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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Schedule of Carrying Amount and Fair Value of Financial Instruments

The carrying amount and fair value of financial instruments are shown below:

			June 30, 2025												December 31, 2024
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
			(Dollars in millions)
Financial assets:
Available-for-sale fixed maturity securities			$	48,931					$	48,931					$	47,292					$	47,292
Equity securities			1,238						1,238						1,142						1,142
Mortgage loans on real estate, net of allowance			11,254						11,187						12,117						11,928
Private loans, net of allowance			8,120						8,146						5,732						5,790
Real estate partnerships (1)			1,712						1,712						932						932
Investment funds (2)			141						141						124						124
Policy loans			257						257						274						274
Short-term investments (3)			4,067						4,067						4,177						4,177
Other invested assets:
Derivative assets			1,101						1,101						1,341						1,341
Collaterals received on derivatives (excluding excess collateral)			(1,008)						(1,008)						(1,298)						(1,298)
Separately managed accounts			61						61						71						71
Other (4)			864						865						941						943
Cash and cash equivalents			12,104						12,104						11,330						11,330
Other assets - market risk benefits			1,035						1,035						857						857
Separate account assets (5)			1,322						1,322						1,343						1,343
Total financial assets			$	91,199					$	91,159					$	86,375					$	86,245
Financial liabilities:
Policyholders’ account balances – embedded derivative			$	6,257					$	6,257					$	1,123					$	1,123
Market risk benefits			4,227						4,227						3,655						3,655
Other liabilities:
Derivative liabilities			101						101						—						—
Funds withheld for reinsurance liabilities			63						63						37						37
Notes payable			200						200						189						189
Long term borrowings			2,953						3,017						2,957						2,977
Separate account liabilities (5)			1,322						1,322						1,343						1,343
Total financial liabilities			$	15,123					$	15,187					$	9,304					$	9,324

(1)Balances represent real estate partnerships in which the Company has elected the fair value option under ASC 825. Real estate partnerships accounted for as equity method investments are $1.8 billion and directly held real estate is $2.4 billion as of June 30, 2025. Real estate partnerships accounted for as equity method investments are $1.8 billion and directly held real estate is $2.2 billion as of December 31, 2024.

(2)Balances represent financial assets that are fair valued as a result of consolidation of investment company VIEs in accordance with ASC 946. Investment funds accounted for as equity method investments are $2.5 billion and investment funds measured using NAV as a practical expedient are $351 million as of June 30, 2025. Investment funds accounted for as equity method investments are $2.5 billion and investment funds measured using NAV as a practical expedient are $353 million as of December 31, 2024.

(3)Balance as of June 30, 2025 includes $400 million of amounts loaned under reverse repurchase agreements. The fair value of the collateral received under these agreements was $1.0 billion as of June 30, 2025. Balance as of December 31, 2024 includes $400 million of amounts loaned under reverse repurchase agreements. The fair value of the collateral received under these agreements was $783 million as of December 31, 2024.

(4)Other invested assets accounted for as equity method investments, and therefore excluded from the table, are $994 million and $959 million as of June 30, 2025 and December 31, 2024.

(5)Balance includes $30 million and $31 million of assets, and corresponding liabilities, that are not subject to the fair value hierarchy as of June 30, 2025 and December 31, 2024, respectively.

Schedule of Fair Value Hierarchy Measurements of Financial Instruments

The fair value hierarchy measurements for assets and liabilities measured at fair value on a recurring basis are shown below:

			Total Fair Value						Level 1						Level 2						Level 3
			(Dollars in millions)
June 30, 2025
Financial assets
Available-for-sale fixed maturity securities:
U.S. treasury and government			$	93					$	79					$	14					$	—
U.S. state and municipal			3,121						—						3,066						55
Foreign governments			1,318						—						1,318						—
Corporate debt securities			34,888						—						34,124						764
Residential mortgage-backed securities			999						—						980						19
Commercial mortgage-backed securities			3,259						—						3,222						37
Collateralized debt securities			5,253						—						2,550						2,703
Total available-for-sale fixed maturity securities			48,931						79						45,274						3,578
Equity securities:
Common stock			807						748						2						57
Preferred stock			431						5						23						403
Private equity and other			—						—						—						—
Total equity securities			1,238						753						25						460
Real estate at fair value (1)			1,271						—						—						1,271
Real estate partnerships at fair value (1)			1,712						—						—						1,712
Investment funds (1)(2)			141						—						—						141
Short-term investments			4,067						2,710						875						482
Other invested assets:
Derivative assets			1,101						—						913						188
Collaterals received on derivatives (excluding excess collateral)			(1,008)						(1,008)						—						—
Separately managed accounts			61						—						—						61
Other			216						—						3						213
Cash and cash equivalents			12,104						12,104						—						—
Other assets – market risk benefit assets			1,035						—						—						1,035
Separate account assets (3)			1,292						976						316						—
Total financial assets			$	72,161					$	15,614					$	47,406					$	9,141
Financial liabilities
Policyholders’ account balances – embedded derivative			$	6,257					$	—					$	—					$	6,257
Market risk benefits			4,227						—						—						4,227
Funds withheld for reinsurance liabilities – embedded derivatives			63						—						—						63
Other liabilities – derivative liabilities			101						—						101						—
Separate account liabilities (3)			1,292						976						316						—
Total financial liabilities			$	11,940					$	976					$	417					$	10,547

(1)Balances represent financial assets that are fair valued in accordance with ASC 825 as well as financial assets that are fair valued as a result of consolidation of investment company VIE in accordance with ASC 946.

(2)Balance excludes $351 million of investments measured at estimated fair value using NAV as a practical expedient.

(3)Balance includes $30 million of assets, and corresponding liabilities, that are not subject to fair value hierarchy.

			Total Fair Value						Level 1						Level 2						Level 3
			(Dollars in millions)
December 31, 2024
Financial assets
Available-for-sale fixed maturity securities:
U.S. treasury and government			$	86					$	76					$	10					$	—
U.S. state and municipal			3,207						—						3,151						56
Foreign governments			1,541						—						1,541						—
Corporate debt securities			32,848						—						30,192						2,656
Residential mortgage-backed securities			1,106						—						1,087						19
Commercial mortgage-backed securities			2,796						—						2,721						75
Collateralized debt securities			5,708						—						3,077						2,631
Total available-for-sale fixed maturity securities			47,292						76						41,779						5,437
Equity securities:
Common stock			747						606						25						116
Preferred stock			391						22						12						357
Private equity and other			4						—						—						4
Total equity securities			1,142						628						37						477
Real estate at fair value (1)			1,283						—						—						1,283
Real estate partnerships at fair value (1)			932						—						—						932
Investment funds (1)(2)			124						—						—						124
Short-term investments			4,177						3,003						821						353
Other invested assets:
Derivative assets			1,341						—						1,118						223
Collaterals received on derivatives (excluding excess collateral)			(1,298)						(1,298)						—						—
Separately managed accounts			71						—						—						71
Other			315						—						11						304
Cash and cash equivalents			11,330						11,330						—						—
Other assets – market risk benefit assets			857						—						—						857
Separate account assets (3)			1,312						258						1,054						—
Total financial assets			$	68,878					$	13,997					$	44,820					$	10,061
Financial liabilities
Policyholders’ account balances – embedded derivative			$	1,123					$	—					$	—					$	1,123
Market risk benefits			3,655						—						—						3,655
Funds withheld for reinsurance liabilities – embedded derivatives			37						—						—						37
Separate account liabilities (3)			1,312						258						1,054						—
Total financial liabilities			$	6,127					$	258					$	1,054					$	4,815

(1)Balances represent financial assets that are fair valued in accordance with ASC 825 as well as financial assets that are fair valued as a result of consolidation of investment company VIE in accordance with ASC 946.

(2)Balance excludes $353 million of investments measured at estimated fair value using NAV as a practical expedient.

(3)Balance includes $31 million of assets, and corresponding liabilities, that are not subject to fair value hierarchy.

Schedule of Carrying Value and Estimated Fair Value of Financial Instruments Not Recorded at Fair Value on a Recurring Basis

The carrying amount and estimated fair value of financial instruments not recorded at fair value on a recurring basis are shown below. The table below excludes accrued investment income, which is recorded at amortized cost in the statements of financial position, as their carrying amounts approximate the fair values due to their short-term nature.

			Carrying Amount						Fair Value						Fair Value Hierarchy Level
															Level 1						Level 2						Level 3
			(Dollars in millions)
June 30, 2025
Financial assets
Mortgage loans on real estate, net of allowance			$	11,254					$	11,187					$	—					$	—					$	11,187
Private loans, net of allowance			8,120						8,146						—						100						8,046
Policy loans			257						257						—						—						257
Other invested assets			648						649						—						414						235
Total financial assets			$	20,279					$	20,239
Financial liabilities
Policyholders' account balances – investment contracts, excluding embedded derivative			$	78,054					$	78,037					$	—					$	—					$	78,037
Long term borrowings			2,953						3,017						—						—						3,017
Notes payable			200						200						—						—						200
Total financial liabilities			$	81,207					$	81,254
			Carrying Amount						Fair Value						Fair Value Hierarchy Level
															Level 1						Level 2						Level 3
			(Dollars in millions)
December 31, 2024
Financial assets
Mortgage loans on real estate, net of allowance			$	12,117					$	11,928					$	—					$	—					$	11,928
Private loans, net of allowance			5,732						5,790						—						145						5,645
Policy loans			274						274						—						—						274
Other invested assets			626						628						—						406						222
Total financial assets			$	18,749					$	18,619
Financial liabilities
Policyholders' account balances – investment contracts, excluding embedded derivative			$	79,384					$	79,384					$	—					$	—					$	79,384
Long term borrowings			2,957						2,977						—						—						2,977
Notes payable			189						189						—						—						189
Total financial liabilities			$	82,530					$	82,551

Schedule of Fair Value Assets Measured on Recurring Basis

For financial assets and financial liabilities measured at fair value on a recurring basis using Level 3 inputs during the periods, reconciliations of the beginning and ending balances are shown below:

			Three Months Ended June 30, 2025
			Assets															Liabilities
			Invested Assets (1)						Derivative Assets																		Policyholders’ Account Balances – Embedded Derivative												Funds Withheld for Reinsurance Liabilities - Embedded Derivative
			(Dollars in millions)
Balance, beginning of period			$	9,743					$	149																	$	948											$	55
Fair value changes in net income			50						66																		242												8
Fair value changes in other comprehensive income			(10)						—																		—												—
Purchases			1,218						34																		—												—
Sales			(1,537)						—																		—												—
Settlements or maturities			(134)						(61)																		—												—
Premiums less benefits			—						—																		1												—
Transfers into Level 3			235						—																		5,066												—
Transfers out of Level 3			(1,647)						—																		—												—
Balance, end of period			$	7,918					$	188																	$	6,257											$	63
			Three Months Ended June 30, 2024
			Assets																					Liabilities
			Invested Assets (1)						Derivative Assets																		Policyholders’ Account Balances – Embedded Derivative												Funds Withheld for Reinsurance Liabilities - Embedded Derivative
			(Dollars in millions)
Balance, beginning of period			$	5,199					$	257																	$	904											$	—
Acquisitions from business combination			4,288						—																		—												—
Fair value changes in net income			12						24																		287												79
Fair value changes in other comprehensive income			875						—																		—												—
Purchases			1,302						39																		—												—
Sales			(2,048)						—																		—												—
Settlements or maturities			(2)						(66)																		(30)												—
Premiums less benefits			—						—																		35												—
Transfers into Level 3			112						—																		—												—
Transfers out of Level 3			(139)						—																		—												—
Balance, end of period			$	9,599					$	254																	$	1,196											$	79

			Six Months Ended June 30, 2025
			Assets															Liabilities
			Invested Assets (1)						Derivative Assets																		Policyholders’ Account Balances – Embedded Derivative												Funds Withheld for Reinsurance Liabilities - Embedded Derivative
			(Dollars in millions)
Balance, beginning of year			$	8,981					$	223																	$	1,123											$	37
Fair value changes in net income			105						28																		(26)												26
Fair value changes in other comprehensive income			18						—																		—												—
Purchases			1,381						67																		—												—
Sales			(1,582)						—																		—												—
Settlements or maturities			(147)						(130)																		—												—
Premiums less benefits			—						—																		94												—
Transfers into Level 3			930						—																		5,066												—
Transfers out of Level 3			(1,768)						—																		—												—
Balance, end of period			$	7,918					$	188																	$	6,257											$	63
			Six Months Ended June 30, 2024
			Assets															Liabilities
			Invested Assets (1)						Derivative Assets																		Policyholders’ Account Balances – Embedded Derivative												Funds Withheld for Reinsurance Liabilities - Embedded Derivative
			(Dollars in millions)
Balance, beginning of year			$	5,585					$	227																	$	873											$	—
Acquisitions from business combination			4,288						—																		—												—
Fair value changes in net income			12						81																		324												79
Fair value changes in other comprehensive income			182						—																		—												—
Purchases			3,346						74																		—												—
Sales			(3,785)						—																		—												—
Settlements or maturities			(2)						(128)																		(30)												—
Premiums less benefits			—						—																		29												—
Transfers into Level 3			112						—																		—												—
Transfers out of Level 3			(139)						—																		—												—
Balance, end of period			$	9,599					$	254																	$	1,196											$	79

(1)Balance includes separately managed accounts and certain consolidated variable interest entities.

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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Tabular disclosure of information about fair value of asset and liability not measured at fair value.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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