for-sale fixed maturity securities, fair value”, “Equity securities, at fair value”, “Mortgage loans on real estate, at amortized cost”, “Investment funds”, “Short-term investments, at estimated fair value” and “Other invested assets”. In some instances, a consolidated VIE involves one or more underlying entities for which the Company is not the primary beneficiary because it does not have the power to direct the most significant activities of these entities. These unconsolidated VIEs that are part of consolidated VIEs are reported primarily in “Real estate and real estate partnerships” on the statements of financial position. Creditors or beneficial interest holders of the unconsolidated VIEs have no recourse to the general credit of the Company, as its obligation is limited to the amount of its committed investment. The Company has not provided financial or other support to these unconsolidated VIEs in the form of liquidity arrangements, guarantees or other commitments to third-parties that may affect the fair value or risk of its variable interest in these VIEs as of June 30, 2025 and December 31, 2024. The carrying amount and maximum exposure to loss relating to these unconsolidated VIEs are as follows:
| June 30, 2025 |  | December 31, 2024
| Carrying Amount |  | Maximum Exposure to Loss |  | Carrying Amount |  | Maximum Exposure to Loss
| (Dollars in millions)
Available-for-sale fixed maturity securities | $ | 1,223 |  |  | $ | 1,333 |  |  | $ | 2,146 |  |  | $ | 3,007 |
Equity securities | 450 |  |  | 450 |  |  | 291 |  |  | 291 |
Mortgage loans on real estate, net of allowance | 615 |  |  | 616 |  |  | 716 |  |  | 731 |
Private loans, net of allowance | 1,493 |  |  | 1,493 |  |  | 1,160 |  |  | 1,160 |
Real estate partnerships | 2,904 |  |  | 2,908 |  |  | 2,689 |  |  | 2,720 |
Investment funds | 841 |  |  | 1,053 |  |  | — |  |  | — |
Short-term investments | 446 |  |  | 446 |  |  | 99 |  |  | 99 |
Other invested assets | 1,177 |  |  | 1,217 |  |  | 2,084 |  |  | 2,100 |
Cash and cash equivalents | — |  |  | — |  |  | 7 |  |  | 7 |
Total | $ | 9,149 |  |  | $ | 9,516 |  |  | $ | 9,192 |  |  | $ | 10,115 |
Equity Method Investments Our investments in investment funds, real estate partnerships, and other partnerships, of which substantially all are LPs or LLCs, are accounted for using the equity method of accounting, except for certain investments that are fair valued due to the application of fair value option under ASC 825 or the consolidation of investment company VIE under ASC 946. As of June 30, 2025 and December 31, 2024, the Company’s equity method investments totaled $5.3 billion and $5.3 billion, respectively. The Company generally recognizes its share of earnings in its equity method investments within “Net investment income” using a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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