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Variable Interest Entities and Equity Method Investments
 6 Months Ended
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, 2025December 31, 2024
(Dollars in millions)
Available-for-sale fixed maturity securities$80 $107 
Equity securities95 93 
Mortgage loans on real estate, net of allowance212 206 
Private loans, net of allowance1,698 1,373 
Investment real estate2,277 2,046 
Real estate partnerships2,195 1,398 
Investment funds2,511 2,331 
Short-term investments50 75 
Other invested assets
206 337 
Cash and cash equivalents167 223 
Other assets248 327 
Total assets of consolidated VIEs$9,739 $8,516 
Notes payable$200 $189 
Other liabilities435 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, 2025December 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 securities450 450 291 291 
Mortgage loans on real estate, net of allowance615 616 716 731 
Private loans, net of allowance1,493 1,493 1,160 1,160 
Real estate partnerships2,904 2,908 2,689 2,720 
Investment funds841 1,053 — — 
Short-term investments446 446 99 99 
Other invested assets1,177 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.