Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Fair Value and Carrying Value of Financial Instruments

The following table summarizes the fair value and carrying value of the Company’s financial instruments (in millions):


		September 30, 2025				December 31, 2024
		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
	Debt securities (1)	$	49,569	$	49,569	$	43,335	$	43,335
	Equity securities	180		180		197		197
	Mortgage loans (1)	9,920		9,619		9,911		9,351
	Limited partnerships	2,704		2,704		2,505		2,505
	Policy loans (1)	4,487		4,487		4,403		4,403
	Freestanding derivative instruments	486		486		297		297
	FHLBI capital stock	119		119		127		127
	Cash and cash equivalents	4,562		4,562		3,767		3,767
	Reinsurance recoverable on market risk benefits	116		116		121		121
	Market risk benefit assets	8,521		8,521		8,899		8,899
	Separate account assets	239,046		239,046		229,143		229,143

Liabilities
	Annuity reserves (2)	43,569		42,872		38,640		36,522
	Market risk benefit liabilities	3,733		3,733		3,774		3,774
	Guaranteed investment contracts and funding agreements (3)	10,877		10,920		8,384		8,271
	Funds withheld payable under reinsurance treaties (1)	15,498		15,498		16,742		16,742
	Long-term debt	2,030		1,888		2,034		1,836
	Securities lending payable (4)	29		29		14		14
	Freestanding derivative instruments	199		199		361		361
	Notes issued by consolidated VIEs	2,618		2,618		2,343		2,343
	Repurchase agreements (4)	1,003		1,003		1,540		1,540
	FHLB advances (5)	—		—		700		700
	Separate account liabilities	239,046		239,046		229,143		229,143

(1) Includes items carried at fair value under the fair value option included as a component of debt securities. (2) Annuity reserves exclude contracts classified as insurance contracts. (3) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets. (4) Included as a component of repurchase agreements and securities lending payable on the Condensed Consolidated Balance Sheets. (5) Included as a component of other liabilities on the Condensed Consolidated Balance Sheets.

Schedule of Fair Value Option

The fair value and aggregate contractual principal for mortgage loans where the fair value option was elected after December 31, 2021, were as follows (in millions):


	September 30, 2025		December 31, 2024
Fair value	$	349	$	449
Aggregate contractual principal	358		464

Schedule of Assets and Liabilities Carried at Fair Value by Hierarchy Levels

The following tables summarize the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in millions):


		September 30, 2025
		Total		Level 1		Level 2		Level 3
Assets
	Debt securities
	U.S. government securities	$	3,223	$	3,223	$	—	$	—
	Other government securities	1,088		—		1,088		—
	Public utilities	6,007		—		6,007		—
	Corporate securities	31,928		—		31,531		397
	Residential mortgage-backed	349		—		349		—
	Commercial mortgage-backed	1,761		—		1,761		—
	Other asset-backed securities	5,213		—		4,737		476
	Equity securities	180		10		163		7
	Mortgage loans	349		—		—		349
	Limited partnerships (1)	284		—		—		284
	Policy loans	3,592		—		—		3,592
	Freestanding derivative instruments	486		—		486		—

	Cash and cash equivalents	4,562		4,562		—		—
	Reinsurance recoverable on market risk benefits	116		—		—		116
	Market risk benefit assets	8,521		—		—		8,521
	Separate account assets	239,046		—		239,046		—
	Total	$	306,705	$	7,795	$	285,168	$	13,742

Liabilities
	Embedded derivative liabilities (2)	$	6,275	$	—	$	6,275	$	—
	Funds withheld payable under reinsurance treaties (3)	1,987		—		—		1,987
	Freestanding derivative instruments	199		—		199		—
	Notes issued by consolidated VIEs	2,618		—		2,618		—
	Market risk benefit liabilities	3,733		—		—		3,733
	Total	$	14,812	$	—	$	9,092	$	5,720

	(1) Excludes $2,420 million of limited partnership investments measured at NAV equivalent.
	(2) Includes the embedded derivative liabilities of $5,439 million related to RILA and $836 million liability of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.
	(3) Includes the Athene embedded derivative asset of $1,788 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.


		December 31, 2024
		Total		Level 1		Level 2		Level 3
Assets
	Debt securities
	U.S. government securities	$	3,159	$	3,159	$	—	$	—
	Other government securities	1,094		—		1,094		—
	Public utilities	5,156		—		5,112		44
	Corporate securities	27,978		—		27,704		274
	Residential mortgage-backed	338		—		338		—
	Commercial mortgage-backed	1,577		—		1,577		—
	Other asset-backed securities	4,033		—		3,372		661
	Equity securities	197		9		181		7
	Mortgage loans	449		—		—		449
	Limited partnerships (1)	195		—		—		195
	Policy loans	3,489		—		—		3,489
	Freestanding derivative instruments	297		—		297		—
	Cash and cash equivalents	3,767		3,767		—		—
	Reinsurance recoverable on market risk benefits	121		—		—		121
	Market risk benefit assets	8,899		—		—		8,899
	Separate account assets	229,143		—		229,143		—
	Total	$	289,892	$	6,935	$	268,818	$	14,139

Liabilities
	Embedded derivative liabilities (2)	$	3,942	$	—	$	3,942	$	—
	Funds withheld payable under reinsurance treaties (3)	1,353		—		—		1,353
	Freestanding derivative instruments	361		—		361		—
	Notes issued by consolidated VIEs	2,343		—		2,343		—
	Market risk benefit liabilities	3,774		—		—		3,774
	Total	$	11,773	$	—	$	6,646	$	5,127

	(1) Excludes $2,310 million of limited partnership investments measured at NAV equivalent.
	(2) Includes the embedded derivative liabilities of $3,065 million related to RILA and $877 million of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.
	(3) Includes the Athene embedded derivative asset of $2,314 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

Schedule of Balances of Level 3 Assets and Liabilities Measured at Fair Value with Corresponding Pricing Sources

The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions):


	September 30, 2025
Assets	Total		Internal		External
Debt securities:


Corporate	$	397	$	31	$	366
Other asset-backed securities	476		48		428
Equity securities	7		1		6
Mortgage loans	349		—		349
Limited partnerships	284		1		283
Policy loans	3,592		3,592		—
Reinsurance recoverable on market risk benefits	116		116		—
Market risk benefit assets	8,521		8,521		—
Total	$	13,742	$	12,310	$	1,432

Liabilities
Funds withheld payable under reinsurance treaties (1)	1,987		1,987		—
Market risk benefit liabilities	3,733		3,733		—
Total	$	5,720	$	5,720	$	—

(1) Includes the Athene Embedded Derivative asset of $1,788 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

	December 31, 2024
Assets	Total		Internal		External
Debt securities:

Public utilities	$	44	$	44	$	—
Corporate	274		47		227
Other asset-backed securities	661		28		633
Equity securities	7		1		6
Mortgage loans	449		—		449
Limited partnerships	195		1		194
Policy loans	3,489		3,489		—
Reinsurance recoverable on market risk benefits	121		121		—
Market risk benefit assets	8,899		8,899		—
Total	$	14,139	$	12,630	$	1,509

Liabilities
Funds withheld payable under reinsurance treaties (1)	1,353		1,353		—
Market risk benefit liabilities	3,774		3,774		—
Total	$	5,127	$	5,127	$	—

(1) Includes the Athene Embedded Derivative asset of $2,314 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

Schedule of Quantitative Information on Significant Internally-Priced Level 3 Assets and Liabilities

The table below presents quantitative information on internally-priced Level 3 assets and liabilities that use significant unobservable inputs (dollar amounts in millions):

As of September 30, 2025

Fair
Value

Valuation Technique(s)

Significant Unobservable Input(s)

Assumption or Input Range

Impact of Increase in Input on Fair Value

Assets

Reinsurance recoverable on market risk benefits

116

Discounted cash
flow

Mortality(1)

0.01% - 20.63%

Increase

Lapse(2)

1.47% - 8.10%

Increase

Utilization(3)

0.00% - 50.00%

Decrease

Withdrawal(4)

41.00% - 46.50%

Decrease

Non-performance risk adjustment(5)

0.23% - 1.03%

Increase

Long-term Equity Volatility(6)

18.50%

Decrease

Market risk benefit assets

8,521

Discounted cash flow

Mortality(1)

0.00% - 23.47%

Increase

Lapse(2)

0.05% - 30.76%

Increase

Utilization(3)

0.00% - 100.00%

Decrease

Withdrawal(4)

4.00% - 100.00%

Decrease

Non-performance risk adjustment(5)

0.55% - 1.49%

Increase

Long-term Equity Volatility(6)

18.50%

Decrease

Liabilities

Market risk benefit liabilities

3,733

Discounted cash flow

Mortality(1)

0.00% - 23.47%

Decrease

Lapse(2)

0.05% - 30.76%

Decrease

Utilization(3)

0.00% - 100.00%

Increase

Withdrawal(4)

4.00% - 100.00%

Increase

Non-performance risk adjustment(5)

0.55% - 1.49%

Decrease

Long-term Equity Volatility(6)

18.50%

Increase

(1) Mortality rates vary by attained age, tax qualification status, guaranteed benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied.

(2) Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and guaranteed benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse applying when benefits are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when guaranteed benefits are utilized.

(3) The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money.

(4) The withdrawal rate represents the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount under the free partial withdrawal provision or the GMWB, as applicable. Free partial withdrawal rates vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions.

(5) Non-performance risk adjustment is applied as a spread over the risk-free rate to determine the rate used to discount the related cash flows and varies by projection year.

(6) Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.

As of December 31, 2024

Fair
Value

Valuation Technique(s)

Significant Unobservable Input(s)

Assumption or Input Range

Impact of Increase in Input on Fair Value

Assets

Reinsurance recoverable on market risk benefits

121

Discounted cash flow

Mortality(1)

0.01% - 20.63%

Increase

Lapse(2)

1.47% - 8.10%

Increase

Utilization(3)

0.00% - 50.00%

Decrease

Withdrawal(4)

41.00% - 46.50%

Decrease

Non-performance risk adjustment(5)

0.35% - 1.20%

Increase

Long-term Equity Volatility(6)

18.50%

Decrease

Market risk benefit assets

8,899

Discounted cash flow

Mortality(1)

0.00% - 23.47%

Increase

Lapse(2)

0.05% - 30.76%

Increase

Utilization(3)

0.00% - 100.00%

Decrease

Withdrawal(4)

4.00% - 100.00%

Decrease

Non-performance risk adjustment(5)

0.65% - 1.75%

Increase

Long-term Equity Volatility(6)

18.50%

Decrease

Liabilities

Market risk benefit liabilities

3,774

Discounted cash flow

Mortality(1)

0.00% - 23.47%

Decrease

Lapse(2)

0.05% - 30.76%

Decrease

Utilization(3)

0.00% - 100.00%

Increase

Withdrawal(4)

4.00% - 100.00%

Increase

Non-performance risk adjustment(5)

0.65% - 1.75%

Decrease

Long-term Equity Volatility(6)

18.50%

Increase

(5) Non-performance risk adjustment is applied as a spread over the risk-free rate to determine the rate used to discount the related cash flows and varies by projection year.

(6) Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.

Schedule of Rollforwards of Financial Instruments for Which Significant Unobservable Inputs (Level 3) are Used - Assets

The tables below provide roll-forwards for the three and nine months ended September 30, 2025 and 2024 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the tables below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 may vary significantly from the total income effect of the hedged instruments.


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of		Net		Other		Issuances		in and/or		as of
		July 1,		Income		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2025		2025		(Loss)		Income (Loss)		Settlements		Level 3		2025
Assets
	Debt securities


	Corporate securities	$	374	$	(1)	$	2	$	(1)	$	23	$	397
	Other asset-backed securities	852		(12)		5		(34)		(335)		476
	Equity securities	7		—		—		—		—		7
	Mortgage loans	393		(2)		—		(42)		—		349
	Limited partnerships	205		6		—		73		—		284
	Policy loans	3,540		73		—		(21)		—		3,592
	Reinsurance recoverable on market risk benefits	111		5		—		—		—		116
	Market risk benefit assets	8,721		(200)		—		—		—		8,521

Liabilities
	Funds withheld payable under reinsurance treaties	(1,784)		(269)		—		66		—		(1,987)
	Market risk benefit liabilities	(3,569)		421		(585)		—		—		(3,733)


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of		Net		Other		Issuances		in and/or		as of
		July 1,		Income		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2024		2024		(Loss)		Income (Loss)		Settlements		Level 3		2024
Assets
	Debt securities
	Other government securities	$	151	$	—	$	5	$	—	$	—	$	156
	Public utilities	44		—		(12)		—		55		87
	Corporate securities	73		3		2		21		11		110
	Other asset-backed securities	919		(1)		15		(11)		(21)		901
	Equity securities	7		—		—		—		—		7
	Mortgage loans	430		4		—		(2)		—		432
	Limited partnerships	152		12		—		8		—		172
	Policy loans	3,511		68		—		(44)		—		3,535
	Reinsurance recoverable on market risk benefits	121		28		—		—		—		149
	Market risk benefit assets	8,556		(941)		—		—		—		7,615

Liabilities
	Funds withheld payable under reinsurance treaties	(1,161)		(601)		—		43		—		(1,719)
	Market risk benefit liabilities	(3,890)		(260)		(234)		—		—		(4,384)


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of		Net		Other		Issuances		in and/or		as of
		January 1,		Income		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2025		2025		(Loss)		Income (Loss)		Settlements		Level 3		2025
Assets
	Debt securities

	Public utilities	$	44	$	—	$	—	$	(44)	$	—	$	—
	Corporate securities	274		9		5		96		13		397
	Other asset-backed securities	661		(64)		33		111		(265)		476
	Equity securities	7		—		—		—		—		7
	Mortgage loans	449		5		—		(105)		—		349
	Limited partnerships	195		15		—		74		—		284
	Policy loans	3,489		144		—		(41)		—		3,592
	Reinsurance recoverable on market risk benefits	121		(5)		—		—		—		116
	Market risk benefit assets	8,899		(378)		—		—		—		8,521

Liabilities
	Funds withheld payable under reinsurance treaties	(1,353)		(673)		—		39		—		(1,987)
	Market risk benefit liabilities	(3,774)		566		(525)		—		—		(3,733)


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of		Net		Other		Issuances		in and/or		as of
		January 1,		Income		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2024		2024		(Loss)		Income (Loss)		Settlements		Level 3		2024
Assets
	Debt securities
	Other government securities	$	150	$	—	$	6	$	—	$	—	$	156
	Public utilities	41		(1)		(11)		3		55		87
	Corporate securities	83		8		1		19		(1)		110
	Other asset-backed securities	975		(1)		15		(67)		(21)		901
	Equity securities	8		(1)		—		—		—		7
	Mortgage loans	481		1		—		(50)		—		432
	Limited partnerships	135		19		—		18		—		172
	Policy loans	3,457		179		—		(101)		—		3,535
	Reinsurance recoverable on market risk benefits	149		—		—		—		—		149
	Market risk benefit assets	6,737		878		—		—		—		7,615

Liabilities
	Funds withheld payable under reinsurance treaties	(1,158)		(657)		—		96		—		(1,719)
	Market risk benefit liabilities	(4,785)		1,184		(783)		—		—		(4,384)

Schedule of Rollforwards of Financial Instruments for Which Significant Unobservable Inputs (Level 3) are Used - Liabilities


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of		Net		Other		Issuances		in and/or		as of
		July 1,		Income		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2025		2025		(Loss)		Income (Loss)		Settlements		Level 3		2025
Assets
	Debt securities


	Corporate securities	$	374	$	(1)	$	2	$	(1)	$	23	$	397
	Other asset-backed securities	852		(12)		5		(34)		(335)		476
	Equity securities	7		—		—		—		—		7
	Mortgage loans	393		(2)		—		(42)		—		349
	Limited partnerships	205		6		—		73		—		284
	Policy loans	3,540		73		—		(21)		—		3,592
	Reinsurance recoverable on market risk benefits	111		5		—		—		—		116
	Market risk benefit assets	8,721		(200)		—		—		—		8,521

Liabilities
	Funds withheld payable under reinsurance treaties	(1,784)		(269)		—		66		—		(1,987)
	Market risk benefit liabilities	(3,569)		421		(585)		—		—		(3,733)


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of		Net		Other		Issuances		in and/or		as of
		July 1,		Income		Comprehensive		and		(out of)		September 30,
Three Months Ended September 30, 2024		2024		(Loss)		Income (Loss)		Settlements		Level 3		2024
Assets
	Debt securities
	Other government securities	$	151	$	—	$	5	$	—	$	—	$	156
	Public utilities	44		—		(12)		—		55		87
	Corporate securities	73		3		2		21		11		110
	Other asset-backed securities	919		(1)		15		(11)		(21)		901
	Equity securities	7		—		—		—		—		7
	Mortgage loans	430		4		—		(2)		—		432
	Limited partnerships	152		12		—		8		—		172
	Policy loans	3,511		68		—		(44)		—		3,535
	Reinsurance recoverable on market risk benefits	121		28		—		—		—		149
	Market risk benefit assets	8,556		(941)		—		—		—		7,615

Liabilities
	Funds withheld payable under reinsurance treaties	(1,161)		(601)		—		43		—		(1,719)
	Market risk benefit liabilities	(3,890)		(260)		(234)		—		—		(4,384)


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of		Net		Other		Issuances		in and/or		as of
		January 1,		Income		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2025		2025		(Loss)		Income (Loss)		Settlements		Level 3		2025
Assets
	Debt securities

	Public utilities	$	44	$	—	$	—	$	(44)	$	—	$	—
	Corporate securities	274		9		5		96		13		397
	Other asset-backed securities	661		(64)		33		111		(265)		476
	Equity securities	7		—		—		—		—		7
	Mortgage loans	449		5		—		(105)		—		349
	Limited partnerships	195		15		—		74		—		284
	Policy loans	3,489		144		—		(41)		—		3,592
	Reinsurance recoverable on market risk benefits	121		(5)		—		—		—		116
	Market risk benefit assets	8,899		(378)		—		—		—		8,521

Liabilities
	Funds withheld payable under reinsurance treaties	(1,353)		(673)		—		39		—		(1,987)
	Market risk benefit liabilities	(3,774)		566		(525)		—		—		(3,733)


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of		Net		Other		Issuances		in and/or		as of
		January 1,		Income		Comprehensive		and		(out of)		September 30,
Nine Months Ended September 30, 2024		2024		(Loss)		Income (Loss)		Settlements		Level 3		2024
Assets
	Debt securities
	Other government securities	$	150	$	—	$	6	$	—	$	—	$	156
	Public utilities	41		(1)		(11)		3		55		87
	Corporate securities	83		8		1		19		(1)		110
	Other asset-backed securities	975		(1)		15		(67)		(21)		901
	Equity securities	8		(1)		—		—		—		7
	Mortgage loans	481		1		—		(50)		—		432
	Limited partnerships	135		19		—		18		—		172
	Policy loans	3,457		179		—		(101)		—		3,535
	Reinsurance recoverable on market risk benefits	149		—		—		—		—		149
	Market risk benefit assets	6,737		878		—		—		—		7,615

Liabilities
	Funds withheld payable under reinsurance treaties	(1,158)		(657)		—		96		—		(1,719)
	Market risk benefit liabilities	(4,785)		1,184		(783)		—		—		(4,384)

Schedule of Components of Amounts Included in Purchases, Sales, Issuances and Settlements

The components of the amounts included in purchases, sales, issuances and settlements for the three and nine months ended September 30, 2025 and 2024 shown above are as follows (in millions):


Three Months Ended September 30, 2025		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities

	Corporate securities	$	80	$	(81)	$	—	$	—	$	(1)
	Residential mortgage-backed	4		(4)		—		—		—
	Other asset-backed securities	75		(109)		—		—		(34)

	Mortgage loans	13		(55)		—		—		(42)
	Limited partnerships	74		(1)		—		—		73
	Policy loans	—		—		7		(28)		(21)
	Total	$	246	$	(250)	$	7	$	(28)	$	(25)

Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(374)	$	440	$	66

Three Months Ended September 30, 2024		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities

	Corporate securities	$	30	$	(9)	$	—	$	—	$	21
	Other asset-backed securities	93		(104)		—		—		(11)

	Mortgage loans	65		(67)		—		—		(2)
	Limited partnerships	8		—		—		—		8
	Policy loans	—		—		8		(52)		(44)
	Total	$	196	$	(180)	$	8	$	(52)	$	(28)

Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(13)	$	56	$	43


Nine Months Ended September 30, 2025		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Public utilities	$	—	$	(44)	$	—	$	—	$	(44)
	Corporate securities	185		(89)		—		—		96
	Residential mortgage-backed	4		(4)		—		—		—
	Other asset-backed securities	445		(334)		—		—		111

	Mortgage loans	112		(217)		—		—		(105)
	Limited partnerships	75		(1)		—		—		74
	Policy loans	—		—		79		(120)		(41)
	Total	$	821	$	(689)	$	79	$	(120)	$	91

Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(752)	$	791	$	39

Nine Months Ended September 30, 2024		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Public utilities	$	3	$	—	$	—	$	—	$	3
	Corporate securities	43		(24)		—		—		19
	Other asset-backed securities	200		(267)		—		—		(67)

	Mortgage loans	156		(206)		—		—		(50)
	Limited partnerships	18		—		—		—		18
	Policy loans	—		—		71		(172)		(101)
	Total	$	420	$	(497)	$	71	$	(172)	$	(178)

Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(357)	$	453	$	96

Schedule of Portion of Gains (Losses) Included in Net Income or Other Comprehensive Income

The portion of gains (losses) included in net income (loss) or OCI attributable to the change in unrealized gains and losses on Level 3 financial instruments still held was as follows (in millions):


	Three Months Ended September 30,
	2025				2024
	Included in Net Income		Included in OCI		Included in Net Income		Included in OCI
Assets
Debt securities
Other government securities	$	—	$	—	$	—	$	5
Public utilities	—		—		—		(12)
Corporate securities	—		1		1		2
Other asset-backed securities	(13)		5		1		9

Mortgage loans	(2)		—		4		—
Limited partnerships	6		—		18		—
Policy loans	73		—		68		—
Reinsurance recoverable on market risk benefits	5		—		28		—
Market risk benefit assets	(200)		—		(941)		—

Liabilities
Funds withheld payable under reinsurance treaties	(269)		—		(601)		—
Market risk benefit liabilities	421		(585)		(260)		(234)


	Nine Months Ended September 30,
	2025				2024
	Included in Net Income		Included in OCI		Included in Net Income		Included in OCI
Assets
Debt securities
Other government securities	$	—	$	—	$	—	$	6
Public utilities	—		—		(1)		(11)
Corporate securities	10		4		2		1
Other asset-backed securities	(64)		32		—		9

Mortgage loans	5		—		1		—
Limited partnerships	15		—		19		—
Policy loans	144		—		179		—
Reinsurance recoverable on market risk benefits	(5)		—		—		—
Market risk benefit assets	(378)		—		878		—

Liabilities
Funds withheld payable under reinsurance treaties	(673)		—		(657)		—
Market risk benefit liabilities	566		(525)		1,184		(783)

Schedule of Carrying Amount and Fair Value by Hierarchy of Certain Financial Instruments Not Reported at Fair Value

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value (in millions):


	September 30, 2025
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	9,571	$	9,270	$	—	$	—	$	9,270
Policy loans	895		895		—		—		895
FHLBI capital stock	119		119		119		—		—

Liabilities
Annuity reserves (1)	$	37,294	$	36,597	$	—	$	—	$	36,597
Guaranteed investment contracts and funding agreements (2)	10,877		10,920		—		—		10,920
Funds withheld payable under reinsurance treaties	13,511		13,511		—		—		13,511
Long-term debt	2,030		1,888		—		1,888		—
Securities lending payable (3)	29		29		—		29		—

Repurchase agreements (3)	1,003		1,003		—		1,003		—
Separate account liabilities (5)	239,046		239,046		—		239,046		—


	December 31, 2024
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	9,462	$	8,902	$	—	$	—	$	8,902
Policy loans	914		914		—		—		914
FHLBI capital stock	127		127		127		—		—

Liabilities
Annuity reserves (1)	$	34,698	$	32,580	$	—	$	—	$	32,580
Guaranteed investment contracts and funding agreements (2)	8,384		8,271		—		—		8,271
Funds withheld payable under reinsurance treaties	15,389		15,389		—		—		15,389
Long-term debt	2,034		1,836		—		1,836		—
Securities lending payable (3)	14		14		—		14		—
Repurchase agreements (3)	1,540		1,540		—		1,540		—
FHLB advances (4)	700		700		—		700		—
Separate account liabilities (5)	229,143		229,143		—		229,143		—

(1) Annuity reserves exclude contracts classified as insurance contracts.
(2) Included as a component of other contract holder funds on the Condensed Consolidated Balance Sheets.
(3) Included as a component of repurchase agreements and securities lending payable on the Condensed Consolidated Balance Sheets.
(4) Included as a component of other liabilities on the Condensed Consolidated Balance Sheets.
(5) The values of separate account liabilities are set equal to the values of separate account assets.

Jackson Financial Inc. 10-Q