Derivatives

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

11. Derivatives

Accounting for Derivatives

See Note 1 of the Notes to the Consolidated Financial Statements included in the 2024 Annual Report for a description of the Company’s accounting policies for derivatives and Note 12 for information about the fair value hierarchy for derivatives.

Derivative Strategies

Types of Derivative Instruments and Derivative Strategies

The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Commonly used derivative instruments include, but are not limited to:    

•Interest rate derivatives: swaps, total return swaps, caps, floors, futures, swaptions, forwards and synthetic GICs;

•Foreign currency exchange rate derivatives: swaps, forwards, options and exchange-traded futures;

•Credit derivatives: purchased or written single name or index credit default swaps, and forwards; and

•Equity derivatives: index options, variance swaps, exchange-traded futures and total return swaps.        

For detailed information on these contracts and the related strategies, see Note 12 of the Notes to the Consolidated Financial Statements included in the 2024 Annual Report.

Primary Risks Managed by Derivatives

The following table presents the primary underlying risk exposure, gross notional amount and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at:

		June 30, 2025						December 31, 2024
	Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
				Assets		Liabilities				Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments:
Fair value hedges:
Interest rate swaps	Interest rate	$	5,108	$	1,006	$	651	$	5,188	$	1,018	$	666
Foreign currency swaps	Foreign currency exchange rate	1,044		30		8		1,454		33		67
Foreign currency forwards	Foreign currency exchange rate	150		—		36		150		—		41
Subtotal		6,302		1,036		695		6,792		1,051		774
Cash flow hedges:
Interest rate swaps	Interest rate	4,164		14		299		4,154		—		359
Interest rate forwards	Interest rate	4,796		57		1,114		4,901		56		880
Foreign currency swaps	Foreign currency exchange rate	46,804		2,442		2,066		45,879		2,858		1,877
Subtotal		55,764		2,513		3,479		54,934		2,914		3,116
Net investment in a foreign operation (“NIFO”) hedges:
Foreign currency forwards	Foreign currency exchange rate	1,236		2		44		1,553		42		—
Currency options	Foreign currency exchange rate	3,100		443		—		3,000		536		—
Subtotal		4,336		445		44		4,553		578		—
Total qualifying hedges		66,402		3,994		4,218		66,279		4,543		3,890
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate swaps	Interest rate	26,669		1,454		1,304		29,238		1,414		1,263
Interest rate floors	Interest rate	5,640		60		—		6,169		38		—
Interest rate caps	Interest rate	16,648		56		2		17,998		133		1
Interest rate futures	Interest rate	2,195		13		1		1,667		1		1
Interest rate options	Interest rate	32,573		196		132		34,939		210		217
Interest rate forwards	Interest rate	3,221		146		109		3,128		135		77
Synthetic GICs	Interest rate	53,740		—		—		49,599		—		—
Foreign currency swaps	Foreign currency exchange rate	11,593		937		326		10,708		1,192		190
Foreign currency forwards	Foreign currency exchange rate	14,284		73		758		13,471		47		1,277
Currency futures	Foreign currency exchange rate	315		—		—		301		1		—
Currency options	Foreign currency exchange rate	500		34		52		—		—		—
Credit default swaps — purchased	Credit	2,771		5		63		2,791		14		67
Credit default swaps — written	Credit	11,954		238		5		11,764		201		5
Equity futures	Equity market	1,691		1		20		1,840		9		6
Equity index options	Equity market	11,717		270		320		12,743		233		253
Equity variance swaps	Equity market	121		—		3		114		—		3
Equity total return swaps	Equity market	1,799		—		230		1,799		41		9
Longevity swaps	Longevity	1,000		—		—		1,000		—		—
Total non-designated or nonqualifying derivatives		198,431		3,483		3,325		199,269		3,669		3,369
Total		$	264,833	$	7,477	$	7,543	$	265,548	$	8,212	$	7,259

Included in the table above, the Company uses various over-the-counter (“OTC”) and exchange traded derivatives to hedge variable annuity guarantees. The table below presents the gross notional amount, estimated fair value and primary underlying risk exposure of the derivatives hedging variable annuity guarantees accounted for as MRBs:

	June 30, 2025						December 31, 2024
Primary Underlying Risk Exposure	Gross Notional Amount		Estimated Fair Value				Gross Notional Amount		Estimated Fair Value
			Assets		Liabilities				Assets		Liabilities
	(In millions)
Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate	$	9,148	$	7	$	712	$	8,913	$	11	$	768
Foreign currency exchange rate	576		2		17		378		—		2
Equity market	4,035		101		330		4,294		132		113
	$	13,759	$	110	$	1,059	$	13,585	$	143	$	883

The change in estimated fair values and earned income of derivatives hedging variable annuity guarantees, recorded in net derivative gains (losses), was ($130) million and ($385) million for the six months ended June 30, 2025 and 2024, respectively.

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at either June 30, 2025 or December 31, 2024. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules, (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship, (iii) derivatives that economically hedge MRBs that do not qualify for hedge accounting because the changes in estimated fair value of the MRBs are already recorded in net income, and (iv) written credit default swaps and interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged.

The Effects of Derivatives on the Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

The following table presents the interim condensed consolidated financial statement location and amount of gain (loss) recognized on fair value, cash flow, NIFO, nonqualifying hedging relationships and embedded derivatives:

	Three Months Ended June 30, 2025
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to PABs		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	—	$	—	N/A		$	2	$	11	$	—	N/A
Hedged items	—		—		N/A		(8)		(12)		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	(18)		5		N/A		—		87		—		N/A
Hedged items	17		(4)		N/A		—		(87)		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		(1)		N/A		—		—		—		N/A
Subtotal	(1)		—		N/A		(6)		(1)		—		N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	(235)
Amount of gains (losses) reclassified from AOCI into income	6		9		—		—		—		—		(15)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		(801)
Amount of gains (losses) reclassified from AOCI into income	1		1,086		—		—		—		—		(1,087)
Foreign currency transaction gains (losses) on hedged items	—		(1,091)		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		—
Amount of gains (losses) reclassified from AOCI into income	—		—		—		—		—		—		—
Subtotal	7		4		—		—		—		—		(2,138)
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		—		N/A		N/A		N/A		N/A		(71)
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		(9)
Subtotal	N/A		—		N/A		N/A		N/A		N/A		(80)
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	—		N/A		(272)		N/A		N/A		N/A		N/A
Foreign currency exchange rate derivatives (1)	—		N/A		(317)		N/A		N/A		N/A		N/A
Credit derivatives — purchased (1)	—		N/A		(6)		N/A		N/A		N/A		N/A
Credit derivatives — written (1)	—		N/A		38		N/A		N/A		N/A		N/A
Equity derivatives (1)	(28)		N/A		(441)		N/A		N/A		N/A		N/A
Foreign currency transaction gains (losses) on hedged items	—		N/A		99		N/A		N/A		N/A		N/A
Subtotal	(28)		N/A		(899)		N/A		N/A		N/A		N/A
Earned income on derivatives	(9)		—		106		2		(34)		—		—
Synthetic GICs	N/A		N/A		21		N/A		N/A		N/A		N/A
Embedded derivatives - ceded reinsurance	N/A		N/A		(22)		N/A		N/A		N/A		N/A
Embedded derivatives - other	N/A		N/A		(2)		N/A		N/A		N/A		N/A
Total	$	(31)	$	4	$	(796)	$	(4)	$	(35)	$	—	$	(2,218)

	Three Months Ended June 30, 2024
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to PABs		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	—	$	—	N/A		$	(41)	$	(15)	$	—	N/A
Hedged items	—		—		N/A		34		13		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	(2)		(26)		N/A		—		(7)		—		N/A
Hedged items	2		19		N/A		—		7		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		—		N/A		—		—		—		N/A
Subtotal	—		(7)		N/A		(7)		(2)		—		N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	(264)
Amount of gains (losses) reclassified from AOCI into income	5		(3)		—		—		—		—		(2)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		104
Amount of gains (losses) reclassified from AOCI into income	2		(8)		—		—		—		—		6
Foreign currency transaction gains (losses) on hedged items	—		(2)		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		—
Amount of gains (losses) reclassified from AOCI into income	—		1		—		—		—		—		(1)
Subtotal	7		(12)		—		—		—		—		(157)
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		—		N/A		N/A		N/A		N/A		184
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		17
Subtotal	N/A		—		N/A		N/A		N/A		N/A		201
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	—		N/A		(218)		N/A		N/A		N/A		N/A
Foreign currency exchange rate derivatives (1)	—		N/A		(564)		N/A		N/A		N/A		N/A
Credit derivatives — purchased (1)	—		N/A		9		N/A		N/A		N/A		N/A
Credit derivatives — written (1)	—		N/A		(12)		N/A		N/A		N/A		N/A
Equity derivatives (1)	(11)		N/A		(108)		N/A		N/A		N/A		N/A
Foreign currency transaction gains (losses) on hedged items	—		N/A		178		N/A		N/A		N/A		N/A
Subtotal	(11)		N/A		(715)		N/A		N/A		N/A		N/A
Earned income on derivatives	53		—		180		(2)		(44)		—		—
Synthetic GICs	N/A		N/A		19		N/A		N/A		N/A		N/A
Embedded derivatives	N/A		N/A		8		N/A		N/A		N/A		N/A
Total	$	49	$	(19)	$	(508)	$	(9)	$	(46)	$	—	$	44

	Six Months Ended June 30, 2025
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to PABs		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	(1)	$	—	N/A		$	77	$	53	$	—	N/A
Hedged items	1		—		N/A		(87)		(52)		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	(28)		13		N/A		—		123		—		N/A
Hedged items	27		(10)		N/A		—		(123)		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		(4)		N/A		—		—		—		N/A
Subtotal	(1)		(1)		N/A		(10)		1		—		N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	(122)
Amount of gains (losses) reclassified from AOCI into income	23		9		—		—		—		—		(32)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		(680)
Amount of gains (losses) reclassified from AOCI into income	3		1,446		—		—		—		—		(1,449)
Foreign currency transaction gains (losses) on hedged items	—		(1,449)		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		—
Amount of gains (losses) reclassified from AOCI into income	—		—		—		—		—		—		—
Subtotal	26		6		—		—		—		—		(2,283)
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		—		N/A		N/A		N/A		N/A		(143)
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		(23)
Subtotal	N/A		—		N/A		N/A		N/A		N/A		(166)
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	—		N/A		(174)		N/A		N/A		N/A		N/A
Foreign currency exchange rate derivatives (1)	—		N/A		(72)		N/A		N/A		N/A		N/A
Credit derivatives — purchased (1)	—		N/A		(15)		N/A		N/A		N/A		N/A
Credit derivatives — written (1)	—		N/A		11		N/A		N/A		N/A		N/A
Equity derivatives (1)	(11)		N/A		(382)		N/A		N/A		N/A		N/A
Foreign currency transaction gains (losses) on hedged items	—		N/A		68		N/A		N/A		N/A		N/A
Subtotal	(11)		N/A		(564)		N/A		N/A		N/A		N/A
Earned income on derivatives	86		—		216		4		(74)		—		—
Synthetic GICs	N/A		N/A		40		N/A		N/A		N/A		N/A
Embedded derivatives - ceded reinsurance	N/A		N/A		(57)		N/A		N/A		N/A		N/A
Embedded derivatives - other	N/A		N/A		1		N/A		N/A		N/A		N/A
Total	$	100	$	5	$	(364)	$	(6)	$	(73)	$	—	$	(2,449)

	Six Months Ended June 30, 2024
	Net Investment Income		Net Investment Gains (Losses)		Net Derivative Gains (Losses)		Policyholder Benefits and Claims		Interest Credited to PABs		Other Expenses		OCI
	(In millions)
Gain (Loss) on Fair Value Hedges:
Interest rate derivatives:
Derivatives designated as hedging instruments (1)	$	—	$	—	N/A		$	(150)	$	(58)	$	—	N/A
Hedged items	—		—		N/A		137		55		—		N/A
Foreign currency exchange rate derivatives:
Derivatives designated as hedging instruments (1)	2		(57)		N/A		—		(31)		—		N/A
Hedged items	—		42		N/A		—		35		—		N/A
Amount excluded from the assessment of hedge effectiveness	—		4		N/A		—		—		—		N/A
Subtotal	2		(11)		N/A		(13)		1		—		N/A
Gain (Loss) on Cash Flow Hedges:
Interest rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		$	(482)
Amount of gains (losses) reclassified from AOCI into income	13		(1)		—		—		—		—		(12)
Foreign currency exchange rate derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		(19)
Amount of gains (losses) reclassified from AOCI into income	3		(376)		—		—		—		—		373
Foreign currency transaction gains (losses) on hedged items	—		349		—		—		—		—		—
Credit derivatives: (1)
Amount of gains (losses) deferred in AOCI	N/A		N/A		N/A		N/A		N/A		N/A		—
Amount of gains (losses) reclassified from AOCI into income	—		1		—		—		—		—		(1)
Subtotal	16		(27)		—		—		—		—		(141)
Gain (Loss) on NIFO Hedges:
Foreign currency exchange rate derivatives (1)	N/A		—		N/A		N/A		N/A		N/A		344
Non-derivative hedging instruments	N/A		N/A		N/A		N/A		N/A		N/A		37
Subtotal	N/A		—		N/A		N/A		N/A		N/A		381
Gain (Loss) on Derivatives Not Designated or Not Qualifying as Hedging Instruments:
Interest rate derivatives (1)	—		N/A		(571)		N/A		N/A		N/A		N/A
Foreign currency exchange rate derivatives (1)	—		N/A		(1,270)		N/A		N/A		N/A		N/A
Credit derivatives — purchased (1)	—		N/A		2		N/A		N/A		N/A		N/A
Credit derivatives — written (1)	—		N/A		22		N/A		N/A		N/A		N/A
Equity derivatives (1)	(36)		N/A		(450)		N/A		N/A		N/A		N/A
Foreign currency transaction gains (losses) on hedged items	—		N/A		341		N/A		N/A		N/A		N/A
Subtotal	(36)		N/A		(1,926)		N/A		N/A		N/A		N/A
Earned income on derivatives	83		—		361		(6)		(93)		—		—
Synthetic GICs	N/A		N/A		38		N/A		N/A		N/A		N/A
Embedded derivatives	N/A		N/A		40		N/A		N/A		N/A		N/A
Total	$	65	$	(38)	$	(1,487)	$	(19)	$	(92)	$	—	$	240

__________________

(1)Excludes earned income on derivatives.

Fair Value Hedges

The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities, (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities, and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currency denominated investments.

The following table presents the balance sheet classification, carrying amount and cumulative fair value hedging adjustments for items designated and qualifying as hedged items in fair value hedges:

Balance Sheet Line Item	Carrying Amount  of the Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets/(Liabilities) (1)
	June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024
	(In millions)
Fixed maturity securities AFS	$	239	$	241	$	—	$	—
Mortgage loans	$	126	$	130	$	—	$	(1)
FPBs	$	(2,566)	$	(2,583)	$	282	$	359
PABs	$	(2,528)	$	(2,170)	$	(17)	$	223

__________________

(1)Includes ($79) million and ($91) million of hedging adjustments on discontinued hedging relationships at June 30, 2025 and December 31, 2024, respectively.

For the Company’s foreign currency forwards, the change in the estimated fair value of the derivative related to the changes in the difference between the spot price and the forward price is excluded from the assessment of hedge effectiveness. The Company has elected to record changes in estimated fair value of excluded components in earnings. For all other derivatives, all components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

Cash Flow Hedges

The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities, (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities, (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments, and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments.

In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCI into income. These amounts were $2 million and $14 million for the three months and six months ended June 30, 2025, respectively, and $4 million and ($6) million for the three months and six months ended June 30, 2024, respectively.

At both June 30, 2025 and December 31, 2024, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed four years.

At June 30, 2025 and December 31, 2024, the balance in AOCI associated with cash flow hedges was ($1.9) billion and $357 million, respectively.

All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

At June 30, 2025, the Company expected to reclassify ($166) million of deferred net gains (losses) on derivatives in AOCI to earnings within the next 12 months.

NIFO Hedges

The Company uses foreign currency exchange rate derivatives, which may include foreign currency forwards and currency options, to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. The Company also designates a portion of its foreign-denominated debt as a non-derivative hedging instrument of its net investments in foreign operations. The Company assesses hedge effectiveness of its derivatives based upon the change in forward rates and assesses its non-derivative hedging instruments based upon the change in spot rates. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

When net investments in foreign operations are sold or substantially liquidated, the amounts in AOCI are reclassified to the statement of operations.

At June 30, 2025 and December 31, 2024, the cumulative foreign currency translation gain (loss) recorded in AOCI related to NIFO hedges was $941 million and $1.1 billion, respectively. At June 30, 2025 and December 31, 2024, the carrying amount of debt designated as a non-derivative hedging instrument was $290 million and $267 million, respectively.

Credit Derivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the effects of derivatives on the interim condensed consolidated statements of operations and comprehensive income (loss) table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current estimated fair value of the credit default swaps.

The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at:

	June 30, 2025					December 31, 2024
Rating Agency Designation of Referenced Credit Obligations (1)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
	(Dollars in millions)
Aaa/Aa/A
Single name credit default swaps (3)	$	1	$	72	1.6	$	1	$	72	1.9
Credit default swaps referencing indices	63		4,046		1.8	72		4,126		2.2
Subtotal	64		4,118		1.8	73		4,198		2.2
Baa
Single name credit default swaps (3)	1		42		4.1	1		102		1.6
Credit default swaps referencing indices	146		7,428		5.0	111		7,263		4.1
Subtotal	147		7,470		5.0	112		7,365		4.1
Ba
Single name credit default swaps (3)	—		3		5.0	—		17		1.1
Credit default swaps referencing indices	1		25		1.5	2		25		2.0
Subtotal	1		28		1.9	2		42		1.6
B
Single name credit default swaps (3)	—		19		1.0	—		—		0.0
Credit default swaps referencing indices	22		304		4.1	10		144		3.7
Subtotal	22		323		3.9	10		144		3.7
Caa
Credit default swaps referencing indices	(1)		15		1.5	(1)		15		2.0
Subtotal	(1)		15		1.5	(1)		15		2.0
Total	$	233	$	11,954	3.8	$	196	$	11,764	3.4

_________________

(1)The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service, Inc. (“Moody’s”), Standard & Poor’s Global Ratings (“S&P”) and Fitch Ratings Inc. If no rating is available from a rating agency, then an internally developed rating is used.

(2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

(3)Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or municipals.

Credit Risk on Freestanding Derivatives

The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements.

The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties in jurisdictions in which it understands that close-out netting should be enforceable and establishing and monitoring exposure limits. The Company’s bilateral contracts between two counterparties (“OTC-bilateral”) derivative transactions are governed by International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, close-out netting permits the Company (subject to financial regulations such as the Orderly Liquidation Authority under Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act) to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions and to apply collateral to the obligations, without application of the automatic stay, upon the counterparty’s bankruptcy. All of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives as required by applicable law. Additionally, the Company is required to pledge initial margin for certain new OTC-bilateral derivative transactions to third-party custodians.

The Company’s over-the-counter cleared (“OTC-cleared”) derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by brokers and central clearinghouses to such derivatives.

See Note 12 for a description of the impact of credit risk on the valuation of derivatives.

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at:

	June 30, 2025				December 31, 2024
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement	Assets		Liabilities		Assets		Liabilities
	(In millions)
Gross estimated fair value of derivatives:
OTC-bilateral (1)	$	7,351	$	7,141	$	8,224	$	6,966
OTC-cleared (1)	196		414		135		299
Exchange-traded	14		21		11		7
Total gross estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1)	7,561		7,576		8,370		7,272
Gross amounts not offset on the interim condensed consolidated balance sheets:
Gross estimated fair value of derivatives: (2)
OTC-bilateral	(3,281)		(3,281)		(3,633)		(3,633)
OTC-cleared	(6)		(6)		(5)		(5)
Exchange-traded	(3)		(3)		(1)		(1)
Cash collateral: (3), (4)
OTC-bilateral	(1,484)		(20)		(2,597)		—
OTC-cleared	(169)		(396)		(126)		(289)
Exchange-traded	—		(14)		—		(6)
Securities collateral: (5)
OTC-bilateral	(2,544)		(3,827)		(1,955)		(3,325)
OTC-cleared	—		(11)		—		(4)
Exchange-traded	—		(4)		—		—
Net amount after application of master netting agreements and collateral	$	74	$	14	$	53	$	9

__________________

(1)At June 30, 2025 and December 31, 2024, derivative assets included income (expense) accruals reported in accrued investment income or in other liabilities of $84 million and $158 million, respectively, and derivative liabilities included (income) expense accruals reported in accrued investment income or in other liabilities of $33 million and $13 million, respectively.

(2)Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

(3)Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives, where the central clearinghouse treats variation margin as collateral, is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. For certain collateral agreements, cash collateral is pledged to the Company as initial margin on its OTC-bilateral derivatives.

(4)The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At June 30, 2025 and December 31, 2024, the Company received excess cash collateral of $49 million and $26 million, respectively, and provided excess cash collateral of $74 million and $86 million, respectively, which is not included in the table above due to the foregoing limitation.

(5)Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at June 30, 2025, none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At

June 30, 2025 and December 31, 2024, the Company received excess securities collateral with an estimated fair value of $385 million and $410 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At June 30, 2025 and December 31, 2024, the Company provided excess securities collateral with an estimated fair value of $1.5 billion and $1.2 billion, respectively, for its OTC-bilateral derivatives, $727 million and $835 million, respectively, for its OTC-cleared derivatives, and $224 million and $148 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation.

The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the collateral amount owed by that counterparty reaches a minimum transfer amount. A small number of these arrangements also contain credit-contingent provisions that include a threshold below which collateral does not need to be posted. Such agreements provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the financial strength or credit ratings of the Company and/or the counterparty (or its guarantor, as applicable). At June 30, 2025, the amount of collateral not provided by the Company due to the existence of these thresholds was $15 million.

The Company’s netting agreements for derivatives generally contain provisions that require the counterparty (or its guarantor, if applicable) to maintain specified minimum credit ratings above investment grade level from Moody’s, S&P or both. In those agreements, if the credit rating of the counterparty (or its guarantor, if applicable) were to fall below the applicable minimum rating, that counterparty would be in violation of these provisions, and the Company could terminate the transactions and demand immediate settlement and payment based on reasonable valuation of the derivatives. A significant portion of the Company’s netting agreements for derivatives grant similar rights to the counterparty to terminate the transactions and demand immediate settlement and payment if the Company’s financial strength or credit rating were to fall below specified minimum levels above investment grade.

The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged.

	June 30, 2025						December 31, 2024
	Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total		Derivatives Subject to Credit- Contingent Provisions		Derivatives Not Subject to Credit- Contingent Provisions		Total
	(In millions)
Estimated fair value of derivatives in a net liability position (1)	$	3,834	$	26	$	3,860	$	3,213	$	120	$	3,333
Estimated fair value of collateral provided:
Fixed maturity securities AFS	$	4,751	$	47	$	4,798	$	3,829	$	124	$	3,953
Cash	$	20	$	—	$	20	$	—	$	—	$	—

__________________

(1)After taking into consideration the existence of netting agreements.

Embedded Derivatives

The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives.

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at:

	Balance Sheet Location	June 30, 2025		December 31, 2024
		(In millions)
Embedded derivatives within liability host contracts:
Funds withheld on ceded reinsurance	Other liabilities	$	(105)	$	(163)
Fixed annuities with equity indexed returns	PABs	15		172
Total		$	(90)	$	9