INSURANCE CONTRACTS (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of liabilities under insurance contracts

The following table shows the reconciliation from the opening to the closing balances of the insurance liabilities related to the partnership’s insurance contracts from its residential mortgage insurer, reported by measurement components.


(US$ MILLIONS)	Estimates of present value of future cash flows		Risk adjustment		Contractual service margin		Total
Insurance liabilities, as at January 1, 2025	$	381	$	446	$	998	$	1,825

Change during period:
Changes that relate to current service:
Contractual service margin recognized for services provided	—		—		(404)		(404)
Change in risk adjustment recognized for the risk expired	—		(67)		—		(67)
Experience adjustments	(9)		—		—		(9)
Changes that relate to future service:
Contracts initially recognized in the period	(488)		165		323		—
Changes in estimates that adjust the contractual service margin	(29)		(38)		67		—

Changes that relate to past services:
Adjustments to liabilities for incurred claims	(11)		—		—		(11)
Insurance finance (income)/expenses	28		31		43		102
Foreign currency translation	19		22		48		89

	(490)		113		77		(300)
Cash flows:
Premiums received	703		—		—		703
Claims and other insurance service expenses paid	(41)		—		—		(41)
Insurance acquisition cash flows	(75)		—		—		(75)

Insurance liabilities, as at December 31, 2025	$	478	$	559	$	1,075	$	2,112


(US$ MILLIONS)	Estimates of present value of future cash flows		Risk adjustment		Contractual service margin		Total
Insurance liabilities as at January 1, 2024	$	385	$	479	$	1,070	$	1,934

Change during period:
Changes that relate to current service:
Contractual service margin recognized for services provided	—		—		(426)		(426)
Change in risk adjustment recognized for the risk expired	—		(68)		—		(68)
Experience adjustments	(6)		—		—		(6)
Changes that relate to future service:
Contracts initially recognized in the period	(388)		135		253		—
Changes in estimates that adjust the contractual service margin	(52)		(96)		148		—

Changes that relate to past services:
Adjustments to liabilities for incurred claims	(13)		—		—		(13)
Insurance finance (income)/expenses	29		34		36		99
Foreign currency translation	(32)		(38)		(83)		(153)

	(462)		(33)		(72)		(567)

Cash flows:
Premiums received	565		—		—		565
Claims and other insurance service expenses paid	(41)		—		—		(41)
Insurance contract acquisition cash flows	(66)		—		—		(66)

Insurance liabilities, as at December 31, 2024	$	381	$	446	$	998	$	1,825