Segment Information

6 Months Ended

Jun. 30, 2025

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Segments

The Company has nine geographic-based and business-based operational segments including a Corporate and Other segment. Geographic-based operations are further segmented into traditional and financial solutions businesses. The Company’s geographic based segments are U.S. and Latin America, Canada, Europe Middle East and Africa, and Asia Pacific.

Traditional reinsurance includes individual and group life and health, disability, long-term care and critical illness reinsurance. Financial Solutions includes asset-intensive reinsurance, longevity reinsurance, stable value products, pension risk transfer transactions and capital solutions products.

The Corporate and Other revenues primarily include investment income from unallocated invested assets and service fees. Corporate and Other expenses consist of the offset to capital charges allocated to the operating segments within the policy acquisition costs and other insurance income line item, unallocated corporate overhead and executive costs, interest expense related to debt and service business expenses. Additionally, Corporate and Other includes results from the Company’s Funding Agreement Backed Notes (“FABN”) issued prior to January 1, 2025. Effective January 1, 2025, newly issued FABNs are included in the U.S. Financial Solutions segment.

Segment Accounting Policies

The accounting policies of the segments are the same as those described in Note 2 – “Significant Accounting Policies and Pronouncements” in the Notes to Consolidated Financial Statements in the Company’s 2024 Annual Report.

The Company allocates capital to its segments based on an internally developed economic capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model considers the unique and specific nature of the risks inherent in the Company’s businesses. As a result of the economic capital allocation process, a portion of investment income is attributed to the segments based on the level of allocated capital. In addition, the segments are charged for excess capital utilized above the allocated economic capital basis. This charge is included in policy acquisition costs and other insurance expenses.

There are no intersegment reinsurance transactions or revenues, and the Company does not have any material long-lived assets.

No individual client generated 10% or more of the Company’s total gross premiums and other revenues on a consolidated basis for the six months ended June 30, 2025 and 2024. For the purpose of this disclosure, companies that are within the same insurance holding company structure are combined.

Financial Measures

The Company segment measure of profit or loss is adjusted operating income (loss) before income taxes. Adjusted operating income before income taxes does not equate to “Income (loss) before income taxes” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company’s chief operating decision maker to evaluate segment performance and allocate resources and, consistent with authoritative guidance, is the measure of segment performance presented below. Adjusted operating income (loss) before income taxes is calculated as income before income taxes excluding, as applicable:

•Substantially all of the effect of net investment related gains and losses;

•Changes in the fair value of embedded derivatives;

•Changes in the fair value of contracts that provide market risk benefits;

•Non-economic losses at contract inception for direct pension risk transfer single premium business (which are amortized into adjusted operating income within adjusted claims and other policy benefits over the estimated lives of the contracts);

•Any net gain or loss from discontinued operations;

•The cumulative effect of any accounting changes;

•The impact of certain tax related items; and

•Any other items that the Company believes are not indicative of the Company’s ongoing operations.

The Company’s significant expenses are (1) adjusted claims and other policy benefits which exclude the non-economic losses at contract inception for direct pension risk transfer single premium business, (2) future policy benefits remeasurement gains and losses, (3) adjusted interest credited, which excludes the change in fair value of embedded derivatives associated with indexed products and (4) interest expense.

The Company’s Chief Operating Decision Maker (“CODM”) is the President and Chief Executive Officer (“CEO”). The CEO uses segment adjusted operating income before income taxes to allocate resources (including employees and financial and capital resources) for each segment including consideration of future performance. The CEO considers performance on a monthly basis for segment adjusted operating income before income taxes when making decisions about allocating capital, personnel, evaluating market opportunities and future growth. The CEO also uses segment adjusted operating income before income taxes to assess the performance for each segment and for evaluating compensation of certain employees.

The Company does not report total assets by segment, as this metric is not used by the CODM to allocate resources or evaluate segment performance.

The following tables summarize the Company’s reportable segment revenues, significant expenses, measure of profit and loss and reconciliations to the Company’s consolidated totals (dollars in millions):

For the three months ended June 30, 2025:
	U.S. and Latin America				Canada				Europe, Middle East and Africa				Asia Pacific				Corporate and Other		Total
	Traditional		Financial Solutions		Traditional		Financial Solutions		Traditional		Financial Solutions		Traditional		Financial Solutions
Segment revenues	$	2,320	$	419	$	406	$	108	$	608	$	367	$	889	$	374	$	187	$	5,678
Reconciliation of revenues:
Investment and derivative gains (losses)																			(77)
Change in fair value of funds withheld embedded derivatives																			3
Funds withheld gains (losses) – investment income																			2
Other revenues (1)																			(7)
Total consolidated revenues																			$	5,599
Less significant expenses (2):
Adjusted claims and other policy benefits	1,922		76		318		93		533		224		701		158		—
Future policy benefits remeasurement (gains) losses	74		(1)		2		—		6		(3)		(8)		(2)		—
Adjusted interest credited	37		130		—		—		—		7		—		93		45
Interest expense	—		—		—		—		—		—		—		—		90
Other expenses (3)	283		117		58		6		51		23		92		48		84
Adjusted operating income (loss) before income taxes	$	4	$	97	$	28	$	9	$	18	$	116	$	104	$	77	$	(32)	$	421
Reconciliation of adjusted operating income (loss) before income taxes
Investment and derivative gains (losses)																			(77)
Market risk benefits remeasurement gains (losses)																			17
Change in fair value of funds withheld embedded derivatives																			3
Funds withheld gains (losses) – investment income																			2
Derivatives – interest credited																			(2)
Investment income (loss) on unit-linked variable annuities																			—
Interest credited on unit-linked variable annuities																			—
Interest expense on uncertain tax positions																			—
Other reconciling items (4)																			(23)
Income before income taxes per condensed consolidated statements of income																			$	341

(1)Includes market valuation adjustments on surrender charges and other immaterial items.

(2)The significant expense categories and amounts align with the segment level information that is regularly provided to the CEO. Intersegment expenses are included within the amounts above.

(3)Includes policy acquisition costs and other insurance expenses and other operating expenses.

(4)Includes market valuation adjustments on surrender charges, pension risk transfer initial loss and other immaterial items.

For the six months ended June 30, 2025:
	U.S. and Latin America				Canada				Europe, Middle East and Africa				Asia Pacific				Corporate and Other		Total
	Traditional		Financial Solutions		Traditional		Financial Solutions		Traditional		Financial Solutions		Traditional		Financial Solutions
Segment revenues	$	4,511	$	915	$	790	$	215	$	1,180	$	649	$	1,739	$	695	$	324	$	11,018
Reconciliation of revenues:
Investment and derivative gains (losses)																			(148)
Change in fair value of funds withheld embedded derivatives																			(8)
Funds withheld gains (losses) – investment income																			2
Other revenues (1)																			(5)
Total consolidated revenues																			$	10,859
Less significant expenses (2):
Adjusted claims and other policy benefits	3,695		276		613		184		1,016		391		1,372		303		—
Future policy benefits remeasurement (gains) losses	49		(3)		5		—		(2)		(6)		(26)		(5)		—
Adjusted interest credited	66		253		—		—		—		13		—		177		92
Interest expense	—		—		—		—		—		—		—		—		170
Other expenses (3)	557		225		112		11		98		45		183		84		164
Adjusted operating income (loss) before income taxes	$	144	$	164	$	60	$	20	$	68	$	206	$	210	$	136	$	(102)	$	906
Reconciliation of adjusted operating income (loss) before income taxes
Investment and derivative gains (losses)																			(148)
Market risk benefits remeasurement gains (losses)																			(12)
Change in fair value of funds withheld embedded derivatives																			(8)
Funds withheld gains (losses) – investment income																			2
Derivatives – interest credited																			(12)
Other reconciling items (4)																			(18)
Income before income taxes per condensed consolidated statements of income																			$	710

(1)Includes market valuation adjustments on surrender charges and other immaterial items.

(2)The significant expense categories and amounts align with the segment level information that is regularly provided to the CEO. Intersegment expenses are included within the amounts above.

(3)Includes policy acquisition costs and other insurance expenses and other operating expenses.

(4)Includes market valuation adjustments on surrender charges, pension risk transfer initial loss and other immaterial items.

For the three months ended June 30, 2024:
	U.S. and Latin America				Canada				Europe, Middle East and Africa				Asia Pacific				Corporate and Other		Total
	Traditional		Financial Solutions		Traditional		Financial Solutions		Traditional		Financial Solutions		Traditional		Financial Solutions
Segment revenues	$	2,037	$	677	$	390	$	102	$	524	$	247	$	778	$	231	$	133	$	5,119
Reconciliation of revenues:
Investment and derivative gains (losses)																			(308)
Change in fair value of funds withheld embedded derivatives																			26
Funds withheld gains (losses) – investment income																			—
Investment income (loss) on unit-linked variable annuities																			(1)
Other revenues (1)																			42
Total consolidated revenues																			$	4,878
Less significant expenses (2):
Adjusted claims and other policy benefits	1,676		367		304		89		464		133		607		74		—
Future policy benefits remeasurement (gains) losses	(66)		(3)		1		—		6		2		(29)		(1)		—
Adjusted interest credited	19		126		—		—		—		9		—		49		35
Interest expense	—		—		—		—		—		—		—		—		1
Other expenses (3)	241		107		59		6		55		17		101		38		141
Adjusted operating income (loss) before income taxes	$	167	$	80	$	26	$	7	$	(1)	$	86	$	99	$	71	$	(44)	$	491
Reconciliation of adjusted operating income (loss) before income taxes
Investment and derivative gains (losses)																			(308)
Market risk benefits remeasurement gains (losses)																			8
Change in fair value of funds withheld embedded derivatives																			26
Funds withheld gains (losses) – investment income																			—
Derivatives – interest credited																			6
Investment income (loss) on unit-linked variable annuities																			(1)
Interest credited on unit-linked variable annuities																			1
Interest expense on uncertain tax positions																			1
Other reconciling items (4)																			45
Income before income taxes per condensed consolidated statements of income																			$	269

(1)Includes market valuation adjustments on surrender charges and other immaterial items.

(2)The significant expense categories and amounts align with the segment level information that is regularly provided to the CEO. Intersegment expenses are included within the amounts above.

(3)Includes policy acquisition costs and other insurance expenses and other operating expenses.

(4)Includes market valuation adjustments on surrender charges, pension risk transfer initial loss and other immaterial items.

For the six months ended June 30, 2024:
	U.S. and Latin America				Canada				Europe, Middle East and Africa				Asia Pacific				Corporate and Other		Total
	Traditional		Financial Solutions		Traditional		Financial Solutions		Traditional		Financial Solutions		Traditional		Financial Solutions
Segment revenues	$	3,963	$	2,958	$	775	$	129	$	1,049	$	472	$	1,569	$	420	$	255	$	11,590
Reconciliation of revenues:
Investment and derivative gains (losses)																			(540)
Change in fair value of funds withheld embedded derivatives																			103
Funds withheld gains (losses) – investment income																			2
Investment income (loss) on unit-linked variable annuities																			(2)
Other revenues (1)																			62
Total consolidated revenues																			$	11,215
Less significant expenses (2):
Adjusted claims and other policy benefits	3,248		2,323		587		108		888		255		1,193		121		—
Future policy benefits remeasurement (gains) losses	(87)		(1)		(2)		—		1		4		(28)		(1)		—
Adjusted interest credited	38		261		—		—		—		16		—		100		65
Interest expense	—		—		—		—		—		—		—		—		139
Other expenses (3)	469		205		118		7		123		34		196		70		133
Adjusted operating income (loss) before income taxes	$	295	$	170	$	72	$	14	$	37	$	163	$	208	$	130	$	(82)	$	1,007
Reconciliation of adjusted operating income (loss) before income taxes
Investment and derivative gains (losses)																			(540)
Market risk benefits remeasurement gains (losses)																			43
Change in fair value of funds withheld embedded derivatives																			103
Funds withheld gains (losses) – investment income																			2
Derivatives – interest credited																			(7)
Investment income (loss) on unit-linked variable annuities																			(2)
Interest credited on unit-linked variable annuities																			2
Interest expense on uncertain tax positions																			1
Other reconciling items (4)																			(68)
Income before income taxes per condensed consolidated statements of income																			$	541

(1)Includes market valuation adjustments on surrender charges and other immaterial items.

(2)The significant expense categories and amounts align with the segment level information that is regularly provided to the CEO. Intersegment expenses are included within the amounts above.

(3)Includes policy acquisition costs and other insurance expenses and other operating expenses.

(4)Includes market valuation adjustments on surrender charges, pension risk transfer initial loss and other immaterial items.