Reinsurance

3 Months Ended

Mar. 31, 2026

LPINE

Effective June 30, 2024, we entered into a reinsurance agreement with Lincoln Pinehurst Reinsurance Company (Bermuda) Limited (“LPINE”), an affiliated reinsurer with reciprocal jurisdiction status in Indiana as of August 8, 2025, to reinsure certain blocks of in-force group protection and fixed annuity products (“Initial LPINE Treaty”). Effective December 31, 2024, the Initial LPINE Treaty was amended to cede additional fixed annuity products and to open the treaty to reinsure the flow of new fixed annuity policies. Effective July 1, 2025, we amended the Initial LPINE Treaty again to cede an additional block of group protection business.

The Initial LPINE Treaty was structured as coinsurance with funds withheld. As significant insurance risk was transferred for the block of group protection products, amounts recoverable from LPINE were $3.6 billion and $3.9 billion as of March 31, 2026, and December 31, 2025, respectively. We reported a deferred loss of $36 million and $37 million as of March 31, 2026, and December 31, 2025, respectively. Fixed annuities are not life-contingent and do not contain significant insurance risk; therefore, we reported deposit assets of $10.1 billion and $9.6 billion as of March 31, 2026, and December 31, 2025, 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 $13.7 billion in support of reserves associated with the Initial LPINE Treaty, as amended, in a funds withheld arrangement as of March 31, 2026, and December 31, 2025, which consisted of the following (in millions):


	As of March 31, 2026		As of December 31, 2025

Fixed maturity AFS securities	$	11,328	$	11,272
Mortgage loans on real estate	2,110		2,115
Derivative investments	171		218
Accrued investment income	128		118
Total	$	13,737	$	13,723

Effective January 1, 2025, we entered into a second treaty with LPINE to cede the flow of new level term life insurance policies. Additionally, effective January 1, 2026, we entered into a third treaty with LPINE to cede the flow of executive benefits policies.

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 $14.4 billion and $14.1 billion as of March 31, 2026, and December 31, 2025, respectively. We reported a deferred gain on the transaction of $3.9 billion as of March 31, 2026, and December 31, 2025. We amortized $46 million and $45 million of the deferred gain during the three months ended March 31, 2026 and 2025, respectively. We held other investments and cash and invested cash with a carrying value of $1.3 billion and $1.5 billion as of March 31, 2026, and December 31, 2025, respectively, 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 $13.0 billion and $12.8 billion as of March 31, 2026, and December 31, 2025, 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 March 31, 2026, and December 31, 2025.

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 $10.5 billion and $10.6 billion as of March 31, 2026, and December 31, 2025, respectively. We reported a deferred loss on the transaction of $2.5 billion as of March 31, 2026, and December 31, 2025. We amortized $24 million and $23 million of the deferred loss during the three months ended March 31, 2026 and 2025, respectively. Annuities that are not life-contingent do not contain significant insurance risk; therefore, we reported deposit assets for these contracts of $2.3 billion and $2.4 billion as of March 31, 2026, and December 31, 2025, respectively.