Corebridge Financial, Inc.
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
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.
Sep 30, 2025 · Filed Nov 4, 2025
CRBG$34.09-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001889539-25-000053
Item 2. |Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001889539-25-000098
Item 2. |Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewThe 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 652 previous paragraphs and 638 current paragraphs.
381 unchanged; 175 reworded; 80 added; 93 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 79 previous and 78 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 (80)
Current report
Effective August 1, 2025, AGL entered into a coinsurance and modco reinsurance agreement with CSLR to reinsure 100% of its in-force and newly issued individual variable annuity contracts. As of the effective date of this agreement, AGL transferred to the reinsurer $1.9 billion of assets primarily consisting of fixed maturity securities supporting the general account liabilities net of a ceding commission. Additionally, $45.1 billion of separate account liabilities were ceded under the modco portion of the agreement.
Current report
A coinsurance and modco reinsurance agreement between USL and CSLR is expected to close in the fourth quarter of 2025, subject to the satisfaction or waiver of customary closing conditions and the receipt of required regulatory approvals. Under the terms of this reinsurance agreement, USL will reinsure 100% of its in-force individual variable annuity contracts as of the effective date of the agreement. In addition, AGL will sell all of the outstanding membership interests in SunAmerica Asset Management, LLC, an indirect wholly-owned subsidiary of the Company (“SAAMCo”), to Venerable Holdings, Inc., a Delaware corporation (“Venerable”) or one of its affiliates, subject to customary terms and conditions. This sale is expected to close in the first quarter of 2026.
Current report
Most of the fixed annuities, fixed index annuities, registered index-linked annuities, variable annuities and universal life insurance products we offer maintain policyholder deposits that are reported as liabilities and classified within either separate account liabilities or policyholder contract deposits. Our products and riders also impact liabilities for future policyholder benefits and unearned revenues and assets for DAC and DSI. The valuation of these assets and liabilities (other than deposits) is based on differing accounting methods depending on the product, each of which requires numerous assumptions and considerable judgment. The accounting guidance applied in the valuation of these assets and liabilities includes, but is not limited to, the following: (i) traditional life and limited pay insurance products for which actual experience is reflected in the liability and assumptions are reviewed and updated at least annually, if necessary, with the recognition and parenthetical presentation of any resulting re-measurement gain or loss in policyholder benefits (except for discount rate changes) in the income statement; (ii) certain product guarantees for which benefit liabilities are accrued over the life of the contract in proportion to actual and future expected policy assessments; (iii) certain product guarantees reported as market risk benefits or index crediting features accounted for as embedded derivatives which are carried at fair value; and (iv) unearned revenue and assets for DAC, VOBA and DSI which are amortized on a constant level basis over the expected term of the related contracts using assumptions consistent with those used in estimating the related liability for future policy benefits, or any other related balances, for those corresponding contracts, as applicable.
Current report
At least annually, typically in the third quarter, we conduct a comprehensive review of the underlying assumptions within our actuarially determined assets and liabilities. These assumptions include, but are not limited to, policyholder behavior, mortality, expenses, investment returns and policy crediting rates. Changes in assumptions can result in a significant change to the carrying value of product liabilities and assets and, consequently, the impact could be material to earnings in the period of the change.
Current report
For further details of our accounting policies and related judgments pertaining to assumption updates, see “Update of Actuarial Assumptions and Models”, herein and “Accounting Policies and Pronouncements—Critical Accounting Estimates—Market Risk Benefits, Valuation of Embedded Derivatives for Fixed Index Annuity, Registered Index-Linked Annuity and Index Universal Life Products, Guaranteed Benefit Features of Variable Annuity, Fixed Annuity and Fixed Index Annuity Products, and Future Policy Benefits for Life, Accident and Health Insurance Contracts” in the 2024 Form 10-K.
Current report
Represents the results of businesses that have been or will be economically exited through reinsurance. This includes MRBs, along with changes in the fair value of derivatives used to hedge MRBs which are recorded through “Change in the fair value of MRBs, net.” The results of operations from these businesses have been excluded from APTOI as they are not indicative of our ongoing business operations.
Current report
•higher premiums of $1.3 billion primarily on new pension risk transfer business; and
Current report
•higher interest credited to policyholder account balances of $136 million primarily due to higher interest rates and higher sales activity in fixed and fixed index annuities and growing GIC business; and
Current report
•lower advisory fee income of $126 million driven by the reinsurance agreement with CSLR.
Current report
•higher net realized losses of $676 million primarily driven by higher losses from derivatives and index-linked interest credited embedded derivatives, net of related hedges;
Current report
•higher interest credited to policyholder account balances of $566 million primarily due to higher interest rates and higher sales activity in fixed and fixed index annuities and registered index-linked annuities and growing GIC business;
Current report
•lower premiums of $145 million primarily on new pension risk transfer business; and
Current report
•higher net investment income of $639 million primarily driven by higher base portfolio and variable investment income.
Current report
•higher interest credited to policyholder account balances of $197 million primarily due to higher interest rates and higher sales activity in fixed and fixed index annuities and growing GIC business; and
Current report
•annual actuarial assumption updates decreased APTOI by $98 million in the current year quarter compared to $3 million in the prior year quarter, primarily reflecting modeling refinements and life assumption updates.
Current report
•higher premiums of $1.3 billion primarily on new pension risk transfer business; and
Current report
•higher net investment income of $213 million primarily driven by higher base portfolio income partially offset by $38 million reduction in variable investment income.
Current report
•higher interest credited to policyholder account balances of $627 million primarily due to higher interest rates and higher sales activity in fixed and fixed index annuities and registered index-linked annuities and growing GIC business;
Current report
•lower premiums of $150 million primarily on new pension risk transfer business;
Current report
•lower advisory fee income of $87 million driven by the reinsurance agreement with CSLR; and
Current report
•higher net investment income of $824 million primarily driven by higher base portfolio income partially offset by lower variable investment income.
Current report
–results of our individual variable annuity business that has been or will be reinsured to CSLR.
Current report
The closing with respect to the Reinsurance Agreement with AGL occurred on August 1, 2025. Accordingly, retrospectively, effective in the third quarter of 2025, our individual variable annuity business previously reported in the Individual Retirement segment, is now included within Corporate and Other, consistent with how the CODM assesses its performance and allocates its resources. Prior periods presented herein have been recast to conform to the new segment presentation. Additionally, the results of operations from the variable annuity business have been excluded from Adjusted Pre-Tax Operating Income (“APTOI”) as they are not indicative of our ongoing business operations.
Current report
•lower spread income of $36 million primarily driven by a decrease in variable investment income of $27 million mostly due to lower alternative income and lower base spread income of $9 million primarily due to the negative impact of 2024 Federal Reserve rate actions partially offset by general account growth and asset optimization actions;
Current report
•higher policyholder benefits, net of premiums, of $26 million primarily due to prior year benefit from model refinements related to immediate annuities; and
Current report
•higher amortization of DAC and DSI of $49 million reflecting several factors, including growth in the business;
Current report
•higher policyholder benefits, net of premiums, of $39 million primarily due to prior year benefit from model refinements related to immediate annuities;
Current report
•lower spread income of $30 million primarily driven by a lower base spread income of $70 million, primarily due to the negative impact of 2024 Federal Reserve rate actions partially offset by general account growth and asset optimization, partially offset by an increase in variable investment income of $40 million due to higher alternative and yield enhancement income.
Current report
•higher policy fee income of $23 million, primarily due to higher GMWB fees from fixed and fixed index annuity growth.
Current report
*Excludes amortization of DSI assets of $9 million and $10 million for the three months ended September 30, 2025 and 2024, respectively, and $28 million and $31 million for the nine months ended September 30, 2025 and 2024, respectively.
Current report
•higher fee income, net of advisory fee expenses, of $9 million due to higher average separate account, advisory, and mutual fund assets driven by improved equity market performance.
Showing the first 40 of 80 passages. Open the source sections for the rest.
Removed paragraphs (93)
Previous report
Impact of Variable Annuity Guaranteed Benefit Riders and Hedging
Previous report
Our Individual Retirement and Group Retirement businesses offer variable annuity products with riders that provide guaranteed benefits. The liabilities are accounted for as MRBs and measured at fair value. The fair value of the MRBs may fluctuate significantly based on market interest rates, equity prices, credit spreads, market volatility, policyholder behavior and other factors.
Previous report
In addition to risk-mitigating features in our variable annuity product design, we have an economic hedging program designed to manage market risk from GMWBs, including exposures to changes in interest rates, equity prices, credit spreads and volatility. The hedging program includes all in-force GMWB policies and utilizes derivative instruments, including, but not limited to, equity options, futures contracts and interest rate swap and option contracts, as well as fixed maturity securities.
Previous report
For additional information regarding Corebridge’s impact of Variable Annuity Guaranteed Benefit Riders and Hedging, see “Future Policy Benefits, Policyholder Contract Deposits and Market Risk Benefits — Variable Annuity Guaranteed Benefits and Hedging Results.”
Previous report
Changes in the fair value of securities used to economically hedge MRBs are excluded from APTOI.
Previous report
•higher interest credited to policyholder account balances of $212 million primarily due to higher sales activity in fixed, fixed index and registered index-linked annuities and growing GIC business; and
Previous report
•lower premiums of $83 million primarily on new pension risk transfer business.
Previous report
•higher net investment income of $350 million primarily driven by higher base portfolio income and higher variable investment income;
Previous report
•lower policyholder benefits of $67 million primarily on new pension risk transfer business.
Previous report
•higher net realized losses of $2.3 billion primarily driven by higher losses on foreign exchange transactions, losses from derivatives, losses from index-linked interest credited embedded derivatives, net of related hedges, higher losses on the Fortitude Re balances including, the funds withheld embedded derivative and higher realized losses on sales of AFS securities including, $203 million higher intent to sell realized losses;
Previous report
•lower premiums of $1.5 billion primarily on new pension risk transfer business;
Previous report
•higher interest credited to policyholder account balances of $430 million primarily due to higher sales activity in fixed, fixed index and registered index-linked annuities and growing GIC business; and
Previous report
•Net gain of $246 million from the sale of AIG Life U.K. in 2024.
Previous report
•higher net investment income of $615 million primarily driven by higher base portfolio income and higher variable investment income.
Previous report
•higher net investment income of $334 million primarily driven by higher base portfolio income and higher variable investment income; and
Previous report
•lower policyholder benefits of $66 million primarily on new pension risk transfer business.
Previous report
•higher interest credited to policyholder account balances of $209 million primarily due to higher sales activity in fixed, fixed index and registered index-linked annuities and growing GIC business; and
Previous report
•lower premiums of $83 million primarily on new pension risk transfer business.
Previous report
•lower policyholder benefits of $1.5 billion primarily on new pension risk transfer business;
Previous report
•higher net investment income of $613 million primarily driven by higher base portfolio income and higher variable investment income; and
Previous report
•lower premiums of $1.5 billion primarily on new pension risk transfer business; and
Previous report
•higher interest credited to policyholder account balances of $426 million primarily due to higher sales activity in fixed, fixed index and registered index-linked annuities and growing GIC business.
Previous report
•higher spread income of $26 million primarily driven by an increase in variable investment income of $48 million due to improved private equity returns and higher yield enhancement income, partially offset by lower base spread income of $22 million primarily due to changes in short-term interest rates.
Previous report
•higher amortization of DAC and DSI of $12 million due to growth in fixed and fixed index annuity business and registered index-linked annuity business; and
Previous report
•higher spread income of $11 million primarily driven by an increase in variable investment income of $71 million due to improved private equity returns and higher yield enhancement income, partially offset by lower base spread income of $60 million primarily due to changes in short-term interest rates.
Previous report
*Excludes amortization of DSI assets of $11 million and $13 million for the three months ended June 30, 2025 and 2024, respectively, and $23 million and $26 million for the six months ended June 30, 2025 and 2024, respectively.
Previous report
Variable Annuities Net outflows decreased by $73 million primarily due to lower surrenders and withdrawals of $129 million, partially offset by lower premium and deposits of $49 million and higher death benefits of $7 million.
Previous report
Variable Annuities Net outflows decreased by $8 million primarily due to lower surrenders and withdrawals of $17 million and lower death benefits of $3 million, partially offset by lower premium and deposits of $12 million.
Previous report
(a) The non-surrenderable portion of variable annuities relates to funding agreements.
Previous report
Net flows remained negative and improved by $41 million primarily due to a decrease in surrenders and withdrawals of $44 million in both in-plan and out-of-plan annuities.
Previous report
Net flows remained negative and improved by $96 million primarily due to a decrease in surrenders and withdrawals of $329 million in both in-plan and out-of-plan annuities, partially offset by a decrease in deposits of $252 million.
Previous report
•favorable underwriting margin of $35 million, driven by higher base portfolio income and favorable mortality in the current period.
Showing the first 40 of 93 passages. Open the source sections for the rest.
Reworded paragraphs (175)
Previous wording
This MD&A addresses the consolidated financial condition of Corebridge as of June 30, 2025, compared with December 31, 2024, and its consolidated results of operations for the three and six months ended June 30, 2025 and 2024. In addition to historical data, this discussion contains forward-looking statements about our business operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. You should read the following analysis of our consolidated financial condition and results of operations in conjunction with the (unaudited)Condensed Consolidated Financial Statements and the statements under “Cautionary Statements Regarding Forward-Looking Information,” included elsewhere in this Quarterly Report and the “Management’s Discussion and Analysis of Results of Operations and Financial Condition,” and the “Risk Factors” section in the 2024 Form 10-K.
Current wording
This MD&A addresses the consolidated financial condition of Corebridge as of September 30, 2025, compared with December 31, 2024, and its consolidated results of operations for the three and nine months ended September 30, 2025 and 2024. In addition to historical data, this discussion contains forward-looking statements about our business operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. You should read the following analysis of our consolidated financial condition and results of operations in conjunction with the (unaudited)Condensed Consolidated Financial Statements and the statements under “Cautionary Statements Regarding Forward-Looking Information,” included elsewhere in this Quarterly Report and the “Management’s Discussion and Analysis of Results of Operations and Financial Condition,” and the “Risk Factors” section in the 2024 Form 10-K.
Previous wording
Corebridge | Second Quarter 2025 Form 10-Q 81
Current wording
Corebridge | Third Quarter 2025 Form 10-Q 81
Previous wording
Corebridge | Second Quarter 2025 Form 10-Q 82
Current wording
Corebridge | Third Quarter 2025 Form 10-Q 82
Previous wording
•Policy fees are principally derived from our individual retirement, group retirement, universal life insurance, Corporate Markets and SVW products. Our policy fees typically vary directly with the underlying account value or benefit base of our annuities. Account value and benefit base are influenced by changes in economic conditions, including changes in levels of equity prices, and changes in levels of interest rates and credit spreads, as well as net flows;
Current wording
•Policy fees are principally derived from our universal life insurance, group retirement, individual retirement, Corporate Markets and SVW products. Our policy fees typically vary directly with the underlying account value or benefit base of our annuities. Account value and benefit base are influenced by changes in economic conditions, including changes in levels of equity prices, and changes in levels of interest rates and credit spreads, as well as net flows;
Previous wording
In 2018, AIG established Fortitude Re, a wholly-owned subsidiary of Fortitude Group Holdings, LLC (“Fortitude Holdings”), in a series of reinsurance transactions related to certain of AIG’s legacy operations. In February 2018, AGL, VALIC and USL entered into modco agreements with Fortitude Re, a registered Class 4 and Class E reinsurer in Bermuda. Following the sale of AIG’s majority ownership interest in Fortitude Holdings, AIG contributed its remaining ownership in Fortitude Re Bermuda and its one seat on its Board of Managers to us. As of June 30, 2025, our ownership interest in Fortitude Re was 2.46%.
Current wording
In February 2018, AGL, VALIC and USL entered into modco agreements with Fortitude Re, a wholly-owned subsidiary of Fortitude Group Holdings, LLC (“Fortitude Holdings”), a registered Class 4 and Class E reinsurer in Bermuda.
Previous wording
In the modco arrangement, the investments supporting the reinsurance agreements, which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., AGL, VALIC and USL) thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date. Additionally, since we maintain ownership of these investments, we reflect our existing accounting for these assets, which consist primarily of available-for-sale securities (e.g., the changes in fair value of available-for-sale securities are recognized within OCI) on our balance sheet. We have established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing liabilities for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of this derivative are recognized in Net realized gains (losses) on Fortitude Re funds withheld embedded derivative. This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets, primarily available-for-sale securities, associated with these reinsurance agreements. As the majority of the invested assets supporting the modco are fixed income securities that are available-for-sale, there is a mismatch between the accounting for the embedded derivative as its changes in fair value are recorded through net income while changes in the fair value of the fixed maturity securities available-for-sale are recorded through OCI.
Current wording
In the modco arrangement, the investments supporting the reinsurance agreements are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., AGL and USL) thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date. We have established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing liabilities for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of this derivative are recognized in Net realized gains (losses) on Fortitude Re funds withheld embedded derivative.
Previous wording
Our net income experiences ongoing volatility as a result of the reinsurance agreements, which, as described above, give rise to a funds withheld payable that contains an embedded derivative. However, this net income volatility is almost entirely offset with a corresponding change in OCI, which reflects the fair value change from the investment portfolio supporting the funds withheld payable, which is primarily available-for-sale securities, resulting in minimal impact to our comprehensive income (loss) and equity attributable to Corebridge. The Company has also elected the fair value option on the acquisition of certain new fixed maturity securities, helping reduce the mismatch over time. VALIC’s modco agreement with Fortitude Re was recaptured effective January 1, 2025, resulting in a $45 million charge to pre-tax earnings. As of June 30, 2025, $24.5 billion of reserves had been ceded to Fortitude Re.
Current wording
Our net income experiences ongoing volatility as a result of the reinsurance agreements and gives rise to a funds withheld payable that contains an embedded derivative. However, this net income volatility is almost entirely offset with a corresponding change in OCI, which reflects the fair value change from the investment portfolio supporting the funds withheld payable, which is primarily available-for-sale securities, resulting in minimal impact to our comprehensive income (loss) and equity attributable to Corebridge. The Company has also elected the fair value option on the acquisition of certain new fixed maturity securities, helping reduce the mismatch over time. VALIC’s modco agreement with Fortitude Re was recaptured effective January 1, 2025, resulting in a $45 million charge to pre-tax earnings. As of September 30, 2025, $24.6 billion of reserves had been ceded to Fortitude Re.
Previous wording
In 2021, we entered into a long-term asset management relationship with Blackstone IM. As of June 30, 2025, Blackstone managed approximately $70.2 billion in book value of assets in our investment portfolio.
Current wording
In 2021, we entered into a long-term asset management relationship with Blackstone IM. As of September 30, 2025, Blackstone managed approximately $69.8 billion in book value of assets in our investment portfolio.
Previous wording
Since April 2022, we entered into investment management agreements with BlackRock and its investment advisory affiliates. As of June 30, 2025, BlackRock managed approximately $89.7 billion in book value of assets in our investment portfolio, consisting of liquid fixed income and certain private placement assets.
Current wording
Since April 2022, we entered into investment management agreements with BlackRock and its investment advisory affiliates. As of September 30, 2025, BlackRock managed approximately $90.0 billion in book value of assets in our investment portfolio, consisting of liquid fixed income and certain private placement assets.
Previous wording
Alternative investments include private equity funds which are generally reported on a one-quarter lag. Accordingly, changes in valuations driven by equity market conditions during the second quarter of 2025 may impact the private equity investments in the alternative investments portfolio in the third quarter of 2025.
Current wording
Alternative investments include private equity funds which are generally reported on a one-quarter lag. Accordingly, changes in valuations driven by equity market conditions during the third quarter of 2025 may impact the private equity investments in the alternative investments portfolio in the fourth quarter of 2025.
Previous wording
Of the aggregate fixed account values of our Individual Retirement and Group Retirement annuity products, 44% and 47% were crediting at the contractual minimum guaranteed interest rate at June 30, 2025 and December 31, 2024, respectively. In the universal life insurance products in our Life Insurance business, 59% and 59% of the account values were crediting at the contractual minimum guaranteed interest rate at June 30, 2025 and December 31, 2024, respectively. These businesses continue to focus on pricing discipline and strategies to manage the minimum guaranteed interest crediting rates offered on new sales in the context of regulatory requirements and competitive positioning.
Current wording
Of the aggregate fixed account values of our Individual Retirement and Group Retirement annuity products, 41% and 47% were crediting at the contractual minimum guaranteed interest rate at September 30, 2025 and December 31, 2024, respectively. In the universal life insurance products in our Life Insurance business, 59% and 59% of the account values were crediting at the contractual minimum guaranteed interest rate at September 30, 2025 and December 31, 2024, respectively. These businesses continue to focus on pricing discipline and strategies to manage the minimum guaranteed interest crediting rates offered on new sales in the context of regulatory requirements and competitive positioning.
Previous wording
For example, on April 25, 2024, the Department of Labor (“DOL”) published a final rule in the Federal Register updating the definition for when a person is an “investment advice fiduciary” for purposes of transactions with ERISA qualified plans, related plan participants and IRAs. The DOL also published changes with respect to existing prohibited transactions exemptions (“PTEs”) relating to such advice, including PTE 84-24 and PTE 2020-02. Orders staying the rule’s September 23, 2024 effective date were issued by the U.S. District Courts for the Eastern District of Texas and the Northern District of Texas on July 25, 2024 and July 26, 2024, respectively, in connection with separate lawsuits challenging the rule. On December 20, 2024, DOL filed a consolidated opening brief, appealing these two orders to the United States Court of Appeals for the Fifth Circuit. Since filing this appeal, DOL has asked the Fifth Circuit to hold the case in abeyance on three occasions. The matter is currently stayed until August 15, 2025. We are actively monitoring the progress of the litigation while continuing to evaluate potential impact of the DOL rule to our business.
Current wording
For example, on April 25, 2024, the Department of Labor (“DOL”) published a final rule in the Federal Register updating the definition for when a person is an “investment advice fiduciary” for purposes of transactions with ERISA qualified plans, related plan participants and IRAs. The DOL also published changes with respect to existing prohibited transactions exemptions (“PTEs”) relating to such advice, including PTE 84-24 and PTE 2020-02. Orders staying the rule’s September 23, 2024 effective date were issued by the U.S. District Courts for the Eastern District of Texas and the Northern District of Texas on July 25, 2024 and July 26, 2024, respectively, in connection with separate lawsuits challenging the rule. On December 20, 2024, DOL filed a consolidated opening brief, appealing these two orders to the United States Court of Appeals for the Fifth Circuit. Since filing this appeal, DOL has asked the Fifth Circuit to hold the case in abeyance on multiple occasions. The matter is currently stayed and we are actively monitoring the progress of the litigation while continuing to evaluate potential impact of the DOL rule to our business.
Previous wording
In February 2025, the NAIC announced the creation of a new Risk-Based Capital Model Governance (EX) Task Force as part of its efforts to update and strengthen the governance framework around risk-based capital requirements. The task force will consider changes to risk-based capital formulas used by insurance companies as a measure of solvency and conduct a gap-analysis to identify areas for improvement. The work of the task force is ongoing and could result in changes to risk-based capital requirements and calculations in the future, which could affect our capital planning, investment strategies and reporting obligations. We are actively monitoring developments associated with this NAIC initiative and its potential impacts on our life insurance subsidiaries.
Current wording
In February 2025, the NAIC announced the creation of a new Risk-Based Capital Model Governance (EX) Task Force as part of its efforts to update and strengthen the governance framework around risk-based capital requirements. The task force will consider changes to risk-based capital formulas used by insurance companies as a measure of solvency and conduct a gap-analysis to identify areas for improvement. In an interim meeting, the task force exposed a set of risk-based capital guiding principles and is seeking feedback. The work of the task force is ongoing and could result in changes to risk-based capital requirements and calculations in the future, which could affect our capital planning, investment strategies, reporting obligations and permitted disclosures. We are actively monitoring developments associated with this NAIC initiative and its potential impacts on our life insurance subsidiaries.
Previous wording
In March 2025, the NAIC exposed for comment and in June 2025 the Life Actuarial Task Force adopted updates to actuarial guidelines intended to enhance asset adequacy analysis for asset-intensive, life insurance and annuity reinsurance treaties above certain thresholds. The updated guidelines are still subject to vote by additional NAIC committees before being sent to the states for adoption. The updated guidelines require the use of cash flow testing methodology in evaluating the adequacy of assets supporting ceded reserves. The updated guidelines are designed as a testing and disclosure regime, but such disclosure could be used by regulators in their supervision of insurance companies. The Life Actuarial Task Force expects the first reinsurance asset testing reports to be due in April 2026. In addition, the NAIC plans to review the disclosures following adoption of the guidelines to identify concerns with insurers’ approaches to asset adequacy testing, with the possibility of making additional changes that could lead to higher reserves for certain reinsurance agreements. We are actively monitoring developments associated with this NAIC initiative, which may be applicable to certain transactions that involve our life insurance subsidiaries acting as cedants.
Current wording
In June 2025 the Life Actuarial Task Force adopted updates to actuarial guidelines intended to enhance asset adequacy analysis for asset-intensive, life insurance and annuity reinsurance treaties above certain thresholds, and on August 13, 2025, the NAIC Executive and Plenary adopted such guidelines, referred to as Actuarial Guideline LV (“AG 55”). The updated guidelines are designed as a testing and disclosure regime. The first reinsurance asset testing reports will be due in April 2026. In addition, the NAIC plans to review the disclosures following adoption of the guidelines to identify concerns with insurers’ approaches to asset adequacy testing, with the possibility of making additional changes that could lead to higher reserves for certain reinsurance agreements. We are actively monitoring developments associated with this NAIC initiative, which may be applicable to certain transactions that involve our life insurance subsidiaries acting as cedants. In July 2025, the NAIC also determined to reorganize a task force, the Invested Assets (E) Task Force, for the purpose of better understanding investment products with characteristics that pose unique risks to insurers and developing investment-related solvency policy changes. The task force will be effective in January 2026. The task force’s work covered results in changes to accounting policies and risk-based capital requirements, and we will continue to monitor developments that may be relevant to our life insurance subsidiaries.
Previous wording
Adjusted revenues exclude Net realized gains (losses) except for gains (losses) related to the disposition of real estate investments, income from non-operating litigation settlements (included in Other income for GAAP purposes) and changes in fair value of securities used to hedge guaranteed living benefits (included in Net investment income for GAAP purposes).
Current wording
Adjusted revenues exclude Net realized gains (losses) except for gains (losses) related to the disposition of real estate investments, revenues from businesses exited through reinsurance, and income from non-operating litigation settlements (included in Other income for GAAP purposes).
Previous wording
Certain of our variable annuity, fixed annuity and fixed index annuity contracts contain GMWBs and/or GMDBs which are accounted for as MRBs. Changes in the fair value of these MRBs (excluding changes related to our own credit risk), including certain rider fees attributed to the MRBs, along with changes in the fair value of derivatives used to hedge MRBs are recorded through “Change in the fair value of MRBs, net” and are excluded from APTOI.
Current wording
Certain of our variable annuity, fixed annuity and fixed index annuity contracts contain GMWBs and/or GMDBs which are accounted for as MRBs. Changes in the fair value of these MRBs (excluding changes related to our own credit risk), including certain rider fees attributed to the MRBs are excluded from APTOI. MRBs related to the variable annuity business subject to the reinsurance agreements with CSLR are reported in the “Businesses exited through reinsurance” line item.
Previous wording
(b)Excludes client deposits into advisory and brokerage accounts of $744 million and $783 million for the three months ended June 30, 2025 and 2024, respectively, and $1.5 billion and $1.5 billion for the six months ended June 30, 2025 and 2024, respectively.
Current wording
(b)Excludes client deposits into advisory and brokerage accounts of $816 million and $761 million for the three months ended September 30, 2025 and 2024, respectively, and $2.3 billion and $2.3 billion for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
(c)Includes inflows related to in-plan mutual funds of $842 million and $790 million for the three months ended June 30, 2025 and 2024, respectively, and $1.6 billion and $1.6 billion for the six months ended June 30, 2025 and 2024, respectively.
Current wording
(c)Includes inflows related to in-plan mutual funds of $712 million and $770 million for the three months ended September 30, 2025 and 2024, respectively, and $2.3 billion and $2.4 billion for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three and six months ended June 30, 2025 and 2024. For factors that relate primarily to a specific business, see “— Business Segment Operations.”
Current wording
The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three and nine months ended September 30, 2025 and 2024. For factors that relate primarily to a specific business, see “— Business Segment Operations.”
Previous wording
We recorded a pre-tax loss of $608 million in the three months ended June 30, 2025 compared to pre-tax income of $456 million in the three months ended June 30, 2024. The change in pre-tax results was primarily due to:
Current wording
We recorded a pre-tax loss of $42 million in the three months ended September 30, 2025 compared to pre-tax loss of $1.6 billion in the three months ended September 30, 2024. The change in pre-tax loss was primarily due to:
Previous wording
•higher net realized losses of $1.2 billion primarily driven by higher losses on foreign exchange transactions, losses from derivatives, losses from index-linked interest credited embedded derivatives, net of related hedges, higher losses on the Fortitude Re balances including, the funds withheld embedded derivative and higher realized losses on sales of AFS securities including, a $250 million intent to sell realized loss recognized in 2025;
Current wording
•lower net realized losses of $1.6 billion primarily driven by lower losses on the Fortitude Re balances, gains from changes in foreign exchange rates and lower losses from derivatives and index-linked interest credited embedded derivatives, net of related hedges;
Previous wording
•unfavorable change in the fair value of market risk benefits, net of $450 million primarily driven by the impacts of relative changes in interest rates and lower equity market performance compared to the comparable period in the prior year;
Current wording
•lower unfavorable change in the fair value of market risk benefits, net of $304 million primarily driven by the impacts of interest rates compared to the comparable period in the prior year and the impact of the reinsurance agreement with CSLR.
Previous wording
•lower policyholder benefits of $1.4 billion primarily on new pension risk transfer business; and
Current wording
•higher policyholder benefits of $1.4 billion primarily on new pension risk transfer business;
Previous wording
For the three months ended June 30, 2025, there was an income tax expense of $60 million on loss from operations, resulting in an effective tax rate on loss from operations of (9.9)%.
Current wording
For the three months ended September 30, 2025, there was an income tax benefit of $179 million on loss from operations, resulting in an effective tax rate on loss from operations of 426.2% primarily due to a release of a valuation allowance.
Previous wording
Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024 Net Income Comparison
Current wording
Nine Months Ended September 30, 2025 to Nine Months Ended September 30, 2024 Net Income Comparison
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
•higher policyholder benefits of $1.4 billion primarily on new pension risk transfer business;
Current report — wording carried from elsewhere
Higher net realized losses excluding Fortitude Re funds withheld assets in the nine months ended September 30, 2025 compared to same period in the prior year, were primarily due to higher losses on derivatives and foreign exchange transactions in the current period compared to lower losses on derivatives and foreign exchange transactions in the same period in the prior year.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Includes advisory fee income from registered investment services, 12b-1 fees (i.e., marketing and distribution fee income), and other asset management fee income.
Previous report — wording carried elsewhere
•higher non-deferrable insurance commissions of $24 million primarily due to continued growth in the fixed index annuity; and
Previous report — wording carried elsewhere
•lower general operating expenses of $12 million.