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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 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:

			September 30, 2025												December 31, 2024
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
			(Dollars in millions)
Financial assets:
Available-for-sale fixed maturity securities			$	55,408					$	55,408					$	47,292					$	47,292
Equity securities			1,212						1,212						1,142						1,142
Mortgage loans on real estate, net of allowance			11,090						11,094						12,117						11,928
Private loans, net of allowance			8,387						8,446						5,732						5,790
Real estate partnerships (1)			1,714						1,714						932						932
Investment funds (2)			147						147						124						124
Policy loans			253						253						274						274
Short-term investments (3)			1,435						1,435						4,177						4,177
Other invested assets:
Derivative assets			1,458						1,458						1,341						1,341
Collaterals received on derivatives (excluding excess collateral)			(1,384)						(1,384)						(1,298)						(1,298)
Separately managed accounts			56						56						71						71
Other (4)			991						1,017						941						943
Cash and cash equivalents			11,568						11,568						11,330						11,330
Other assets - market risk benefits			1,110						1,110						857						857
Separate account assets (5)			1,195						1,195						1,343						1,343
Total financial assets			$	94,640					$	94,729					$	86,375					$	86,245
Financial liabilities:
Policyholders’ account balances – embedded derivative			$	6,341					$	6,341					$	1,123					$	1,123
Market risk benefits			4,505						4,505						3,655						3,655
Other liabilities:
Derivative liabilities			86						86						—						—
Funds withheld for reinsurance liabilities			83						83						37						37
Notes payable			204						206						189						189
Long term borrowings			3,449						3,566						2,957						2,977
Separate account liabilities (5)			1,195						1,195						1,343						1,343
Total financial liabilities			$	15,863					$	15,982					$	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 $2.6 billion as of September 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 $3.3 billion and investment funds measured using NAV as a practical expedient are $334 million as of September 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 September 30, 2025 includes $400 million of amounts loaned under reverse repurchase agreements. The fair value of the collateral received under these agreements was $815 million as of September 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 $973 million and $959 million as of September 30, 2025 and December 31, 2024.

(5)Balance includes $29 million and $31 million of assets, and corresponding liabilities, that are not subject to the fair value hierarchy as of September 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)
September 30, 2025
Financial assets
Available-for-sale fixed maturity securities:
U.S. treasury and government			$	93					$	80					$	13					$	—
U.S. state and municipal			3,134						—						3,077						57
Foreign governments			1,240						—						1,240						—
Corporate debt securities			41,581						—						40,830						751
Residential mortgage-backed securities			992						—						964						28
Commercial mortgage-backed securities			3,291						—						3,261						30
Collateralized debt securities			5,077						—						2,316						2,761
Total available-for-sale fixed maturity securities			55,408						80						51,701						3,627
Equity securities:
Common stock			778						771						2						5
Preferred stock			434						5						45						384
Private equity and other			—						—						—						—
Total equity securities			1,212						776						47						389
Real estate at fair value (1)			1,254						—						—						1,254
Real estate partnerships at fair value (1)			1,714						—						—						1,714
Investment funds (1)(2)			147						—						—						147
Short-term investments			1,435						38						872						525
Other invested assets:
Derivative assets			1,458						—						1,245						213
Collaterals received on derivatives (excluding excess collateral)			(1,384)						(1,384)						—						—
Separately managed accounts			56						—						—						56
Other			201						—						2						199
Cash and cash equivalents			11,568						11,568						—						—
Other assets – market risk benefit assets			1,110						—						—						1,110
Separate account assets (3)			1,166						1,027						139						—
Total financial assets			$	75,345					$	12,105					$	54,006					$	9,234
Financial liabilities
Policyholders’ account balances – embedded derivative			$	6,341					$	—					$	—					$	6,341
Market risk benefits			4,505						—						—						4,505
Funds withheld for reinsurance liabilities – embedded derivatives			83						—						—						83
Other liabilities – derivative liabilities			86						—						86						—
Separate account liabilities (3)			1,166						1,027						139						—
Total financial liabilities			$	12,181					$	1,027					$	225					$	10,929

(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 $334 million of investments measured at estimated fair value using NAV as a practical expedient.

(3)Balance includes $29 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)
September 30, 2025
Financial assets
Mortgage loans on real estate, net of allowance			$	11,090					$	11,094					$	—					$	—					$	11,094
Private loans, net of allowance			8,387						8,446						—						126						8,320
Policy loans			253						253						—						—						253
Other invested assets			790						816						—						418						398
Total financial assets			$	20,520					$	20,609
Financial liabilities
Policyholders' account balances – investment contracts, excluding embedded derivative			$	80,470					$	80,452					$	—					$	—					$	80,452
Long term borrowings			3,449						3,566						—						—						3,566
Notes payable			204						206						—						—						206
Total financial liabilities			$	84,123					$	84,224
			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 September 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			$	7,918					$	188																	$	6,257											$	63
Fair value changes in net income			(22)						58																		30												20
Fair value changes in other comprehensive income			49						—																		—												—
Purchases			402						34																		—												—
Sales			(327)						—																		—												—
Settlements or maturities			(175)						(67)																		—												—
Premiums less benefits			—						—																		54												—
Transfers into Level 3			112						—																		—												—
Transfers out of Level 3			(46)						—																		—												—
Balance, end of period			$	7,911					$	213																	$	6,341											$	83
			Three Months Ended September 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			$	9,598					$	254																	$	1,196											$	79
Fair value changes in net income			177						41																		533												199
Fair value changes in other comprehensive income			(61)						—																		—												—
Purchases			1,697						37																		—												—
Sales			(298)						(67)																		—												—
Premiums less benefits			—						—																		42												—
Transfers into Level 3			65						—																		—												—
Transfers out of Level 3			(203)						—																		—												—
Balance, end of period			$	10,975					$	265																	$	1,771											$	278
			Nine Months Ended September 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			83						86																		4												46
Fair value changes in other comprehensive income			67						—																		—												—
Purchases			1,783						101																		—												—
Sales			(1,909)						—																		—												—
Settlements or maturities			(322)						(197)																		—												—
Premiums less benefits			—						—																		148												—
Transfers into Level 3			1,042						—																		5,066												—
Transfers out of Level 3			(1,814)						—																		—												—
Balance, end of period			$	7,911					$	213																	$	6,341											$	83

			Nine Months Ended September 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																	$	872											$	—
Acquisitions from business combination			4,288						—																		—												—
Fair value changes in net income			189						122																		858												278
Fair value changes in other comprehensive income			121						—																		—												—
Purchases			5,042						111																		—												—
Sales			(4,083)						(67)																		—												—
Settlements or maturities			(2)						(128)																		(30)												—
Premiums less benefits			—						—																		71												—
Transfers into Level 3			177						—																		—												—
Transfers out of Level 3			(342)						—																		—												—
Balance, end of period			$	10,975					$	265																	$	1,771											$	278

(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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