Reinsurance

9 Months Ended

Sep. 30, 2025

LPINE

Effective June 30, 2024, we entered into a reinsurance agreement with Lincoln Pinehurst Reinsurance Company (Bermuda) Limited (“LPINE”), an affiliated reinsurer, to reinsure certain blocks of in-force group protection and fixed annuity products. Effective July 1, 2025, we amended the reinsurance agreement to reinsure an additional in-force block of group protection products.

This agreement was structured as coinsurance with funds withheld. As significant insurance risk was transferred for the group protection block, amounts recoverable from LPINE were $4.1 billion and $3.7 billion as of September 30, 2025, and December 31, 2024, respectively. We reported a deferred loss of $41 million and $14 million as of September 30, 2025, and December 31, 2024, respectively. Fixed annuities are not life-contingent and do not contain significant insurance risk; therefore, we reported deposit assets of $8.7 billion and $7.9 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 reserves and deposit assets.

We held investments with a carrying value of $12.9 billion and $11.5 billion in support of reserves associated with the LPINE agreement 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, 2025		As of December 31, 2024

Fixed maturity AFS securities	$	10,534	$	9,287
Mortgage loans on real estate	2,081		1,941
Derivative instruments	206		190
Accrued investment income	115		97
Total	$	12,936	$	11,515

LNBAR

We reinsure blocks of business to LNBAR, an affiliated reinsurer. Effective October 1, 2023, we entered into an agreement with LNBAR that was structured as a coinsurance treaty, with some assets withheld, for certain blocks of in-force MoneyGuard® products. As significant insurance risk was transferred for the MoneyGuard blocks, amounts recoverable from LNBAR were $14.0 billion and $14.2 billion as of September 30, 2025, and December 31, 2024, respectively. We reported a deferred gain on the transaction of $3.9 billion and $4.1 billion as of September 30, 2025, and December 31, 2024, respectively. We amortized $48 million and $138 million of the deferred gain during the three and nine months ended September 30, 2025, respectively, compared to $42 million and $125 million for the corresponding periods in 2024. We held other investments and cash and invested cash with a carrying value of $1.4 billion as of September 30, 2025, and December 31, 2024, in support of reserves associated with this agreement.

LNBAR has funded trusts to support reserves ceded by us of which the balance in the trusts changes as a result of ongoing reinsurance activity and totaled $12.7 billion and $12.2 billion as of September 30, 2025, and December 31, 2024, respectively.

Fortitude Re

Effective October 1, 2023, we entered into a reinsurance agreement 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”) and fixed annuity products, including group pension annuities. Fortitude Re represents our largest unaffiliated reinsurance exposure as of September 30, 2025, and December 31, 2024.

The agreement between us and Fortitude Re was structured as a coinsurance treaty 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.