Debt

12 Months Ended

Dec. 31, 2025

Debt Disclosure [Abstract]

DEBT

Short-term and Long-term Debt

We report both short-term and long-term debt at amortized cost, with the exception of certain instruments for which we elected the fair value option. Deferred items, including premiums, discounts, issuance costs, and hedge accounting-related basis adjustments, are reported as a component of the amortized cost basis. These items are amortized and reported through interest expense using the effective interest method over the contractual life of the related indebtedness. Amortization of premiums, discounts, and issuance costs begins at the time of debt issuance. Amortization of hedge accounting-related basis adjustments begins upon the discontinuation of the related hedge relationship.

We elected the fair value option on long-term debt that contains embedded derivatives. Changes in the fair value of these debt obligations are recorded in investment gains, net, with any upfront costs and fees incurred or received in exchange for the issuance of the debt being recognized in earnings as incurred and not deferred. Related interest expense continues to be reported as interest expense based on the stated terms of the debt securities. For additional information on our election of the fair value option, see Note 16.

When we repurchase or call outstanding debt securities, we recognize the difference between the amount paid to redeem the debt security and the carrying value in earnings as a component of investment gains, net. Contemporaneous transfers of cash between us and a creditor in connection with the issuance of a new debt security and satisfaction of an existing debt security are accounted for as either an extinguishment or a modification of an existing debt security. If the debt securities have substantially different terms, the transaction is accounted for as an extinguishment of the existing debt security. The issuance of a new debt security is recorded at fair value, fees paid to the creditor are expensed as incurred, and fees paid to third parties are deferred and amortized into interest expense over the life of the new debt security using the effective interest method. If the terms of the existing debt security and the new debt security are not substantially different, the transaction is accounted for as a modification of the existing debt. Fees paid to the creditor are deferred and amortized into interest expense over the life of the modified debt security using the effective interest method and fees paid to third parties are expensed as incurred.

We also engage in transactions whereby we enter into an agreement to sell and subsequently repurchase (or purchase and subsequently resell) agency securities. When these transactions involve securities issued by consolidated entities, they are treated as issuances and extinguishments of debt.

The Purchase Agreement limits the par value of our aggregate indebtedness, which may restrict the amount of debt we are allowed to issue to fund our operations. See Note 2 for information regarding restrictions on the amount of our indebtedness under the Purchase Agreement.

Short-term Debt

The table below summarizes the balances and effective interest rates for our short-term debt (debt with original maturities of one year or less).

Table 8.1 - Short-term Debt(1)

	Year Ended December 31,
(Dollars in millions)	2025		2024
Par value	$37,867		$14,716
Carrying amount	37,718		14,675
Weighted average effective rate	3.82	%	4.59	%

(1)Includes $3.0 billion of callable debt as of December 31, 2025. There was no callable debt as of December 31, 2024.

Long-term Debt

The table below summarizes our long-term debt (debt with original maturities of more than one year).

Table 8.2 - Long-term Debt

	December 31, 2025					December 31, 2024
(Dollars in millions)	Contractual Maturity	Par Value	Carrying Amount(1)	Weighted  Average Effective Rate(2)		Contractual Maturity	Par Value	Carrying Amount(1)	Weighted  Average Effective Rate(2)
Fixed-rate(3)	2026 - 2054	$92,236	$90,104	3.62	%	2025 - 2054	$130,965	$126,815	3.09	%
Variable-rate(4)	2026 - 2035	76,008	75,991	4.74		2025 - 2034	35,906	35,893	5.16
Zero-coupon	2026 - 2039	3,904	2,610	4.73		2025 - 2039	4,748	3,254	6.22
Other(5)	2028 - 2053	546	591	8.95		2025 - 2053	1,324	1,371	10.90
Total long-term debt		$172,694	$169,296	4.15			$172,943	$167,333	3.65

(1)Represents par value, net of associated discounts or premiums and issuance costs. Includes $0.2 billion and $0.3 billion at December 31, 2025 and December 31, 2024, respectively, of long-term debt that represents the fair value of debt for which the fair value option was elected. Includes hedge-related basis adjustments.

(2)Based on carrying amount. Excludes hedge-related basis adjustments.

(3)Includes $84.4 billion and $112.6 billion of callable debt as of December 31, 2025 and December 31, 2024, respectively.

(4)Includes $0.7 billion and $1.3 billion of callable debt as of December 31, 2025 and December 31, 2024, respectively.

(5)Includes STACR debt notes, SCR debt notes, and IO debt.

A portion of our long-term debt is callable. Callable debt gives us the option to redeem the debt security at par on one or more specified call dates or at any time on or after a specified call date.

The table below summarizes contractual maturities of long-term debt securities at December 31, 2025.

Table 8.3 - Contractual Maturities of Long-term Debt(1)

(In millions)	Par Value
2026	$45,515
2027	43,860
2028	22,474
2029	9,806
2030	33,871
Thereafter	16,622
Total	$172,148

(1)Excludes $0.5 billion of STACR debt notes and SCR debt notes. Contractual maturities of these debt securities are not presented because they are subject to prepayment risk, as their payments are based upon the performance of a pool of mortgage assets that may be prepaid by the related mortgage borrowers at any time generally without penalty.