Reinsurance

9 Months Ended

Sep. 30, 2025

Fortitude Re

Effective October 1, 2023, we entered into two reinsurance agreements with Fortitude Reinsurance Company Ltd. (“Fortitude Re”), an authorized Bermuda reinsurer with reciprocal jurisdiction reinsurer status in Indiana, to reinsure certain blocks of in-force UL with secondary guarantees (“ULSG”), MoneyGuard® and fixed annuity products, including group pension annuities. Fortitude Re represents our largest reinsurance exposure as of September 30, 2025, and December 31, 2024.

The first agreement was structured as a coinsurance treaty between us and Fortitude Re for the ULSG and fixed annuities blocks. As significant insurance risk was transferred for ULSG products and life-contingent annuities, amounts recoverable from Fortitude Re were $10.6 billion as of September 30, 2025, and December 31, 2024. We reported a deferred loss on the transaction of $2.5 billion and $2.6 billion as of September 30, 2025, and December 31, 2024, respectively. We amortized $23 million and $69 million of the deferred loss during the three and nine months ended September 30, 2025, respectively, and $23 million and $67 million for the three and nine months ended September 30, 2024, respectively. Annuities that are not life-contingent do not contain significant insurance risk; therefore, we reported deposit assets for these contracts of $2.5 billion and $3.0 billion as of September 30, 2025, and December 31, 2024, respectively.

The second agreement was structured as coinsurance with funds withheld for the MoneyGuard block; however, as we retained significant insurance risk under the agreement, we reported deposit assets of $8.4 billion and $8.1 billion as of September 30, 2025, and December 31, 2024, respectively. In this coinsurance with funds withheld reinsurance agreement, we as the ceding company withhold, and therefore retain, the assets backing the deposit assets. We held investments with a carrying value of $9.1 billion and $9.3 billion in support of reserves associated with the Fortitude Re transaction in a funds withheld arrangement as of September 30, 2025, and December 31, 2024, respectively, which consisted of the following (in millions):


	As of September 30,		As of December 31,
	2025		2024
Fixed maturity AFS securities	$	7,607	$	7,764
Derivative investments	25		30
Other investments	1,392		1,419
Cash and invested cash	10		28
Accrued investment income	91		96
Other assets	1		–
Total	$	9,126	$	9,337