American National Group (ANG) Q1 2026 income improves but OCI turns negative
Filing Impact
Filing Sentiment
Form Type
10-Q
American National Group Inc. reported total revenues of $1.6 billion for the quarter ended March 31 2026, down from $1.89 billion a year earlier, mainly as net premiums declined after the P&C divestiture. Despite lower revenue, results improved sharply: net loss attributable to the common stockholder narrowed to $7 million from $236 million in the prior-year quarter as policyholder benefits and related derivative impacts were lower.
Net investment income increased modestly to $1.29 billion, supported by a larger available-for-sale bond portfolio of $61.18 billion at fair value. However, equity securities produced $52 million in losses and available-for-sale fixed maturities showed net realized and unrealized declines, contributing to other comprehensive loss of $383 million. Comprehensive loss attributable to stockholders was $384 million versus income of $124 million a year ago, driven largely by a $667 million swing in net unrealized investment gains.
Operating cash flow remained strong at $699 million, slightly above last year, while heavy portfolio repositioning and derivatives activity led to $4.31 billion of net cash used in investing. Cash and cash equivalents fell to $8.93 billion from $11.66 billion at year-end. Policyholders’ account balances grew to $94.08 billion, reflecting ongoing expansion in annuities and life products, while total assets were broadly stable at $130.41 billion.
Positive
- None.
Negative
- None.
Insights
Results improved at the income line, but investment volatility drove a large comprehensive loss.
American National Group’s core earnings picture strengthened as net loss to the common stockholder shrank to $7 million from $236 million. Lower policyholder benefits and derivative-related expenses offset weaker premium revenue following the transfer of property and casualty subsidiaries.
Investment results were mixed. Net investment income edged up to $1.29 billion, helped by a larger $61.18 billion bond portfolio. Yet falling values in available-for-sale securities and $52 million of equity losses produced a $383 million other comprehensive loss and a $384 million comprehensive loss to stockholders, largely reversing last year’s positive swing.
From a balance sheet perspective, total assets were steady around $130 billion and policyholders’ account balances increased to $94.08 billion, underpinned by annuity growth. Operating cash flow of $699 million remained robust, while net investing outflows of $4.31 billion and lower cash reflect active portfolio management. Overall, the quarter shows better underlying profitability but continued sensitivity to interest-rate and market movements flowing through capital.
Key Figures
Total revenues: $1,600 million
Net loss attributable to common stockholder: $7 million
Net loss attributable to common stockholder prior year: $236 million
+5 more
8 metrics
Total revenues
$1,600 million
Three months ended March 31, 2026
Net loss attributable to common stockholder
$7 million
Three months ended March 31, 2026
Net loss attributable to common stockholder prior year
$236 million
Three months ended March 31, 2025
Other comprehensive income (loss)
$383 million loss
Three months ended March 31, 2026
Available-for-sale fixed maturity securities
$61,180 million
Fair value as of March 31, 2026
Operating cash flows
$699 million
Three months ended March 31, 2026
Cash and cash equivalents
$8,934 million
As of March 31, 2026
Policyholders’ account balances
$94,081 million
As of March 31, 2026
Key Terms
market risk benefits, variable interest entities, funds withheld for reinsurance liabilities, deferred policy acquisition costs, +2 more
6 terms
market risk benefits financial
"Change in fair value of market risk benefits | 139 | 361 Operating expenses"
Market risk benefits are the extra returns or advantages investors expect or receive for taking on broad, system‑wide swings in the overall market — essentially the premium for bearing risk that cannot be eliminated by diversification. This matters because it helps investors weigh whether the potential higher gains justify larger price swings, guides how portfolios are balanced, and sets expectations for compensation when choosing riskier market exposures; think of it as the extra pay you demand for riding a roller‑coaster instead of a calm bus ride.
variable interest entities financial
"Some of these investments have been determined to be VIEs."
A variable interest entity (VIE) is a business that a company controls through contracts or special arrangements instead of owning a majority of its shares, like steering a puppet without holding its ticket. Investors care because these arrangements can hide who really bears the financial risks and rewards, affect how assets and liabilities appear on financial statements, and create extra legal or enforcement uncertainty that can change the value and risk of an investment.
funds withheld for reinsurance liabilities financial
"Funds withheld for reinsurance liabilities | 2,969 | 3,088"
deferred policy acquisition costs financial
"Deferred policy acquisition costs, deferred sales inducements and value of business acquired | 11,615 | 11,513"
Deferred policy acquisition costs are upfront sales and onboarding expenses — such as commissions and underwriting costs — that an insurer records as an asset and then spreads out over the life of the insurance policies as the company earns premiums. For investors, these costs matter because how quickly they are written off affects reported profits and the apparent health of an insurer’s balance sheet, similar to spreading the cost of a season ticket over the months you use it.
other comprehensive income financial
"Total other comprehensive income (loss) | ( 383 ) | 330 Comprehensive income (loss)"
Other comprehensive income is a section of a company’s financial statements that records gains and losses not shown in the regular profit-and-loss line, such as paper gains or losses on certain investments, pension plan adjustments, and changes from converting foreign operations. These items don’t represent cash earned or spent today but change a company’s reported net worth, like value swings in things stored in a closet rather than money in your wallet, and help investors spot hidden strengths or risks to long-term financial health.
fair value hedges financial
"The Company has designated and accounted for certain foreign exchange forwards as fair value hedges"
Fair value hedges are financial contracts used to offset changes in the market value of a specific asset or liability, like locking a price to protect against swings in value. For investors, they matter because they reduce sudden swings in reported earnings and balance-sheet values that arise from market movements, helping reveal the company’s underlying performance much like insurance smooths out the financial impact of an unexpected loss.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended March 31, 2026
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from ________ to ________
Commission file number: 001-31911
(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices, including zip code)
(888 ) 221-1234
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
☒ | Smaller reporting company | ||||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of May 13, 2026, 10,000 shares of our common shares were outstanding, all of which are held by Brookfield Wealth Solutions Ltd. and its affiliates.
American National Group Inc. meets the conditions set forth in General Instruction (H)(1)(a) and (b) for Form 10-Q and therefore is filing this Form 10-Q in the reduced disclosure format.
TABLE OF CONTENTS
| Page | |||||
PART I - FINANCIAL INFORMATION | |||||
Item 1: Financial Statements (unaudited): | |||||
Condensed Consolidated Statements of Financial Position (unaudited) | 2 | ||||
Condensed Consolidated Statements of Operations (unaudited) | 4 | ||||
Condensed Consolidated Statements of Comprehensive Income (unaudited) | 5 | ||||
Condensed Consolidated Statements of Changes in Equity (unaudited) | 6 | ||||
Condensed Consolidated Statements of Cash Flows (unaudited) | 7 | ||||
Notes to Condensed Consolidated Financial Statements (unaudited) | 9 | ||||
Note 1. Organization and Description of the Company | 9 | ||||
Note 2. Summary of Significant Accounting Policies | 9 | ||||
Note 3. Available-For-Sale Fixed Maturity Securities | 10 | ||||
Note 4. Equity Securities | 13 | ||||
Note 5. Mortgage Loans on Real Estate | 14 | ||||
Note 6. Private Loans | 16 | ||||
Note 7. Real Estate and Real Estate Partnerships | 16 | ||||
Note 8. Variable Interest Entities and Equity Method Investments | 17 | ||||
Note 9. Derivative Instruments | 18 | ||||
Note 10. Net Investment Income and Investment Related Gains (Losses) | 23 | ||||
Note 11. Fair Value of Financial Instruments | 24 | ||||
Note 12. Reinsurance | 33 | ||||
Note 13. Separate Account Assets and Liabilities | 34 | ||||
Note 14. Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired | 35 | ||||
Note 15. Intangible Assets | 36 | ||||
Note 16. Future Policy Benefits | 37 | ||||
Note 17. Policyholders' Account Balances | 40 | ||||
Note 18. Market Risk Benefits | 42 | ||||
Note 19. Long Term Borrowings | 43 | ||||
Note 20. Income Taxes | 43 | ||||
Note 21. Stockholders' Equity | 43 | ||||
Note 22. Accumulated Other Comprehensive Income | 44 | ||||
Note 23. Related Party Transactions | 44 | ||||
Note 24. Segment Reporting | 45 | ||||
Note 25. Financial Commitments and Contingencies | 47 | ||||
Note 26. Discontinued Operations | 48 | ||||
Note 27. Subsequent Events | 48 | ||||
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations | 49 | ||||
Item 3: Quantitative and Qualitative Disclosures about Market Risk | 58 | ||||
Item 4: Controls and Procedures | 60 | ||||
PART II - OTHER INFORMATION | |||||
Item 1: Legal Proceedings | 60 | ||||
Item 1A: Risk Factors | 60 | ||||
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds | 60 | ||||
Item 3: Defaults Upon Senior Securities | 60 | ||||
Item 4: Mine Safety Disclosures | 60 | ||||
Item 5: Other Information | 60 | ||||
Item 6: Exhibits | 61 | ||||
Signatures | 62 | ||||
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
| AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||||
(Dollars in millions, except share and per share data) | |||||||||||
(Unaudited) | |||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Investments: | |||||||||||
Available-for-sale fixed maturity securities, at fair value (net of allowance for credit losses of $ | $ | $ | |||||||||
| Equity securities, at fair value | |||||||||||
Mortgage loans on real estate, at amortized cost (net of allowance for credit losses of $ | |||||||||||
Private loans, at amortized cost (net of allowance for credit loss of $ | |||||||||||
Real estate and real estate partnerships (net of accumulated depreciation of $ | |||||||||||
| Investment funds | |||||||||||
| Policy loans | |||||||||||
| Short-term investments, at estimated fair value | |||||||||||
| Other invested assets | |||||||||||
| Total investments | |||||||||||
| Cash and cash equivalents | |||||||||||
| Accrued investment income | |||||||||||
| Deferred policy acquisition costs, deferred sales inducements and value of business acquired | |||||||||||
| Deferred tax asset | |||||||||||
| Reinsurance recoverables and deposit assets | |||||||||||
Property and equipment (net of accumulated depreciation of $ | |||||||||||
Intangible assets (net of accumulated amortization of $ | |||||||||||
| Goodwill | |||||||||||
| Other assets | |||||||||||
| Separate account assets | |||||||||||
| Total assets | $ | $ | |||||||||
2
| AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||||
(Dollars in millions, except share and per share data) | |||||||||||
(Unaudited) | |||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||
| Liabilities | |||||||||||
| Future policy benefits | $ | $ | |||||||||
| Policyholders’ account balances | |||||||||||
| Policy and contract claims | |||||||||||
| Market risk benefits | |||||||||||
| Due to related parties | |||||||||||
| Other policyholder funds | |||||||||||
| Notes payable | |||||||||||
| Long term borrowings | |||||||||||
| Funds withheld for reinsurance liabilities | |||||||||||
| Other liabilities | |||||||||||
| Separate account liabilities | |||||||||||
| Total liabilities | |||||||||||
Commitments and Contingencies (Note 25) | |||||||||||
| Equity | |||||||||||
Preferred stock, Series D; par value $ 2026 - 2025 - | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated other comprehensive income, net of taxes | |||||||||||
| Retained earnings | |||||||||||
| Non-controlling interests | |||||||||||
| Total equity | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
See accompanying notes to the unaudited condensed consolidated financial statements.
3
AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions)
(Unaudited)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net premiums | $ | $ | |||||||||||||||||||||
| Other policy revenue | |||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||
| Investment related gains (losses) | ( | ||||||||||||||||||||||
| Other income | |||||||||||||||||||||||
| Total revenues | |||||||||||||||||||||||
| Policyholder benefits and claims incurred | |||||||||||||||||||||||
| Interest sensitive contract benefits | |||||||||||||||||||||||
| Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired | |||||||||||||||||||||||
| Change in fair value of insurance-related derivatives and embedded derivatives | |||||||||||||||||||||||
| Change in fair value of market risk benefits | |||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Total benefits and expenses | |||||||||||||||||||||||
| Net income (loss) before income taxes | ( | ||||||||||||||||||||||
| Income tax expense (benefit) | ( | ||||||||||||||||||||||
| Income (loss) from continuing operations | ( | ||||||||||||||||||||||
| Income from discontinuing operations, net of tax | |||||||||||||||||||||||
| Net income (loss) | ( | ||||||||||||||||||||||
| Less: Net income from continuing operations attributable to noncontrolling interests, net of tax | |||||||||||||||||||||||
| Net loss attributable to American National Group Inc. stockholders | ( | ( | |||||||||||||||||||||
| Less: Preferred stock dividends and redemption | |||||||||||||||||||||||
| Net loss attributable to American National Group Inc. common stockholder | $ | ( | $ | ( | |||||||||||||||||||
See accompanying notes to the unaudited condensed consolidated financial statements.
4
AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in millions)
(Unaudited)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net income (loss) | $ | $ | ( | ||||||||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
| Change in net unrealized investment gains | ( | ||||||||||||||||||||||
| Change in discount rate for future policy benefits | ( | ||||||||||||||||||||||
| Change in instrument-specific credit risk for market risk benefits | |||||||||||||||||||||||
| Defined benefit pension plan adjustment | ( | ( | |||||||||||||||||||||
| Total other comprehensive income (loss) | ( | ||||||||||||||||||||||
| Comprehensive income (loss) | ( | ||||||||||||||||||||||
| Less: Comprehensive income attributable to noncontrolling interests | |||||||||||||||||||||||
| Comprehensive income (loss) attributable to American National Group Inc. stockholders | $ | ( | $ | ||||||||||||||||||||
See accompanying notes to the unaudited condensed consolidated financial statements.
5
AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Dollars in millions)
(Unaudited)
| Preferred Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||
| For the three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Net income (loss) for period | — | — | — | ( | |||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
| Contributions from (distributions to) shareholders, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
| Consolidations (deconsolidations) of noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||||||||
| Contributions from (distributions to) noncontrolling interests | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Dividends | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Other | — | — | — | ||||||||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Preferred Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||
| For the three months ended March 31, 2025 | |||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Net income (loss) for period | — | — | — | ( | ( | ||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
| Contributions from (distributions to) noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||||||||
| Dividends | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Preferred stock issuance | — | — | — | — | |||||||||||||||||||||||||||||||
| Preferred stock redemption | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Other | — | — | — | ||||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
See accompanying notes to the unaudited condensed consolidated financial statements.
6
AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities: | |||||||||||
| Net income (loss) | $ | $ | ( | ||||||||
| Less: Net income from discontinued operations | ( | ||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Other policy revenue | ( | ( | |||||||||
| Accretion on investments | ( | ( | |||||||||
| Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired | |||||||||||
| Deferral of policy acquisition costs | ( | ( | |||||||||
| Gains on investments and derivatives | |||||||||||
| Other losses (gains) | ( | ||||||||||
| Provisions for credit losses | |||||||||||
| Income from real estate partnerships, investment funds and corporations | ( | ( | |||||||||
| Distributions from real estate partnerships, investment funds and corporations | |||||||||||
| Interest credited to policyholders' account balances | |||||||||||
| Change in fair value of embedded derivatives | ( | ( | |||||||||
| Depreciation and amortization | |||||||||||
| Deferred income taxes | ( | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Insurance-related liabilities | |||||||||||
| Funds withheld for reinsurance liabilities | ( | ( | |||||||||
| Reinsurance recoverables and deposit assets | |||||||||||
| Accrued investment income | ( | ( | |||||||||
| Working capital and other | ( | ||||||||||
| Cash used by operating activities - discontinued operations | ( | ||||||||||
| Cash flows provided by operating activities | |||||||||||
| Investing activities: | |||||||||||
| Purchase of investments: | |||||||||||
| Available-for-sale fixed maturity securities | ( | ( | |||||||||
| Equity securities | ( | ||||||||||
| Mortgage loans on real estate | ( | ( | |||||||||
| Private loans | ( | ( | |||||||||
| Investment real estate and real estate partnerships | ( | ( | |||||||||
| Investment funds | ( | ( | |||||||||
| Short-term investments | ( | ( | |||||||||
| Other invested assets | ( | ( | |||||||||
| Proceeds from sales and maturities of investments: | |||||||||||
| Available-for-sale fixed maturity securities | |||||||||||
| Equity securities | |||||||||||
| Mortgage loans on real estate | |||||||||||
| Private loans | |||||||||||
| Investment real estate and real estate partnerships | |||||||||||
| Investment funds | |||||||||||
| Short-term investments | |||||||||||
| Other invested assets | |||||||||||
| Purchases of derivatives | ( | ( | |||||||||
| Proceeds from sales and maturities of derivatives | |||||||||||
7
AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Dollars in millions)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Purchase of intangibles and property and equipment | ( | ( | |||||||||
| Change in collateral held for derivatives | ( | ( | |||||||||
| Other | ( | ||||||||||
| Cash from investing activities - discontinued operations | |||||||||||
| Cash flows used in investing activities | ( | ( | |||||||||
| Financing activities: | |||||||||||
| Issuance of preferred equity | |||||||||||
| Redemption of preferred equity | ( | ||||||||||
| Dividends paid to stockholders | ( | ( | |||||||||
| Borrowings from related parties | |||||||||||
| Repayment of borrowings to related parties | ( | ( | |||||||||
| Borrowings from external parties | |||||||||||
| Borrowings issued to reinsurance entities | |||||||||||
| Repayment of borrowings issued to reinsurance entities | ( | ||||||||||
| Policyholders’ account deposits | |||||||||||
| Policyholders’ account withdrawals | ( | ( | |||||||||
| Issuance of equity, noncontrolling interests | |||||||||||
| Distributions to noncontrolling interests | ( | ||||||||||
| Cash flows provided by financing activities | |||||||||||
| Cash and cash equivalents | |||||||||||
| Cash and cash equivalents, beginning of period | |||||||||||
| Net change during the period | ( | ( | |||||||||
| Cash and cash equivalents, end of period | |||||||||||
| Less: Cash and cash equivalents of discontinued operations | |||||||||||
| Cash and cash equivalents, end of period | $ | $ | |||||||||
| Supplementary cash flow disclosure: | |||||||||||
| Cash taxes paid (net of refunds received) | $ | ( | $ | ( | |||||||
| Cash interest paid | |||||||||||
See accompanying notes to the unaudited condensed consolidated financial statements.
8
AMERICAN NATIONAL GROUP INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2026
(Unaudited)
1. Organization and Description of the Company
American National Group Inc., together with its subsidiaries (collectively, “ANGI”, “we”, “our”, “us”, or the “Company”) is focused on securing the financial futures of individuals and institutions through a range of insurance and retirement services. Our business is presently conducted through our subsidiaries under two operating segments, which we refer to as our Annuities and Life Insurance segments. We conduct our business in 50 states, the District of Columbia, Bermuda, Guam, and Puerto Rico. ANGI is an indirect, wholly-owned subsidiary of Brookfield Wealth Solutions Ltd.
On October 1, 2025, the Company completed the transfer of all of its property and casualty subsidiaries, including American National Property And Casualty Company, United Farm Family Insurance Company and Farm Family Casualty Insurance Company and their wholly-owned subsidiaries (collectively, the “P&C Subsidiaries”) to Argo Group International Holdings, Inc., which was subsequently renamed to Clearbrook Group Holdings Inc. (“Clearbrook”). Clearbrook and the Company are both wholly-owned subsidiaries of Brookfield Wealth Solutions Ltd. Amounts in the financial statements and notes thereto have been retrospectively adjusted and reported as discontinued operations. Refer to Note 26 - Discontinued Operations in the notes to the condensed consolidated financial statements for more information.
2. Summary of Significant Accounting Policies
The unaudited condensed consolidated financial statements and notes thereto, including all prior periods presented, have been prepared under accounting principles generally accepted in the United States of America (“GAAP”). The financial statements are prepared on a going concern basis and have been presented in U.S. dollars (“USD”) rounded to the nearest million unless otherwise indicated. The financial statements should be read in conjunction with the December 31, 2025 audited consolidated financial statements of the Company included in the Form 10-K, filed with the SEC on March 30, 2026. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results for any subsequent period or the entire fiscal year ending December 31, 2026. These financial statements reflect all adjustments (consisting of normal recurring adjustments, including reclassifications) which are, in the opinion of management, necessary for a fair and comparable statement of results for the interim periods presented in accordance with GAAP.
The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Included among the material (or potentially material) reported amounts and disclosures that require the use of estimates are fair value of certain financial assets, future policy benefits (“FPB”), market risk benefits (“MRB”), valuation of embedded derivatives in policyholders’ account balances (“PAB”), and deferred income taxes, including the recoverability of deferred tax assets. Such estimates and assumptions are subject to inherent uncertainties, which may result in actual amounts differing from reported amounts.
Basis of Consolidation
These financial statements include the accounts of the Company and its consolidated subsidiaries, which are legal entities where the Company has a controlling financial interest by either holding a majority voting interest or as the primary beneficiary of the variable interest entity (“VIE”). Entities that are determined not to be VIEs are voting interest entities (“VOEs”), which are evaluated under the voting interest model, under which a controlling financial interest is established through a majority voting interest or through other means.
The consolidation assessment depends on the specific facts and circumstances for each entity and requires judgment. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Refer to Note 2 of the Company’s December 31, 2025 audited consolidated financial statements for a further description of the Company’s accounting policies regarding consolidation.
Adoption of New Accounting Pronouncements
In the current period, the Company did not adopt any Accounting Standard Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”) that was material in presentation or amount.
Recently Issued Accounting Pronouncements
The Company continues to assess the impacts on the financial statements of the following ASUs issued but not yet adopted as of March 31, 2026. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount.
9
ASU 2024-03 – On November 4, 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this ASU require public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. This ASU will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, to be applied on either a retrospective or prospective basis subject to certain exceptions, with early adoption permitted. We are currently evaluating the impact of this ASU on our financial statements. However, as they apply to disclosure requirements, the adoption of this ASU is not anticipated to have a material impact on our profitability, financial position or cash flows.
ASU 2025-06 – On September 18, 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Improvements to Accounting for Internal-Use Software. The amendments in this ASU aim to simplify and modernize the guidance for internal-use software costs by removing stage-based development references and introducing a principle-based approach for capitalization criteria. Among other things, it clarifies when costs should be capitalized versus expensed, eliminates certain terminology, and aligns the guidance more closely with current software development practices. This ASU will be effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, and should be applied prospectively, with early adoption permitted. Entities may also elect retrospective application or a modified retrospective application. The Company is currently assessing the potential impact of adopting this standard on its consolidated financial statements and related disclosures.
3. Available-For-Sale Fixed Maturity Securities
The total amortized cost, fair value, allowance for credit losses, and gross unrealized gains and losses of available-for-sale fixed maturity securities are shown below:
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| March 31, 2026 | |||||||||||||||||||||||||||||
| U.S. treasury and government | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| U.S. state and municipal | ( | ( | |||||||||||||||||||||||||||
| Foreign governments | ( | ||||||||||||||||||||||||||||
| Corporate debt securities | ( | ||||||||||||||||||||||||||||
| Residential mortgage-backed securities | ( | ||||||||||||||||||||||||||||
| Commercial mortgage-backed securities | ( | ||||||||||||||||||||||||||||
| Collateralized debt securities | ( | ||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||
| U.S. treasury and government | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| U.S. state and municipal | ( | ( | |||||||||||||||||||||||||||
| Foreign governments | |||||||||||||||||||||||||||||
| Corporate debt securities | ( | ||||||||||||||||||||||||||||
| Residential mortgage-backed securities | ( | ||||||||||||||||||||||||||||
| Commercial mortgage-backed securities | ( | ||||||||||||||||||||||||||||
| Collateralized debt securities | ( | ||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
10
The amortized cost and fair value of available-for-sale fixed maturity securities at March 31, 2026, by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Residential mortgage-backed securities, commercial mortgage-backed securities and collateralized debt securities, which are not due at a single maturity, have been separately presented below.
Available-For-Sale | |||||||||||
| Amortized Cost | Fair Value | ||||||||||
| (Dollars in millions) | |||||||||||
| Due in one year or less | $ | $ | |||||||||
| Due after one year through five years | |||||||||||
| Due after five years through ten years | |||||||||||
| Due after ten years | |||||||||||
| Residential mortgage-backed securities | |||||||||||
| Commercial mortgage-backed securities | |||||||||||
| Collateralized debt securities | |||||||||||
| Total | $ | $ | |||||||||
Proceeds from sales of available-for-sale fixed maturity securities, with the related gross realized gains and losses, are shown below:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Proceeds from sales of available-for-sale fixed maturity securities | $ | $ | |||||||||||||||||||||
| Gross realized gains | |||||||||||||||||||||||
| Gross realized (losses) | ( | ( | |||||||||||||||||||||
The Company has pledged bonds in connection with certain agreements and transactions, such as financing and reinsurance agreements. The carrying value of bonds pledged was $10.4 billion and $10.4 billion as of March 31, 2026 and December 31, 2025, respectively.
In accordance with various regulations, the Company has securities on deposit with regulating authorities with a carrying value of $51 million and $52 million as of March 31, 2026 and December 31, 2025, respectively. There are no restrictions on these assets.
As of March 31, 2026 there were no amounts loaned under reverse repurchase agreements. As of December 31, 2025, amounts loaned under reverse repurchase agreements were $400 million and the fair value of the collateral, comprised of equity securities, was $872 million.
11
The gross unrealized losses and fair value of available-for-sale fixed maturity securities, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position due to market factors are shown below:
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Issues | Gross Unrealized Losses (1) | Fair Value | Number of Issues | Gross Unrealized Losses (1) | Fair Value | Number of Issues | Gross Unrealized Losses (1) | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. treasury and government | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| U.S. state and municipal | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign governments | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate debt securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateralized debt securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | ( | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. treasury and government | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| U.S. state and municipal | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign governments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate debt securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateralized debt securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | ( | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
The unrealized losses at March 31, 2026 are principally related to the timing of the purchases of certain securities, which carry less yield than those available at March 31, 2026. Approximately 97 % and 92 % of the unrealized losses on fixed maturity securities shown in the above table for March 31, 2026 and December 31, 2025, respectively, are on securities that are rated investment grade, defined as being the highest two National Association of Insurance Commissioners (“NAIC”) designations.
The Company expects to recover the amortized cost on all securities except for those securities on which we recognized an allowance for credit loss. In addition, as the Company did not have the intent to sell fixed maturity securities with unrealized losses and it was not more likely than not that the Company would be required to sell these securities prior to recovery of the amortized cost, which may be maturity, the Company did not write down these investments to fair value through the Condensed Consolidated Statements of Operations.
Allowance for Credit Losses
Several assumptions and underlying estimates are made in the evaluation of allowance for credit loss. Examples include financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends and implications of rating agency actions and offering prices. Based on this evaluation, unrealized losses on available-for-sale securities where an allowance for credit loss was not recorded were concentrated within the financials sector as of March 31, 2026 and December 31, 2025.
12
The rollforward of the allowance for credit losses for available-for-sale fixed maturity securities is shown below:
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||
U.S. State and Political Subdivisions | Corporate Securities | Residential Mortgage Backed Securities | Collateralized Debt Securities | Total | |||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Beginning balance | $ | ( | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||
| Changes in previously recorded allowance | ( | ( | |||||||||||||||||||||||||||||||||
Balance as of March 31, 2026 | $ | ( | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||
U.S. State and Political Subdivisions | Corporate Securities | Residential Mortgage Backed Securities | Collateralized Debt Securities | Total | |||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Beginning balance | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
| Credit losses recognized on securities for which credit losses were not previously recorded | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Reductions for securities sold during the period | |||||||||||||||||||||||||||||||||||
| Changes in previously recorded allowance | |||||||||||||||||||||||||||||||||||
Balance as of March 31, 2025 | $ | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||
4. Equity Securities
The net gains (losses) on equity securities recognized in “Investment related gains (losses)” on the Condensed Consolidated Statements of Operations are shown below:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Unrealized gains (losses) on equity securities | $ | ( | $ | ||||||||||||||||||||
| Net gains on equity securities sold | |||||||||||||||||||||||
| Net gains (losses) on equity securities | $ | ( | $ | ||||||||||||||||||||
Equity securities by market sector distribution are shown below, based on carrying value:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Education | % | % | |||||||||
| Energy and utilities | % | % | |||||||||
| Finance | % | % | |||||||||
| Healthcare | % | % | |||||||||
| Industrials | % | % | |||||||||
| Information technology | % | % | |||||||||
| Other | % | % | |||||||||
| Total | % | % | |||||||||
13
5. Mortgage Loans on Real Estate
The Company disaggregates its mortgage loan investments into two portfolio segments: commercial and residential. Commercial mortgage loans include agricultural mortgage loans. The breakdown of mortgage loans on real estate by portfolio segment is as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| Commercial mortgage loans | $ | $ | |||||||||
| Residential mortgage loans | |||||||||||
| Total | |||||||||||
| Allowance for credit losses | ( | ( | |||||||||
| Total, net of allowance | $ | $ | |||||||||
The Company’s commercial mortgage loan portfolio consists of loans collateralized by the related properties and diversified as to property type, location and loan size. The geographic categories come from the U.S. Census Bureau’s “Census Regions and Divisions of the United States”. The commercial mortgage loan portfolio is summarized by geographic region and property type as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Amount | Percentage | Amount | Percentage | ||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Geographic distribution | |||||||||||||||||||||||
| Pacific | $ | % | $ | % | |||||||||||||||||||
| Mountain | % | % | |||||||||||||||||||||
| West North Central | % | % | |||||||||||||||||||||
| West South Central | % | % | |||||||||||||||||||||
| East North Central | % | % | |||||||||||||||||||||
| East South Central | % | % | |||||||||||||||||||||
| Middle Atlantic | % | % | |||||||||||||||||||||
| South Atlantic | % | % | |||||||||||||||||||||
| New England | % | % | |||||||||||||||||||||
| Other (multi-region, non-US) | % | % | |||||||||||||||||||||
| % | % | ||||||||||||||||||||||
| Allowance for credit losses | ( | ( | |||||||||||||||||||||
| Total, net of allowance | $ | $ | |||||||||||||||||||||
| Property type distribution | |||||||||||||||||||||||
| Agricultural | $ | % | $ | % | |||||||||||||||||||
| Apartment | % | % | |||||||||||||||||||||
| Hotel | % | % | |||||||||||||||||||||
| Industrial | % | % | |||||||||||||||||||||
| Office | % | % | |||||||||||||||||||||
| Parking | % | % | |||||||||||||||||||||
| Retail | % | % | |||||||||||||||||||||
| Storage | % | % | |||||||||||||||||||||
| Other | % | % | |||||||||||||||||||||
| % | % | ||||||||||||||||||||||
| Allowance for credit losses | ( | ( | |||||||||||||||||||||
| Total, net of allowance | $ | $ | |||||||||||||||||||||
There was no
Allowance for Credit Losses
The Company establishes a valuation allowance to provide for the risk of credit losses inherent in its mortgage loan portfolios. The valuation allowance is maintained at a level believed adequate by management to absorb estimated expected credit losses. The valuation allowance is based on amortized cost, which excludes accrued interest receivable. The Company does not measure a credit loss allowance on accrued interest receivable, and any uncollectible accrued interest receivable balances are written off to net investment income in a timely manner. The Company has written off $0 million and $2 million of uncollectible accrued interest receivable on its mortgage loan portfolios for the three months ended March 31, 2026 and 2025, respectively.
14
The rollforward of the allowance for credit losses for mortgage loans for the three months ended March 31, 2026 and 2025 is shown below:
| 2026 | 2025 | ||||||||||||||||||||||
| Commercial Mortgage Loans | Residential Mortgage Loans | Commercial Mortgage Loans | Residential Mortgage Loans | ||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Balance, as of January 1 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Provision | ( | ( | ( | ( | |||||||||||||||||||
| Writeoffs charged against the allowance | |||||||||||||||||||||||
| Balance, as of March 31 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Credit Quality Indicators
Mortgage loans are segregated by property-type and quantitative and qualitative allowance factors are applied. Qualitative factors are developed quarterly based on the pooling of assets with similar risk characteristics and historical loss experience adjusted for the expected trend in the current market environment. Credit losses are pooled by property type as it represents the most similar and reliable risk characteristics in our portfolio. The amortized cost of mortgage loans by year of origination by aging category are shown below:
| Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Total | |||||||||||||||||||||||||||||||||||
| As of March 31, 2026: | (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage loans | |||||||||||||||||||||||||||||||||||||||||
| Current | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| 30 - 59 days past due | |||||||||||||||||||||||||||||||||||||||||
| 60 - 89 days past due | |||||||||||||||||||||||||||||||||||||||||
| Non-accrual | |||||||||||||||||||||||||||||||||||||||||
| Residential mortgage loans | |||||||||||||||||||||||||||||||||||||||||
| Current | |||||||||||||||||||||||||||||||||||||||||
| 30 - 59 days past due | |||||||||||||||||||||||||||||||||||||||||
| 60 - 89 days past due | |||||||||||||||||||||||||||||||||||||||||
| Non-accrual | |||||||||||||||||||||||||||||||||||||||||
| Total mortgage loans on real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Allowance for credit losses | ( | ||||||||||||||||||||||||||||||||||||||||
| Total, net of allowance | $ | ||||||||||||||||||||||||||||||||||||||||
| Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | |||||||||||||||||||||||||||||||||||
| As of December 31, 2025: | (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage loans | |||||||||||||||||||||||||||||||||||||||||
| Current | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| 30 - 59 days past due | |||||||||||||||||||||||||||||||||||||||||
| 60 - 89 days past due | |||||||||||||||||||||||||||||||||||||||||
| Non-accrual | |||||||||||||||||||||||||||||||||||||||||
| Residential mortgage loans | |||||||||||||||||||||||||||||||||||||||||
| Current | |||||||||||||||||||||||||||||||||||||||||
| 30 - 59 days past due | |||||||||||||||||||||||||||||||||||||||||
| 60 - 89 days past due | |||||||||||||||||||||||||||||||||||||||||
| Non-accrual | |||||||||||||||||||||||||||||||||||||||||
| Total mortgage loans on real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Allowance for credit losses | ( | ||||||||||||||||||||||||||||||||||||||||
| Total, net of allowance | $ | ||||||||||||||||||||||||||||||||||||||||
It is the Company’s policy to not accrue interest on loans that are 90 days delinquent and where amounts are determined to be uncollectible. As of March 31, 2026 and December 31, 2025, 272 mortgage loans and 275 mortgage loans, respectively, were past due over 90 days or in nonaccrual status.
15
The Company’s commercial and residential mortgage loans may be subject to loan modifications. Loan modifications may be granted to borrowers experiencing financial difficulty and could include principal forgiveness, interest rate reduction, an other-than-significant delay or a term extension. A loan modification typically does not result in a change in valuation allowance as it is already incorporated into the Company’s allowance methodology. However, if the Company grants a borrower experiencing financial difficulty principal forgiveness, the amount of principal forgiven would be written off, which would reduce the amortized cost of the loan and result in an adjustment to the valuation allowance. The carrying amount of mortgage loans experiencing financial difficulty, for which modifications have been granted, was $0 million and $29 million for the three months ended March 31, 2026 and 2025, respectively.
6. Private Loans
The following table summarizes the credit ratings of our private loans:
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| A or higher | $ | $ | |||||||||
| BBB | |||||||||||
| BB and below | |||||||||||
| Unrated (1) | |||||||||||
| Total | $ | $ | |||||||||
(1)Due to the nature of private loans, external agency credit ratings may not be readily available. Where appropriate, the Company obtains non-published credit ratings from one or more third-party rating agencies, which are determined based on an independent evaluation of the transaction. For other loans without published or private credit ratings, the Company assigns internal risk ratings, based on its investment selection and monitoring process and policies. These internal risk ratings are categorized as “Unrated” above.
Allowance for Credit Losses
The rollforward of the allowance for credit losses for private loans is shown below for the three months ended March 31, 2026 and 2025:
| 2026 | 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| Balance at January 1 | $ | ( | $ | ( | |||||||
| Provision | ( | ||||||||||
| Balance at March 31 | $ | ( | $ | ( | |||||||
The Company’s private loans may be subject to loan modifications. Loan modifications may be granted to borrowers experiencing financial difficulties and could include term extensions. For the three months ended March 31, 2026 and 2025, the Company did not have a significant amount of private loans that it modified to borrowers experiencing financial difficulty. Impaired loans were not significant for any of the periods presented.
7. Real Estate and Real Estate Partnerships
The carrying amounts of real estate investments are as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Real Estate | Real Estate | ||||||||||||||||||||||
| Amount | Percentage | Amount | Percentage | ||||||||||||||||||||
| (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||
| Hotel | $ | % | $ | % | |||||||||||||||||||
| Industrial | % | % | |||||||||||||||||||||
| Land | % | % | |||||||||||||||||||||
| Office | % | % | |||||||||||||||||||||
| Retail | % | % | |||||||||||||||||||||
| Apartments | % | % | |||||||||||||||||||||
| Single family residential | % | % | |||||||||||||||||||||
| Other | % | % | |||||||||||||||||||||
| Total real estate | % | % | |||||||||||||||||||||
| Real estate partnerships | |||||||||||||||||||||||
| Total real estate and real estate partnerships | $ | $ | |||||||||||||||||||||
16
8. Variable Interest Entities and Equity Method Investments
Through our investment activities, we regularly invest in various entities including limited partnerships (“LPs”) and limited liability companies (“LLCs”) and frequently participate in the design with their sponsor, but in most cases, our involvement is limited to financing. Some of these investments have been determined to be VIEs. In certain instances, in addition to an economic interest in the entity, the Company holds the power to direct the most significant activities of the entity and is deemed the primary beneficiary. The Company consolidates all VIEs for which it is the primary beneficiary. The assets of consolidated VIEs are restricted and must first be used to settle their liabilities. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of the Company, as the Company’s obligation is limited to the amount of its committed investment. The Company has not provided financial or other support to these consolidated VIEs in the form of liquidity arrangements, guarantees or other commitments to third-parties that may affect the fair value or risk of its variable interest in these VIEs as of March 31, 2026 and December 31, 2025.
In addition to investment activities, certain of the Company’s subsidiaries are deemed VIEs. The Company is the primary beneficiary and consolidates these entities in the same manner as other entities in which the Company has a controlling financial interest by holding a majority voting interest.
Consolidated Variable Interest Entities
The assets and liabilities relating to the consolidated VIEs from our investment activities included in the financial statements are as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| Available-for-sale fixed maturity securities | $ | $ | |||||||||
| Equity securities | |||||||||||
| Mortgage loans on real estate, net of allowance | |||||||||||
| Private loans, net of allowance | |||||||||||
| Investment real estate | |||||||||||
| Real estate partnerships | |||||||||||
| Investment funds | |||||||||||
| Short-term investments | |||||||||||
Other invested assets | |||||||||||
| Cash and cash equivalents | |||||||||||
| Other assets | |||||||||||
| Total assets of consolidated VIEs | $ | $ | |||||||||
| Notes payable | $ | $ | |||||||||
| Other liabilities | |||||||||||
| Total liabilities of consolidated VIEs | $ | $ | |||||||||
Unconsolidated Variable Interest Entities
For certain of the Company’s investments in various entities that are determined to be VIEs, the Company is not the primary beneficiary. In some instances, a consolidated VIE involves one or more underlying entities for which the Company is not the primary beneficiary because it does not have the power to direct the most significant activities of these entities. These unconsolidated VIEs that are part of consolidated VIEs are reported primarily in “Real estate and real estate partnerships” on the Condensed Consolidated Statements of Financial Position. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of the Company, as the Company’s obligation is limited to the amount of its committed investment. The Company has not provided financial or other support to these unconsolidated VIEs in the form of liquidity arrangements, guarantees or other commitments to third-parties that may affect the fair value or risk of its variable interest in these VIEs as of March 31, 2026 and December 31, 2025.
17
The carrying amount and maximum exposure to loss relating to these unconsolidated VIEs are as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Carrying Amount | Maximum Exposure to Loss | Carrying Amount | Maximum Exposure to Loss | ||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Available-for-sale fixed maturity securities | $ | $ | $ | $ | |||||||||||||||||||
| Mortgage loans on real estate, net of allowance | |||||||||||||||||||||||
| Private loans, net of allowance | |||||||||||||||||||||||
| Real estate partnerships | |||||||||||||||||||||||
| Investment funds | |||||||||||||||||||||||
| Other invested assets | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
Equity Method Investments
Our investments in investment funds, real estate partnerships, and other partnerships, of which substantially all are LLCs or LPs, are accounted for using the equity method of accounting, except for certain investments that are fair valued due to the application of fair value option under ASC 825 or the consolidation of investment company VIEs under ASC 946. Fair value of certain investments are estimated using NAV as a practical expedient.
The Company’s investments that would require the use of equity method accounting, absent the election of the fair value option under ASC 825, were $6.9 billion and $6.4 billion as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026 and December 31, 2025, these equity method investments are primarily composed of $2.9 billion and $2.9 billion of real estate partnerships and $3.1 billion and $3.0 billion of investment funds, respectively, within the Consolidated Statements of Financial Position.
The Company generally recognizes its share of earnings in its equity method investments within “Net investment income”. For the three months ended March 31, 2026 and 2025, net investment income for Real estate partnerships and Investment funds in Note 10 - Net Investment Income and Investment Related Gains (Losses) principally represent our share of earnings in our equity method investments, including fair value changes from investments under ASC 825.
9. Derivative Instruments
The Company manages risks associated with certain assets and liabilities by using derivative financial instruments. Derivative financial instruments are financial contracts whose value is derived from underlying interest rates, exchange rates or other financial instruments. The Company does not invest in derivatives for speculative purposes.
Foreign exchange forwards, cross currency and interest rate swaps, and equity-indexed options are over-the-counter contractual agreements negotiated between counterparties. The Company purchases equity-indexed options as economic hedges against fluctuations in the equity markets to which equity-indexed products are exposed. Equity-indexed contracts include a fixed host universal-life insurance or annuity contract and an equity-indexed embedded derivative. Foreign exchange forwards, cross currency swaps, and interest rate swaps are used to manage our exposure to foreign currency risk, interest rate risk or both.
The notional principal represents the amount to which a rate or price is applied to determine the cash flows to be exchanged periodically and does not represent credit exposure. Maximum credit risk is the estimated cost of replacing derivative financial instruments which have a positive value, should the counterparty default.
Derivatives, except for embedded derivatives, are included in “Other invested assets” or “Other liabilities”, at fair value in the Condensed Consolidated Statements of Financial Position. Embedded derivative liabilities on funds withheld and modified coinsurance (“Modco”) arrangements and embedded derivative liabilities on indexed annuity products are included in the Condensed Consolidated Statements of Financial Position within the “Reinsurance funds withheld” and “Policyholders’ account balances” lines respectively, at fair value.
18
The notional and fair values of derivative instruments, presented in the Condensed Consolidated Statements of Financial Position, are shown below:
| Primary Underlying Risk | Location in the Condensed Consolidated Statements of Financial Position | March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Notional Amount | Carrying Value / Fair Value (1) | Notional Amount | Carrying Value / Fair Value (1) | |||||||||||||||||||||||||||||||||||||||||
| Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||||||||||||||||||||||
| Foreign exchange forwards | Foreign currency | Other invested assets, Other liabilities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
| Interest rate swaps | Interest rate | Other invested assets, Other liabilities | ||||||||||||||||||||||||||||||||||||||||||
| Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||||||||||||||||||||||
| Equity-indexed options | Equity | Other invested assets, Other liabilities | ||||||||||||||||||||||||||||||||||||||||||
| Foreign exchange forwards | Foreign currency | Other invested assets, Other liabilities | ||||||||||||||||||||||||||||||||||||||||||
| Cross currency swaps | Foreign currency | Other invested assets, Other liabilities | ||||||||||||||||||||||||||||||||||||||||||
| Embedded Derivatives: | ||||||||||||||||||||||||||||||||||||||||||||
| Indexed annuity products | Interest rate | Policyholders’ account balances | ||||||||||||||||||||||||||||||||||||||||||
| Funds withheld and Modco arrangements | Interest rate | Funds withheld for reinsurance liabilities | ||||||||||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
(1)The asset and liability balances are presented on a gross basis. Amounts are reported as “Other invested assets” and “Other liabilities” in the Condensed Consolidated Statements of Financial Position after the evaluation for rights of offset. See “Derivative Exposure” section of this note for further details.
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Derivatives Designated as Hedging Instruments
The Company has designated and accounted for certain foreign exchange forwards (“foreign currency derivatives”) as fair value hedges to protect a portion of the available-for-sale fixed maturity securities against changes in fair value due to changes in exchange rates. The Company has also designated and accounted for certain interest rate swaps (“interest rate derivatives”) as fair value hedges to convert a portion of PAB from a fixed rate liability to a floating rate liability.
For derivative financial instruments that were designated and qualified as fair value hedges, the gain or loss on the portion of the derivative instrument included in the assessment of hedge effectiveness and the offsetting gain or loss on the hedged item attributable to the hedged risk were recognized in the same line item in the Condensed Consolidated Statements of Operations. The unrealized gain or loss attributable to changes in exchange rates on the available-for-sale fixed maturity securities that were designated as part of the hedge were reclassified out of other comprehensive income (“OCI”) into “Investment related gains (losses)” in the Condensed Consolidated Statements of Operations. The remaining change in unrealized gain or loss on the hedged item not associated with the risk being hedged remained as a component of OCI. The gains (losses) on interest rate derivatives designated as hedging instruments for certain PAB are included in “Interest sensitive contract benefits” in the Condensed Consolidated Statements of Operations.
The following represents the amount of gains (losses) related to the derivatives and hedged items that qualify for fair value hedges:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Foreign currency derivatives: | |||||||||||||||||||||||
| Hedged items | $ | ( | $ | ||||||||||||||||||||
| Derivatives designated as hedging instruments | ( | ||||||||||||||||||||||
| Interest rate derivatives: | |||||||||||||||||||||||
| Hedged items | |||||||||||||||||||||||
| Derivatives designated as hedging instruments | ( | ( | |||||||||||||||||||||
| Gains (losses) on fair value hedges | $ | $ | |||||||||||||||||||||
The amortized cost of available-for-sale fixed maturity securities designated and qualifying as hedged items in fair value hedges in relation to foreign currency derivatives was $579 million and $593 million as of March 31, 2026 and December 31, 2025, respectively.
The following table presents the carrying amount and cumulative fair value hedging adjustments for a portion of PAB designated and qualifying as hedged items in fair value hedges in relation to interest rate derivatives:
| Carrying Amount of the Hedged Assets (Liabilities) | Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedge Assets (Liabilities) | ||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2026 | December 31, 2025 | ||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
| Location in the Condensed Consolidated Statements of Financial Position: | |||||||||||||||||||||||
| Policyholders’ account balances | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
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Derivatives Not Designated as Hedging Instruments
The following represents the financial statement location and amount of gains (losses) related to derivatives not designated as hedging instruments:
| Location in the Condensed Consolidated Statements of Operations | Derivative Gains (Losses) Recognized in Income | ||||||||||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| Equity-indexed options | Change in fair value of insurance-related derivatives and embedded derivatives | $ | ( | $ | ( | ||||||||||||||||||||||||
| Foreign exchange forwards | Investment related gains (losses) | ( | |||||||||||||||||||||||||||
| Cross currency swaps | Investment related gains (losses) | ( | |||||||||||||||||||||||||||
| Embedded derivatives: | |||||||||||||||||||||||||||||
| Indexed annuity products | Change in fair value of insurance-related derivatives and embedded derivatives | ||||||||||||||||||||||||||||
| Funds withheld and Modco arrangements | Change in fair value of insurance-related derivatives and embedded derivatives | ( | |||||||||||||||||||||||||||
| $ | ( | $ | ( | ||||||||||||||||||||||||||
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Derivative Exposure
The Company’s use of derivative instruments exposes it to credit risk in the event of non-performance by counterparties. The Company has a policy of only dealing with counterparties it believes are creditworthy and obtaining sufficient collateral where appropriate, as a means of mitigating the financial loss from defaults. The minimum credit rating of our counterparties is A- as of March 31, 2026 and A- as of December 31, 2025, and all derivatives have been appropriately collateralized by the Company and the counterparties in accordance with the terms of the derivative agreements. The Company holds collateral in cash and notes secured by U.S. government-backed assets. The non-performance risk is the net counterparty exposure based on fair value of open contracts less fair value of collateral held. The Company maintains master netting agreements with its current active trading partners. A right of offset has been applied to collateral that supports credit risk and has been recorded in the Condensed Consolidated Statements of Financial Position as an offset to “Other invested assets” with an associated payable to “Other liabilities” for excess collateral. A right of offset has also been applied to derivative assets and liabilities with the same counterparty under the same master netting agreement, and such derivative instruments are presented on a net basis in the Condensed Consolidated Statements of Financial Position.
Information regarding the Company’s exposure to credit loss on the derivatives it holds, including the effect of rights of offset, is presented below:
| Gross Amounts Offset in the Condensed Consolidated Statements of Financial Position | |||||||||||||||||||||||||||||||||||
| Gross Amount of Derivative Instruments (1) | Counterparty Netting (2) | Cash Collateral (3) | Net Amount Presented in the Consolidated Statements of Financial Position | Collateral (Received) Pledged in Invested Assets (3) | Net Amount After Collateral | ||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
As of March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Total derivative assets | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||
| Total derivative liabilities | ( | ( | ( | ||||||||||||||||||||||||||||||||
As of December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Total derivative assets | $ | $ | ( | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||
| Total derivative liabilities | ( | ( | ( | ||||||||||||||||||||||||||||||||
(1)Represents derivative assets and liabilities on a gross basis, which are not offset under enforceable master netting agreements that meet all offsetting criteria.
(2)Represents netting of derivative exposures covered by qualifying master netting agreements.
(3)Excludes a portion of collateral held in cash and invested assets that are excess collateral. As of March 31, 2026 and December 31, 2025, the Company held excess collateral of $6 million and $115 million, respectively.
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10. Net Investment Income and Investment Related Gains (Losses)
Net investment income is shown below:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Available-for-sale fixed maturity securities | $ | $ | |||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||
| Mortgage loans | |||||||||||||||||||||||
| Private loans | |||||||||||||||||||||||
| Real estate | |||||||||||||||||||||||
| Real estate partnerships | |||||||||||||||||||||||
| Investment funds | |||||||||||||||||||||||
| Policy loans | |||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||
| Other invested assets | |||||||||||||||||||||||
| Total net investment income | $ | $ | |||||||||||||||||||||
Net unrealized and realized investment gains (losses) are shown below:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Available-for-sale fixed maturity securities | $ | ( | $ | ||||||||||||||||||||
| Equity securities | ( | ||||||||||||||||||||||
| Mortgage loans | |||||||||||||||||||||||
| Private loans | ( | ||||||||||||||||||||||
| Investment real estate | ( | ||||||||||||||||||||||
| Investments funds | ( | ||||||||||||||||||||||
| Short-term investments and other invested assets | ( | ( | |||||||||||||||||||||
| Total investment related gains (losses), net | $ | ( | $ | ||||||||||||||||||||
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11. Fair Value of Financial Instruments
The carrying amount and fair value of financial instruments are shown below:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||
| Available-for-sale fixed maturity securities, net of allowance | $ | $ | $ | $ | |||||||||||||||||||
| Equity securities | |||||||||||||||||||||||
| Mortgage loans on real estate, net of allowance | |||||||||||||||||||||||
| Private loans, net of allowance | |||||||||||||||||||||||
| Real estate partnerships (1) | |||||||||||||||||||||||
| Investment funds (2) | |||||||||||||||||||||||
| Policy loans | |||||||||||||||||||||||
| Short-term investments (3) | |||||||||||||||||||||||
| Other invested assets: | |||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||
| Collaterals received on derivatives (excluding excess collateral) | ( | ( | ( | ( | |||||||||||||||||||
| Separately managed accounts | |||||||||||||||||||||||
| Other (4) | |||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||
| Deposit assets, included in reinsurance recoverable and deposit assets (5) | |||||||||||||||||||||||
| Other assets - market risk benefits | |||||||||||||||||||||||
| Separate account assets | |||||||||||||||||||||||
| Total financial assets | $ | $ | $ | $ | |||||||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||
| Policyholders' account balances – excluding embedded derivative (5) | $ | $ | $ | $ | |||||||||||||||||||
| Policyholders’ account balances – embedded derivative | |||||||||||||||||||||||
| Market risk benefits | |||||||||||||||||||||||
| Other liabilities: | |||||||||||||||||||||||
| Derivative liabilities | |||||||||||||||||||||||
| Funds withheld for reinsurance liabilities | |||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||
| Long term borrowings | |||||||||||||||||||||||
| Separate account liabilities | |||||||||||||||||||||||
| Total financial liabilities | $ | $ | $ | $ | |||||||||||||||||||
(1)Balances represent real estate partnerships in which the Company has elected the fair value option under ASC 825. Real estate partnerships accounted for as equity method investments are $1.1 billion and directly held real estate is $2.8 billion as of March 31, 2026. Real estate partnerships accounted for as equity method investments are $1.1 billion and directly held real estate is $2.8 billion as of December 31, 2025.
(2)Balances represent financial assets that are fair valued as a result of consolidation of investment company VIEs in accordance with ASC 946. Investment funds accounted for as equity method investments are $3.1 billion and investment funds measured using NAV as a practical expedient are $333 million as of March 31, 2026. Investment funds accounted for as equity method investments are $2.4 billion and investment funds measured using NAV as a practical expedient are $640 million as of December 31, 2025.
(3)There were no amounts loaned under reverse repurchase agreements as of March 31, 2026. Balance as of December 31, 2025 includes $400 million of amounts loaned under reverse repurchase agreements. The fair value of the collateral received under these agreements was $872 million as of December 31, 2025.
(4)Other invested assets accounted for as equity method investments, and therefore excluded from the table, are $218 million and $215 million as of March 31, 2026 and December 31, 2025.
(5)Excludes balances associated with contracts that involve significant mortality or morbidity risks, as these fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value.
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Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability. A fair value hierarchy is used to determine fair value based on a hypothetical transaction as of the measurement date from the perspective of a market participant. The Company has evaluated the types of securities in its investment portfolio to determine an appropriate hierarchy level based upon trading activity and the observability of market inputs. The classification of assets or liabilities within the fair value hierarchy is based on the lowest level of significant input to its valuation. The input levels are defined as follows:
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2 - Quoted prices in markets that are not active or inputs that are observable directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3 - Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models and third-party evaluation, as well as instruments for which the determination of fair value requires significant management judgment or estimation
Valuation Techniques for Financial Instruments Recorded at Fair Value
Available-for-sale Fixed Maturity Securities – The Company utilizes pricing services to estimate fair value measurements. The fair value for available-for-sale fixed maturity securities that are disclosed as Level 1 measurements are based on unadjusted quoted market prices for identical assets that are readily available in an active market. The estimates of fair value for most available-for-sale fixed maturity securities, including municipal bonds, provided by the pricing service are disclosed as Level 2 measurements as the estimates are based on observable market information rather than market quotes. The pricing service utilizes market quotations for available-for-sale fixed maturity securities that have quoted prices in active markets. Since available-for-sale fixed maturity securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements for these securities using its proprietary pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Additionally, an option adjusted spread model is used to develop prepayment and interest rate scenarios.
The pricing service evaluates each asset class based on relevant market information, credit information, perceived market movements and sector news. The market inputs utilized in the pricing evaluation, listed in the approximate order of priority, include: benchmark yields, reported trades, pricing source quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and economic events. The extent of the use of each market input depends on asset class and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary.
The Company has reviewed the inputs and methodology used and the techniques applied by the pricing service to produce quotes that represent the fair value of a specific security. The review confirms that the pricing service is utilizing information from observable transactions or a technique that represents a market participant’s assumptions. The Company does not adjust quotes received from the pricing service. The pricing service utilized by the Company has indicated that they will only produce an estimate of fair value if there is objectively verifiable information available.
The Company holds private placement debt and available-for-sale fixed maturity securities that have characteristics that make them unsuitable for matrix pricing. For these securities, a quote from an independent pricing source (typically a market maker) is obtained. Due to the disclaimers on the quotes that indicate the price is indicative only, the Company includes these fair value estimates in Level 3.
For securities priced using a quote from an independent pricing source, such as certain available-for-sale fixed maturity securities, the Company uses a market-based fair value analysis to validate the reasonableness of prices received. Price variances above a certain threshold are analyzed further to determine if any pricing issue exists. This analysis is performed quarterly.
Equity Securities – For publicly-traded equity securities, prices are received from a nationally recognized pricing service that are based on observable market transactions, and these securities are classified as Level 1 measurements. For certain preferred stock, current market quotes in active markets are unavailable. In these instances, an estimated fair value is received from the pricing service. The service utilizes similar methodologies to price preferred stocks as it does for available-for-sale fixed maturity securities. If applicable, these estimates would be disclosed as Level 2 measurements, depending on the use of at least one significant unobservable input. The Company tests the accuracy of the information provided by reference to other services annually. For certain private equity securities without readily determinable fair values, fair value estimates are unavailable and are not disclosed.
Real Estate and Real Estate Partnerships – The fair values of residential real estate investments held through consolidation of investment company VIEs are initially recorded based on the cost to purchase the properties and subsequently recorded at fair value on a recurring basis and falls within Level 3 of the fair value hierarchy. The fair value of the residential real estate properties was determined using broker price opinions (“BPO”). A BPO is an appraisal methodology commonly used in the industry to estimate net proceeds from the sale of a home. The significant inputs into the valuation include market comparable home sales, age and size of the home, location and property conditions.
25
For certain of the Company’s interest in consolidated VIEs, the Company elected the fair value option in accordance with ASC 825. The fair value of such interest is derived using discounted cash flow methodology and falls within Level 3 of the fair value hierarchy.
Certain of the Company’s consolidated VIEs that are fair valued on a recurring basis invest in LLCs that invest in operating entities which hold multi-family real estate properties. The fair value of the LLCs is obtained from a third party and is based on the fair value of the underlying real estate held by the various operating entities. The real estate is initially calculated based on the cost to purchase the properties and subsequently calculated based on a discounted cash flow methodology. Such investments are classified as Level 3 measurements.
Investment Funds – The Company owns certain investments in infrastructure LLCs through a consolidated VIE that is measured at fair value on a recurring basis. We initially recorded the investment at the cost to purchase the investment and subsequently recorded based on a discounted cash flow methodology. Investment funds that are fair valued are classified as Level 3 measurements. Certain LP funds are measured at estimated fair value using NAV as a practical expedient.
Short-term Investments – Short-term investments include fixed maturity securities with original maturities of over 90 days and less than one year at the date of acquisition, some of which are disclosed as Level 1 measurements as their fair values are based on unadjusted quoted market prices for identical assets that are readily available in an active market. Short-term investments also include commercial paper rated A2 or P2 or better by Standard & Poor’s and Moody’s, respectively, as well as certain private loans with original maturities of less than one year at the date of acquisition and amounts loaned under reverse repurchase agreements. Commercial paper, short-term private loans and amounts loaned under reverse repurchase agreements are carried at amortized cost which approximates fair value. These investments are classified as Level 2 or Level 3 measurements, depending on the use of at least one significant unobservable input.
Other Invested Assets – The Company holds interest in an investment company limited partnership, which invests in residual tranche investments, and is a consolidated VIE. We also hold residual tranche investments to which we applied the fair value option in accordance with ASC 825. These investments were initially recorded at cost and are subsequently recorded at fair value using discounted cash flow methodology and fall within Level 3 of the fair value hierarchy.
Separately Managed Accounts – The separately managed account manager uses the mid-point of a range from a third-party to price these securities. Discounted cash flows (yield analysis) and market transactions approach are used in the valuation. They use discount rates which is considered an unobservable input.
Derivative Assets/Derivative Liabilities – Equity-index options are valued using industry accepted valuation models and are adjusted for the nonperformance risk of each counterparty net of any collateral held. Inputs include market volatility and risk-free interest rates and are used in income valuation techniques in arriving at a fair value for each option contract. The nonperformance risk for each counterparty is based upon its credit default swap rate. The Company has no performance obligations related to the call options purchased to fund its fixed index annuity and equity-indexed universal life policy liabilities. Certain equity-index options are valued based on vendor sourced prices and are classified as Level 3 measurements due to the use of significant unobservable inputs used by the vendor.
Foreign exchange forwards are valued using observable market inputs, including forward currency exchange rates. These are classified as Level 2 measurements.
Interest rate and cross currency swaps are valued using market observable inputs and are determined by discounting expected future cash flows. As the significant inputs are observable, these are classified as Level 2 measurements.
Cash and Cash Equivalents – Amounts reported in the Condensed Consolidated Statements of Financial Position for these instruments are reported at their historical cost which approximates fair value due to the nature of the assets assigned to this category.
Market Risk Benefits – MRBs are valued using stochastic models that incorporate a spread reflecting our non-performance risk. The key assumptions for calculating the fair value of the MRBs are market assumptions such as equity market returns, interest rate levels, market volatility and correlations and policyholder behavior assumptions such as lapse, mortality, utilization and withdrawal patterns. Risk margins are included in the policyholder behavior assumptions. The assumptions are based on a combination of historical data and actuarial judgment. MRBs are classified as Level 3 fair value measurements as the fair value is based on unobservable inputs. The following significant unobservable inputs are used for measuring the fair value:
(1)Utilization – The utilization assumption represents the percentage of policyholders who will elect to receive lifetime income benefit payments in a given year. The range and weighted average of this assumption can vary from year to year depending on the characteristics of policies in a given cohort within the rate.
(2)Option budget – The option budget assumption represents the expected cost of annual call options we will purchase in the future.
(3)Nonperformance risk – The nonperformance risk assumption impacts the discount rate used in the discounted future cash flow valuation and includes our own credit risk based on the current market credit spreads for debt-like instruments the Company has issued and are available in the market, adjusted for instrument specific features. Additionally, the nonperformance risk assumption includes the counterparty credit risk used in the fair value measurement of ceded market risk benefits which is determined using the current market credit spreads based on the counterparty credit rating.
26
(4)Mortality rates – The mortality rate assumptions are set based on a combination of company and industry experience, adjusted for improvement factors. Mortality rates vary by age and by demographic characteristics such as gender.
(5)Lapse rates – The lapse rate assumptions represent the expected rate of full surrenders which are set based on product type or feature and whether a policy is subject to surrender charges.
Separate Account Assets and Liabilities – The separate account assets included on the quantitative disclosures fair value hierarchy table are comprised of short-term investments, equity securities, and available-for-sale fixed maturity securities. Equity securities are classified as Level 1 measurements. Short-term investments and available-for-sale fixed maturity securities are classified as Level 2 measurements. These classifications for separate account assets reflect the same fair value level methodologies as listed above as they are derived from the same vendors and follow the same process.
Policyholders’ Account Balances – Embedded Derivatives – The fair value of the embedded derivative component of the Company’s fixed index annuity and equity-indexed universal life policyholders’ account balances is estimated at each valuation date by (i) projecting policy contract values and minimum guaranteed contract values over the expected lives of the contracts and (ii) discounting the excess of the projected contract value amounts at the applicable risk free interest rates adjusted for the Company’s non-performance risk related to those liabilities. The following significant unobservable inputs are used for measuring the fair value: (i) option budget; (ii) lapse rates; and (iii) non-performance risk. For the details of these significant unobservable inputs, refer to significant unobservable inputs for “Market risk benefits”.
Funds Withheld for Reinsurance Liabilities – Embedded Derivatives – The fair value of the embedded derivative is estimated based on the fair value of the assets supporting the funds withheld payable under modified coinsurance and funds withheld coinsurance reinsurance agreements. The fair value of the embedded derivative is classified as Level 3 based on valuation methods used for the assets held supporting the reinsurance agreements.
27
The fair value hierarchy measurements for assets and liabilities measured at fair value on a recurring basis are shown below:
| Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| March 31, 2026 | |||||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Available-for-sale fixed maturity securities: | |||||||||||||||||||||||
| U.S. treasury and government | $ | $ | $ | $ | |||||||||||||||||||
| U.S. state and municipal | |||||||||||||||||||||||
| Foreign governments | |||||||||||||||||||||||
| Corporate debt securities | |||||||||||||||||||||||
| Residential mortgage-backed securities | |||||||||||||||||||||||
| Commercial mortgage-backed securities | |||||||||||||||||||||||
| Collateralized debt securities | |||||||||||||||||||||||
| Total available-for-sale fixed maturity securities | |||||||||||||||||||||||
| Equity securities: | |||||||||||||||||||||||
| Common stock | |||||||||||||||||||||||
| Preferred stock | |||||||||||||||||||||||
| Total equity securities | |||||||||||||||||||||||
| Real estate at fair value (1) | |||||||||||||||||||||||
| Real estate partnerships at fair value (1) | |||||||||||||||||||||||
| Investment funds (1)(2) | |||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||
| Other invested assets: | |||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||
| Collaterals received on derivatives (excluding excess collateral) | ( | ( | |||||||||||||||||||||
| Separately managed accounts | |||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||
| Other assets – market risk benefit assets | |||||||||||||||||||||||
| Separate account assets | |||||||||||||||||||||||
| Total financial assets | $ | $ | $ | $ | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Policyholders’ account balances - embedded derivative | $ | $ | $ | $ | |||||||||||||||||||
| Market risk benefits | |||||||||||||||||||||||
| Funds withheld for reinsurance liabilities - embedded derivative | |||||||||||||||||||||||
| Other liabilities - derivative liabilities | |||||||||||||||||||||||
| Separate account liabilities | |||||||||||||||||||||||
| Total financial liabilities | $ | $ | $ | $ | |||||||||||||||||||
(1)Balances include financial assets that are fair valued in accordance with ASC 825 as well as financial assets that are fair valued as a result of consolidation of investment company VIE in accordance with ASC 946.
(2)Balance excludes $333 million of investments measured at estimated fair value using NAV as a practical expedient.
28
| Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Available-for-sale fixed maturity securities: | |||||||||||||||||||||||
| U.S. treasury and government | $ | $ | $ | $ | |||||||||||||||||||
| U.S. state and municipal | |||||||||||||||||||||||
| Foreign governments | |||||||||||||||||||||||
| Corporate debt securities | |||||||||||||||||||||||
| Residential mortgage-backed securities | |||||||||||||||||||||||
| Commercial mortgage-backed securities | |||||||||||||||||||||||
| Collateralized debt securities | |||||||||||||||||||||||
| Total available-for-sale fixed maturity securities | |||||||||||||||||||||||
| Equity securities: | |||||||||||||||||||||||
| Common stock | |||||||||||||||||||||||
| Preferred stock | |||||||||||||||||||||||
| Total equity securities | |||||||||||||||||||||||
| Real estate at fair value (1) | |||||||||||||||||||||||
| Real estate partnerships at fair value (1) | |||||||||||||||||||||||
| Investment funds (1)(2) | |||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||
| Other invested assets: | |||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||
| Collaterals received on derivatives (excluding excess collateral) | ( | ( | |||||||||||||||||||||
| Separately managed accounts | |||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||
| Other assets – market risk benefit assets | |||||||||||||||||||||||
| Separate account assets (3) | |||||||||||||||||||||||
| Total financial assets | $ | $ | $ | $ | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Policyholders’ account balances – embedded derivative | $ | $ | $ | $ | |||||||||||||||||||
| Market risk benefits | |||||||||||||||||||||||
| Funds withheld for reinsurance liabilities – embedded derivatives | |||||||||||||||||||||||
| Other liabilities – derivative liabilities | |||||||||||||||||||||||
| Separate account liabilities | |||||||||||||||||||||||
| Total financial liabilities | $ | $ | $ | $ | |||||||||||||||||||
(1)Balances include financial assets that are fair valued in accordance with ASC 825 as well as financial assets that are fair valued as a result of consolidation of investment company VIE in accordance with ASC 946.
(2)Balance excludes $640 million of investments measured at estimated fair value using NAV as a practical expedient.
Fair Value Information About Financial Instruments Not Recorded at Fair Value
Information about fair value estimates for financial instruments not measured at fair value is discussed below:
Mortgage Loans – The fair value of mortgage loans is estimated using discounted cash flow analyses on a loan-by-loan basis by applying a discount rate to expected cash flows from future installment and balloon payments. The discount rate takes into account general market trends and specific credit risk trends for the individual loan. Factors used to arrive at the discount rate include inputs from spreads based on U.S. Treasury notes and the loan’s credit quality, region, property-type, lien priority, payment type and current status.
Private Loans – The fair value of private loans is estimated using discounted cash flow analyses on a loan-by-loan basis by applying a discount rate to expected cash flows from future installment and balloon payments. The discount rate takes into account general market trends and specific credit risk trends for the individual loan. For certain of our collateral loans, we have concluded the carrying value approximates fair value.
29
Policy Loans – The carrying value of policy loans is the outstanding balance plus any accrued interest. Due to the collateralized nature of policy loans such that they cannot be separated from the policy contracts, the unpredictable timing of repayments and the fact that settlement is at outstanding value, the carrying value of policy loans approximates fair value.
Other Invested Assets – The common stock of Federal Home Loan Bank (“FHLB”) is carried at cost which approximates fair value. The fair value of the company owned life insurance (“COLI”) is equal to the cash surrender value of the policies.
Policyholders’ Account Balances - investments contracts, excluding embedded derivative and deposit assets – The fair values of the policyholder account balances’ not involving significant mortality or morbidity risks, are stated at the cost we would incur to extinguish the liability (i.e., the cash surrender value) as these contracts are generally issued without an annuitization date. The deposit assets related to the annuity benefit reserves have fair values determined in a similar fashion. For period-certain annuity benefit contracts, the fair value is determined by discounting the benefits at the interest rates currently in effect for newly issued immediate annuity contracts. All of the fair values presented within these categories fall within Level 3 of the fair value hierarchy as most of the inputs are unobservable market data.
Long Term Borrowings – Long term borrowings are carried at outstanding principal balance. The carrying value approximates fair value because the carrying value represents the amount owing and payable to the creditor at the reporting date. Fair values for subordinated debentures are estimated using discounted cash flow calculations principally on observable inputs including the Company’s incremental borrowing rates, which reflect its credit rating, for similar types of borrowings with maturities consistent with those remaining for the debt being valued.
30
The carrying amount and estimated fair value of financial instruments not recorded at fair value on a recurring basis are shown below. The table below excludes accrued investment income, which is recorded at amortized cost in the statements of financial position, as their carrying amounts approximate the fair values due to their short-term nature.
| Carrying Amount | Fair Value | Fair Value Hierarchy Level | |||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| March 31, 2026 | |||||||||||||||||||||||||||||
| Financial assets | |||||||||||||||||||||||||||||
| Mortgage loans on real estate, net of allowance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Private loans, net of allowance | |||||||||||||||||||||||||||||
| Policy loans | |||||||||||||||||||||||||||||
| Deposit assets, included in reinsurance recoverables and deposit assets (1) | |||||||||||||||||||||||||||||
| Other invested assets | |||||||||||||||||||||||||||||
| Total financial assets | $ | $ | |||||||||||||||||||||||||||
| Financial liabilities | |||||||||||||||||||||||||||||
| Policyholders' account balances – excluding embedded derivative (1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Long term borrowings | |||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||
| Total financial liabilities | $ | $ | |||||||||||||||||||||||||||
| Carrying Amount | Fair Value | Fair Value Hierarchy Level | |||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||
| Financial assets | |||||||||||||||||||||||||||||
| Mortgage loans on real estate, net of allowance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Private loans, net of allowance | |||||||||||||||||||||||||||||
| Policy loans | |||||||||||||||||||||||||||||
| Deposit assets, included in reinsurance recoverables and deposit assets (1) | |||||||||||||||||||||||||||||
| Other invested assets | |||||||||||||||||||||||||||||
| Total financial assets | $ | $ | |||||||||||||||||||||||||||
| Financial liabilities | |||||||||||||||||||||||||||||
| Policyholders' account balances – excluding embedded derivative (1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Long term borrowings | |||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||
| Total financial liabilities | $ | $ | |||||||||||||||||||||||||||
(1)Excludes balances associated with contracts that involve significant mortality or morbidity risks, as these fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value.
31
For financial assets and financial liabilities measured at fair value on a recurring basis using Level 3 inputs during the periods, reconciliations of the beginning and ending balances are shown below:
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||
| Assets | Liabilities (2) | ||||||||||||||||||||||||||||
| Invested Assets (1) | Derivative Assets | Policyholders’ Account Balances – Embedded Derivative | Funds Withheld for Reinsurance Liabilities - Embedded Derivative | ||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| Balance, beginning of year | $ | $ | $ | $ | |||||||||||||||||||||||||
| Fair value changes in net income | ( | ( | ( | ||||||||||||||||||||||||||
| Fair value changes in other comprehensive income | ( | ||||||||||||||||||||||||||||
| Purchases | |||||||||||||||||||||||||||||
| Sales | ( | ||||||||||||||||||||||||||||
| Settlements or maturities | ( | ( | |||||||||||||||||||||||||||
| Premiums less benefits | ( | ||||||||||||||||||||||||||||
| Transfers into Level 3 | |||||||||||||||||||||||||||||
| Transfers out of Level 3 | ( | ||||||||||||||||||||||||||||
| Balance, end of period | $ | $ | $ | $ | |||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||
| Assets | Liabilities (2) | ||||||||||||||||||||||||||||
| Invested Assets (1) | Derivative Assets | Policyholders’ Account Balances – Embedded Derivative | Funds Withheld for Reinsurance Liabilities - Embedded Derivative | ||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| Balance, beginning of year | $ | $ | $ | $ | |||||||||||||||||||||||||
| Fair value changes in net income | ( | ( | |||||||||||||||||||||||||||
| Fair value changes in other comprehensive income | |||||||||||||||||||||||||||||
| Purchases | |||||||||||||||||||||||||||||
| Sales | ( | ||||||||||||||||||||||||||||
| Settlements or maturities | ( | ( | |||||||||||||||||||||||||||
| Premiums less benefits | |||||||||||||||||||||||||||||
| Transfers into Level 3 | |||||||||||||||||||||||||||||
| Transfers out of Level 3 | ( | ||||||||||||||||||||||||||||
| Balance, end of period | $ | $ | $ | $ | |||||||||||||||||||||||||
(1)Balance includes separately managed accounts.
(2)See Note 18 - Market Risk Benefits for the reconciliation of the beginning and ending balances for market risk benefits.
32
12. Reinsurance
The Company reinsures its business through a diversified group of reinsurers (“reinsurance ceded”) and assumes certain business by entering into agreements with third-party insurers (“reinsurance assumed”). Under reinsurance ceded transactions, the Company remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. The Company monitors trends in arbitration and any litigation outcomes with its reinsurers. Collectability of reinsurance balances is evaluated by monitoring ratings and the financial strength of its reinsurers.
The effect of reinsurance on the applicable line items on our Condensed Consolidated Statements of Operations are as follows:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Premiums earned: | |||||||||||||||||||||||
| Gross amounts, including reinsurance assumed | $ | $ | |||||||||||||||||||||
| Reinsurance ceded | ( | ( | |||||||||||||||||||||
| Net amount | $ | $ | |||||||||||||||||||||
| Other policy revenue: | |||||||||||||||||||||||
| Gross amounts, including reinsurance assumed | $ | $ | |||||||||||||||||||||
| Reinsurance ceded | ( | ( | |||||||||||||||||||||
| Net amount | $ | $ | |||||||||||||||||||||
| Policyholder benefits and claims incurred: | |||||||||||||||||||||||
| Gross amounts, including reinsurance assumed | $ | $ | |||||||||||||||||||||
| Reinsurance ceded | ( | ( | |||||||||||||||||||||
| Net amount | $ | $ | |||||||||||||||||||||
| Change in fair value of market risk benefits: | |||||||||||||||||||||||
| Gross amounts, including reinsurance assumed | $ | $ | |||||||||||||||||||||
| Reinsurance ceded | ( | ||||||||||||||||||||||
| Net amount | $ | $ | |||||||||||||||||||||
| Interest sensitive contract benefits: | |||||||||||||||||||||||
| Gross amounts, including reinsurance assumed | $ | $ | |||||||||||||||||||||
| Reinsurance ceded | ( | ( | |||||||||||||||||||||
| Net amount | $ | $ | |||||||||||||||||||||
The following summarizes our significant life and annuity reinsurance treaties and related recoverable:
| Reinsurance Recoverable | Agreement Type | Products Covered | |||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Principal Reinsurers: | |||||||||||||||||||||||
| Athene Life Re Ltd. | $ | $ | Coinsurance Funds Withheld, Modified Coinsurance | Certain Fixed Annuities and Multi-Year Guaranteed Annuities | |||||||||||||||||||
| AeBe ISA LTD | Coinsurance Funds Withheld, Coinsurance | Certain Fixed Index and Fixed Rate Annuities | |||||||||||||||||||||
| Reinsurance Group of America Inc. (RGA) | Coinsurance | Certain Term, Whole, Indexed Universal, Universal, and Universal with Secondary Guarantee Life Insurance Policies | |||||||||||||||||||||
| $ | $ | ||||||||||||||||||||||
There were no significant changes to third party or intercompany reinsurance agreements for the three months ended March 31, 2026.
33
13. Separate Account Assets and Liabilities
The following table presents the change of the Company’s separate account assets and liabilities:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Balance, beginning of period | $ | $ | |||||||||||||||||||||
| Additions (deductions): | |||||||||||||||||||||||
| Policyholder deposits | |||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||
| Net realized capital gains (losses) on investments | ( | ( | |||||||||||||||||||||
| Policyholder benefits and withdrawals | ( | ( | |||||||||||||||||||||
| Net transfer from (to) general account | ( | ( | |||||||||||||||||||||
| Policy charges | ( | ( | |||||||||||||||||||||
| Total changes | ( | ( | |||||||||||||||||||||
| Balance, end of period | $ | $ | |||||||||||||||||||||
| Cash surrender value | $ | $ | |||||||||||||||||||||
34
14. Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired
The following tables present a rollforward of deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”) and value of business acquired (“VOBA”) for the periods indicated:
| Three Months Ended March 31, 2026 | |||||||||||||||||
| Annuities | Life Insurance | Total | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| DAC | |||||||||||||||||
| Balance, beginning of period | $ | $ | $ | ||||||||||||||
| Additions | |||||||||||||||||
| Amortization | ( | ( | ( | ||||||||||||||
| Net change | |||||||||||||||||
| Balance, end of period | |||||||||||||||||
| DSI | |||||||||||||||||
| Balance, beginning of period | |||||||||||||||||
| Additions | |||||||||||||||||
| Amortization | ( | ( | |||||||||||||||
| Net change | |||||||||||||||||
| Balance, end of period | |||||||||||||||||
| VOBA | |||||||||||||||||
| Balance, beginning of period | |||||||||||||||||
| Amortization | ( | ( | ( | ||||||||||||||
| Balance, end of period | |||||||||||||||||
| Total DAC, DSI, and VOBA Asset | $ | $ | $ | ||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||
| Annuities | Life Insurance | Total | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| DAC | |||||||||||||||||
| Balance, beginning of period | $ | $ | $ | ||||||||||||||
| Additions | |||||||||||||||||
| Amortization | ( | ( | ( | ||||||||||||||
| Net change | |||||||||||||||||
| Balance, end of period | |||||||||||||||||
| DSI | |||||||||||||||||
| Balance, beginning of period | |||||||||||||||||
| Additions | |||||||||||||||||
| Amortization | ( | ( | |||||||||||||||
| Net change | |||||||||||||||||
| Balance, end of period | |||||||||||||||||
| VOBA | |||||||||||||||||
| Balance, beginning of period | |||||||||||||||||
| Amortization | ( | ( | ( | ||||||||||||||
| Balance, end of period | |||||||||||||||||
| Total DAC, DSI, and VOBA Asset | $ | $ | $ | ||||||||||||||
35
The following table provides the projected VOBA asset amortization expenses for a five-year period and thereafter as of March 31, 2026:
| Years | (Dollars in millions) | ||||
| 2026 (1) | $ | ||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| 2030 | |||||
| Thereafter | |||||
| Total amortization expense | $ | ||||
(1)Expected amortization for the remainder of 2026.
15. Intangible Assets
The components of definite-lived and indefinite-lived intangible assets are as follows. Refer to Note 14 - Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired for VOBA asset, which is an actuarial intangible asset arising from a business combination.
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Definite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
| Distributor relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Trade name | ( | ( | |||||||||||||||||||||||||||||||||
| Software and other | ( | ( | |||||||||||||||||||||||||||||||||
| Total definite-lived intangible assets | ( | ( | |||||||||||||||||||||||||||||||||
| Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
| Insurance licenses | — | — | |||||||||||||||||||||||||||||||||
| Total indefinite-lived intangible assets | — | — | |||||||||||||||||||||||||||||||||
| Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
The following table outlines the estimated future amortization expense related to definite-lived intangible assets held as of March 31, 2026.
| Years | (Dollars in millions) | ||||
| 2026 (1) | $ | ||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| 2030 | |||||
| Thereafter | |||||
| Total amortization expense | $ | ||||
(1)Expected amortization for the remainder of 2026.
36
16. Future Policy Benefits
The reconciliation of the balances described in the table below to “Future policy benefits” in the Condensed Consolidated Statements of Financial Position is as follows.
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| Future policy benefits: | |||||||||||
| Annuities | $ | $ | |||||||||
| Life Insurance | |||||||||||
| Deferred profit liability: | |||||||||||
| Annuities | |||||||||||
| Life Insurance | |||||||||||
| Other contracts and VOBA liability | |||||||||||
| Total future policy benefits | $ | $ | |||||||||
37
Future Policy Benefits
The balances and changes in the liability for future policy benefits are as follows:
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| Annuities | Life Insurance | Total | Annuities | Life Insurance | Total | ||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Present Value of Expected Net Premiums: | |||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Beginning balance at original discount rate | |||||||||||||||||||||||||||||||||||
| Effect of changes in cash flow assumptions (1) | ( | ( | |||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Adjusted beginning of period balance | ( | ||||||||||||||||||||||||||||||||||
| Issuances | |||||||||||||||||||||||||||||||||||
| Interest accrual | |||||||||||||||||||||||||||||||||||
| Net premiums collected | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Ending balance at original discount rate | |||||||||||||||||||||||||||||||||||
| Effect of changes in discount rate assumptions | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Present Value of Expected Future Policy Benefits: | |||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Beginning balance at original discount rate | |||||||||||||||||||||||||||||||||||
| Effect of changes in cash flow assumptions (1) | ( | ( | |||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Adjusted beginning of period balance | |||||||||||||||||||||||||||||||||||
| Issuances | |||||||||||||||||||||||||||||||||||
| Interest accrual | |||||||||||||||||||||||||||||||||||
| Benefit payments | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Derecognitions (lapses and withdrawals) | |||||||||||||||||||||||||||||||||||
| Foreign currency translation | ( | ( | |||||||||||||||||||||||||||||||||
| Ending balance at original discount rate | |||||||||||||||||||||||||||||||||||
| Effect of changes in discount rate assumptions | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Liability for future policy benefits | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Less: Reinsurance recoverables | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Net liability for future policy benefits, after reinsurance recoverable | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Weighted-average liability duration of future policy benefits (years) | |||||||||||||||||||||||||||||||||||
| Weighted average interest accretion rate | % | % | % | % | |||||||||||||||||||||||||||||||
| Weighted average current discount rate | % | % | % | % | |||||||||||||||||||||||||||||||
(1)For the three months ended March 31, 2026 and 2025, the Company recognized liability remeasurement impacts of $25 million and $20 million, respectively, from the net effect of the changes in cash flow assumptions, which were included in “Policyholder benefits and claims incurred” in the Condensed Consolidated Statements of Operations.
38
The amounts of undiscounted and discounted expected gross premiums and future benefit payments follow:
| March 31, 2026 | March 31, 2025 | ||||||||||||||||||||||
| Undiscounted | Discounted | Undiscounted | Discounted | ||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Annuities | |||||||||||||||||||||||
| Expected future benefit payments | $ | $ | $ | $ | |||||||||||||||||||
| Expected future gross premiums | |||||||||||||||||||||||
| Life Insurance | |||||||||||||||||||||||
| Expected future benefit payments | |||||||||||||||||||||||
| Expected future gross premiums | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
| Expected future benefit payments | |||||||||||||||||||||||
| Expected future gross premiums | |||||||||||||||||||||||
The amount of revenue and interest recognized in the Condensed Consolidated Statements of Operations follows:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Gross Premiums or Assessments | Interest Expense | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Annuities | $ | $ | $ | $ | |||||||||||||||||||
| Life Insurance | |||||||||||||||||||||||
39
17. Policyholders' Account Balances
Policyholders’ account balances relate to investment-type contracts and universal life-type policies as well as balances relating to funding agreements. Investment-type contracts principally include traditional individual fixed rate annuities and fixed index annuities in the accumulation phase and group annuity contracts.
The balances and changes in policyholders’ account balances are as follows:
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| Annuities | Life Insurance | Total | Annuities | Life Insurance | Total | ||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Issuances | |||||||||||||||||||||||||||||||||||
| Premiums received | |||||||||||||||||||||||||||||||||||
| Policy charges | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Surrenders and withdrawals | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Interest credited | |||||||||||||||||||||||||||||||||||
| Benefit payments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Other | ( | ( | |||||||||||||||||||||||||||||||||
| Balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||||||||
| Funding agreements | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Supplemental contracts | |||||||||||||||||||||||||||||||||||
| Embedded derivative and other | |||||||||||||||||||||||||||||||||||
| Total PAB balance, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Weighted-average crediting rate | % | % | % | % | |||||||||||||||||||||||||||||||
| Net amount at risk (1) | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Cash surrender value | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
(1)Net amount at risk is defined as the current guarantee amount in excess of the current account balance.
40
The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums follow.
| March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Range of Guaranteed Minimum Crediting Rate | At Guaranteed Minimum | > | Other (1) | Total | |||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
| Annuities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||||||||||
| Products with either a fixed rate or no guaranteed minimum crediting rate | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Life Insurance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||||||||||
| Products with either a fixed rate or no guaranteed minimum crediting rate | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Range of Guaranteed Minimum Crediting Rate | At Guaranteed Minimum | > | Other (1) | Total | |||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
| Annuities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||||||||||
| Products with either a fixed rate or no guaranteed minimum crediting rate | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Life Insurance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||||||||||
| Products with either a fixed rate or no guaranteed minimum crediting rate | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
(1)Other includes products with either a fixed rate or no guaranteed minimum crediting rate or allocated to index strategies.
41
18. Market Risk Benefits
The net balance of market risk benefit (MRB) assets and liabilities of, and changes in guaranteed minimum withdrawal benefits associated with, annuity contracts is as follows:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| Balance, beginning of period | $ | $ | |||||||||
| Balance, beginning of period, before effect of changes in the instrument-specific credit risk | |||||||||||
| Issuances | |||||||||||
| Interest accrual | |||||||||||
| Attributed fees collected | |||||||||||
| Effect of changes in interest rates | ( | ||||||||||
| Effect of changes in equity markets | |||||||||||
| Effect of changes in equity index volatility | ( | ( | |||||||||
| Effect of changes in future expected policyholder behavior | |||||||||||
| Effect of changes in other future expected assumptions | |||||||||||
| Balance, end of period, before effect of changes in the instrument-specific credit | |||||||||||
| Effect of changes in the ending instrument-specific credit risk | ( | ||||||||||
| Balance, end of period | |||||||||||
| Less: Reinsured MRB, end of period | ( | ( | |||||||||
| Balance, end of period, net of reinsurance | $ | $ | |||||||||
| Net amount at risk (1) | $ | $ | |||||||||
| Weighted average attained age of contract holders (years) | |||||||||||
(1)Net amount at risk is defined as the current guarantee amount in excess of the current account balance.
The reconciliation of market risk benefits by amounts in an asset position and in a liability position to the “Market risk benefits” amount in the Condensed Consolidated Statements of Financial Position follows.
| March 31, 2026 | |||||||||||||||||
| Asset | Liability | Net Liability | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| Market risk benefits | $ | $ | $ | ||||||||||||||
| December 31, 2025 | |||||||||||||||||
| Asset | Liability | Net Liability | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| Market risk benefits | $ | $ | $ | ||||||||||||||
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19. Long Term Borrowings
The following is a summary of our long term borrowings:
| March 31, 2026 | December 31, 2025 | ||||||||||
(Dollars in millions) | |||||||||||
Term Loan Credit Facility - due May 25, 2027 | $ | $ | |||||||||
Total | $ | $ | |||||||||
The agreements above require the Company and its subsidiaries to maintain minimum net worth covenants. As of March 31, 2026 and December 31, 2025, the Company was in compliance with its financial covenants.
20. Income Taxes
For the three months ended March 31, 2026 and 2025, the effective tax rates on pre-tax income were 85.0 % and 21.3 %, respectively. For the three months ended March 31, 2026, the Company’s effective rate was higher than the statutory rate of 21% primarily due to the impact of permanent differences relative to comparatively low net income before income taxes. Items impacting the rate included changes to our Bermuda deferred tax asset and tax credit project expenses which resulted in a 70 % increase in the effective tax rate. For the three months ended March 31, 2025, the Company’s effective tax rate was not materially different from the statutory rate of 21%.
Pillar Two and Bermuda Corporate Income Tax Regime
In December 2023, the Government of Bermuda enacted a corporate income tax (“CIT”) regime, designed to align with the Organization for Economic Cooperation and Development's ("OECD's") global minimum tax rules. The Corporate Income Tax Act 2023 came into operation in its entirety on January 1, 2025. The regime applies a 15% CIT to Bermuda businesses that are part of Multinational Enterprise Groups with annual revenue of €750 million or more, which includes ANGI. As of March 31, 2026, we had a current tax asset of $44 million and a deferred tax asset of $446 million and as of December 31, 2025, we had a current tax asset of $44 million and a deferred tax asset of $457 million related to this regime.
21. Stockholders' Equity
Common Stock
The Company has 10,000 0.01 per share authorized and outstanding, all of which are held by Brookfield Wealth Solutions Ltd. and its affiliates. See Note 1 - Organization and Description of the Company for additional information.
Preferred Stock - Dividends
Dividends on the Series D preferred stock are payable on a non-cumulative basis only when, as and if declared, quarterly in arrears on the 15th day of January, April, July and October of each year, commencing on April 15, 2025. The Series D preferred stock are not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions.
During the three months ended March 31, 2026, we accrued for dividends totaling $6 million for the Series D preferred stock. For the three months ended March 31, 2025, we accrued for dividends totaling $6 million for Series D preferred stock.
For the three months ended March 31, 2025, we paid dividends totaling $8 million for Series A preferred stock.
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22. Accumulated Other Comprehensive Income
The components of and changes in the accumulated other comprehensive income (“AOCI”), and the related tax effects, are shown below:
| Change in Net Unrealized Investment Gains (Losses) | Change in Discount Rate for Future Policy Benefits | Change in Instrument- Specific Credit Risk for Market Risk Benefits | Defined Benefit Pension Plan Adjustment | Total | |||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
| Amounts reclassified to (from) AOCI | |||||||||||||||||||||||||||||
| Deferred income tax benefit (expense) | ( | ( | |||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Balance as of December 31, 2024 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
| Amounts reclassified to (from) AOCI | ( | ( | |||||||||||||||||||||||||||
| Deferred income tax benefit (expense) and other | ( | ( | ( | ||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
23. Related Party Transactions
The Company has entered into recurring transactions and agreements with certain related parties. The impact on the Condensed Consolidated Financial Statements of significant related party transactions is discussed below.
Investment Management
For the three months ended March 31, 2026 and 2025, the Company paid investment management fees pursuant to investment management agreements with an affiliate of Brookfield Asset Management Ltd. (“BAM”) of $62 million and $47 million, respectively. The Company had $57 million and $57 million of investment management fees payable to an affiliate of BAM as of March 31, 2026 and December 31, 2025, respectively, which are included in “Due to related parties” on the Condensed Consolidated Statements of Financial Position.
Other Related Party Transactions
As of March 31, 2026 and December 31, 2025, we held investments in related parties of $9.9 billion and $9.6 billion, respectively, not including equity method investments. See Note 8 - Variable Interest Entities and Equity Method Investments for details on our equity method investments. Our investments in related parties as of March 31, 2026 and December 31, 2025 include approximately $4.0 billion and $4.2 billion respectively, of private loans with subsidiaries of Brookfield Corporation. The Company’s investments in related parties are net of maturities, prepayments and sales that occurred during the year and reflect any other changes in carrying values during the year, such as fair value changes for investments carried at fair value.
For the three months ended March 31, 2026 and 2025, we did not have significant investment transactions with related parties.
Subsidiaries of the Company had demand deposit agreements with Brookfield Treasury Management Inc. (“BTMI”), a subsidiary of Brookfield Corporation and BAMR US Holdings LLC (“BAMR”), an indirect wholly-owned subsidiary of Brookfield Wealth Solutions. As of March 31, 2026 and December 31, 2025, the balance under the BTMI agreement was $269 million and $265 million, respectively. The balance outstanding under the agreement with BAMR at March 31, 2026 and December 31, 2025 was $429 million and $532 million, respectively. These amounts are included in “Cash and cash equivalents” in the Company's Condensed Consolidated Statements of Financial Position. For the three months ended March 31, 2026 and 2025, the Company earned interest income from these agreements of $9 million and $9 million, respectively.
44
24. Segment Reporting
Management organizes the business into two reporting segments:
–Annuities - consists of fixed and fixed index annuity products, as well as PRT contracts and funding agreements. Products are primarily sold through independent agents, brokers, and financial institutions, along with multiple-line and career agents.
–Life Insurance - consists primarily of whole, term, universal, indexed and variable life insurance formerly sold through career, multiple-line, and independent agents as well as direct marketing channels.
Corporate and other consists of net investment income from investments and certain expenses not allocated to the insurance segments and revenues and related expenses from non-insurance operations.
Prior to October 1, 2025, the Company was organized into three segments, annuities, life insurance, and property and casualty. As discussed in Note 26 - Discontinued Operations, the Company completed the transfer of the P&C Subsidiaries on October 1, 2025. The transfer represented a strategic shift for ANGI and accordingly, the property and casualty segment is no longer a segment. The prior period disclosures below have been recast to present segment information on a comparative basis.
These segments are regularly reviewed by the Company’s chief operating decision maker (“CODM”) for the purpose of allocating resources to the segment and to assess its performance. The Company’s CODM has been identified as the Brookfield Wealth Solutions Chief Executive Officer and the Brookfield Wealth Solutions Chief Financial Officer.
The key measure used by the CODM in assessing performance and in making resource allocation decisions is Distributable Operating Earnings (“DOE”). DOE provides the CODM with insights on capital allocation and investment strategies, as well as product mix and pricing of insurance products offered by the Annuities and Life Insurance segments.
DOE is calculated as net income after applicable taxes excluding the impact of depreciation and amortization, deferred income taxes related to basis and other changes, and breakage and transaction costs, as well as certain investment and insurance reserve gains and losses, including gains and losses related to asset and liability matching strategies, non-operating adjustments related to changes in cash flow assumptions for future policy benefits, change in the fair value of embedded derivatives, and change in market risk benefits, and is inclusive of returns on equity invested in certain variable interest entities and the Company’s share of adjusted earnings from investments in certain associates. DOE allows the CODM to evaluate the Company’s segments on the basis of return on invested capital generated by its operations and allows the Company to evaluate the performance of its segments.
45
The tables below provide each segment’s results in the format that the CODM reviews its reporting segments to make decisions and assess performance.
| Three Months Ended March 31, 2026 | |||||||||||||||||
| Annuities | Life Insurance | Total | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| Net premiums and other policy related revenues | $ | $ | |||||||||||||||
| Net investment income, including reinsurance funds withheld | |||||||||||||||||
| Segment revenues (1)(2) | $ | ||||||||||||||||
| Policyholder benefits, net | |||||||||||||||||
| Interest sensitive contract benefits, excluding index credits | |||||||||||||||||
| Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired | |||||||||||||||||
| Other insurance and reinsurance expenses (3) | |||||||||||||||||
| Operating expenses, excluding transactions costs | |||||||||||||||||
| Segment DOE | $ | $ | $ | ||||||||||||||
| Corporate and other DOE | ( | ||||||||||||||||
| Depreciation and amortization expenses | ( | ||||||||||||||||
| Deferred income tax recovery (expense) relating to basis and other changes | |||||||||||||||||
| Transaction costs | ( | ||||||||||||||||
| Mark-to-market gains (losses) on investments, including reinsurance funds withheld | ( | ||||||||||||||||
| Mark-to-market gains (losses) on insurance contracts and other net assets | ( | ||||||||||||||||
Loss from continuing operations (4) | $ | ( | |||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||
| Annuities | Life Insurance | Total | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| Net premiums and other policy related revenues | $ | $ | |||||||||||||||
| Net investment income, including reinsurance funds withheld | |||||||||||||||||
| Segment revenues (1)(2) | $ | ||||||||||||||||
| Policyholder benefits, net | |||||||||||||||||
| Interest sensitive contract benefits, excluding index credits | |||||||||||||||||
| Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired | |||||||||||||||||
| Other insurance and reinsurance expenses (3) | |||||||||||||||||
| Operating expenses, excluding transactions costs | |||||||||||||||||
| Segment DOE | $ | $ | $ | ||||||||||||||
| Corporate and other DOE | ( | ||||||||||||||||
| Depreciation and amortization expenses | ( | ||||||||||||||||
| Deferred income tax recovery (expense) relating to basis and other changes | |||||||||||||||||
| Transaction costs | ( | ||||||||||||||||
| Mark-to-market gains (losses) on investments, including reinsurance funds withheld | ( | ||||||||||||||||
| Mark-to-market gains (losses) on insurance contracts and other net assets | ( | ||||||||||||||||
Loss from continuing operations (4) | $ | ( | |||||||||||||||
(1)For the three months ended March 31, 2026 and 2025, there were no material intersegment revenues.
(2)Our consolidated revenues in the Condensed Consolidated Statements of Operations principally represent the sum of “Segment revenues” and “Mark-to-market gains (losses) on investments, including reinsurance funds withheld” in the tables above.
(3)“Other insurance and reinsurance expenses” primarily represent “Change in fair value of market risk benefits” excluding the effect of changes in market risks (e.g., interest rates, equity markets and equity index volatility). See Note 18 - Market Risk Benefits for the details of market risk benefits.
(4)Loss from continuing operations is net loss attributable to American National Group Inc. common stockholder less income from discontinuing operations, net of tax.
The Company’s Annuities segment offers annuity-based products to individuals and institutions. Total premium revenues recorded within Annuities segment for the three months ended March 31, 2026 and 2025 were primarily from PRT transactions with institutions in the United States. Premiums received from retail annuities are generally recorded as deposits and are not included in net premiums.
46
The Company’s Life Insurance business is principally provided by American National. Total premium revenues recorded within this segment for the three months ended March 31, 2026 and 2025 were primarily from transactions with U.S. retail customers.
In addition to DOE, the CODM also monitors the assets, including investments accounted for using the equity method, liabilities and equity attributable to each segment.
| Annuities | Life Insurance | Total (1) | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
As of March 31, 2026 | |||||||||||||||||
| Assets | $ | $ | $ | ||||||||||||||
| Liabilities | |||||||||||||||||
| Equity | |||||||||||||||||
As of December 31, 2025 | |||||||||||||||||
| Assets | $ | $ | $ | ||||||||||||||
| Liabilities | |||||||||||||||||
| Equity | |||||||||||||||||
A subsidiary of American National held $1.3 billion and $1.4 billion of assets pledged under a coinsurance reinsurance agreement with a customer domiciled in the United Kingdom as of March 31, 2026 and December 31, 2025, respectively. There were no other material assets held in jurisdictions outside of the United States as of March 31, 2026 and December 31, 2025.
25. Financial Commitments and Contingencies
Commitments
As of March 31, 2026, the Company and its subsidiaries, in aggregate, had outstanding unfunded commitments to purchase, expand or improve real estate and to fund mortgage loans, private loans and investment funds of $5.9 billion.
The Company’s subsidiaries lease office space, technological equipment and automobiles. The remaining long-term lease commitments as of March 31, 2026 were approximately $123 million and are included in the Company’s Condensed Consolidated Statements of Financial Position within “Other liabilities”.
Federal Home Loan Bank (“FHLB”) Agreements
Certain of the Company’s subsidiaries have access to the FHLB’s financial services including advances that provide an attractive funding source for short-term borrowing and for access to other funding agreements. As of March 31, 2026, certain municipal bonds and collateralized mortgage obligations with a fair value of approximately $782 million and commercial mortgage loans of approximately $1.1 billion were on deposit with the FHLB as collateral for borrowing. As of March 31, 2026, the collateral provided borrowing capacity of approximately $1.2 billion. The deposited securities and commercial mortgage loans are included in the Condensed Consolidated Statements of Financial Position within “Available-for-sale fixed maturity securities” and “Mortgage loans on real estate”, respectively.
Funding Agreements
Starting in 2025, we have a funding agreement-backed note (“FABN”) program under which a subsidiary of the Company (a statutory trust that is not consolidated or affiliated with us) issues its senior secured medium-term notes. The FABN notes are underwritten and marketed by major investment banks’ broker-dealer operations and are sold to institutional investors for the purposes of generating a spread-based return. As of March 31, 2026, we had $2.0 billion outstanding under the FABN program. The maximum aggregate principal amount permitted to be outstanding at any one time is $4.0 billion. In addition, we had $789 million outstanding under other funding agreements at March 31, 2026.
Litigation
Certain of the Company’s subsidiaries are defendants in various lawsuits concerning alleged breaches of contracts, various employment matters, allegedly deceptive insurance sales and marketing practices, and miscellaneous other causes of action arising in the ordinary course of operations. Certain lawsuits include claims for compensatory and punitive damages. The Company provides accruals for these items to the extent it deems the losses probable and reasonably estimable. After reviewing these matters with legal counsel, based upon information presently available, management is of the opinion that the ultimate resultant liability, if any, would not have a material adverse effect on the statements of financial position, liquidity or results of operations; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future.
47
Such speculation warrants caution, as the frequency of large damage awards, which bear little or no relation to the economic damages incurred by plaintiffs in some jurisdictions, continues to create the potential for an unpredictable judgment in any given lawsuit. These lawsuits are in various stages of development, and future facts and circumstances could result in management changing its conclusions. It is possible that, if the defenses in these lawsuits are not successful, and the judgments are greater than management can anticipate, the resulting liability could have a material impact on the Company’s financial position, liquidity, or results of operations. With respect to the existing litigation, management currently believes that the possibility of a material judgment adverse to the Company is remote. Accruals for losses are established whenever they are probable and reasonably estimable. If no one estimate within the range of possible losses is more probable than any other, an accrual is recorded based on the lowest amount of the range.
26. Discontinued Operations
As discussed in Note 1 - Organization and Description of the Company, the Company completed the transfer of the P&C Subsidiaries on October 1, 2025. The results of the P&C Subsidiaries have been presented as discontinued operations as the transfer represented a strategic shift for ANGI. The transfer of the P&C Subsidiaries resulted in the removal of the P&C segment which is further discussed in Note 24 - Segment Reporting.
The following table summarizes the major components of net income from discontinued operations, net of tax related to the distribution, for the three months ended March 31, 2025.
| Three Months Ended March 31, 2025 | |||||||||||
| (Dollars in millions) | |||||||||||
| Net premiums | $ | ||||||||||
| Net investment income | |||||||||||
| Investment related losses | ( | ||||||||||
| Other income | |||||||||||
| Total revenues | |||||||||||
| Policyholder benefits and claims incurred | |||||||||||
| Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired | |||||||||||
| Operating expenses | |||||||||||
| Total benefits and expenses | |||||||||||
| Net income before income taxes from discontinued operations | |||||||||||
| Income tax expense | |||||||||||
| Net income from discontinued operations | $ | ||||||||||
27. Subsequent Events
The Company evaluated all events and transactions through May 14, 2026, the date the accompanying condensed consolidated financial statements were issued.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's discussion and analysis reviews our unaudited condensed consolidated financial position at March 31, 2026 compared with December 31, 2025, and our unaudited condensed consolidated results of operations for the three months ended March 31, 2026 and 2025, and where appropriate, factors that may affect future financial performance. This analysis should be read in conjunction with our unaudited condensed consolidated financial statements, notes thereto and selected condensed consolidated financial data appearing elsewhere in this Form 10-Q as well as the December 31, 2025 audited consolidated financial statements included in the Form 10-K, filed with the SEC on March 30, 2026. Interim operating results for the three months ended March 31, 2026 are not necessarily indicative of the results expected for the entire year. Preparation of financial statements requires use of management estimates and assumptions.
Cautionary Statement Regarding Forward-Looking Information
All statements, trend analysis and other information contained in this report and elsewhere (such as in filings by us with the SEC, press releases, presentations by us or management or oral statements) may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements give expectations or forecasts of future events and do not relate strictly to historical or current facts. They may relate to markets for our products, trends in our operations or financial results, strategic alternatives, future operations, strategies, plans, partnerships, investments, share buybacks and other financial developments. They use words and terms such as anticipate, assume, believe, can, continue, could, enable, estimate, expect, foreseeable, goal, improve, intend, likely, may, model, objective, opportunity, outlook, plan, potential, project, remain, risk seek, should, strategy, target, will, would, and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all forms of speech and derivative forms, or similar words, as well as any projections of future events or results. Forward-looking statements, by their nature, are subject to a variety of assumptions, risks, and uncertainties that could cause actual results to differ materially from the results projected. Many of these risks and uncertainties cannot be controlled by the Company. Factors that may cause our actual decisions or results to differ materially from those contemplated by these forward-looking statements include, among other things:
•results differing from assumptions, estimates, and models.
•interest rate condition changes.
•investments losses or failures to grow as quickly as expected due to market, credit, liquidity, concentration, default, and other risks.
•option costs increases.
•counterparty credit risks.
•third parties service-provider failures to perform or to comply with legal or regulatory requirements.
•poor attraction and retention of customers or distributors due to competitors’ greater resources, broader array of products, and higher ratings.
•information technology and communication systems failures or security breaches.
•credit or financial strength downgrades.
•inability to raise additional capital to support our business and sustain our growth on favorable terms.
•U.S. and global capital market and economic deterioration due to major public health issues, including political or social developments, or otherwise.
•failure to authorize and pay dividends on our preferred stock.
•subsidiaries’ inability to pay dividends or make other payments to us.
•failure at reinsurance, investment management, or third-party capital arrangements.
•failure to prevent excessive risk-taking.
•failure of policies and procedures to protect from operational risks.
•increased litigation, regulatory examinations, and tax audits.
•changes to laws, regulations, accounting, and benchmarking standards.
•takeover or combination delays or deterrence by laws, corporate governance documents, or change-in-control agreements.
•effects of climate change, or responses to it.
•failure of efforts to meet environmental, social, and governance standards and to enhance sustainability.
For a detailed discussion of these and other factors that might affect our performance, see Item 1A of this report.
Overview of our Business
Through our insurance subsidiaries, our Company is focused on being a source of certainty for individuals and institutions through a range of insurance and retirement services. Our business is presently conducted through our subsidiaries under two operating segments: Annuities and Life Insurance.
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Key Financial Data
The following table presents key financial data of the Company:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Total assets | $ | 130,406 | $ | 123,434 | |||||||||||||||||||
| Net loss attributable to American National Group Inc. common stockholder | (7) | (236) | |||||||||||||||||||||
| Segment distributable operating earnings (1) | 402 | 439 | |||||||||||||||||||||
(1)Distributable Operating Earnings is a Non-GAAP measure. See “Reconciliation of Non-GAAP Measures”.
Results of Operations for the Three Months Ended March 31, 2026 and 2025
Net Premiums
The breakdown of premiums by product, net of ceded premiums is as follows:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Annuities | |||||||||||||||||||||||
| Retail (1) | |||||||||||||||||||||||
| Fixed Index | $ | — | $ | — | |||||||||||||||||||
| Fixed Rate | — | 2 | |||||||||||||||||||||
| Total Retail Annuities | — | 2 | |||||||||||||||||||||
| Institutional | |||||||||||||||||||||||
| Pension Risk Transfer (2) | 62 | 376 | |||||||||||||||||||||
| Total Institutional Annuities | 62 | 376 | |||||||||||||||||||||
| Total Annuities | 62 | 378 | |||||||||||||||||||||
| Life | 83 | 80 | |||||||||||||||||||||
| Total net premiums | $ | 145 | $ | 458 | |||||||||||||||||||
(1)Premiums received from retail annuities are generally recorded as deposits and are not included in net premiums on the Condensed Consolidated Statements of Operations.
(2)Premiums differ from gross annuity sales in Pension Risk Transfer (PRT), since premiums are recognized as revenue when due while they are included in sales upon deal close, which is confirmed by the counterparty.
Comparison of Three Months Ended March 31, 2026 vs. 2025
For the three months ended March 31, 2026, we reported total net premiums of $145 million, compared to net premiums of $458 million for the same period in 2025. The decrease of $313 million is a result of a smaller PRT market during 2026.
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Gross Annuity Sales
Gross annuity sales are comprised of directly written retail and institutional annuity deposits, which generally are not included in revenues on the Condensed Consolidated Statements of Operations.
The breakdown of gross annuity sales is as follows:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Retail: | |||||||||||||||||||||||
Fixed Index | $ | 1,691 | $ | 1,835 | |||||||||||||||||||
Fixed Rate | 1,379 | 1,043 | |||||||||||||||||||||
| Other (1) | 176 | 46 | |||||||||||||||||||||
Total Retail Annuities | 3,246 | 2,924 | |||||||||||||||||||||
| Institutional: | |||||||||||||||||||||||
| Pension Risk Transfer (2) | 64 | 382 | |||||||||||||||||||||
| Funding Agreements | 500 | 500 | |||||||||||||||||||||
Total Institutional Annuities | 564 | 882 | |||||||||||||||||||||
| Total gross annuity sales | $ | 3,810 | $ | 3,806 | |||||||||||||||||||
(1)Other retail annuities represent sales of single premium immediate annuities and structured settlement annuities.
(2)Gross annuity sales differ from premiums in Pension Risk Transfer, since premiums are recognized as revenue when due while they are included in sales upon deal close, which is confirmed by the counterparty.
Comparison of Three Months Ended March 31, 2026 vs. 2025
For the three months ended March 31, 2026, we reported total gross annuity sales of $3.8 billion, compared to gross annuity sales of $3.8 billion in the prior year period. Annuity sales were largely consistent quarter over quarter led by increased sales in our fixed rate annuity product. This was offset by a decrease in PRT sales due to a smaller PRT market during 2026.
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The following table summarizes the financial results of our business for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Net premiums | $ | 145 | $ | 458 | |||||||||||||||||||
| Other policy revenue | 162 | 149 | |||||||||||||||||||||
| Net investment income | 1,289 | 1,251 | |||||||||||||||||||||
| Investment related gains (losses) | (30) | 3 | |||||||||||||||||||||
| Other income | 34 | 28 | |||||||||||||||||||||
| Total revenues | 1,600 | 1,889 | |||||||||||||||||||||
| Policyholder benefits and claims incurred | 231 | 602 | |||||||||||||||||||||
| Interest sensitive contract benefits | 545 | 512 | |||||||||||||||||||||
| Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired | 272 | 238 | |||||||||||||||||||||
| Change in fair value of insurance-related derivatives and embedded derivatives | 138 | 199 | |||||||||||||||||||||
| Change in fair value of market risk benefits | 139 | 361 | |||||||||||||||||||||
| Operating expenses | 206 | 224 | |||||||||||||||||||||
| Interest expense | 49 | 44 | |||||||||||||||||||||
| Total benefits and expenses | 1,580 | 2,180 | |||||||||||||||||||||
| Net income (loss) before income taxes | 20 | (291) | |||||||||||||||||||||
| Income tax expense (benefit) | 17 | (62) | |||||||||||||||||||||
| Income (loss) from continuing operations | 3 | (229) | |||||||||||||||||||||
| Income from discontinuing operations, net of tax | — | 26 | |||||||||||||||||||||
| Net income (loss) | 3 | (203) | |||||||||||||||||||||
| Less: Net income from continuing operations attributable to noncontrolling interests, net of tax | 4 | 3 | |||||||||||||||||||||
| Net loss attributable to American National Group Inc. stockholders | (1) | (206) | |||||||||||||||||||||
| Less: Preferred stock dividends and redemption | 6 | 30 | |||||||||||||||||||||
| Net loss attributable to American National Group Inc. common stockholder | $ | (7) | $ | (236) | |||||||||||||||||||
Comparison of Three Months Ended March 31, 2026 vs. 2025
For the three months ended March 31, 2026, we reported a net loss of $(1) million, compared to a net loss of $(206) million for the same period in 2025. The change in net income (loss) is primarily driven by decreases in the expense associated with the change in fair value of market risk benefits and the expense associated with the change in fair value of insurance-related derivatives and embedded derivatives as a result of equity market and interest rate movements. Additionally, there was an increase in net investment income due to continued rotation into higher yielding investment strategies and a decrease in policyholder benefits and claims incurred, partially offset by a decrease in net premiums, due to lower PRT sales. Those impacts were partially offset by an increase in interest sensitive contract benefits and an increase in amortization of DAC, DSI, and VOBA which are a result of continued growth of the annuity business.
Net premiums and other policy revenue of $307 million decreased by $300 million for the three months ended March 31, 2026, compared to the same period in 2025 primarily due to lower PRT sales as compared to the prior year period due to a smaller PRT market during 2026.
Net investment income increased by $38 million for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily driven by the increase in assets under management due to sustained growth of the business as well as continued rotation into higher yielding investment strategies.
The Company realized investment related losses of $30 million for the three months ended March 31, 2026, compared to gains of $3 million for the same period in 2025. The decrease in investment gains of $33 million was primarily due to unrealized losses on equity securities during 2026.
Policyholder benefits and claims incurred decreased by $371 million for the three months ended March 31, 2026, compared to the same period in 2025. The decrease is primarily due to a reduction in PRT sales which resulted in lower reserve changes.
For the three months ended March 31, 2026, interest sensitive contract benefits increased compared to the same period in 2025 by $33 million which was primarily driven by an increase in the in-force block of annuity business due to continued growth of the business.
Amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired increased by $34 million compared to the same period in 2025, primarily due to continued growth of the annuity business which increases the deferred acquisition cost and deferred sales inducements assets.
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Change in fair value of insurance-related derivatives and embedded derivatives decreased by $61 million for the three months ended March 31, 2026 compared to the same period of 2025. The decrease was primarily due to the impact of interest rates and equity market performance on the fair value of the embedded derivatives and equity-indexed options.
The decrease in the change in fair value of market risk benefit of $222 million for the three months ended March 31, 2026 compared to the same period of 2025 was primarily due to the impact of interest rates and equity markets on the valuation of these liabilities.
Operating expenses decreased by $18 million for the three months ended March 31, 2026 compared to the same period in 2025, primarily driven by a one-time non-recurring transaction related expense in 2025.
Interest expense on borrowings increased by $5 million for the three months ended March 31, 2026 compared to the same period in 2025 primarily as a result of increased borrowings with senior notes issued in June 2025 and junior subordinated notes entered into in August 2025. These increases in interest expense were partially offset by recurring repayments of the term loan during 2025.
Income tax expense was $17 million for the three months ended March 31, 2026, resulting in an effective tax rate of 85.0%. This is compared to a $(62) million tax benefit and a 21.3% effective tax rate for the same period in 2025. For the three months ended March 31, 2026, the Company’s effective rate was higher than the statutory rate of 21% primarily due to the impact of permanent differences relative to comparatively low net income before income taxes. Items impacting the rate included changes to our Bermuda deferred tax asset and tax credit project expenses which resulted in a 70% increase in the effective tax rate. For the three month period ended March 31, 2025, the Company’s effective tax rate was not materially different from the statutory rate of 21%.
Income from discontinuing operations, net of tax was $0 million for the three months ended March 31, 2026 compared to $26 million for the same period in 2025. Income from discontinuing operations was largely attributable to improvements in our loss experience arising from underwriting actions implemented on the property casualty block of business which was disposed of during 2025 as discussed in Note 26 - Discontinued Operations.
Distributable Operating Earnings
We measure operating performance primarily using Distributable Operating Earnings (“DOE”) which is a Non-GAAP metric which measures our ability to acquire net insurance assets at a positive margin, and invest these assets at a return that is greater than the cost of policyholder liabilities. See “Performance Measures Used by Management” for the reconciliation of GAAP consolidated net income to DOE.
The following table presents DOE of each of our reporting segments for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Annuities | $ | 382 | $ | 407 | |||||||||||||||||||
| Life Insurance | 20 | 32 | |||||||||||||||||||||
| Segment DOE | $ | 402 | $ | 439 | |||||||||||||||||||
Comparison of Three Months Ended March 31, 2026 vs. 2025
Annuities – DOE decreased by $25 million for the three months ended March 31, 2026 compared to the same period in 2025. The decrease is primarily attributable to a decrease in net premiums and policyholder benefits due to a smaller PRT market during 2026 as well as an increase in interest sensitive contract benefits as a result of increased new business option costs and fixed interest. These changes were partially offset by increased investment income from our continued deployment into higher yielding investment strategies coupled with an increased asset base from annuity sales over the past twelve months.
Life Insurance – DOE decreased by $12 million for the three months ended March 31, 2026 compared to the same period in 2025. The decrease was driven by the continued impact of the executed RGA reinsurance treaty executed during the third quarter of 2024.
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Financial Condition
Comparison as of March 31, 2026 and December 31, 2025
The following table summarizes the financial position as of March 31, 2026 and December 31, 2025:
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| Assets | |||||||||||
| Investments | $ | 93,560 | $ | 90,516 | |||||||
| Cash and cash equivalents | 8,934 | 11,660 | |||||||||
| Accrued investment income | 805 | 799 | |||||||||
| Deferred policy acquisition costs, deferred sales inducements and value of business acquired | 11,615 | 11,513 | |||||||||
| Deferred tax asset | 446 | 460 | |||||||||
| Reinsurance recoverables and deposit assets | 9,092 | 9,255 | |||||||||
| Property and equipment | 157 | 161 | |||||||||
| Intangible assets | 1,483 | 1,501 | |||||||||
| Other assets | 2,786 | 2,822 | |||||||||
| Goodwill | 748 | 748 | |||||||||
| Separate account assets | 780 | 822 | |||||||||
| Total assets | $ | 130,406 | $ | 130,257 | |||||||
| Liabilities | |||||||||||
| Future policy benefits | $ | 10,784 | $ | 10,962 | |||||||
| Policyholders’ account balances | 94,081 | 92,992 | |||||||||
| Policy and contract claims | 328 | 410 | |||||||||
| Market risk benefits | 4,501 | 4,536 | |||||||||
| Due to related parties | 109 | 103 | |||||||||
| Other policyholder funds | 351 | 353 | |||||||||
| Notes payable | 206 | 205 | |||||||||
| Long term borrowings | 2,954 | 2,951 | |||||||||
| Funds withheld for reinsurance liabilities | 2,969 | 3,088 | |||||||||
| Other liabilities | 3,947 | 4,166 | |||||||||
| Separate account liabilities | 780 | 822 | |||||||||
| Total liabilities | 121,010 | 120,588 | |||||||||
| Equity | |||||||||||
| Preferred stock, Series D | 292 | 292 | |||||||||
| Additional paid-in capital | 6,467 | 6,404 | |||||||||
| Accumulated other comprehensive income, net of taxes | 711 | 1,094 | |||||||||
| Retained earnings | 1,756 | 1,759 | |||||||||
| Non-controlling interests | 170 | 120 | |||||||||
| Total equity | 9,396 | 9,669 | |||||||||
| Total liabilities and equity | $ | 130,406 | $ | 130,257 | |||||||
March 31, 2026 vs. December 31, 2025
Total assets increased by $149 million during the period to $130.4 billion. The increase is primarily driven by net annuity inflows which results in increased cash and investment purchases as well as additional capitalization of deferred policy acquisition costs and deferred sales inducements due to continued strong annuity sales.
Total investments increased by $3.0 billion from December 31, 2025 to March 31, 2026. The increase is primarily driven by net annuity inflows and redeployment of cash and cash equivalents into fixed maturity investments resulting in increased investment purchases.
Cash and cash equivalents decreased by $2.7 billion from December 31, 2025 to March 31, 2026. The decrease is primarily driven by the deployment of funds into our investments. We continue to maintain a strong liquidity position across our segments. For further information, refer to “Liquidity and Capital Resources” section within this MD&A.
Deferred policy acquisition costs (“DAC”), deferred sales inducements (“DSI”) and value of business acquired (“VOBA”) are capitalized costs directly related to writing new policyholder contracts and include the VOBA intangible assets. During the year, the balance increased by $102 million primarily driven by deferrals associated with writing new business during the period.
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Deferred tax assets decreased by $14 million from December 31, 2025 to March 31, 2026. The decrease is primarily due to changes in the deferred tax asset related to the Bermuda corporate income tax.
Reinsurance recoverables and deposit assets are estimated amounts due to the Company from reinsurers and include reinsurance receivables and recoverables from reinsurers and deposit assets associated with reinsurance agreements. The amount decreased by $163 million primarily driven by a reduction in the associated insurance liabilities as well as the run off of certain blocks of business ceded to external reinsurers.
Intangible assets decreased by $18 million during the year, primarily due to the amortization of intangible assets during the period.
Other assets decreased by $36 million during the year to $2.8 billion. The balance includes current tax asset, market risk benefit asset, as well as other miscellaneous receivables, and is primarily attributable to a decrease in the current tax assets as a result of changes to net income (loss) before income taxes.
Separate account assets and liabilities both decreased by $42 million during 2026, primarily due to policyholder benefits and withdrawals during the quarter as well as net realized losses on investments.
Future policy benefits and policyholders’ account balances increased by $911 million during 2026 primarily driven by annuity sales during the period and the impact of changes in interest rates and equity markets on the valuation of the embedded derivatives during the period.
Market risk benefits decreased by $35 million during 2026 primarily due to the impact of changes in interest rates and equity markets.
Funds withheld for reinsurance liabilities decreased by $119 million during 2026 as a result of decrements on the existing ceded liabilities and the corresponding funds withheld payable as flow business is not being ceded to external reinsurers.
Other liabilities decreased by $219 million during 2026. The balance includes the reinsured market risk benefits liability, accrued interest on debt and other miscellaneous payables. The decrease during 2026 is primarily driven by a decrease in deferred tax liabilities as a result of changes in unrealized gains or losses and future policy benefits and a decrease in miscellaneous payables due to timing.
Liquidity and Capital Resources
Capital Resources
We strive to maintain sufficient financial liquidity at all times so that we are able to participate in attractive opportunities as they arise, better withstand sudden adverse changes in economic circumstances within our operating subsidiaries and maintain payments to policyholders. Our principal sources of liquidity are cash flows from our operations and access to the Company’s third-party credit facilities. We proactively manage our liquidity position to meet liquidity needs and continue to develop relationships with lenders who provide borrowing capacity at competitive rates, while looking to minimize adverse impacts on investment returns. We look to structure the ownership of our assets to enhance our ability to monetize them to provide additional liquidity, if needed. Our liquidity for the periods noted below consisted of the following:
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| Cash and cash equivalents | $ | 8,934 | $ | 11,660 | |||||||
| Liquid financial assets | 43,112 | 42,041 | |||||||||
| Undrawn credit facilities | 1,236 | 1,505 | |||||||||
| Total liquidity (1) | $ | 53,282 | $ | 55,206 | |||||||
(1)Total Liquidity is a Non-GAAP measure. See “Performance Measures used by Management.”
Today, we have significant liquidity within our insurance portfolios, giving us flexibility to secure attractive investment opportunities. In addition to a portfolio of highly liquid financial assets, our operating companies have additional access to liquidity from sources such as the Federal Home Loan Bank (“FHLB”) and access to a sub-allocation under the Brookfield Wealth Solutions revolving credit facility. As of March 31, 2026, the Company had no drawings and a total of $1.2 billion undrawn commitment available related to the FHLB program, and access to $500 million of capacity under the revolving credit facility.
Liquidity within our insurance subsidiaries may be restricted from time to time due to regulatory constraints. As of March 31, 2026, the Company’s total liquidity was $53.3 billion, which included $502 million of cash and cash equivalents held outside of the regulated insurance companies.
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Comparison of the Three Months Ended March 31, 2026 and 2025
The following table presents a summary of our cash flows and ending cash balances for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| Operating activities | $ | 699 | $ | 672 | |||||||
| Investing activities | (4,314) | (5,748) | |||||||||
| Financing activities | 889 | 1,265 | |||||||||
| Cash and cash equivalents: | |||||||||||
| Cash and cash equivalents, beginning of period | 11,660 | 11,330 | |||||||||
| Net change during the period | (2,726) | (3,811) | |||||||||
| Cash and cash equivalents, end of period | 8,934 | 7,519 | |||||||||
| Less: Cash and cash equivalents of discontinued operations | — | 496 | |||||||||
| Cash and cash equivalents, end of period | $ | 8,934 | $ | 7,023 | |||||||
Operating Activities
For the three months ended March 31, 2026, we generated $699 million of cash from operating activities compared to $672 million during 2025, primarily due to an increase in net investment income due to continued rotation into higher yielding investment strategies for three months ended March 31, 2026 compared to the three months ended March 31, 2025 as detailed above.
Investing Activities
For the three months ended March 31, 2026, cash outflows arose as we deployed cash and cash equivalents held as of December 31, 2025 to primarily short-term investments and available-for-sale fixed maturity securities and continued to rotate our investment portfolio into higher yielding investment strategies. This resulted in net deployment of $4.3 billion of cash from investing activities, compared to net deployment of $5.7 billion in the prior year.
Financing Activities
For the three months ended March 31, 2026, we recorded a net cash inflow of $889 million from our financing activities, compared to net inflow of $1.3 billion recorded in 2025. The proceeds in the current year period were mainly as a result of $891 million net payments received on policyholders’ account deposits partially offset by withdrawals on such accounts.
Financial Instruments
To the extent that we believe it is economically prudent to do so, our strategy is to hedge a portion of our equity investments and/or cash flows exposed to foreign currencies by the Company. The following key principles form the basis of our foreign currency hedging strategy:
•We leverage any natural hedges that may exist within our operations;
•We utilize local currency debt financing to the extent possible; and
•We may utilize derivative contracts to the extent that natural hedges are insufficient.
Future Capital Obligations and Requirements
As of March 31, 2026, the Company and its subsidiaries, in aggregate, had outstanding investment commitments of $5.9 billion. The funded commitments are primarily recognized as mortgage loans, private loans, investment funds, investment real estate and other invested assets. For additional information, see Note 25 - Financial Commitments and Contingencies of the financial statements.
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The following is the maturity by year on long term borrowings:
| Payments Due by Year | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | Unamortized Discount and Issuance Costs | Less Than 1 year | 1-2 Years | 2-3 Years | 3-4 Years | 4-5 Years | More Than 5 Years | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| Long term borrowings | $ | 2,954 | $ | (46) | $ | — | $ | 600 | $ | — | $ | 600 | $ | — | $ | 1,800 | |||||||||||||||||||||||||||||||
As of December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Long term borrowings | $ | 2,951 | $ | (49) | $ | — | $ | 600 | $ | — | $ | 600 | $ | — | $ | 1,800 | |||||||||||||||||||||||||||||||
For additional information, See Note 19 - Long Term Borrowings of the financial statements.
Capital Management
Capital management is the on-going process of determining and maintaining the quantity and quality of capital appropriate to take advantage of the Company’s growth opportunities, to support the risks associated with the business and to optimize shareholder returns while fully complying with the regulatory capital requirements.
The Company and its subsidiaries take an integrated approach to risk management that involves the Company’s risk appetite and capital requirements. The operating capital levels are determined by the Company’s risk appetite and Own Risk and Solvency Assessment (“ORSA”). Furthermore, additional stress techniques are used to evaluate the Company’s capital adequacy under sustained adverse scenarios.
American National and AEL are required to follow Risk Based Capital (“RBC”) requirements based on guidelines of the National Association of Insurance Commissioners (“NAIC”). RBC is a method of measuring the level of capital appropriate for an insurance company to support its overall business operations, in light of its size and risk profile. It provides a means of assessing capital adequacy, where the degree of risk taken by the insurer is the primary determinant.
The Company has determined that it is in compliance with all capital requirements as of March 31, 2026 and December 31, 2025.
Performance Measures Used by Management
To measure performance, we focus on net income and total assets, as well as certain Non-GAAP measures, including DOE and Total Liquidity, which we believe are useful to investors to provide additional insights into assets within the business available for redeployment. See “Results of Operations”, “Financial Condition,” and “Liquidity and Capital Resources” sections of this MD&A for further discussion on our performance and Non-GAAP measures for the three months ended March 31, 2026 and 2025.
Non-GAAP Measures
We regularly monitor certain Non-GAAP measures that are used to evaluate our performance and analyze underlying business performance and trends. We use these measures to establish budgets and operational goals, manage our business and evaluate our performance. We also believe that these measures help investors compare our operating performance with our results in prior years. These Non-GAAP financial measures are provided as supplemental information to the financial measures presented in this MD&A that are calculated and presented in accordance with GAAP. These Non-GAAP measures are not comparable to GAAP and may not be comparable to similarly described Non-GAAP measures reported by other companies, including those within our industry.
Consequently, our Non-GAAP measures should not be evaluated in isolation, but rather, should be considered together with the most directly comparable GAAP measure in our condensed consolidated financial statements for the years presented. The Non-GAAP financial measures we present in this MD&A should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP.
Distributable Operating Earnings
We use DOE to assess operating results and the performance of our businesses. We define DOE as net income after applicable taxes, excluding the impact of depreciation and amortization, deferred income taxes related to basis and other changes, and breakage and transaction costs, as well as certain investment and insurance reserve gains and losses, including gains and losses related to asset and liability matching strategies, non-operating adjustments related to changes in cash flow assumptions for future policy benefits and change in market risk benefits. DOE is inclusive of returns on equity invested in certain variable interest entities and our share of adjusted earnings from our investments in certain associates.
DOE is a measure of operating performance that is not calculated in accordance with, and does not have any standardized meaning prescribed by GAAP. DOE is, therefore, unlikely to be comparable to similar measures presented by other issuers.
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We believe our presentation of DOE is useful to investors because it supplements investors’ understanding of our operating performance by providing information regarding our ongoing performance that excludes items we believe do not directly affect our core operations. Our presentation of DOE also provides investors enhanced comparability of our ongoing performance across years.
Total Liquidity
Total Liquidity is a measure of our liquidity position and includes cash and cash equivalents, undrawn revolving credit facilities and liquid financial assets held by our regulated insurance entities.
The following table contains further details regarding our use of our Non-GAAP measures, as well as a reconciliation of GAAP consolidated net income from continuing operations to DOE:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
Loss from continuing operations (1) | $ | (7) | $ | (262) | |||||||||||||||||||
| Mark-to-market losses (gains) on investments, including reinsurance funds withheld (2) | 137 | 75 | |||||||||||||||||||||
| Mark-to-market losses (gains) on insurance contracts and other net assets (3)(4) | 162 | 582 | |||||||||||||||||||||
| Deferred income tax expense (recovery) relating to basis and other changes | (51) | (138) | |||||||||||||||||||||
Transaction costs | 26 | 32 | |||||||||||||||||||||
| Depreciation and amortization expenses | 39 | 52 | |||||||||||||||||||||
| Corporate and other DOE | 96 | 98 | |||||||||||||||||||||
| Segment DOE | $ | 402 | $ | 439 | |||||||||||||||||||
(1)Loss from continuing operations is net loss attributable to American National Group Inc. common stockholder less income from discontinuing operations, net of tax.
(2)“Mark-to-market losses (gains) on investments, including reinsurance funds withheld” primarily represent mark-to-market gains or losses on our investments and reinsurance funds withheld. Mark-to-market gains or losses on our invested assets are presented as “Investment related gains (losses)” on the Condensed Consolidated Statements of Operations. See Note 10 - Net Investment Income and Investment Related Gains (Losses) in the notes to the condensed consolidated financial statements for additional details.
(3)“Mark-to-market losses (gains) on insurance contracts and other net assets” principally represents the mark-to-market effect on insurance-related liabilities, net of reinsurance, due to changes in market risks (e.g., interest rates, equity markets and equity index volatility). These mark-to-market effects are primarily included in “Interest sensitive contract benefits”, “Change in fair value of insurance-related derivatives and embedded derivatives” and “Change in fair value of market risk benefits” on the Condensed Consolidated Statements of Operations. See the following notes to the condensed consolidated financial statements for additional information: (i) Note 9 - Derivative Instruments; (ii) Note 17 - Policyholders' Account Balances; and (iii) Note 18 - Market Risk Benefits.
(4)Included in “Mark-to-market losses (gains) on insurance contracts and other net assets” are “returns on equity invested in certain variable interest entities” and “our share of adjusted earnings from our investments in certain associates” as stated in the definition of DOE. “Returns on equity invested in certain variable interest entities” primarily represent equity-accounted income from our investments in real estate partnerships and investment funds and are included in “Net investment income” on the Condensed Consolidated Statements of Operations.
New Accounting Pronouncements
See Note 2 - Summary of Significant Accounting Policies to our unaudited condensed consolidated financial statements in this Form 10-Q, which is incorporated by reference in this Item 2.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Market Risk
Our Condensed Consolidated Statements of Financial Position within our financial statements include substantial amounts of assets and liabilities whose fair values are subject to market risks. Our significant market risks are primarily associated with interest rates, foreign currency exchange rates and credit risk. The fair values of our investment portfolios remain subject to considerable volatility. The following sections address the significant market risks associated with our business activities.
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Foreign Exchange Rate Risk
The Company’s obligations under its insurance contracts are predominantly denominated in U.S. dollars, but a portion of the assets supporting these liabilities are denominated in non-U.S. dollars. In addition, we have exposure to foreign currency risk in connection with a U.K. pension risk transfer transaction that we are reinsuring. We manage foreign exchange risk primarily using foreign exchange forwards and cross currency swaps. Our investment policy sets out the foreign currency exposure limits and types of derivatives permitted for hedging purposes. Our net assets are subject to financial statement translation into U.S. dollars. All of our financial statement translation-related impact from changes in foreign currency rates is recorded in other comprehensive income. Gains and losses from foreign currency transactions of the Company’s invested assets are reported in “Investment related gains (losses)” in the Condensed Consolidated Statements of Operations. The impact on net income resulting from a hypothetical 10% decrease in foreign currencies against the U.S. Dollar, net of the impact of foreign exchange hedging strategies, would not be expected to be material.
Interest Rate Risk
Substantial and sustained increases or decreases in interest rates may cause certain market dislocations that could negatively impact our financial performance.
We manage interest rate risk through our asset liability management, which we refer to as ALM, the framework whereby the effective and key rate durations of the investment portfolio are closely matched to those of the insurance liabilities. Within the context of the ALM framework, we use derivatives including interest rate swaps, options and futures to reduce market risk. For the annuities business, where the timing and amount of the benefit payment obligations can be readily determined, the matching of asset and liability cash flows is effectively controlled through this comprehensive duration management process.
Other Price Risk
Other price risk is the risk of variability in fair value due to movements in equity prices or other market prices such as commodity prices and credit spreads.
The Company’s exposure to the equity markets is managed by sector and individual security, and the Company mitigates the equity price risk by diversification of the investment portfolio.
The Company also has equity price risk associated with the equity-indexed life and annuity products the Company issues and assumes. The Company has entered into derivative transactions, primarily over-the-counter equity call options, to hedge the exposure to equity-index changes.
Credit Risk
Credit risk is the risk of loss from amounts owed by counterparties and arises any time funds are extended, committed, owed or invested through actual or implied contractual arrangements, including reinsurance. The Company is primarily exposed to credit risk through its fixed income investments, which include debt securities and private loans.
We manage exposure to credit risk by establishing concentration limits by counterparty, credit rating and asset class. To further minimize credit risk, the financial condition of the counterparties is monitored on a regular basis. These requirements are outlined in our investment policy.
Insurance Risk
The Company makes assumptions and estimates when assessing insurance and reinsurance risks, and significant deviations, particularly with regards to mortality, morbidity, longevity and other policyholder behavior, could adversely affect our business, financial condition, results of operations, liquidity and cash flows. All transaction terms are likely to be determined by qualitative and quantitative factors, including our estimates.
We manage insurance risk through choosing whether to purchase reinsurance for certain amounts of risk underwritten in our Annuities and Life Insurance segments.
Legal Risk
In the future, we may be parties in actions that routinely arise out of the normal course of business, including legal actions seeking to establish liability directly through insurance contracts. Plaintiffs occasionally seek punitive or exemplary damages. We do not believe that such normal and routine litigation will have a material effect on our financial condition or results of operations. We are also involved from time to time in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines and penalties. We believe that any liability that may arise as a result of other pending legal actions will not have a material effect on our financial statements.
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Operational Risk
Operational risk is the potential for loss resulting from inadequate or failed internal processes, people and systems, or from external events. The Company’s internal control processes are supported by the maintenance of a risk register and independent internal audit review. The risk of fraud is managed through a number of processes including background checks on staff on hire, annual code of conduct confirmations, anti-bribery training and segregation of duties.
We have outsourcing arrangements in respect of certain administrative and operational functions. These arrangements are subject to agreements with formal service levels, operate within agreed authority limits and are subject to regular review by senior management. Material outsourcing arrangements are approved and monitored by the Board of Directors.
Disaster recovery and business continuity plans have also been established to manage the Company’s ability to operate under adverse conditions.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
In accordance with Exchange Act Rules 13a-15(e) and 15d-15(e), our management, under the supervision of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report on Form 10-Q. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded the design and operation of our disclosure controls and procedures were effective as of March 31, 2026 in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by us in the reports that we file or submit under the Exchange Act.
There were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
See Note 25 - Financial Commitments and Contingencies to the unaudited condensed consolidated financial statements in this Form 10-Q, which is incorporated by reference in this Item 1, for any required disclosure.
Item 1A. Risk Factors
We describe certain factors that may affect our business or operations under "Risk Factors" in Part I, Item 1A, of our 2025 Annual Report on Form 10-K.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
None.
Item 5. Other Information
During the three months ended March 31, 2026, none of the Company’s directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted terminated
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Item 6. Exhibits
Note Regarding Reliance on Statements in Our Contracts and Other Exhibits: We include agreements and other exhibits to this report to provide information regarding their terms and not to provide any other factual or disclosure information about us, our subsidiaries or affiliates, or the other parties to the agreements, or for any other purpose. The agreements and other exhibits may contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement or other arrangement and (i) should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) have in many cases been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; (iii) may apply standards of materiality in a way that is different from what may be viewed as material to investors; and (iv) were made only as of the date of the applicable agreement or other exhibit, or such other date or dates as may be specified in the document and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time.
| Exhibit Number | Description | |||||||
| 3.1 | Certificate of Incorporation of American National Group Inc. (Incorporated by reference to Exhibit 3.2 to Form 8-K filed on May 8, 2024) | |||||||
| 3.2 | Certificate of Amendment to the Certificate of Incorporation of American National Group Inc. (including the Certificate of Designations with respect to the Series D Preferred Stock of the Company) (Incorporated by reference to Exhibit 3.1 to Form 8-K filed on January 10, 2025) | |||||||
| 3.3 | Bylaws of American National Group Inc. (Incorporated by reference to Exhibit 3.3 to Form 8-K filed on May 8, 2024) | |||||||
| 31.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||
| 31.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||
| 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||
| 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||
| 101 | The following materials from American National Group Inc.'s Quarterly Report on Form 10-Q for the period ended March 31, 2026 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Financial Position, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Changes in Stockholders' Equity, (v) the Condensed Consolidated Statements of Cash Flows and (vi) the Notes to Condensed Unaudited Consolidated Financial Statements. | |||||||
| 104 | The cover page from American National Group Inc.'s Quarterly Report on Form 10-Q for the period ended March 31, 2026 formatted in iXBRL and contained in Exhibit 101. | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: | May 14, 2026 | AMERICAN NATIONAL GROUP INC. | |||||||||||||||
| By: | /s/ Reza Syed | ||||||||||||||||
| Reza Syed | |||||||||||||||||
| Chief Financial Officer & Executive Vice President | |||||||||||||||||
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FAQ
How did American National Group Inc. (ANG) perform financially in Q1 2026?
American National Group reported revenues of $1.6 billion in Q1 2026 and a small net loss to the common stockholder of $7 million. This compares with $1.89 billion of revenue and a $236 million loss a year earlier, indicating improved underlying profitability.
What drove the change in American National Group’s net income versus Q1 2025?
Net loss to the common stockholder narrowed to $7 million from $236 million, mainly because policyholder benefits, claims, and derivative-related expenses were lower. While premiums fell, investment income increased modestly, helping offset revenue pressure after reinsurance and portfolio changes.
Why did American National Group report a large comprehensive loss in Q1 2026?
Comprehensive loss attributable to stockholders was $384 million, largely due to a $667 million decline in net unrealized investment gains on available-for-sale securities. These fair value movements flowed through other comprehensive income, offsetting the improvement seen in net income from continuing operations.
How strong were American National Group’s cash flows and liquidity in Q1 2026?
Operating activities generated $699 million of cash, slightly higher than last year. Significant investment purchases and derivatives activity led to $4.31 billion of net cash used in investing, reducing cash and cash equivalents from $11.66 billion at year-end to $8.93 billion at March 31 2026.
What happened to American National Group’s investment portfolio during Q1 2026?
Available-for-sale fixed maturity securities increased to $61.18 billion at fair value, up from $57.99 billion. Net investment income rose to $1.29 billion, but equity securities produced $52 million of losses and bonds showed net unrealized losses, driving negative other comprehensive income.
How did policyholder-related balances change for American National Group in Q1 2026?
Future policy benefits declined slightly to $10.78 billion, while policyholders’ account balances grew to $94.08 billion from $92.99 billion. This reflects continued growth in annuity and life account balances, even as some traditional benefit reserves decreased modestly over the quarter.