
(In millions)	2025			2024			2023
Fixed maturity securities		$	3,017		$	2,894		$	2,873
Equity securities		20			24			28
Commercial mortgage and other loans		821			1,046			1,002
Other investments (1)		231			130			(70)
Short-term investments and cash equivalents		230			258			213
Gross investment income		4,319			4,352			4,046
Less investment expenses		243			236			235
Net investment income		$	4,076		$	4,116		$	3,811

(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $65, $165 and $343 in 2025, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $69, $164, and $334 in 2025, 2024, and 2023, respectively, have been reported as an income tax benefit in the consolidated statements of earnings. See Note 1 for additional information on these investments.

The amortized cost and allowance for credit losses for the Company's investments in fixed maturity securities and the fair values of these investments as well as the fair value of the Company's investments in equity securities are presented in the following tables.


	2025
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available-for-sale, carried at fair value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	18,063	$	0	$	41	$	3,727	$	14,377
Municipalities	856		0		5		145		716
Mortgage- and asset-backed securities	297		0		1		38		260
Public utilities	2,519		0		123		174		2,468
Sovereign and supranational	330		0		7		13		324
Banks/financial institutions	5,382		0		170		477		5,075
Other corporate	5,438		0		357		534		5,261
Total yen-denominated	32,885		0		704		5,108		28,481
U.S. dollar-denominated:
U.S. government and agencies	230		0		2		2		230
Municipalities	1,185		0		83		54		1,214
Mortgage- and asset-backed securities	3,854		0		239		35		4,058
Public utilities	4,292		0		465		107		4,650
Sovereign and supranational	57		0		21		0		78
Banks/financial institutions	3,672		0		518		21		4,169
Other corporate	18,967		0		2,740		597		21,110
Total U.S. dollar-denominated	32,257		0		4,068		816		35,509
Other currencies:
Mortgage- and asset-backed securities	44		0		4		0		48
Public utilities	52		0		4		0		56
Other corporate	25		0		2		0		27
Total other currencies	121		0		10		0		131
Total securities available-for-sale	$	65,263	$	0	$	4,782	$	5,924	$	64,121


	2024
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available-for-sale, carried at fair value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	19,409	$	0	$	465	$	2,234	$	17,640
Municipalities	869		0		65		79		855
Mortgage- and asset-backed securities	327		0		4		23		308
Public utilities	2,746		0		202		108		2,840
Sovereign and supranational	330		0		16		8		338
Banks/financial institutions	5,376		0		267		342		5,301
Other corporate	5,329		0		568		305		5,592
Total yen-denominated	34,386		0		1,587		3,099		32,874
U.S. dollar-denominated:
U.S. government and agencies	208		0		1		3		206
Municipalities	1,167		0		65		53		1,179
Mortgage- and asset-backed securities	2,987		0		302		34		3,255
Public utilities	3,938		0		418		151		4,205
Sovereign and supranational	57		0		21		0		78
Banks/financial institutions	3,271		0		420		36		3,655
Other corporate	18,050		0		2,493		752		19,791
Total U.S. dollar-denominated	29,678		0		3,720		1,029		32,369
Other currencies:
Other corporate	25		0		1		0		26
Total other currencies	25		0		1		0		26
Total securities available-for-sale	$	64,089	$	0	$	5,308	$	4,128	$	65,269


	2025
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities held-to-maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	15,461	$	2	$	15,459	$	81	$	713	$	14,827
Municipalities	235		0		235		0		6		229

Public utilities	32		0		32		0		3		29
Sovereign and supranational	381		3		378		6		9		375

Other corporate	16		0		16		0		0		16
Total yen-denominated	16,125		5		16,120		87		731		15,476
Total securities held-to-maturity	$	16,125	$	5	$	16,120	$	87	$	731	$	15,476


	2024
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities held-to-maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	15,311	$	2	$	15,309	$	759	$	9	$	16,059
Municipalities	235		0		235		22		0		257

Public utilities	32		0		32		1		0		33
Sovereign and supranational	377		3		374		31		0		405

Other corporate	16		0		16		2		0		18
Total yen-denominated	15,971		5		15,966		815		9		16,772
Total securities held-to-maturity	$	15,971	$	5	$	15,966	$	815	$	9	$	16,772


(In millions)	Amortized Cost (1)			Fair Value
Available-for-sale:
Due in one year or less		$	1,676		$	1,743
Due after one year through five years		7,704			8,618
Due after five years through 10 years		16,143			17,021
Due after 10 years		35,545			32,373
Mortgage- and asset-backed securities		4,195			4,366
Total fixed maturity securities available-for-sale		$	65,263		$	64,121
Held-to-maturity:
Due in one year or less		$	32		$	32
Due after one year through five years		1,418			1,435
Due after five years through 10 years		7,182			7,240
Due after 10 years		7,488			6,769

Total fixed maturity securities held-to-maturity		$	16,120		$	15,476

Economic maturities are used for certain fixed maturity securities with no stated maturity where the expected maturity date is based on the combination of features in the financial instrument such as the right to call or prepay obligations or changes in coupon rates.

The Company's process for investing in credit-related investments begins with an independent approach to underwriting each issuer's fundamental credit quality. The Company evaluates independently those factors that it believes could influence an issuer's ability to make payments under the contractual terms of the Company's instruments. This includes a thorough analysis of a variety of items including the issuer's country of domicile (including political, legal, and financial considerations); the industry in which the issuer competes (with an analysis of industry structure, end-market dynamics, and regulation); company specific issues (such as management, assets, earnings, cash generation, and capital needs); and contractual provisions of the instrument (such as financial covenants and position in the capital structure). The Company further evaluates the investment considering broad business and portfolio management objectives, including asset/liability needs, portfolio diversification, and expected income.


(In millions)	2025		2024		2023
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available-for-sale:
Gross gains from sales	$	149	$	80	$	24
Gross losses from sales	(579)		(634)		(61)
Foreign currency gains (losses)	436		806		204
Other investments:
Gross gains (losses) from sales and redemptions	14		7		33
Total sales and redemptions	20		259		200
Equity securities	72		140		88
Real estate owned impairments	(6)		0		0
Credit losses:

Fixed maturity securities held-to-maturity	0		0		1
Commercial mortgage and other loans	(192)		(207)		(146)
Impairment losses	0		(55)		0
Loan commitments	0		1		9
Reinsurance recoverables and other	1		5		(3)
Total credit losses	(191)		(256)		(139)
Derivatives and other:
Derivative gains (losses)	(295)		(363)		(531)
Foreign currency gains (losses)	(172)		1,491		972
Total derivatives and other	(467)		1,128		441
Total net investment gains (losses)	$	(572)	$	1,271	$	590

For the year ended December 31, 2025, the Company recognized an impairment loss of $6 million on an office-type REO property classified as held-and-used for the production of income. The impairment was based on the Company's evaluation of a material adverse change in occupancy and resulted in an estimated fair value of the REO property of $12 million. The fair value was based on expected future cash flows utilizing inputs classified as Level 3 under the fair value guidance in ASC 820.

The unrealized holding gains, net of losses, included in net investment gains and losses for the year ended December 31, 2025 that relate to equity securities held at the December 31, 2025 reporting date were $46 million. The unrealized holding gains, net of losses, included in net investment gains and losses for the year ended December 31, 2024 that relate to equity securities held at the December 31, 2024 reporting date were $118 million. The unrealized holding gains, net of losses, included in net investment gains and losses for the year ended December 31, 2023 that relate to equity securities held at the December 31, 2023 reporting date were $63 million.

The following tables present the fair values and gross unrealized losses of the Company's available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31.


	2025
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available- for-sale:
U.S. government and agencies:
U.S. dollar-denominated		$	37		$	2		$	0		$	0		$	37		$	2
Japan government and agencies:
Yen-denominated		13,521			3,727			7,966			692			5,555			3,035
Municipalities:
U.S. dollar-denominated		630			54			8			0			622			54
Yen-denominated		520			145			234			6			286			139
Mortgage- and asset- backed securities:
U.S. dollar-denominated		547			35			217			5			330			30
Yen-denominated		183			38			9			1			174			37
Public utilities:
U.S. dollar-denominated		1,055			107			169			2			886			105
Yen-denominated		838			174			0			0			838			174
Sovereign and supranational:

Yen-denominated		276			13			236			0			40			13
Banks/financial institutions:
U.S. dollar-denominated		252			21			62			0			190			21
Yen-denominated		3,467			477			495			26			2,972			451
Other corporate:
U.S. dollar-denominated		4,535			597			620			5			3,915			592
Yen-denominated		2,395			534			640			33			1,755			501
Total		$	28,256		$	5,924		$	10,656		$	770		$	17,600		$	5,154


	2024
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available- for-sale:
U.S. government and agencies:
U.S. dollar-denominated		$	106		$	3		$	59		$	1		$	47		$	2
Japan government and agencies:
Yen-denominated		8,136			2,234			2,070			57			6,066			2,177
Municipalities:
U.S. dollar-denominated		666			53			67			3			599			50
Yen-denominated		341			79			96			2			245			77
Mortgage- and asset- backed securities:
U.S. dollar-denominated		567			34			173			2			394			32
Yen-denominated		196			23			12			0			184			23
Public utilities:
U.S. dollar-denominated		1,570			151			699			19			871			132
Yen-denominated		1,020			108			368			11			652			97
Sovereign and supranational:

Yen-denominated		47			8			0			0			47			8
Banks/financial institutions:
U.S. dollar-denominated		625			36			376			7			249			29
Yen-denominated		3,197			342			471			22			2,726			320
Other corporate:
U.S. dollar-denominated		6,097			752			2,036			59			4,061			693
Yen-denominated		1,733			305			289			14			1,444			291
Total		$	24,301		$	4,128		$	6,716		$	197		$	17,585		$	3,931

The unrealized losses on the Company's available-for-sale securities have been primarily related to general market factors such as changes in interest rates, foreign exchange rates, and/or the levels of credit spreads rather than specific concerns with the issuer's ability to pay interest and repay principal.

For available-for-sale securities in an unrealized loss position, the Company performs detailed analyses to identify whether the drivers of the decline in fair value are due to general market factors, such as the recent rise in interest rates, or due to credit-related factors. Identifying the drivers of the declines in fair value helps to align and allocate the Company's resources to the review and monitoring of securities with real credit-related concerns that could impact ultimate collection of principal and interest. For any significant declines in fair value determined to be non-interest rate or market-related, the Company performs a more focused review of the related issuers' specific credit profile.

For corporate issuers, the Company evaluates their assets and business profile, including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security it owns including seniority in the issuer's capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers' continued ability to service the Company's investment through payment of interest and principal.

Assuming no credit-related factors develop and excluding any impact resulting from fluctuations in the yen/dollar exchange rate, unrealized gains and losses on available-for-sale securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its available-for-sale securities in the sectors presented in the table above have the ability to service their obligations to the Company. Further, the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

However, if the Company identifies certain available-for-sale securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit-related factors, an allowance for credit losses is recognized. Based on an evaluation of its securities currently in an unrealized loss position, the Company has determined that those securities should not have an allowance for credit losses as of December 31, 2025. Refer to the Allowance for Credit Losses Methodology section below for additional information.


	2025				2024
(In millions)	Amortized Cost		% of Total		Amortized Cost		% of Total
Commercial mortgage and other loans:
Transitional real estate loans:
Office	$	1,229	12.1	%	$	1,361	12.1	%
Retail	267		2.6		349		3.1
Apartments/Multi-Family	1,555		15.3		2,201		19.6
Industrial	75		.7		117		1.1
Hospitality	522		5.1		556		5.0
Other	240		2.4		318		2.8
Total transitional real estate loans	3,888		38.2		4,902		43.7
Commercial mortgage loans:
Office	255		2.5		300		2.7
Retail	217		2.1		214		1.9
Apartments/Multi-Family	539		5.3		572		5.1
Industrial	427		4.2		436		3.9

Other	14		.1		15		.1
Total commercial mortgage loans	1,452		14.2		1,537		13.7
Middle market loans	4,404		43.2		4,423		39.4
Other loans	447		4.4		362		3.2
Total commercial mortgage and other loans	$	10,191	100.0	%	$	11,224	100.0	%
Allowance for credit losses	(426)				(355)
Total net commercial mortgage and other loans	$	9,765			$	10,869

TREs are relatively short-term floating rate commercial mortgage loans that are secured by a first lien on the property. These loans provide funding for properties undergoing a change in their physical characteristics and/or economic profile and do not typically require any principal repayment prior to the maturity date.

CMLs are typically fixed rate loans on commercial real estate with partial repayment of principal over the life of the loan with the remaining outstanding principal being repaid upon maturity. This loan portfolio is generally considered higher quality investment grade loans.

Other loans are primarily infrastructure loans. Infrastructure loans are typically senior secured, financing operating portfolios of renewable and conventional energy generation assets characterized by predictable, often contractual cash flows for loan repayment. The infrastructure loan portfolio weighted average rating is investment grade.


	2025
(In millions)	Current		Less Than 90 Days Past Due		90 Days or More Past Due(1)		Total Past Due		Total Loans		Nonaccrual Status
Transitional real estate loans	$	3,418	$	0	$	470	$	470	$	3,888	$	545
Commercial mortgage loans	1,452		0		0		0		1,452		0
Middle market loans	4,263		58		83		141		4,404		98
Other loans	447		0		0		0		447		0
Total	$	9,580	$	58	$	553	$	611	$	10,191	$	643


	2024
(In millions)	Current		Less Than 90 Days Past Due		90 Days or More Past Due(1)		Total Past Due		Total Loans		Nonaccrual Status
Transitional real estate loans	$	4,364	$	195	$	343	$	538	$	4,902	$	378
Commercial mortgage loans	1,537		0		0		0		1,537		0
Middle market loans	4,295		63		65		128		4,423		108
Other loans	362		0		0		0		362		0
Total	$	10,558	$	258	$	408	$	666	$	11,224	$	486

For each of the years ended December 31, 2025 and 2024, the Company recognized $2 million of interest income on loans that were on nonaccrual status. For the year ended December 31, 2023, the Company recognized no interest income on loans that were on nonaccrual status. Of these loans, TREs with an amortized cost of $30 million and $140 million had no credit loss allowance as of December 31, 2025 and December 31, 2024, respectively, because these loans are collateral dependent assets for which the estimated fair values of the collateral were in excess of amortized

The Company granted certain loan modifications to borrowers experiencing financial difficulty during 2025, 2024 and 2023. The types of modifications granted may include interest rate reductions, principal forgiveness, other-than-insignificant payment delays, term extensions or a combination of these types of modifications. The amount, timing, and extent of modifications granted are considered in determining any allowance for credit loss recorded.

The following tables present the amortized cost basis of modified loans to borrowers experiencing financial difficulty and the financial effect of the modifications, disaggregated by loan classification and type of modification, for the years ended December 31.


2025
(In millions)	Amortized Cost (1)		% of Total		Financial Effect
Transitional real estate loans:


Term extension	$	159	4.4	%	Term extension of 20 months on average
Term extension and interest rate reduction	178		4.9		Term extension of 26 months on average and reduction in the weighted-average contractual interest rate from 5.2% to 4.1%




Middle market loans:

Principal forgiveness	$	15	.3	%	Reduction in the amortized cost basis of $9 million
Term extension	45		1.1		Term extension of 9 months on average
Other-than-insignificant payment delays	33		.8		Delay in principal and interest payments of 36 months on average

Principal forgiveness and term extension	35		.8		Reduction in the amortized cost basis of $40 million and term extension of 33 months on average
Principal forgiveness, term extension and interest rate reduction	13		.3		Reduction in the amortized cost basis of $5 million, term extension of 45 months on average, and reduction in the weighted-average contractual interest rate from 10.5% to 9.5%


2024
(In millions)	Amortized Cost (1)		% of Total		Financial Effect
Transitional real estate loans:




Other-than-insignificant payment delays	$	125	2.7	%	Delay in payments of 24 months on average
Other-than-insignificant payment delays and interest rate reduction	278		5.9		Delay in payments of 44 months on average and reduction in the weighted-average contractual interest rate from 8.0% to 6.6%
Other-than-insignificant payment delays, principal forgiveness and interest rate reduction	81		1.7		Delay in payments of 33 months on average, $1 million of principal forgiven, and reduction in the weighted-average contractual interest rate from 8.2% to 7.3%

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. Loans that were granted a modification in the past 12 months, as of December 31, 2025 and 2024, and subsequently defaulted in the years ended December 31, 2025 and 2024, were immaterial. There were no modified loans to borrowers experiencing financial difficulties in the past 12 months, as of December 31, 2023, that subsequently defaulted in the year ended December 31, 2023.


(In millions)	Transitional Real Estate Loans		Commercial Mortgage Loans		Middle Market Loans		Other Loans and Loan Commitments		Held-to- Maturity Securities		Available- for-Sale Securities		Total
Balance at December 31, 2022	$	(54)	$	(9)	$	(129)	$	(24)	$	(7)	$	0	$	(223)
(Addition to) release of allowance for credit losses(1)	(124)		(7)		(17)		8		1		0		(139)
Writeoffs, net of recoveries	66		0		0		0		0		0		66
Change in foreign exchange	0		0		0		0		1		0		1
Balance at December 31, 2023	(112)		(16)		(146)		(16)		(5)		0		(295)
(Addition to) release of allowance for credit losses	(148)		(17)		(44)		(1)		0		0		(210)
Writeoffs, net of recoveries	61		19		50		0		0		0		130
Change in foreign exchange	0		0		0		0		0		0		0
Balance at December 31, 2024	(199)		(14)		(140)		(17)		(5)		0		(375)
(Addition to) release of allowance for credit losses	(107)		5		(89)		0		0		0		(191)
Writeoffs, net of recoveries	29		0		91		0		0		0		120
Change in foreign exchange	0		0		0		0		0		0		0
Balance at December 31, 2025	$	(277)	$	(9)	$	(138)	$	(17)	$	(5)	$	0	$	(446)

As of December 31, 2025, the Company identified TREs with an amortized cost of $137 million in anticipation of potential foreclosure or deed in lieu of foreclosure transactions. As of December 31, 2025, the Company established an allowance for credit losses of $45 million related to these loans.

As of December 31, 2025, the Company’s held-to-maturity portfolio includes Japan Government and Agency securities with an amortized cost of $15.3 billion that meet the requirements for zero-credit-loss expectation and therefore have been excluded from the measurement of the allowance for credit losses.

For available-for-sale securities, the Company evaluates estimated credit losses only when the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors. The Company’s methodology for estimating an allowance for credit losses for available-for-sale securities utilizes the discounted cash flow model, based on past events, current market conditions and future economic conditions, as well as industry analysis and credit ratings of the securities. In addition, the Company evaluates the specific issuer’s probability of default and expected recovery of its position in the event of default based on the underlying financial condition and assets of the borrower as well as seniority and/or security of other debt holders in the issuer when developing management’s best estimate of expected cash flows.

An investment in an available-for-sale security may be impaired if the fair value falls below amortized cost. The Company regularly reviews its available-for-sale portfolio for declines in fair value. The Company's available-for-sale impairment model focuses on the ultimate collection of the cash flows from its investments and whether the Company has the intent to sell or if it is more likely than not the Company would be required to sell the security prior to recovery of its amortized cost. The determination of the amount of impairments under this model is based upon the Company's periodic evaluation and assessment of known and inherent risks associated with the respective securities. Such evaluations and assessments are revised as conditions change and new information becomes available.

When determining the Company's intention to sell a security prior to recovery of its amortized cost basis, the Company evaluates facts and circumstances such as, but not limited to, future cash flow needs, decisions to reposition its security portfolio, and risk profile of individual investment holdings. The Company performs ongoing analyses of its liquidity needs, which includes cash flow testing of its policy liabilities, debt maturities, projected dividend payments, and other cash flow and liquidity needs.

The Company calculates its allowance for credit losses for held-to-maturity securities, loan receivables and loan commitments by grouping assets with similar risk characteristics when there is not a specific expectation of a loss for an individual asset. For held-to-maturity securities, MMLs, and MML commitments, the Company groups assets by industry, country, and key credit quality indicators. The Company groups CMLs and TREs and respective loan commitments by property type, property location and key credit quality indicators. On a quarterly basis, CMLs and TREs within a portfolio segment that share similar risk characteristics are pooled for the allowance calculation. On an ongoing basis, TREs, CMLs and other loans with dissimilar risk characteristics (i.e., loans with significant declines in credit quality), such as collateral dependent mortgage loans (i.e., when the borrower is experiencing financial difficulty, including when foreclosure is probable), are evaluated individually for credit loss.

The allowance for credit losses for held-to-maturity securities and loan receivables is estimated using a probability-of-default (PD) / loss-given-default (LGD) method, discounted for the time value of money. For held-to-maturity securities, available-for-sale securities, and loan receivables, the Company includes the change in present value due to the passage of time in the change in the allowance for credit losses. The Company’s methodology for estimating credit losses utilizes the contractual maturity date of the financial asset, adjusted when necessary to reflect the expected timing of repayment (such as prepayment options, renewal options, call options, or extension options). The Company applies reasonable and supportable forecasts of macroeconomic variables that impact the determination of PD / LGD over a two-year period for held-to-maturity securities and MMLs. The Company reverts to historical loss information over one year, following the two-year forecast period.

For the CML and TRE portfolio, the Company applies reasonable and supportable forecasts of macroeconomic variables as well as national and local real-estate market factors to estimate future credit losses where the market factors revert back to historical levels over time with the period being dependent on current market conditions, projected market conditions and difference in the current and historical market levels for each factor.

•For held-to-maturity securities and MMLs, the Company’s key credit quality indicator is credit ratings. The Company’s held-to-maturity portfolio is composed of investment grade securities that are senior unsecured instruments, while its MMLs generally have below-investment-grade ratings but are typically senior secured instruments. The Company monitors the credit ratings periodically, but not less frequently than quarterly.

•For TREs, the Company’s key credit quality indicators include performance of the loan and loan-to-value (LTV), which is calculated by dividing the current outstanding loan balance by the estimated property value, primarily using values at origination. Given that TREs involve properties undergoing a repositioning of their commercial profile, LTV provides the most insight into the credit risk of the loan. The Company monitors the performance of the loans periodically, but not less frequently than quarterly. The monitoring process also focuses on higher risk loans, which include those that are delinquent or for which foreclosure or deed in lieu of foreclosure is anticipated.


Transitional Real Estate Loans
(In millions)	2025		2024		2023		2022		2021		Prior		Total
Loan-to-Value Ratio:
0%-59.99%	$	0	$	0	$	0	$	319	$	344	$	10	$	673
60%-69.99%	0		0		27		397		423		403		1,250
70%-79.99%	0		0		14		678		512		24		1,228
80% or greater	0		0		0		155		252		330		737
Total	$	0	$	0	$	41	$	1,549	$	1,531	$	767	$	3,888
Current-period gross writeoffs:	$	0	$	0	$	0	$	5	$	0	$	24	$	29


Commercial Mortgage Loans
(In millions)	2025		2024		2023		2022		2021		Prior		Total		Weighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%	$	11	$	0	$	32	$	0	$	244	$	944	$	1,231	2.74
60%-69.99%	20		0		0		0		25		55		100		2.11
70%-79.99%	0		0		0		0		0		8		8		1.50
80% or greater	0		12		0		0		0		101		113		1.16
Total	$	31	$	12	$	32	$	0	$	269	$	1,108	$	1,452	2.56
Weighted Average DSCR	1.80		1.10		2.55		0.00		3.01		2.49
Current-period gross writeoffs:	$	0	$	0	$	0	$	0	$	0	$	0	$	0


Middle Market Loans
(In millions)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
Credit Ratings:
BBB	$	31	$	52	$	36	$	0	$	57	$	106	$	15	$	297
BB	452		473		40		331		285		552		72		2,205
B	194		149		46		284		388		360		39		1,460
CCC	22		3		0		9		59		196		16		305
CC	5		2		0		9		16		17		5		54
C and lower	0		0		0		0		16		62		5		83
Total	$	704	$	679	$	122	$	633	$	821	$	1,293	$	152	$	4,404
Current-period gross writeoffs:	$	0	$	0	$	0	$	7	$	29	$	55	$	0	$	91


Other Loans
(In millions)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
Credit Ratings:
A	$	0	$	0	$	0	$	67	$	0	$	0	$	0	$	67
AA	0		0		0		8		3		0		0		11
BBB	33		244		66		26		0		0		0		369





Total	$	33	$	244	$	66	$	101	$	3	$	0	$	0	$	447
Current-period gross writeoffs:	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

As of December 31, 2025 and 2024, all REO was classified as held-and-used for the production of income. Depreciation expense on REO was $29 million, $13 million, and an immaterial amount for the years ended December 31, 2025, 2024, and 2023, respectively. Additionally, as of December 31, 2025 and 2024, accumulated depreciation on REO was $41 million and $14 million, respectively.

The Company had $3.0 billion and $2.8 billion in outstanding commitments to fund investments in limited partnerships, which included $2.1 billion and $2.1 billion of unfunded commitments related to VIEs that are non-consolidated as of December 31, 2025 and 2024, respectively.

In the normal course of its activities, the Company invests in legal entities that are VIEs. The Company's variable interests in VIEs are limited to the debt and equity instruments issued by them. With the exception of commitments to limited partnerships and to certain loan investments made in the normal course of business, the Company has not provided any direct or contingent obligations to fund the limited activities of these VIEs, or support related to the limited activities of these VIEs, and does not have any intention to do so in the future, nor has it provided any direct or indirect financial guarantees.

If the Company determines that it is the VIE’s primary beneficiary, it consolidates the VIE. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company except to the extent of the unfunded commitments referenced above, as the Company’s obligation to each VIE is limited to the amount of its committed investment.


(In millions)	2025			2024
Assets:
Fixed maturity securities available-for-sale		$	3,636		$	3,428
Commercial mortgage and other loans		7,896			8,693
Other investments (1)		2,320			2,176
Other assets (2)		45			53
Total assets of consolidated VIEs		$	13,897		$	14,350
Liabilities:
Other liabilities (2)		$	765		$	604
Total liabilities of consolidated VIEs		$	765		$	604

The Company is the sole investor in the consolidated VIEs listed in the table above. The Company invests in fixed maturity securities issued by VIEs that in turn hold U.S. dollar-denominated fixed maturity securities coupled with foreign currency swap agreements. The weighted-average lives of the Company's investments in these VIEs are very similar to the underlying collateral held by these VIEs. The activities of these VIEs are limited to holding invested assets and foreign currency swaps and utilizing the cash flows from these securities to service the VIEs' debt. Neither the Company nor any of its creditors are able to obtain the underlying collateral of these VIEs unless there is an event of default or other specified event. The Company is not a direct counterparty to the foreign currency swap contracts and has no control over them. The Company's loss exposure to these VIEs is limited to its original investment. These consolidated VIEs do not rely on outside or ongoing sources of funding to support their activities beyond the underlying collateral and foreign currency swap contracts, if applicable. The underlying collateral assets and funding of these consolidated VIEs are generally static in nature.

The Company also utilizes unit trust structures in Aflac Japan to invest in various asset classes, which include CMLs, MMLs, TREs, other loans and limited partnerships. As the sole investor of these VIEs, the Company is required to consolidate these trusts. The limited partnership investments are comprised of private equity and real estate. The Company's loss exposure to these VIEs is limited to its original investments, together with any unfunded portion of the Company's commitments made in the normal course of business to fund certain loan investments and limited partnership investments, as described in the Commercial Mortgage and Other Loans and Other Investments sections of this note. Excluding these commitments, the Company does not provide financial or other support to consolidated VIEs.

Certain investments in VIEs that the Company is not required to consolidate are investments that are in the form of debt obligations issued by the VIEs. These fixed maturity securities include structured securities, primarily asset-backed securities. The Company's involvement in the related VIEs is limited to that of a passive investor in asset-backed securities issued by the VIEs. The Company also invests in fixed maturity securities issued by VIEs that are the primary financing vehicles used by their corporate sponsors to raise financing in the capital markets. The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them. The Company does not have the power to direct the activities that most significantly impact the entity's economic performance, nor does it have the obligation to absorb losses of the VIE entity or the right to receive benefits from the entity that could be significant to the entity. As such, the Company is not the primary beneficiary of these VIEs and therefore is not required to consolidate them.

The Company also holds equity investments in limited partnerships that have been determined to be VIEs. These partnerships primarily invest in private equity and real estate funds. The Company’s maximum exposure to loss on these investments is limited to the amount of its investment and any unfunded commitments. As described in the Other Investments section of this note, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to unconsolidated VIEs. The Company is not the primary beneficiary of these VIEs and is therefore not required to consolidate them. The Company classifies these investments as other investments in the consolidated balance sheets.


Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
	2025								2024
(In millions)	Overnight and Continuous(1)		Up to 30 days		30-90 days		Total		Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Fixed maturity securities:
Japan government and agencies	$	0	$	1,591	$	1,329	$	2,920	$	0	$	1,027	$	1,027

Public utilities	54		0		0		54		34		0		34

Banks/financial institutions	150		0		0		150		193		0		193
Other corporate	865		0		0		865		783		0		783
Total borrowings	$	1,069	$	1,591	$	1,329	$	3,989	$	1,010	$	1,027	$	2,037
Gross amount of recognized liabilities for securities lending transactions							$	3,989					$	2,037

In connection with securities lending, in addition to cash collateral received, the Company received from counterparties securities collateral of $2.2 billion and $3.0 billion at December 31, 2025, and 2024, respectively, which may not be sold or re-pledged, unless the counterparty is in default. Such securities collateral is not reflected in the consolidated balance sheets.

Certain fixed maturity securities can be pledged as collateral as part of derivative transactions, or pledged to support state deposit requirements on certain investment programs. For additional information regarding pledged securities related to derivative transactions, see Note 4.

At December 31, 2025, fixed maturity securities with a fair value of $20 million were on deposit with regulatory authorities in the U.S. (including U.S. territories). The Company retains ownership of all securities on deposit and receives the related investment income.