American National Group Inc.
For the period ended Mar 31, 2026. Filed May 14, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 14, 2026
ANG-PD$21.88+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001039828-25-000034
Item 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001039828-26-000009
Item 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 142 previous paragraphs and 125 current paragraphs.
73 unchanged; 43 reworded; 9 added; 25 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
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.
Current report
Gross Annuity Sales
Current report
(1)Other retail annuities represent sales of single premium immediate annuities and structured settlement annuities.
Current report
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.
Current report
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.
Current report
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%.
Current report
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.
Current report
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.
Current report
(1)Loss from continuing operations is net loss attributable to American National Group Inc. common stockholder less income from discontinuing operations, net of tax.
Removed paragraphs (25)
Previous report
As a result of the Post-Effective Merger of American National into AEL, the condensed consolidated financial statements for the periods prior to the Post-Effective Merger represent the results of American National as the accounting acquirer. For periods subsequent to the Post-Effective Merger, the condensed consolidated financial statements represent the combined results of American National and AEL. See Note 1 - Organization and Description of the Company for additional discussion on the Post-Effective Merger. Throughout this report, unless otherwise specified or the context otherwise requires, all references to “ANGI", the "Company", "we", "our" and similar references are to American National Group Inc. and its consolidated subsidiaries.
Previous report
The results of operations discussed below comprise results for American National for the periods prior to the Post-Effective Merger and the combined results of American National and AEL for periods subsequent to the Post-Effective Merger.
Previous report
For the three months ended September 30, 2025, we reported total net premiums of $566 million, compared to net premiums of $888 million for the same period in 2024. The decrease of $322 million is primarily due to the phased withdrawal from non-core business in our P&C segment, reinsurance agreements executed on our Life Insurance segment, and a decline in our PRT related premiums due to overall decline in the market in 2025.
Previous report
For the nine months ended September 30, 2025, we reported total net premiums of $2.2 billion, compared to net premiums of $3.0 billion for the same period in 2024. The decrease of $830 million is a result of the aforementioned phased withdrawal from non-core business in our P&C segment, reinsurance agreements executed on our Life Insurance segment, and a decline in our PRT related premiums due to overall decline in the market in 2025.
Previous report
(1)Variable sales represent additional premiums on previously issued policies.
Previous report
For the three months ended September 30, 2025, we reported total gross annuity sales of $4.9 billion, compared to gross annuity sales of $4.1 billion for the same period in 2024. The increase of $722 million is primarily due to increased sales activity in our fixed index and fixed rate retail annuity products.
Previous report
For the nine months ended September 30, 2025, we reported total gross annuity sales of $12.9 billion, compared to gross annuity sales of $9.0 billion in the prior year period. The increase of $4.0 billion is primarily due to our funding agreement backed notes (“FABN”) issuances during the period coupled with increased sales in our fixed index annuity product primarily contributed from the inclusion of AEL for the full period in 2025.
Previous report
Net premiums and other policy revenue were $747 million for the three months ended September 30, 2025, compared to $1.1 billion for the same period in 2024. The decrease of $349 million was primarily attributable to lower PRT sales in the quarter as compared to the prior year and the phased withdrawal from non-core businesses in our P&C segment.
Previous report
Net investment income increased by $261 million for the three months ended September 30, 2025, compared to the same period in 2024. Net investment income comprise interest and dividends received on financial instruments, equity investments and other miscellaneous fee income. The increase in 2025 was driven by the increase in assets under management due to growth of the business as well as the continued rotation into higher yielding investment strategies.
Previous report
We recorded $2 million of investment related gains for the three months ended September 30, 2025, an increase of $130 million compared to the same period in 2024. The increase was primarily driven by the non-recurrence of the realized losses on investments recognized during the third quarter of 2024 as a result of the transfer of assets pursuant to the RGA reinsurance transaction which was effective July 1, 2024.
Previous report
Policyholder benefits and claims incurred were $527 million for the three months ended September 30, 2025, compared to $846 million for the same period in 2024. The decrease of $319 million was primarily due to a decrease in PRT sales which resulted in lower reserve changes coupled with a decrease in claims incurred due to the impact of business ceded to RGA subsequent to the effectuation of the life insurance reinsurance transaction.
Previous report
Interest sensitive contract benefits represent interest credited to policyholders’ account balances from our investment contracts with customers. During the three months ended September 30, 2025, interest sensitive contract benefits were equivalent compared to the same period in 2024, driven mainly by new business issued within our annuities segment and equity market movements, offset by surrender and withdrawal activities.
Previous report
Operating expenses were $156 million for the three months ended September 30, 2025, compared to $228 million for the same period in 2024, a decrease of $72 million. The decrease was primarily driven by a non-recurring $27 million benefit realized from the termination of American National’s pension plan, as well as ongoing cost optimization efforts.
Previous report
The decrease of $2 million of interest expense on borrowings compared to the same period in 2024 was mainly due to the consolidation impact of certain investment variable interest entities.
Previous report
The results of operations discussed below comprise results for American National for the periods prior to the Post-Effective Merger and the combined results of American National and AEL for periods subsequent to the Post-Effective Merger.
Previous report
For the nine months ended September 30, 2025, we reported net income of $165 million, compared to a net income of $80 million for the same period in 2024. The increase is primarily driven by an increase in net investment income due to the inclusion of American Equity following the acquisition and an increase in investment related gains (losses) as a result of the non-recurrence of realized losses recognized in the prior year as a result of the transfer of assets pursuant to the RGA reinsurance transaction which was effective July 1, 2024, and a decrease in policyholder benefits and claims incurred. Those impacts were partially offset by an increase in the change in fair value of market risk benefits as a result of equity market and interest rate movements, an increase in interest sensitive contract benefits, an increase in amortization of DAC, DSI, and VOBA, and an increase in interest expense all of which are a result of continued growth of the annuity business and inclusion of American Equity following the acquisition.
Previous report
The Company realized investment related gains of $71 million for the nine months ended September 30, 2025, compared to losses of $160 million for the same period in 2024. The increase in investment gains of $231 million was primarily due to one-time realized losses recognized in the prior year as a result of the transfer of assets pursuant to the RGA reinsurance transaction which was effective July 1, 2024 as well as realized gains recognized during 2025 through the foreclosure and conversion of certain agricultural loans to real estate owned.
Previous report
Change in fair value of insurance-related derivatives and embedded derivatives decreased by $203 million for the nine months ended September 30, 2025 compared to the same period of 2024. The decrease was primarily due to the favorable impact of assumption updates as a result of our annual assumption review in the third quarter of 2025 along with the impact of interest rates and equity market performance on the fair value of the embedded derivatives and equity-indexed options.
Previous report
The increase in the change in fair value of market risk benefit of $332 million for the nine months ended September 30, 2025 compared to the same period of 2024 was primarily due to the impact of interest rates and equity markets on the valuation of these liabilities, as well as impacts from assumption updates as a result of the annual assumption review. Additionally, the market risk benefit liabilities increased as a result of the acquisition of American Equity leading to increases in the change in the fair value of these liabilities.
Previous report
Annuities – DOE within our annuities business represents contribution from both our retail and institutional platforms. DOE increased by $47 million for the three months ended September 30, 2025 compared to the same period in 2024. The increase is primarily attributable to increased investment income from our continued deployment into higher yielding investment strategies.
Previous report
Life Insurance – DOE decreased by $5 million for the three months ended September 30, 2025 compared to the same period in 2024. The decrease is primarily driven by the favorable impact of assumption updates from the annual assumption review.
Previous report
Property and Casualty – DOE increased by $15 million for the three months ended September 30, 2025 compared to the same period in 2024. The increase was driven by improvements in our loss experience arising from underwriting actions implemented over the past twelve months.
Previous report
Annuities – DOE increased by $477 million for the nine months ended September 30, 2025 compared to the same period in 2024. The increase is primarily attributable to a full period of earnings contributed from AEL, coupled with new business wins and higher spread earnings.
Previous report
Property and Casualty – DOE increased by $47 million for the nine months ended September 30, 2025 compared to the same period in 2024. The increase was driven by improvements in loss experience arising from underwriting actions implemented since the prior year period.
Previous report
Ceded unearned premiums represent a portion of unearned premiums ceded to reinsurers. The increase of $11 million from December 31, 2024 to September 30, 2025 is primarily driven by the recognition of earned premiums subject to reinsurance.
Reworded paragraphs (43)
Previous wording
Management's discussion and analysis reviews our unaudited condensed consolidated financial position at September 30, 2025 compared with December 31, 2024, and our unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2025 and 2024, 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, 2024 audited consolidated financial statements included in the Form 10-K, filed with the SEC on March 31, 2025. Interim operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results expected for the entire year. Preparation of financial statements requires use of management estimates and assumptions.
Current wording
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.
Previous wording
Through our insurance subsidiaries, our Company is primarily focused on providing insurance solutions to individuals and institutions through a broad range of annuity and retirement products and services. Our business is presently conducted through our subsidiaries under three operating segments: Annuities, Property and Casualty (“P&C”) and Life Insurance.
Current wording
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.
Previous wording
Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024
Current wording
Results of Operations for the Three Months Ended March 31, 2026 and 2025
Previous wording
The following table summarizes the financial results of our business for the three and nine months ended September 30, 2025 and 2024:
Current wording
The following table summarizes the financial results of our business for the three months ended March 31, 2026 and 2025:
Previous wording
For the three months ended September 30, 2025, we reported net income of $219 million, compared to net loss of $(288) million for the same period in 2024. The increase of $507 million was primarily driven by a decrease in the change in fair value of insurance-related derivatives and embedded derivatives as a result of equity market and interest rate movements, a decrease in policyholder benefits and claims incurred, an increase in net investment income, and a decrease in operating expenses. Those impacts were partially offset by an increase in amortization of DAC, DSI, and VOBA which is a result of continued growth of the annuity business, a decrease in net premiums, and an increase in the change in fair value of market risk benefits.
Current wording
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.
Previous wording
Net premiums and other policy revenue of $2.7 billion decreased by $832 million for the nine months ended September 30, 2025, compared to the same period in 2024 primarily due to lower PRT sales as compared to the prior year period coupled with the phased withdrawal from non-core businesses in our P&C segment.
Current wording
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.
Previous wording
Net investment income increased by $1.3 billion for the nine months ended September 30, 2025, compared to the same period in 2024. The increase was primarily driven by the increase in assets under management following the acquisition of American Equity as well as the continued rotation into higher yielding investment strategies.
Current wording
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.
Previous wording
Policyholder benefits and claims incurred decreased by $719 million for the nine months ended September 30, 2025, compared to the same period in 2024. The decrease is primarily due to a reduction in PRT sales which resulted in lower reserve changes coupled with a decrease in claims incurred due to the impact of life insurance business ceded to RGA subsequent to the effectuation of the reinsurance transaction.
Current wording
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.
Previous wording
For the nine months ended September 30, 2025, interest sensitive contract benefits increased compared to the same period in 2024 by $452 million which was primarily driven by an increase in the in-force block of annuity business following the acquisition of American Equity.
Current wording
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.
Previous wording
Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired increased by $56 million compared to the same period in 2024, primarily due to the continued growth of the annuity business which increases the deferred acquisition cost and deferred sales inducements assets.
Current wording
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.
Previous wording
Change in fair value of insurance-related derivatives and embedded derivatives decreased by $531 million for the three months ended September 30, 2025 compared to the same period of 2024. The decrease was primarily due to the favorable impact of assumption updates as a result of our annual assumption review along with the impact of interest rates and equity market performance on the fair value of the embedded derivatives and equity-indexed options.
Current wording
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.
Previous wording
Change in fair value of market risk benefits represents the mark-to-market movements of our liability based on protection to the policyholder from capital market risk. The increase in the fair value of market risk benefits of $176 million for the three months ended September 30, 2025 compared to the same period of 2024 was primarily due to the impact of interest rates and equity markets on the valuation of these liabilities coupled with the impact of assumption updates as a result of our annual assumption review.
Current wording
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.
Previous wording
Operating expenses decreased by $19 million for the nine months ended September 30, 2025 compared to the same period in 2024, primarily driven by non-recurring expenses from the acquisition of American Equity in 2024 as well as a one-time benefit realized from the termination of American National’s pension plan during the third quarter of 2025.
Current wording
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.
Previous wording
Interest expense on borrowings increased by $26 million for the nine months ended September 30, 2025 compared to the same period in 2024 primarily as a result of increased borrowings with the new term loan entered into in May 2024, senior notes issued in June 2025, junior subordinated notes entered into in August 2025, as well as the acquisition of American Equity which included legacy senior notes and subordinated debt. These increases in interest expense were partially offset by recurring repayments of the term loan during 2025.
Current wording
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.
Previous wording
The following table presents DOE of each of our reporting segments for the three and nine months ended September 30, 2025 and 2024:
Current wording
The following table presents DOE of each of our reporting segments for the three months ended March 31, 2026 and 2025:
Previous wording
Life Insurance – DOE decreased by $53 million for the nine months ended September 30, 2025 compared to the same period in 2024. The decrease was driven by the impact of the aforementioned RGA reinsurance treaty executed during the third quarter of 2024.
Current wording
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.
Previous wording
Total assets increased by $9.3 billion during the period to $130.6 billion. The increase is primarily driven by net annuity inflows which results in increased cash and investment purchases, the issuance of the 2055 Notes, and favorable fair value movements on our equity securities portfolio.
Current wording
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.
Previous wording
Total investments increased by $9.0 billion from December 31, 2024 to September 30, 2025. The increase is primarily driven by the net annuity inflows and redeployment of cash and cash equivalents into fixed maturity investments resulting in increased investment purchases and favorable unrealized fair value movements on our equity securities portfolio.
Current wording
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.
Previous wording
Cash and cash equivalents increased by $238 million from December 31, 2024 to September 30, 2025. The increase is primarily driven by the issuance of the 2055 Notes during the third quarter of 2025 as well as annuity sales during the period not yet deployed 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.
Current wording
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.
Previous wording
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 $753 million primarily driven by deferrals associated with writing new business during the period.
Current wording
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.
Previous wording
Deferred tax assets decreased by $226 million from December 31, 2024 to September 30, 2025. The decrease is primarily due to changes in the deferred tax asset related to Bermuda and changes in unrealized gains or losses in our investments offset by an increase in our net operating loss carryforwards.
Current wording
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.
Previous wording
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 $524 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.
Current wording
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.
Previous wording
Intangible assets decreased by $4 million during the year, primarily due to the amortization of intangible assets during the period.
Current wording
Intangible assets decreased by $18 million during the year, primarily due to the amortization of intangible assets during the period.
Previous wording
Other assets increased by $183 million during the year to $2.9 billion. The balance includes current tax asset, market risk benefit asset, as well as other miscellaneous receivables, and is primarily attributable to an increase in the market risk benefit asset as a result of assumption updates made during the annual assumption review.
Current wording
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.
Previous wording
Separate account assets and liabilities both decreased by $148 million during 2025, primarily due to policyholder benefits and withdrawals during the quarter as well as the release of $174 million of assets and the associated liabilities related to the lump sum payout of a portion of the qualified defined benefit pension plan during Q3 2025.
Current wording
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.
Previous wording
Future policy benefits and policyholders’ account balances increased by $7.6 billion during 2025 primarily driven by annuity sales during the period as well as assumption updates as a result of the annual assumption review and the impact of changes in interest rates and equity markets on the valuation of the embedded derivatives during the period.
Current wording
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.
Previous wording
Market risk benefits increased by $850 million during 2025 primarily due to the impact of changes in interest rates and equity markets as well as assumption updates as a result of the annual assumption review on the valuation of market risk benefits.
Current wording
Market risk benefits decreased by $35 million during 2026 primarily due to the impact of changes in interest rates and equity markets.
Previous wording
Funds withheld for reinsurance liabilities decreased by $190 million during 2025 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.
Current wording
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.
Previous wording
Other liabilities increased by $127 million during 2025. The balance includes the reinsured market risk benefits liability, accrued interest on debt and other miscellaneous payables. The increase during 2025 is primarily driven by an increase in miscellaneous payables.
Current wording
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.
Previous wording
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 September 30, 2025, the Company had no drawings and a total of $1.5 billion undrawn commitment available related to this program, and access to $300 million of capacity under the revolving credit facility.
Current wording
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.
Previous wording
Liquidity within our insurance subsidiaries may be restricted from time to time due to regulatory constraints. As of September 30, 2025, the Company’s total liquidity was $52.0 billion, which included $764 million of unrestricted cash and cash equivalents held outside of the regulated insurance companies.
Current wording
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.
Previous wording
Comparison of the Nine Months Ended September 30, 2025 and 2024
Current wording
Comparison of the Three Months Ended March 31, 2026 and 2025
Previous wording
The following table presents a summary of our cash flows and ending cash balances for the nine months ended September 30, 2025 and 2024:
Current wording
The following table presents a summary of our cash flows and ending cash balances for the three months ended March 31, 2026 and 2025:
Previous wording
For the nine months ended September 30, 2025, we generated $1.6 billion of cash from operating activities compared to $2.1 billion during 2024, primarily due to the change in the fair value of embedded derivatives for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 as detailed above.
Current wording
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.
Previous wording
For the nine months ended September 30, 2025, cash outflows arose as we deployed cash and cash equivalents held as of December 31, 2024 to short-term investments, private loans, 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 $6.5 billion of cash from investing activities, compared to net inflow of $6.6 billion in the prior year.
Current wording
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.
Previous wording
For the nine months ended September 30, 2025, we recorded a net cash inflow of $5.1 billion from our financing activities, compared to net inflow of $2.0 billion recorded in 2024. The proceeds in the current year period were mainly as a result of $4.5 billion net payments received on policyholders’ account deposits partially offset by withdrawals on such accounts.
Current wording
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.
Previous wording
As of September 30, 2025, the Company and its subsidiaries, in aggregate, had total unfunded investment commitments of $6.9 billion. The unfunded commitments are primarily recognized as mortgage loans, private loans, investment funds, investment real estate and other invested assets. For additional information, see Note 27 - Financial Commitments and Contingencies of the financial statements.
Current wording
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.
Previous wording
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. Refer to the “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 and nine months ended September 30, 2025 and 2024.
Current wording
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.
Previous wording
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, and is inclusive of returns on equity invested in certain variable interest entities and our share of adjusted earnings from our investments in certain associates.
Current wording
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.
Previous wording
The following table contains further details regarding our use of our Non-GAAP measures, as well as a reconciliation of GAAP consolidated net income to DOE:
Current wording
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:
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Previous report — wording carried elsewhere
Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired increased by $346 million compared to the same period in 2024, primarily due to an increase in the amortization of VOBA due to the increase in the VOBA asset following the acquisition of American Equity as well as the continued growth of the annuity business which increases the deferred acquisition cost and deferred sales inducements assets.