angpd-20260331

Please wait

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number: 001-31911

American National Group Inc.

(Exact name of Registrant as specified in its charter)


Delaware						42-1447959
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One Moody Plaza

Galveston, Texas 77550

(Address of principal executive offices, including zip code)

(888) 221-1234

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Depositary Shares, each representing a 1/1,000th interest in a share of 7.375% Fixed-Rate Non-Cumulative Preferred Stock, Series D

ANGpD

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 13, 2026, 10,000 shares of our common shares were outstanding, all of which are held by Brookfield Wealth Solutions Ltd. and its affiliates.

American National Group Inc. meets the conditions set forth in General Instruction (H)(1)(a) and (b) for Form 10-Q and therefore is filing this Form 10-Q in the reduced disclosure format.

TABLE OF CONTENTS


			Page
PART I - FINANCIAL INFORMATION
Item 1: Financial Statements (unaudited):
Condensed Consolidated Statements of Financial Position (unaudited)			2
Condensed Consolidated Statements of Operations (unaudited)			4
Condensed Consolidated Statements of Comprehensive Income (unaudited)			5
Condensed Consolidated Statements of Changes in Equity (unaudited)			6
Condensed Consolidated Statements of Cash Flows (unaudited)			7
Notes to Condensed Consolidated Financial Statements (unaudited)			9
Note 1. Organization and Description of the Company			9
Note 2. Summary of Significant Accounting Policies			9
Note 3. Available-For-Sale Fixed Maturity Securities			10
Note 4. Equity Securities			13
Note 5. Mortgage Loans on Real Estate			14
Note 6. Private Loans			16
Note 7. Real Estate and Real Estate Partnerships			16
Note 8. Variable Interest Entities and Equity Method Investments			17
Note 9. Derivative Instruments			18
Note 10. Net Investment Income and Investment Related Gains (Losses)			23
Note 11. Fair Value of Financial Instruments			24
Note 12. Reinsurance			33
Note 13. Separate Account Assets and Liabilities			34
Note 14. Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired			35
Note 15. Intangible Assets			36
Note 16. Future Policy Benefits			37
Note 17. Policyholders' Account Balances			40
Note 18. Market Risk Benefits			42
Note 19. Long Term Borrowings			43
Note 20. Income Taxes			43
Note 21. Stockholders' Equity			43
Note 22. Accumulated Other Comprehensive Income			44
Note 23. Related Party Transactions			44
Note 24. Segment Reporting			45
Note 25. Financial Commitments and Contingencies			47
Note 26. Discontinued Operations			48
Note 27. Subsequent Events			48
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations			49
Item 3: Quantitative and Qualitative Disclosures about Market Risk			58
Item 4: Controls and Procedures			60

PART II - OTHER INFORMATION
Item 1: Legal Proceedings			60
Item 1A: Risk Factors			60
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds			60
Item 3: Defaults Upon Senior Securities			60
Item 4: Mine Safety Disclosures			60
Item 5: Other Information			60
Item 6: Exhibits			61

Signatures			62

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements


AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Dollars in millions, except share and per share data)

(Unaudited)

	March 31, 2026		December 31, 2025
Assets
Investments:
Available-for-sale fixed maturity securities, at fair value (net of allowance for credit losses of $4 and $3, respectively; amortized cost of $60,901 and $56,854, respectively)	$	61,180	$	57,992
Equity securities, at fair value	1,128		1,179
Mortgage loans on real estate, at amortized cost (net of allowance for credit losses of $97 and $100, respectively)	10,920		11,113
Private loans, at amortized cost (net of allowance for credit loss of $147 and $149, respectively)	8,405		8,926
Real estate and real estate partnerships (net of accumulated depreciation of $212 and $228, respectively)	5,786		5,800

Investment funds	3,539		3,187
Policy loans	243		234
Short-term investments, at estimated fair value	683		600
Other invested assets	1,676		1,485
Total investments	93,560		90,516

Cash and cash equivalents	8,934		11,660
Accrued investment income	805		799
Deferred policy acquisition costs, deferred sales inducements and value of business acquired	11,615		11,513



Deferred tax asset	446		460
Reinsurance recoverables and deposit assets	9,092		9,255
Property and equipment (net of accumulated depreciation of $361 and $352, respectively)	157		161
Intangible assets (net of accumulated amortization of $173 and $154, respectively)	1,483		1,501
Goodwill	748		748
Other assets	2,786		2,822
Separate account assets	780		822

Total assets	$	130,406	$	130,257


AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Dollars in millions, except share and per share data)

(Unaudited)

	March 31, 2026		December 31, 2025
Liabilities
Future policy benefits	$	10,784	$	10,962
Policyholders’ account balances	94,081		92,992
Policy and contract claims	328		410

Market risk benefits	4,501		4,536

Due to related parties	109		103
Other policyholder funds	351		353
Notes payable	206		205

Long term borrowings	2,954		2,951
Funds withheld for reinsurance liabilities	2,969		3,088
Other liabilities	3,947		4,166
Separate account liabilities	780		822

Total liabilities	121,010		120,588

Commitments and Contingencies (Note 25)

Equity


Preferred stock, Series D; par value $1 per share; $25,000 per share liquidation preference; 12,000 shares authorized; issued and outstanding: 2026 - 12,000 shares 2025 - 12,000 shares	292		292
Additional paid-in capital	6,467		6,404
Accumulated other comprehensive income, net of taxes	711		1,094
Retained earnings	1,756		1,759
Non-controlling interests	170		120
Total equity	9,396		9,669
Total liabilities and equity	$	130,406	$	130,257

See accompanying notes to the unaudited condensed consolidated financial statements.

AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in millions)

(Unaudited)


	Three Months Ended March 31,
		2026		2025

Net premiums		$	145	$	458
Other policy revenue		162		149
Net investment income		1,289		1,251
Investment related gains (losses)		(30)		3

Other income		34		28
Total revenues		1,600		1,889

Policyholder benefits and claims incurred		231		602
Interest sensitive contract benefits		545		512
Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired		272		238
Change in fair value of insurance-related derivatives and embedded derivatives		138		199
Change in fair value of market risk benefits		139		361

Operating expenses		206		224
Interest expense		49		44
Total benefits and expenses		1,580		2,180
Net income (loss) before income taxes		20		(291)
Income tax expense (benefit)		17		(62)
Income (loss) from continuing operations		3		(229)
Income from discontinuing operations, net of tax		—		26
Net income (loss)		3		(203)
Less: Net income from continuing operations attributable to noncontrolling interests, net of tax		4		3

Net loss attributable to American National Group Inc. stockholders		(1)		(206)
Less: Preferred stock dividends and redemption		6		30
Net loss attributable to American National Group Inc. common stockholder		$	(7)	$	(236)

See accompanying notes to the unaudited condensed consolidated financial statements.

AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in millions)

(Unaudited)


	Three Months Ended March 31,
		2026		2025
Net income (loss)		$	3	$	(203)
Other comprehensive income (loss), net of tax:
Change in net unrealized investment gains		(667)		307
Change in discount rate for future policy benefits		144		(23)
Change in instrument-specific credit risk for market risk benefits		143		49
Defined benefit pension plan adjustment		(3)		(3)
Total other comprehensive income (loss)		(383)		330
Comprehensive income (loss)		(380)		127
Less: Comprehensive income attributable to noncontrolling interests		4		3
Comprehensive income (loss) attributable to American National Group Inc. stockholders		$	(384)	$	124

See accompanying notes to the unaudited condensed consolidated financial statements.

AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Dollars in millions)

(Unaudited)






























	Preferred Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income		Retained Earnings		Noncontrolling Interest		Total Equity
For the three months ended March 31, 2026
Balance at December 31, 2025	$	292	$	6,404	$	1,094	$	1,759	$	120	$	9,669
Net income (loss) for period	—		—		—		(1)		4		3
Other comprehensive loss	—		—		(383)		—		—		(383)
Contributions from (distributions to) shareholders, net of tax	—		44		—		—		—		44
Consolidations (deconsolidations) of noncontrolling interests	—		—		—		—		52		52
Contributions from (distributions to) noncontrolling interests	—		—		—		—		(6)		(6)
Dividends	—		—		—		(6)		—		(6)


Other	—		19		—		4		—		23
Balance at March 31, 2026	$	292	$	6,467	$	711	$	1,756	$	170	$	9,396

	Preferred Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income		Retained Earnings		Noncontrolling Interest		Total Equity
For the three months ended March 31, 2025
Balance at December 31, 2024	$	685	$	7,569	$	340	$	1,356	$	78	$	10,028
Net income (loss) for period	—		—		—		(206)		3		(203)
Other comprehensive income	—		—		330		—		—		330


Contributions from (distributions to) noncontrolling interests	—		—		—		—		2		2
Dividends	—		—		—		(19)		—		(19)
Preferred stock issuance	292		—		—		—		—		292
Preferred stock redemption	(389)		—		—		(11)		—		(400)
Other	—		2		—		13		—		15
Balance at March 31, 2025	$	588	$	7,571	$	670	$	1,133	$	83	$	10,045

See accompanying notes to the unaudited condensed consolidated financial statements.

AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)

(Unaudited)


	Three Months Ended March 31,
	2026		2025

Operating activities:
Net income (loss)	$	3	$	(203)
Less: Net income from discontinued operations	—		(26)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Other policy revenue	(162)		(149)
Accretion on investments	(138)		(203)
Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired	272		238
Deferral of policy acquisition costs	(240)		(254)
Gains on investments and derivatives	434		300
Other losses (gains)	5		(12)
Provisions for credit losses	1		—
Income from real estate partnerships, investment funds and corporations	(72)		(82)
Distributions from real estate partnerships, investment funds and corporations	31		131
Interest credited to policyholders' account balances	545		512
Change in fair value of embedded derivatives	(297)		(134)
Depreciation and amortization	41		51
Deferred income taxes	13		(52)
Changes in operating assets and liabilities:
Insurance-related liabilities	50		653

Funds withheld for reinsurance liabilities	(80)		(84)
Reinsurance recoverables and deposit assets	166		302
Accrued investment income	(6)		(4)
Working capital and other	133		(275)
Cash used by operating activities - discontinued operations	—		(37)
Cash flows provided by operating activities	699		672

Investing activities:


Purchase of investments:
Available-for-sale fixed maturity securities	(4,696)		(2,592)
Equity securities	(1)		—
Mortgage loans on real estate	(337)		(304)
Private loans	(286)		(631)
Investment real estate and real estate partnerships	(118)		(39)
Investment funds	(434)		(161)

Short-term investments	(526)		(7,448)
Other invested assets	(107)		(20)
Proceeds from sales and maturities of investments:
Available-for-sale fixed maturity securities	910		1,208
Equity securities	4		1
Mortgage loans on real estate	542		783
Private loans	685		165
Investment real estate and real estate partnerships	179		36

Investment funds	96		—
Short-term investments	415		3,583
Other invested assets	75		18
Purchases of derivatives	(272)		(213)
Proceeds from sales and maturities of derivatives	293		308

AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Dollars in millions)

(Unaudited)


	Three Months Ended March 31,
	2026		2025

Purchase of intangibles and property and equipment	(11)		(5)




Change in collateral held for derivatives	(719)		(575)
Other	(6)		66
Cash from investing activities - discontinued operations	—		72
Cash flows used in investing activities	(4,314)		(5,748)

Financing activities:

Issuance of preferred equity	—		292
Redemption of preferred equity	—		(400)
Dividends paid to stockholders	(6)		(19)




Borrowings from related parties	8		195
Repayment of borrowings to related parties	(13)		(14)
Borrowings from external parties	1		—

Borrowings issued to reinsurance entities	—		6
Repayment of borrowings issued to reinsurance entities	—		(6)
Policyholders’ account deposits	3,687		3,514
Policyholders’ account withdrawals	(2,796)		(2,301)



Issuance of equity, noncontrolling interests	6		1
Distributions to noncontrolling interests	2		(3)
Cash flows provided by financing activities	889		1,265

Cash and cash equivalents
Cash and cash equivalents, beginning of period	11,660		11,330
Net change during the period	(2,726)		(3,811)

Cash and cash equivalents, end of period	8,934		7,519
Less: Cash and cash equivalents of discontinued operations	—		496
Cash and cash equivalents, end of period	$	8,934	$	7,023

Supplementary cash flow disclosure:
Cash taxes paid (net of refunds received)	$	(55)	$	(38)
Cash interest paid	26		20

See accompanying notes to the unaudited condensed consolidated financial statements.

AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(Unaudited)

1. Organization and Description of the Company

American National Group Inc., together with its subsidiaries (collectively, “ANGI”, “we”, “our”, “us”, or the “Company”) is focused on securing the financial futures of individuals and institutions through a range of insurance and retirement services. Our business is presently conducted through our subsidiaries under two operating segments, which we refer to as our Annuities and Life Insurance segments. We conduct our business in 50 states, the District of Columbia, Bermuda, Guam, and Puerto Rico. ANGI is an indirect, wholly-owned subsidiary of Brookfield Wealth Solutions Ltd.

On October 1, 2025, the Company completed the transfer of all of its property and casualty subsidiaries, including American National Property And Casualty Company, United Farm Family Insurance Company and Farm Family Casualty Insurance Company and their wholly-owned subsidiaries (collectively, the “P&C Subsidiaries”) to Argo Group International Holdings, Inc., which was subsequently renamed to Clearbrook Group Holdings Inc. (“Clearbrook”). Clearbrook and the Company are both wholly-owned subsidiaries of Brookfield Wealth Solutions Ltd. Amounts in the financial statements and notes thereto have been retrospectively adjusted and reported as discontinued operations. Refer to Note 26 - Discontinued Operations in the notes to the condensed consolidated financial statements for more information.

2. Summary of Significant Accounting Policies

The unaudited condensed consolidated financial statements and notes thereto, including all prior periods presented, have been prepared under accounting principles generally accepted in the United States of America (“GAAP”). The financial statements are prepared on a going concern basis and have been presented in U.S. dollars (“USD”) rounded to the nearest million unless otherwise indicated. The financial statements should be read in conjunction with the December 31, 2025 audited consolidated financial statements of the Company included in the Form 10-K, filed with the SEC on March 30, 2026. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results for any subsequent period or the entire fiscal year ending December 31, 2026. These financial statements reflect all adjustments (consisting of normal recurring adjustments, including reclassifications) which are, in the opinion of management, necessary for a fair and comparable statement of results for the interim periods presented in accordance with GAAP.

The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Included among the material (or potentially material) reported amounts and disclosures that require the use of estimates are fair value of certain financial assets, future policy benefits (“FPB”), market risk benefits (“MRB”), valuation of embedded derivatives in policyholders’ account balances (“PAB”), and deferred income taxes, including the recoverability of deferred tax assets. Such estimates and assumptions are subject to inherent uncertainties, which may result in actual amounts differing from reported amounts.

Basis of Consolidation

These financial statements include the accounts of the Company and its consolidated subsidiaries, which are legal entities where the Company has a controlling financial interest by either holding a majority voting interest or as the primary beneficiary of the variable interest entity (“VIE”). Entities that are determined not to be VIEs are voting interest entities (“VOEs”), which are evaluated under the voting interest model, under which a controlling financial interest is established through a majority voting interest or through other means.

The consolidation assessment depends on the specific facts and circumstances for each entity and requires judgment. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Refer to Note 2 of the Company’s December 31, 2025 audited consolidated financial statements for a further description of the Company’s accounting policies regarding consolidation.

Adoption of New Accounting Pronouncements

In the current period, the Company did not adopt any Accounting Standard Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”) that was material in presentation or amount.

Recently Issued Accounting Pronouncements

The Company continues to assess the impacts on the financial statements of the following ASUs issued but not yet adopted as of March 31, 2026. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount.

ASU 2024-03 – On November 4, 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this ASU require public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. This ASU will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, to be applied on either a retrospective or prospective basis subject to certain exceptions, with early adoption permitted. We are currently evaluating the impact of this ASU on our financial statements. However, as they apply to disclosure requirements, the adoption of this ASU is not anticipated to have a material impact on our profitability, financial position or cash flows.

ASU 2025-06 – On September 18, 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Improvements to Accounting for Internal-Use Software. The amendments in this ASU aim to simplify and modernize the guidance for internal-use software costs by removing stage-based development references and introducing a principle-based approach for capitalization criteria. Among other things, it clarifies when costs should be capitalized versus expensed, eliminates certain terminology, and aligns the guidance more closely with current software development practices. This ASU will be effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, and should be applied prospectively, with early adoption permitted. Entities may also elect retrospective application or a modified retrospective application. The Company is currently assessing the potential impact of adopting this standard on its consolidated financial statements and related disclosures.

3. Available-For-Sale Fixed Maturity Securities

The total amortized cost, fair value, allowance for credit losses, and gross unrealized gains and losses of available-for-sale fixed maturity securities are shown below:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
	(Dollars in millions)
March 31, 2026
U.S. treasury and government	$	67	$	—	$	—	$	—	$	67
U.S. state and municipal	2,854		84		(24)		(4)		2,910
Foreign governments	3,276		18		(23)		—		3,271
Corporate debt securities	44,201		553		(429)		—		44,325
Residential mortgage-backed securities	922		40		(3)		—		959
Commercial mortgage-backed securities	2,999		77		(35)		—		3,041
Collateralized debt securities	6,582		89		(64)		—		6,607
Total fixed maturity securities	$	60,901	$	861	$	(578)	$	(4)	$	61,180

December 31, 2025
U.S. treasury and government	$	68	$	—	$	—	$	—	$	68
U.S. state and municipal	2,866		105		(19)		(3)		2,949
Foreign governments	1,118		51		—		—		1,169
Corporate debt securities	42,310		974		(143)		—		43,141
Residential mortgage-backed securities	966		44		(2)		—		1,008
Commercial mortgage-backed securities	3,051		101		(31)		—		3,121
Collateralized debt securities	6,475		108		(47)		—		6,536
Total fixed maturity securities	$	56,854	$	1,383	$	(242)	$	(3)	$	57,992

The amortized cost and fair value of available-for-sale fixed maturity securities at March 31, 2026, by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Residential mortgage-backed securities, commercial mortgage-backed securities and collateralized debt securities, which are not due at a single maturity, have been separately presented below.


	Available-For-Sale
	Amortized Cost		Fair Value
	(Dollars in millions)
Due in one year or less	$	1,790	$	1,786
Due after one year through five years	21,821		21,999
Due after five years through ten years	12,115		12,120
Due after ten years	14,672		14,668
	50,398		50,573
Residential mortgage-backed securities	922		959
Commercial mortgage-backed securities	2,999		3,041
Collateralized debt securities	6,582		6,607
Total	$	60,901	$	61,180

Proceeds from sales of available-for-sale fixed maturity securities, with the related gross realized gains and losses, are shown below:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Proceeds from sales of available-for-sale fixed maturity securities		$	910	$	1,208
Gross realized gains		15		1
Gross realized (losses)		(4)		(1)

The Company has pledged bonds in connection with certain agreements and transactions, such as financing and reinsurance agreements. The carrying value of bonds pledged was $10.4 billion and $10.4 billion as of March 31, 2026 and December 31, 2025, respectively.

In accordance with various regulations, the Company has securities on deposit with regulating authorities with a carrying value of $51 million and $52 million as of March 31, 2026 and December 31, 2025, respectively. There are no restrictions on these assets.

As of March 31, 2026 there were no amounts loaned under reverse repurchase agreements. As of December 31, 2025, amounts loaned under reverse repurchase agreements were $400 million and the fair value of the collateral, comprised of equity securities, was $872 million.

The gross unrealized losses and fair value of available-for-sale fixed maturity securities, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position due to market factors are shown below:


	Less than 12 months					12 months or more					Total
	Number of Issues	Gross Unrealized Losses (1)		Fair Value		Number of Issues	Gross Unrealized Losses (1)		Fair Value		Number of Issues	Gross Unrealized Losses (1)		Fair Value
	(Dollars in millions)
March 31, 2026
U.S. treasury and government	5	$	—	$	5	3	$	—	$	36	8	$	—	$	41
U.S. state and municipal	70	(9)		503		28	(15)		169		98	(24)		672
Foreign governments	27	(23)		2,625		2	—		11		29	(23)		2,636
Corporate debt securities	2,311	(333)		17,476		206	(96)		1,425		2,517	(429)		18,901
Residential mortgage-backed securities	32	(1)		99		18	(2)		88		50	(3)		187
Commercial mortgage-backed securities	71	(13)		592		24	(22)		171		95	(35)		763
Collateralized debt securities	139	(25)		1,324		24	(39)		312		163	(64)		1,636
Total	2,655	$	(404)	$	22,624	305	$	(174)	$	2,212	2,960	$	(578)	$	24,836

December 31, 2025
U.S. treasury and government	1	$	—	$	2	3	$	—	$	37	4	$	—	$	39
U.S. state and municipal	43	(5)		345		32	(14)		190		75	(19)		535
Foreign governments	6	—		148		2	—		12		8	—		160
Corporate debt securities	930	(74)		5,737		237	(69)		1,661		1,167	(143)		7,398
Residential mortgage-backed securities	22	—		64		16	(2)		95		38	(2)		159
Commercial mortgage-backed securities	29	(8)		196		29	(23)		290		58	(31)		486
Collateralized debt securities	62	(17)		577		17	(30)		225		79	(47)		802
Total	1,093	$	(104)	$	7,069	336	$	(138)	$	2,510	1,429	$	(242)	$	9,579

(1)Unrealized losses have been reduced to exclude the allowance for credit losses of $4 million and $3 million as of March 31, 2026 and December 31, 2025, respectively.

The unrealized losses at March 31, 2026 are principally related to the timing of the purchases of certain securities, which carry less yield than those available at March 31, 2026. Approximately 97% and 92% of the unrealized losses on fixed maturity securities shown in the above table for March 31, 2026 and December 31, 2025, respectively, are on securities that are rated investment grade, defined as being the highest two National Association of Insurance Commissioners (“NAIC”) designations.

The Company expects to recover the amortized cost on all securities except for those securities on which we recognized an allowance for credit loss. In addition, as the Company did not have the intent to sell fixed maturity securities with unrealized losses and it was not more likely than not that the Company would be required to sell these securities prior to recovery of the amortized cost, which may be maturity, the Company did not write down these investments to fair value through the Condensed Consolidated Statements of Operations.

Allowance for Credit Losses

Several assumptions and underlying estimates are made in the evaluation of allowance for credit loss. Examples include financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends and implications of rating agency actions and offering prices. Based on this evaluation, unrealized losses on available-for-sale securities where an allowance for credit loss was not recorded were concentrated within the financials sector as of March 31, 2026 and December 31, 2025.

The rollforward of the allowance for credit losses for available-for-sale fixed maturity securities is shown below:




























	Three Months Ended March 31, 2026
	U.S. State and Political Subdivisions		Corporate Securities		Residential Mortgage Backed Securities		Collateralized Debt Securities		Total
	(Dollars in millions)
Beginning balance	$	(3)	$	—	$	—	$	—	$	(3)




Changes in previously recorded allowance	(1)		—		—		—		(1)


Balance as of March 31, 2026	$	(4)	$	—	$	—	$	—	$	(4)

	Three Months Ended March 31, 2025
	U.S. State and Political Subdivisions		Corporate Securities		Residential Mortgage Backed Securities		Collateralized Debt Securities		Total
	(Dollars in millions)
Beginning balance	$	—	$	(24)	$	(1)	$	—	$	(25)

Credit losses recognized on securities for which credit losses were not previously recorded	—		(6)		—		(1)		(7)
Reductions for securities sold during the period	—		16		—		—		16

Changes in previously recorded allowance	—		7		—		—		7


Balance as of March 31, 2025	$	—	$	(7)	$	(1)	$	(1)	$	(9)

4. Equity Securities

The net gains (losses) on equity securities recognized in “Investment related gains (losses)” on the Condensed Consolidated Statements of Operations are shown below:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Unrealized gains (losses) on equity securities		$	(52)	$	4
Net gains on equity securities sold		—		2
Net gains (losses) on equity securities		$	(52)	$	6

Equity securities by market sector distribution are shown below, based on carrying value:


	March 31, 2026		December 31, 2025

Education	23	%	21	%
Energy and utilities	7	%	6	%
Finance	5	%	49	%
Healthcare	4	%	4	%
Industrials	49	%	9	%
Information technology	8	%	7	%
Other	4	%	4	%
Total	100	%	100	%

5. Mortgage Loans on Real Estate

The Company disaggregates its mortgage loan investments into two portfolio segments: commercial and residential. Commercial mortgage loans include agricultural mortgage loans. The breakdown of mortgage loans on real estate by portfolio segment is as follows:


	March 31, 2026		December 31, 2025
	(Dollars in millions)
Commercial mortgage loans	$	8,549	$	8,800
Residential mortgage loans	2,468		2,413
Total	11,017		11,213
Allowance for credit losses	(97)		(100)
Total, net of allowance	$	10,920	$	11,113

The Company’s commercial mortgage loan portfolio consists of loans collateralized by the related properties and diversified as to property type, location and loan size. The geographic categories come from the U.S. Census Bureau’s “Census Regions and Divisions of the United States”. The commercial mortgage loan portfolio is summarized by geographic region and property type as follows:


	March 31, 2026				December 31, 2025
	Amount		Percentage		Amount		Percentage
	(Dollars in millions)
Geographic distribution
Pacific	$	2,235	26	%	$	2,230	25	%
Mountain	1,349		16	%	1,400		16	%
West North Central	231		3	%	232		3	%
West South Central	1,204		14	%	1,173		13	%
East North Central	699		8	%	800		9	%
East South Central	134		1	%	135		2	%
Middle Atlantic	588		7	%	658		7	%
South Atlantic	1,797		21	%	1,805		20	%
New England	139		2	%	140		2	%
Other (multi-region, non-US)	173		2	%	227		3	%
	8,549		100	%	8,800		100	%
Allowance for credit losses	(79)				(87)
Total, net of allowance	$	8,470			$	8,713

Property type distribution
Agricultural	$	341	4	%	$	349	4	%
Apartment	2,271		27	%	2,346		27	%
Hotel	879		10	%	967		11	%
Industrial	1,794		21	%	1,797		21	%
Office	1,433		17	%	1,435		16	%
Parking	198		2	%	207		2	%
Retail	1,326		16	%	1,352		15	%
Storage	113		1	%	114		1	%
Other	194		2	%	233		3	%
	8,549		100	%	8,800		100	%
Allowance for credit losses	(79)				(87)
Total, net of allowance	$	8,470			$	8,713

There was no interest income recognized on loans in non-accrual status for the three months ended March 31, 2026 and 2025, respectively. Impaired loans were not significant for any of the periods presented.

Allowance for Credit Losses

The Company establishes a valuation allowance to provide for the risk of credit losses inherent in its mortgage loan portfolios. The valuation allowance is maintained at a level believed adequate by management to absorb estimated expected credit losses. The valuation allowance is based on amortized cost, which excludes accrued interest receivable. The Company does not measure a credit loss allowance on accrued interest receivable, and any uncollectible accrued interest receivable balances are written off to net investment income in a timely manner. The Company has written off $0 million and $2 million of uncollectible accrued interest receivable on its mortgage loan portfolios for the three months ended March 31, 2026 and 2025, respectively.

The rollforward of the allowance for credit losses for mortgage loans for the three months ended March 31, 2026 and 2025 is shown below:


	2026				2025
	Commercial Mortgage Loans		Residential Mortgage Loans		Commercial Mortgage Loans		Residential Mortgage Loans
	(Dollars in millions)
Balance, as of January 1	$	(87)	$	(13)	$	(144)	$	(9)

Provision	(4)		(6)		(1)		(1)
Writeoffs charged against the allowance	12		1		3		—

Balance, as of March 31	$	(79)	$	(18)	$	(142)	$	(10)

Credit Quality Indicators

Mortgage loans are segregated by property-type and quantitative and qualitative allowance factors are applied. Qualitative factors are developed quarterly based on the pooling of assets with similar risk characteristics and historical loss experience adjusted for the expected trend in the current market environment. Credit losses are pooled by property type as it represents the most similar and reliable risk characteristics in our portfolio. The amortized cost of mortgage loans by year of origination by aging category are shown below:


	Amortized Cost Basis by Origination Year
	2026		2025		2024		2023		2022		Prior		Total
As of March 31, 2026:	(Dollars in millions)
Commercial mortgage loans
Current	$	80	$	1,110	$	455	$	391	$	1,894	$	4,363	$	8,293
30 - 59 days past due	—		—		—		—		4		26		30
60 - 89 days past due	—		—		—		—		6		92		98
Non-accrual	—		14		—		—		9		105		128
Residential mortgage loans
Current	62		501		289		350		758		301		2,261
30 - 59 days past due	—		—		1		12		17		3		33
60 - 89 days past due	—		—		—		4		—		—		4
Non-accrual	—		3		11		74		63		19		170
Total mortgage loans on real estate	$	142	$	1,628	$	756	$	831	$	2,751	$	4,909	11,017
Allowance for credit losses													(97)
Total, net of allowance													$	10,920

	Amortized Cost Basis by Origination Year
	2025		2024		2023		2022		2021		Prior		Total
As of December 31, 2025:	(Dollars in millions)
Commercial mortgage loans
Current	$	1,093	$	354	$	442	$	1,929	$	978	$	3,647	$	8,443
30 - 59 days past due	—		83		—		94		—		—		177
60 - 89 days past due	—		—		29		10		—		2		41
Non-accrual	—		—		—		9		33		97		139
Residential mortgage loans
Current	376		300		390		764		182		114		2,126
30 - 59 days past due	3		9		18		34		11		5		80
60 - 89 days past due	1		2		11		22		2		2		40
Non-accrual	1		4		76		66		10		10		167
Total mortgage loans on real estate	$	1,474	$	752	$	966	$	2,928	$	1,216	$	3,877	11,213
Allowance for credit losses													(100)
Total, net of allowance													$	11,113

It is the Company’s policy to not accrue interest on loans that are 90 days delinquent and where amounts are determined to be uncollectible. As of March 31, 2026 and December 31, 2025, 272 mortgage loans and 275 mortgage loans, respectively, were past due over 90 days or in nonaccrual status.

The Company’s commercial and residential mortgage loans may be subject to loan modifications. Loan modifications may be granted to borrowers experiencing financial difficulty and could include principal forgiveness, interest rate reduction, an other-than-significant delay or a term extension. A loan modification typically does not result in a change in valuation allowance as it is already incorporated into the Company’s allowance methodology. However, if the Company grants a borrower experiencing financial difficulty principal forgiveness, the amount of principal forgiven would be written off, which would reduce the amortized cost of the loan and result in an adjustment to the valuation allowance. The carrying amount of mortgage loans experiencing financial difficulty, for which modifications have been granted, was $0 million and $29 million for the three months ended March 31, 2026 and 2025, respectively.

6. Private Loans

The following table summarizes the credit ratings of our private loans:


	March 31, 2026		December 31, 2025
	(Dollars in millions)
A or higher	$	2,591	$	2,006
BBB	1,345		1,316
BB and below	2,526		2,587
Unrated (1)	1,943		3,017
Total	$	8,405	$	8,926

(1)Due to the nature of private loans, external agency credit ratings may not be readily available. Where appropriate, the Company obtains non-published credit ratings from one or more third-party rating agencies, which are determined based on an independent evaluation of the transaction. For other loans without published or private credit ratings, the Company assigns internal risk ratings, based on its investment selection and monitoring process and policies. These internal risk ratings are categorized as “Unrated” above.

Allowance for Credit Losses

The rollforward of the allowance for credit losses for private loans is shown below for the three months ended March 31, 2026 and 2025:


	2026		2025
	(Dollars in millions)
Balance at January 1	$	(149)	$	(63)

Provision	2		(11)


Balance at March 31	$	(147)	$	(74)

The Company’s private loans may be subject to loan modifications. Loan modifications may be granted to borrowers experiencing financial difficulties and could include term extensions. For the three months ended March 31, 2026 and 2025, the Company did not have a significant amount of private loans that it modified to borrowers experiencing financial difficulty. Impaired loans were not significant for any of the periods presented.

7. Real Estate and Real Estate Partnerships

The carrying amounts of real estate investments are as follows:


	March 31, 2026				December 31, 2025
	Real Estate				Real Estate
	Amount		Percentage		Amount		Percentage
	(Dollars in millions)				(Dollars in millions)
Hotel	$	177	6	%	$	178	6	%
Industrial	—		—	%	56		2	%
Land	941		33	%	807		28	%
Office	157		6	%	174		6	%
Retail	135		5	%	161		6	%
Apartments	46		2	%	46		2	%

Single family residential	1,304		46	%	1,311		46	%
Other	66		2	%	112		4	%
Total real estate	2,826		100	%	2,845		100	%
Real estate partnerships	2,960				2,955
Total real estate and real estate partnerships	$	5,786			$	5,800

As of March 31, 2026 and December 31, 2025, real estate investments of $64 million and $63 million, respectively, met the criteria as held-for-sale.

8. Variable Interest Entities and Equity Method Investments

Through our investment activities, we regularly invest in various entities including limited partnerships (“LPs”) and limited liability companies (“LLCs”) and frequently participate in the design with their sponsor, but in most cases, our involvement is limited to financing. Some of these investments have been determined to be VIEs. In certain instances, in addition to an economic interest in the entity, the Company holds the power to direct the most significant activities of the entity and is deemed the primary beneficiary. The Company consolidates all VIEs for which it is the primary beneficiary. The assets of consolidated VIEs are restricted and must first be used to settle their liabilities. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of the Company, as the Company’s obligation is limited to the amount of its committed investment. The Company has not provided financial or other support to these consolidated VIEs in the form of liquidity arrangements, guarantees or other commitments to third-parties that may affect the fair value or risk of its variable interest in these VIEs as of March 31, 2026 and December 31, 2025.

In addition to investment activities, certain of the Company’s subsidiaries are deemed VIEs. The Company is the primary beneficiary and consolidates these entities in the same manner as other entities in which the Company has a controlling financial interest by holding a majority voting interest.

Consolidated Variable Interest Entities

The assets and liabilities relating to the consolidated VIEs from our investment activities included in the financial statements are as follows:


	March 31, 2026		December 31, 2025
	(Dollars in millions)
Available-for-sale fixed maturity securities	$	233	$	74
Equity securities	647		693
Mortgage loans on real estate, net of allowance	227		248
Private loans, net of allowance	1,792		2,007
Investment real estate	2,688		2,660
Real estate partnerships	1,489		1,479
Investment funds	2,974		2,604
Short-term investments	—		2
Other invested assets	305		326
Cash and cash equivalents	342		293
Other assets	165		166
Total assets of consolidated VIEs	$	10,862	$	10,552

Notes payable	$	206	$	205
Other liabilities	718		733
Total liabilities of consolidated VIEs	$	924	$	938

Unconsolidated Variable Interest Entities

For certain of the Company’s investments in various entities that are determined to be VIEs, the Company is not the primary beneficiary. In some instances, a consolidated VIE involves one or more underlying entities for which the Company is not the primary beneficiary because it does not have the power to direct the most significant activities of these entities. These unconsolidated VIEs that are part of consolidated VIEs are reported primarily in “Real estate and real estate partnerships” on the Condensed Consolidated Statements of Financial Position. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of the Company, as the Company’s obligation is limited to the amount of its committed investment. The Company has not provided financial or other support to these unconsolidated VIEs in the form of liquidity arrangements, guarantees or other commitments to third-parties that may affect the fair value or risk of its variable interest in these VIEs as of March 31, 2026 and December 31, 2025.

The carrying amount and maximum exposure to loss relating to these unconsolidated VIEs are as follows:


	March 31, 2026				December 31, 2025
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
	(Dollars in millions)
Available-for-sale fixed maturity securities	$	3,851	$	4,247	$	2,829	$	3,137

Mortgage loans on real estate, net of allowance	537		537		562		562
Private loans, net of allowance	1,893		1,914		1,809		1,809

Real estate partnerships	2,607		2,611		2,681		2,685
Investment funds	3,289		5,473		2,182		3,470

Other invested assets	814		891		524		524

Total	$	12,991	$	15,673	$	10,587	$	12,187

Equity Method Investments

Our investments in investment funds, real estate partnerships, and other partnerships, of which substantially all are LLCs or LPs, are accounted for using the equity method of accounting, except for certain investments that are fair valued due to the application of fair value option under ASC 825 or the consolidation of investment company VIEs under ASC 946. Fair value of certain investments are estimated using NAV as a practical expedient.

The Company’s investments that would require the use of equity method accounting, absent the election of the fair value option under ASC 825, were $6.9 billion and $6.4 billion as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026 and December 31, 2025, these equity method investments are primarily composed of $2.9 billion and $2.9 billion of real estate partnerships and $3.1 billion and $3.0 billion of investment funds, respectively, within the Consolidated Statements of Financial Position.

The Company generally recognizes its share of earnings in its equity method investments within “Net investment income”. For the three months ended March 31, 2026 and 2025, net investment income for Real estate partnerships and Investment funds in Note 10 - Net Investment Income and Investment Related Gains (Losses) principally represent our share of earnings in our equity method investments, including fair value changes from investments under ASC 825.

9. Derivative Instruments

The Company manages risks associated with certain assets and liabilities by using derivative financial instruments. Derivative financial instruments are financial contracts whose value is derived from underlying interest rates, exchange rates or other financial instruments. The Company does not invest in derivatives for speculative purposes.

Foreign exchange forwards, cross currency and interest rate swaps, and equity-indexed options are over-the-counter contractual agreements negotiated between counterparties. The Company purchases equity-indexed options as economic hedges against fluctuations in the equity markets to which equity-indexed products are exposed. Equity-indexed contracts include a fixed host universal-life insurance or annuity contract and an equity-indexed embedded derivative. Foreign exchange forwards, cross currency swaps, and interest rate swaps are used to manage our exposure to foreign currency risk, interest rate risk or both.

The notional principal represents the amount to which a rate or price is applied to determine the cash flows to be exchanged periodically and does not represent credit exposure. Maximum credit risk is the estimated cost of replacing derivative financial instruments which have a positive value, should the counterparty default.

Derivatives, except for embedded derivatives, are included in “Other invested assets” or “Other liabilities”, at fair value in the Condensed Consolidated Statements of Financial Position. Embedded derivative liabilities on funds withheld and modified coinsurance (“Modco”) arrangements and embedded derivative liabilities on indexed annuity products are included in the Condensed Consolidated Statements of Financial Position within the “Reinsurance funds withheld” and “Policyholders’ account balances” lines respectively, at fair value.

The notional and fair values of derivative instruments, presented in the Condensed Consolidated Statements of Financial Position, are shown below:


	Primary Underlying Risk	Location in the Condensed Consolidated Statements of Financial Position	March 31, 2026						December 31, 2025
			Notional Amount		Carrying Value / Fair Value (1)				Notional Amount		Carrying Value / Fair Value (1)
					Assets		Liabilities				Assets		Liabilities
			(Dollars in millions)
Derivatives Designated as Hedging Instruments:


Foreign exchange forwards	Foreign currency	Other invested assets, Other liabilities	$	653	$	7	$	5	$	656	$	—	$	11


Interest rate swaps	Interest rate	Other invested assets, Other liabilities	2,306		12		13		1,797		12		—

Derivatives Not Designated as Hedging Instruments:
Equity-indexed options	Equity	Other invested assets, Other liabilities	46,973		1,087		—		46,883		1,570		—

Foreign exchange forwards	Foreign currency	Other invested assets, Other liabilities	2,787		33		5		3,218		4		24
Cross currency swaps	Foreign currency	Other invested assets, Other liabilities	896		5		22		949		35		14





Embedded Derivatives:
Indexed annuity products	Interest rate	Policyholders’ account balances	—		—		6,060		—		—		6,414
Funds withheld and Modco arrangements	Interest rate	Funds withheld for reinsurance liabilities	—		—		41		—		—		74
			$	53,615	$	1,144	$	6,146	$	53,503	$	1,621	$	6,537

(1)The asset and liability balances are presented on a gross basis. Amounts are reported as “Other invested assets” and “Other liabilities” in the Condensed Consolidated Statements of Financial Position after the evaluation for rights of offset. See “Derivative Exposure” section of this note for further details.

Derivatives Designated as Hedging Instruments

The Company has designated and accounted for certain foreign exchange forwards (“foreign currency derivatives”) as fair value hedges to protect a portion of the available-for-sale fixed maturity securities against changes in fair value due to changes in exchange rates. The Company has also designated and accounted for certain interest rate swaps (“interest rate derivatives”) as fair value hedges to convert a portion of PAB from a fixed rate liability to a floating rate liability.

For derivative financial instruments that were designated and qualified as fair value hedges, the gain or loss on the portion of the derivative instrument included in the assessment of hedge effectiveness and the offsetting gain or loss on the hedged item attributable to the hedged risk were recognized in the same line item in the Condensed Consolidated Statements of Operations. The unrealized gain or loss attributable to changes in exchange rates on the available-for-sale fixed maturity securities that were designated as part of the hedge were reclassified out of other comprehensive income (“OCI”) into “Investment related gains (losses)” in the Condensed Consolidated Statements of Operations. The remaining change in unrealized gain or loss on the hedged item not associated with the risk being hedged remained as a component of OCI. The gains (losses) on interest rate derivatives designated as hedging instruments for certain PAB are included in “Interest sensitive contract benefits” in the Condensed Consolidated Statements of Operations.

The following represents the amount of gains (losses) related to the derivatives and hedged items that qualify for fair value hedges:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Foreign currency derivatives:
Hedged items		$	(18)	$	27
Derivatives designated as hedging instruments		18		(27)
Interest rate derivatives:
Hedged items		13		10
Derivatives designated as hedging instruments		(13)		(10)
Gains (losses) on fair value hedges		$	—	$	—

The amortized cost of available-for-sale fixed maturity securities designated and qualifying as hedged items in fair value hedges in relation to foreign currency derivatives was $579 million and $593 million as of March 31, 2026 and December 31, 2025, respectively.

The following table presents the carrying amount and cumulative fair value hedging adjustments for a portion of PAB designated and qualifying as hedged items in fair value hedges in relation to interest rate derivatives:


	Carrying Amount of the Hedged Assets (Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedge Assets (Liabilities)
	March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025
	(Dollars in millions)
Location in the Condensed Consolidated Statements of Financial Position:

Policyholders’ account balances	$	(2,724)	$	(2,224)	$	3	$	(11)

Derivatives Not Designated as Hedging Instruments

The following represents the financial statement location and amount of gains (losses) related to derivatives not designated as hedging instruments:


	Location in the Condensed Consolidated Statements of Operations		Derivative Gains (Losses) Recognized in Income
		Three Months Ended March 31,
			2026		2025
			(Dollars in millions)
Equity-indexed options	Change in fair value of insurance-related derivatives and embedded derivatives		$	(436)	$	(334)

Foreign exchange forwards	Investment related gains (losses)		42		(65)
Cross currency swaps	Investment related gains (losses)		(38)		—





Embedded derivatives:
Indexed annuity products	Change in fair value of insurance-related derivatives and embedded derivatives		265		155
Funds withheld and Modco arrangements	Change in fair value of insurance-related derivatives and embedded derivatives		33		(20)
			$	(134)	$	(264)

Derivative Exposure

The Company’s use of derivative instruments exposes it to credit risk in the event of non-performance by counterparties. The Company has a policy of only dealing with counterparties it believes are creditworthy and obtaining sufficient collateral where appropriate, as a means of mitigating the financial loss from defaults. The minimum credit rating of our counterparties is A- as of March 31, 2026 and A- as of December 31, 2025, and all derivatives have been appropriately collateralized by the Company and the counterparties in accordance with the terms of the derivative agreements. The Company holds collateral in cash and notes secured by U.S. government-backed assets. The non-performance risk is the net counterparty exposure based on fair value of open contracts less fair value of collateral held. The Company maintains master netting agreements with its current active trading partners. A right of offset has been applied to collateral that supports credit risk and has been recorded in the Condensed Consolidated Statements of Financial Position as an offset to “Other invested assets” with an associated payable to “Other liabilities” for excess collateral. A right of offset has also been applied to derivative assets and liabilities with the same counterparty under the same master netting agreement, and such derivative instruments are presented on a net basis in the Condensed Consolidated Statements of Financial Position.

Information regarding the Company’s exposure to credit loss on the derivatives it holds, including the effect of rights of offset, is presented below:


			Gross Amounts Offset in the Condensed Consolidated Statements of Financial Position
	Gross Amount of Derivative Instruments (1)		Counterparty Netting (2)		Cash Collateral (3)		Net Amount Presented in the Consolidated Statements of Financial Position		Collateral (Received) Pledged in Invested Assets (3)		Net Amount After Collateral
	(Dollars in millions)
As of March 31, 2026
Total derivative assets	$	1,144	$	(25)	$	(929)	$	190	$	—	$	190
Total derivative liabilities	(45)		25		—		(20)		7		(13)

As of December 31, 2025
Total derivative assets	$	1,621	$	(35)	$	(1,548)	$	38	$	(28)	$	10
Total derivative liabilities	(49)		35		—		(14)		—		(14)

(1)Represents derivative assets and liabilities on a gross basis, which are not offset under enforceable master netting agreements that meet all offsetting criteria.

(2)Represents netting of derivative exposures covered by qualifying master netting agreements.

(3)Excludes a portion of collateral held in cash and invested assets that are excess collateral. As of March 31, 2026 and December 31, 2025, the Company held excess collateral of $6 million and $115 million, respectively.

10. Net Investment Income and Investment Related Gains (Losses)

Net investment income is shown below:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Available-for-sale fixed maturity securities		$	803	$	636
Equity securities		8		6
Mortgage loans		178		200
Private loans		176		91
Real estate		11		1
Real estate partnerships		34		25
Investment funds		37		60
Policy loans		6		6
Short-term investments		3		93
Other invested assets		33		133

Total net investment income		$	1,289	$	1,251

Net unrealized and realized investment gains (losses) are shown below:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Available-for-sale fixed maturity securities		$	(16)	$	61
Equity securities		(52)		6
Mortgage loans		11		4
Private loans		(12)		3
Investment real estate		42		(8)

Investments funds		(2)		1
Short-term investments and other invested assets		(1)		(64)
Total investment related gains (losses), net		$	(30)	$	3

11. Fair Value of Financial Instruments

The carrying amount and fair value of financial instruments are shown below:


	March 31, 2026				December 31, 2025
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in millions)
Financial assets:
Available-for-sale fixed maturity securities, net of allowance	$	61,180	$	61,180	$	57,992	$	57,992
Equity securities	1,128		1,128		1,179		1,179
Mortgage loans on real estate, net of allowance	10,920		11,034		11,113		11,211
Private loans, net of allowance	8,405		8,451		8,926		8,982
Real estate partnerships (1)	1,887		1,887		1,894		1,894
Investment funds (2)	150		150		152		152
Policy loans	243		243		234		234
Short-term investments (3)	683		683		600		600
Other invested assets:
Derivative assets	1,119		1,119		1,586		1,586
Collaterals received on derivatives (excluding excess collateral)	(929)		(929)		(1,548)		(1,548)
Separately managed accounts	52		52		54		54
Other (4)	1,216		1,216		1,178		1,178
Cash and cash equivalents	8,934		8,934		11,660		11,660
Deposit assets, included in reinsurance recoverable and deposit assets (5)	5,192		5,138		5,440		5,352

Other assets - market risk benefits	1,193		1,193		1,174		1,174
Separate account assets	780		780		822		822
Total financial assets	$	102,153	$	102,259	$	102,456	$	102,522

Financial liabilities:
Policyholders' account balances – excluding embedded derivative (5)	$	85,070	$	85,070	$	83,782	$	83,782
Policyholders’ account balances – embedded derivative	6,060		6,060		6,414		6,414
Market risk benefits	4,501		4,501		4,536		4,536
Other liabilities:
Derivative liabilities	20		20		14		14
Funds withheld for reinsurance liabilities	41		41		74		74
Notes payable	206		206		205		205
Long term borrowings	2,954		2,938		2,951		3,045
Separate account liabilities	780		780		822		822
Total financial liabilities	$	99,632	$	99,616	$	98,798	$	98,892

(1)Balances represent real estate partnerships in which the Company has elected the fair value option under ASC 825. Real estate partnerships accounted for as equity method investments are $1.1 billion and directly held real estate is $2.8 billion as of March 31, 2026. Real estate partnerships accounted for as equity method investments are $1.1 billion and directly held real estate is $2.8 billion as of December 31, 2025.

(2)Balances represent financial assets that are fair valued as a result of consolidation of investment company VIEs in accordance with ASC 946. Investment funds accounted for as equity method investments are $3.1 billion and investment funds measured using NAV as a practical expedient are $333 million as of March 31, 2026. Investment funds accounted for as equity method investments are $2.4 billion and investment funds measured using NAV as a practical expedient are $640 million as of December 31, 2025.

(3)There were no amounts loaned under reverse repurchase agreements as of March 31, 2026. Balance as of December 31, 2025 includes $400 million of amounts loaned under reverse repurchase agreements. The fair value of the collateral received under these agreements was $872 million as of December 31, 2025.

(4)Other invested assets accounted for as equity method investments, and therefore excluded from the table, are $218 million and $215 million as of March 31, 2026 and December 31, 2025.

(5)Excludes balances associated with contracts that involve significant mortality or morbidity risks, as these fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability. A fair value hierarchy is used to determine fair value based on a hypothetical transaction as of the measurement date from the perspective of a market participant. The Company has evaluated the types of securities in its investment portfolio to determine an appropriate hierarchy level based upon trading activity and the observability of market inputs. The classification of assets or liabilities within the fair value hierarchy is based on the lowest level of significant input to its valuation. The input levels are defined as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2 - Quoted prices in markets that are not active or inputs that are observable directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3 - Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models and third-party evaluation, as well as instruments for which the determination of fair value requires significant management judgment or estimation

Valuation Techniques for Financial Instruments Recorded at Fair Value

Available-for-sale Fixed Maturity Securities – The Company utilizes pricing services to estimate fair value measurements. The fair value for available-for-sale fixed maturity securities that are disclosed as Level 1 measurements are based on unadjusted quoted market prices for identical assets that are readily available in an active market. The estimates of fair value for most available-for-sale fixed maturity securities, including municipal bonds, provided by the pricing service are disclosed as Level 2 measurements as the estimates are based on observable market information rather than market quotes. The pricing service utilizes market quotations for available-for-sale fixed maturity securities that have quoted prices in active markets. Since available-for-sale fixed maturity securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements for these securities using its proprietary pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Additionally, an option adjusted spread model is used to develop prepayment and interest rate scenarios.

The pricing service evaluates each asset class based on relevant market information, credit information, perceived market movements and sector news. The market inputs utilized in the pricing evaluation, listed in the approximate order of priority, include: benchmark yields, reported trades, pricing source quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and economic events. The extent of the use of each market input depends on asset class and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary.

The Company has reviewed the inputs and methodology used and the techniques applied by the pricing service to produce quotes that represent the fair value of a specific security. The review confirms that the pricing service is utilizing information from observable transactions or a technique that represents a market participant’s assumptions. The Company does not adjust quotes received from the pricing service. The pricing service utilized by the Company has indicated that they will only produce an estimate of fair value if there is objectively verifiable information available.

The Company holds private placement debt and available-for-sale fixed maturity securities that have characteristics that make them unsuitable for matrix pricing. For these securities, a quote from an independent pricing source (typically a market maker) is obtained. Due to the disclaimers on the quotes that indicate the price is indicative only, the Company includes these fair value estimates in Level 3.

For securities priced using a quote from an independent pricing source, such as certain available-for-sale fixed maturity securities, the Company uses a market-based fair value analysis to validate the reasonableness of prices received. Price variances above a certain threshold are analyzed further to determine if any pricing issue exists. This analysis is performed quarterly.

Equity Securities – For publicly-traded equity securities, prices are received from a nationally recognized pricing service that are based on observable market transactions, and these securities are classified as Level 1 measurements. For certain preferred stock, current market quotes in active markets are unavailable. In these instances, an estimated fair value is received from the pricing service. The service utilizes similar methodologies to price preferred stocks as it does for available-for-sale fixed maturity securities. If applicable, these estimates would be disclosed as Level 2 measurements, depending on the use of at least one significant unobservable input. The Company tests the accuracy of the information provided by reference to other services annually. For certain private equity securities without readily determinable fair values, fair value estimates are unavailable and are not disclosed.

Real Estate and Real Estate Partnerships – The fair values of residential real estate investments held through consolidation of investment company VIEs are initially recorded based on the cost to purchase the properties and subsequently recorded at fair value on a recurring basis and falls within Level 3 of the fair value hierarchy. The fair value of the residential real estate properties was determined using broker price opinions (“BPO”). A BPO is an appraisal methodology commonly used in the industry to estimate net proceeds from the sale of a home. The significant inputs into the valuation include market comparable home sales, age and size of the home, location and property conditions.

For certain of the Company’s interest in consolidated VIEs, the Company elected the fair value option in accordance with ASC 825. The fair value of such interest is derived using discounted cash flow methodology and falls within Level 3 of the fair value hierarchy.

Certain of the Company’s consolidated VIEs that are fair valued on a recurring basis invest in LLCs that invest in operating entities which hold multi-family real estate properties. The fair value of the LLCs is obtained from a third party and is based on the fair value of the underlying real estate held by the various operating entities. The real estate is initially calculated based on the cost to purchase the properties and subsequently calculated based on a discounted cash flow methodology. Such investments are classified as Level 3 measurements.

Investment Funds – The Company owns certain investments in infrastructure LLCs through a consolidated VIE that is measured at fair value on a recurring basis. We initially recorded the investment at the cost to purchase the investment and subsequently recorded based on a discounted cash flow methodology. Investment funds that are fair valued are classified as Level 3 measurements. Certain LP funds are measured at estimated fair value using NAV as a practical expedient.

Short-term Investments – Short-term investments include fixed maturity securities with original maturities of over 90 days and less than one year at the date of acquisition, some of which are disclosed as Level 1 measurements as their fair values are based on unadjusted quoted market prices for identical assets that are readily available in an active market. Short-term investments also include commercial paper rated A2 or P2 or better by Standard & Poor’s and Moody’s, respectively, as well as certain private loans with original maturities of less than one year at the date of acquisition and amounts loaned under reverse repurchase agreements. Commercial paper, short-term private loans and amounts loaned under reverse repurchase agreements are carried at amortized cost which approximates fair value. These investments are classified as Level 2 or Level 3 measurements, depending on the use of at least one significant unobservable input.

Other Invested Assets – The Company holds interest in an investment company limited partnership, which invests in residual tranche investments, and is a consolidated VIE. We also hold residual tranche investments to which we applied the fair value option in accordance with ASC 825. These investments were initially recorded at cost and are subsequently recorded at fair value using discounted cash flow methodology and fall within Level 3 of the fair value hierarchy.

Separately Managed Accounts – The separately managed account manager uses the mid-point of a range from a third-party to price these securities. Discounted cash flows (yield analysis) and market transactions approach are used in the valuation. They use discount rates which is considered an unobservable input.

Derivative Assets/Derivative Liabilities – Equity-index options are valued using industry accepted valuation models and are adjusted for the nonperformance risk of each counterparty net of any collateral held. Inputs include market volatility and risk-free interest rates and are used in income valuation techniques in arriving at a fair value for each option contract. The nonperformance risk for each counterparty is based upon its credit default swap rate. The Company has no performance obligations related to the call options purchased to fund its fixed index annuity and equity-indexed universal life policy liabilities. Certain equity-index options are valued based on vendor sourced prices and are classified as Level 3 measurements due to the use of significant unobservable inputs used by the vendor.

Foreign exchange forwards are valued using observable market inputs, including forward currency exchange rates. These are classified as Level 2 measurements.

Interest rate and cross currency swaps are valued using market observable inputs and are determined by discounting expected future cash flows. As the significant inputs are observable, these are classified as Level 2 measurements.

Cash and Cash Equivalents – Amounts reported in the Condensed Consolidated Statements of Financial Position for these instruments are reported at their historical cost which approximates fair value due to the nature of the assets assigned to this category.

Market Risk Benefits – MRBs are valued using stochastic models that incorporate a spread reflecting our non-performance risk. The key assumptions for calculating the fair value of the MRBs are market assumptions such as equity market returns, interest rate levels, market volatility and correlations and policyholder behavior assumptions such as lapse, mortality, utilization and withdrawal patterns. Risk margins are included in the policyholder behavior assumptions. The assumptions are based on a combination of historical data and actuarial judgment. MRBs are classified as Level 3 fair value measurements as the fair value is based on unobservable inputs. The following significant unobservable inputs are used for measuring the fair value:

(1)Utilization – The utilization assumption represents the percentage of policyholders who will elect to receive lifetime income benefit payments in a given year. The range and weighted average of this assumption can vary from year to year depending on the characteristics of policies in a given cohort within the rate.

(2)Option budget – The option budget assumption represents the expected cost of annual call options we will purchase in the future.

(3)Nonperformance risk – The nonperformance risk assumption impacts the discount rate used in the discounted future cash flow valuation and includes our own credit risk based on the current market credit spreads for debt-like instruments the Company has issued and are available in the market, adjusted for instrument specific features. Additionally, the nonperformance risk assumption includes the counterparty credit risk used in the fair value measurement of ceded market risk benefits which is determined using the current market credit spreads based on the counterparty credit rating.

(4)Mortality rates – The mortality rate assumptions are set based on a combination of company and industry experience, adjusted for improvement factors. Mortality rates vary by age and by demographic characteristics such as gender.

(5)Lapse rates – The lapse rate assumptions represent the expected rate of full surrenders which are set based on product type or feature and whether a policy is subject to surrender charges.

Separate Account Assets and Liabilities – The separate account assets included on the quantitative disclosures fair value hierarchy table are comprised of short-term investments, equity securities, and available-for-sale fixed maturity securities. Equity securities are classified as Level 1 measurements. Short-term investments and available-for-sale fixed maturity securities are classified as Level 2 measurements. These classifications for separate account assets reflect the same fair value level methodologies as listed above as they are derived from the same vendors and follow the same process.

Policyholders’ Account Balances – Embedded Derivatives – The fair value of the embedded derivative component of the Company’s fixed index annuity and equity-indexed universal life policyholders’ account balances is estimated at each valuation date by (i) projecting policy contract values and minimum guaranteed contract values over the expected lives of the contracts and (ii) discounting the excess of the projected contract value amounts at the applicable risk free interest rates adjusted for the Company’s non-performance risk related to those liabilities. The following significant unobservable inputs are used for measuring the fair value: (i) option budget; (ii) lapse rates; and (iii) non-performance risk. For the details of these significant unobservable inputs, refer to significant unobservable inputs for “Market risk benefits”.

Funds Withheld for Reinsurance Liabilities – Embedded Derivatives – The fair value of the embedded derivative is estimated based on the fair value of the assets supporting the funds withheld payable under modified coinsurance and funds withheld coinsurance reinsurance agreements. The fair value of the embedded derivative is classified as Level 3 based on valuation methods used for the assets held supporting the reinsurance agreements.

The fair value hierarchy measurements for assets and liabilities measured at fair value on a recurring basis are shown below:


	Total Fair Value		Level 1		Level 2		Level 3
	(Dollars in millions)
March 31, 2026
Assets
Available-for-sale fixed maturity securities:
U.S. treasury and government	$	67	$	55	$	12	$	—
U.S. state and municipal	2,910		—		2,910		—
Foreign governments	3,271		—		3,220		51
Corporate debt securities	44,325		—		42,863		1,462
Residential mortgage-backed securities	959		—		941		18
Commercial mortgage-backed securities	3,041		—		3,013		28
Collateralized debt securities	6,607		—		2,038		4,569
Total available-for-sale fixed maturity securities	61,180		55		54,997		6,128
Equity securities:
Common stock	698		611		2		85
Preferred stock	421		5		44		372

Total equity securities	1,119		616		46		457
Real estate at fair value (1)	1,247		—		—		1,247
Real estate partnerships at fair value (1)	1,887		—		—		1,887
Investment funds (1)(2)	150		—		—		150
Short-term investments	683		33		650		—
Other invested assets:
Derivative assets	1,119		—		974		145
Collaterals received on derivatives (excluding excess collateral)	(929)		(929)		—		—
Separately managed accounts	52		—		—		52
Other	468		—		—		468
Cash and cash equivalents	8,934		8,934		—		—


Other assets – market risk benefit assets	1,193		—		—		1,193
Separate account assets	780		762		18		—
Total financial assets	$	77,883	$	9,471	$	56,685	$	11,727

Liabilities
Policyholders’ account balances - embedded derivative	$	6,060	$	—	$	—	$	6,060
Market risk benefits	4,501		—		—		4,501
Funds withheld for reinsurance liabilities - embedded derivative	41		—		—		41
Other liabilities - derivative liabilities	20		—		20		—
Separate account liabilities	780		762		18		—
Total financial liabilities	$	11,402	$	762	$	38	$	10,602

(1)Balances include financial assets that are fair valued in accordance with ASC 825 as well as financial assets that are fair valued as a result of consolidation of investment company VIE in accordance with ASC 946.

(2)Balance excludes $333 million of investments measured at estimated fair value using NAV as a practical expedient.


	Total Fair Value		Level 1		Level 2		Level 3
	(Dollars in millions)
December 31, 2025
Assets
Available-for-sale fixed maturity securities:
U.S. treasury and government	$	68	$	54	$	14	$	—
U.S. state and municipal	2,949		—		2,949		—
Foreign governments	1,169		—		1,147		22
Corporate debt securities	43,141		—		41,915		1,226
Residential mortgage-backed securities	1,008		—		989		19
Commercial mortgage-backed securities	3,121		—		3,012		109
Collateralized debt securities	6,536		—		2,247		4,289
Total available-for-sale fixed maturity securities	57,992		54		52,273		5,665
Equity securities:
Common stock	757		670		2		85
Preferred stock	414		5		63		346

Total equity securities	1,171		675		65		431
Real estate at fair value (1)	1,253		—		—		1,253
Real estate partnerships at fair value (1)	1,894		—		—		1,894
Investment funds (1)(2)	152		—		—		152
Short-term investments	600		—		379		221
Other invested assets:
Derivative assets	1,586		—		1,383		203
Collaterals received on derivatives (excluding excess collateral)	(1,548)		(1,548)		—		—
Separately managed accounts	54		—		—		54
Other	410		—		—		410
Cash and cash equivalents	11,660		11,660		—		—

Other assets – market risk benefit assets	1,174		—		—		1,174
Separate account assets (3)	822		804		18		—
Total financial assets	$	77,220	$	11,645	$	54,118	$	11,457

Liabilities
Policyholders’ account balances – embedded derivative	$	6,414	$	—	$	—	$	6,414
Market risk benefits	4,536		—		—		4,536
Funds withheld for reinsurance liabilities – embedded derivatives	74		—		—		74
Other liabilities – derivative liabilities	14		—		14		—
Separate account liabilities	822		804		18		—
Total financial liabilities	$	11,860	$	804	$	32	$	11,024

(2)Balance excludes $640 million of investments measured at estimated fair value using NAV as a practical expedient.

Fair Value Information About Financial Instruments Not Recorded at Fair Value

Information about fair value estimates for financial instruments not measured at fair value is discussed below:

Mortgage Loans – The fair value of mortgage loans is estimated using discounted cash flow analyses on a loan-by-loan basis by applying a discount rate to expected cash flows from future installment and balloon payments. The discount rate takes into account general market trends and specific credit risk trends for the individual loan. Factors used to arrive at the discount rate include inputs from spreads based on U.S. Treasury notes and the loan’s credit quality, region, property-type, lien priority, payment type and current status.

Private Loans – The fair value of private loans is estimated using discounted cash flow analyses on a loan-by-loan basis by applying a discount rate to expected cash flows from future installment and balloon payments. The discount rate takes into account general market trends and specific credit risk trends for the individual loan. For certain of our collateral loans, we have concluded the carrying value approximates fair value.

Policy Loans – The carrying value of policy loans is the outstanding balance plus any accrued interest. Due to the collateralized nature of policy loans such that they cannot be separated from the policy contracts, the unpredictable timing of repayments and the fact that settlement is at outstanding value, the carrying value of policy loans approximates fair value.

Other Invested Assets – The common stock of Federal Home Loan Bank (“FHLB”) is carried at cost which approximates fair value. The fair value of the company owned life insurance (“COLI”) is equal to the cash surrender value of the policies.

Policyholders’ Account Balances - investments contracts, excluding embedded derivative and deposit assets – The fair values of the policyholder account balances’ not involving significant mortality or morbidity risks, are stated at the cost we would incur to extinguish the liability (i.e., the cash surrender value) as these contracts are generally issued without an annuitization date. The deposit assets related to the annuity benefit reserves have fair values determined in a similar fashion. For period-certain annuity benefit contracts, the fair value is determined by discounting the benefits at the interest rates currently in effect for newly issued immediate annuity contracts. All of the fair values presented within these categories fall within Level 3 of the fair value hierarchy as most of the inputs are unobservable market data.

Long Term Borrowings – Long term borrowings are carried at outstanding principal balance. The carrying value approximates fair value because the carrying value represents the amount owing and payable to the creditor at the reporting date. Fair values for subordinated debentures are estimated using discounted cash flow calculations principally on observable inputs including the Company’s incremental borrowing rates, which reflect its credit rating, for similar types of borrowings with maturities consistent with those remaining for the debt being valued.

Notes Payable – Notes payable are carried at outstanding principal balance. For a majority of the notes, the carrying value of the notes payable approximates fair value because the underlying interest rates approximate market rates at the reporting date.

The carrying amount and estimated fair value of financial instruments not recorded at fair value on a recurring basis are shown below. The table below excludes accrued investment income, which is recorded at amortized cost in the statements of financial position, as their carrying amounts approximate the fair values due to their short-term nature.


	Carrying Amount		Fair Value		Fair Value Hierarchy Level
					Level 1		Level 2		Level 3
	(Dollars in millions)
March 31, 2026
Financial assets
Mortgage loans on real estate, net of allowance	$	10,920	$	11,034	$	—	$	—	$	11,034
Private loans, net of allowance	8,405		8,451		—		19		8,432
Policy loans	243		243		—		—		243
Deposit assets, included in reinsurance recoverables and deposit assets (1)	5,192		5,138		—		—		5,138
Other invested assets	748		748		—		422		326
Total financial assets	$	25,508	$	25,614

Financial liabilities
Policyholders' account balances – excluding embedded derivative (1)	$	85,070	$	85,070	$	—	$	—	$	85,070
Long term borrowings	2,954		2,938		—		—		2,938
Notes payable	206		206		—		—		206

Total financial liabilities	$	88,230	$	88,214

	Carrying Amount		Fair Value		Fair Value Hierarchy Level
					Level 1		Level 2		Level 3
	(Dollars in millions)
December 31, 2025
Financial assets
Mortgage loans on real estate, net of allowance	$	11,113	$	11,211	$	—	$	—	$	11,211
Private loans, net of allowance	8,926		8,982		—		74		8,908
Policy loans	234		234		—		—		234
Deposit assets, included in reinsurance recoverables and deposit assets (1)	5,440		5,352		—		—		5,352
Other invested assets	768		768		—		417		351
Total financial assets	$	26,481	$	26,547

Financial liabilities
Policyholders' account balances – excluding embedded derivative (1)	$	83,782	$	83,782	$	—	$	—	$	83,782

Long term borrowings	2,951		3,045		—		—		3,045
Notes payable	205		205		—		—		205

Total financial liabilities	$	86,938	$	87,032

(1)Excludes balances associated with contracts that involve significant mortality or morbidity risks, as these fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value.

For financial assets and financial liabilities measured at fair value on a recurring basis using Level 3 inputs during the periods, reconciliations of the beginning and ending balances are shown below:


































	Three Months Ended March 31, 2026
	Assets				Liabilities (2)
	Invested Assets (1)		Derivative Assets		Policyholders’ Account Balances – Embedded Derivative		Funds Withheld for Reinsurance Liabilities - Embedded Derivative
	(Dollars in millions)
Balance, beginning of year	$	10,080	$	203	$	6,414	$	74

Fair value changes in net income	66		(35)		(311)		(33)
Fair value changes in other comprehensive income	(29)		—		—		—
Purchases	435		37		—		—
Sales	(71)		—		—		—
Settlements or maturities	(327)		(60)		—		—
Premiums less benefits	—		—		(43)		—
Transfers into Level 3	343		—		—		—
Transfers out of Level 3	(108)		—		—		—
Balance, end of period	$	10,389	$	145	$	6,060	$	41

	Three Months Ended March 31, 2025
	Assets				Liabilities (2)
	Invested Assets (1)		Derivative Assets		Policyholders’ Account Balances – Embedded Derivative		Funds Withheld for Reinsurance Liabilities - Embedded Derivative
	(Dollars in millions)
Balance, beginning of year	$	8,880	$	223	$	1,123	$	37

Fair value changes in net income	54		(38)		(268)		18
Fair value changes in other comprehensive income	26		—		—		—
Purchases	160		33		—		—
Sales	(45)		—		—		—
Settlements or maturities	(13)		(69)		—		—
Premiums less benefits	—		—		93		—
Transfers into Level 3	695		—		—		—
Transfers out of Level 3	(121)		—		—		—
Balance, end of period	$	9,636	$	149	$	948	$	55

(1)Balance includes separately managed accounts.

(2)See Note 18 - Market Risk Benefits for the reconciliation of the beginning and ending balances for market risk benefits.

Transfers into and out of Level 3 during the three months ended March 31, 2026 were primarily the result of changes in observable pricing. The Company’s valuation of financial instruments categorized as Level 3 in the fair value hierarchy are based on valuation techniques that use significant inputs that are unobservable or had a decline in market activity that obscured observability. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models and discounted cash flow methodology based on spread/yield assumptions.

12. Reinsurance

The Company reinsures its business through a diversified group of reinsurers (“reinsurance ceded”) and assumes certain business by entering into agreements with third-party insurers (“reinsurance assumed”). Under reinsurance ceded transactions, the Company remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. The Company monitors trends in arbitration and any litigation outcomes with its reinsurers. Collectability of reinsurance balances is evaluated by monitoring ratings and the financial strength of its reinsurers.

The effect of reinsurance on the applicable line items on our Condensed Consolidated Statements of Operations are as follows:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Premiums earned:
Gross amounts, including reinsurance assumed		$	221	$	514
Reinsurance ceded		(76)		(56)
Net amount		$	145	$	458

Other policy revenue:
Gross amounts, including reinsurance assumed		$	214	$	228
Reinsurance ceded		(52)		(79)
Net amount		$	162	$	149

Policyholder benefits and claims incurred:
Gross amounts, including reinsurance assumed		$	413	$	710
Reinsurance ceded		(182)		(108)
Net amount		$	231	$	602

Change in fair value of market risk benefits:
Gross amounts, including reinsurance assumed		$	128	$	392
Reinsurance ceded		11		(31)
Net amount		$	139	$	361

Interest sensitive contract benefits:
Gross amounts, including reinsurance assumed		$	582	$	550
Reinsurance ceded		(37)		(38)
Net amount		$	545	$	512

The following summarizes our significant life and annuity reinsurance treaties and related recoverable:


	Reinsurance Recoverable				Agreement Type	Products Covered
	March 31, 2026		December 31, 2025
	(Dollars in millions)
Principal Reinsurers:
Athene Life Re Ltd.	$	1,249	$	1,367	Coinsurance Funds Withheld, Modified Coinsurance	Certain Fixed Annuities and Multi-Year Guaranteed Annuities
AeBe ISA LTD	3,741		3,860		Coinsurance Funds Withheld, Coinsurance	Certain Fixed Index and Fixed Rate Annuities
Reinsurance Group of America Inc. (RGA)	3,572		3,569		Coinsurance	Certain Term, Whole, Indexed Universal, Universal, and Universal with Secondary Guarantee Life Insurance Policies
	$	8,562	$	8,796

There were no significant changes to third party or intercompany reinsurance agreements for the three months ended March 31, 2026.

13. Separate Account Assets and Liabilities

The following table presents the change of the Company’s separate account assets and liabilities:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Balance, beginning of period		$	822	$	1,343
Additions (deductions):


Policyholder deposits		16		19
Net investment income		19		23
Net realized capital gains (losses) on investments		(35)		(43)
Policyholder benefits and withdrawals		(34)		(31)
Net transfer from (to) general account		(4)		(54)
Policy charges		(4)		(4)
Total changes		(42)		(90)
Balance, end of period		$	780	$	1,253

Cash surrender value		$	752	$	686

14. Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired

The following tables present a rollforward of deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”) and value of business acquired (“VOBA”) for the periods indicated:


























































	Three Months Ended March 31, 2026
	Annuities		Life Insurance		Total
	(Dollars in millions)
DAC
Balance, beginning of period	$	1,893	$	377	$	2,270
Additions	225		15		240
Amortization	(50)		(5)		(55)

Net change	175		10		185
Balance, end of period	2,068		387		2,455

DSI
Balance, beginning of period	1,114		—		1,114
Additions	134		—		134
Amortization	(24)		—		(24)
Net change	110		—		110
Balance, end of period	1,224		—		1,224

VOBA
Balance, beginning of period	8,068		61		8,129


Amortization	(192)		(1)		(193)



Balance, end of period	7,876		60		7,936
Total DAC, DSI, and VOBA Asset	$	11,168	$	447	$	11,615

	Three Months Ended March 31, 2025
	Annuities		Life Insurance		Total
	(Dollars in millions)
DAC
Balance, beginning of period	$	892	$	306	$	1,198
Additions	236		18		254
Amortization	(28)		(7)		(35)
Net change	208		11		219
Balance, end of period	1,100		317		1,417

DSI
Balance, beginning of period	393		—		393
Additions	143		—		143
Amortization	(8)		—		(8)
Net change	135		—		135
Balance, end of period	528		—		528

VOBA
Balance, beginning of period	8,848		65		8,913


Amortization	(194)		(1)		(195)


Balance, end of period	8,654		64		8,718
Total DAC, DSI, and VOBA Asset	$	10,282	$	381	$	10,663

The following table provides the projected VOBA asset amortization expenses for a five-year period and thereafter as of March 31, 2026:


Years	(Dollars in millions)
2026 (1)	$	552
2027	679
2028	623
2029	568
2030	520
Thereafter	4,994
Total amortization expense	$	7,936

(1)Expected amortization for the remainder of 2026.

15. Intangible Assets

The components of definite-lived and indefinite-lived intangible assets are as follows. Refer to Note 14 - Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired for VOBA asset, which is an actuarial intangible asset arising from a business combination.


	March 31, 2026						December 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(Dollars in millions)
Definite-lived intangible assets:
Distributor relationships	$	1,440	$	(113)	$	1,327	$	1,445	$	(103)	$	1,342
Trade name	58		(12)		46		58		(11)		47

Software and other	131		(48)		83		125		(40)		85

Total definite-lived intangible assets	1,629		(173)		1,456		1,628		(154)		1,474

Indefinite-lived intangible assets:
Insurance licenses	27		—		27		27		—		27
Total indefinite-lived intangible assets	27		—		27		27		—		27
Total intangible assets	$	1,656	$	(173)	$	1,483	$	1,655	$	(154)	$	1,501

No impairment expenses of intangible assets were recognized for the three months ended March 31, 2026 and 2025. The Company estimates that its intangible assets do not have any significant residual value in determining their amortization. Amortization expenses for definite-lived intangible assets were $19 million and $29 million for the three months ended March 31, 2026 and 2025, respectively.

The following table outlines the estimated future amortization expense related to definite-lived intangible assets held as of March 31, 2026.


Years	(Dollars in millions)
2026 (1)	$	72
2027	87
2028	81
2029	71
2030	70
Thereafter	1,075
Total amortization expense	$	1,456

(1)Expected amortization for the remainder of 2026.

16. Future Policy Benefits

The reconciliation of the balances described in the table below to “Future policy benefits” in the Condensed Consolidated Statements of Financial Position is as follows.


	March 31, 2026		December 31, 2025
	(Dollars in millions)
Future policy benefits:
Annuities	$	6,959	$	7,142
Life Insurance	1,913		1,917
Deferred profit liability:
Annuities	80		76
Life Insurance	101		99
Other contracts and VOBA liability	1,731		1,728
Total future policy benefits	$	10,784	$	10,962

Future Policy Benefits

The balances and changes in the liability for future policy benefits are as follows:


	Three Months Ended March 31,
	2026								2025
	Annuities			Life Insurance			Total		Annuities			Life Insurance			Total
	(Dollars in millions)
Present Value of Expected Net Premiums:
Balance, beginning of period	$	—		$	2,183		$	2,183	$	—		$	2,353		$	2,353
Beginning balance at original discount rate	—			2,302			2,302		—			2,507			2,507
Effect of changes in cash flow assumptions (1)	—			(10)			(10)		—			61			61
Effect of actual variances from expected experience	2			15			17		(2)			(34)			(36)
Adjusted beginning of period balance	2			2,307			2,309		(2)			2,534			2,532

Issuances	97			9			106		385			2			387
Interest accrual	1			23			24		3			25			28
Net premiums collected	(100)			(92)			(192)		(386)			(76)			(462)


Ending balance at original discount rate	—			2,247			2,247		—			2,485			2,485
Effect of changes in discount rate assumptions	—			(112)			(112)		—			(126)			(126)
Balance, end of period	$	—		$	2,135		$	2,135	$	—		$	2,359		$	2,359

Present Value of Expected Future Policy Benefits:
Balance, beginning of period	$	7,142		$	4,100		$	11,242	$	5,532		$	4,169		$	9,701
Beginning balance at original discount rate	7,135			4,459			11,594		5,668			4,601			10,269
Effect of changes in cash flow assumptions (1)	13			(42)			(29)		2			71			73
Effect of actual variances from expected experience	(18)			26			8		(28)			(37)			(65)
Adjusted beginning of period balance	7,130			4,443			11,573		5,642			4,635			10,277

Issuances	102			9			111		386			2			388
Interest accrual	77			44			121		69			45			114
Benefit payments	(164)			(87)			(251)		(130)			(77)			(207)
Derecognitions (lapses and withdrawals)	4			—			4		24			—			24
Foreign currency translation	(25)			—			(25)		25			—			25
Ending balance at original discount rate	7,124			4,409			11,533		6,016			4,605			10,621
Effect of changes in discount rate assumptions	(165)			(361)			(526)		(103)			(381)			(484)

Balance, end of period	$	6,959		$	4,048		$	11,007	$	5,913		$	4,224		$	10,137

Liability for future policy benefits	$	6,959		$	1,913		$	8,872	$	5,913		$	1,865		$	7,778
Less: Reinsurance recoverables	(1)			(1,268)			(1,269)		(2)			(1,262)			(1,264)
Net liability for future policy benefits, after reinsurance recoverable	$	6,958		$	645		$	7,603	$	5,911		$	603		$	6,514

Weighted-average liability duration of future policy benefits (years)	9 years			14 years					6 years			15 years

Weighted average interest accretion rate	5.34		%	4.72		%			5.22		%	4.77		%
Weighted average current discount rate	5.58		%	5.66		%			5.53		%	5.75		%

(1)For the three months ended March 31, 2026 and 2025, the Company recognized liability remeasurement impacts of $25 million and $20 million, respectively, from the net effect of the changes in cash flow assumptions, which were included in “Policyholder benefits and claims incurred” in the Condensed Consolidated Statements of Operations.

The amounts of undiscounted and discounted expected gross premiums and future benefit payments follow:


	March 31, 2026				March 31, 2025
	Undiscounted		Discounted		Undiscounted		Discounted
	(Dollars in millions)
Annuities
Expected future benefit payments	$	12,362	$	6,959	$	10,444	$	5,885
Expected future gross premiums	—		—		—		—

Life Insurance
Expected future benefit payments	8,328		4,048		8,705		4,224
Expected future gross premiums	5,153		3,040		5,587		3,344

Total
Expected future benefit payments	20,690		11,007		19,149		10,109
Expected future gross premiums	5,153		3,040		5,587		3,344

The amount of revenue and interest recognized in the Condensed Consolidated Statements of Operations follows:


	Three Months Ended March 31,
	2026		2025		2026		2025
	Gross Premiums or Assessments				Interest Expense
	(Dollars in millions)
Annuities	$	102	$	397	$	76	$	66
Life Insurance	92		105		21		20

17. Policyholders' Account Balances

Policyholders’ account balances relate to investment-type contracts and universal life-type policies as well as balances relating to funding agreements. Investment-type contracts principally include traditional individual fixed rate annuities and fixed index annuities in the accumulation phase and group annuity contracts.

The balances and changes in policyholders’ account balances are as follows:


	Three Months Ended March 31,
	2026								2025
	Annuities			Life Insurance			Total		Annuities			Life Insurance			Total
	(Dollars in millions)
Balance, beginning of period	$	86,999		$	2,193		$	89,192	$	80,046		$	2,107		$	82,153
Issuances	3,282			4			3,286		3,276			14			3,290

Premiums received	29			110			139		31			109			140
Policy charges	(142)			(93)			(235)		(131)			(83)			(214)
Surrenders and withdrawals	(2,771)			(29)			(2,800)		(2,419)			(24)			(2,443)
Interest credited	741			29			770		699			12			711
Benefit payments	(322)			—			(322)		(269)			—			(269)

Other	(3)			—			(3)		2			—			2
Balance, end of period	$	87,813		$	2,214		$	90,027	$	81,235		$	2,135		$	83,370

Reconciling items:
Funding agreements	$	2,825		$	—		$	2,825	$	515		$	—		$	515
Supplemental contracts	783			—			783		509			—			509
Embedded derivative and other	377			69			446		146			66			212
Total PAB balance, end of period	$	91,798		$	2,283		$	94,081	$	82,405		$	2,201		$	84,606

Weighted-average crediting rate	3.02		%	4.97		%			3.32		%	4.43		%
Net amount at risk (1)	$	13,653		$	38,785				$	12,673		$	38,851
Cash surrender value	$	80,984		$	1,973				$	74,934		$	1,870

(1)Net amount at risk is defined as the current guarantee amount in excess of the current account balance.

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums follow.


		March 31, 2026
	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 - 50 Basis Points Above		51 - 150 Basis Points Above		> 150 Basis Points Above		Other (1)		Total
		(Dollars in millions)
Annuities	0% - 1%	$	3,245	$	2,521	$	4,092	$	5,512	$	—	$	15,370
	1% - 2%	2,090		265		843		1,055		—		4,253
	2% - 3%	1,861		510		291		16,076		—		18,738
	Greater than 3%	256		6		11		7		—		280
Products with either a fixed rate or no guaranteed minimum crediting rate		—		—		—		—		49,172		49,172
	Total	$	7,452	$	3,302	$	5,237	$	22,650	$	49,172	$	87,813

Life Insurance	0% - 1%	$	—	$	—	$	—	$	—	$	—	$	—
	1% - 2%	43		12		74		876		—		1,005
	2% to 3%	415		—		219		—		—		634
	Greater than 3%	575		—		—		—		—		575
Products with either a fixed rate or no guaranteed minimum crediting rate		—		—		—		—		—		—
	Total	$	1,033	$	12	$	293	$	876	$	—	$	2,214

		March 31, 2025
	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 - 50 Basis Points Above		51 - 150 Basis Points Above		> 150 Basis Points Above		Other (1)		Total
		(Dollars in millions)
Annuities	0% - 1%	$	3,890	$	2,737	$	3,913	$	4,697	$	—	$	15,237
	1% - 2%	1,598		323		1,109		1,648		—		4,678
	2% - 3%	1,810		394		187		10,421		—		12,812
	Greater than 3%	278		7		3		10		—		298
Products with either a fixed rate or no guaranteed minimum crediting rate		—		—		—		—		48,210		48,210
	Total	$	7,576	$	3,461	$	5,212	$	16,776	$	48,210	$	81,235

Life Insurance	0% - 1%	$	—	$	—	$	—	$	—	$	—	$	—
	1% - 2%	35		2		63		766		—		866
	2% to 3%	390		—		223		—		—		613
	Greater than 3%	656		—		—		—		—		656
Products with either a fixed rate or no guaranteed minimum crediting rate		—		—		—		—		—		—
	Total	$	1,081	$	2	$	286	$	766	$	—	$	2,135

(1)Other includes products with either a fixed rate or no guaranteed minimum crediting rate or allocated to index strategies.

18. Market Risk Benefits

The net balance of market risk benefit (MRB) assets and liabilities of, and changes in guaranteed minimum withdrawal benefits associated with, annuity contracts is as follows:


	Three Months Ended March 31,
	2026		2025
	(Dollars in millions)
Balance, beginning of period	$	3,362	$	2,799
Balance, beginning of period, before effect of changes in the instrument-specific credit risk	3,349		2,549

Issuances	—		5
Interest accrual	38		33
Attributed fees collected	68		53

Effect of changes in interest rates	(67)		201
Effect of changes in equity markets	147		151
Effect of changes in equity index volatility	(90)		(70)

Effect of changes in future expected policyholder behavior	31		16
Effect of changes in other future expected assumptions	—		3
Balance, end of period, before effect of changes in the instrument-specific credit	3,476		2,941
Effect of changes in the ending instrument-specific credit risk	(168)		182
Balance, end of period	3,308		3,123
Less: Reinsured MRB, end of period	(589)		(557)
Balance, end of period, net of reinsurance	$	2,719	$	2,566

Net amount at risk (1)	$	13,193	$	12,238
Weighted average attained age of contract holders (years)	71 years		71 years

(1)Net amount at risk is defined as the current guarantee amount in excess of the current account balance.

The reconciliation of market risk benefits by amounts in an asset position and in a liability position to the “Market risk benefits” amount in the Condensed Consolidated Statements of Financial Position follows.


	March 31, 2026
	Asset		Liability		Net Liability
	(Dollars in millions)
Market risk benefits	$	1,193	$	4,501	$	3,308



	December 31, 2025
	Asset		Liability		Net Liability
	(Dollars in millions)
Market risk benefits	$	1,174	$	4,536	$	3,362

19. Long Term Borrowings

The following is a summary of our long term borrowings:


	March 31, 2026		December 31, 2025
	(Dollars in millions)
Term Loan Credit Facility - due May 25, 2027	$	99	$	98
5.000% Senior Notes - due June 15, 2027	492		490
5.750% Senior Notes - due October 1, 2029	596		596
6.144% Senior Notes - due June 13, 2032	497		497
6.000% Senior Notes - due July 15, 2035	692		692
5.000% American Equity Capital Trust II - due June 1, 2047	84		84
7.000% Fixed-Rate Reset Junior Subordinated Notes - due December 1, 2055	494		494
Total	$	2,954	$	2,951

The agreements above require the Company and its subsidiaries to maintain minimum net worth covenants. As of March 31, 2026 and December 31, 2025, the Company was in compliance with its financial covenants.

20. Income Taxes

For the three months ended March 31, 2026 and 2025, the effective tax rates on pre-tax income were 85.0% and 21.3%, respectively. For the three months ended March 31, 2026, the Company’s effective rate was higher than the statutory rate of 21% primarily due to the impact of permanent differences relative to comparatively low net income before income taxes. Items impacting the rate included changes to our Bermuda deferred tax asset and tax credit project expenses which resulted in a 70% increase in the effective tax rate. For the three months ended March 31, 2025, the Company’s effective tax rate was not materially different from the statutory rate of 21%.

Pillar Two and Bermuda Corporate Income Tax Regime

In December 2023, the Government of Bermuda enacted a corporate income tax (“CIT”) regime, designed to align with the Organization for Economic Cooperation and Development's ("OECD's") global minimum tax rules. The Corporate Income Tax Act 2023 came into operation in its entirety on January 1, 2025. The regime applies a 15% CIT to Bermuda businesses that are part of Multinational Enterprise Groups with annual revenue of €750 million or more, which includes ANGI. As of March 31, 2026, we had a current tax asset of $44 million and a deferred tax asset of $446 million and as of December 31, 2025, we had a current tax asset of $44 million and a deferred tax asset of $457 million related to this regime.

The Company continues to evaluate the impact of the global minimum tax requirements by monitoring the legislative changes and future developments in relation to Pillar Two across jurisdictions in which the Company operates and assessing their impact on our operations and financial statements.

21. Stockholders' Equity

Common Stock

The Company has 10,000 shares of common stock with a par value of $0.01 per share authorized and outstanding, all of which are held by Brookfield Wealth Solutions Ltd. and its affiliates. See Note 1 - Organization and Description of the Company for additional information.

Preferred Stock - Dividends

Dividends on the Series D preferred stock are payable on a non-cumulative basis only when, as and if declared, quarterly in arrears on the 15th day of January, April, July and October of each year, commencing on April 15, 2025. The Series D preferred stock are not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions.

During the three months ended March 31, 2026, we accrued for dividends totaling $6 million for the Series D preferred stock. For the three months ended March 31, 2025, we accrued for dividends totaling $6 million for Series D preferred stock.

For the three months ended March 31, 2025, we paid dividends totaling $8 million for Series A preferred stock.

For the three months ended March 31, 2025, we paid dividends totaling $5 million for Series B preferred stock.

22. Accumulated Other Comprehensive Income

The components of and changes in the accumulated other comprehensive income (“AOCI”), and the related tax effects, are shown below:


	Change in Net Unrealized Investment Gains (Losses)		Change in Discount Rate for Future Policy Benefits		Change in Instrument- Specific Credit Risk for Market Risk Benefits		Defined Benefit Pension Plan Adjustment		Total
	(Dollars in millions)
Balance as of December 31, 2025	$	880	$	159	$	(15)	$	70	$	1,094
Other comprehensive income (loss) before reclassifications	(853)		183		182		(4)		(492)
Amounts reclassified to (from) AOCI	8		—		—		—		8
Deferred income tax benefit (expense)	178		(39)		(39)		1		101
Balance at March 31, 2026	$	213	$	303	$	128	$	67	$	711













Balance as of December 31, 2024	$	154	$	279	$	(196)	$	103	$	340
Other comprehensive income (loss) before reclassifications	397		(35)		68		(4)		426
Amounts reclassified to (from) AOCI	(7)		—		—		—		(7)
Deferred income tax benefit (expense) and other	(83)		12		(19)		1		(89)
Balance at March 31, 2025	$	461	$	256	$	(147)	$	100	$	670

23. Related Party Transactions

The Company has entered into recurring transactions and agreements with certain related parties. The impact on the Condensed Consolidated Financial Statements of significant related party transactions is discussed below.

Investment Management

For the three months ended March 31, 2026 and 2025, the Company paid investment management fees pursuant to investment management agreements with an affiliate of Brookfield Asset Management Ltd. (“BAM”) of $62 million and $47 million, respectively. The Company had $57 million and $57 million of investment management fees payable to an affiliate of BAM as of March 31, 2026 and December 31, 2025, respectively, which are included in “Due to related parties” on the Condensed Consolidated Statements of Financial Position.

Other Related Party Transactions

As of March 31, 2026 and December 31, 2025, we held investments in related parties of $9.9 billion and $9.6 billion, respectively, not including equity method investments. See Note 8 - Variable Interest Entities and Equity Method Investments for details on our equity method investments. Our investments in related parties as of March 31, 2026 and December 31, 2025 include approximately $4.0 billion and $4.2 billion respectively, of private loans with subsidiaries of Brookfield Corporation. The Company’s investments in related parties are net of maturities, prepayments and sales that occurred during the year and reflect any other changes in carrying values during the year, such as fair value changes for investments carried at fair value.

For the three months ended March 31, 2026 and 2025, we did not have significant investment transactions with related parties.

Subsidiaries of the Company had demand deposit agreements with Brookfield Treasury Management Inc. (“BTMI”), a subsidiary of Brookfield Corporation and BAMR US Holdings LLC (“BAMR”), an indirect wholly-owned subsidiary of Brookfield Wealth Solutions. As of March 31, 2026 and December 31, 2025, the balance under the BTMI agreement was $269 million and $265 million, respectively. The balance outstanding under the agreement with BAMR at March 31, 2026 and December 31, 2025 was $429 million and $532 million, respectively. These amounts are included in “Cash and cash equivalents” in the Company's Condensed Consolidated Statements of Financial Position. For the three months ended March 31, 2026 and 2025, the Company earned interest income from these agreements of $9 million and $9 million, respectively.

24. Segment Reporting

Management organizes the business into two reporting segments:

–Annuities - consists of fixed and fixed index annuity products, as well as PRT contracts and funding agreements. Products are primarily sold through independent agents, brokers, and financial institutions, along with multiple-line and career agents.

–Life Insurance - consists primarily of whole, term, universal, indexed and variable life insurance formerly sold through career, multiple-line, and independent agents as well as direct marketing channels.

Corporate and other consists of net investment income from investments and certain expenses not allocated to the insurance segments and revenues and related expenses from non-insurance operations.

Prior to October 1, 2025, the Company was organized into three segments, annuities, life insurance, and property and casualty. As discussed in Note 26 - Discontinued Operations, the Company completed the transfer of the P&C Subsidiaries on October 1, 2025. The transfer represented a strategic shift for ANGI and accordingly, the property and casualty segment is no longer a segment. The prior period disclosures below have been recast to present segment information on a comparative basis.

These segments are regularly reviewed by the Company’s chief operating decision maker (“CODM”) for the purpose of allocating resources to the segment and to assess its performance. The Company’s CODM has been identified as the Brookfield Wealth Solutions Chief Executive Officer and the Brookfield Wealth Solutions Chief Financial Officer.

The key measure used by the CODM in assessing performance and in making resource allocation decisions is Distributable Operating Earnings (“DOE”). DOE provides the CODM with insights on capital allocation and investment strategies, as well as product mix and pricing of insurance products offered by the Annuities and Life Insurance segments.

DOE is calculated as net income after applicable taxes excluding the impact of depreciation and amortization, deferred income taxes related to basis and other changes, and breakage and transaction costs, as well as certain investment and insurance reserve gains and losses, including gains and losses related to asset and liability matching strategies, non-operating adjustments related to changes in cash flow assumptions for future policy benefits, change in the fair value of embedded derivatives, and change in market risk benefits, and is inclusive of returns on equity invested in certain variable interest entities and the Company’s share of adjusted earnings from investments in certain associates. DOE allows the CODM to evaluate the Company’s segments on the basis of return on invested capital generated by its operations and allows the Company to evaluate the performance of its segments.

The tables below provide each segment’s results in the format that the CODM reviews its reporting segments to make decisions and assess performance.














































	Three Months Ended March 31, 2026
	Annuities		Life Insurance		Total
	(Dollars in millions)
Net premiums and other policy related revenues	$	239	$	89
Net investment income, including reinsurance funds withheld	1,352		38
Segment revenues (1)(2)	1,591		127		$	1,718
Policyholder benefits, net	205		74
Interest sensitive contract benefits, excluding index credits	588		4
Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired	185		7
Other insurance and reinsurance expenses (3)	107		—
Operating expenses, excluding transactions costs	124		22


Segment DOE	$	382	$	20	$	402
Corporate and other DOE					(96)
Depreciation and amortization expenses					(39)
Deferred income tax recovery (expense) relating to basis and other changes					51
Transaction costs					(26)
Mark-to-market gains (losses) on investments, including reinsurance funds withheld					(137)
Mark-to-market gains (losses) on insurance contracts and other net assets					(162)
Loss from continuing operations (4)					$	(7)

	Three Months Ended March 31, 2025
	Annuities		Life Insurance		Total
	(Dollars in millions)
Net premiums and other policy related revenues	$	528	$	101
Net investment income, including reinsurance funds withheld	1,238		51
Segment revenues (1)(2)	1,766		152		$	1,918
Policyholder benefits, net	461		85
Interest sensitive contract benefits, excluding index credits	472		7
Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired	222		7
Other insurance and reinsurance expenses (3)	93		—
Operating expenses, excluding transactions costs	111		21


Segment DOE	$	407	$	32	$	439
Corporate and other DOE					(98)
Depreciation and amortization expenses					(52)
Deferred income tax recovery (expense) relating to basis and other changes					138
Transaction costs					(32)
Mark-to-market gains (losses) on investments, including reinsurance funds withheld					(75)
Mark-to-market gains (losses) on insurance contracts and other net assets					(582)
Loss from continuing operations (4)					$	(262)

(1)For the three months ended March 31, 2026 and 2025, there were no material intersegment revenues.

(2)Our consolidated revenues in the Condensed Consolidated Statements of Operations principally represent the sum of “Segment revenues” and “Mark-to-market gains (losses) on investments, including reinsurance funds withheld” in the tables above.

(3)“Other insurance and reinsurance expenses” primarily represent “Change in fair value of market risk benefits” excluding the effect of changes in market risks (e.g., interest rates, equity markets and equity index volatility). See Note 18 - Market Risk Benefits for the details of market risk benefits.

(4)Loss from continuing operations is net loss attributable to American National Group Inc. common stockholder less income from discontinuing operations, net of tax.

The Company’s Annuities segment offers annuity-based products to individuals and institutions. Total premium revenues recorded within Annuities segment for the three months ended March 31, 2026 and 2025 were primarily from PRT transactions with institutions in the United States. Premiums received from retail annuities are generally recorded as deposits and are not included in net premiums.

The Company’s Life Insurance business is principally provided by American National. Total premium revenues recorded within this segment for the three months ended March 31, 2026 and 2025 were primarily from transactions with U.S. retail customers.

In addition to DOE, the CODM also monitors the assets, including investments accounted for using the equity method, liabilities and equity attributable to each segment.


	Annuities		Life Insurance		Total (1)
	(Dollars in millions)
As of March 31, 2026
Assets	$	119,246	$	8,282	$	127,528
Liabilities	109,485		7,909		117,394
Equity	9,761		373		10,134

As of December 31, 2025
Assets	$	118,834	$	8,872	$	127,706
Liabilities	108,829		8,016		116,845
Equity	10,005		856		10,861

(1)Table excludes amounts related to Corporate and other which is not a reportable segment for ANGI.

A subsidiary of American National held $1.3 billion and $1.4 billion of assets pledged under a coinsurance reinsurance agreement with a customer domiciled in the United Kingdom as of March 31, 2026 and December 31, 2025, respectively. There were no other material assets held in jurisdictions outside of the United States as of March 31, 2026 and December 31, 2025.

There was no material revenue generated in jurisdictions outside of the United States for the three months ended March 31, 2026 and 2025.

25. Financial Commitments and Contingencies

Commitments

As of March 31, 2026, the Company and its subsidiaries, in aggregate, had outstanding unfunded commitments to purchase, expand or improve real estate and to fund mortgage loans, private loans and investment funds of $5.9 billion.

The Company’s subsidiaries lease office space, technological equipment and automobiles. The remaining long-term lease commitments as of March 31, 2026 were approximately $123 million and are included in the Company’s Condensed Consolidated Statements of Financial Position within “Other liabilities”.

Federal Home Loan Bank (“FHLB”) Agreements

Certain of the Company’s subsidiaries have access to the FHLB’s financial services including advances that provide an attractive funding source for short-term borrowing and for access to other funding agreements. As of March 31, 2026, certain municipal bonds and collateralized mortgage obligations with a fair value of approximately $782 million and commercial mortgage loans of approximately $1.1 billion were on deposit with the FHLB as collateral for borrowing. As of March 31, 2026, the collateral provided borrowing capacity of approximately $1.2 billion. The deposited securities and commercial mortgage loans are included in the Condensed Consolidated Statements of Financial Position within “Available-for-sale fixed maturity securities” and “Mortgage loans on real estate”, respectively.

Funding Agreements

Starting in 2025, we have a funding agreement-backed note (“FABN”) program under which a subsidiary of the Company (a statutory trust that is not consolidated or affiliated with us) issues its senior secured medium-term notes. The FABN notes are underwritten and marketed by major investment banks’ broker-dealer operations and are sold to institutional investors for the purposes of generating a spread-based return. As of March 31, 2026, we had $2.0 billion outstanding under the FABN program. The maximum aggregate principal amount permitted to be outstanding at any one time is $4.0 billion. In addition, we had $789 million outstanding under other funding agreements at March 31, 2026.

Litigation

Certain of the Company’s subsidiaries are defendants in various lawsuits concerning alleged breaches of contracts, various employment matters, allegedly deceptive insurance sales and marketing practices, and miscellaneous other causes of action arising in the ordinary course of operations. Certain lawsuits include claims for compensatory and punitive damages. The Company provides accruals for these items to the extent it deems the losses probable and reasonably estimable. After reviewing these matters with legal counsel, based upon information presently available, management is of the opinion that the ultimate resultant liability, if any, would not have a material adverse effect on the statements of financial position, liquidity or results of operations; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future.

Such speculation warrants caution, as the frequency of large damage awards, which bear little or no relation to the economic damages incurred by plaintiffs in some jurisdictions, continues to create the potential for an unpredictable judgment in any given lawsuit. These lawsuits are in various stages of development, and future facts and circumstances could result in management changing its conclusions. It is possible that, if the defenses in these lawsuits are not successful, and the judgments are greater than management can anticipate, the resulting liability could have a material impact on the Company’s financial position, liquidity, or results of operations. With respect to the existing litigation, management currently believes that the possibility of a material judgment adverse to the Company is remote. Accruals for losses are established whenever they are probable and reasonably estimable. If no one estimate within the range of possible losses is more probable than any other, an accrual is recorded based on the lowest amount of the range.

26. Discontinued Operations

As discussed in Note 1 - Organization and Description of the Company, the Company completed the transfer of the P&C Subsidiaries on October 1, 2025. The results of the P&C Subsidiaries have been presented as discontinued operations as the transfer represented a strategic shift for ANGI. The transfer of the P&C Subsidiaries resulted in the removal of the P&C segment which is further discussed in Note 24 - Segment Reporting.

The following table summarizes the major components of net income from discontinued operations, net of tax related to the distribution, for the three months ended March 31, 2025.


	Three Months Ended March 31, 2025
	(Dollars in millions)
Net premiums	$	431
Net investment income	24
Investment related losses	(7)
Other income	2
Total revenues	450

Policyholder benefits and claims incurred	286
Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired	80
Operating expenses	51
Total benefits and expenses	417

Net income before income taxes from discontinued operations	33
Income tax expense	7
Net income from discontinued operations	$	26

27. Subsequent Events

The Company evaluated all events and transactions through May 14, 2026, the date the accompanying condensed consolidated financial statements were issued.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's discussion and analysis reviews our unaudited condensed consolidated financial position at March 31, 2026 compared with December 31, 2025, and our unaudited condensed consolidated results of operations for the three months ended March 31, 2026 and 2025, and where appropriate, factors that may affect future financial performance. This analysis should be read in conjunction with our unaudited condensed consolidated financial statements, notes thereto and selected condensed consolidated financial data appearing elsewhere in this Form 10-Q as well as the December 31, 2025 audited consolidated financial statements included in the Form 10-K, filed with the SEC on March 30, 2026. Interim operating results for the three months ended March 31, 2026 are not necessarily indicative of the results expected for the entire year. Preparation of financial statements requires use of management estimates and assumptions.

Cautionary Statement Regarding Forward-Looking Information

All statements, trend analysis and other information contained in this report and elsewhere (such as in filings by us with the SEC, press releases, presentations by us or management or oral statements) may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements give expectations or forecasts of future events and do not relate strictly to historical or current facts. They may relate to markets for our products, trends in our operations or financial results, strategic alternatives, future operations, strategies, plans, partnerships, investments, share buybacks and other financial developments. They use words and terms such as anticipate, assume, believe, can, continue, could, enable, estimate, expect, foreseeable, goal, improve, intend, likely, may, model, objective, opportunity, outlook, plan, potential, project, remain, risk seek, should, strategy, target, will, would, and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all forms of speech and derivative forms, or similar words, as well as any projections of future events or results. Forward-looking statements, by their nature, are subject to a variety of assumptions, risks, and uncertainties that could cause actual results to differ materially from the results projected. Many of these risks and uncertainties cannot be controlled by the Company. Factors that may cause our actual decisions or results to differ materially from those contemplated by these forward-looking statements include, among other things:

•results differing from assumptions, estimates, and models.

•interest rate condition changes.

•investments losses or failures to grow as quickly as expected due to market, credit, liquidity, concentration, default, and other risks.

•option costs increases.

•counterparty credit risks.

•third parties service-provider failures to perform or to comply with legal or regulatory requirements.

•poor attraction and retention of customers or distributors due to competitors’ greater resources, broader array of products, and higher ratings.

•information technology and communication systems failures or security breaches.

•credit or financial strength downgrades.

•inability to raise additional capital to support our business and sustain our growth on favorable terms.

•U.S. and global capital market and economic deterioration due to major public health issues, including political or social developments, or otherwise.

•failure to authorize and pay dividends on our preferred stock.

•subsidiaries’ inability to pay dividends or make other payments to us.

•failure at reinsurance, investment management, or third-party capital arrangements.

•failure to prevent excessive risk-taking.

•failure of policies and procedures to protect from operational risks.

•increased litigation, regulatory examinations, and tax audits.

•changes to laws, regulations, accounting, and benchmarking standards.

•takeover or combination delays or deterrence by laws, corporate governance documents, or change-in-control agreements.

•effects of climate change, or responses to it.

•failure of efforts to meet environmental, social, and governance standards and to enhance sustainability.

For a detailed discussion of these and other factors that might affect our performance, see Item 1A of this report.

Overview of our Business

Through our insurance subsidiaries, our Company is focused on being a source of certainty for individuals and institutions through a range of insurance and retirement services. Our business is presently conducted through our subsidiaries under two operating segments: Annuities and Life Insurance.

Key Financial Data

The following table presents key financial data of the Company:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Total assets		$	130,406	$	123,434
Net loss attributable to American National Group Inc. common stockholder		(7)		(236)
Segment distributable operating earnings (1)		402		439

(1)Distributable Operating Earnings is a Non-GAAP measure. See “Reconciliation of Non-GAAP Measures”.

Results of Operations for the Three Months Ended March 31, 2026 and 2025

Net Premiums

The breakdown of premiums by product, net of ceded premiums is as follows:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Annuities
Retail (1)
Fixed Index		$	—	$	—
Fixed Rate		—		2

Total Retail Annuities		—		2
Institutional
Pension Risk Transfer (2)		62		376

Total Institutional Annuities		62		376

Total Annuities		62		378

Life		83		80

Total net premiums		$	145	$	458

(1)Premiums received from retail annuities are generally recorded as deposits and are not included in net premiums on the Condensed Consolidated Statements of Operations.

(2)Premiums differ from gross annuity sales in Pension Risk Transfer (PRT), since premiums are recognized as revenue when due while they are included in sales upon deal close, which is confirmed by the counterparty.

Comparison of Three Months Ended March 31, 2026 vs. 2025

For the three months ended March 31, 2026, we reported total net premiums of $145 million, compared to net premiums of $458 million for the same period in 2025. The decrease of $313 million is a result of a smaller PRT market during 2026.

Gross Annuity Sales

Gross annuity sales are comprised of directly written retail and institutional annuity deposits, which generally are not included in revenues on the Condensed Consolidated Statements of Operations.

The breakdown of gross annuity sales is as follows:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Retail:
Fixed Index		$	1,691	$	1,835
Fixed Rate		1,379		1,043
Other (1)		176		46
Total Retail Annuities		3,246		2,924

Institutional:
Pension Risk Transfer (2)		64		382
Funding Agreements		500		500
Total Institutional Annuities		564		882

Total gross annuity sales		$	3,810	$	3,806

(1)Other retail annuities represent sales of single premium immediate annuities and structured settlement annuities.

(2)Gross annuity sales differ from premiums in Pension Risk Transfer, since premiums are recognized as revenue when due while they are included in sales upon deal close, which is confirmed by the counterparty.

Comparison of Three Months Ended March 31, 2026 vs. 2025

For the three months ended March 31, 2026, we reported total gross annuity sales of $3.8 billion, compared to gross annuity sales of $3.8 billion in the prior year period. Annuity sales were largely consistent quarter over quarter led by increased sales in our fixed rate annuity product. This was offset by a decrease in PRT sales due to a smaller PRT market during 2026.

The following table summarizes the financial results of our business for the three months ended March 31, 2026 and 2025:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Net premiums		$	145	$	458
Other policy revenue		162		149
Net investment income		1,289		1,251
Investment related gains (losses)		(30)		3

Other income		34		28
Total revenues		1,600		1,889

Policyholder benefits and claims incurred		231		602
Interest sensitive contract benefits		545		512
Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired		272		238
Change in fair value of insurance-related derivatives and embedded derivatives		138		199
Change in fair value of market risk benefits		139		361

Operating expenses		206		224
Interest expense		49		44
Total benefits and expenses		1,580		2,180
Net income (loss) before income taxes		20		(291)
Income tax expense (benefit)		17		(62)
Income (loss) from continuing operations		3		(229)
Income from discontinuing operations, net of tax		—		26
Net income (loss)		3		(203)
Less: Net income from continuing operations attributable to noncontrolling interests, net of tax		4		3

Net loss attributable to American National Group Inc. stockholders		(1)		(206)
Less: Preferred stock dividends and redemption		6		30
Net loss attributable to American National Group Inc. common stockholder		$	(7)	$	(236)

Comparison of Three Months Ended March 31, 2026 vs. 2025

For the three months ended March 31, 2026, we reported a net loss of $(1) million, compared to a net loss of $(206) million for the same period in 2025. The change in net income (loss) is primarily driven by decreases in the expense associated with the change in fair value of market risk benefits and the expense associated with the change in fair value of insurance-related derivatives and embedded derivatives as a result of equity market and interest rate movements. Additionally, there was an increase in net investment income due to continued rotation into higher yielding investment strategies and a decrease in policyholder benefits and claims incurred, partially offset by a decrease in net premiums, due to lower PRT sales. Those impacts were partially offset by an increase in interest sensitive contract benefits and an increase in amortization of DAC, DSI, and VOBA which are a result of continued growth of the annuity business.

Net premiums and other policy revenue of $307 million decreased by $300 million for the three months ended March 31, 2026, compared to the same period in 2025 primarily due to lower PRT sales as compared to the prior year period due to a smaller PRT market during 2026.

Net investment income increased by $38 million for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily driven by the increase in assets under management due to sustained growth of the business as well as continued rotation into higher yielding investment strategies.

The Company realized investment related losses of $30 million for the three months ended March 31, 2026, compared to gains of $3 million for the same period in 2025. The decrease in investment gains of $33 million was primarily due to unrealized losses on equity securities during 2026.

Policyholder benefits and claims incurred decreased by $371 million for the three months ended March 31, 2026, compared to the same period in 2025. The decrease is primarily due to a reduction in PRT sales which resulted in lower reserve changes.

For the three months ended March 31, 2026, interest sensitive contract benefits increased compared to the same period in 2025 by $33 million which was primarily driven by an increase in the in-force block of annuity business due to continued growth of the business.

Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired increased by $34 million compared to the same period in 2025, primarily due to continued growth of the annuity business which increases the deferred acquisition cost and deferred sales inducements assets.

Change in fair value of insurance-related derivatives and embedded derivatives decreased by $61 million for the three months ended March 31, 2026 compared to the same period of 2025. The decrease was primarily due to the impact of interest rates and equity market performance on the fair value of the embedded derivatives and equity-indexed options.

The decrease in the change in fair value of market risk benefit of $222 million for the three months ended March 31, 2026 compared to the same period of 2025 was primarily due to the impact of interest rates and equity markets on the valuation of these liabilities.

Operating expenses decreased by $18 million for the three months ended March 31, 2026 compared to the same period in 2025, primarily driven by a one-time non-recurring transaction related expense in 2025.

Interest expense on borrowings increased by $5 million for the three months ended March 31, 2026 compared to the same period in 2025 primarily as a result of increased borrowings with senior notes issued in June 2025 and junior subordinated notes entered into in August 2025. These increases in interest expense were partially offset by recurring repayments of the term loan during 2025.

Income tax expense was $17 million for the three months ended March 31, 2026, resulting in an effective tax rate of 85.0%. This is compared to a $(62) million tax benefit and a 21.3% effective tax rate for the same period in 2025. For the three months ended March 31, 2026, the Company’s effective rate was higher than the statutory rate of 21% primarily due to the impact of permanent differences relative to comparatively low net income before income taxes. Items impacting the rate included changes to our Bermuda deferred tax asset and tax credit project expenses which resulted in a 70% increase in the effective tax rate. For the three month period ended March 31, 2025, the Company’s effective tax rate was not materially different from the statutory rate of 21%.

Income from discontinuing operations, net of tax was $0 million for the three months ended March 31, 2026 compared to $26 million for the same period in 2025. Income from discontinuing operations was largely attributable to improvements in our loss experience arising from underwriting actions implemented on the property casualty block of business which was disposed of during 2025 as discussed in Note 26 - Discontinued Operations.

Distributable Operating Earnings

We measure operating performance primarily using Distributable Operating Earnings (“DOE”) which is a Non-GAAP metric which measures our ability to acquire net insurance assets at a positive margin, and invest these assets at a return that is greater than the cost of policyholder liabilities. See “Performance Measures Used by Management” for the reconciliation of GAAP consolidated net income to DOE.

The following table presents DOE of each of our reporting segments for the three months ended March 31, 2026 and 2025:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Annuities		$	382	$	407
Life Insurance		20		32
Segment DOE		$	402	$	439

Comparison of Three Months Ended March 31, 2026 vs. 2025

Annuities – DOE decreased by $25 million for the three months ended March 31, 2026 compared to the same period in 2025. The decrease is primarily attributable to a decrease in net premiums and policyholder benefits due to a smaller PRT market during 2026 as well as an increase in interest sensitive contract benefits as a result of increased new business option costs and fixed interest. These changes were partially offset by increased investment income from our continued deployment into higher yielding investment strategies coupled with an increased asset base from annuity sales over the past twelve months.

Life Insurance – DOE decreased by $12 million for the three months ended March 31, 2026 compared to the same period in 2025. The decrease was driven by the continued impact of the executed RGA reinsurance treaty executed during the third quarter of 2024.

Financial Condition

Comparison as of March 31, 2026 and December 31, 2025

The following table summarizes the financial position as of March 31, 2026 and December 31, 2025:


	March 31, 2026		December 31, 2025
	(Dollars in millions)
Assets
Investments	$	93,560	$	90,516
Cash and cash equivalents	8,934		11,660
Accrued investment income	805		799
Deferred policy acquisition costs, deferred sales inducements and value of business acquired	11,615		11,513



Deferred tax asset	446		460
Reinsurance recoverables and deposit assets	9,092		9,255
Property and equipment	157		161
Intangible assets	1,483		1,501
Other assets	2,786		2,822
Goodwill	748		748
Separate account assets	780		822
Total assets	$	130,406	$	130,257

Liabilities
Future policy benefits	$	10,784	$	10,962
Policyholders’ account balances	94,081		92,992
Policy and contract claims	328		410

Market risk benefits	4,501		4,536

Due to related parties	109		103
Other policyholder funds	351		353
Notes payable	206		205

Long term borrowings	2,954		2,951
Funds withheld for reinsurance liabilities	2,969		3,088
Other liabilities	3,947		4,166
Separate account liabilities	780		822
Total liabilities	121,010		120,588

Equity


Preferred stock, Series D	292		292
Additional paid-in capital	6,467		6,404
Accumulated other comprehensive income, net of taxes	711		1,094
Retained earnings	1,756		1,759
Non-controlling interests	170		120
Total equity	9,396		9,669
Total liabilities and equity	$	130,406	$	130,257

March 31, 2026 vs. December 31, 2025

Total assets increased by $149 million during the period to $130.4 billion. The increase is primarily driven by net annuity inflows which results in increased cash and investment purchases as well as additional capitalization of deferred policy acquisition costs and deferred sales inducements due to continued strong annuity sales.

Total investments increased by $3.0 billion from December 31, 2025 to March 31, 2026. The increase is primarily driven by net annuity inflows and redeployment of cash and cash equivalents into fixed maturity investments resulting in increased investment purchases.

Cash and cash equivalents decreased by $2.7 billion from December 31, 2025 to March 31, 2026. The decrease is primarily driven by the deployment of funds into our investments. We continue to maintain a strong liquidity position across our segments. For further information, refer to “Liquidity and Capital Resources” section within this MD&A.

Deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”) and value of business acquired (“VOBA”) are capitalized costs directly related to writing new policyholder contracts and include the VOBA intangible assets. During the year, the balance increased by $102 million primarily driven by deferrals associated with writing new business during the period.

Deferred tax assets decreased by $14 million from December 31, 2025 to March 31, 2026. The decrease is primarily due to changes in the deferred tax asset related to the Bermuda corporate income tax.

Reinsurance recoverables and deposit assets are estimated amounts due to the Company from reinsurers and include reinsurance receivables and recoverables from reinsurers and deposit assets associated with reinsurance agreements. The amount decreased by $163 million primarily driven by a reduction in the associated insurance liabilities as well as the run off of certain blocks of business ceded to external reinsurers.

Intangible assets decreased by $18 million during the year, primarily due to the amortization of intangible assets during the period.

Other assets decreased by $36 million during the year to $2.8 billion. The balance includes current tax asset, market risk benefit asset, as well as other miscellaneous receivables, and is primarily attributable to a decrease in the current tax assets as a result of changes to net income (loss) before income taxes.

Separate account assets and liabilities both decreased by $42 million during 2026, primarily due to policyholder benefits and withdrawals during the quarter as well as net realized losses on investments.

Future policy benefits and policyholders’ account balances increased by $911 million during 2026 primarily driven by annuity sales during the period and the impact of changes in interest rates and equity markets on the valuation of the embedded derivatives during the period.

Market risk benefits decreased by $35 million during 2026 primarily due to the impact of changes in interest rates and equity markets.

Funds withheld for reinsurance liabilities decreased by $119 million during 2026 as a result of decrements on the existing ceded liabilities and the corresponding funds withheld payable as flow business is not being ceded to external reinsurers.

Other liabilities decreased by $219 million during 2026. The balance includes the reinsured market risk benefits liability, accrued interest on debt and other miscellaneous payables. The decrease during 2026 is primarily driven by a decrease in deferred tax liabilities as a result of changes in unrealized gains or losses and future policy benefits and a decrease in miscellaneous payables due to timing.

Liquidity and Capital Resources

Capital Resources

We strive to maintain sufficient financial liquidity at all times so that we are able to participate in attractive opportunities as they arise, better withstand sudden adverse changes in economic circumstances within our operating subsidiaries and maintain payments to policyholders. Our principal sources of liquidity are cash flows from our operations and access to the Company’s third-party credit facilities. We proactively manage our liquidity position to meet liquidity needs and continue to develop relationships with lenders who provide borrowing capacity at competitive rates, while looking to minimize adverse impacts on investment returns. We look to structure the ownership of our assets to enhance our ability to monetize them to provide additional liquidity, if needed. Our liquidity for the periods noted below consisted of the following:


	March 31, 2026		December 31, 2025
	(Dollars in millions)
Cash and cash equivalents	$	8,934	$	11,660
Liquid financial assets	43,112		42,041
Undrawn credit facilities	1,236		1,505
Total liquidity (1)	$	53,282	$	55,206

(1)Total Liquidity is a Non-GAAP measure. See “Performance Measures used by Management.”

Today, we have significant liquidity within our insurance portfolios, giving us flexibility to secure attractive investment opportunities. In addition to a portfolio of highly liquid financial assets, our operating companies have additional access to liquidity from sources such as the Federal Home Loan Bank (“FHLB”) and access to a sub-allocation under the Brookfield Wealth Solutions revolving credit facility. As of March 31, 2026, the Company had no drawings and a total of $1.2 billion undrawn commitment available related to the FHLB program, and access to $500 million of capacity under the revolving credit facility.

Liquidity within our insurance subsidiaries may be restricted from time to time due to regulatory constraints. As of March 31, 2026, the Company’s total liquidity was $53.3 billion, which included $502 million of cash and cash equivalents held outside of the regulated insurance companies.

Comparison of the Three Months Ended March 31, 2026 and 2025

The following table presents a summary of our cash flows and ending cash balances for the three months ended March 31, 2026 and 2025:


	Three Months Ended March 31,
	2026		2025
	(Dollars in millions)
Operating activities	$	699	$	672
Investing activities	(4,314)		(5,748)
Financing activities	889		1,265
Cash and cash equivalents:
Cash and cash equivalents, beginning of period	11,660		11,330
Net change during the period	(2,726)		(3,811)

Cash and cash equivalents, end of period	8,934		7,519
Less: Cash and cash equivalents of discontinued operations	—		496
Cash and cash equivalents, end of period	$	8,934	$	7,023

Operating Activities

For the three months ended March 31, 2026, we generated $699 million of cash from operating activities compared to $672 million during 2025, primarily due to an increase in net investment income due to continued rotation into higher yielding investment strategies for three months ended March 31, 2026 compared to the three months ended March 31, 2025 as detailed above.

Investing Activities

For the three months ended March 31, 2026, cash outflows arose as we deployed cash and cash equivalents held as of December 31, 2025 to primarily short-term investments and available-for-sale fixed maturity securities and continued to rotate our investment portfolio into higher yielding investment strategies. This resulted in net deployment of $4.3 billion of cash from investing activities, compared to net deployment of $5.7 billion in the prior year.

Financing Activities

For the three months ended March 31, 2026, we recorded a net cash inflow of $889 million from our financing activities, compared to net inflow of $1.3 billion recorded in 2025. The proceeds in the current year period were mainly as a result of $891 million net payments received on policyholders’ account deposits partially offset by withdrawals on such accounts.

Financial Instruments

To the extent that we believe it is economically prudent to do so, our strategy is to hedge a portion of our equity investments and/or cash flows exposed to foreign currencies by the Company. The following key principles form the basis of our foreign currency hedging strategy:

•We leverage any natural hedges that may exist within our operations;

•We utilize local currency debt financing to the extent possible; and

•We may utilize derivative contracts to the extent that natural hedges are insufficient.

Future Capital Obligations and Requirements

As of March 31, 2026, the Company and its subsidiaries, in aggregate, had outstanding investment commitments of $5.9 billion. The funded commitments are primarily recognized as mortgage loans, private loans, investment funds, investment real estate and other invested assets. For additional information, see Note 25 - Financial Commitments and Contingencies of the financial statements.

The following is the maturity by year on long term borrowings:


	Payments Due by Year
	Total		Unamortized Discount and Issuance Costs		Less Than 1 year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		More Than 5 Years
	(Dollars in millions)
As of March 31, 2026

Long term borrowings	$	2,954	$	(46)	$	—	$	600	$	—	$	600	$	—	$	1,800

As of December 31, 2025

Long term borrowings	$	2,951	$	(49)	$	—	$	600	$	—	$	600	$	—	$	1,800

For additional information, See Note 19 - Long Term Borrowings of the financial statements.

Capital Management

Capital management is the on-going process of determining and maintaining the quantity and quality of capital appropriate to take advantage of the Company’s growth opportunities, to support the risks associated with the business and to optimize shareholder returns while fully complying with the regulatory capital requirements.

The Company and its subsidiaries take an integrated approach to risk management that involves the Company’s risk appetite and capital requirements. The operating capital levels are determined by the Company’s risk appetite and Own Risk and Solvency Assessment (“ORSA”). Furthermore, additional stress techniques are used to evaluate the Company’s capital adequacy under sustained adverse scenarios.

American National and AEL are required to follow Risk Based Capital (“RBC”) requirements based on guidelines of the National Association of Insurance Commissioners (“NAIC”). RBC is a method of measuring the level of capital appropriate for an insurance company to support its overall business operations, in light of its size and risk profile. It provides a means of assessing capital adequacy, where the degree of risk taken by the insurer is the primary determinant.

The Company has determined that it is in compliance with all capital requirements as of March 31, 2026 and December 31, 2025.

Performance Measures Used by Management

To measure performance, we focus on net income and total assets, as well as certain Non-GAAP measures, including DOE and Total Liquidity, which we believe are useful to investors to provide additional insights into assets within the business available for redeployment. See “Results of Operations”, “Financial Condition,” and “Liquidity and Capital Resources” sections of this MD&A for further discussion on our performance and Non-GAAP measures for the three months ended March 31, 2026 and 2025.

Non-GAAP Measures

We regularly monitor certain Non-GAAP measures that are used to evaluate our performance and analyze underlying business performance and trends. We use these measures to establish budgets and operational goals, manage our business and evaluate our performance. We also believe that these measures help investors compare our operating performance with our results in prior years. These Non-GAAP financial measures are provided as supplemental information to the financial measures presented in this MD&A that are calculated and presented in accordance with GAAP. These Non-GAAP measures are not comparable to GAAP and may not be comparable to similarly described Non-GAAP measures reported by other companies, including those within our industry.

Consequently, our Non-GAAP measures should not be evaluated in isolation, but rather, should be considered together with the most directly comparable GAAP measure in our condensed consolidated financial statements for the years presented. The Non-GAAP financial measures we present in this MD&A should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP.

Distributable Operating Earnings

We use DOE to assess operating results and the performance of our businesses. We define DOE as net income after applicable taxes, excluding the impact of depreciation and amortization, deferred income taxes related to basis and other changes, and breakage and transaction costs, as well as certain investment and insurance reserve gains and losses, including gains and losses related to asset and liability matching strategies, non-operating adjustments related to changes in cash flow assumptions for future policy benefits and change in market risk benefits. DOE is inclusive of returns on equity invested in certain variable interest entities and our share of adjusted earnings from our investments in certain associates.

DOE is a measure of operating performance that is not calculated in accordance with, and does not have any standardized meaning prescribed by GAAP. DOE is, therefore, unlikely to be comparable to similar measures presented by other issuers.

We believe our presentation of DOE is useful to investors because it supplements investors’ understanding of our operating performance by providing information regarding our ongoing performance that excludes items we believe do not directly affect our core operations. Our presentation of DOE also provides investors enhanced comparability of our ongoing performance across years.

Total Liquidity

Total Liquidity is a measure of our liquidity position and includes cash and cash equivalents, undrawn revolving credit facilities and liquid financial assets held by our regulated insurance entities.

The following table contains further details regarding our use of our Non-GAAP measures, as well as a reconciliation of GAAP consolidated net income from continuing operations to DOE:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Loss from continuing operations (1)		$	(7)	$	(262)
Mark-to-market losses (gains) on investments, including reinsurance funds withheld (2)		137		75
Mark-to-market losses (gains) on insurance contracts and other net assets (3)(4)		162		582
Deferred income tax expense (recovery) relating to basis and other changes		(51)		(138)
Transaction costs		26		32
Depreciation and amortization expenses		39		52
Corporate and other DOE		96		98
Segment DOE		$	402	$	439

(1)Loss from continuing operations is net loss attributable to American National Group Inc. common stockholder less income from discontinuing operations, net of tax.

(2)“Mark-to-market losses (gains) on investments, including reinsurance funds withheld” primarily represent mark-to-market gains or losses on our investments and reinsurance funds withheld. Mark-to-market gains or losses on our invested assets are presented as “Investment related gains (losses)” on the Condensed Consolidated Statements of Operations. See Note 10 - Net Investment Income and Investment Related Gains (Losses) in the notes to the condensed consolidated financial statements for additional details.

(3)“Mark-to-market losses (gains) on insurance contracts and other net assets” principally represents the mark-to-market effect on insurance-related liabilities, net of reinsurance, due to changes in market risks (e.g., interest rates, equity markets and equity index volatility). These mark-to-market effects are primarily included in “Interest sensitive contract benefits”, “Change in fair value of insurance-related derivatives and embedded derivatives” and “Change in fair value of market risk benefits” on the Condensed Consolidated Statements of Operations. See the following notes to the condensed consolidated financial statements for additional information: (i) Note 9 - Derivative Instruments; (ii) Note 17 - Policyholders' Account Balances; and (iii) Note 18 - Market Risk Benefits.

(4)Included in “Mark-to-market losses (gains) on insurance contracts and other net assets” are “returns on equity invested in certain variable interest entities” and “our share of adjusted earnings from our investments in certain associates” as stated in the definition of DOE. “Returns on equity invested in certain variable interest entities” primarily represent equity-accounted income from our investments in real estate partnerships and investment funds and are included in “Net investment income” on the Condensed Consolidated Statements of Operations.

New Accounting Pronouncements

See Note 2 - Summary of Significant Accounting Policies to our unaudited condensed consolidated financial statements in this Form 10-Q, which is incorporated by reference in this Item 2.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market Risk

Our Condensed Consolidated Statements of Financial Position within our financial statements include substantial amounts of assets and liabilities whose fair values are subject to market risks. Our significant market risks are primarily associated with interest rates, foreign currency exchange rates and credit risk. The fair values of our investment portfolios remain subject to considerable volatility. The following sections address the significant market risks associated with our business activities.

Foreign Exchange Rate Risk

The Company’s obligations under its insurance contracts are predominantly denominated in U.S. dollars, but a portion of the assets supporting these liabilities are denominated in non-U.S. dollars. In addition, we have exposure to foreign currency risk in connection with a U.K. pension risk transfer transaction that we are reinsuring. We manage foreign exchange risk primarily using foreign exchange forwards and cross currency swaps. Our investment policy sets out the foreign currency exposure limits and types of derivatives permitted for hedging purposes. Our net assets are subject to financial statement translation into U.S. dollars. All of our financial statement translation-related impact from changes in foreign currency rates is recorded in other comprehensive income. Gains and losses from foreign currency transactions of the Company’s invested assets are reported in “Investment related gains (losses)” in the Condensed Consolidated Statements of Operations. The impact on net income resulting from a hypothetical 10% decrease in foreign currencies against the U.S. Dollar, net of the impact of foreign exchange hedging strategies, would not be expected to be material.

Interest Rate Risk

Substantial and sustained increases or decreases in interest rates may cause certain market dislocations that could negatively impact our financial performance.

We manage interest rate risk through our asset liability management, which we refer to as ALM, the framework whereby the effective and key rate durations of the investment portfolio are closely matched to those of the insurance liabilities. Within the context of the ALM framework, we use derivatives including interest rate swaps, options and futures to reduce market risk. For the annuities business, where the timing and amount of the benefit payment obligations can be readily determined, the matching of asset and liability cash flows is effectively controlled through this comprehensive duration management process.

Other Price Risk

Other price risk is the risk of variability in fair value due to movements in equity prices or other market prices such as commodity prices and credit spreads.

The Company’s exposure to the equity markets is managed by sector and individual security, and the Company mitigates the equity price risk by diversification of the investment portfolio.

The Company also has equity price risk associated with the equity-indexed life and annuity products the Company issues and assumes. The Company has entered into derivative transactions, primarily over-the-counter equity call options, to hedge the exposure to equity-index changes.

Credit Risk

Credit risk is the risk of loss from amounts owed by counterparties and arises any time funds are extended, committed, owed or invested through actual or implied contractual arrangements, including reinsurance. The Company is primarily exposed to credit risk through its fixed income investments, which include debt securities and private loans.

We manage exposure to credit risk by establishing concentration limits by counterparty, credit rating and asset class. To further minimize credit risk, the financial condition of the counterparties is monitored on a regular basis. These requirements are outlined in our investment policy.

Insurance Risk

The Company makes assumptions and estimates when assessing insurance and reinsurance risks, and significant deviations, particularly with regards to mortality, morbidity, longevity and other policyholder behavior, could adversely affect our business, financial condition, results of operations, liquidity and cash flows. All transaction terms are likely to be determined by qualitative and quantitative factors, including our estimates.

We manage insurance risk through choosing whether to purchase reinsurance for certain amounts of risk underwritten in our Annuities and Life Insurance segments.

Legal Risk

In the future, we may be parties in actions that routinely arise out of the normal course of business, including legal actions seeking to establish liability directly through insurance contracts. Plaintiffs occasionally seek punitive or exemplary damages. We do not believe that such normal and routine litigation will have a material effect on our financial condition or results of operations. We are also involved from time to time in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines and penalties. We believe that any liability that may arise as a result of other pending legal actions will not have a material effect on our financial statements.

Operational Risk

Operational risk is the potential for loss resulting from inadequate or failed internal processes, people and systems, or from external events. The Company’s internal control processes are supported by the maintenance of a risk register and independent internal audit review. The risk of fraud is managed through a number of processes including background checks on staff on hire, annual code of conduct confirmations, anti-bribery training and segregation of duties.

We have outsourcing arrangements in respect of certain administrative and operational functions. These arrangements are subject to agreements with formal service levels, operate within agreed authority limits and are subject to regular review by senior management. Material outsourcing arrangements are approved and monitored by the Board of Directors.

Disaster recovery and business continuity plans have also been established to manage the Company’s ability to operate under adverse conditions.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

In accordance with Exchange Act Rules 13a-15(e) and 15d-15(e), our management, under the supervision of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report on Form 10-Q. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded the design and operation of our disclosure controls and procedures were effective as of March 31, 2026 in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by us in the reports that we file or submit under the Exchange Act.

There were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

See Note 25 - Financial Commitments and Contingencies to the unaudited condensed consolidated financial statements in this Form 10-Q, which is incorporated by reference in this Item 1, for any required disclosure.

Item 1A. Risk Factors

We describe certain factors that may affect our business or operations under "Risk Factors" in Part I, Item 1A, of our 2025 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

During the three months ended March 31, 2026, none of the Company’s directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any contract, instruction, or written plan for the purchase or sale of the Company’s securities intended to satisfy the conditions of the affirmative defense provided by Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits

Note Regarding Reliance on Statements in Our Contracts and Other Exhibits: We include agreements and other exhibits to this report to provide information regarding their terms and not to provide any other factual or disclosure information about us, our subsidiaries or affiliates, or the other parties to the agreements, or for any other purpose. The agreements and other exhibits may contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement or other arrangement and (i) should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) have in many cases been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; (iii) may apply standards of materiality in a way that is different from what may be viewed as material to investors; and (iv) were made only as of the date of the applicable agreement or other exhibit, or such other date or dates as may be specified in the document and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time.


Exhibit Number						Description
3.1						Certificate of Incorporation of American National Group Inc. (Incorporated by reference to Exhibit 3.2 to Form 8-K filed on May 8, 2024)
3.2						Certificate of Amendment to the Certificate of Incorporation of American National Group Inc. (including the Certificate of Designations with respect to the Series D Preferred Stock of the Company) (Incorporated by reference to Exhibit 3.1 to Form 8-K filed on January 10, 2025)
3.3						Bylaws of American National Group Inc. (Incorporated by reference to Exhibit 3.3 to Form 8-K filed on May 8, 2024)
31.1						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101						The following materials from American National Group Inc.'s Quarterly Report on Form 10-Q for the period ended March 31, 2026 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Financial Position, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Changes in Stockholders' Equity, (v) the Condensed Consolidated Statements of Cash Flows and (vi) the Notes to Condensed Unaudited Consolidated Financial Statements.
104						The cover page from American National Group Inc.'s Quarterly Report on Form 10-Q for the period ended March 31, 2026 formatted in iXBRL and contained in Exhibit 101.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:

May 14, 2026

AMERICAN NATIONAL GROUP INC.

By:

/s/ Reza Syed

Reza Syed

Chief Financial Officer & Executive Vice President