What changed in this filing

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Item 1. Financial Statements

2026-08-03 compared with 2026-05-05 · 527 added, 291 removed, 2386 unchanged (26% of the section changed)

3 unchanged sentences

(in millions, except share data)

March 31, December 31,

June 30, December 31,

Assets (Unaudited)

Debt Securities, available-for-sale, net of allowance for credit losses of $ 17 and $ 11 at March 31, 2026 and December 31, 2025, respectively (amortized cost:

Debt Securities, available-for-sale, net of allowance for credit losses of $ 24 and $ 11 at June 30, 2026 and December 31, 2025, respectively (amortized cost:

2026 $ 55,815 ;

3 unchanged sentences

Equity securities, at fair value 262 172

Mortgage loans, net of allowance for credit losses of $ 159 and $ 133 at March 31, 2026 and December 31, 2025, respectively

Mortgage loans, net of allowance for credit losses of $ 176 and $ 133 at June 30, 2026 and December 31, 2025, respectively

Mortgage loans, at fair value under fair value option 595 324

Policy loans (including $ 3,556 and $ 3,537 at fair value under the fair value option at March 31, 2026 and December 31, 2025, respectively)

Policy loans (including $ 3,617 and $ 3,537 at fair value under the fair value option at June 30, 2026 and December 31, 2025, respectively)

Freestanding derivative instruments 422 448

4 unchanged sentences

Deferred acquisition costs 11,655 11,660

Reinsurance recoverable, net of allowance for credit losses of $ 30 and $ 30 at March 31, 2026 and December 31, 2025, respectively

Reinsurance recoverable, net of allowance for credit losses of $ 31 and $ 30 at June 30, 2026 and December 31, 2025, respectively

18,331 19,518

9 unchanged sentences

Market risk benefit liabilities, at fair value 3,368 3,754

Funds withheld payable under reinsurance treaties (including $ 3,744 and $ 3,723 at fair value under the fair value option at March 31, 2026 and December 31, 2025, respectively)

Funds withheld payable under reinsurance treaties (including $ 3,806 and $ 3,723 at fair value under the fair value option at June 30, 2026 and December 31, 2025, respectively)

14,090 14,960

Long-term debt 2,027 2,030

Debt 2,769 2,030

Repurchase agreements and securities lending payable 477 1,036

8 unchanged sentences

24,000 shares authorized;

22,000 shares issued and outstanding at March 31, 2026 and December 31, 2025;

22,000 shares issued and outstanding at June 30, 2026 and December 31, 2025;

liquidation preference $ 25,000 per share (see Note 19)

Common stock;

1,000,000,000 shares authorized, $ 0.01 par value per share and 70,270,752 and 66,825,632 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively (see Note 19)

1,000,000,000 shares authorized, $ 0.01 par value per share and 68,185,286 and 66,825,632 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively (see Note 19)

Additional paid-in capital 6,401 6,063

Treasury stock, at cost;

24,217,563 and 27,662,683 shares at March 31, 2026 and December 31, 2025, respectively

26,303,029 and 27,662,683 shares at June 30, 2026 and December 31, 2025, respectively

( 1,897 ) ( 1,645 )

Accumulated other comprehensive income (loss), net of tax expense (benefit) of $( 287 ) and $( 377 ) at March 31, 2026 and December 31, 2025, respectively

Accumulated other comprehensive income (loss), net of tax expense (benefit) of $( 286 ) and $( 377 ) at June 30, 2026 and December 31, 2025, respectively

( 2,625 ) ( 2,470 )

8 unchanged sentences

(Unaudited, in millions, except per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Fee income $ 1,968 $ 1,942 $ 3,966 $ 3,928

35 unchanged sentences

(Unaudited, in millions)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income (loss) $ 660 $ 185 $ 240 $ 167

1 unchanged sentence

Change in unrealized gains (losses) on securities with no credit impairment, net of tax expense (benefit) of:

$ 2 and $ 40 , for the three months ended March 31, 2026 and 2025, respectively

$ 17 and $ 9 , for the three months ended June 30, 2026 and 2025, respectively, and $ 19 and $ 49 , for the six months ended June 30, 2026 and 2025, respectively.

172 354 ( 380 ) 961

Change in unrealized gains (losses) on securities with credit impairment, net of tax expense (benefit) of:

nil and nil , for the three months ended March 31, 2026 and 2025, respectively

Change in current discount rate related to reserve for future policy benefits, net of tax expense (benefit) of $ 16 and $( 16 ), for the three months ended March 31, 2026 and 2025, respectively

Change in non-performance risk on market risk benefits, net of tax expense (benefit) of $ 72 and $ 71 , for the three months ended March 31, 2026 and 2025, respectively

$ 1 and $( 1 ), for the three months ended June 30, 2026 and 2025, respectively, and $ 1 and $( 1 ), for the six months ended June 30, 2026 and 2025, respectively.

( 9 ) ( 25 ) ( 33 ) ( 26 )

Change in current discount rate related to reserve for future policy benefits, net of tax expense (benefit) of $( 3 ) and $( 7 ), for the three months ended June 30, 2026 and 2025, respectively, and $ 13 and $( 23 ), for the six months ended June 30, 2026 and 2025, respectively.

( 11 ) ( 24 ) 46 ( 83 )

Change in non-performance risk on market risk benefits, net of tax expense (benefit) of $( 14 ) and $( 58 ), for the three months ended June 30, 2026 and 2025, respectively, and $ 58 and $ 13 , for the six months ended June 30, 2026 and 2025, respectively.

( 49 ) ( 209 ) 212 47

Total other comprehensive income (loss) 103 96 ( 155 ) 899

10 unchanged sentences

Stock Stock Capital at Cost Income Earnings Equity Interests Equity

Balances as of December 31, 2025 $ 533 $ 1 $ 6,063 $ ( 1,645 ) $ ( 2,470 ) $ 7,471 $ 9,953 $ 389 $ 10,342

Balances as of March 31, 2026 $ 533 $ 1 $ 6,393 $ ( 1,671 ) $ ( 2,728 ) $ 6,968 $ 9,496 $ 404 $ 9,900

Net income (loss) — — — — — 655 655 5 660

6 unchanged sentences

Share based compensation — — 8 1 — — 9 — 9

Balances as of June 30, 2026 $ 533 $ 1 $ 6,401 $ ( 1,897 ) $ ( 2,625 ) $ 7,549 $ 9,962 $ 512 $ 10,474

Additional Treasury Other Total Non-

Preferred Common Paid-In Stock Comprehensive Retained Shareholders' Controlling Total

Stock Stock Capital at Cost Income Earnings Equity Interests Equity

Balances as of March 31, 2025 $ 533 $ 1 $ 6,042 $ ( 1,179 ) $ ( 2,719 ) $ 7,623 $ 10,301 $ 224 $ 10,525

Net income (loss) — — — — — 179 179 6 185

Other comprehensive income (loss) — — — — 96 — 96 — 96

Change in equity of noncontrolling interests — — — — — — — 18 18

Dividends on preferred stock — — — — — ( 11 ) ( 11 ) — ( 11 )

Dividends on common stock — — — — — ( 58 ) ( 58 ) — ( 58 )

Purchase of treasury stock — — — ( 158 ) — — ( 158 ) — ( 158 )

Share based compensation — — 5 — — — 5 — 5

Balances as of June 30, 2025 $ 533 $ 1 $ 6,047 $ ( 1,337 ) $ ( 2,623 ) $ 7,733 $ 10,354 $ 248 $ 10,602

Additional Treasury Other Total Non-

8 unchanged sentences

Purchase of treasury stock — — — ( 454 ) — — ( 454 ) — ( 454 )

Issuance of treasury stock — — 322 178 — — 500 — 500

Share based compensation — — 16 24 — ( 3 ) 37 — 37

Balances as of March 31, 2025 $ 533 $ 1 $ 6,042 $ ( 1,179 ) $ ( 2,719 ) $ 7,623 $ 10,301 $ 224 $ 10,525

Balances as of June 30, 2026 $ 533 $ 1 $ 6,401 $ ( 1,897 ) $ ( 2,625 ) $ 7,549 $ 9,962 $ 512 $ 10,474

Additional Treasury Other Total Non-

Preferred Common Paid-In Stock Comprehensive Retained Shareholders' Controlling Total

Stock Stock Capital at Cost Income Earnings Equity Interests Equity

Balances as of December 31, 2024 $ 533 $ 1 $ 6,046 $ ( 1,007 ) $ ( 3,522 ) $ 7,713 $ 9,764 $ 218 $ 9,982

Net income (loss) — — — — — 155 155 12 167

Other comprehensive income (loss) — — — — 899 — 899 — 899

Change in equity of noncontrolling interests — — — — — — — 18 18

Dividends on preferred stock — — — — — ( 22 ) ( 22 ) — ( 22 )

Dividends on common stock — — — — — ( 117 ) ( 117 ) — ( 117 )

Purchase of treasury stock — — — ( 360 ) — — ( 360 ) — ( 360 )

Share based compensation — — 1 30 — 4 35 — 35

Balances as of June 30, 2025 $ 533 $ 1 $ 6,047 $ ( 1,337 ) $ ( 2,623 ) $ 7,733 $ 10,354 $ 248 $ 10,602

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(Unaudited, in millions)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

33 unchanged sentences

(Unaudited, in millions)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from financing activities:

6 unchanged sentences

Settlements related to deferred premium on derivatives ( 335 ) —

Proceeds from debt 750 —

Payments on debt ( 4 ) ( 4 )

Pre-capitalized trust securities issuance costs ( 7 ) —

Pre-capitalized trust securities and debt issuance costs ( 17 ) —

Issuance of debt of consolidated investment entities 31 395

14 unchanged sentences

Debt securities acquired from exchanges, payments-in-kind, and similar transactions $ 66 $ 178

TPG Inc common stock acquired $ 150 $ —

common stock acquired $ 150 $ —

Non-cash financing activities

10 unchanged sentences

("JFI" or “Jackson Financial”) together with its subsidiaries (the “Company,” which also may be referred to as “we,” “our” or “us”), is a financial services company focused on helping Americans secure their financial futures.

Jackson Financial is domiciled in the state of Delaware in the United States (“U.S.”).

Jackson Financial is a Delaware corporation.

Jackson Financial’s primary life insurance subsidiary, Jackson National Life Insurance Company and its insurance subsidiaries (collectively, “Jackson”), is licensed to sell group and individual annuity products (including variable, registered index-linked, fixed index, fixed and payout annuities), and individual life insurance products, including variable universal life, in all 50 states and the District of Columbia.

5 unchanged sentences

• Brooke Life Insurance Company (“Brooke Life”), the direct parent of Jackson, is a Michigan life insurance company licensed to sell life insurance and annuity products in the state of Michigan;

• Brooke Life Reinsurance Company ("Brooke Re"), also a direct subsidiary of Brooke Life, was formed as a Michigan captive reinsurance company;

• Hickory Brooke Reinsurance Company ("Hickory Re"), a direct subsidiary of Brooke Re, was formed as a Michigan captive reinsurance company.

• Brooke Life Reinsurance Company ("Brooke Re"), a direct subsidiary of Brooke Life, is a Michigan captive reinsurance company;

• Hickory Brooke Reinsurance Company ("Hickory Re"), a direct subsidiary of Brooke Re, is a Michigan captive reinsurance company.

Significant wholly-owned subsidiaries of Jackson are as follows:

26 unchanged sentences

For regulatory reporting purposes, Hickory Re measures the liabilities for assumed contracts using a modified U.S.

GAAP methodology which is intended to increase alignment between assets and liabilities in response to changes in economic factors.

GAAP methodology that is intended to increase alignment between assets and liabilities in response to changes in economic factors.

Basis of Presentation

7 unchanged sentences

In the opinion of management, these Condensed Consolidated Financial Statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results.

Operating results for the three months ended March 31, 2026, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026.

Operating results for the three and six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026.

All material intercompany accounts and transactions have been eliminated upon consolidation.

37 unchanged sentences

The amendments are to be applied prospectively.

The Company is in the process of evaluating the impact of the new guidance and the timing of adoption.

The Company plans to adopt the new guidance effective January 1, 2027.

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270):

36 unchanged sentences

Corporate and Other

The Company’s Corporate and Other segment primarily consists of the operations of its investment management subsidiary, PPM, VIEs, and unallocated corporate income and expenses.

The Company’s Corporate and Other segment primarily consists of the operations of its investment management subsidiary, PPM, as well as VIEs and unallocated corporate income and expenses.

The Corporate and Other segment also includes intersegment eliminations and consolidation adjustments.

30 unchanged sentences

Comprised of:

(i) the change in fair value of funds withheld embedded derivatives, and (ii) net investment income on funds withheld assets related to funds withheld reinsurance transactions.

(i) the change in fair value of funds withheld embedded derivatives;

and (ii) net investment income on funds withheld assets related to funds withheld reinsurance transactions.

Comprised of:

3 unchanged sentences

above), excluding earned income from periodic settlements and changes in settlement accruals on cross-currency swaps;

(iii) investment income (loss) related to mark-to-market on TPG shares, which are subject to certain sales restrictions;

(iii) investment income (loss) related to mark-to-market on TPG Inc.

("TPG") shares, which are subject to certain sales restrictions;

and (iv) one-time or other non-recurring items.

3 unchanged sentences

Set forth in the tables below is certain information with respect to the Company’s segments (in millions):

Three Months Ended March 31, 2026 Retail Annuities Institutional

Three Months Ended June 30, 2026 Retail Annuities Institutional

Products Closed Life

20 unchanged sentences

Pretax Adjusted Operating Earnings $ 621 $ 29 $ ( 10 ) $ ( 22 ) $ 618

Three Months Ended March 31, 2025 Retail Annuities Institutional

Three Months Ended June 30, 2025 Retail Annuities Institutional

Products Closed Life

22 unchanged sentences

Segment Information

Six Months Ended June 30, 2026 Retail Annuities Institutional

Products Closed Life

Blocks Corporate and

Operating Revenues

Fee income $ 2,251 $ — $ 205 $ 21 $ 2,477

Premiums 23 — 47 — 70

Net investment income 708 283 286 35 1,312

Other income (loss) 13 — 11 6 30

Total Operating Revenues 2,995 283 549 62 3,889

Operating Benefits and Expenses

Death, other policy benefits and change in policy

reserves, net of deferrals 60 — 306 — 366

(Gain) loss from updating future policy benefits cash flow assumptions, net ( 1 ) — 36 — 35

Interest credited 248 223 172 — 643

Interest expense 11 — — 41 52

Asset-based commission expenses 593 — — — 593

Other commission expenses 660 — 15 — 675

Sub-advisor expenses 150 — — ( 3 ) 147

General and administrative expenses 423 3 55 83 564

Deferral of acquisition costs ( 557 ) — — — ( 557 )

Amortization of deferred acquisition costs 319 — 4 — 323

Total Operating Benefits and Expenses 1,906 226 588 121 2,841

Pretax Adjusted Operating Earnings $ 1,089 $ 57 $ ( 39 ) $ ( 59 ) $ 1,048

Six Months Ended June 30, 2025 Retail Annuities Institutional

Products Closed Life

Blocks Corporate and

Operating Revenues

Fee income $ 2,154 $ — $ 215 $ 22 $ 2,391

Premiums 34 — 50 — 84

Net investment income 391 241 368 19 1,019

Other income 14 — 11 5 30

Total Operating Revenues 2,593 241 644 46 3,524

Operating Benefits and Expenses

Death, other policy benefits and change in policy

reserves, net of deferrals 62 — 308 — 370

(Gain) loss from updating future policy benefits cash flow assumptions, net ( 4 ) — 25 — 21

Interest credited 195 201 187 — 583

Interest expense 11 — — 39 50

Asset-based commission expenses 557 — — — 557

Other commission expenses 441 — 17 — 458

Sub-advisor expenses 158 — — ( 4 ) 154

General and administrative expenses 389 3 54 87 533

Deferral of acquisition costs ( 343 ) — ( 1 ) — ( 344 )

Amortization of deferred acquisition costs 290 — 4 — 294

Total Operating Benefits and Expenses 1,756 204 594 122 2,676

Pretax Adjusted Operating Earnings $ 837 $ 37 $ 50 $ ( 76 ) $ 848

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 3.

Segment Information

Intersegment eliminations in the above tables are included in the Corporate and Other segment.

These include the elimination of investment income between Retail Annuities and the Corporate and Other segments, as well as the elimination from fee income and investment income of investment fees paid by Jackson Financial and its subsidiaries to PPM, which were $ 27 million and $ 21 million for the three months ended March 31, 2026 and 2025, respectively .

These include the elimination of investment income between Retail Annuities and the Corporate and Other segments, as well as the elimination from fee income and investment income of investment fees paid by Jackson Financial and its subsidiaries to PPM, which were $ 28 million and $ 23 million for the three months ended June 30, 2026 and 2025, respectively, and $ 55 million and $ 44 million for the six months ended June 30, 2026 and 2025, respectively.

The following table summarizes the reconciling items from the non-GAAP measure of total operating revenues to the U.S.

GAAP measure of total revenues attributable to the Company (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Total operating revenues $ 2,005 $ 1,751 $ 3,889 $ 3,524

11 unchanged sentences

GAAP measure of total benefits and expenses attributable to the Company (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Total operating benefits and expenses $ 1,387 $ 1,345 $ 2,841 $ 2,676

8 unchanged sentences

GAAP measure of net income attributable to the Company (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Pretax adjusted operating earnings $ 618 $ 406 $ 1,048 $ 848

19 unchanged sentences

The following table summarizes total assets by segment (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Retail Annuities $ 320,443 $ 307,225

11 unchanged sentences

The partnership aims to expand Jackson’s spread-based product sales.

The transaction closed on February 11, 2026.

At the closing, subsidiaries and affiliates of Jackson Financial and TPG entered into non-exclusive investment management arrangements with a 10 -year initial term with automatic 1 -year renewals through year 15 (subject to various termination rights), with TPG providing Investment Grade Asset Based Finance and Direct Lending investment capabilities to complement the asset management capabilities of PPM America, Inc.

At the closing in February 2026, subsidiaries and affiliates of Jackson Financial and TPG entered into non-exclusive investment management arrangements with a 10-year initial term with automatic one-year renewals through year 15 (subject to various termination rights), with TPG providing Investment Grade Asset-Based Finance and Direct Lending investment capabilities to complement the asset management capabilities of PPM America, Inc.

("PPM"), a Jackson Financial subsidiary.

The arrangement contemplates certain target AUM levels over time and related investment management fees (including a baseline minimum fee payment), subject to exceptions, that the Company is committed to pay during the term of the agreements and any applicable wind-down period.

PPM will continue to manage the majority of Jackson’s general account and both Jackson and PPM will retain oversight of Jackson’s investment portfolio.

TPG acquired a $ 500 million equity stake in Jackson Financial.

PPM continues to manage the majority of Jackson’s general account and both Jackson and PPM retain oversight of Jackson’s investment portfolio.

TPG also acquired a $ 500 million equity stake in Jackson Financial.

See Note 19 - Equity of these Notes to Condensed Consolidated Financial Statements for more information regarding the shares issued to TPG.

Additionally, TPG issued to a wholly owned, indirect subsidiary of Jackson $ 150 million in TPG common shares, which was reported in equity securities, at fair value on the Condensed Consolidated Balance Sheets.

Under the terms of the transaction, TPG and Jackson have agreed to certain limitations on their ability to divest their respective ownership stakes over time.

Additionally, TPG issued to a wholly-owned, indirect subsidiary of Jackson Financial $ 150 million in TPG common shares, which was reported in equity securities, at fair value on the Condensed Consolidated Balance Sheets.

Under the terms of the transaction, TPG and Jackson Financial have agreed to certain limitations on their ability to divest their respective ownership stakes over time.

Debt Securities

The following table sets forth the composition of the fair value of debt securities at March 31, 2026, and December 31, 2025, classified by rating categories as assigned by a nationally recognized statistical rating organization (a “rating agency”), National Association of Insurance Commissioners (the “NAIC”) or, if not rated by such organizations, the Company’s investment advisors.

The following table sets forth the composition of the fair value of debt securities at June 30, 2026, and December 31, 2025, classified by rating categories as assigned by a nationally recognized statistical rating organization (a “rating agency”), National Association of Insurance Commissioners (the “NAIC”) or, if not rated by such organizations, the Company’s investment advisors.

The Company uses the second lowest rating by a rating agency when rating agencies' ratings are not equivalent and, for purposes of the table, if not otherwise rated by a rating agency, the NAIC rating of a security is converted to an equivalent rating agency rating.

At March 31, 2026 and December 31, 2025, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $ 839 million and $ 606 million, respectively.

At June 30, 2026 and December 31, 2025, the carrying value of investments rated by the Company’s consolidated investment advisor totaled $ 893 million and $ 606 million, respectively.

Percent of Total Debt

Securities Carrying Value

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Investment Rating

8 unchanged sentences

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

At March 31, 2026 and December 31, 2025, the total carrying value of debt securities in an unrealized loss position consisted of:

March 31, 2026 December 31, 2025

At June 30, 2026 and December 31, 2025, the total carrying value of debt securities in an unrealized loss position consisted of:

June 30, 2026 December 31, 2025

Investment grade securities 78 % 78 %

1 unchanged sentence

Not rated securities 21 % 21 %

Unrealized losses on debt securities that were below investment grade or not rated were approximately 18 % and 19 % of the aggregate gross unrealized losses on available-for-sale debt securities at March 31, 2026 and December 31, 2025, respectively.

Corporate securities in an unrealized loss position were diversified across industries.

As of March 31, 2026, the industries accounting for the largest percentage of unrealized losses included utility ( 19 % of corporate gross unrealized losses) and healthcare ( 12 %).

The largest unrealized loss related to a single corporate obligor was $ 58 million at March 31, 2026.

As of June 30, 2026, the industries accounting for the largest percentage of unrealized losses included utility ( 19 % of corporate gross unrealized losses) and healthcare ( 13 %).

The largest unrealized loss related to a single corporate obligor was $ 56 million at June 30, 2026.

As of December 31, 2025, the industries accounting for the largest percentage of unrealized losses included utility ( 18 % of corporate gross unrealized losses) and financial services ( 13 %).

The largest unrealized loss related to a single corporate obligor was $ 55 million at December 31, 2025.

At March 31, 2026 and December 31, 2025, the amortized cost, allowance for credit loss ("ACL"), gross unrealized gains and losses, and fair value of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions):

At June 30, 2026 and December 31, 2025, the amortized cost, allowance for credit loss ("ACL"), gross unrealized gains and losses, and fair value of debt securities, including trading securities and securities carried at fair value under the fair value option, were as follows (in millions):

Allowance Gross Gross

Amortized for Unrealized Unrealized Fair

March 31, 2026 Cost (1)

June 30, 2026 Cost (1)

Credit Loss Gains Losses Value

21 unchanged sentences

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

The amortized cost, ACL, gross unrealized gains and losses, and fair value of debt securities at March 31, 2026, by contractual maturity, are shown below (in millions).

The amortized cost, ACL, gross unrealized gains and losses, and fair value of debt securities at June 30, 2026, by contractual maturity, are shown below (in millions).

Actual maturities may differ from contractual maturities where securities can be called or prepaid with or without early redemption penalties.

12 unchanged sentences

(1) Amortized cost, apart from the carrying value for securities carried at fair value under the fair value option and trading securities.

As required by law in various states in which business is conducted, securities with a carrying value of $ 56 million and $ 57 million at March 31, 2026 and December 31, 2025, respectively, were on deposit with regulatory authorities.

As required by law in various states in which business is conducted, securities with a carrying value of $ 56 million and $ 57 million at June 30, 2026 and December 31, 2025, respectively, were on deposit with regulatory authorities.

Residential mortgage-backed securities (“RMBS”) include certain RMBS that are collateralized by residential mortgage loans and are neither expressly nor implicitly guaranteed by U.S.

3 unchanged sentences

Amortized for Unrealized Unrealized Fair

March 31, 2026 Cost (1)

June 30, 2026 Cost (1)

Credit Loss Gains Losses Value

14 unchanged sentences

The Company defines its exposure to non-agency RMBS as follows:

• Prime loan-backed securities that are collateralized by mortgage loans made to the highest rated borrowers;

• Alt-A loan-backed securities that are collateralized by mortgage loans made to borrowers who lack credit documentation or necessary requirements to obtain prime borrower rates;

• Subprime loan-backed securities that are collateralized by mortgage loans made to borrowers that have a FICO score of 660 or lower.

• Prime loan-backed securities are collateralized by mortgage loans made to the highest rated borrowers;

• Alt-A loan-backed securities are collateralized by mortgage loans made to borrowers who lack credit documentation or necessary requirements to obtain prime borrower rates;

• Subprime loan-backed securities are collateralized by mortgage loans made to borrowers with a FICO score of 660 or lower.

Unrealized Losses on Debt Securities

12 unchanged sentences

Accrued interest receivables that are determined to be uncollectible are written off with a corresponding reduction to net investment income.

Accrued interest written off was $ 1 million and nil for the three months ended March 31, 2026 and 2025, respectively.

Accrued interest written off was $ 2 million and $ 3 million for the three and six months ended June 30, 2026, and $ 1 million for the three and six months ended June 30, 2025.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

The following table summarizes the gross unrealized losses of debt securities, fair value, and number of securities, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position (dollars in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Less than 12 months Less than 12 months

35 unchanged sentences

(1) Certain securities contain multiple lots and fit the criteria of both aging groups.

Debt securities in an unrealized loss position as of March 31, 2026, did not require an impairment recognized in earnings as (i) the Company did not intend to sell these debt securities, (ii) it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis, and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss.

Debt securities in an unrealized loss position as of June 30, 2026, did not require an impairment recognized in earnings as (i) the Company did not intend to sell these debt securities, (ii) it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis, and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss.

Based upon this evaluation, the Company believes it has the ability to generate adequate amounts of cash from normal operations to meet cash requirements with a reasonable margin of safety without requiring the sale of these securities.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

As of March 31, 2026, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk-free rates since purchase.

As of June 30, 2026, unrealized losses associated with debt securities are primarily due to widening credit spreads or rising risk-free rates since purchase.

As described below, the Company performed analyses of the financial performance of the underlying issues in an unrealized loss position and believes that recovery of the entire amortized cost of each such security is expected.

23 unchanged sentences

The roll-forward of the allowance for credit loss for available-for-sale securities by sector is as follows (in millions):

Three Months Ended March 31, 2026 US

Three Months Ended June 30, 2026 US

securities Other government securities Public

1 unchanged sentence

asset-backed securities Total

Balance at April 1, 2026 $ — $ — $ — $ 6 $ 1 $ — $ 10 $ 17

Additions for which credit loss was not previously recorded — — — — — — — —

Changes for securities with previously recorded credit loss — — — ( 1 ) — — 8 7

Additions for purchases of PCD debt securities (1)

— — — — — — — —

Reductions from charge-offs — — — — — — — —

Reductions for securities disposed — — — — — — — —

Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — —

Balance at June 30, 2026 (2)

$ — $ — $ — $ 5 $ 1 $ — $ 18 $ 24

Three Months Ended June 30, 2025 US

securities Other government securities Public

utilities Corporate securities Residential mortgage-backed Commercial mortgage-backed Other

asset-backed securities Total

Balance at April 1, 2025 $ — $ — $ — $ 8 $ 6 $ — $ 26 $ 40

Additions for which credit loss was not previously recorded — — — — — — — —

Changes for securities with previously recorded credit loss — — — — — — 27 27

Additions for purchases of PCD debt securities (1)

— — — — — — — —

Reductions from charge-offs — — — — — — ( 53 ) ( 53 )

Reductions for securities disposed — — — — ( 2 ) — — ( 2 )

Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — —

Balance at June 30, 2025 (2)

$ — $ — $ — $ 8 $ 4 $ — $ — $ 12

Six Months Ended June 30, 2026 US

securities Other government securities Public

utilities Corporate securities Residential mortgage-backed Commercial mortgage-backed Other

asset-backed securities Total

Balance at January 1, 2026 $ — $ — $ — $ — $ 4 $ — $ 7 $ 11

6 unchanged sentences

Securities intended/required to be sold before recovery of amortized cost basis — — — — — — — —

Balance at March 31, 2026 (2)

Balance at June 30, 2026 (2)

$ — $ — $ — $ 5 $ 1 $ — $ 18 $ 24

Three Months Ended March 31, 2025 US

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

Six Months Ended June 30, 2025 US

securities Other government securities Public

9 unchanged sentences

Securities intended/required to be sold before recovery of amortized cost basis — — — — — ( 1 ) — ( 1 )

Balance at March 31, 2025 (2)

Balance at June 30, 2025 (2)

$ — $ — $ — $ 8 $ 4 $ — $ — $ 12

(1) Represents purchased credit-deteriorated ("PCD") fixed maturity available-for-sale securities.

(2) Accrued interest receivable on debt securities totaled $ 519 million and $ 448 million as of March 31, 2026 and 2025, respectively, and was excluded from the determination of credit losses for the three months ended March 31, 2026 and 2025.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

(2) Accrued interest receivable on debt securities totaled $ 564 million and $ 469 million as of June 30, 2026 and 2025, respectively, and was excluded from the determination of credit losses for the three and six months ended June 30, 2026 and 2025.

Net Investment Income

The sources of net investment income were as follows (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Debt securities (1)

$ 618 $ 415 $ 1,090 $ 846

Equity securities (2)

9 unchanged sentences

Net investment income $ 928 $ 718 $ 1,668 $ 1,473

(1) Includes changes in fair value gains (losses) on trading securities and includes $( 72 ) million and $( 10 ) million for the three months ended March 31, 2026 and 2025, respectively, related to the change in fair value for securities carried under the fair value option.

(1) Includes changes in fair value gains (losses) on trading securities and includes $ 26 million and $( 46 ) million for the three and six months ended June 30, 2026, respectively, and $( 64 ) million and $( 74 ) million for the three and six months ended June 30, 2025, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes changes in fair value of TPG common stock.

See discussion above on our Long-term Strategic Partnership with TPG.

(3) Includes expenses from consolidated variable interest entities, which includes changes in fair value of notes issued by those entities, of $( 16 ) million and $( 32 ) million for the three months ended March 31, 2026 and 2025, respectively.

Unrealized gains (losses) included in investment income that were recognized on equity securities held were $( 64 ) million and $( 2 ) million for the three months ended March 31, 2026 and 2025, respectively.

(3) Includes expenses from consolidated variable interest entities, which includes changes in fair value of notes issued by those entities, of $( 56 ) million and $( 72 ) million for the three and six months ended June 30, 2026, respectively, and $( 42 ) million and $( 74 ) million for the three and six months ended June 30, 2025, respectively.

Unrealized gains (losses) included in investment income that were recognized on equity securities held were $ 6 million and $ 4 million for the three months ended June 30, 2026 and 2025, respectively, and $( 58 ) million and $ 2 million for the six months ended June 30, 2026 and 2025, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

Net Gains (Losses) on Derivatives and Investments

The following table summarizes net gains (losses) on derivatives and investments (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Available-for-sale securities

14 unchanged sentences

("Athene") funds withheld coinsurance agreement (the “Athene Reinsurance Transaction”),

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

• changes in the related funds withheld payable, as all economic performance of the investments held in the segregated accounts inure to the benefit of the reinsurers under the respective reinsurance agreements, and

• amortization of the difference between book value and fair value of the investments as of the effective date of the reinsurance agreements.

The aggregate fair value of securities sold at a loss for the three months ended March 31, 2026 and 2025 was $ 288 million and $ 669 million, which was approximately 94 % and 95 % of book value, respectively.

Proceeds from sales of available-for-sale debt securities were $ 636 million and $ 934 million during the three months ended March 31, 2026 and 2025, respectively.

The aggregate fair value of securities sold at a loss for the three and six months ended June 30, 2026 was $ 935 million and $ 1.2 billion, which was approximately 94 % and 94 % of book value, respectively.

The aggregate fair value of securities sold at a loss for the three and six months ended June 30, 2025 was $ 589 million and $ 1.3 billion, which was approximately 95 % and 95 % of book value, respectively.

Proceeds from sales of available-for-sale debt securities were $ 1.2 billion and $ 1.8 billion during the three and six months ended June 30, 2026, respectively, and $ 849 million and $ 1.8 billion during the three and six months ended June 30, 2025, respectively.

Consolidated Variable Interest Entities ("VIEs")

The Company concluded that the following entities are VIEs and that the Company is the primary beneficiary as it has both the power to direct the most significant activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

In each case, the Company’s exposure to loss is limited to the capital invested plus, in the cases of the limited liability companies ("LLCs") and the Private Equity Funds, unfunded capital commitments.

In each case, the Company’s exposure to loss is limited to the capital invested plus unfunded capital commitments.

Creditors of the consolidated VIEs do not have recourse to the general credit of the Company:

• The Company funds affiliated LLCs to facilitate the issuance of collateralized loan obligations ("CLOs").

The Company's policy is to record the consolidation of VIEs on a one-month lag due to the timing of when information is available from the VIE.

• Private Equity Funds VII – IX and Strategic Opportunity Fund I are limited partnership structures that invest the ownership capital in portfolios of various other limited partnership structures.

These LLCs are consolidated on a one-month lag due to the timing of when information is available from the VIE.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

• Private Equity Funds VIII – IX and Strategic Opportunity Fund I are limited partnership structures that invest the ownership capital in portfolios of various other limited partnership structures.

Private Equity Fund IX was funded in August 2025 and Strategic Opportunity Fund I was funded in June 2025.

The consolidation of Private Equity Fund IX and Strategic Opportunity Fund I are on a one-quarter lag due to the timing of when information is available from the VIE.

• PPM Investment Grade Private Credit Fund is a private fund organized as a series of a Delaware LLC that invests primarily in fixed rate, privately issued, investment grade instruments.

The series was funded in January 2026.

Asset and liability information for the consolidated VIEs included on the Condensed Consolidated Balance Sheets are as follows (in millions):

March 31, 2026 December 31, 2025

This fund is consolidated on a one-month lag due to the timing of when information is available from the VIE.

• Panther Investments I, LP was funded in May 2026.

The Fund is a rated note feeder fund that utilizes a master fund limited partnership to invest primarily in secured loans to North American lower middle market companies.

This Fund is consolidated on a one-quarter lag due to the timing of when information is available from the VIE.

Asset and liability information for the consolidated VIEs included on the Condensed Consolidated Balance Sheets is as follows (in millions):

June 30, 2026 December 31, 2025

Debt securities, at fair value under fair value option $ 2,648 $ 2,698

9 unchanged sentences

Noncontrolling interests $ 512 $ 389

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

Unconsolidated VIEs

The Company has concluded the following entities are VIEs but does not consolidate them.

Based on analysis of the limited partnerships ("LPs"), LLCs and the mutual funds, the Company is not the primary beneficiary of the VIE because the Company lacks the power to direct the activities of the VIE that most significantly impact the VIE's performance or lacks the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities, or lacks both.

Based on analysis of the limited partnerships ("LPs"), LLCs and the mutual funds, the Company is not the primary beneficiary of each VIE because the Company lacks the power to direct the activities of the VIE that most significantly impact the VIE's performance or lacks the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entities, or lacks both.

• The carrying amounts of the Company’s investments in certain LPs and LLCs are recognized in other invested assets on the Condensed Consolidated Balance Sheets.

Unfunded capital commitments for these investments are detailed in Note 16 of these Notes to Condensed Consolidated Financial Statements.

The Company’s exposure to loss was limited to $ 2,784 million and $ 2,709 million as of March 31, 2026 and December 31, 2025, respectively, representing the aggregate capital invested and unfunded capital commitments related to the LPs and LLCs at those dates.

The Company’s exposure to loss was limited to $ 3,036 million and $ 2,709 million as of June 30, 2026 and December 31, 2025, respectively, representing the aggregate capital invested and unfunded capital commitments related to the LPs and LLCs at those dates.

The capital invested in an LP or LLC equals the original capital contributed, increased for additional capital contributed after the initial investment, and reduced for any returns of capital from the LP or LLC.

LPs and LLCs are carried at fair value.

• The Company's investments in certain mutual funds are recognized in equity securities on the Condensed Consolidated Balance Sheets and were $ 18 million and $ 21 million as of March 31, 2026 and December 31, 2025, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

• The Company's investments in certain mutual funds are recognized in equity securities on the Condensed Consolidated Balance Sheets and were $ 51 million and $ 21 million as of June 30, 2026 and December 31, 2025, respectively.

The Company’s maximum exposure to loss on these mutual funds is limited to the amortized cost for these investments.

8 unchanged sentences

The following table shows commercial mortgage loans, residential mortgage loans, and the respective accrued interest thereon (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Commercial mortgage loans (1)

5 unchanged sentences

(2) Net of an allowance for credit losses of $ 19 million and $ 16 million at each date, respectively.

At March 31, 2026, commercial mortgage loans were collateralized by properties located in 36 states, the District of Columbia, and Europe, while residential mortgage loans were collateralized by properties located in 49 states, the District of Columbia, Mexico, and Europe.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

At June 30, 2026, commercial mortgage loans were collateralized by properties located in 36 states, the District of Columbia, and Europe, while residential mortgage loans were collateralized by properties located in 48 states, the District of Columbia, Mexico, and Europe.

Evaluation for Credit Losses on Mortgage Loans

10 unchanged sentences

Credit loss estimates are pooled by property type and the Company does not include accrued interest in the determination of ACL.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

For individual loans or for types of loans for which the third-party model is deemed not suitable, the Company utilizes relevant current market data, industry data, and publicly available historical loss rates to calculate an estimate of the lifetime expected credit loss.

2 unchanged sentences

The following table provides the change in the allowance for credit losses in the Company’s mortgage loan portfolios (in millions):

Three Months Ended March 31, 2026 Apartment Hotel Office Retail Warehouse Other Residential Mortgage Total

Three Months Ended June 30, 2026 Apartment Hotel Office Retail Warehouse Other Residential Mortgage Total

Balance at April 1, 2026 $ 23 $ 4 $ 56 $ 30 $ 23 $ 1 $ 22 $ 159

Charge offs, net of recoveries — — ( 5 ) — — — — ( 5 )

Reductions for mortgages disposed — — — — — — — —

Additions from purchase of PCD mortgage loans — — — — — — — —

Provision (release) 27 11 ( 20 ) ( 4 ) 10 1 ( 3 ) 22

Balance at June 30, 2026 (1) (2)

$ 50 $ 15 $ 31 $ 26 $ 33 $ 2 $ 19 $ 176

Three Months Ended June 30, 2025 Apartment Hotel Office Retail Warehouse Other Residential Mortgage Total

Balance at April 1, 2025 $ 28 $ 7 $ 40 $ 19 $ 20 $ 2 $ 14 $ 130

Charge offs, net of recoveries — — — — — — — —

Reductions for mortgages disposed ( 1 ) — — ( 1 ) — — — ( 2 )

Additions from purchase of PCD mortgage loans — — — — — — — —

Provision (release) ( 9 ) 3 2 6 6 — 1 9

Balance at June 30, 2025 (1) (2)

$ 18 $ 10 $ 42 $ 24 $ 26 $ 2 $ 15 $ 137

Six Months Ended June 30, 2026 Apartment Hotel Office Retail Warehouse Other Residential Mortgage Total

Balance at January 1, 2026 $ 32 $ 11 $ 28 $ 17 $ 27 $ 2 $ 16 $ 133

3 unchanged sentences

Provision (release) 19 4 12 9 6 — 3 53

Balance at March 31, 2026 (1) (2)

Balance at June 30, 2026 (1) (2)

$ 50 $ 15 $ 31 $ 26 $ 33 $ 2 $ 19 $ 176

Three Months Ended March 31, 2025 Apartment Hotel Office Retail Warehouse Other Residential Mortgage Total

Six Months Ended June 30, 2025 Apartment Hotel Office Retail Warehouse Other Residential Mortgage Total

Balance at January 1, 2025 $ 23 $ 7 $ 44 $ 19 $ 20 $ 3 $ 5 $ 121

3 unchanged sentences

Provision (release) ( 4 ) 3 4 6 6 ( 1 ) 10 24

Balance at March 31, 2025 (1) (2)

Balance at June 30, 2026 (1) (2)

$ 18 $ 10 $ 42 $ 24 $ 26 $ 2 $ 15 $ 137

(1) Accrued interest receivable totaled $ 48 million and $ 42 million as of March 31, 2026 and 2025, respectively, and was excluded from the determination of credit losses.

(2) Accrued interest amounting to nil and nil was written off as of March 31, 2026 and 2025, respectively, relating to loans that were greater than 90 days delinquent or in the process of foreclosure.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

(1) Accrued interest receivable totaled $ 52 million and $ 43 million as of June 30, 2026 and 2025, respectively, and was excluded from the determination of credit losses.

(2) Accrued interest amounting to $ 1 million and $ 1 million was written off as of June 30, 2026 and 2025, respectively, relating to loans that were greater than 90 days delinquent or in the process of foreclosure.

The Company’s mortgage loans that are current and in good standing are accruing interest.

1 unchanged sentence

Delinquency status is determined from the date of the first missed contractual payment.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 4.

The following table provides information about our residential mortgage loans in process of foreclosure (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Recorded investment (1)

3 unchanged sentences

Investment income recognized — 1

(1) At March 31, 2026 and December 31, 2025, includes $ 4 million and $ 4 million, respectively, of loans in process of foreclosure, all of which are loans supported with insurance or other guarantees provided by various governmental programs.

(1) At June 30, 2026 and December 31, 2025, includes $ 3 million and $ 4 million, respectively, of loans in process of foreclosure, all of which are loans supported with insurance or other guarantees provided by various governmental programs.

The following tables provide information about the credit quality with vintage year and category of mortgage loans (dollars in millions):

March 31, 2026

June 30, 2026

2026 2025 2024 2023 2022 Prior Revolving

46 unchanged sentences

Accruing Loans (1)

March 31, 2026 Current 30-89 Days Past Due (2)

June 30, 2026 Current 30-89 Days Past Due (2)

90 Days or Greater Past Due (2)

34 unchanged sentences

(1) Amortized cost or fair value for loans carried at fair value under the fair value option.

(2) At March 31, 2026 and December 31, 2025, includes $ 15 million and $ 19 million, respectively, of loans 30-89 days past due and $ 21 million and $ 16 million, respectively, of loans 90 days or greater past due and supported with insurance or other guarantees provided by various governmental programs.

(2) At June 30, 2026 and December 31, 2025, includes $ 16 million and $ 19 million, respectively, of loans 30-89 days past due and $ 17 million and $ 16 million, respectively, of loans 90 days or greater past due and supported with insurance or other guarantees provided by various governmental programs.

The following table provides information about the mortgage loans modified during the periods indicated to borrowers experiencing financial difficulty (dollars in millions):

1 unchanged sentence

Cost Basis Percent of

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Commercial mortgage loans $ — — %

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Commercial mortgage loans $ — — %

As of March 31, 2026, the above modified loans had $ 8 million unfunded commitments.

Term Extension

Cost Basis Percent of

Six Months Ended June 30, 2026

Commercial mortgage loans $ 10 — %

Six Months Ended June 30, 2025

Commercial mortgage loans $ — — %

As of June 30, 2026, the above modified loans had $ 8 million of unfunded commitments.

The following table describes the financial effect of the modifications made to the loans noted above:

1 unchanged sentence

Financial Effect

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

Commercial mortgage loans Granted extension of term for 42 months and rate converted from variable to fixed.

4 unchanged sentences

Current 30-89 Days Past Due 90+ Days Past Due

March 31, 2026

June 30, 2026

Commercial mortgage loans $ — $ 10 $ —

March 31, 2025

June 30, 2025

Commercial mortgage loans $ — $ — $ —

As of March 31, 2026 and 2025, stressed mortgage loans for which the Company is dependent, or expects to be dependent, on the underlying property to satisfy repayment were $ 24 million and $ 29 million, respectively.

As of June 30, 2026 and 2025, stressed mortgage loans for which the Company is dependent, or expects to be dependent, on the underlying property to satisfy repayment were $ 19 million and $ 32 million, respectively.

Policy loans are loans the Company issues to contract holders that use the cash surrender value of their life insurance policy or annuity contract as collateral.

At March 31, 2026 and December 31, 2025, $ 3.6 billion and $ 3.5 billion of these loans were carried at fair value, which the Company believes is equal to unpaid principal balances, plus accrued investment income.

At both March 31, 2026 and December 31, 2025, the Company had $ 0.9 billion of policy loans not held as collateral for reinsurance, which were carried at the unpaid principal balances.

At June 30, 2026 and December 31, 2025, $ 3.6 billion and $ 3.5 billion of these loans were carried at fair value, which the Company believes is equal to unpaid principal balances, plus accrued investment income.

At both June 30, 2026 and December 31, 2025, the Company had $ 0.9 billion of policy loans not held as collateral for reinsurance, which were carried at the unpaid principal balances.

Other Invested Assets

1 unchanged sentence

• Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock, which is carried at cost and adjusted for any impairment.

At both March 31, 2026 and December 31, 2025, FHLBI capital stock had a carrying value of $ 119 million;

At June 30, 2026 and December 31, 2025, FHLBI capital stock had a carrying value of $ 87 million and $ 119 million, respectively;

• limited partnerships (“LPs”), which are carried at values determined by using the proportion of the Company’s investment in each fund (Net Asset Value (“NAV”) equivalent) as a practical expedient for fair value, and generally are recorded on a three-month lag, with changes in value included in net investment income.

At March 31, 2026 and December 31, 2025, investments in LPs had carrying values of $ 2.9 billion and $ 2.8 billion, respectively;

At June 30, 2026 and December 31, 2025, investments in LPs had carrying values of $ 3.1 billion and $ 2.8 billion, respectively;

• real estate, which is carried at the lower of depreciated cost or fair value and real estate occupied by the Company is carried at depreciated cost.

At March 31, 2026 and December 31, 2025, real estate totaling $ 231 million and $ 230 million, respectively, included foreclosed properties with a book value of $ 22 million and $ 20 million at March 31, 2026 and December 31, 2025, respectively.

At June 30, 2026 and December 31, 2025, real estate totaling $ 226 million and $ 230 million, respectively, included foreclosed properties with a book value of $ 19 million and $ 20 million at June 30, 2026 and December 31, 2025, respectively.

Securities Lending

The Company has entered into securities lending agreements with agent banks whereby blocks of securities are loaned to third parties, primarily major brokerage firms.

As of March 31, 2026 and December 31, 2025, the estimated fair value of loaned securities was $ 52 million and $ 34 million, respectively.

As of June 30, 2026 and December 31, 2025, the estimated fair value of loaned securities was $ 74 million and $ 34 million, respectively.

The agreements require a minimum of 102 % of the fair value of the loaned securities to be held as collateral, calculated daily.

To further minimize the credit risks related to these programs, the financial condition of counterparties is monitored on a regular basis.

At March 31, 2026 and December 31, 2025, cash collateral received in the amount of $ 54 million and $ 35 million, respectively, was invested by the agent banks and included in cash and cash equivalents of the Company.

At June 30, 2026 and December 31, 2025, cash collateral received in the amount of $ 77 million and $ 35 million, respectively, was invested by the agent banks and included in cash and cash equivalents of the Company.

A securities lending payable for the overnight and continuous loans is included in liabilities in the amount of cash collateral received.

5 unchanged sentences

These agreements are accounted for as financing transactions, with the assets and associated liabilities included in the Condensed Consolidated Balance Sheets.

At March 31, 2026 and December 31, 2025, the outstanding repurchase agreement balance was $ 0.5 billion and $ 1.0 billion, respectively, having maturities within 30 days, and was included within repurchase agreements and securities lending payable in the Condensed Consolidated Balance Sheets.

At June 30, 2026 and December 31, 2025, the outstanding repurchase agreement balance was $ 0.4 billion and $ 1.0 billion, respectively, having maturities within 30 days, and was included within repurchase agreements and securities lending payable in the Condensed Consolidated Balance Sheets.

These repurchase agreements were collateralized with U.S.

Treasury securities and corporate securities of $ 0.5 billion and $ 1.0 billion, respectively, at March 31, 2026 and December 31, 2025.

In the event of a decline in the fair value of the pledged collateral under these agreements, the Company may be required to transfer cash or additional securities as pledged collateral.

Interest expense totaled $ 2 million and $ 12 million for the three months ended March 31, 2026 and 2025, respectively, and is included within net investment income.

Treasury securities and corporate securities of $ 0.4 billion and $ 1.0 billion, respectively, at June 30, 2026 and December 31, 2025.

Interest expense totaled $ 1 million and $ 3 million for the three and six months ended June 30, 2026, respectively, and $ 16 million and $ 28 million for the three and six months ended June 30, 2025, respectively, and is included within net investment income.

Collateral Upgrade Transactions

7 unchanged sentences

These transactions are evergreen and require at least 150 -days' notice prior to termination.

At both March 31, 2026 and December 31, 2025, the fair value of the U.S.

At both June 30, 2026 and December 31, 2025, the fair value of the U.S.

treasuries received was $ 1.5 billion, collateralized with corporate securities with a fair value of $ 1.6 billion.

2 unchanged sentences

In the event of a decline in the fair value of the pledged collateral under these agreements, the Company may be required to transfer cash or additional securities as pledged collateral.

Gross interest income of $ 14 million and $ 16 million and gross interest expense of $ 16 million and $ 19 million for the three months ended March 31, 2026 and 2025, respectively, are included within net investment income.

Gross interest income of $ 14 million and $ 17 million and gross interest expense of $ 17 million and $ 19 million for the three months ended June 30, 2026 and 2025, respectively, and gross interest income of $ 28 million and $ 33 million and gross interest expense of $ 33 million and $ 38 million for the six months ended June 30, 2026 and 2025, respectively, are included within net investment income.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 5.

10 unchanged sentences

A summary of the aggregate contractual or notional amounts and fair values of the Company’s freestanding and embedded derivative instruments are as follows (in millions):

March 31, 2026

June 30, 2026

Assets Liabilities

Contractual/ Assets Liabilities Net

3 unchanged sentences

Cross-currency swaps $ 1,729 $ 137 $ 107 $ 30

Equity index call options 1,500 15 — 15

Equity index futures (2)

61 unchanged sentences

The following table reflects the results of the Company’s derivatives, including gains (losses) and change in fair value of freestanding derivative instruments and embedded derivatives (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Derivatives excluding funds withheld under reinsurance treaties and non-qualified voluntary deferred compensation plan

Cross-currency swaps $ ( 13 ) $ 58 $ 5 $ 85

Equity index call options ( 7 ) — ( 7 ) —

Equity index futures 1,241 ( 613 ) 808 ( 466 )

18 unchanged sentences

All the Company’s trade agreements for freestanding, over-the-counter derivatives contain credit downgrade provisions that allow a party to assign or terminate derivative transactions if the counterparty’s credit rating declines below an established limit.

At March 31, 2026 and December 31, 2025, the fair value of the Company’s net non-cleared, over-the-counter derivative assets by counterparty were $ 209 million and $ 151 million, respectively, and held collateral was $ 487 million and $ 130 million, respectively, related to these agreements.

At March 31, 2026 and December 31, 2025, the fair value of the Company’s net non-cleared, over-the-counter derivative liabilities by counterparty were $ 92 million and $ 237 million, respectively, and provided collateral was $ 119 million and $ 295 million, respectively, related to these agreements.

If all of the downgrade provisions had been triggered at March 31, 2026 and December 31, 2025, in aggregate, the Company would have had to disburse $ 278 million and nil , respectively, and would have been allowed to claim $ 27 million and $ 79 million, respectively.

The Company pledged collateral of $ 1,625 million and $ 1,403 million as of March 31, 2026 and December 31, 2025, respectively, for initial margin related to uncleared margin for over-the-counter derivatives and exchange-traded futures.

Variation margin on exchange traded futures is settled through the netting of cash paid/received for variation margin against the fair value of the trades.

At June 30, 2026 and December 31, 2025, the fair value of the Company’s net non-cleared, over-the-counter derivative assets by counterparty were $ 30 million and $ 151 million, respectively, and held collateral was $ 55 million and $ 130 million, respectively, related to these agreements.

At June 30, 2026 and December 31, 2025, the fair value of the Company’s net non-cleared, over-the-counter derivative liabilities by counterparty were $ 571 million and $ 237 million, respectively, and provided collateral was $ 631 million and $ 295 million, respectively, related to these agreements.

If all of the downgrade provisions had been triggered at June 30, 2026 and December 31, 2025, in aggregate, the Company would have had to disburse $ 25 million and nil , respectively, and would have been allowed to claim $ 59 million and $ 79 million, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 5.

Derivative Instruments

The Company pledged collateral of $ 2,083 million and $ 1,403 million as of June 30, 2026 and December 31, 2025, respectively, for initial margin related to uncleared margin for over-the-counter derivatives and exchange-traded futures.

Variation margin on exchange traded futures is settled through the netting of cash paid/received for variation margin against the fair value of the trades.

The Company purchases equity options for which option premium payments are deferred (deferred premium options).

The deferred premiums, along with interest incurred thereon, are payable at contract termination.

During three months ended March 31, 2026 and 2025, the Company deferred option premiums totaling $ 223 million and nil , respectively.

During the six months ended June 30, 2026 and 2025, the Company deferred option premiums totaling $ 365 million and $ 52 million, respectively.

The purchase of these options is a non-cash transaction.

5 unchanged sentences

The following tables present the gross and net information about the Company’s financial instruments subject to master netting arrangements (in millions):

March 31, 2026

June 30, 2026

Recognized Gross

47 unchanged sentences

The above tables exclude:

• net embedded derivative liabilities of $ 6,317 million and $ 6,906 million as of March 31, 2026 and December 31, 2025, respectively, as these derivatives are not subject to master netting arrangements;

• the funds withheld embedded derivative asset (liability) of $ 1,765 million and $ 1,752 million at March 31, 2026 and December 31, 2025, respectively.

• net embedded derivative liabilities of $ 9,245 million and $ 6,906 million as of June 30, 2026 and December 31, 2025, respectively, as these derivatives are not subject to master netting arrangements;

• the funds withheld embedded derivative asset (liability) of $ 1,651 million and $ 1,752 million at June 30, 2026 and December 31, 2025, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

2 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Value Carrying

20 unchanged sentences

14,090 14,090 14,960 14,960

Long-term debt 2,027 1,831 2,030 1,877

Debt 2,769 2,588 2,030 1,877

Securities lending payable (4)

3 unchanged sentences

400 400 1,001 1,001

FHLB advances (5)

Separate account liabilities 245,387 245,387 236,496 236,496

3 unchanged sentences

(4) Included as a component of repurchase agreements and securities lending payable on the Condensed Consolidated Balance Sheets.

(5) Included as a component of other liabilities on the Condensed Consolidated Balance Sheets.

The following is a discussion of the methodologies used to determine fair values of the financial instruments measured on a recurring basis reported in the following tables.

20 unchanged sentences

These prices are indicative of an exit price, but the assumptions used to establish the fair value may not be observable or corroborated by market observable information and, therefore, represent Level 3 inputs.

For those securities that were internally valued at March 31, 2026 and December 31, 2025, the pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the market discount rate for the security.

For those securities that were internally valued at June 30, 2026 and December 31, 2025, the pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the market discount rate for the security.

Furthermore, appropriate risk premiums for illiquidity and non-performance are incorporated in the discount rate.

12 unchanged sentences

Fair values for limited partnership interests, which are included in other invested assets, are generally determined using the proportion of the Company’s investment in the value of the net assets of each fund (“NAV equivalent”) as a practical expedient for fair value, and generally are recorded on a three-month lag.

No adjustments to these amounts were deemed necessary at March 31, 2026 and December 31, 2025.

No adjustments to these amounts were deemed necessary at June 30, 2026 and December 31, 2025.

As a result of using that practical expedient, limited partnership interests are not classified in the fair value hierarchy.

76 unchanged sentences

Fixed Index Annuities and RILA

Our FIA and RILA contracts may be issued with features that guarantee benefits that are payable upon death (GMDB) or upon depletion of funds (GMWB).

Our fixed index annuity ("FIA") and RILA contracts may be issued with features that guarantee benefits that are payable upon death (GMDB) or upon depletion of funds (GMWB).

These features are classified as MRBs and measured at fair value.

19 unchanged sentences

• Debt securities reflected on the Company’s Condensed Consolidated Balance Sheets as debt securities related to:

◦ certain consolidated investments totaling $ 2,650 million and $ 2,698 million at March 31, 2026 and December 31, 2025, respectively.

◦ certain debt securities the Company purchased during the third quarter of 2024, for purposes of mitigating components of exposure to changes in the value of certain market risk benefits.

◦ certain consolidated investments totaling $ 2,648 million and $ 2,698 million at June 30, 2026 and December 31, 2025, respectively.

◦ certain debt securities the Company began purchasing during the third quarter of 2024, for purposes of mitigating components of exposure to changes in the value of certain market risk benefits.

The Company elected the fair value option on these debt securities, with changes in fair value reflected in net income, to align with the corresponding changes in the value of the market risk benefits recognized through net income.

These debt securities totaled $ 695 million and $ 766 million at March 31, 2026 and December 31, 2025, respectively.

• Certain funds withheld assets, which are held as collateral for reinsurance, totaling $ 3,758 million and $ 3,867 million at March 31, 2026 and December 31, 2025, respectively, as discussed above, and include mortgage loans as discussed below.

These debt securities totaled $ 705 million and $ 766 million at June 30, 2026 and December 31, 2025, respectively.

• Certain funds withheld assets, which are held as collateral for reinsurance, totaling $ 4,393 million and $ 3,867 million at June 30, 2026 and December 31, 2025, respectively, as discussed above, and include mortgage loans as discussed below.

• Certain mortgage loans held under the funds withheld reinsurance agreement with Athene.

2 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Fair value $ 595 $ 324

Aggregate contractual principal 614 330

As of March 31, 2026, no loans in good standing for which the fair value option was elected were in non-accrual status, and no loans were more than 90 days past due and still accruing interest.

• Notes issued by consolidated VIEs totaling $ 2,543 million and $ 2,578 million at March 31, 2026 and December 31, 2025, respectively.

As of June 30, 2026, no loans in good standing for which the fair value option was elected were in non-accrual status, and no loans were more than 90 days past due and still accruing interest.

• Notes issued by consolidated VIEs totaling $ 2,474 million and $ 2,578 million at June 30, 2026 and December 31, 2025, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

3 unchanged sentences

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

March 31, 2026

June 30, 2026

Total Level 1 Level 2 Level 3

26 unchanged sentences

(1) Excludes $ 2,765 million of limited partnership investments measured at NAV equivalent.

(2) Includes the embedded derivative liabilities of $ 5,499 million related to RILA and $ 818 million liability of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.

(2) Includes the embedded derivative liabilities of $ 8,395 million related to RILA and $ 850 million liability related to fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.

(3) Includes the Athene embedded derivative asset of $ 1,651 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

30 unchanged sentences

(1) Excludes $ 2,586 million of limited partnership investments measured at NAV equivalent.

(2) Includes the embedded derivative liabilities of $ 6,043 million related to RILA and $ 863 million of fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.

(2) Includes the embedded derivative liabilities of $ 6,043 million related to RILA and $ 863 million related to fixed index annuities, both included in other contract holder funds on the Condensed Consolidated Balance Sheets.

(3) Includes the Athene embedded derivative asset of $ 1,752 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

4 unchanged sentences

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

March 31, 2026

June 30, 2026

Assets Total Internal External

36 unchanged sentences

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

As of March 31, 2026

As of June 30, 2026

Value Valuation Technique(s) Significant Unobservable Input(s) Assumption or Input Range Impact of Increase in Input on Fair Value

101 unchanged sentences

• Investments:

At March 31, 2026 and December 31, 2025, $ 114 million and $ 117 million, respectively, of debt securities, equity securities, and limited partnerships are fair valued using techniques incorporating unobservable inputs and are classified in Level 3 of the fair value hierarchy.

At June 30, 2026 and December 31, 2025, $ 63 million and $ 117 million, respectively, of debt securities, equity securities, and limited partnerships are fair valued using techniques incorporating unobservable inputs and are classified in Level 3 of the fair value hierarchy.

For these assets, their unobservable inputs and ranges of possible inputs do not materially affect their fair valuations and have been excluded from the quantitative information in the tables above.

17 unchanged sentences

Best estimate assumptions plus risk margins are used as applicable.

The tables below provide roll-forwards for the three months ended March 31, 2026 and 2025 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement.

The tables below (in millions) provide roll-forwards for the three and six months ended June 30, 2026 and 2025 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement.

Gains and losses in the tables below include changes in fair value due partly to observable and unobservable factors.

7 unchanged sentences

as of Net Other Issuances in and/or as of

January 1, Income Comprehensive and (out of) March 31,

Three Months Ended March 31, 2026 2026 (Loss) Income (Loss) Settlements Level 3 2026

April 1, Income Comprehensive and (out of) June 30,

Three Months Ended June 30, 2026 2026 (Loss) Income (Loss) Settlements Level 3 2026

Debt securities

12 unchanged sentences

as of Net Other Issuances in and/or as of

January 1, Income Comprehensive and (out of) March 31,

Three Months Ended March 31, 2025 2025 (Loss) Income (Loss) Settlements Level 3 2025

April 1, Income Comprehensive and (out of) June 30,

Three Months Ended June 30, 2025 2025 (Loss) Income (Loss) Settlements Level 3 2025

Debt securities

Corporate securities $ 300 $ 10 $ ( 1 ) $ 62 $ 3 $ 374

Other asset-backed securities 791 ( 52 ) 30 141 ( 58 ) 852

Equity securities 7 — — — — 7

Mortgage loans 451 3 — ( 61 ) — 393

Limited partnerships 203 2 — — — 205

Policy loans 3,492 81 — ( 33 ) — 3,540

Reinsurance recoverable on market risk benefits 126 ( 15 ) — — — 111

Market risk benefit assets 7,326 1,395 — — — 8,721

Funds withheld payable under reinsurance treaties ( 1,560 ) ( 211 ) — ( 13 ) — ( 1,784 )

Market risk benefit liabilities ( 4,125 ) 823 ( 267 ) — — ( 3,569 )

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

Fair Value Measurements

Total Realized/Unrealized Gains (Losses) Included in

Fair Value Sales, Transfers Fair Value

as of Net Other Issuances in and/or as of

January 1, Income Comprehensive and (out of) June 30,

Six Months Ended June 30, 2026 2026 (Loss) Income (Loss) Settlements Level 3 2026

Debt securities

Corporate securities $ 346 $ 3 $ 2 $ ( 184 ) $ ( 33 ) $ 134

Other asset-backed securities 426 ( 17 ) ( 7 ) ( 54 ) ( 65 ) 283

Equity securities 7 4 — — — 11

Mortgage loans 324 ( 1 ) — 272 — 595

Limited partnerships 250 20 — 15 29 314

Policy loans 3,537 73 — 7 — 3,617

Reinsurance recoverable on market risk benefits 118 ( 9 ) — — — 109

Market risk benefit assets 7,867 179 — — — 8,046

Funds withheld payable under reinsurance treaties ( 1,971 ) ( 175 ) — ( 9 ) — ( 2,155 )

Market risk benefit liabilities ( 3,754 ) 213 270 ( 97 ) — ( 3,368 )

Total Realized/Unrealized Gains (Losses) Included in

Fair Value Sales, Transfers Fair Value

as of Net Other Issuances in and/or as of

January 1, Income Comprehensive and (out of) June 30,

Six Months Ended June 30, 2025 2025 (Loss) Income (Loss) Settlements Level 3 2025

Debt securities

Public utilities $ 44 $ — $ — $ ( 44 ) $ — $ —

11 unchanged sentences

Fair Value Measurements

The components of the amounts included in purchases, sales, issuances and settlements for the three months ended March 31, 2026 and 2025 shown above are as follows (in millions):

Three Months Ended March 31, 2026 Purchases Sales Issuances Settlements Total

The components of the amounts included in purchases, sales, issuances and settlements for the three and six months ended June 30, 2026 and 2025 shown above are as follows (in millions):

Three Months Ended June 30, 2026 Purchases Sales Issuances Settlements Total

Debt securities

8 unchanged sentences

Total $ — $ — $ ( 241 ) $ 210 $ ( 31 )

Three Months Ended March 31, 2025 Purchases Sales Issuances Settlements Total

Three Months Ended June 30, 2025 Purchases Sales Issuances Settlements Total

Debt securities

Corporate securities $ 79 $ ( 17 ) $ — $ — $ 62

Other asset-backed securities 176 ( 35 ) — — 141

Mortgage loans 18 ( 79 ) — — ( 61 )

Policy loans — — 11 ( 44 ) ( 33 )

Total $ 273 $ ( 131 ) $ 11 $ ( 44 ) $ 109

Funds withheld payable under reinsurance treaties — — ( 262 ) 249 ( 13 )

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

Fair Value Measurements

Six Months Ended June 30, 2026 Purchases Sales Issuances Settlements Total

Debt securities

Corporate securities $ 11 $ ( 195 ) $ — $ — $ ( 184 )

Other asset-backed securities 76 ( 130 ) — — ( 54 )

Mortgage loans 460 ( 188 ) — — 272

Limited partnerships 15 — — — 15

Policy loans — — 89 ( 82 ) 7

Total $ 562 $ ( 513 ) $ 89 $ ( 82 ) $ 56

Funds withheld payable under reinsurance treaties $ — $ — $ ( 371 ) $ 362 $ ( 9 )

Market risk benefit liabilities — — ( 97 ) — ( 97 )

Total $ — $ — $ ( 468 ) $ 362 $ ( 106 )

Six Months Ended June 30, 2025 Purchases Sales Issuances Settlements Total

Debt securities

Public utilities $ — $ ( 44 ) $ — $ — $ ( 44 )

6 unchanged sentences

Funds withheld payable under reinsurance treaties $ — $ — $ ( 378 ) $ 351 $ ( 27 )

For the three months ended March 31, 2026, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 91 million, transfers from Level 2 to Level 3 were $ 17 million, and transfers from Level 3 to NAV equivalent were nil .

For the three months ended March 31, 2025, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 58 million, transfers from Level 2 to Level 3 were $ 174 million, and transfers from Level 3 to NAV equivalent were nil .

For the three and six months ended June 30, 2026, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 70 million and $ 105 million, transfers from Level 2 to Level 3 were $ 65 million and $ 7 million, and transfers from NAV to Level 3 were $ 20 million and $ 29 million.

For the three and six months ended June 30, 2025, transfers from Level 3 to Level 2 of the fair value hierarchy were $ 46 million and $ 104 million, transfers from Level 2 to Level 3 were $( 9 ) million and $ 165 million, and transfers from NAV to Level 3 were nil and nil .

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30,

Net Income Included in OCI Included in

11 unchanged sentences

Market risk benefit liabilities 720 ( 63 ) 823 ( 267 )

Six Months Ended June 30,

Net Income Included in OCI Included in

Net Income Included in OCI

Debt securities

Corporate securities $ 3 $ ( 4 ) $ 7 $ 2

Other asset-backed securities ( 17 ) ( 7 ) ( 51 ) 27

Equity securities 3 — — —

Mortgage loans ( 2 ) — 7 —

Limited partnerships 20 — 9 —

Policy loans 73 — 71 —

Reinsurance recoverable on market risk benefits ( 9 ) — ( 10 ) —

Market risk benefit assets 179 — ( 178 ) —

Funds withheld payable under reinsurance treaties ( 175 ) — ( 404 ) —

Market risk benefit liabilities 213 270 145 60

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

Fair Value Measurements

Fair Value of Financial Instruments Carried at Other Than Fair Value

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

March 31, 2026

June 30, 2026

Value Total Level 1 Level 2 Level 3

7 unchanged sentences

Funds withheld payable under reinsurance treaties 11,935 11,935 — — 11,935

Long-term debt 2,027 1,831 — 1,831 —

Debt 2,769 2,588 — 2,588 —

Securities lending payable (3)

3 unchanged sentences

245,387 245,387 — 245,387 —

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

Fair Value Measurements

December 31, 2025

8 unchanged sentences

Funds withheld payable under reinsurance treaties 12,989 12,989 — — 12,989

Long-term debt 2,030 1,877 — 1,877 —

Debt 2,030 1,877 — 1,877 —

Securities lending payable (3)

8 unchanged sentences

(5) The values of separate account liabilities are set equal to the values of separate account assets.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

Fair Value Measurements

The following is a discussion of the methodologies used to determine fair values of the financial instruments that are not reported at fair value as shown in the table above:

17 unchanged sentences

Fair values for guaranteed investment contracts and funding agreements are based on the present value of future cash flows discounted at current market interest rates.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6.

Fair Value Measurements

• Funds Withheld Payable Under Reinsurance Treaties:

2 unchanged sentences

The funds withheld payable is classified as Level 3 within the fair value hierarchy.

Fair values for the Company’s surplus notes and long-term debt are generally determined by prices obtained from independent broker dealers or discounted cash flow models.

Fair values for the Company’s surplus notes and debt are generally determined by prices obtained from independent broker dealers or discounted cash flow models.

Such prices are derived from market observable inputs and are classified as Level 2.

8 unchanged sentences

The values of separate account liabilities are set equal to the values of separate account assets, which are comprised of investments in mutual funds that transact regularly, but do not trade in active markets as they are not publicly available and are categorized as Level 2.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 7.

Deferred Acquisition Costs

Certain costs that are directly related to the successful acquisition of new or renewal insurance business are capitalized as deferred acquisition costs ("DAC") in the period in which they are incurred.

Deferred Acquisition Costs

Certain costs directly related to the successful acquisition of new or renewal insurance business are capitalized as deferred acquisition costs ("DAC") in the period in which they are incurred.

These costs primarily pertain to commissions and certain costs associated with policy issuance and underwriting.

12 unchanged sentences

Substantially unchanged contracts are treated as a continuation of the replaced contract, with no change to the unamortized DAC at the time of the replacement.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 7.

Deferred Acquisition Costs

The following table presents the roll-forward of the DAC (in millions).

1 unchanged sentence

The amortization pattern is revised on a prospective basis at the beginning of the period based on the period’s actual experience.

Three Months Ended March 31, Year Ended December 31,

Six Months Ended June 30, Year Ended December 31,

Variable Annuities

12 unchanged sentences

Total balance, end of period $ 11,655 $ 11,660

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

The Company, through its subsidiary insurance companies, assumes and cedes reinsurance from and to other insurance companies as a means of managing capital and risk exposures.

8 unchanged sentences

The profit and loss with respect to obligations ceded to Athene are included in periodic net settlements pursuant to the coinsurance agreement.

To further support its obligations under the coinsurance agreement, Athene procured $ 1.1 billion in letters of credit for Jackson’s benefit and established a trust account for Jackson’s benefit, which had a book value of approximately $ 57 million at March 31, 2026.

Swiss Re Reinsurance

2 unchanged sentences

As a result of the reinsurance agreements with SRZ, Jackson withholds certain assets, primarily in the form of policy loans and debt securities, as collateral for the reinsurance recoverable.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

The Company has also acquired certain blocks of business that are closed to new business and wholly ceded to non-affiliates.

9 unchanged sentences

Reinsurance contracts may be executed subsequent to the direct contract issue dates, and market interest rates may have changed between the date that the underlying insurance contracts were issued and the date the reinsurance contract is recognized in the financial statements, resulting in the underlying discount rate differing between the direct and reinsured business.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

The Company regularly monitors the financial strength ratings of its reinsurers.

At both March 31, 2026 and December 31, 2025, the Company had an allowance for credit losses (“ACL”) of $ 30 million, respectively, on its reinsurance recoverables, which are reported net of ACL on the Condensed Consolidated Balance Sheets.

At June 30, 2026 and December 31, 2025, the Company had an ACL of $ 31 million and $ 30 million, respectively, on its reinsurance recoverables, which are reported net of ACL on the Condensed Consolidated Balance Sheets.

The ACL considers the credit quality of the reinsurer and is generally determined based on probability of default and loss given default assumptions, after considering any applicable collateral arrangements.

11 unchanged sentences

The attributed fee is locked-in at inception of the contract.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

Components of the Company’s reinsurance recoverable excluding MRBs were as follows (in millions):

March 31, December 31,

June 30, December 31,

Life $ 5,052 $ 5,164

6 unchanged sentences

Components of the Company’s reinsurance recoverable on market risk benefits were as follows (in millions):

March 31, December 31,

June 30, December 31,

Variable annuity $ 29 $ 41

1 unchanged sentence

Total $ 109 $ 118

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

Reinsurance and Funds Withheld Payable Under Reinsurance Treaties

14 unchanged sentences

The fair value of the funds withheld payable is equal to the fair value of the assets held as collateral.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

The following assets and liabilities were held in support of reserves associated with the Company’s funds withheld reinsurance agreements and were reported in the respective financial statement line items on the Condensed Consolidated Balance Sheets (in millions):

March 31, December 31,

June 30, December 31,

Debt securities, available-for-sale $ 6,870 $ 7,947

15 unchanged sentences

(1) Certain assets are reported at amortized cost while the fair value of those assets is reported in the embedded derivative in the funds withheld liability.

(2) Includes funds withheld embedded derivative asset (liability) of $ 1,765 million and $ 1,752 million at March 31, 2026 and December 31, 2025, respectively.

(2) Includes funds withheld embedded derivative asset (liability) of $ 1,651 million and $ 1,752 million at June 30, 2026 and December 31, 2025, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

The sources of income related to funds withheld under reinsurance treaties reported in net investment income in the Condensed Consolidated Income Statements were as follows (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Debt securities (1)

$ 82 $ 94 $ 169 $ 194

Equity securities — 1 ( 1 ) 1

7 unchanged sentences

Total net investment income on funds withheld reinsurance treaties $ 201 $ 227 $ 400 $ 454

(1) Includes nil and $ 1 million for the three months ended March 31, 2026 and 2025, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes $ 2 million and $ 4 million for the three months ended March 31, 2026 and 2025, respectively, related to the change in fair value for mortgage loans carried under the fair value option.

(1) Includes $ — million and $ — million for the three and six months ended June 30, 2026, respectively, and nil and $ 1 million for the three and six months ended June 30, 2025, respectively, related to the change in fair value for securities carried under the fair value option.

(2) Includes $( 3 ) million and $( 1 ) million for the three and six months ended June 30, 2026, respectively, and $ 3 million and $ 7 million for the three and six months ended June 30, 2025, respectively, related to the change in fair value for mortgage loans carried under the fair value option.

(3) Includes management fees.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 8.

The gains and losses on funds withheld reinsurance treaties as a component of net gains (losses) on derivatives and investments in the Condensed Consolidated Income Statements were as follows (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Available-for-sale securities

3 unchanged sentences

Credit loss expense on mortgage loans ( 2 ) 1 ( 7 ) ( 3 )

Other ( 14 ) 15 ( 6 ) 22

Net gains (losses) on non-derivative investments ( 69 ) ( 31 ) ( 92 ) ( 74 )

3 unchanged sentences

Total net gains (losses) on derivatives and investments $ ( 297 ) $ ( 327 ) $ ( 456 ) $ ( 715 )

(1) Includes the Athene embedded derivative gain (loss) of $ 14 million and $( 201 ) million for the three months ended March 31, 2026 and 2025, respectively.

(1) Includes the Athene embedded derivative gain (loss) of $( 115 ) million and $( 101 ) million for the three and six months ended June 30, 2026, respectively, and $( 130 ) million and $( 331 ) million for the three and six months ended June 30, 2025, respectively.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9.

Reserves for Future Policy Benefits and Claims Payable

Reserves for Future Policy Benefits

6 unchanged sentences

Updates to assumptions are applied on a retrospective basis, and the change in the reserve for future policy benefits resulting from updates to assumptions is reported separately in the Condensed Consolidated Income Statements within the (gain) loss from updating future policy benefits cash flow assumptions, net.

Each reporting period the reserve for future policy benefits is updated to reflect actual experience to date.

The reserve for future policy benefits is updated each reporting period to reflect actual experience to date.

The Company establishes cohorts, which are groupings used to measure reserves for future policy benefits.

5 unchanged sentences

The difference between the reserve calculated using the current discount rate and the reserve calculated using the locked-in discount rate is recorded in OCI.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9.

Reserves for Future Policy Benefits and Claims Payable

For limited-payment insurance contracts, premiums are paid over a period shorter than the period over which benefits are provided.

4 unchanged sentences

These assumptions are similarly subject to the annual review process discussed above.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9.

Reserves for Future Policy Benefits and Claims Payable

Additional Liabilities – Universal Life-type

16 unchanged sentences

The following table summarizes the Company’s reserves for future policy benefits and claims payable balances (in millions):

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9.

Reserves for Future Policy Benefits and Claims Payable

March 31, December 31,

June 30, December 31,

Reserves for future policy benefits

7 unchanged sentences

Reserves for future policy benefits and claims payable $ 10,634 $ 10,896

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9.

Reserves for Future Policy Benefits and Claims Payable

The following tables present the roll-forward of components of reserves for future policy benefits (in millions):

Present Value of Expected Net Premiums

Three Months Ended March 31, Year Ended December 31,

Six Months Ended June 30, Year Ended December 31,

Payout Closed Block Closed Block Payout Closed Block Closed Block

12 unchanged sentences

Balance, end of period $ — $ 937 $ — $ — $ 998 $ —

For the year ended December 31, 2025, the effect of actual variances from expected experience of $ 33 million was mainly attributed to slightly lower actual premiums versus expected premiums related to our closed block products, which are mostly reinsured, resulting in an immaterial net impact to the reserve balance.

The effect of actual variances from expected experience of $ 11 million and $ 33 million for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively, was mainly attributed to slightly lower actual premiums versus expected premiums related to our closed block products, which are mostly reinsured, resulting in an immaterial net impact to the reserve balance.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 9.

1 unchanged sentence

Present Value of Expected Future Policy Benefits

Three Months Ended March 31, Year Ended December 31,

Six Months Ended June 30, Year Ended December 31,

Payout Closed Block Closed Block Payout Closed Block Closed Block

2 unchanged sentences

Beginning of period cumulative effect of changes in discount rate assumptions 58 671 157 100 806 255

Beginning balance at original discount rate (including DPL of $ 110 , nil and $ 546 in March 31, 2026, and $ 91 , nil and $ 588 in December 31, 2025 for payout annuities, closed block life and closed block annuity, respectively)

Beginning balance at original discount rate (including DPL of $ 110 , nil and $ 546 in June 30, 2026, and $ 91 , nil and $ 588 in December 31, 2025 for payout annuities, closed block life and closed block annuity, respectively)

1,227 5,249 3,804 1,195 5,231 4,092

5 unchanged sentences

Benefits payments ( 83 ) ( 298 ) ( 221 ) ( 150 ) ( 524 ) ( 455 )

Ending balance of original discount rate (including DPL of $ 106 , nil and $ 534 in March 31, 2026, and $ 110 , nil and $ 546 in December 31, 2025 for payout annuities, closed block life and closed block annuity, respectively)

Ending balance of original discount rate (including DPL of $ 105 , nil and $ 523 in June 30, 2026, and $ 110 , nil and $ 546 in December 31, 2025 for payout annuities, closed block life and closed block annuity, respectively)

1,241 5,049 3,665 1,227 5,249 3,804

8 unchanged sentences

Annuities Life Annuity

March 31, 2026

June 30, 2026

Weighted average duration (years) 6.2 6.7 6.4

9 unchanged sentences

The discounted premiums are calculated using the current discount rate, while the undiscounted cash flows represent the gross cash flows before any discounting is applied:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Undiscounted Discounted Undiscounted Discounted

10 unchanged sentences

Gross Premiums Interest Expense

Three Months Ended March 31, 2026 Year Ended December 31, 2025 Three Months Ended March 31, 2026 Year Ended December 31, 2025

Six Months Ended June 30, 2026 Year Ended December 31, 2025 Six Months Ended June 30, 2026 Year Ended December 31, 2025

Payout Annuities $ 23 $ 67 $ 24 $ 47

3 unchanged sentences

The following table presents the weighted average interest rate for the reserves for future policy benefits at the cohort level for the locked-in discount rate (interest accretion rate), and current discount rate, weighted by the cohort's benefit reserve amount:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Payout Annuities

10 unchanged sentences

The following table presents a roll-forward of Closed Block Life additional liabilities for annuitization, death and other insurance benefits (in millions):

Three Months Ended March 31, 2026 Year Ended December 31, 2025

Six Months Ended June 30, 2026 Year Ended December 31, 2025

Balance, beginning of period $ 1,195 $ 1,184

10 unchanged sentences

The weighted average duration represents average cohort-level duration weighted by the benefit reserves amount:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Weighted average duration (years) 8.6 8.7

1 unchanged sentence

Assessments Interest Expense

Three Months Ended March 31, 2026 Year Ended December 31, 2025 Three Months Ended March 31, 2026 Year Ended December 31, 2025

Six Months Ended June 30, 2026 Year Ended December 31, 2025 Six Months Ended June 30, 2026 Year Ended December 31, 2025

Additional liability for annuitization, death and other insurance benefits $ ( 56 ) $ ( 94 ) $ 29 $ 58

The following table presents the weighted average current discount rate of Closed Block Life additional liabilities for annuitization, death and other insurance benefits, applied at the cohort level weighted by reserve benefit amount:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Weighted average current discount rate 5.00 % 5.00 %

28 unchanged sentences

Jackson has established a funding agreement-backed note (“FABN”) program, pursuant to which a special purpose statutory business trust may issue medium-term notes and deposit the proceeds with Jackson pursuant to a funding agreement issued by Jackson to the trust.

As of March 31, 2026, there was remaining authority to issue up to $ 4.1 billion of medium-term notes under the program.

The carrying values of the FABN funding agreements at March 31, 2026 and December 31, 2025 totaled $ 7.5 billion and $ 8.0 billion, respectively.

The JNL board approved during its May meeting a $ 15.0 billion Global Debt Issuance program under which capacity will renew as notes mature (which differs from the way we had previously administered the program, where capacity did not renew as notes matured).

The carrying values of the FABN funding agreements at June 30, 2026 and December 31, 2025 totaled $ 7.6 billion and $ 8.0 billion, respectively.

Liabilities for foreign currency denominated FABN funding agreements are adjusted to reflect the effects of foreign currency translation gains and losses using exchange rates as of the reporting date.

4 unchanged sentences

The current maximum aggregate principal amount permitted to be outstanding at any one time under the program is $ 3.0 billion.

As of March 31, 2026, the Company had $ 1.3 billion outstanding under the program.

As of June 30, 2026, the Company had $ 1.1 billion outstanding under the program.

• FHLB funding agreements:

1 unchanged sentence

Advances are in the form of funding agreements issued to, and short-term and long-term borrowings from, FHLBI.

At both March 31, 2026 and December 31, 2025, the Company held $ 119 million of FHLBI capital stock, respectively, supporting $ 1.9 billion in FHLB funding agreements and short-term and long-term borrowings at both March 31, 2026 and December 31, 2025.

At both March 31, 2026 and December 31, 2025, the FHLB funding agreements and short-term and long-term borrowings were collateralized by mortgage-related securities and commercial mortgage loans with a carrying value of $ 2.8 billion.

At June 30, 2026 and December 31, 2025, the Company held $ 87 million and $ 119 million of FHLBI capital stock, respectively, supporting $ 1.9 billion in FHLB funding agreements and short-term and long-term borrowings at both June 30, 2026 and December 31, 2025.

At June 30, 2026 and December 31, 2025, the FHLB funding agreements and short-term and long-term borrowings were collateralized by mortgage-related securities and commercial mortgage loans with a carrying value of $ 2.9 billion and $ 2.8 billion, respectively.

The following table presents the liabilities for other contract holder funds (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Variable Annuity $ 6,065 $ 6,351

21 unchanged sentences

Policy charges and other ( 23 ) 2 ( 68 ) ( 107 ) — ( 252 ) — ( 448 )

Balance as of March 31, 2026 $ 6,193 $ 21,394 $ 9,300 $ 8,255 $ 840 $ 10,381 $ 1,035 $ 57,398

Balance as of June 30, 2026 $ 6,065 $ 26,149 $ 9,221 $ 8,549 $ 826 $ 10,281 $ 1,015 $ 62,106

Fixed Closed Closed

13 unchanged sentences

Annuity RILA Annuity Annuities Annuity Life Annuity

March 31, 2026

June 30, 2026

Weighted-average crediting rate (1)

17 unchanged sentences

Other Contract Holder Funds

At March 31, 2026 and December 31, 2025, excluding reinsurance business, approximately 92 % and 93 %, respectively, of the Company’s annuity account values correspond to crediting rates that are at the minimum guaranteed interest rates.

At March 31, 2026 and December 31, 2025, excluding reinsurance business, approximately 82 % and 82 %, respectively, of the Company’s closed block life account values correspond to crediting rates that are at the minimum guaranteed interest rates.

At June 30, 2026 and December 31, 2025, excluding reinsurance business, approximately 91 % and 93 %, respectively, of the Company’s annuity account values correspond to crediting rates that are at the minimum guaranteed interest rates.

At June 30, 2026 and December 31, 2025, excluding reinsurance business, approximately 82 % and 82 %, respectively, of the Company’s closed block life account values correspond to crediting rates that are at the minimum guaranteed interest rates.

The following table presents contract holder account balances invested in fixed account funds by range of guaranteed minimum crediting rates and the related range of the difference between rates being credited to other contract holder funds and the respective guaranteed minimums (in millions):

March 31, 2026

June 30, 2026

At Guaranteed 1 Basis Point- 50

103 unchanged sentences

The separate account assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as summary total separate account assets with an equivalent summary total reported for separate account liabilities.

At March 31, 2026 and December 31, 2025, the assets and liabilities associated with variable life and annuity contracts were $ 223 billion and $ 236 billion, respectively.

At June 30, 2026 and December 31, 2025, the assets and liabilities associated with variable life and annuity contracts were $ 245 billion and $ 236 billion, respectively.

Investment risks associated with market value changes are borne by the contract holders, except to the extent of minimum guarantees made by the Company.

2 unchanged sentences

The following table presents the roll-forward of the separate account balance for variable annuities (in millions):

Three Months Ended March 31, 2026 Year Ended December 31, 2025

Six Months Ended June 30, 2026 Year Ended December 31, 2025

Balance as of beginning of period $ 236,406 $ 228,851

10 unchanged sentences

The following table presents the reconciliation of the separate account balance in the Condensed Consolidated Balance Sheets (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Variable Annuities $ 245,289 $ 236,406

3 unchanged sentences

Separate Account Assets and Liabilities

Included in the separate account balance of Other Product Lines above are separate account assets related to a Jackson-issued group variable annuity contract designed for use in connection with and issued to the Company’s Defined Contribution Retirement Plan ("the Plan").

During 2025, the Plan withdrew all assets held under this variable annuity contract and transferred them to other investment options under the Plan.

At both March 31, 2026 and December 31, 2025, separate account assets and separate account liabilities related to this variable annuity contract are nil .

The following table presents aggregate fair value of assets, by major investment asset category, supporting separate accounts (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Variable Annuities By Fund Type

25 unchanged sentences

Additionally, when an annuitization occurs (for annuitization benefits) or upon extinguishment of the account balance (for withdrawal benefits), the balance related to the MRB is derecognized and the amount deducted (after derecognition of any related amount included in accumulated other comprehensive income) is used in the calculation of the liability for future policy benefits for the resulting payout annuity.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 12.

Market Risk Benefits

Variable Annuities

2 unchanged sentences

The Company discontinued offering the GMIB in 2009.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 12.

Market Risk Benefits

Variable annuity guaranteed benefit features classified as MRBs, which have explicit fees, are measured using the attributed fee method.

16 unchanged sentences

The following table presents the reconciliation of the market risk benefits balance in the Condensed Consolidated Balance Sheets (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Variable Other Variable Other

6 unchanged sentences

The following table presents the roll-forward of the net MRB (assets) liabilities for variable annuities (dollars in millions):

Three Months Ended March 31, 2026 Year Ended December 31, 2025

Six Months Ended June 30, 2026 Year Ended December 31, 2025

Net MRB balance, beginning of period $ ( 4,265 ) $ ( 5,176 )

21 unchanged sentences

The significant assumptions used in the MRB fair value calculations are discussed in Note 6 - Fair Value Measurements of these Notes to Condensed Consolidated Financial Statements.

Long-Term Debt

Liabilities for the Company’s debt are primarily carried at an amount equal to the principal balance net of any unamortized original issuance discount or premium.

Original issuance discount or premium and any debt issue costs, if applicable, are recognized as a component of interest expense over the period the debt is expected to be outstanding.

The aggregate carrying value of long-term debt was as follows (in millions):

March 31, December 31,

Long-Term Debt

The aggregate carrying value of debt was as follows (in millions):

June 30, December 31,

5.170 % Senior Notes due 2027

2 unchanged sentences

6.150 % Senior Notes due 2037

4.000 % Senior Notes due 2051

Surplus notes due 2027

FHLBI bank loans due 2034 & 2035 43 47

Total long-term debt $ 2,027 $ 2,030

Total debt $ 2,769 $ 2,030

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 13.

Long-Term Debt

The following table presents the contractual maturities of the Company's long-term debt as of March 31, 2026 (in millions):

The following table presents the contractual maturities of the Company's debt as of June 30, 2026 (in millions):

Calendar Year

2027 2028 2029 2030 2031 and thereafter Total

Long-term debt $ 649 $ — $ — $ — $ 1,378 $ 2,027

Debt $ 649 $ — $ — $ — $ 2,120 $ 2,769

On June 15, 2026, JFI issued $ 750 million aggregate principal amount of 6.150 % Senior Notes due January 15, 2037 (the “2037 Notes”).

The 2037 Notes are unsecured.

The net proceeds of the 2037 Notes are expected to be used for general corporate purposes, which may include, among other things, repaying or redeeming at or before maturity, JFI's $ 400 million aggregate principal amount 5.170 % Senior Notes due June 8, 2027 and/or, at maturity, Jackson National Life’s $ 250 million surplus notes due March 15, 2027.

Facility Agreement for Senior Notes Issuance

In March 2026, the Company entered into:

In March 2026, JFI entered into:

• a 10-year facility agreement with a Delaware trust in connection with that trust’s sale of $ 500 million of pre-capitalized trust securities;

8 unchanged sentences

The issuance right under a facility agreement will be exercised automatically in full upon the Company’s failure to make certain payments to the applicable trust or upon certain bankruptcy events involving the Company.

The Company is also required to exercise this issuance right if its consolidated stockholders’ equity, calculated in accordance with U.S.

The Company is also required to exercise this issuance right if its consolidated shareholders’ equity, calculated in accordance with U.S.

GAAP but excluding accumulated other comprehensive income and equity of non-controlling interests, falls below $ 2.8 billion, subject to adjustment from time to time in certain cases, and upon certain other events described in the applicable facility agreement.

7 unchanged sentences

The facility fees and expense reimbursements are recorded in operating costs and other expenses.

At March 31, 2026, the Company had not issued any senior notes under either facility agreement.

The Company incurred $ 7 million of origination costs, which were capitalized and reported in other assets and will be amortized over the terms of the respective facility agreements.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 13.

Long-Term Debt

At June 30, 2026, the Company had not issued any senior notes under either facility agreement.

The Company incurred $ 8 million of origination costs, which were capitalized and reported in other assets and will be amortized over the terms of the respective facility agreements.

Revolving Credit Facility

The Company has a revolving credit facility (the "Revolving Credit Facility") with a syndicate of banks and Bank of America, N.A., as Administrative Agent.

The Revolving Credit Facility provides for borrowings for working capital and other general corporate purposes under aggregate commitments of $ 1.0 billion, with a sub-limit of $ 500 million available for letters of credit.

The Revolving Credit Facility further provides for the ability to request, subject to customary terms and conditions, an increase in commitments thereunder by up to an additional $ 500 million.

The credit agreement for the Revolving Credit Facility contains financial maintenance covenants, including a minimum adjusted consolidated net worth test of no less than 70 % of our adjusted consolidated net worth as of September 30, 2022 (plus (to the extent positive) or minus (to the extent negative) 70 % of the impact on such adjusted consolidated net worth resulting from the application of the one-time transition adjustment for the LDTI accounting change for insurance contracts, and plus 50 % of the aggregate amount of any increase in adjusted consolidated net worth resulting from equity issuances by the Company and its consolidated subsidiaries after September 30, 2022), and a maximum consolidated indebtedness to total capitalization ratio test not to exceed 35 %.

Commitments under the Revolving Credit Facility terminate on February 24, 2028.

On June 30, 2026, JFI entered into $ 1.25 billion revolving credit facility with a syndicate of banks and Wells Fargo Bank, National Association, as Administrative Agent (the "2026 Revolving Credit Facility").

The 2026 Revolving Credit Facility replaced a prior $ 1.0 billion revolving credit facility that was scheduled to terminate in February 2028.

The 2026 Revolving Credit Facility provides for borrowings for working capital and other general corporate purposes, with a sub-limit of $ 500 million available for letters of credit.

The 2026 Revolving Credit Facility further provides the Company the options for the ability to request, subject to customary terms and conditions, an increase in commitments thereunder by up to an additional $ 500 million and an extension of the term of the commitments by up to two years .

The 2026 Revolving Credit Facility contains financial maintenance covenants, including a minimum adjusted consolidated net worth (the total equity, determined in accordance with GAAP, of JFI and its Consolidated Subsidiaries shown on the consolidated balance sheets) test of no less than 65 % of our adjusted consolidated net worth as of March 31, 2026, plus 50 % of the aggregate amount of any increase in adjusted consolidated net worth resulting from equity issuances by the Company and its consolidated subsidiaries after March 31, 2026, and a maximum consolidated indebtedness to total capitalization ratio test not to exceed 35 %.

Commitments under the 2026 Revolving Credit Facility terminate on June 30, 2031, unless extended.

Line of Credit Agreement

6 unchanged sentences

The Company, through its subsidiary, Jackson, entered into an advance program with the FHLBI in which interest rates were either fixed or variable based on the FHLBI cost of funds or market rates.

No advances were outstanding at March 31, 2026 and December 31, 2025.

Interest expense on such advances was nil and $ 4 million for the three months ended March 31, 2026 and 2025, respectively.

No advances were outstanding at June 30, 2026 and December 31, 2025.

Interest expense on such advances was nil and $ 1 million for the three months ended June 30, 2026 and 2025, respectively, and nil and $ 6 million for the six months ended June 30, 2026 and 2025, respectively.

See Note 10 - Other Contract Holder Funds of these Notes to Condensed Consolidated Financial Statements for the carrying value of securities pledged as collateral for our FHLB obligations .

2 unchanged sentences

In these cases, the actual tax expense or benefit is reported in the same period as the related item.

Certain tax effects are also not reflected in the estimated annual ETR, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions and are recorded in the period in which the change occurs.

Certain tax effects are also not reflected in the estimated annual ETR, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions, which are recorded in the period in which the change occurs.

The estimated annual ETR is revised, as necessary, at the end of successive interim reporting periods.

The Company's effective income tax rate was ( 4.9 )% for the three months ended March 31, 2026 compared with ( 5.9 )% for the same period in 2025, respectively.

The ETR, excluding significant unusual or infrequently occurring items, differs from the statutory rate of 21% primarily due to the dividends received deduction and utilization of foreign tax credits.

The ETR differs for the three months ended March 31, 2026 from the full year-ended December 31, 2025 ETR of 117.0 % due to the relationship of taxable income to consolidated pre-tax income (loss), valuation allowance, the variance of the impact of tax adjustments related to prior year returns and the benefit of IRS refund interest on carryback claims and amended returns both recognized in 2025.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 15.

For the three months ended March 31, 2026 and 2025, the Company recorded nil for the provision of the corporate alternative minimum tax ("CAMT") with an offsetting increase to the deferred tax asset for the credit carryover resulting in no impact to total tax expense.

The Company's effective income tax rate was 0.8 % and 9.8 % for the three and six months ended June 30, 2026 compared with 1.8 % and 2.9 % for the same period in 2025, respectively.

The ETR, excluding significant, unusual or infrequently occurring items, differs from the statutory rate of 21% primarily due to the dividends received deduction and utilization of foreign tax credits.

The change in the ETR for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 was due to the relationship of taxable income to consolidated pre-tax income (loss).

The ETR differs for the six months ended June 30, 2026 from the full year-ended December 31, 2025 ETR of 117 % due to the relationship of taxable income to consolidated pre-tax income (loss), valuation allowance, the variance of the impact of tax adjustments related to prior year returns and the benefit of IRS refund interest on carryback claims and amended returns both recognized in 2025.

The determination of the estimated 2026 CAMT liability considered carryover impacts from prior tax years and consideration of the applicability of the proposed regulations and additional guidance issued by the Internal Revenue Service.

Treasury Department is expected to issue additional guidance in 2026 or later that may materially change the estimated provision of the CAMT.

Treasury Department is expected to issue additional guidance in 2026 or later which may materially change the estimated provision of the CAMT.

The Company is required to evaluate the recoverability of its deferred tax assets and establish a valuation allowance, if necessary, to reduce its deferred tax asset to an amount that is more likely than not to be realizable.

7 unchanged sentences

The Company has adopted an accounting policy to analyze the ability to recover the CAMT credit carryover deferred tax asset separately from the deferred tax assets generated under the regular tax system.

For the three months ended March 31, 2026, changes in market conditions and interest rates impacted the unrealized tax gains and losses in the available-for-sale securities portfolio resulting in deferred tax assets related to net unrealized tax capital losses for the life insurance group.

For the six months ended June 30, 2026, changes in market conditions and interest rates impacted the unrealized tax gains and losses in the available-for-sale securities portfolio resulting in deferred tax assets related to net unrealized tax capital losses for the life insurance group.

The deferred tax asset relates to the unrealized losses for which the carryforward period has not yet begun, and as such, when assessing its recoverability, we consider our ability and intent to hold the underlying securities to recovery, our capital loss carryback capacity, along with reversing capital deferred tax liabilities.

As of March 31, 2026, based on all available evidence, we concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses and the charitable contributions carryover that are not more likely than not to be realized.

For the three months ended March 31, 2026, the Company recorded a increase of $ 125 million to the valuation allowance associated with the unrealized tax losses in the Company’s available-for-sale securities portfolio, and recorded an increase of $ 1 million for the charitable contributions carryover.

The $ 126 million increase for the three months ended March 31, 2026 to the valuation allowance consists of $ 126 million tax expense recorded to other comprehensive income.

At March 31, 2026 and December 31, 2025, the Company has recorded a total valuation allowance for $ 612 million and $ 486 million, respectively, associated with the unrealized tax losses in the Life Companies' available-for-sale securities portfolio and the charitable contributions carryover where it is not more likely than not that the full tax benefit of the losses will be realized.

As of June 30, 2026, based on all available evidence, we concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses and the charitable contributions carryover that are not more likely than not to be realized.

For the three and six months ended June 30, 2026, the Company recorded a decrease of $ 20 million and increase of $ 107 million, respectively, to the valuation allowance associated with the unrealized tax losses in the Company’s available-for-sale securities portfolio and for the charitable contributions carryover.

The $ 20 million decrease for the three months ended June 30, 2026 to the valuation allowance consists of $ 22 million tax benefit recorded to other comprehensive income and $ 2 million tax expense recorded in the income tax expense.

The $ 107 million increase for the six months ended June 30, 2026 to the valuation allowance consists of $ 105 million tax expense recorded to other comprehensive income and $ 2 million tax expense record in the income tax expense.

At June 30, 2026 and December 31, 2025, the Company has recorded a total valuation allowance for $ 593 million and $ 486 million, respectively, associated with the unrealized tax losses in the Life Companies' available-for-sale securities portfolio and the charitable contributions carryover where it is not more likely than not that the full tax benefit of the losses will be realized.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 16.

Commitments and Contingencies

The Company and its subsidiaries are involved in litigation arising in the ordinary course of business.

2 unchanged sentences

The Company accrues for legal contingencies once the contingency is deemed to be probable and reasonably estimable.

At March 31, 2026, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $ 676 million.

At March 31, 2026, unfunded commitments related to fixed-rate mortgage loans and other debt securities totaled $ 794 million.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 17.

Operating Costs and Other Expenses

At June 30, 2026, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $ 846 million.

At June 30, 2026, unfunded commitments related to fixed-rate mortgage loans and other debt securities totaled $ 1,986 million.

Operating Costs and Other Expenses

The following table summarizes the Company’s operating costs and other expenses (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Asset-based commission expenses $ 298 $ 273 $ 593 $ 557

2 unchanged sentences

General and administrative expenses (1)

265 274 564 533

Deferral of acquisition costs ( 302 ) ( 185 ) ( 557 ) ( 344 )

3 unchanged sentences

The following table represents changes in the balance of accumulated other comprehensive income ("AOCI"), net of income tax, related to unrealized investment gains (losses) (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Balance, beginning of period (1)

2 unchanged sentences

Change in current discount rate - reserve for future policy benefits (2)

( 14 ) ( 31 ) 59 ( 106 )

Change in non-performance risk on market risk benefits ( 63 ) ( 267 ) 270 60

6 unchanged sentences

$ ( 2,625 ) $ ( 2,623 ) $ ( 2,625 ) $ ( 2,623 )

(1) Includes $( 1,319 ) million and $( 1,269 ) million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of March 31, 2026 and December 31, 2025, respectively.

(1) Includes $( 1,238 ) million and $( 1,269 ) million related to the investments held within the funds withheld account related to the Athene Reinsurance Transaction as of June 30, 2026 and December 31, 2025, respectively.

(2) Represents the impact of changes in the discount rate used in the remeasurement of our direct reserves for future policy benefits and claims payable, net of the remeasurement of ceded reserves for future policy benefits and claims payable.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 18.

Accumulated Other Comprehensive Income (Loss)

The following table represents amounts reclassified out of AOCI (in millions):

2 unchanged sentences

Consolidated Income Statements

Three Months Ended March 31,

Three Months Ended June 30,

Net unrealized investment gain (loss):

4 unchanged sentences

Reclassifications, net of income taxes $ 6 $ ( 10 )

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 19.

AOCI Components Amounts

Reclassified from AOCI Affected Line Item in the Condensed

Consolidated Income Statements

Six Months Ended June 30,

Net unrealized investment gain (loss):

Net realized gain (loss) on investments $ 31 $ 45 Net gains (losses) on derivatives and investments

Other impaired securities ( 31 ) ( 48 ) Net gains (losses) on derivatives and investments

Net unrealized gain (loss), before income taxes — ( 3 )

Income tax expense (benefit) — —

Reclassifications, net of income taxes $ — $ ( 3 )

Preferred Stock

8 unchanged sentences

Similar restrictions would apply in respect of any preferred stock ranking on parity with, or junior to, the Series A Preferred Stock, if any such preferred stock were to be issued by the Company.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 19.

We may, at our option, redeem the shares of Series A Preferred Stock (a) in whole but not in part at any time prior to March 30, 2028, (i) within 90 days after the occurrence of a “rating agency event” at a redemption price equal to $ 25,500 per share (equivalent to $ 25.50 per Depositary Share), plus an amount equal to any accrued but unpaid dividends to, but excluding, the redemption date, or (ii) within 90 days after the occurrence of a “regulatory capital event,” at a redemption price equal to $ 25,000 per share (equivalent to $ 25 per Depositary Share), plus an amount equal to any accrued but unpaid dividends to, but excluding, the redemption date, or (b) in whole or in part, from time to time, on or after March 30, 2028, at a redemption price equal to $ 25,000 per share (equivalent to $ 25 per Depositary Share), plus an amount equal to any accrued but unpaid dividends to, but excluding, the redemption date.

7 unchanged sentences

03/31/2026 February 16, 2026 March 16, 2026 March 30, 2026 $ 500 $ 0.50

06/30/2026 May 1, 2026 June 11, 2026 June 30, 2026 $ 500 $ 0.50

Quarter Ended

03/31/2025 February 17, 2025 March 11, 2025 March 31, 2025 $ 500 $ 0.50

At March 31, 2026 and December 31, 2025, the Company was authorized to issue up to 1 billion shares of common stock with a par value of $ 0.01 per share.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 19.

06/30/2025 May 2, 2025 June 12, 2025 June 30, 2025 $ 500 $ 0.50

At June 30, 2026 and December 31, 2025, the Company was authorized to issue up to 1 billion shares of common stock with a par value of $ 0.01 per share.

Shares Issued to TPG

On February 11, 2026, Jackson Financial and TPG Inc.

("TPG") completed the transaction announced on January 6, 2026, resulting in TPG acquiring 4,715,554 shares of Jackson Financial common stock for $ 500 million.

In February 2026, Jackson Financial and TPG Inc.

("TPG") completed the transaction announced in January 2026, resulting in TPG acquiring 4,715,554 shares of Jackson Financial common stock for $ 500 million.

As a result, Jackson Financial re-issued treasury shares having an aggregate cost of $ 178 million and recognized a corresponding gain on re-issuance of treasury shares of $ 322 million, which was recorded to additional paid-in capital.

1 unchanged sentence

See Note 25 - Subsequent Events of the Notes to Consolidated Financial Statements in the Company’s 2025 Annual Report for further discussion on this transaction.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 19.

Share Repurchase Program

On September 18, 2025, our Board of Directors authorized an increase of $ 1 billion in our existing authorization to repurchase shares of our outstanding common stock as part of the Company's share repurchase program.

As of April 28, 2026, the Company had remaining authorization to apply up to $ 753 million to the purchase of its common shares.

As of July 27, 2026, the Company had remaining authorization to apply up to $ 526 million to the purchase of its common shares.

The Company expects to repurchase common shares from time to time in the open market or in privately negotiated transactions.

3 unchanged sentences

There can be no assurance that we will continue share repurchases or approve any further increase to our current, or approve any new, stock repurchase program, or any assurance to the amount of any repurchases that may be made pursuant to such programs.

Through March 31, 2026, we have incurred $ 10 million of excise tax in connection with share repurchases that exceeded stock issuances.

Through June 30, 2026, we have incurred $ 10 million of excise tax in connection with share repurchases that exceeded stock issuances.

The excise tax incurred was recognized as part of the cost basis of the treasury stock acquired and not reported as income tax expense.

8 unchanged sentences

2026 (January 1- March 31) 1,714,620 192 111.87

2026 (April 1- April 28) 527,648 57 108.04

2026 (April 1- June 30) 2,086,601 227 108.67

2026 (July 1- July 27) 486,601 57 117.11

Total 2026 4,287,822 $ 476 $ 110.91

5 unchanged sentences

Common stock issued to TPG — 4,715,554 4,715,554

Shares at March 31, 2026 94,488,315 ( 24,217,563 ) 70,270,752

Shares at June 30, 2026 94,488,315 ( 26,303,029 ) 68,185,286

(1) Represents net shares issued from treasury stock pursuant to the Company’s share-based compensation programs.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 19.

Dividends to Shareholders

1 unchanged sentence

Therefore, there can be no assurance that we will pay any cash dividends to holders of our stock or as to the amount of any such cash dividend.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 19.

The following table presents declaration date, record date, payment date and dividends paid per share of JFI’s common stock:

2 unchanged sentences

03/31/2026 February 16, 2026 March 16, 2026 March 26, 2026 $ 0.90

06/30/2026 May 1, 2026 June 11, 2026 June 25, 2026 $ 0.90

Quarter Ended

03/31/2025 February 17, 2025 March 11, 2025 March 20, 2025 $ 0.80

06/30/2025 May 2, 2025 June 12, 2025 June 26, 2025 $ 0.80

Earnings Per Share

4 unchanged sentences

The following table sets forth the calculation of earnings per common share:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

(in millions, except share and per share data)

7 unchanged sentences

Weighted average shares of common stock outstanding - diluted 70,292,020 71,938,152 70,178,386 72,823,439

69,743,841 73,469,317

Earnings per share—common stock

1 unchanged sentence

Diluted $ 9.16 $ 2.34 $ 2.98 $ 1.83

(1) If we reported a net loss attributable to Jackson Financial Inc., all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts.

The shares excluded from the diluted EPS calculation were 317,447 and 247,765 shares for the three months ended March 31, 2026 and 2025.

Item 1 | Notes to Condensed Consolidated Financial Statements (Unaudited) | 21.

Subsequent Events

The Company has evaluated subsequent events through the date these Condensed Consolidated Financial Statements were issued.

Dividends Declared to Shareholders

On May 1, 2026, our Board of Directors approved a cash dividend on JFI's common stock of $ 0.90 per share for the second quarter 2026, payable on June 25, 2026, to common shareholders of record on June 11, 2026.

On July 31, 2026, our Board of Directors approved a cash dividend on JFI's common stock of $ 0.90 per share for the third quarter 2026, payable on September 24, 2026, to common shareholders of record on September 15, 2026.

The Company also announced the declaration of a cash dividend of $ 0.50 per depositary share, each representing a 1/1,000th interest in a share of Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A.

The dividend will be payable on June 30, 2026, to depositary shareholders of record at the close of business on June 11, 2026.

The dividend will be payable on September 30, 2026, to depositary shareholders of record at the close of business on September 15, 2026.

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What changed 10-Q

Item 1. Financial Statements