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Investments
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments
8. Investments
See Note 1 for a description of the Company’s accounting policies for investments and Note 10 for information about the fair value hierarchy for investments and the related valuation methodologies.
Fixed Maturity Securities Available-For-Sale
Fixed Maturity Securities by Sector
Fixed maturity securities by sector were as follows at:
December 31, 2025
December 31, 2024
Amortized Cost
Allowance for Credit Losses
Gross Unrealized
Estimated Fair Value
Amortized Cost
Allowance for Credit Losses
Gross Unrealized
Estimated Fair Value
Gains
Losses
Gains
Losses
(In millions)
U.S. corporate
$
41,030 
$
27 
$
437 
$
3,031 
$
38,409 
$
40,437 
$
47 
$
212 
$
3,865 
$
36,737 
Foreign corporate
12,311 
31 
145 
991 
11,434 
13,203 
26 
53 
1,468 
11,762 
RMBS
8,967 
3 
83 
571 
8,476 
8,056 4 45 867 
7,230 
U.S. government and agency
6,942 
— 
104 
601 
6,445 
7,112 — 39 691 
6,460 
ABS
6,054 
— 
33 
56 
6,031 
6,348 — 33 75 
6,306 
CMBS
6,009 
1 
14 
222 
5,800 
6,702 2 7 415 
6,292 
State and political subdivision
3,620 
— 
100 
297 
3,423 
3,671 
— 
78 
367 
3,382 
Foreign government
974 
— 
35 
67 
942 
1,036 
— 
24 
100 
960 
Total fixed maturity securities
$
85,907 
$
62 
$
951 
$
5,836 
$
80,960 
$
86,565 
$
79 
$
491 
$
7,848 
$
79,129 
The Company held non-income producing fixed maturity securities with an estimated fair value of $14 million and $30 million at December 31, 2025 and 2024, respectively.
Maturities of Fixed Maturity Securities
The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2025:
Due in One Year or Less
Due After One Year Through Five Years
Due After Five Years Through Ten Years
Due After Ten Years
Structured Securities
Total Fixed Maturity Securities
(In millions)
Amortized cost
$
4,873 
$
19,360 
$
13,015 
$
27,629 
$
21,030 
$
85,907 
Estimated fair value
$
4,848 
$
19,128 
$
12,647 
$
24,030 
$
20,307 
$
80,960 
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity.
Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector
The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:
December 31, 2025
December 31, 2024
Less than 12 Months
12 Months or Greater
Less than 12 Months
12 Months or Greater
Estimated Fair Value
Gross Unrealized Losses
Estimated Fair Value
Gross Unrealized Losses
Estimated Fair Value
Gross Unrealized Losses
Estimated Fair Value
Gross Unrealized Losses
(Dollars in millions)
U.S. corporate
$
4,126 
$
394 
$
18,777 
$
2,637 
$
10,758 
$
719 
$
17,329 
$
3,146 
Foreign corporate
1,380 
179 
5,203 
812 
3,269 
351 
5,502 
1,117 
RMBS
822 
48 
4,338 
523 
1,227 
82 
4,624 
785 
U.S. government and agency
587 
10 
2,229 
591 
2,384 
116 
1,858 
575 
ABS
513 
2 
749 
54 
717 
10 
1,076 
65 
CMBS
323 
3 
4,227 
219 
1,326 
90 
4,338 
325 
State and political subdivision
251 
7 
1,777 
290 
871 
63 
1,435 
304 
Foreign government
54 
5 
560 
62 
273 
29 
433 
71 
Total fixed maturity securities
$
8,056 
$
648 
$
37,860 
$
5,188 
$
20,825 
$
1,460 
$
36,595 
$
6,388 
Total number of securities in an unrealized loss position
1,313 
5,035 
3,356 
5,195 
Allowance for Credit Losses for Fixed Maturity Securities
Evaluation and Measurement Methodologies
For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors.
Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI.
Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).
Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.
Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $663 million and $665 million at December 31, 2025 and 2024, respectively, and is included in accrued investment income.
Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities.
Current Period Evaluation
Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $62 million, relating to 19 securities, at December 31, 2025. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity.
Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector
The changes in the allowance for credit losses for fixed maturity securities by sector were as follows:
U.S. Corporate
Foreign Corporate
RMBS
CMBS
Total
(In millions)
Balance at December 31, 2023
$
15 
$
— 
$
4 
$2 
$
21 
Allowance on securities where credit losses were not previously recorded
29 
26 
1 
— 
56 
Reductions for securities sold
— 
— 
— 
— 
— 
Change in allowance on securities with an allowance recorded in a previous period
3 
— 
(1)
— 
2 
Write-offs charged against allowance (1)
— 
— 
— 
— 
— 
Balance at December 31, 2024
47 
26 
4 
2 
79 
Allowance on securities where credit losses were not previously recorded
4 
— 
— 
— 
4 
Reductions for securities sold
(4)
— 
— 
(1)
(5)
Change in allowance on securities with an allowance recorded in a previous period
7 
5 
(1)
— 
11 
Write-offs charged against allowance (1)(27)— — — 
(27)
Balance at December 31, 2025
$27 $31 $3 $1 $62 
_______________
(1)The Company recorded total write-offs of $33 million and $12 million for the years ended December 31, 2025 and 2024, respectively.
Mortgage Loans
Mortgage Loans by Portfolio Segment
Mortgage loans are summarized as follows at:
December 31,
2025
2024
Carrying
Value
% of
Total
Carrying
Value
% of
Total
(Dollars in millions)
Commercial
$
12,319 
54.2 
%
$
13,326 
57.3 
%
Agricultural
4,631 
20.4 
4,563 
19.6 
Residential
5,976 
26.3 
5,543 
23.8 
Total mortgage loans (1)
22,926 
100.9 
23,432 
100.7 
Allowance for credit losses
(200)
(0.9)
(178)
(0.7)
Total mortgage loans, net
$
22,726 
100.0 
%
$
23,254 
100.0 
%
_______________
(1)    Purchases of mortgage loans from third parties were $1.2 billion and $1.0 billion for the years ended December 31, 2025 and 2024, respectively, and were primarily comprised of residential mortgage loans.
Allowance for Credit Losses for Mortgage Loans
Evaluation and Measurement Methodologies
The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible.
Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $132 million at both December 31, 2025 and 2024.
The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two years is used with an input reversion period of one year.
Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, modifications, foreclosure probable loans, and loans with dissimilar risk characteristics.
Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components.
For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a non-credit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.
Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment
The changes in the allowance for credit losses by portfolio segment were as follows:
Commercial
Agricultural
Residential
Total
(In millions)
Balance at December 31, 2023
$
69 
$
19 
$
49 
$
137 
Current period provision
50 
11 
(7)
54 
Charge-offs, net of recoveries
(13)
— 
— 
(13)
Balance at December 31, 2024
106 
30 
42 
178 
Current period provision
76 
2 
4 
82 
Charge-offs, net of recoveries
(48)
(12)
— 
(60)
Balance at December 31, 2025
$
134 
$
20 
$
46 
$
200 
Credit Quality of Mortgage Loans by Portfolio Segment
The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:
2025
2024
2023
2022
2021
Prior
Total
(In millions)
December 31, 2025
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%$423 $668 $157 $483 $1,713 $2,903 $6,347 
65% to 75%262 180 — 583 651 717 2,393 
76% to 80%9 — — 205 287 605 1,106 
Greater than 80%36 — — 661 244 1,532 2,473 
Total commercial mortgage loans730 848 157 1,932 2,895 5,757 12,319 
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%415 341 190 558 1,048 1,798 4,350 
65% to 75%43 — 17 97 100 18 275 
76% to 80%— — — — — 3 3 
Greater than 80%
— — — — 3 — 3 
Total agricultural mortgage loans458 341 207 655 1,151 1,819 4,631 
Residential mortgage loans
Performing873 622 168 1,146 1,505 1,554 5,868 
Nonperforming— — — 45 22 41 108 
Total residential mortgage loans
873 622 168 1,191 1,527 1,595 5,976 
Total$2,061 $1,811 $532 $3,778 $5,573 $9,171 $22,926 
2024
2023
2022
2021
2020
Prior
Total
(In millions)
December 31, 2024
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%
$
640 
$
199 
$
279 
$
1,850 
$
196 
$
2,844 
$
6,008 
65% to 75%
208 
— 
1,022 
713 
62 
1,171 
3,176 
76% to 80%
— 
— 
117 
201 
174 
601 
1,093 
Greater than 80%
— 
— 
972 
388 
— 
1,689 
3,049 
Total commercial mortgage loans
848 
199 
2,390 
3,152 
432 
6,305 
13,326 
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%
408 
203 
594 
1,073 
400 
1,632 
4,310 
65% to 75%
— 
18 
80 
113 
6 
19 
236 
76% to 80%
— 
— 
— 
— 
1 
— 
1 
Greater than 80%
— 
— 
— 
— 
— 
16 
16 
Total agricultural mortgage loans
408 
221 
674 
1,186 
407 
1,667 
4,563 
Residential mortgage loans
Performing
586 
222 
1,268 
1,640 
146 
1,563 
5,425 
Nonperforming
1 
— 
44 
21 
1 
51 
118 
Total residential mortgage loans
587 
222 
1,312 
1,661 
147 
1,614 
5,543 
Total
$
1,843 
$
642 
$
4,376 
$
5,999 
$
986 
$
9,586 
$
23,432 
The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments.
The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:
December 31,
2025
2024
Amortized Cost
% of Total
Amortized Cost
% of Total
(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x
$
11,154 
90.5 
%
$
12,029 
90.3 
%
1.00x - 1.20x
738 
6.0 
801 
6.0 
Less than 1.00x
427 
3.5 
496 
3.7 
Total
$
12,319 
100.0 
%
$
13,326 
100.0 
%
The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments.
Past Due Mortgage Loans by Portfolio Segment
The Company has a high-quality, well-performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both December 31, 2025 and 2024. Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days; and agricultural mortgage loans — 90 days.
The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:
December 31,
2025
2024
Commercial
Agricultural
Residential
Total
Commercial
Agricultural
Residential
Total
(In millions)
Current
$12,212 $4,623 $5,865 $22,700 
$
13,206 
$
4,538 
$
5,423 
$
23,167 
30-59 days past due
47 — 3 50 
— 
— 
2 
2 
60-89 days past due
— — 31 31 
— 
— 
36 
36 
90-179 days past due
49 — 28 77 
21 
9 
36 
66 
180+ days past due
11 8 49 68 
99 
16 
46 
161 
Total
$
12,319 
$
4,631 
$
5,976 
$
22,926 
$
13,326 
$
4,563 
$
5,543 
$
23,432 
Mortgage Loans in Nonaccrual Status by Portfolio Segment
Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized.
The amortized cost of mortgage loans in a nonaccrual status by portfolio segment was as follows at:
Commercial
Agricultural
Residential (1)
Total
(In millions)
December 31, 2025
$
220 
$
5 
$
108 
$
333 
December 31, 2024
$
120 
$
25 
$
118 
$
263 
_______________
(1)The Company had $54 million and $3 million of mortgage loans in nonaccrual status for which there was no related allowance for credit losses at December 31, 2025 and 2024, respectively.
Current period investment income on mortgage loans in nonaccrual status was $9 million and $6 million for the years ended December 31, 2025 and 2024, respectively.
Modified Mortgage Loans by Portfolio Segment
Under certain circumstances, modifications are granted to mortgage loans. Generally, the types of concessions may include interest rate reduction, term extension, principal forgiveness, or a combination of all three.
The Company did not have a significant amount of commercial mortgage loans modified during the year ended December 31, 2025. The Company had $386 million of commercial mortgage loans modified under a term extension which represented 2% of the carrying value of total mortgage loans at December 31, 2024. The Company did not have a significant amount of agricultural and residential mortgage loans modified during both years ended December 31, 2025 and 2024.
Other Invested Assets
Over 75% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 9 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes the Company’s investment in company-owned life insurance, FHLB stock, leveraged leases and tax credit and renewable energy partnerships.
Leveraged Leases
The carrying value of leveraged leases was $60 million at both December 31, 2025 and 2024. The allowance for credit losses was less than $1 million at both December 31, 2025 and 2024. Rental receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to seven years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. Nonperforming rental receivables are generally defined as those that are 90 days or more past due. At both December 31, 2025 and 2024, all leveraged leases were performing.
Net Unrealized Investment Gains (Losses)
Unrealized investment gains (losses) on fixed maturity securities, and the effect on future policy benefits that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in accumulated other comprehensive income (loss) (“AOCI”).
The components of net unrealized investment gains (losses), included in AOCI, were as follows at:
Years Ended December 31,
2025
2024
2023
(In millions)
Fixed maturity securities
$
(4,885)
$
(7,357)
$
(6,023)
Derivatives
219 
460 
344 
Other
(8)
(7)
(7)
Subtotal
(4,674)
(6,904)
(5,686)
Amounts allocated from:
Future policy benefits
571 
977 
696 
Deferred income tax benefit (expense)
862 
1,245 
1,048 
Net unrealized investment gains (losses)
$
(3,241)
$
(4,682)
$
(3,942)
The changes in net unrealized investment gains (losses) were as follows:
Years Ended December 31,
2025
2024
2023
(In millions)
Balance at January 1,
$
(4,682)
$
(3,942)
$
(5,545)
Unrealized investment gains (losses) during the year
2,230 
(1,218)
2,325 
Unrealized investment gains (losses) relating to:
Future policy benefits
(406)
281 
(296)
Deferred income tax benefit (expense)
(383)
197 
(426)
Balance at December 31,
$
(3,241)
$
(4,682)
$
(3,942)
Change in net unrealized investment gains (losses)
$
1,441 
$
(740)
$
1,603 
Concentrations of Credit Risk
There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both December 31, 2025 and 2024.
Securities Lending
Elements of the securities lending program are presented below at:
December 31,
2025
2024
(In millions)
Securities on loan: (1)
Amortized cost
$
3,550 
$
3,582 
Estimated fair value
$
3,141 
$
3,127 
Cash collateral received from counterparties (2)
$
3,225 
$
3,210 
Reinvestment portfolio — estimated fair value
$
3,352 
$
3,217 
_______________
(1)Included in fixed maturity securities.
(2)Included in payables for collateral under securities loaned and other transactions.
The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:
December 31, 2025
December 31, 2024
Open (1)
1 Month or Less
1 to 6 Months
Total
Open (1)
1 Month or Less
1 to 6 Months
Total
(In millions)
U.S. government and agency
$
417 
$
663 
$
1,777 
$
2,857 
$
490 
$
1,467 
$
886 
$
2,843 
U.S. corporate48 256 — 
304 
— 
248 
— 
248 
Foreign corporate15 47 — 
62 
— 105 — 
105 
Foreign government— 2 — 2 — 14 — 
14 
Total$480 $968 $1,777 $3,225 $490 $1,834 $886 $3,210 
_______________
(1)The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.
If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at December 31, 2025 was $466 million, primarily comprised of U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.
The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, U.S. government and agency securities, U.S. and foreign corporate securities, non-agency RMBS and CMBS) with 50% invested in agency RMBS, U.S. government and agency securities and cash and cash equivalents at December 31, 2025. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company.
Invested Assets on Deposit, Held in Trust and Pledged as Collateral
Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:
December 31,
2025
2024
(In millions)
Invested assets on deposit (regulatory deposits) (1)
$
6,570 
$
6,246 
Invested assets held in trust (reinsurance agreements) (2)
7,268 
8,226 
Invested assets pledged as collateral (3)
10,794 
12,471 
Total invested assets on deposit, held in trust and pledged as collateral
$
24,632 
$
26,943 
_______________
(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $126 million and $68 million of the assets on deposit represents restricted cash and cash equivalents at December 31, 2025 and 2024, respectively.
(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $328 million and $332 million of the assets held in trust balance represents restricted cash and cash equivalents at December 31, 2025 and 2024, respectively.
(3)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3) and derivative transactions (see Note 9).
See “— Securities Lending” for information regarding securities on loan. In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $218 million and $222 million at redemption value at December 31, 2025 and 2024, respectively.
Collectively Significant Equity Method Investments
The Company holds investments in limited partnerships and LLCs consisting of leveraged buy-out funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of $4.7 billion at December 31, 2025. The Company’s maximum exposure to loss related to these equity method investments is the carrying value of these investments plus unfunded commitments of $1.1 billion at December 31, 2025. The Company’s investments in limited partnerships and LLCs are generally of a passive nature in that the Company does not participate in the management of the entities.
As described in Note 1, the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-tax income (loss) for each of the years ended December 31, 2025, 2024 and 2023. This aggregated summarized financial data does not represent the Company’s proportionate share of the assets, liabilities or earnings of such entities.
The aggregated summarized financial data presented below reflects the latest available financial information and is as of and for the years ended December 31, 2025, 2024 and 2023. Aggregate total assets of these entities totaled $822.2 billion and $903.8 billion at December 31, 2025 and 2024, respectively. Aggregate total liabilities of these entities totaled $76.2 billion and $78.5 billion at December 31, 2025 and 2024, respectively. Aggregate net income (loss) of these entities totaled $53.1 billion, $60.1 billion and $24.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses).
Variable Interest Entities
A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity.
The Company enters into various arrangements with VIEs in the normal course of business and has invested in legal entities that are VIEs. VIEs are consolidated when it is determined that the Company is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity.
There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either December 31, 2025 or 2024.
The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:
December 31,
2025
2024
Carrying Amount
Maximum Exposure to Loss
Carrying Amount
Maximum Exposure to Loss
(In millions)
Fixed maturity securities
$
13,020 
$
13,614 
$
14,248 
$
15,330 
Limited partnerships and LLCs
4,275 
5,231 
4,223 
5,265 
Total
$
17,295 
$
18,845 
$
18,471 
$
20,595 
The Company’s investments in unconsolidated VIEs are described below.
Fixed Maturity Securities
The Company invests in U.S. corporate bonds, foreign corporate bonds and Structured Securities issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-For-Sale” for information on these securities.
Limited Partnerships and LLCs
The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, and, to a lesser extent, tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 15.
Net Investment Income
The components of net investment income were as follows:
Years Ended December 31,
2025
2024
2023
(In millions)
Investment income:
Fixed maturity securities
$
3,664 
$
3,708 
$
3,481 
Trading securities (1)
23 
— 
— 
Equity securities
1 
3 
2 
Mortgage loans
1,023 
1,000 
957 
Policy loans
48 
48 
45 
Limited partnerships and LLCs (2)
372 
357 
167 
Cash, cash equivalents and short-term investments
233 
225 
181 
Other
110 
104 
84 
Total investment income
5,474 
5,445 
4,917 
Less: Investment expenses
335 
345 
357 
Net investment income
$
5,139 
$
5,100 
$
4,560 
_______________
(1)Investment gains (losses) were less than ($1) million related to trading securities still held for the year ended December 31, 2025. There were no investment gains (losses) related to trading securities still held for the years ended December 31, 2024 and 2023.
(2)Includes net investment income pertaining to other limited partnership interests of $332 million, $367 million and $186 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Net Investment Gains (Losses)
Components of Net Investment Gains (Losses)
The components of net investment gains (losses) were as follows:
Years Ended December 31,
2025
2024
2023
(In millions)
Fixed maturity securities 
$
(88)
$
(243)
$
(214)
Equity securities
(1)
(12)
(1)
Mortgage loans
(83)
(55)
(24)
Limited partnerships and LLCs
2 
(2)
(1)
Other (1)
68 
14 
(2)
Total net investment gains (losses) (2)
$
(102)
$
(298)
$
(242)
_______________
(1)In July 2025, the Company sold a subsidiary which owned certain mineral rights across the U.S. and recognized a gain of $66 million for the year ended December 31, 2025.
(2)Gains (losses) from foreign currency transactions included within net investment gains (losses) were not significant for the year ended December 31, 2025 and were ($1) million for both years ended December 31, 2024 and 2023.
Sales or Disposals of Fixed Maturity Securities
Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows:
Years Ended December 31,
2025
2024
2023
(In millions)
Proceeds
$
1,435 
$
3,436 
$
2,223 
Gross investment gains
$
9 
$
20 
$
15 
Gross investment losses
(80)
(193)
(206)
Net investment gains (losses)
$
(71)
$
(173)
$
(191)