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Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2025

Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.


	December 31, 2025
	Level 1		Level 2		Level 3		Netting(1)		Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	1,117,320	$	0	$		$	1,117,320
Obligations of U.S. states and their political subdivisions	0		434,528		0				434,528
Foreign government securities	0		424,735		0				424,735
U.S. corporate public securities	0		19,067,987		0				19,067,987
U.S. corporate private securities	0		5,860,168		842,444				6,702,612
Foreign corporate public securities	0		5,312,470		8,746				5,321,216
Foreign corporate private securities	0		6,722,526		460,924				7,183,450
Asset-backed securities(2)	0		3,814,974		1,261,074				5,076,048
Commercial mortgage-backed securities	0		1,278,970		75,340				1,354,310
Residential mortgage-backed securities	0		933,162		8,803				941,965
Subtotal	0		44,966,840		2,657,331				47,624,171
Market risk benefit assets	0		0		2,655,866				2,655,866
Fixed maturities, trading	0		4,738,551		153,956				4,892,507
Equity securities	2,731,986		135,295		2,350				2,869,631
Short-term investments	0		271,028		164				271,192
Cash equivalents	50,286		2,464,769		0				2,515,055
Other invested assets(3)	285,479		21,524,856		0		(21,763,852)		46,483

Reinsurance recoverables and deposit receivables	0		0		804,855				804,855
Receivables from parent and affiliates	0		291,583		358,188				649,771
Subtotal excluding separate account assets	3,067,751		74,392,922		6,632,710		(21,763,852)		62,329,531
Separate account assets(4)(5)	567,387		110,105,979		21,982				110,695,348
Total assets	$	3,635,138	$	184,498,901	$	6,654,692	$	(21,763,852)	$	173,024,879
Market risk benefit liabilities	$	0	$	0	$	4,482,417	$		$	4,482,417
Policyholders' account balances	0		0		18,606,282				18,606,282
Reinsurance and funds withheld payables	0		265		0				265
Payables to parent and affiliates	0		33,211,800		0		(30,731,963)		2,479,837
Other liabilities	258,878		0		0		(256,500)		2,378
Total liabilities	$	258,878	$	33,212,065	$	23,088,699	$	(30,988,463)	$	25,571,179


	December 31, 2024
	Level 1		Level 2		Level 3		Netting(1)		Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	1,099,241	$	0	$		$	1,099,241
Obligations of U.S. states and their political subdivisions	0		541,066		0				541,066
Foreign government securities	0		309,686		648				310,334
U.S. corporate public securities	0		13,238,428		0				13,238,428
U.S. corporate private securities	0		4,996,400		757,697				5,754,097
Foreign corporate public securities	0		3,692,124		6,727				3,698,851
Foreign corporate private securities	0		4,906,450		435,183				5,341,633
Asset-backed securities(2)	0		3,126,089		624,574				3,750,663
Commercial mortgage-backed securities	0		820,457		75,318				895,775
Residential mortgage-backed securities	0		356,072		0				356,072
Subtotal	0		33,086,013		1,900,147				34,986,160
Market risk benefit assets	0		0		2,637,363				2,637,363
Fixed maturities, trading	0		3,778,760		66,285				3,845,045
Equity securities	2,587,791		15,514		20,515				2,623,820
Short-term investments	0		390,745		105,540				496,285
Cash equivalents	0		2,851,250		33				2,851,283
Other invested assets(3)	2,302		15,330,249		143		(15,308,195)		24,499

Reinsurance recoverables and deposit receivables	0		0		645,193				645,193
Receivables from parent and affiliates	0		169,072		351,390				520,462
Subtotal excluding separate account assets	2,590,093		55,621,603		5,726,609		(15,308,195)		48,630,110
Separate account assets(4)(5)	273,288		111,415,717		10,547				111,699,552
Total assets	$	2,863,381	$	167,037,320	$	5,737,156	$	(15,308,195)	$	160,329,662
Market risk benefit liabilities	$	0	$	0	$	4,281,244	$		$	4,281,244
Policyholders' account balances	0		0		12,624,585				12,624,585

Payables to parent and affiliates	0		27,232,920		0		(23,617,643)		3,615,277
Other liabilities	7,988		1,274		31		(1,943)		7,350
Total liabilities	$	7,988	$	27,234,194	$	16,905,860	$	(23,619,586)	$	20,528,456

(1)"Netting" amounts represent cash collateral of $(9,225) million and $(8,311) million as of December 31, 2025 and 2024, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting agreements.

(2)Includes credit-tranched securities collateralized by loan obligations, home equity loans, auto loans and education loans.

(3)Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At December 31, 2025 and 2024, the fair value of such investments was $87 million and $44 million, respectively.

(4)Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Consolidated Statements of Financial Position.

(5)Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate-owned life insurance fund. At December 31, 2025 and 2024, the fair value of such investments was $7,914 million and $6,444 million, respectively.

Fair Value Inputs, Assets and Liabilities, Quantitative Information

The tables below present quantitative information regarding significant internally-priced Level 3 assets and liabilities.


	December 31, 2025
	Fair Value		Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value(1)(2)
	(in thousands)
Assets:
Corporate securities(3)	$	1,187,393	Discounted cash flow	Discount rate	1.85	%	25.50	%	9.62	%	Decrease
			Market comparables	EBITDA multiple(4)	7.00 X		7.00 X		7.00 X		Increase
			Liquidation	Liquidation value	12.01	%	30.83	%	28.88	%	Increase
Asset-backed securities	$	403,303	Discounted cash flow	Discount rate	2.10	%	10.05	%	5.42	%	Decrease
Commercial mortgage-backed securities	$	75,340	Discounted cash flow	Liquidity premium	0.90	%	0.90	%	0.90	%	Decrease
Market risk benefit assets(5)	$	2,655,866	Discounted cash flow	Lapse rate(6)	1	%	20	%			Increase
				Spread over SOFR(7)	0.38	%	1.61	%			Increase
				Utilization rate(8)	37	%	94	%			Decrease
				Withdrawal rate	See table footnote (9) below.
				Mortality rate(10)	0	%	16	%			Increase
				Equity volatility curve	15	%	25	%			Decrease





Reinsurance recoverables and deposit receivables(11)	$	804,855	Discounted cash flow	Lapse rate(6)	0	%	80	%			Decrease
				Spread over SOFR(7)	0.38	%	1.61	%			Decrease
				Option budget(13)	(2)	%	9	%			Increase
Receivables from parent and affiliates	$	354,207	Liquidation	Liquidation value	100	%	100	%	100	%	Increase
Liabilities:
Market risk benefit liabilities(5)	$	4,482,417	Discounted cash flow	Lapse rate(6)	1	%	20	%			Decrease
				Spread over SOFR(7)	0.38	%	1.61	%			Decrease
				Utilization rate(8)	37	%	94	%			Increase
				Withdrawal rate	See table footnote (9) below.
				Mortality rate(10)	0	%	16	%			Decrease
				Equity volatility curve	15	%	25	%			Increase
Policyholders' account balances(12)	$	18,606,282	Discounted cash flow	Lapse rate(6)	0	%	80	%			Decrease
				Spread over SOFR(7)	0.38	%	1.61	%			Decrease
				Mortality rate(10)	0	%	23	%			Decrease

				Option budget(13)	(2)	%	9	%			Increase


	December 31, 2024
	Fair Value		Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value(1)(2)
	(in thousands)
Assets:
Corporate securities(3)	$	1,130,627	Discounted cash flow	Discount rate	2.15	%	20.00	%	11.15	%	Decrease
			Market comparables	EBITDA multiple(4)	5.0	X	5.0	X	5.0	X	Increase
			Liquidation	Liquidation value	75.00	%	75.00	%	75.00	%	Increase
Asset-backed securities	$	90,370	Discounted cash flow	Discount rate	2.30	%	10.70	%	6.18	%	Decrease
Commercial mortgage-backed securities	$	75,318	Discounted cash flow	Liquidity premium	1.00	%	1.00	%	1.00	%	Decrease
Market risk benefit assets(5)	$	2,637,363	Discounted cash flow	Lapse rate(6)	1	%	20	%			Increase
				Spread over SOFR(7)	0.29	%	1.79	%			Increase
				Utilization rate(8)	37	%	94	%			Decrease
				Withdrawal rate	See table footnote (9) below.
				Mortality rate(10)	0	%	16	%			Increase
				Equity volatility curve	16	%	25	%			Decrease
Reinsurance recoverables and deposit receivables(11)	$	645,193	Discounted cash flow	Lapse rate(6)	0	%	80	%			Decrease
				Spread over SOFR(7)	0.29	%	1.71	%			Decrease


				Option budget(13)	(1)	%	7	%			Increase
Receivables from parent and affiliates	$	328,001	Liquidation	Liquidation value	100	%	100	%	100	%	Increase
Liabilities:
Market risk benefit liabilities(5)	$	4,281,244	Discounted cash flow	Lapse rate(6)	1	%	20	%			Decrease
				Spread over SOFR(7)	0.29	%	1.79	%			Decrease
				Utilization rate(8)	37	%	94	%			Increase
				Withdrawal rate	See table footnote (9) below.
				Mortality rate(10)	0	%	16	%			Decrease
				Equity volatility curve	16	%	25	%			Increase
Policyholders' account balances(12)	$	12,624,585	Discounted cash flow	Lapse rate(6)	0	%	80	%			Decrease
				Spread over SOFR(7)	0.29	%	1.73	%			Decrease
				Mortality rate(10)	0	%	23	%			Decrease

				Option budget(13)	(1)	%	7	%			Increase

(1)Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2)Directional impacts for MRB assets and liabilities are associated with the directional impacts of direct and assumed MRBs.

(3)Includes assets classified as fixed maturities, available-for-sale and fixed maturities, trading.

(4)Represents multiple of earnings before interest, taxes, depreciation and amortization ("EBITDA"), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments.

(5)Market risk benefits primarily represent fair value for all living benefit guarantees including accumulation, withdrawal and income benefits. Since the valuation methodology for these assets and liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(6)Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these balances.

(7)The spread over the SOFR swap curve represents the premium added to the proxy for the risk-free rate (SOFR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees as of December 31, 2025 and 2024, respectively. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements are insurance liabilities and are therefore senior to debt. Effective April 2023, the Company entered into an agreement with The Ohio National Life Insurance Company, now known as AuguStar Life Insurance Company ("AuguStar"), an affiliate of Constellation Insurance Holdings, Inc., to reinsure approximately $10 billion of account values of PDI traditional variable annuity contracts with guaranteed living benefits. See Note 12 for additional information regarding this transaction. As a result of this transaction, a ceded MRB asset balance was established to fair value the reinsurance reimbursements to the Company. The establishment of the fair value also required an estimate of NPR for AuguStar, which may differ from the Company's; however, the NPR spreads for AuguStar were developed using a methodology similar to that of the Company.

(8)The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(9)The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of both December 31, 2025 and 2024, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(10)The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age and duration. A mortality improvement assumption is also incorporated into the overall mortality table.

(11)Includes deposit assets related to reinsurance agreements using deposit method of accounting and modified coinsurance agreements, which include amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain annuity products.

(12)Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life and annuity products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(13)Option budget estimates the expected long-term cost of options used to hedge exposures associated with equity price and interest rate changes. The level of option budget determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods (excluding MRBs disclosed in Note 11). When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.


	Year Ended December 31, 2025(6)
	Fair Value, beginning of period		Total realized and unrealized gains (losses)		Purchases		Sales		Issuances		Settlements		Other(1)		Transfers into Level 3(7)		Transfers out of Level 3(7)		Fair Value, end of period		Unrealized gains (losses) for assets and liabilities still held(2)
	(in thousands)
Fixed maturities, available-for-sale:

Foreign government	$	648	$	(8)	$	0	$	0	$	0	$	(640)	$	0	$	0	$	0	$	0	$	0
Corporate securities(3)	1,199,607		(18,352)		1,298,618		(929,011)		0		(275,269)		(3,819)		54,950		(14,610)		1,312,114		(26,070)
Structured securities(4)	699,892		6,535		879,448		(38,219)		0		(229,224)		(30,444)		292,257		(235,028)		1,345,217		4,813
Other assets:
Fixed maturities, trading	66,285		22,926		565,106		0		0		(46,805)		26,461		2,166		(482,183)		153,956		26,447
Equity securities	20,515		(140)		2,249		0		0		0		0		0		(20,274)		2,350		(140)
Other invested assets	143		(143)		0		0		0		0		0		0		0		0		(143)
Short-term investments	105,540		(201)		4,018		(104,545)		0		(25,279)		(1,741)		22,372		0		164		(226)
Cash equivalents	33		(46)		2,660		(35)		0		(2,305)		(307)		0		0		0		(80)

Reinsurance recoverables and deposit receivables(5)	645,193		(19,866)		179,528		0		0		0		0		0		0		804,855		(337,374)
Separate account assets	10,547		520		12,710		(789)		0		(1,006)		0		0		0		21,982		533
Receivables from parent and affiliates	351,390		(8,467)		159,069		(16,034)		0		(135,122)		30,792		0		(23,440)		358,188		(588)
Liabilities:
Policyholders' account balances(5)	(12,624,585)		(4,407,178)		0		0		(1,574,519)		0		0		0		0		(18,606,282)		675,999

Other liabilities	(31)		31		0		0		0		0		0		0		0		0		31
Notes issued by consolidated variable interest entities	0		0		0		0		(17,538)		17,538		0		0		0		0		0


	Year Ended December 31, 2025
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets and liabilities still held(2)
	Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(51,531)	$	0	$	0	$	38,751	$	955	$	(57,441)	$	0	$	0	$	36,184
Other assets:
Fixed maturities, trading	0		23,182		0		0		(256)		0		26,447		0		0
Equity securities	0		(140)		0		0		0		0		(140)		0		0
Other invested assets	(143)		0		0		0		0		(143)		0		0		0
Short-term investments	184		0		0		(385)		0		125		0		0		(351)
Cash equivalents	(46)		0		0		0		0		(80)		0		0		0

Reinsurance recoverables and deposit receivables	(19,866)		0		0		0		0		(337,374)		0		0		0
Separate account assets	0		0		520		0		0		0		0		533		0
Receivables from parent and affiliates	(7,689)		0		0		(778)		0		0		0		0		(588)
Liabilities:
Policyholders' account balances	(4,407,178)		0		0		0		0		675,999		0		0		0

Other liabilities	31		0		0		0		0		31		0		0		0
Notes issued by consolidated variable interest entities	0		0		0		0		0		0		0		0		0


	Year Ended December 31, 2024(6)
	Fair Value, beginning of period		Total realized and unrealized gains (losses)		Purchases		Sales		Issuances		Settlements		Other(1)		Transfers into Level 3(7)		Transfers out of Level 3(7)		Fair Value, end of period		Unrealized gains (losses) for assets and liabilities still held(2)
	(in thousands)
Fixed maturities, available-for-sale:

Foreign government	$	682	$	(34)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	648	$	(44)
Corporate securities(3)	1,014,343		(69,658)		1,172,201		(702,073)		0		(183,577)		(64,672)		33,043		0		1,199,607		(61,011)
Structured securities(4)	177,237		(5,386)		771,208		(40,508)		0		(96,067)		65,480		34,578		(206,650)		699,892		(3,394)
Other assets:
Fixed maturities, trading	34,048		(9,654)		261,968		(52)		0		(2,261)		0		18,842		(236,606)		66,285		(9,705)
Equity securities	28,709		(2,135)		273		(6,120)		0		(6,332)		6,120		0		0		20,515		(230)
Other invested assets	1		142		0		0		0		0		0		0		0		143		142
Short-term investments	1,759		1,539		117,046		(13,113)		0		(1,488)		(203)		0		0		105,540		321
Cash equivalents	0		(41)		744		0		0		(65)		(605)		0		0		33		(41)

Reinsurance recoverables and deposit receivables(5)	192,642		26,029		333,291		0		0		0		93,231		0		0		645,193		(122,807)
Separate account assets	5,985		457		5,823		(2,050)		0		(126)		0		458		0		10,547		457
Receivables from parent and affiliates	0		90		418,916		(51,199)		0		0		0		0		(16,417)		351,390		90
Liabilities:
Policyholders' account balances(5)	(7,697,627)		(2,687,101)		0		0		(2,286,786)		0		46,929		0		0		(12,624,585)		1,254,144

Other liabilities	0		(31)		0		0		0		0		0		0		0		(31)		(31)


	Year Ended December 31, 2024
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets and liabilities still held(2)
	Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(54,924)	$	0	$	0	$	(19,313)	$	(841)	$	(40,765)	$	0	$	0	$	(23,684)
Other assets:
Fixed maturities, trading	0		(9,661)		0		0		7		0		(9,705)		0		0
Equity securities	0		(2,135)		0		0		0		0		(230)		0		0
Other invested assets	142		0		0		0		0		142		0		0		0
Short-term investments	1,142		0		0		385		12		(64)		0		0		385
Cash equivalents	(41)		0		0		0		0		(41)		0		0		0

Reinsurance recoverables and deposit receivables	26,029		0		0		0		0		(122,807)		0		0		0
Separate account assets	0		0		457		0		0		0		0		457		0
Receivables from parent and affiliates	0		0		0		90		0		0		0		0		90
Liabilities:
Policyholders' account balances	(2,687,101)		0		0		0		0		1,254,144		0		0		0

Other liabilities	(31)		0		0		0		0		(31)		0		0		0


	Year Ended December 31, 2023
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets and liabilities still held(2)
	Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(2,081)	$	0	$	0	$	(2,808)	$	490	$	(2,904)	$	0	$	0	$	(2,420)
Other assets:
Fixed maturities, trading	0		1,080		0		0		3		0		1,225		0		0
Equity securities	0		(928)		0		0		0		0		(928)		0		0
Other invested assets	1		0		0		0		0		1		0		0		0
Short-term investments	1,857		0		0		(73)		789		0		0		0		0

Reinsurance recoverables and deposit receivables	(104,596)		0		0		0		0		(119,067)		0		0		0
Separate account assets	0		0		408		0		0		0		0		406		0


Liabilities:
Policyholders' account balances	(2,649,136)		0		0		0		0		(368,507)		0		0		0

(1)"Other" includes additional activity not allocated to the specific categories within the rollforward of Level 3 Assets and Liabilities.

(2)Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(3)Includes U.S. corporate private, foreign corporate public, foreign corporate private, and foreign government bonds.

(4)Includes asset-backed, commercial mortgage-backed, and residential mortgage-backed securities.

(5)Purchases/issuances and settlements for Policyholders' account balances and Reinsurance recoverables and deposit receivables are presented net in the rollforward.

(6)Excludes MRB assets of $2,656 million and $2,637 million and MRB liabilities of $4,482 million and $4,281 million as of December 31, 2025 and 2024, respectively. See Note 11 for additional information.

(7)Transfers into or out of Level 3 are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such positions still held at the end of the quarter.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation


	Year Ended December 31, 2025(6)
	Fair Value, beginning of period		Total realized and unrealized gains (losses)		Purchases		Sales		Issuances		Settlements		Other(1)		Transfers into Level 3(7)		Transfers out of Level 3(7)		Fair Value, end of period		Unrealized gains (losses) for assets and liabilities still held(2)
	(in thousands)
Fixed maturities, available-for-sale:

Foreign government	$	648	$	(8)	$	0	$	0	$	0	$	(640)	$	0	$	0	$	0	$	0	$	0
Corporate securities(3)	1,199,607		(18,352)		1,298,618		(929,011)		0		(275,269)		(3,819)		54,950		(14,610)		1,312,114		(26,070)
Structured securities(4)	699,892		6,535		879,448		(38,219)		0		(229,224)		(30,444)		292,257		(235,028)		1,345,217		4,813
Other assets:
Fixed maturities, trading	66,285		22,926		565,106		0		0		(46,805)		26,461		2,166		(482,183)		153,956		26,447
Equity securities	20,515		(140)		2,249		0		0		0		0		0		(20,274)		2,350		(140)
Other invested assets	143		(143)		0		0		0		0		0		0		0		0		(143)
Short-term investments	105,540		(201)		4,018		(104,545)		0		(25,279)		(1,741)		22,372		0		164		(226)
Cash equivalents	33		(46)		2,660		(35)		0		(2,305)		(307)		0		0		0		(80)

Reinsurance recoverables and deposit receivables(5)	645,193		(19,866)		179,528		0		0		0		0		0		0		804,855		(337,374)
Separate account assets	10,547		520		12,710		(789)		0		(1,006)		0		0		0		21,982		533
Receivables from parent and affiliates	351,390		(8,467)		159,069		(16,034)		0		(135,122)		30,792		0		(23,440)		358,188		(588)
Liabilities:
Policyholders' account balances(5)	(12,624,585)		(4,407,178)		0		0		(1,574,519)		0		0		0		0		(18,606,282)		675,999

Other liabilities	(31)		31		0		0		0		0		0		0		0		0		31
Notes issued by consolidated variable interest entities	0		0		0		0		(17,538)		17,538		0		0		0		0		0


	Year Ended December 31, 2025
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets and liabilities still held(2)
	Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(51,531)	$	0	$	0	$	38,751	$	955	$	(57,441)	$	0	$	0	$	36,184
Other assets:
Fixed maturities, trading	0		23,182		0		0		(256)		0		26,447		0		0
Equity securities	0		(140)		0		0		0		0		(140)		0		0
Other invested assets	(143)		0		0		0		0		(143)		0		0		0
Short-term investments	184		0		0		(385)		0		125		0		0		(351)
Cash equivalents	(46)		0		0		0		0		(80)		0		0		0

Reinsurance recoverables and deposit receivables	(19,866)		0		0		0		0		(337,374)		0		0		0
Separate account assets	0		0		520		0		0		0		0		533		0
Receivables from parent and affiliates	(7,689)		0		0		(778)		0		0		0		0		(588)
Liabilities:
Policyholders' account balances	(4,407,178)		0		0		0		0		675,999		0		0		0

Other liabilities	31		0		0		0		0		31		0		0		0
Notes issued by consolidated variable interest entities	0		0		0		0		0		0		0		0		0


	Year Ended December 31, 2024(6)
	Fair Value, beginning of period		Total realized and unrealized gains (losses)		Purchases		Sales		Issuances		Settlements		Other(1)		Transfers into Level 3(7)		Transfers out of Level 3(7)		Fair Value, end of period		Unrealized gains (losses) for assets and liabilities still held(2)
	(in thousands)
Fixed maturities, available-for-sale:

Foreign government	$	682	$	(34)	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	648	$	(44)
Corporate securities(3)	1,014,343		(69,658)		1,172,201		(702,073)		0		(183,577)		(64,672)		33,043		0		1,199,607		(61,011)
Structured securities(4)	177,237		(5,386)		771,208		(40,508)		0		(96,067)		65,480		34,578		(206,650)		699,892		(3,394)
Other assets:
Fixed maturities, trading	34,048		(9,654)		261,968		(52)		0		(2,261)		0		18,842		(236,606)		66,285		(9,705)
Equity securities	28,709		(2,135)		273		(6,120)		0		(6,332)		6,120		0		0		20,515		(230)
Other invested assets	1		142		0		0		0		0		0		0		0		143		142
Short-term investments	1,759		1,539		117,046		(13,113)		0		(1,488)		(203)		0		0		105,540		321
Cash equivalents	0		(41)		744		0		0		(65)		(605)		0		0		33		(41)

Reinsurance recoverables and deposit receivables(5)	192,642		26,029		333,291		0		0		0		93,231		0		0		645,193		(122,807)
Separate account assets	5,985		457		5,823		(2,050)		0		(126)		0		458		0		10,547		457
Receivables from parent and affiliates	0		90		418,916		(51,199)		0		0		0		0		(16,417)		351,390		90
Liabilities:
Policyholders' account balances(5)	(7,697,627)		(2,687,101)		0		0		(2,286,786)		0		46,929		0		0		(12,624,585)		1,254,144

Other liabilities	0		(31)		0		0		0		0		0		0		0		(31)		(31)


	Year Ended December 31, 2024
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets and liabilities still held(2)
	Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(54,924)	$	0	$	0	$	(19,313)	$	(841)	$	(40,765)	$	0	$	0	$	(23,684)
Other assets:
Fixed maturities, trading	0		(9,661)		0		0		7		0		(9,705)		0		0
Equity securities	0		(2,135)		0		0		0		0		(230)		0		0
Other invested assets	142		0		0		0		0		142		0		0		0
Short-term investments	1,142		0		0		385		12		(64)		0		0		385
Cash equivalents	(41)		0		0		0		0		(41)		0		0		0

Reinsurance recoverables and deposit receivables	26,029		0		0		0		0		(122,807)		0		0		0
Separate account assets	0		0		457		0		0		0		0		457		0
Receivables from parent and affiliates	0		0		0		90		0		0		0		0		90
Liabilities:
Policyholders' account balances	(2,687,101)		0		0		0		0		1,254,144		0		0		0

Other liabilities	(31)		0		0		0		0		(31)		0		0		0


	Year Ended December 31, 2023
	Total realized and unrealized gains (losses)										Unrealized gains (losses) for assets and liabilities still held(2)
	Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net		Other income (loss)		Interest credited to policyholders' account balances		Included in other comprehensive income (loss)
	(in thousands)
Fixed maturities, available-for-sale	$	(2,081)	$	0	$	0	$	(2,808)	$	490	$	(2,904)	$	0	$	0	$	(2,420)
Other assets:
Fixed maturities, trading	0		1,080		0		0		3		0		1,225		0		0
Equity securities	0		(928)		0		0		0		0		(928)		0		0
Other invested assets	1		0		0		0		0		1		0		0		0
Short-term investments	1,857		0		0		(73)		789		0		0		0		0

Reinsurance recoverables and deposit receivables	(104,596)		0		0		0		0		(119,067)		0		0		0
Separate account assets	0		0		408		0		0		0		0		406		0


Liabilities:
Policyholders' account balances	(2,649,136)		0		0		0		0		(368,507)		0		0		0

(1)"Other" includes additional activity not allocated to the specific categories within the rollforward of Level 3 Assets and Liabilities.

(2)Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(3)Includes U.S. corporate private, foreign corporate public, foreign corporate private, and foreign government bonds.

(4)Includes asset-backed, commercial mortgage-backed, and residential mortgage-backed securities.

(5)Purchases/issuances and settlements for Policyholders' account balances and Reinsurance recoverables and deposit receivables are presented net in the rollforward.

(7)Transfers into or out of Level 3 are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such positions still held at the end of the quarter.

Fair Value Disclosure Financial Instruments Not Carried at Fair Value

The tables below present the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.


	December 31, 2025
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	10,113,511	$	10,113,511	$	10,082,667
Policy loans	0		0		1,666,965		1,666,965		1,666,965
Short-term investments	49,602		0		0		49,602		49,602
Cash and cash equivalents	361,333		0		0		361,333		361,333
Accrued investment income	0		618,033		0		618,033		618,033
Reinsurance recoverables and deposit receivables	0		0		4,588,399		4,588,399		4,589,685
Receivables from parent and affiliates	0		313,681		0		313,681		313,681
Other assets	0		267,560		0		267,560		267,560
Total assets	$	410,935	$	1,199,274	$	16,368,875	$	17,979,084	$	17,949,526
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	762,066	$	14,868,285	$	15,630,351	$	15,644,802

Cash collateral for loaned securities	0		22,622		0		22,622		22,622
Reinsurance and funds withheld payables	0		2,886,507		0		2,886,507		2,886,507


Payables to parent and affiliates	0		17,380		0		17,380		17,380
Other liabilities	0		657,530		30,794		688,324		688,324
Total liabilities	$	0	$	4,346,105	$	14,899,079	$	19,245,184	$	19,259,635


	December 31, 2024
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	7,534,909	$	7,534,909	$	7,759,323
Policy loans	0		0		1,541,480		1,541,480		1,541,480
Short-term investments	21,101		0		0		21,101		21,101
Cash and cash equivalents	474,415		0		0		474,415		474,415
Accrued investment income	0		466,394		0		466,394		466,394
Reinsurance recoverables and deposit receivables	0		0		2,355,489		2,355,489		2,357,292
Receivables from parent and affiliates	0		157,566		0		157,566		157,566
Other assets	0		203,493		0		203,493		203,493
Total assets	$	495,516	$	827,453	$	11,431,878	$	12,754,847	$	12,981,064
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	815,520	$	9,995,841	$	10,811,361	$	10,826,931

Cash collateral for loaned securities	0		121,372		0		121,372		121,372


Reinsurance and funds withheld payables	0		2,602,140		0		2,602,140		2,602,140
Payables to parent and affiliates	0		38,571		0		38,571		38,571
Other liabilities	0		849,278		31,606		880,884		880,884
Total liabilities	$	0	$	4,426,881	$	10,027,447	$	14,454,328	$	14,469,898

(1)Carrying values presented herein differ from those in the Company’s Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details